F Gadoon AR 2020 A

dreams
worth
weaving
Annual Report 2020
Gadoon Textile Mills Limited
7-A, Muhammad Ali Society T 021 3520 5479 - 80

Abdul Aziz Haji Hashim Tabba Street F 021 3438 2436
Karachi 75350 Pakistan W gadoontextile.com
table of
contents
04
Plans and Decisions 35 Diversity 69 Six Years at a Glance 96 Stakeholder’s Engagement Policy 137 Statement of Profit or Loss 160
Changes in Objectives Related Parties 69 Graphical Presentation of Investor Roadshows/Corporate Statement of
and Strategies 35 Details of Board Meetings Statement of Financial Briefing Program 137 Comprehensive Income 161
Position and Profit or Loss 97 Statement of Cash Flows 162
138
Outside Pakistan 70
36
Conflict of Interest 70 Financial Ratios 98 Statement of Changes In Equity 163
Organizational Overview and Investors’ Grievance Policy 71 DuPont Analysis 105 Notes to the Financial
External Environment Free Cash Flow 106 Statements 164
Safety of Records 71
Economic Value Added 107 Pattern of Shareholding 204
IT Governance 72
Company Information 06 Horizontal Analysis 108 Notice of 33rd Annual
Review by the Board of the
Gadoon at a Glance 07 Vertical Analysis 112 General Meeting 206
Risk and Business Continuity and Summary of Cash Flow 116 Sustainability and Corporate Glossary 213
Business Model 08
Opportunities Disaster Recovery Plan 73 Statement of Cash Flows – Social Responsibility Form of Proxy 215
Geographical Spread 10
Whistle Blowing Policy 74 Direct Method 118 Form of Proxy (Urdu Version) 217
Our Vision, Mission, Culture Highlights of Aspects
Risk and Opportunity Report 38 Human Resource Excellence 75 Quarterly Performance Analysis 119 Directors’ Report (Urdu Version) 227
and Core Values 12 of Sustainability 140
Risk Management Policy 42 Social and Environmental Segmental View of
Code of Business Conduct Business Performance 120 Highlights of Corporate
Materiality Determination 43 Responsibility Policy 79
and Ethical Principles 14 Share Price Sensitivity Analysis 121 Social Responsibility 142
Capital Structure and Beneficial Ownership/Group
Group Profile 15 History of Major Events 122 Certifications Acquired for
Payment of Debts 44 Shareholding 80
Organizational Chart 22 Calendar of Notable Events 124 Environmental Sustainability 144
Review Report 81 Corporate Affiliations 145
46
Executive Management 23 Major Capital Expenditure 125
Statement of Compliance 82
146
Position within the Value Chain 24 Dividend Declaration 125
Role of Chairman and CEO 84
Significant Factors Affecting Details of Taxes, Duties,
Shares held by Sponsors/
the External Environment and and Levies 125
Directors/Executives 84
126
Organization’s Response 26
Board Committees 85
Effect of Seasonality
Report of Audit Committee 87
on Business 28 Governance
Attendance in Annual Corporate Reporting
Significant Changes from
Directors’ Profile 48 General Meeting 88
Prior Years 28
Chairman’s Review 56 Chairman’s Significant Statement of Unreserved Compliance
Composition of Local vs. of International Financial
Directors’ Report 58 Commitments and any
Imported Material/Sensitivity Outlook Reporting Standards (IFRSs) 148
CEO’s Message 66 changes thereto 89
Analysis 28 Integrated Reporting 149
Decisions Taken by the Board Pandemic Recovery 89 Forward-Looking Statement 128
Awards and Achievements 29 Disclosures Beyond BCR 150
and Delegated to Management 68 SWOT Analysis 130
30 90 132 152
Annual Evaluation of the
Board’s Performance 68
Orientation Courses and
Directors’ Training Program 68
Policy for Remuneration
Strategy and to Directors 68 Performance and Position
Security Clearance of
Stakeholder’s Engagement Financial Statements
Resource Allocation
Foreign Directors 69 Analysis of Financial and Relation with Stakeholders 135 Independent Auditor's Report
Strategic Objectives and Plans 32 Governance Practice Exceeding non-Financial Performance 92 Statement of Value Addition to the Members 154
Liquidity Strategy 35 Legal Requirement 69 Key Performance Indicators 93 and its Distribution 136 Statement of Financial Position 158
dreams
worth
loving
Organizational Overview
and External Environment
loving
the dream
of a
lifetime
company gadoon
information at a glance
Board of Directors Head Office Our History Our Products
Mr. Muhammad Yunus Tabba (Chairman) 7-A, Muhammad Ali Society, Abdul Aziz Haji Hashim In the late ‘80s, the Government invited the corporate The Company offers a diverse product portfolio
Mr. Muhammad Sohail Tabba (Chief Executive Officer) Tabba Street, Karachi 75350. sector of Pakistan to set up industrial units in the mentioned as follows:
Mr. Muhammad Ali Tabba Phone: 021-35205479-80 Gadoon Amazai area of District Swabi, Khyber
Mr. Jawed Yunus Tabba Fax: 021-34382436 Pakhtunkhwa, to eradicate prevalent poppy cultivation Yarns
Ms. Zulekha Tabba Maskatiya and provide an alternative source of employment. • 100% Grey Cotton Ring Spun Yarn
Mr. Saleem Zamindar (Independent Director)
Liaison Office • Compact Yarn
Syed’s Tower, Third Floor, Opposite Custom House,
Mr. Zafar Masud (Independent Director) The Yunus Brothers Group (YBG), considering this • Core Spun Yarn
Jamrud Road, Peshawar.
corporate social responsibility, participated towards this • Fancy Yarn
Audit Committee Phone: 091-5701496
noble cause, collaborating with the Government and laid • Man-Made/Cellulose Yarn
Mr. Saleem Zamindar (Chairman) Fax: 091-5702029
the foundations of Gadoon Textile Mills Limited (GTML) in • Melange/Heather Grey Yarn
Mr. Zafar Masud E-mail: secretary@gadoontextile.com
1988. The Company continued its operations, despite • Multi Count Yarn
Mr. Muhammad Ali Tabba
Factory Locations the unilateral withdrawal of incentive, offered by the • Multi Slub Yarn
Mr. Jawed Yunus Tabba Government for setting up industrial units, in 1991. • Murata Jet Spun Yarn
• 200-201, Gadoon Amazai Industrial Estate,
Distt. Swabi, Khyber Pakhtunkhwa. • Murata Vortex Spun Yarn
HR and Remuneration Committee
• 57 km on Super Highway, near Karachi. The aim to achieve its goals led to further expansion and • Open-End Yarn
Mr. Saleem Zamindar (Chairman)
growth, as an additional production facility was set up in • Poly/Cotton Yarn
Mr. Jawed Yunus Tabba Bankers Karachi, followed by a merger with Fazal Textile Mills • Siro Yarn
Ms. Zulekha Tabba Maskatiya Allied Bank Limited Limited (FTML). The timeless effort made GTML “one of • Slub Core Spun Yarn
Askari Bank Limited
Budget Committee Bank Alfalah Limited (Islamic Banking)
the largest spinning unit of Pakistan.” • Slub Yarn
Mr. Zafar Masud (Chairman) • TFO Yarn
Bank AL Habib Limited
Mr. Muhammad Ali Tabba Our Business • Zero Twist Yarn
Bank Islami Pakistan Limited
Mr. Muhammad Sohail Tabba GTML primarily engaged in the textile industry of
Dubai Islamic Bank Pakistan Limited
Mr. Jawed Yunus Tabba Pakistan operates in the B2B segment. Involved in the Knitted Fabric
Habib Bank Limited
fiber spinning and knitting sector markedly, its • Grey and Dyed Fabric
Executive Director Finance and Habib Metropolitan Bank Limited
production facilities have the capacity of spinning and • Knitted Fitted Sheet/Comforter
Company Secretary Industrial and Commercial Bank of China Limited
processing all categories of cotton and manmade fiber,
MCB Bank Limited
Mr. Abdul Sattar Abdullah including knitting home textiles. Our Brands
Meezan Bank Limited
Koyal and Peach are our two yarn brands having a
Chief Financial Officer National Bank of Pakistan
The innovative and quality products and ethical and significant prominence in the market.
Mr. Muhammad Imran Moten Soneri Bank Limited
professional standards have helped maintain a
Standard Chartered Bank Pakistan Limited
customer’s portfolio, comprising some of the industry’s
Chief Internal Auditor The Bank of Khyber
greatest names at home and abroad. These connections
Mr. Haji Muhammad Mundia The Bank of Punjab
have been strengthening the fabric for the previous
United Bank Limited
Auditors thirty-two years.
Deloitte Yousuf Adil E-Communication
Chartered Accountants Website: www.gadoontextile.com In addition to the textile sector, the Company also
A Member of Deloitte Touche Tohmatsu Facebook: www.facebook.com/Gadoontextile operates in the dairy segment where the prime business
LinkedIn: https://www.linkedin.com/company/ is the production and sale of milk. The dairy segment
Registered Office gadoontextilemillslimited started commercial production on June 30, 2019, with a
200-201, Gadoon Amazai Industrial Estate, current herd size of over 850 animals.
Distt. Swabi, Khyber Pakhtunkhwa. Share Registrar/Transfer Agent
Phone: 093-8270212-13 CDC Share Registrar Services Limited
Fax: 093-8270311 CDC House 99-B, Block B, S.M.C.H.S.
E-mail: secretary@gadoontextile.com Main Shahrah-e-Faisal, Karachi.
Toll-Free: 0800 23275
06 I Gadoon Textile Mills Limited Annual Report 2020 I 07

business
model
Manufactured Human Capital Natural Capital
Capital - Almost 5,000 strong
Highest standards are
adhered to with proper
Two most advanced workforce guidelines when natural
manufacturing facilities - Experienced Staff and resources are used in
with state-of-the-art able leadership manufacturing process
machineries
Risks & Governance Strategy &

Opportunities Resource
Allocation
Ginning Outcome &

Value Distribution
Input Output
- Wages to Employees
Business - Return to Shareholders
- Payment of Government Duties & Taxes
Activities - Investment towards Society
- Payment to Provider of Finance
Spinning Knitting Yarn

Knitted
Fabric
Performance Sustainability Outlook
Social and Intellectual

Financial Relationship Capital
Capital Capital - Highly Skilled and
experienced professionals
Equity: Rs. 9.08 billion - International and Local - Most advanced ERP,
Total borrowings: extensive footprint Business Intelligence Tools
Rs. 15.96 billion - Member of elite and cutting-edge
professional bodies Biometric Technology

geographical
spread
Belgium Japan
China Kazakhstan
Croatia Malaysia
Dominican Republic Netherlands Swabi
Egypt Pakistan
El Salvador Poland Lahore
France Portugal
Germany South Korea Faisalabad
Guatemala Taiwan
Honduras Thailand
Manufacturing Plant
Hong Kong Turkey
Indonesia USA Major Market
Karachi
Italy Vietnam International Market

our vision, mission,
culture and core values
Vision
To be the textile manufacturer of the first choice for customers at home and abroad,
doggedly pursuing sustained leadership in the markets where it competes and making its
valuable contribution to the Country’s exports.
Mission
Our mission is to manage a textile business entity aimed at producing quality yarns through
innovative technology and effective resource management, maintaining high ethical and
professional standards, and coming up to the expectations of all our customers.
We persevere to achieve the highest possible operating efficiencies and lowest costs and expand the
business through selective expansion so that we are able to deliver maximum value to stakeholders.
Culture
GTML embraces a culture that is driven by a people-oriented approach and empowers a
collaborative environment for employees. The management is committed to promoting a
coherent culture and facilitating effective teamwork at the workplace; thus, our strong belief
in cultivating open communication is reflected in all that we do. Frequent feedback and
performance evaluation on various levels are ensured to sustain equity and transparency of
employees, which supplement mutual trust and respect among employees and with
management.
Core Values
• Total Quality Management
• Ethical Practices
• Environmentally Conscious
• Innovation

code of business conduct group
and ethical principles profile
Statement of Intent Property Protection
The Company ensures that ethical standards are highly The Company expects its employees to abide by the
maintained and observed in the conducting of business laws of refraining from any embezzlement of its
functions. The Code of Conduct policy has been devised property, both tangible and intangible assets,
to provide direction to the Company employees in meeting entrusted to them, and handle them responsibly. About YBG Lucky Holdings Limited (LHL)
the standards of professional and personal integrity and LHL is a subsidiary of Lucky Cement Limited (LCL) and
YBG is one of the biggest conglomerates in Pakistan
guiding them towards the proficient conduct. The Human Fair and Respectful Workplace with diversified interests in textiles, building materials, was incorporated in Pakistan in the year 2012 as a
Resource department serves its purpose in ensuring that Providing a positive work environment for its employees is public unlisted company under the Companies Ordinance,
real estate, power generation, chemicals, pharmaceuticals,
the employees are well aware of the guidelines. Following the utmost priority. The Company has high intolerance 1984. LCL holds 75% shares of LHL. The main source of
are the salient features of Code of Conduct: for disrespect, discrimination, favoritism, harassment, food, and automotive. The group was established in
1962 as a trading house and then grew rapidly over the earning of LHL is the royalty income received from ICIP.
and misuse of authority. GTML is an equal opportunity
Compliance with Laws and Regulations employer and encourages diversity in the workforce. years. Currently, YBG is one of the largest export
Each employee must comply with all the applicable laws houses in Pakistan.
and regulations. Further, it is also imperative to ensure The Company expects its employees to withhold similar
that the rights of all stakeholders are being protected. principals while conducting business functions, as Holding Company
employees are representatives of the Company.
Conflict of Interest
Employees are required to avoid engaging in activities Health, Safety, and Environment Yunus Energy Limited (YEL)
that conflict with the Company’s best interest. In case Ensuring the health and safety of its employees and YEL was incorporated as a Special Purpose Vehicle
an employee or their close relatives are suppliers or environmental protection is the focus of GTML. In this (SPV), with a corporate structure of a public unlisted
competitors of the Company, it shall be disclosed upon regard, the Company has adopted measures to offer a
company, in the year 2011, to exclusively develop a 50
the date of joining, as it might result in a situation of safe working environment and minimize its
conflict of interest. Abuse of position to achieve environmental impact.
YB Holdings (Private) Limited (YBHPL) MW Wind Power Project in Deh Kohistan, Jhimpir,
self-interests is impermissible. YBHPL was incorporated in Pakistan in the year 2013 District Thatta.
The possession of firearms or other weapons or any as a Group Holding Company. The company invests
Anti-Bribery and Anti-Corruption other dangerous or illegal articles on Company mainly in its group companies and has a diverse
The project is equipped with state-of-the-art European
Employees are required to conduct business operations premises or while on Company business, with the portfolio in building materials, textiles, energy, chemical,
technology. Wind Turbine Generators (WTGs) have
fairly and honestly to maintain the Company’s integrity exception of employment/job requirement in the trading, food, and real estate.
and reputation. Involvement in the acts of bribery or Company operations, is strictly prohibited. been manufactured by Nordex Energy Germany, one of
corruption for business or financial gain is prohibited Associates the top WTG manufacturers from Europe; an electrical
and must be reported. Quality Assurance balance of plants has been supplied by Alstom France, a
Product quality is the core focus of GTML. The Company leading grid solution provider; whereas construction
The Company does not associate itself or is involved with is committed to discovering, developing, manufacturing
activities have been carried out by Descon Engineering
any political party. Thereby, all employees are instructed high-quality products without compromising on the
to refrain from utilizing the assets of the Company in contractual or agreed quality of the product. Limited, the biggest construction, and engineering
ICI Pakistan Limited (ICIP) company of Pakistan.
indulgence and appearance for any political activities
ICIP is incorporated in Pakistan and is listed on Pakistan
by any means. Separation from the Company’s
Stock Exchange Limited (PSX). The company, along with
Employment It is a clean energy project, harnessing renewable wind
Confidentiality Employees must ensure that on leaving the Company’s its subsidiaries, is engaged in the manufacturing of
polyester staple fiber, POY Chips, soda ash, specialty resources for the generation of electric power without
Confidential information must not be disclosed to employment due to any reason, the charge and all Company
unauthorized personnel or used for personal benefit by belongings are handed over duly to the satisfaction of chemicals, sodium bicarbonate, polyurethanes, marketing any carbon emissions. The project is supplying electricity
the employees. Disclosure of sensitive data is permissible management. All the material, electronic equipment, of seeds, toll manufactured and imported pharmaceuticals to the national grid on a regular basis post commencing
in the provision of written approval from authorized computer and accessories, mobile set and SIM card, soft and animal health products, and merchandising of commercial operations in September 2016.
individuals, or the information is required by the court, or hard copies of Company documents, or any Company general chemicals. It also acts as an indenting agent and
regulatory body, or governmental agency. Confidentiality information or property in any shape or form is returned. also deals in the manufacturing of infant milk powder.
of the Company information shall be adhered to
throughout the employment period, and even after
leaving the Company.

Associated Companies spread across the length and breadth of the Country. Karachi, fueled by Thar lignite coal. It will be Pakistan’s
LCL remains focused on the responsible and rational first indigenous fuel power plant outside Thar. The
use of natural resources, a strategy that allows it to project will usher in a new era of indigenous fuel
reduce any adverse impact of its operations and utilization for baseload power generation, in line with
Lucky Air (Private) Limited (LAPL) increase its operational efficiency. The company has the national objective of reducing reliance on imported
LAPL is a subsidiary of LCL and incorporated in embedded sustainability at the core of its operations. fuel. Latest technology for emission control is being
Aziz Tabba Foundation (ATF) Pakistan in 2012 as a private company limited by All the initiatives developed in relation to eco-efficiency installed, which includes Flue Gas Desulphurization (FGD),
ATF is a not-for-profit organization, incorporated in the shares. The company operates an aircraft of Lucky are based on its commitment towards the United Electrostatic Precipitators (ESP) along with associated
year 1987. It is a well-reputed platform which undertakes Cement Limited. It provides services of the aircraft crew, Nations Sustainable Development Goals 2030. environmentally friendly equipment. This project is
to provide financial support to the financially deprived aircraft administration, management, fuel & technical and scheduled to be operational in the second quarter of
people towards their basic amenities and healthcare engineering services on inbound and outbound flights of 2021. The power generated will be fed into the national
the aircraft for LCL. grid in line with a power purchase agreement signed
treatment. Welfare supports include providing financial
assistance for their shelters, education, marriage, with the Government.
vocational training, laptop support, equipment support, Lucky Commodities (Private)
monthly aid, self-employment scheme (motorcycles &
Limited (LCPL)
LCPL is a trading arm of YBG and is the leading
rickshaws), Ramadan rations, and healthcare treatment.
supplier of South African coal in Pakistan. LCPL aims
In order to address the acute water shortages in different Lucky Cement Limited (LCL) to be the preferred supplier for customers by conducting
colonies and underprivileged areas of Karachi, the Founded in 1993, LCL stands as the flagship company
business with integrity, unparalleled services, and
Foundation has also ventured into setting up tube wells of YBG. LCL is the largest producer of cement in Pakistan Lucky Energy (Private) Limited (LEPL)
professionalism. Pakistan is currently facing a severe
besides arranging water through boring sources for with a production capacity of 12.15 MTPA and remains LEPL is a Captive Power Producer (CPP) under the
one of the Country’s leading exporters of quality cement. shortage of electricity; however with the Government‘s
the residents of these low-developed localities. National Electric Power Regulatory Authority (NEPRA)
LCL is listed on the PSX. The company has also issued initiative, and the execution of coal-fired power plants
incorporated in July 1993. LEPL, is a gas-based
Global Depository Receipts (GDRs), listed and traded on in the Country, many industries in Pakistan are moving
ATF is also running two hospitals, namely Tabba Heart thermal power generation unit, with a total production
the Professional Securities Market of the London Stock towards coal as their first priority for electricity and
Institute (THI) and Tabba Kidney Institute (TKI), which capacity of 56.575 MW. It is equipped with one of the
Exchange, and is the first Shariah Compliant company steam generation. most sophisticated and highly-efficient generators and
cater to world-class healthcare services to the community
of Pakistan certified by the SECP. supplies uninterruptible power to its group companies.
coming from across the Country.
As one of the largest suppliers of South African RB1
Over the years, the company has grown substantially coal in Pakistan, LCPL makes an important contribution
and is expanding its business operations with production to the industrial sector by fulfilling its coal requirements.
facilities at strategic locations in Karachi to cater to Being part of the largest business conglomerate of
the southern regions and Pezu, Khyber Pakhtunkhwa,
Pakistan, LCPL has a strong market presence, which
to serve the northern areas of the Country. LCL is
Kia Lucky Motors Pakistan Pakistan’s first company to export sizable quantities of
supports the company to build up a network of
Lucky Entertainment (Private)
Limited (KLM) loose cement, being the only cement manufacturer to
high-profile clients, which include power, chemical, textile,
Limited (LEL)
KLM was incorporated in Pakistan in December 2016 steel, and other major manufacturing industries. LEL is involved in managing the Onederland, which is
have its own loading and storage export terminal at
as a public unlisted company. The company completed Karachi Port. regarded as one of the largest and safest Family
its first year of operations at the end of this year. KLM’s Entertainment Center (FEC) in Pakistan, located in
state of the art facility has the capacity to produce LCL strives to remain an efficient and low-cost producer Karachi’s largest mall LuckyOne. Based on two levels,
50,000 vehicles per annum on a double shift basis. and is one of the pioneers to introduce and install Onederland features technologically advanced indoor
Currently, it has 28 showrooms/service facilities across Waste Heat Recovery, Refuse Derived Fuel (RDF), and attractions and was awarded the 14th Consumer
17 cities to serve its customers across Pakistan. Tyre Derived Fuel (TDF) plants in Pakistan. It also has a Choice Award 2019 as “Best FEC and Best Indoor
self-sufficient captive power generation facility of 180 Roller Coaster.”
MW and supplies additionally generated electricity to
Lucky Electric Power Company
KLM received an overwhelming market response to its Limited (LEPCL) The company has partnered with internationally
launch of "SPORTAGE" a 2000 CC SUV and "PICANTO" a support the national grid. LCL owns a fleet of bulkers and
LEPCL envisions being the premier energy producer acclaimed and award-winning manufacturers to
1000 CC Hatchback, the deliveries of which started in trailers, which gives added advantage in terms of
from the private sector to provide economical, safe, provide one of a kind entertainment centers in the
logistics and efficient deliveries to all types of customers
July 2019 and October 2019 respectively. and reliable power to the off-taker and deliver sustainable city. Featuring arcade games, thrill rides, and virtual
value to all stakeholders. LEPCL is setting up a 660 MW reality entertainment, being a member of IAAPA (The
Supercritical Coal-Fired Power Plant (CFPP) at Bin Qasim, Global Association for the Attractions Industry), and

the Middle East and North Africa Leisure Attractions premier apparel manufacturers in Pakistan with the generation facility of 6 MW. The stitching division is Affordable Cost,” today THI has grown manifolds in its
Council (MENALAC), Onederland is a one-stop advantage of having all the facilities “under one roof,” equipped with sophisticated high-tech machines that reach and magnitude. Because of the high demand for
amusement spot for kids and adults alike. it has succeeded in building effective systems in can stitch fabrics and transform them into home its quality services, the 170-bed facility also has two
quality control and inspection procedures. textile as well as apparel products with a high degree outreach diagnostic centers in DHA-Karachi &
of precision. Stitching machines include Juki, Brother, Autobahn-Hyderabad, with eight laboratory specimen
Kansai, and automated Texpa plants. collection units conveniently located across Karachi to
cater to the larger population base.
Besides offering the complete range of therapeutic

Lucky Exim (Private) Limited (LEXL) and preventive care for cardiovascular diseases, OPD
LEXL, an indenting arm of YBG, is the largest indenter Lucky Landmark (Private) consultations are also available for electrophysiology,
of South African coal in Pakistan. LEXL is the preferred Limited (LLPL) diabetology, pulmonology, nephrology, neurology,
supplier of customers as the business is conducted Situated in the heart of the city, LLPL owns the LuckyOne (Private) Limited (LOPL) infectious diseases, gastroenterology, physiotherapy,
with integrity, unparalleled service, and professionalism. LuckyOne Mall, which opened its doors for the public LOPL is a project company that has constructed psychiatry, a geriatrician and general physician.
Therefore, customers are provided with premium coal on May 6, 2017. One of the largest malls of Pakistan, LuckyOne Mall and LuckyOne Apartments. LuckyOne
that offers the best value for money without compromise Apartments is a magnificent, multifaceted,
with more than 200 retail outlets, the LuckyOne Mall THI also has a structured & recognized fellowship
on quality. With an initial focus on coal trading, the first-of-its-kind high-end residential complex that will
provides an unprecedented retail space that includes training program in interventional cardiology, cardiac
company plans to diversify its trade activities to various revolutionize the luxury living experience in Pakistan.
a health & wellness avenue, wedding galleria, banking surgery & cardiac anesthesiology. Moreover, the
energy and dry bulk commodities. LuckyOne Apartments integrates seven elegant
enclave, and food court. Having the largest Carrefour hospital also offers core skills training programs in
and the biggest atrium in Pakistan, LuckyOne Mall is residential towers and a large 8-acre rooftop park. nursing and allied health services.
the first in the industry to have an in-mall open-air The project comprises two phases, of which Phase-1
food street and an international standard FEC, i.e., is being launched. Having the services of top-notch consultants
Onederland. To facilitate the customers, the mall also supported by highly skilled, trained, and motivated
offers a double-story parking lot sufficient for around Conveniently situated at the prime location of Karachi paramedical & administrative staff makes THI the
on main Rashid Minhas Road, opposite UBL Sports
Lucky Foods (Private) Limited (LFPL) 1500 cars. top-rated cardiac hospital of the Country.
Complex, the apartments are easily accessible through
Incorporated in 2015, LFPL has a strategic aim to be one
Recognized for providing an ultimate shopping experience, major flyovers of Karachi. The unbeatable mix of
of the leading corporate dairy farms in Pakistan. The
LuckyOne Mall continues to expand, renovate, and offer top-class luxury apartments and high-end amenities
company is currently focusing on local animals and has
an innovative and engaging experience to its audience, like swimming pool, gymnasium, jogging track, tennis
also developed its retail shops and home delivery network
making it truly the place to be! courts, reading room, event hall, play areas, and the
to reach household consumers. The company has also
amazing 8-acre rooftop park makes LuckyOne Tabba Kidney Institute (TKI)
ventured into the marketing of yogurt and plans to add
Apartments the premiere lifestyle destination for TKI is a 100-bed modern and well-reputed postgraduate
more value-added dairy products. The farm is located at
urban living in Karachi. training & research center with state-of-the-art
Super Highway, Karachi. LFPL aims to be a leading player
in food-related products, across Pakistan and in the technology and modern expertise and is committed to
export market. providing comprehensive nephro-urological and allied
medical treatment. TKI enjoys an impeccable image in
Lucky Textile Mills Limited (LTML) the healthcare sector as it is famous for the cure of
LTML was established in 1983 and has since remained renal diseases and maintaining facilities of rapid
one of the leading textile manufacturers in the Tabba Heart Institute (THI) emergency, in-patient department, consultant
Country. The company is engaged in the activity of THI is the leading cardiac care hospital in Pakistan. Since clinics/OPD, clinical laboratory, pharmacy, high-tech
manufacturing and export of fabrics, home textiles, its inception in 2005, the hospital has carved a niche operation theatres equipped with the latest equipment
Lucky Knits (Private) Limited (LKL) and garments. It has two state-of-the-art weaving for itself in the cardiac healthcare sector of the Country like flexible ureterorenoscope, 3D laparoscopic
LKL started its operations in 2005. Located in Karachi, mills that altogether have 483 Sulzer Shuttleless by providing the highest quality of care. The hospital equipment, 140 W Laser, and 4K camera technology.
the factory consists of a vertically integrated set up, looms and 408 Air Jet looms, which are equipped with has the distinction of being the “first and only” hospital
having its own knitting, dyeing, cutting, printing, a computerized back process comprising of Karl in Pakistan to be recognized by the American College The unmatched quality services of TKI have been
stitching & packing facilities. The company manufactures Mayer warping and sizing machines. of Cardiology for its quality cardiac care practices. certified by the International Organization for
a substantial variety of knitted garments, and product Standardization (ISO) and accredited by the College of
line ranges from T-shirts, polo shirts, hoodies, jackets, It has the capacity to process 72 million meters per Founded by renowned philanthropist Mr. Abdul Razzak Physicians and Surgeons Pakistan. TKI, being more
shorts, trousers, and face masks. As LKL is one of the annum of fabric. Further, LTML has its own power Tabba (late) with the vision of “Quality Care at an than a hospital, gains excellence in surgical research

and has developed itself into a staggering educational
institute. For the facilitation of patients, TKI has set-up a
diagnostic & consultation center in DHA Karachi and
operates an OPD clinic in Hyderabad to spread its
services across Sindh. TKI not only provides Y.B. Pakistan Limited (YBPL)
comprehensive kidney care, but is also committed to Yunus brothers started a business in 1962 as a
educating medical professionals via offering fellowship partnership between Mr. Abdul Razzak Tabba (Late)
training programs in Urology and Nephrology. TKI and Mr. Yunus Tabba. Initially, trading of grey cloth
organizes various workshops and conferences inviting was the main business. However, with time the firm
healthcare experts from across the globe, which not started dealing in other commodity items like wheat,
only enriches professional knowledge to TKI students rice, corn, and other pulses, etc. In order to encourage
and fellow doctors but also to those coming from corporate culture, the management decided in 2012
different parts of our Country. to convert the partnership firm into a public limited
company with the name and style of YBPL. The company
has a diversified portfolio of investments in various
segments of businesses.
Tricom Wind Power (Private)

Limited (TWPPL)
TWPPL is another step of YBG towards sustainable
green energy, incorporated as a Special Purpose Yunus Textile Mills Limited (YTML)
Vehicle (SPV), with a corporate structure of a private YTML is a vertically integrated home textile unit
limited company, to exclusively develop a 50 MW Wind established in 1998, consisting of spinning, weaving,
Power Project in Deh Kohistan, Jhimpir, District Thatta. dyeing, printing, finishing, and cut & sews with a
workforce of 3,900 employees. In a span of 10 years, it
The company has achieved its financial close on November became the number one home textile exporter of
18, 2019, and is currently under the construction Pakistan with a 10% share (approx.) of all home textiles
phase. The company is expected to commence operations exported. The company has its international
in the first half of 2021. The project is financed by a warehousing, distribution, and design development
consortium of local and foreign lenders. offices in the USA and France.

organizational executive
chart management
Head Office
Board of Directors
Mr. Muhammad Sohail Tabba Mr. Abdul Sattar Abdullah Mr. Imroz Iqbal
HR & Remuneration Committee Chief Executive Officer Audit Committee Chief Executive Officer Executive Director Finance and COO Knitting/Director Export
Company Secretary Sales and Marketing
Chief Internal Auditor

Mr. Muhammad Imran Moten Mr. Salam Chottani Mr. Haji Muhammad Mundia
Chief Financial Officer Director Local Sales Chief Internal Auditor
Gadoon Amazai Plant

Factory Head Office Technical &
Administration Span Management Span Production Span
Director Resident Chief General COO Knitting/ Executive Director Chief Head of Technical Technical Director
Mr. Waqar Ahmed Khan Mr. Iftikhar Ahmed Mr. Mohammad Nadeem Riaz
Administration Director Information Manager Director Director Finance Local Sales Financial Human Directors Power Plant Director Administration Director Technical Director Technical
Officer Procurement Export Sales and Company Officer Resource
and Marketing Secretary
Mr. Shafqat Mumtaz Ahmed Mr. Haf iz Waseem Mr. Asad Ansari
General Manager General General General General Manager Director Technical Director Technical Director Technical Power Plant
Information Technology Manager Manager Accounts Manager Finance Taxation &
Export Corporate Affairs
Sales
Karachi Plant
Key Quantitative Information

The number of persons employed as on the
date of financial statements and the average
number of employees during the year, along
with factory employees, is disclosed in note 36
Mr. Tahir Saleem Mr. Akhtar Kamdar of the financial statements.
Executive Director Technical Resident Director

position within
the value chain
Transport
Plant
Fiber
Transport
End Consumer
Retail Garment
(Leading Store) (Manufacturing)
outlets

significant factors af fecting
the external environment and Factors Impact Response
organization’s response Legal Compliance with legal/regulatory

requirements is necessary for the
In addition to its professional team, the Company
also hires lawyer/tax expert services, on a need
Company’s smooth operations. basis, to ensure compliance with all legal/regulatory
Organizations are affected directly or indirectly by the external environment in which they operate. It is stated with requirements.
certitude that it is not possible for companies to work in a vacuum or in isolation with their surroundings. The
different elements of the external environment are discussed as under: Environmental Company activities have an impact on the In addition to ensuring compliance with applicable
environment in which they operate. With environmental laws and regulations, the Company
PESTLE Analysis the rise in the importance of corporate also takes additional steps regularly. Few
responsibility, environmental factors are instances are:
becoming increasingly crucial for the • Successfully installed Waste Heat Recovery
Factors Impact Response
growth of the Company. Plant (WHRP). The plant operates by
Political Stable political conditions impede the growth - Consistent market analysis by the senior transforming the engine’s heat and smoke
of any economy. Frequent changes in management and proactive planning to into power that is used for further
Government policies affect the confidence mitigate any unfavorable outcome on the processes.
level of the investors, and accordingly, Company’s business. • Tree plantation in the factory premise for
business on overall suffers. - Arranging sessions with investors limiting the emission of harmful gases in
/stakeholders to boost their confidence. the atmosphere.
Economic Economic conditions have a direct impact The Company actively monitors the economic
on the Company’s performance. An factors and takes steps to minimize its negative Competitive Landscape and Market Positioning
adverse moment in the exchange rate, impact. Some of the steps taken during the past Porter’s Five Forces model has been used to analyze the industry structure and the corporate strategy of GTML for
interest rates, inflation rate, etc. negatively couple of years are: further measuring the competition intensity, attractiveness, and profitability of the textile industry.
impact the business of the Company. • Conversion from foreign currency-denominated
borrowings to local borrowings, and vice versa,
owing to possible devaluation of the currency
or increase in interest rates. • Regional competitors benefit
• Efficient cotton procurement. Competitive from economies of scale and
• Investment in diversified avenues. Rivalry subsidized conversion cost
(High)
Social Being socially responsible is another The Company not only participates diligently in the
significant factor of critical importance CSR activities but also encourages its employees
that adds to the Company’s performance to devote their time to the betterment and Threat of • Limited alternatives
• Abundance of Suppliers
levels. The organizations involved in playing well-being of the society. In this respect, different Substitutes due to lack of
domestic suppliers Power investment in R&D
an active role in the betterment of society
earn a name in the market and, accordingly,
activities are planned each year.
• Import options (Low) Porter's (Low to
Medium)
tend to attract and retain their customers,
employees, and other stakeholders.
Five
Technological Technological developments and - In order to gain a competitive advantage, the
Forces
innovation determine the progression of Company regularly invests significant amounts
an organization. on new technologically advanced machinery,
which is evident from Rs. 1.37 billion CAPEX this Buyers Threat of New • High CAPEX required
• Volatile demands due to
year as well. Power Entrants • Inconsistent
emerging trends
- The Company also ensures participation of its (High) (Low) Government policies
• Negligible switching cost
senior management in various national • Power management
• Easy access to global
/international exhibition/training session, to suppliers
acquaint them with the latest technology.

awards and
Effect of Seasonality on Business
The Company’s major business is derived from the manufacturing and sale of yarn. The Marketing team performs
achievements
regular trend analysis to pursue upcoming demand well before regional and international festivals. Also, the business
gets slow down during the vacation in China on account of Chinese New Year. • Top 25 Companies for the Year Award
• Top Exporter (Foreign Exchange Earner) of the Province
Significant Changes from Prior Years
There were no significant changes within the organization regarding the information disclosed in this section. • Top Importer of the Province
• Top Income Tax Payer of the Province
Composition of Local vs. Imported Material/Sensitivity Analysis
As a yarn manufacturer, raw cotton is the main raw material. The composition of the raw material procured during the • Best Consumer Award
fiscal year is stated as follows:
• Businessman of the Year Gold Medal Award
Imported Local Total

• Business Excellence Award 2016 - 2017
For the Year KG (in '000) (Rupees in '000) KG (in '000) (Rupees in '000) KG (in '000) (Rupees in '000) • ACCA and ICAEW Approved Employer Status
2020 67,678 17,713,321 27,541 5,638,968 95,219 23,352,290 • ICAP's Outside Practice Scheme’s Enrollment
2019 49,741 13,367,880 38,022 8,101,037 87,763 21,468,917 • Awarded with Best Corporate Report Award 2015 to 2018
• Secured First Place in National Finance Olympiad (NFO) 2016 organized by ICAP
The Company is exposed to foreign currency fluctuation mainly for its imported raw material. If the Pakistani Rupee
had strengthened/weakened by 10% against the US Dollars, Euros and Swiss Franc with all variables held constant,
the raw material cost for the year would have been higher/lower by Rs. 1.77 billion (2019: Rs. 1.34 billion). This
analysis assumes that all other variables, in particular, interest rates remain constant.
Awards Received During the FY 2019-2020
Best Corporate Report Award
The Company believes in providing the stakeholders with a
well-integrated corporate annual report and ensures the quality
and transparency of information provided to them.
Keeping in view, the Company’s best corporate reporting practices,

the Company’s Annual Report for the year 2018 was able to
secure the third position in the Textile sector in the Best Corporate
Report Award competition jointly held by Institute of Chartered
Accountants of Pakistan (ICAP) and the Institute of Cost and
Management Accountants of Pakistan (ICMAP).
Top 25 Companies Award

The PSX has adopted a practice to acknowledge the performance
of the top 25 companies every year based on comprehensive criteria
which include; capital efficiency, profitability, free-float of shares,
transparency, corporate governance & investor’s relation, and
compliance with the listing of companies & securities regulations.
GTML bagged the Top 25 Companies Award for the year 2018 for
its remarkable performance in the areas highlighted in the criteria.

dreams
worth
sharing
Strategy and Resource Allocation
strategy and
resource allocation Objective Priority Timeline Status Strategy Opportunities/Threat Resource
Allocation Plan KPIs
Diversification High Medium Ongoing Expand Diversifying into new In order to achieve this 1. Profitability
of risk and Term Process within and avenues of business is objective, GTML has ratios
The foundation of an organization’s planning lies upon the identifiable goals towards which all organizational businesses outside a strategic decision strong financial 2. Return on
activities are directed. Objectives serve the basis of managerial functions and organizational existence of any to maximize the that comes with standing and has Capital
organization. GTML devises challenging objectives for attaining profitable results and gaining a competitive shareholders spinning uncertain business sufficient available Employed
advantage in the market. The strategic objectives are an integral part of a business that plays a pivotal role in the return sector by outcomes, high costs limits (financial
organization’s success. The objectives of GTML are mentioned below. continuously in terms of capital capital). In order to
seeking expenditure, and manage the
Strategic Objectives and Plans for viable human capital investment in
avenues. requirements. GTML diversified projects,
Objective Priority Timeline Status Strategy Opportunities/Threat Resource KPIs regularly searches for GTML has an
Allocation Plan
opportunities to invest experienced
Sales High Short Ongoing Maximize Increased In addition to the 1. Market and diversify its management pool. The
maximization Term Process sales by globalization, coupled budget allocated for Share investments and risks, roles and
and global exploring with Government’s marketing to boost 2. Number thus ensuring responsibilities have
footprint and foreign policies (GSP+, export sales (financial of new maximum value for its also been
entering etc.) status given to capital) and to explore Countries shareholders. appropriately assigned
new Pakistan, has new markets, the tapped to a dedicated team
markets, supported the industry management is placing responsible for
hence in retention and efforts to build a global managing
increasing further penetration in image of the Company investments, and their
the global the market. However, (social and relationship competency level has
footprint its withdrawal seems capital). For these been ensured.
of the to be a threat for the reasons, various
Company. local companies in the activities are being Attaining High Short Ongoing Regularly The Company strongly The Company keeps a 1. Impact on
prevailing situation planned for the coming business Term Process monitor believes in the notion significant focus on costs
where the government year too. The synergy the of continuous investment in the 2. Internal
of regional competitors Company, being a through business improvement and training and and
incentivizes local member of various operational processes focuses on ways to development of its External
manufacturers. forums/associations, efficiency and look improve overall staff and executives at Training
Further, the trade war also attends for ways efficiencies. various local and sessions
between global trade investment to make Sometimes this international levels.
giants along with the conferences and the requires the This helps staff and
COVID-19 pandemic is seminars both locally overall employment of executives improve
also negatively impacting and globally, thus process unconventional their management and
the economy. This poses promoting its lean and practices where technical skills and
a further threat to the corporate image efficient. outcomes may be equip them with the
entire sector, as well as (social capital). In unfavorable. latest production
issues, distinctly related addition, to ensure techniques to enhance
to power, tariff, incentive presence at various overall efficiency and
schemes, and increased events/seminars, our effectiveness
conversion costs would Corporate and (Human capital).
impede progress in the Branding team
long run if not dealt by continuously monitors
the Government with possible avenues and
high priority. participates actively.

Objective Priority Timeline Status Strategy Opportunities/Threat Resource KPIs
Liquidity Strategy available at the Company’s disposal. The Company
Allocation Plan has a sustainable growth with business stability.
Sustain High Long Ongoing Planned GTML plans to stay In order to sustain 1. Profitability Current Liquidity Position Moreover, the gearing of the Company has also been
industry Term Process and ahead of its industry leadership, ratios The liquidity position of the Company is on a solid monitored and controlled in line with business
leadership - Targets regular competitors and help the Company has been 2. Market foundation, and it has an adequate capital structure objectives. The Company regularly monitors the
for the upgradation achieve economies of investing in share mainly supported by equity. debt-equity ratio to keep the Company from any
year of scale in the long run. technologically excessive debt pressure.
achieved. production Planned upgradation advanced machines 2020 2019
facilities; helps the Company in (manufactured (Rupees in ‘000) Plans and Decisions
timely ensuring minimum capital). It anticipates From time to time, the Company has diversified its
Equity 9,084,358 9,209,433
deployment production downtime. that in the coming business operation through expansion, restructuring,
Long Term Finance 3,594,781 2,675,091 including the merger. However, there are no plans for
of the However, the process years, the Company
latest of upgradation and will be able to any significant restructuring, business operations, or
The Company stands on a strong repayment legacy as discontinuance of operations in the near future.
technological maintenance does rationalize its
the Company has never defaulted any payment against
innovations result in high monetary workforce (human
and costs initially. capital), which will
financial institutions, vendors, Government agencies, Changes in Objectives and Strategies
etc. and the management is confident that the The business objectives and strategies of the Company
manufacturing bring in further value
Company would not face any liquidity issues in the are developed through extensive research, planning,
techniques addition to the
future. The Company has sufficient liquid resources in and benchmark practices. The objectives and strategies
to Company. Moreover,
hand to meet its working capital requirement. The have been designed in alignment with the vision
maximize the Company has also
Company has managed to improve its current ratio statement of the Company. To measure the Company’s
overall expanded its vertically
over the years, which is evident from an increase in performance against the stated objectives, key performance
efficiencies integrated segment,
the current ratio from 0.82 in 2015 to 1.03 in 2020. indicators have been set, which are measured and
and and accordingly, the
This depicts the performance of the management in regularly monitored by the management. Other than
production new site
achieving the targets set by the Board. The the impact of the COVID-19 pandemic, as the result of
of a (manufactured
management ensures all necessary measures to which the Company's operations were curtailed,
customer capital) has become
manage the ratio at the optimum level. planned, and then resumed accordingly, there has
-centric operational in the
product. month of December been no material deviation from the targets’ set to
The increase in Long term finance is mainly on account achieve the strategic objective during the year.
2019.
of CAPEX during the year. The principal repayment of
Maintain high High Long Ongoing To Adoption of such The management of 1. Employee Rs. 1.31 billion out of Rs. 3.59 billion appearing as
ethical, Term Process continuously measures would the Company places retention long-term finance as at June 30, 2020, will be due
professional, monitor improve the strong emphasis to ratio after five years.
and and Company’s overall ensure that all regulatory 2. Long term
environmental incorporate brand image. requirements and best relations Financing Arrangements
standards the best Whereas failure to industry standards are with The Company has cordial business relations with all
industry comply with the complied with (social stakeholders the reputed banks and financial institutions of the
practices industry standards and relationship capital). Country. Adequate unutilized financing facilities are
within the could prove to be a Achievement of this
Company threat to the objective would help
that Company. maintain healthy
contribute relations with employees
to the (human capital) and
stakeholders’ other stakeholders. Also,
well-being. it would provide support
for environmental
sustainability (natural
capital).
The indicators stated will continue to be relevant in the future as well.

dreams
worth
admiring
Risk and Opportunities
admiring
the dream
of a
lifetime
risk and
opportunity report Category
of Risk Risk Form of
Capital Source Assessment Effect on
Strategic
Objectives
Plans and Strategies
to Mitigate Risk
Strategic New Laws Social and External Likelihood: Non-compliance The Legal and Corporate
The management of the Company follows a rigorous approach to risk management, which is essential to running a Risk and Relationship Medium with the department proactively
successful and sustainable business. The Board of Directors of the Company is closely connected to effective risk Regulations Capital Magnitude: laws and monitors and ensures that all
management. Risk assessment, reporting, and control help enhance governance and control policies and keep the Medium regulations relevant laws and regulations
Company aligned with its objectives. can are complied with.
negatively
Our Board members have diversified skills, knowledge, and experience, which enable them to identify and manage reflect on
the key risks that are likely to arise. They also steer the culture of an organization, which promotes an appropriate the
balance between risk and opportunities. Company’s
image.
Risks, Opportunities, and Countermeasures
Commercial Increased Social and External Likelihood: Intense The Company believes that its
Risk competition Relationship Medium competition years of experience, quality,
Potential Risks
between Capital/ Magnitude: can impede research and development,
Category Form of Assessment Effect on Plans and Strategies local and Financial High in sustaining brand image, and customer
Risk Capital Source Strategic to Mitigate Risk
of Risk Objectives international Capital industry loyalty are success factors to
suppliers of leadership. sustain even in this global
Strategic Economic Social and External Likelihood: Unstable The Company believes in an the product economic scenario.
Risk and Political Relationship Medium conditions open and transparent
stability of Capital/ Magnitude: cause relationship with the Disposal of Manufactured Internal Likelihood: Failure to Management proactively
the Country Financial High hindrances Government, regulator, and waste in an Capital Low comply with monitors the arrangement in
Capital for the other political stakeholders. As appropriate /Social and Magnitude: the place and ensures that all
management part of the larger industry, the manner Relationship Medium appropriate environment-related laws are
to take Company, through its Capital mannerisms complied with.
strategic representatives, provides can sabotage
decisions in valuable suggestions to the Company’s
order to regulators/committees/ reputation in
maximize subcommittees. We regularly the market.
returns. monitor the economic and legal
Operational Safety and Manufactured Internal Likelihood: Damage to The Company has formulated
Further, it impacts of Government
Risk security of Capital Low the assets and implemented a safety and
can impact policies and political actions on
assets Magnitude: can cause security mechanism
the the Company as well as the
Medium financial loss throughout its manufacturing
Company’s textile industry.
and affect and administrative facilities.
reputation in
the Moreover, all assets are
the global
profitability insured through reputable
market,
of the institutions in order to
making it
Company. safeguard assets against any
difficult to
unforeseen event.
expand its
global Employee Human Internal Likelihood: High employee The Company provides a good
footprint. turnover Capital Low turnover working environment and
Magnitude: would optimal growth opportunities
Medium prevent the to its employees in order to
Company from keep them motivated and to
achieving keep them connected with the
overall Company.
business
synergies.

Effect on Effect on
Category Form of Form Plans and Strategies Capital
Risk Capital Source of Capital Strategic to Mitigate Risk Key Opportunities Source Strategic Strategy to Materialize
of Risk Objectives Form Objectives
Financial Adverse Financial External Likelihood: Fluctuation The Company mainly meets its Maintaining healthy External Social and Aids in The Company works on managing
Risk changes in Capital Medium in interest working capital requirements external relationships Relationship expansion and external relations, promoting the brand
interest Magnitude: rates can through short term financing strengthen the Capital sales by enhancing its social media presence,
rates Medium complicate facilities. In order to mitigate Company portfolio maximization, and branding activities to cultivate its
the decision the risk of rising interest rates, which in turn brand image.
-making management negotiates would maximize
process for prevailing market rates and shareholder
diversification maintains an efficient portfolio return.
of business of sources of funds.
which Hiring of Internal Human Help the The Company participates in Talent
accordingly quintessential Capital Company Hunt Programs in reputed universities,
will have an employees. Skilled achieve overall regularly updates its job application
impact on resources would business process, and develops talent assessment
shareholders assist in continually synergies. tests to hire right-fit candidates. The
return. changing the business Company actively conducts learning
climate. and development programs for
Defaults in Financial External Likelihood: Defaults in The Company regularly improving the soft and technical skills of
payments by Capital Low payments monitors the credit period and the employees so that innovation and
Debtors Magnitude: may impact balance of major parties. change can be brought about.
Medium the Reconciliation and confirmations
Technology External Manufactured Use of latest The Company continuously invests
Company's are also obtained from parties
Advancement Capital/ technology considerable amounts in technologically
cash flows, periodically.
Intellectual would help the advanced machinery in order to remain
which in turn
Capital Company stay competitive and cost-efficient.
may impact
ahead of the
the
competitors and
profitability.
sustain industry
leadership.
Potential Opportunities
Diversification of External Social and Enhance the The Company keeps itself updated
Pakistan is one of those countries where the upper-middle class and middle-class population forms the majority.
Product Range Relationship overall regarding new trends, customer
This factor opens up the opportunity to sell knitted wear and garments to the Country’s local mainstream
Capital/ productivity of choices, thus; the Company copes with
population. The ever so competitive local and international market has made it difficult for companies to sustain. This
Manufactur the Company the new ideas accordingly.
provides our Company with the opportunity to acquire smaller players of the market and increase its market share
ed Capital and maximize
and economic efficiencies.
sales.
Effect on
Capital
Key Opportunities Source Strategic Strategy to Materialize
Form Objectives
Increasing profits and External Social and Enable the The Company continuously strives to
growing demand in the Relationship Company to increase its productivity and
market Capital/ maximize sales profitability and efficiently manages
Financial and returns, business operations to cope with the
Capital facilitating the growing demand.
sustainability of
industry leadership.

risk management materiality
policy determination
The purpose of the Risk Management Policy (RMP) is to identify the risk, which may Materiality Assessment
create hindrances for management to achieve the Company’s objective and Materiality determination of the Company is the value-creation strategy that prioritizes the most impactful areas of
society, environment and economy. The issues highlighted to influence the decision-making process of the
introduce appropriate and effective controls to mitigate the identified risk. The Board stakeholders and the responses need to be timely identified, evaluated, and formulated.
of Directors (BOD), Chief Executive Officer (CEO), and concerned Head of
Department (HOD) are responsible for the Risk Management Policy.
Following are the salient features of the Risk • Every HOD will prepare a document of the identified
Management Policy: risk of his/her department along with the control
Prioritization
measure to mitigate the risk. The HOD will keep the Identification Interpretation
of Material Action Taken
• Management must ensure that every HOD must identify record of change in the level of risk and will keep of Materiality and Validation
Issues
the risk of his/her department and describe the measures track of reporting to higher authority and measures
to mitigate the identified risk. Every department must taken by the concerned department to control the
be updated about relevant regulatory requirements, laws, situation. Every change in the level of risk shall be
and codes of conduct pertaining to the activity of reported to the CIA for assessment and updating in
his/her department, and it should be observed and the Risk Register.
implemented at various execution levels.
Risk Register & Annual Presentation to Board
• Each risk should be categorized in 4 levels, namely The Internal Audit department shall prepare and update
low, medium, high, and crucial. the Risk Register. The Internal Audit department shall
evaluate the effectiveness of control and should also
• HOD should set and change the levels of risk with check the reporting of the risk to the CEO/BOD when it Evaluating the Interpretation
the consultation of the Chief Internal Auditor (CIA). is being required to be reported. CIA will present the Relevant areas
significance of of material
HOD will also be empowered to modify the measures report to the Board annually about the newly identified that may impact Implementation
economic, social issues, action
to cope up with already identified risk. risk of every department and control measure taken by stakeholders of action plans
and environmental planning and
the HOD along with the Risk Register of already decisions
impacts reporting
• The monitoring and reporting level of each risk will identified risk.
be defined by the CEO with the consultation of CIA
and HOD.
Materiality Matrix
The material issues identified have been presented in the table below. The matters have been marked on the basis of
their effect on stakeholder’s assessment and decisions, and significance of their impact on the economy, society and
environment. The materiality analysis not only helps in identifying issues to the stakeholder but also assists us in
deciding the area of focus of our internal resources.

Sustainability Material Topic Marking Boundary
Area
Social Business Ethics GTML / Supplier / Customer
Human Rights GTML
Health and Safety GTML
Training and Education GTML
Compliance GTML / Regulator
Marketing Communications GTML
Data Privacy and Cyber Security GTML
Stakeholder and Community

GTML / Community
Involvement
Environment Energy and Water GTML
Emissions GTML / Community
Material GTML / Supplier
Economic Economic Performance GTML
Economic Returns GTML
Market Presence GTML
Significance of Impacts on
economy, society and environment
High Moderate
High
Influence on Stakeholder
assessment and decision
Moderate
Robust Assessment of Risk Capital Structure and Payment of Debts

As disclosed in the Directors’ report, the Board of As discussed in the Strategy and Resource Allocation
Directors has carried out a robust assessment of the section, the Company has an adequate capital structure,
principal risks which the Company is facing and are mainly supported by equity. Further, the Company has
confident that the Company has adequate a practice of settling obligations on a timely basis, and
plans/resources to outweigh the possible negative accordingly, there is no history of any default with
impact of these risks. respect to payment of the debt.

dreams
worth
relishing
Governance
Board of Directors
Under the direction of our profound and astute leaders, we have successfully
marshaled our people’s drive and passion towards the road of prosperity.
relishing
Our Board of Directors have played a pivotal role in transforming GTML throughout
the course of its operations; they have led GTML from the front and, at the same
time, have stayed by their workforce through thick and thin. Their determination to
achieve excellence and staying by their employees is what drives GTML every day.
the dream
Further, all the applicable legal and regulatory requirements have been complied,
with regards to the composition of the Board of Directors of GTML.
of a
lifetime
directors’
directors’
prof ile profile
Mr. Muhammad Yunus Tabba Mr. Muhammad Sohail Tabba Limited, LuckyOne (Private) Limited, he is the Director
Chairman Chief Executive Officer of Lucky Cement Limited, Kia Lucky Motors Pakistan
Limited, and several other companies. His social
Mr. Muhammad Yunus Tabba started his over Mr. Muhammad Sohail Tabba - Pakistan’s business engagements include being the founding member of
fifty-eight years-long career with YBG as one of its dynast and philanthropist, owes his prosperity to an the Italian Development Council and playing his
founding members and has seen it progress through agglomerate of businesses and export houses bearing instrumental role in contributing to the educational
manufacturing, sales, management, marketing the YBG brand name. His proficient leadership in landscape of Pakistan by presently being on the Board
management, and general management. With his diverse sectors - manufacturing, cement, energy, of Governors at Textile Institute of Pakistan and serving
expertise and diversified experience, he has taken entertainment, real estate, and philanthropy - on the Board of Hamdard University in the past.
YBG to a level that is appreciated by both local and spanning over almost three decades - has earned
international business communities. laurels and accolades for his group and the Country. Driven to contribute to the community,
Mr. Muhammad Sohail Tabba became Founding
Mr. Muhammad Yunus Tabba has also been awarded Mr. Muhammad Sohail Tabba - the CEO of Gadoon Trustee of Childlife Foundation Pakistan in 2012. His
“Businessman of the year” by the Chambers of Textile Mills Limited, Lucky Knits (Private) Limited, and magnanimous contribution to the healthcare sector
Commerce several times during his awe-inspiring Director of Yunus Textile Mills Limited, Lucky Textile of Sindh is treating almost 2,000,000 patients
entrepreneurial career. In recognition of his Mills Limited - is spearheading Pakistan‘s leading annually through contemporary children’s emergency
outstanding services rendered in the field of company - YBG - in the arenas of textiles globally. rooms in seven Government hospitals. He is also the
entrepreneurship and public service, the President of Director of the Aziz Tabba Foundation that holds
the Islamic Republic of Pakistan conferred upon Mr. He was appointed as a Non-Executive Director on Tabba Heart and Kidney Institutes besides several
Muhammad Yunus Tabba “Sitara-e-Imtiaz,” one of the Board of ICI Pakistan Limited in 2012, and since 2014, other welfare projects.
highest awards the Government of Pakistan bestows with his laudable leadership, he acquired the position
upon a civilian. of Chairman ICI Pakistan Limited. His escalation further
accelerated; he became the Chairman of NutriCo
Morinaga (Private) Limited. In 2016, state-of-the-art
Morinaga manufacturing facility was established in
Pakistan as a joint venture to produce infant formula.
His vision enabled the manifestation of LuckyOne Mall.

The magnificent edifice, in the heart of Karachi, provides
shopping facilities and entertainment at Onederland,
to children and people from all walks of life.
Besides being the CEO of Lucky Energy (Private)

Mr. Muhammad Ali Tabba With extensive engagements in many community Mr. Jawed Yunus Tabba
Director welfare projects, Mr. Muhammad Ali Tabba serves on the Director
Board of Governors at numerous renowned universities,
Mr. Muhammad Ali Tabba is the Chief Executive Officer of institutions, and foundations. He is the Vice-Chairman of Mr. Jawed Yunus Tabba has a rich experience in the
Lucky Cement Limited, succeeding his late father in 2005. Aziz Tabba Foundation. textile industry and is currently the Chief Executive
He also serves as the Chief Executive Officer of Yunus Officer and Director of a renowned textile mill, Lucky
Textile Mills Limited, a state-of-the-art home textile mill In recognition of his outstanding services and Textile Mills Limited. His untiring efforts helped him
with subsidiaries in North America and Europe. contribution to the business as well as the social acquire deep insight and expertise in export and
Simultaneously spearheading both these organizations, development sector of Pakistan, the Government of manufacturing activities. He has been instrumental in
he also plays a pivotal role in providing strategic vision to Pakistan awarded him with Sitara-E-Imtiaz in 2018. managing the textile concerns of the YBG and has
ICI Pakistan Limited as its Vice-Chairman. transformed Lucky Textile Mills Limited into one of the
premier textile companies in Pakistan. Lucky Textile
He started his career with the YBG in 1991. Mills Limited is among the top five home textile
Mr. Muhammad Ali Tabba was the past Chairman of exporters from Pakistan, and it has been a story of
Pakistan Business Council (PBC), a business advocacy rapid expansion and diversification in the textile
forum comprising of leading private sector businesses. industry under his leadership and guidance. He is also
He is the Chairman of Kia Lucky Motors Pakistan Limited the Vice-Chairman of YBG.
and Lucky Electric Power Company Limited.
He is on the Board & related subcommittees of Lucky
He has also served in the past as the Chairman of the All Cement Limited, ICI Pakistan Limited, Gadoon Textile
Pakistan Cement Manufacturing Association (APCMA), a Mills Limited, and Kia Lucky Motors Pakistan Limited.
regulatory body of cement manufacturers in Pakistan. He is keenly involved in the formulation of vision,
In recognition of his outstanding services and contributions strategies & governance structures of these companies.
in the social development sector of Pakistan, World Economic
Forum (WEF) in 2010 bestowed the title of Young Global Mr. Jawed Yunus Tabba is also managing the real
Leader (YGL) to Muhammad Ali Tabba. He is also the estate project LuckyOne, which is the largest mall in
recipient of the Karachi Chamber of Commerce and Pakistan. Mr. Jawed Yunus Tabba is extensively
Industry “Businessman of the Year” Gold Medal Award engaged in community welfare projects, which include
for 2012-2013. the Aziz Tabba Foundation. He is also a member of the
Young President Organization (YPO).

Ms. Zulekha Tabba Maskatiya
Director
Having pursued a Bachelor’s degree in Management

Sciences from the University of Warwick and a
Master’s degree in Management, Organizations and
Governance from the London School of Economics
and Political Science, Ms. Zulekha Tabba Maskatiya has
been an indispensable part of the business.
She not only holds a prestigious position within the

YBG, but her educational background brings the
values of business focus, corporate governance, and
social responsibility to the organization.

Mr. Saleem Zamindar Mr. Zafar Masud Development Company Limited. In addition to this, he
Director Director also served as the member of the Board of Directors
and Chairman of the Board Technology and
Mr. Saleem Zamindar has a Bachelor of Arts (BA) Mr. Zafar Masud, an international banker, and Digitization Committee of National Bank of Pakistan,
degree in Economics from Boston University, USA, entrepreneur has extensive experience working at Member of the Board of Directors and Chairman of
and a Master of Business Administration (MBA) from the Board of Directors level, including State Bank of the HR Committee of Port Qasim Authority, Member
Durham University Business School, UK. He has over Pakistan (SBP) and Barclays Bank Southern Africa, Advisory Council, Ministry of Maritime Affairs,
25 years of experience across several countries in while he is currently serving as the President and CEO Member of the Board of Directors of Quaid-e-Azam
investment management, board level general of Bank of Punjab. Mr. Zafar Masud obtained his MBA Thermal Power Plant (Private) Limited and Member of
management & international banking. He is a certified in Banking from the Institute of Business Board of Directors of TAF Foundation. He was also the
company Director by the Pakistan Institute of Corporate Administration, Karachi, and a Bachelor of Commerce Founding Partner of Burj Capital.
Governance (PICG) and additionally also holds the from the Hailey College of Commerce, University of
globally prestigious Certificate in Company Direction the Punjab, Lahore. He has a rich experience working as the Regional
from the Institute of Directors (IoD), UK. Managing Director & CEO for Southern Africa,
He was previously working as the CEO (Interim) for Barclays Bank PLC. Prior to Africa, he was also
He is an IFC Certified Trainer on Corporate Governance InfraZamin Pakistan, which will be the first of its kind responsible for establishing one of the prime global
and is a member of the faculty of the PICG. He serves credit enhancement for a social infrastructure financing Islamic banking franchises – Dubai Islamic Bank - in
on the Board of Directors of several publicly listed & company in Pakistan. He was also engaged as a Consultant Pakistan. At Citibank, he was a member of the
private limited companies. He is also the past President with Karandaaz Pakistan on National Savings and as a Country Management Committee and responsible for
of the Rotary Club of Karachi, the largest and oldest Senior Advisor with Capital Resource - a Corporate handling Government and Public Sector business. He
Rotary Club in District 3271, and is a member of the Finance and Advisory Services Company. was involved in all the major deals done by Citibank
managing committee of the Karachi Boat Club and between 1999-2005. He also joined American Express
member of the Board of Governors of the Karachi Formerly, he has worked as Director General - Bank Pakistan as Management Trainee. Being the
Council on Foreign Relations. Mr. Zamindar National Savings, Ministry of Finance. Being a member trainee, he was appointed member of the Country
attended the World Economic Forum at Davos, of the Board of Directors of the SBP, he has served as Capital Markets Taskforce, implemented special
Switzerland in January 2019 as part of the a member of the Independent Monetary Policy initiatives/projects of bonding business and launched
Pakistan private sector delegation. Committee of the Government of Pakistan. He was a corporate business in the peripherals of Lahore city
also the Chairman of Publications Review and Member (Sialkot, Gujranwala, Gujrat, etc.)
of Human Resources and Investment
Sub-Committees of SBP.
He served as a Member of the Board of Directors and

Chairman of the HR Committee of Oil and Gas

chairman’s
review
The Board comprises of competent and proficient leaders with
expertise in diverse fields of the corporate world.
The Board devises all major policies and strategies to During the year, the Board recommended and approved
efficiently and effectively manage the Company and is among other things:
adamant about promoting and enabling innovation
within the Company. The governance of the Board is in • Routine BMR;
accordance with the relevant laws and regulations, and • Quarterly and annual financial statements;
its obligations, rights, responsibilities, and duties are as • Internal audit and audit committee reports and findings;
specified and prescribed therein. • Appointment of external auditors; and
• Distribution of dividends.
During the financial year 2019-2020, four board
meetings were conducted. The Board, as per its Accordingly, the Board completed its annual
practice, strictly monitored its own performance along self-evaluation for the year 2020, and I am pleased
with the performance of its sub-committees. to report that the overall performance benchmarked
on the basis of criteria set for the year 2020,
The comprehensive and effective board meetings led to remained satisfactory.
conducive decisions for the Company, which also
helped the Company to take timely measures during
the COVID-19 pandemic. The Board ensures integration
of all policies conforming to the Company’s mission and
vision. In addition, the Board also ensures that the
Company acts in consonance with pertinent laws and
regulations, and the best industry practices. Muhammad Yunus Tabba
Chairman
The Board continuously strives to achieve the set
business goals and objectives and remains vigilant of Karachi: September 24, 2020
the Company’s financial performance. Oversight on
these measures was carried out on a consistent basis
through the presentations by the management and
auditors. The Board also keeps continuous supervision
of the following:
- Quality standards of its product.

- Stable and continual growth.
- Encouraging diversity and upholding ethical behavior.
- Development of skillful resources to attain
advancement and excellence.
56 I Gadoon Textile Mills Limited

directors’
report FY). The inflation rate has reduced primarily due to
recent deceleration in domestic food prices, a significant
During the year, the exports of the Country, which
witnessed an increase of 2.23% (in USD term) until March
decline in consumer price expectations, significant 2020, have decreased significantly in the fourth quarter
Dear Members the Company’s profitability by Rs. 889 million, out of fluctuation in global oil prices, and slowdown in external of this FY. Resultantly overall exports were reduced by
The Directors of your Company takes pleasure in which Rs. 303 million is unrealized. The net profit and domestic demand due to the COVID-19 pandemic. 6.81% (in USD term) in this FY as compared to SPLY.
presenting before you the financial results of your margin of the Company has accordingly reduced from However, the overall trade deficit has reduced by 27.12%,
Company for the fiscal year ended June 30, 2020. 3.80% to 0.16% as compared to SPLY. In light of the reduction in growth and inflation a decline in imports was also witnessed by 18.61% (in
expectations, the State Bank of Pakistan (SBP) has USD term). Moreover, inflows from remittance have also
Overview Corporate Restructuring recently, within a span of four months, reduced the increased by 6.36% (in USD term), thereby adding a
The principal business activity of your Company is the In the previous year, a Scheme of Arrangement discount rate by 6.25%, thereby bringing the discount positive impact on the Country’s foreign reserves.
manufacturing of yarn and knitted fabric. Further, the (Scheme) was filed by Lucky Holdings Limited (LHL) – rate to 7% on June 25, 2020, from 13.25%, which might
Company has also invested in the dairy segment, which an associate of the Company, before the Honorable prove helpful in reviving the economy.
started the commercial operations on June 30, 2019. Sindh High Court (SHC), after getting the required
To facilitate its customers and minimize the cost effect, approvals from the Board of Directors and shareholders Financial Results
the Company has strategically set its manufacturing of LHL. As per the Scheme, the LHL investment in ICI A comparison of the key financial results of the Company for the year ended June 30, 2020, are as under:
facilities in two regions, i.e., North and South. Pakistan Limited (ICIP) was divested, and shares of ICIP
were transferred to the existing shareholders of LHL in June 30, 2020 June 30, 2019 Favorable / (Unfavorable)
Profit or loss summary
The offtake during the year was very good until the first the proportion of their shareholding. (Rupees in '000) Percentage
nine months of this financial year, which shows a progressive Direct Export 8,640,883 8,345,846 3.54
growth of 11.09% in revenue. However, there has been Accordingly, the number of shares to which the Company
was entitled were transferred to Gadoon Holdings Indirect Export 9,263,094 - 100.00
a significant business disruption in the last quarter of
(Private) Limited (GHPL) - a wholly-owned subsidiary of Local 11,082,804 22,871,633 (51.54)
this financial year due to the COVID-19 pandemic, which
impacted the Company’s performance, and accordingly, the Company. Sales (net) 28,986,781 31,217,479 (7.15)
the Company’s revenue declined by 7.15% in this year Gross Profit 2,241,286 2,892,723 (22.52)
as compared to Same Period Last Year (SPLY). During the current year, GHPL had been merged into Finance Cost (909,080) (1,100,073) 17.36
the Company with effect from July 1, 2019, and all
Distribution Cost (474,356) (401,764) (18.07)
The Company was maintaining good gross profit margins necessary regulatory/legal requirements in this respect
Administrative Expenses (267,881) (276,997) 3.29
for the nine months ended mainly through better product have been complied with. Accordingly, this year the
Company is only preparing the standalone financial Other Operating Expenses (918,430) (98,767) (829.90)
mix, increased quantity, and better sales price, despite
the fact that during this year, on account of the inflationary statements. Other Income 666,178 653,335 1.97
impact, the conversion costs were on a higher side and Profit Before Taxation 337,717 1,668,457 (79.76)
in particular the gas prices have also increased from Economic Prospects Profit After Taxation 45,499 1,186,102 (96.16)
Rs. 600 per MMBTU to Rs. 786 per MMBTU w.e.f. July 1, The Pakistan economy, which has started fencing its Earnings Per Share (Rs.) 1.62 42.32
2019, which resultantly increased power cost. However, way towards stability on account of strict policy
on account of the COVID-19 pandemic, which resulted measures adopted by the Government, has been Before the ongoing COVID-19 pandemic, the Company had increased its sales both in terms of value and units during
in the closure of many factories/markets from the mid rushed into the burden again mainly on account of the the period compared to SPLY. The effects of COVID-19 were being witnessed on Pakistan’s economy since the start of
of March 2020, the Company’s sales were also slowed COVID-19 pandemic, which has impacted almost all the March 2020, after which the Company’s operations were curtailed, planned, and then resumed accordingly.
down, which not only increased the inventory levels/holding global economies. Even though the wheels of the
cost of the Company but at the same time, the market economy have now been started as the number of Despite the ongoing trade war among world economies, increased competition at national/international levels coupled
price of yarn has also decreased which resultantly recovered cases are increasing day by day by the grace with the impact of the COVID-19 pandemic, the Company had still managed to increase its export sales by 3.54% compared
impacted the gross profit margins of the Company which of Almighty Allah and accordingly, lockdown conditions to SPLY. However, on account of the significant decline in local sales in the fourth quarter of this FY, the overall local
reduced to 7.73% in this FY from 9.27% compared to SPLY. have been eased; still, the economy has to travel a lot sales for this FY were reduced by 11.04% compared to SPLY. Apart from the impact of the COVID-19 pandemic, the
to regain the momentum for recovery. local sales could have been increased if the Government and the businessmen (mainly traders) could have reached a
Further, during the year, the Company has been consensus on certain policy measures, including the resolution of the CNIC matter.
managing its working capital requirements using The inflation rate, which was on an increasing trend
foreign exchange borrowing on account of the stability since the start of this FY, has witnessed a decline in the Further, the withdrawal of SRO 1125(1) of 2011, w.e.f July 1, 2019, have also negatively impacted the local sales this year.
of the foreign currency and higher KIBOR rates, i.e., second half of this FY wherein the general inflation for
13.25% till March 2020. However, the abrupt devaluation June 2020, was recorded at 8.6% compared to 14.6% in
in the Pak Rupees starting from March 2020, affected January 2020, (the highest month-end inflation of this

The breakup of manufacturing cost is as follows: Despite the decrease in sales and profitability, the current tax expense for this FY has increased on account of an
increase in the rate of minimum tax from 1.25% to 1.5% of local turnover from July 1, 2019, having an impact of Rs. 28
million for this FY. Further, the withdrawal of tax credit on investments under section 65(B) of the Income Tax
1.20% Ordinance, 2001 from July 1, 2019, has also impacted the bottom line by Rs. 55 million of this FY.
3.21%
12.18% Resultantly, the net profits of the Company have decreased by 96.16% in this FY compared to SPLY.
Raw materials consumed
1.89% Salaries wages and benefits
2.50% Store consumed Segmental Review of Business Performance
Packing materials The operations of your Company are primarily divided into three operating segments:
7.24%
Power and fuel
- Spinning segment: manufacturing and sale of yarn
Depreciation
- Knitting segment: manufacturing and sale of knitted fabric
Others - Dairy segment: production and sale of milk
71.79%
The segment wise results of the reportable segment of the Company are as follows:
The significant portion of the cost of goods manufactured consists of Raw material, which is 71.79%, and power cost is Spinning Knitting Spinning Knitting
12.18%, which has always been the concern for the management to control. 2020 2019
(Rupees in '000)
In an effort to rationalize average production cost, management did procure wisely with a mix of local and imported Revenue 27,527,717 1,265,048 29,805,745 1,411,734
cotton. However, on account of the COVID-19 pandemic, just like many other industries, the textile industry was severely Profit/(loss) before tax (410,446) 254,839 777,774 326,616
affected, and accordingly, the local/global demand for clothes/yarn was reduced significantly. As the Company curtailed its
production in the fourth quarter of this FY, therefore the impact of under absorption of fixed overheads impacted the
gross profit of the Company. Status of Strategic Investments
During the current period, the Company decided to no longer proceed with the proposed investment in the Company’s
With regards to the power, the Company has placed efforts to generate maximum electricity using a cheaper source associated company, i.e., Tricom Wind Power (Private) Limited, as previously approved by the shareholders of the Company,
of inputs, i.e., Natural Gas over the Furnace oil and through maximum utilization of efficient generators. However, since pursuant to a re-evaluation carried out by the Company’s management, particularly in light of:
the gas prices have increased from Rs. 600 per MMBTU to Rs. 786 per MMBTU, w.e.f. July 1, 2019, the overall power
cost has increased in this FY compared to SPLY. • the abrupt increase in the interest rates, i.e., from 7% to 13.85%;
• the devaluation of the currency; and
The distribution cost has mainly increased on account of an increase in export sales. Further, the Company has been • the significant capital expenditure carried out during the year 2018-2019 on account of Balancing, Modernization,
able to control its administrative cost this year with an overall decrease in administrative cost compared to SPLY. and Replacement (BMR).
During the period the Company, in order to outweigh the higher KIBOR rates has shifted its working capital and CAPEX
Composition of the Board Audit Committee
The Board of Directors as at June 30, 2020 consist of: 1 Mr. Saleem Zamindar Chairman
requirements to other cheaper source of financing, including foreign exchange loans, and was able to keep its finance
2 Mr. Zafar Masud Member
cost at a quite manageable level with the decrease in finance cost by 17.36% in this year as compared to SPLY. However, the
Total number of directors 3 Mr. Muhammad Ali Tabba Member
benefits of saving in finance cost were outweighed by the devaluation in Pak Rupees starting from March 2020, which
a) Male 06 4 Mr. Jawed Yunus Tabba Member
resulted in an exchange loss of Rs. 889 million (realized: Rs. 586 million, unrealized: Rs. 303 million) to the Company on
b) Female 01
the foreign exchange loans and accordingly was a significant contributor for a decrease in net profits of the Company
Human Resource and Remuneration Committee
for this year compared to SPLY.
Composition 1 Mr. Saleem Zamindar Chairman
a) Independent Directors 02 2 Mr. Jawed Yunus Tabba Member
Although businesses were severely affected during the current year, the returns from the Company’s strategic
b) Other Non-Executive Directors 03 3 Ms. Zulekha Tabba Maskatiya Member
investments in diversified avenues were almost of the same level as compared to last year, thereby strengthening the
c) Executive Director 01
Company’s profitability and covering the Company from risk exposure from a specific segment.
a) Female Non-Executive Director 01 Budget Committee
1 Mr. Zafar Masud Chairman
Committees of the Board 2 Mr. Muhammad Ali Tabba Member
Following are the details of the members of each 3 Mr. Muhammad Sohail Tabba Member
committee: 4 Mr. Jawed Yunus Tabba Member

• Technological advancement making it more Company. The controls have been put in place to ensure
Attendance of Board Meetings and its Committees
challenging for the Company to compete on the the efficient and smooth running of the business,
Attendance national/international level. prevention, and detection of fraud and errors, safeguarding
S.No Directors Board of Audit HR and Remuneration • Declining export sales due to trade war and increased the Company’s assets, compliance with laws and
Directors Committee Committee competition at global as well as regional levels regulations, accuracy, and completeness of books of
1 Mr. Muhammad Yunus Tabba – Chairman 4/4 N/M N/M coupled with the impact of the COVID-19 pandemic. accounts, and timely preparation of reliable financial
• Currency volatility, abrupt Rupee devaluation, resulting information. Internal Financial Controls are periodically
2 Mr. Muhammad Sohail Tabba – CEO 4/4 4/4* 1/1*
in an increased cost of imported raw material. reviewed to ensure these remain effective and are
3 Mr. Muhammad Ali Tabba 4/4 4/4 N/M
• Rising trend of conversion, power cost on account updated with amendments in any laws and regulations.
4 Mr. Jawed Yunus Tabba 4/4 4/4 1/1 of increasing fuel/gas prices, and other
5 Ms. Zulekha Tabba Maskatiya 4/4 N/M 1/1 inflationary impacts. Health, Safety, and Environment
6 Mr. Saleem Zamindar 4/4 4/4 1/1 • Increasing KIBOR resulting in increased Being part of the most reputed group in the Country,
7 Mr. Zafar Masud 2/4 2/4 N/M financing costs. we feel responsible for the health and safety of not
• Withdrawal of Zero Rating for Five Export Oriented only our employees but also the people near our
* Mr. Sohail Tabba attended all meetings of the Audit and HR&R Committee, by way of invitation. Sectors having a negative impact on local sales factory premises. A dedicated clinic/dispensary is
N/M Not a member along with additional working capital requirements. managed by a qualified team where genuine medicine is
provided. We also ensure the compliance of our
Leave of absence was granted to directors who could not attend the Board and its Committee’s meetings. Change in the Nature of Business production facility with all the environmental
No significant changes have occurred during the FY standards. Waste heat recovery plant and investment
concerning the nature of the business of the Company. in green energy projects are one of the examples. Our
Remuneration Policy of Detail of Directors Remuneration production facility does not discharge any harmful
non-Executive Directors The Company has only one Executive Director, who is also
Pattern of Shareholding material. Moreover, we have strict compliance with
Through the Articles of the Company, the Board of Directors the Chief Executive of the Company. Following are the
The pattern of shareholding and additional information wastage and disposal.
is authorized to fix the remuneration of the Directors. In this details of remuneration paid to the Chief Executive of the
as at June 30, 2020, is part of the Annual Report of your
regard, the Board of Directors has developed a Company during the year:
comprehensive Remuneration policy for Non-Executive and
Company. Associated companies and public sector Corporate Social Responsibility (CSR)
2020 2019 companies own 69.57%, Banks/Insurance Companies/Mutual The Company remains conscious regarding its corporate
Independent Directors of the Company. As per the policy:
------- Rupees (in '000)------- Funds own 7.29%, Director’s own 0.07%, and individuals social responsibility. Hence, GTML is consistently
own 23.07% of the entire shareholding. involved in pro-social initiatives that deliver far-reaching
• The remuneration of the Board of Directors shall be Remuneration 12,210 13,200
results that can impact global issues.
market-based in accordance with their experience House rent 3,330 3,600
and competencies.
Repayments of Debts/Loans
Utilities 1,110 1,200 Your Company has an effective cash flow strategy in During the current year, the Company prioritized its
• The Company will not pay any remuneration to its Bonus - 1,875 place whereby inflows and outflows are projected and core value of being an environmentally conscious
non-Executive directors by way of salary except as
16,650 19,875 monitored on a regular basis. This comprehensive strategy entity. Endorsing the idea of a greener Pakistan, staff
meeting fees for attending the Board and its
has always empowered your Company in smooth members were provided tree saplings on account of
Committee meetings.
settlement of its financial commitments and hopes to Independence Day. Carrying forward the initiative, tree
• The remuneration of a Director for attending No remuneration has been paid to other Non-Executive
cater to any and every challenge that will come in its plantation drives in collaboration with different educational
meetings of the Board of Directors or its Directors of the Company except for a meeting fee of
way. In compliance with the above, the management institutes were executed throughout the year.
Committees shall be determined from time to time Rs.1.34 million (2019: Rs. 1.17 million).
has put constant endeavors to rationalize borrowing
and approved by the Board of Directors.
cost, which is done by managing a balanced portfolio of Enacting positive change towards community
• A Director shall be provided or reimbursed for all Principal Risks and Uncertainty sources of funds and efficient financing arrangements. development, a factory visit was organized for
traveling, hotel, and other expenses incurred by him Businesses face numerous risks and uncertainties,
students about to step into their professional life,
for attending meetings of the Board or its which, if not properly addressed, might cause serious
The Company has a practice of settling obligations on a briefing them on the norms of the textile industry.
Committees or General Meetings of the Company. loss to the Company. The Board of Directors of the
timely basis, and accordingly, there is no history of any Along with this, on the occasion of International Women’s
• Any Director who performs services which, in the Company has carried out a vigilant and thorough
default with respect to payment of debts, including Day, a session was conducted for senior management,
opinion of the Board, are outside the scope of the assessment of both internal and external risks that the
this year. shedding light on the benefits of gender diversity in the
statutory duties of a Director, may be paid such Company might face. Following are some of the risks
workforce. Further, the Company volunteers delivered
extra remuneration. which the Company is facing:
Adequacy of Internal Financial Control a similar message to a female gathering at a local
The effective system of internal financial control has community school, underlining the role an educated
been established by the Board of Directors of the female plays towards the society and the economy.

Director’s Training Further, the results of the steps taken by the exchange reserves at the end of August 2020, has Dividend Policy
The Directors of the Company are adequately trained Government and the SBP to revive the economy and to reached the highest level since January 2018). During the current year, since the operations of the
to perform their duties and are aware of their powers boost the confidence of investors including Company were curtailed on account of the COVID-19
and responsibilities under the Companies Act, 2017 concessional financing to companies that do not lay off As regards to the Company’s operations are concerned, pandemic, resultantly the profits have declined. Therefore,
and the Regulations of PSX Rule book. workers, one-year extension in principal payments, the management of the Company has always placed the Board of Directors of the Company has decided not
concessional funding to hospitals and medical centers strong efforts to sustain its cost through maximum to declare dividends this year, as this will help the Company
Auditors incurring expenses to combat the COVID-19 pandemic capacity utilization, cost rationalization, effective to reduce its borrowing, which has otherwise increased
The present External Auditors, M/s. Deloitte Yousuf including the targeted support packages for procurement strategy, etc. Accordingly, the Company is owing to an increase in working capital requirement.
Adil, Chartered Accountants have completed the low-income households, SMEs, and construction, will following its footprint to ensure that maximum wealth
annual audit for the year ended June 30, 2020, and now be visible as the Government is able to control the can be generated for the wellbeing of the Company’s Your Company remains committed to consistently provide
issued a clean audit report. The auditors will retire on spread of this pandemic at a quiet manageable level. shareholders. sustainable returns to the shareholders and it strongly
the conclusion of the Annual General Meeting of the Accordingly, this definitely would have a positive impact believes that the Company will be able to provide sufficient
Company and, being eligible, have offered themselves on the Country’s economy. In response to the increasing global demand for textile returns to shareholders in the upcoming years.
for reappointment. As proposed by the Audit Committee, products in the medical field, i.e., face masks, gowns, gloves,
the Board recommends their appointment as auditors The Government tax revenues, which have raised bed sheets, etc., the Sales and Marketing team of the Subsequent Events
of the Company for the year ending June 30, 2021. 17.5% during Jul-Feb FY20 as compared to Jul-Feb Company have catered to the demand of this sector. They There are no material changes and commitments
FY19, declined sharply in the last four months of this are further exploring avenues to increase their sales in affecting the financial position of the Company
Further, after November 15, 2020, the External Auditors FY, resulting in failure to meet the current year revenue this sector, which will accordingly support the Company’s between the end of the FY and the date of this report.
M/s. Deloitte Yousuf Adil, Chartered Accountants, would target. Further, the needed increase in spending by the bottom line and will generate positive cash flows.
undergo a change in status from a Member Firm to Government to support healthcare, businesses, Acknowledgments
Independent Correspondent Firm of Deloitte Touche households, and more vulnerable segments of society Further, it is also expected that significant CAPEX The Directors record their appreciation of the performance
Tohmatsu Limited as a result of which, the name of the owing to the COVID-19 pandemic, added an additional incurred by the Company in this period, including over of the Company’s workers, staff, and executives.
Firm will be changed. However, the Firm will continue to burden on the Government’s shoulders in this FY. the last couple of years, will help the Company to
serve as External Auditors by whatever name they adopt. Considering the current scenario, where there is still a sustain its cost and provide a competitive edge. For and on behalf of the Board
chance that a possible rise in infections could prompt
Future Outlook fresh lockdowns, and the economic recovery could
The severity of the COVID-19 pandemic, which has prove more sluggish than is currently being anticipated,
changed the fate of almost all the global economies, is the revenue target set by the Government for FY 2021
now on a declining trend, as globally, over 70% of the seems to be quite challenging. However, if achieved, it
infected have recovered with the recovery ratio can surely be the beginning of new chapters in the
increasing day by day. By the grace of Almighty Allah, Country’s history. The achievement by the FBR of the
the recovery rate in Pakistan is now over 95%. revenue target set for July and August 2020 is a
positive indication that the economy has again started
The COVID-19 pandemic had surely placed a great fencing its way towards stability.
challenge for the global community by reducing global
economic activities, and it may take more than It is also expected that the Government, in order to
Muhammad Yunus Tabba Muhammad Sohail Tabba
expected time for global economies to start to boost the economy and confidence of investors, would
Chairman Chief Executive Officer
normalize. Many countries have eased the lockdown continue its footprint in the coming year as well and will
scenario, and accordingly, businesses have started to timely release the sales tax refunds/income tax
Karachi: September 24, 2020
operate under the defined SOP’s, which surely will add refunds/DLTL claim, etc. (In FY 2020, FBR has issued
a positive impact on the world economy. refunds of Rs. 235 billion, which were Rs. 69 billion in
FY 2019 showing an increase of 340%).
The relief measures announced by G20 Countries, IMF,
World Bank, ADP, and other international agencies for It is also expected that on account of receipt of
the developing countries, including Pakistan to combat financial assistance from international agencies,
the impact of COVID-19 and the subsequent receipt in diminishing inflationary pressure on the economy, and
this respect, have helped the Country to provide expected projected official and private inflows, there
financing for targeted and temporary spending increases, would be a positive impact on the Country’s current
aimed at containing this pandemic and mitigating its account balance. Consequently, it is expected that the
economic impact. Rupee would continue its stability (the foreign

CEO’s
message masks, gowns, gloves, bed sheets, etc., including
for international markets. In addition to that, the
Company’s new site for the knitting segment, which
has become operational in the month of December
We incessantly strive to maintain industry leadership through 2019, will bring further value addition for the Company.
innovation and diversification, keeping the interests of our
Lastly, I express my gratitude to all the stakeholders
stakeholders as our utmost priority. who stood by our side during these challenging times.
Their unwavering support has led the Company to
Alhumdulillah, the financial year 2019-2020, marks ongoing trade war, increased competition at the achieve numerous milestones throughout the journey.
the thirty-second year of continuous operations of national/international level, and the COIVD-19 pandemic, The Company will continue to work towards
GTML. In the current year, we tried our level best to thereby adding positive impact on Country’s foreign excellence, which will strengthen and grow the
ensure the minimum possible impact of the COVID-19 exchange reserves. The Company also contributed bond we share.
pandemic on the Company’s progress, which was Rs. 1,303 million (2019: Rs. 476 million) in the National
made possible through the timely and strategic Exchequer on account of all kinds of duties and
decisions of the leadership and their team. taxes during the year.
After comprehensive scrutiny of the economic prospects Being a socially responsible corporate entity, the
and market review, it was observed that the Government’s Company continued its practice of investing in CSR
policy measures had set the Country on track of activities throughout the year. We believe in curtailing
economic stability. However, the COVID-19 pandemic negative impact on the society and continually improve
turned out to be the black swan event for the global our social footprint. Muhammad Sohail Tabba
economy, which changed the entire scenario. Chief Executive Officer
This year, the Company has received “PSX Top 25
The effects of the COVID-19 pandemic became Companies Awards for the year 2018” along with the Karachi: September 24, 2020
evident on Pakistan’s Economy from March 2020, and Best Corporate Report Award with third position in
accordingly, the Company’s operations were curtailed, the textile category at “Best Corporate & Sustainability
planned, and then resumed accordingly. Report Awards 2018” held by the Joint Committee of
the Institute of Chartered Accountants of Pakistan
During the year, the Company continued to invest in (ICAP) and the Institute of Cost and Management
new technological advance machinery and accordingly Accountants of Pakistan (ICMAP).
increased its production capacity in order to cater to
the increasing demand locally and internationally. Looking ahead, as the recovery ratio of COVID-19
However, owing to the COVID-19 pandemic, the increasing infected is increasing day by day and accordingly,
sales trend recorded since the beginning of the financial lockdown scenarios have been eased; therefore, it is
year dropped in the fourth quarter, leading to high expected that the Company will be able to operate at
inventory levels/holding costs, which, coupled with its full capacity and accordingly, both local/global
abrupt devaluation in Pakistani Rupees starting from demand of the textile products will increase.
March 2020, impacted the Company’s bottom line as
the Company had to incur the exchange loss of Rs. The management, in addition to curtailing the conversion
889 million (Rs. 303 million unrealized) on its foreign cost by identifying and implementing an efficient process
currency loan. to improve the Company's profitability, will also take
measures to contain its cost by procuring the right mix
Despite the fact that overall sales of the Company of raw material. Further, the Company will continue to
reduced in this year, the export sales increased by explore new markets for its products, especially the
3.54%, outweighing the negative impact of the textile products required in the medical field, i.e., face

Decision Taken by the Board and • The Board receives and reviews all compliance needs. • A Director shall be provided or reimbursed for all 4. CCG 2012 has made it mandatory for each company
Delegated to Management • The Board reviews adequacy of internal controls traveling, hotel, and other expenses incurred by him to have at least one independent Director. However,
The Board meetings of the Company are usually held and risk management procedures. for attending meetings of the Board or its Committees the Company has had an independent Director on its
quarterly to decide the matters requiring Directors’ • The Board has developed a strategy for the or General Meetings of the Company. Board since September 2010.
approvals. Further, if a decision on any matter is required organization that is central to its vision and • Any Director who performs services which, in the
on an urgent basis and is not practicable to arrange a mission statement. opinion of the Board, are outside the scope of the 5. The Company arranged a Directors Training Program
meeting, such matters are decided based on circular • The Board receives signals of potential issues that statutory duties of a Director, may be paid such for its two HODs in the previous year. However, as
resolution, duly signed by each Director, then may adversely affect the Company’s key targets or extra remuneration. per CCG 2019, the Company is encouraged to
presented in the next Board meeting for ratification. financial performance. arrange a Directors Training Program each year for
• The Board ensures that professional standards and Security Clearance of at least one HOD starting 2022.
The Board members ensure that they fulfill all corporate values are put in place that promotes Foreign Directors
responsibilities assigned to them as required under integrity for the Board, senior management, and The Board of Directors of the Company did not Diversity
applicable laws and regulations. Moreover, the Board employees in the form of the Company’s include any foreign Directors during the year. GTML works together to preserve a culture of
places more attention on strategic investments, Code of Conduct. diversity and inclusion. We work in collaboration and
business expansion, internal control & risk management, • The Board reviews reliable projections of future Governance Practice Exceeding respect the differences of the diverse workforce that
governance, review, and approval of policies. cash flows for the short and medium-term and is Legal Requirement include people of varying gender, ethnicity, national
confident that the available funding will enable the The Board of Directors of the Company ensures origin, caste, creed, age, religion, cultural background,
The Board also delegates its tasks to subcommittees Company to develop and operate as planned. adequate adherence with any new legal and regulatory languages, educational background, abilities, etc.
and the management and keeps follow up in Board requirements and ensures that the governance
meetings. The day to day operational matters and the mechanism prevents any event that can cause serious The Board lays particular emphasis on the fair
task assigned by the Board or its subcommittees are dealt Orientation Courses and financial and/or reputational loss to the Company. The treatment of employees irrespective of their background
with by the management in consultation with the CEO. Directors’ Training Program compliance team headed by the CFO actively monitors and restricts discrimination. Further, the management
The Company has arranged orientation courses for global best practices and takes all the necessary measures ensures that the talent hunt programs must reflect
the Directors and its senior management in the to ensure that the Company adopts the same. that we are an equal opportunity employer in all areas
Annual Evaluation of preceding years. that strives to embrace a work environment constructed
the Board’s Performance The Company, in the past, has proactively complied on the premise of gender and diversity equity.
As per Listed Companies (Code of Corporate No Directors Training Program has been held during with many additional legal requirements, which were
Governance) Regulations, 2019, the Board of the year as four out of seven Directors already meet not mandatory at that time. Some of the examples are: The management of GTML is also committed to promoting
Directors are required to carry out an annual the exemption criteria, and three Directors have already diversity in the workplace and female representation in all
evaluation of their own performance, members of acquired the required training in previous years. 1. Currently, the Board of Directors has one female departments, thus taking several initiatives to progress.
the Board and its Committees. Director. Previously from March 2013 to March
Policy for Remuneration to Directors 2019, there were two female Directors on the Board Related Parties
This year, the evaluation was carried out by the The Remuneration Policy applies to all non-executive of Directors of the Company. This requirement was Policy
Board of Directors of the Company, and results were Directors, including independent Directors who attend not mandatory in the past and has been introduced The objective of this policy is to set out the
found to be satisfactory. the Board and its Committee meeting. The policy for the by CCG 2017, which requires each listed company to framework for the transactions between the
Remuneration of Directors, including the members of have at least one female Director. Company and its related parties based on the
Following major criteria are used to measure the senior management, has been framed considering all the applicable laws and regulations.
Boards own performance and its Committees, applicable laws and regulations. As per the policy: 2. Chairman of the Board and Chief Executive Officer
including the CEO and the Chairman: of the Company are separate persons since May As per the policy, the management must ensure that
• The Company ensures that the remuneration of the 2005. This requirement was introduced by CCG 2012. all the necessary details concerning related party
• The Board demonstrates integrity, credibility, Board of Directors remains market-based in transactions must be sent to the Audit Committee
trustworthiness, and active participation in its affairs, accordance with their experience and competencies. 3. The Company has a past practice to get all the related and Board of Directors at least seven days prior to
and has the ability to handle conflict constructively. The Company will not pay any remuneration to its party transactions approved from shareholders since the Board meeting and ensure that the following
• The Board provides guidance and direction, rather non-executive Directors by way of salary except as 2014, as the majority of Directors of the Company steps must be complied with in order to finalize the
than management to the Company. meeting fees for attending the Board and its are deemed interested in such transactions on account review and approval of related party transactions:
• The Board reviews management succession Committee meetings. of their common Directorship. The same practice
planning as needed. • The remuneration of a Director for attending has now been made mandatory by the Companies • The details of all related party transactions shall be
• The level of communication between the Board and meetings of the Board of Directors or its Act, 2017 and CCG 2017. In addition to that, the placed before the Audit Committee of the Company,
relevant parties (i.e., committees, auditors, Committees shall be determined from time to time Company has been providing additional details in and upon recommendations of the Audit Committee,
management and business heads, etc.) is appropriate. and approved by the Board of Directors. related party disclosure in the financial statements the same shall be placed before the Board for review
for many years, in order to ensure transparency. and approval.

• The related party transactions which are not directly or indirectly becomes interested in related Investors’ Grievance Policy
executed at arm's length price also be placed party transaction due to Group's structure;
separately at each Board meeting along with accordingly, additional approval from shareholders The grievance is defined as any complaint, problem, or concern of the affected
necessary justification for consideration and in respect of transactions with a related party shall person. This policy’s objective is to safeguard and protect investors/shareholders’
approval of the Board on the recommendation of be obtained at the beginning of each year in the
interest by handling their grievances.
the Audit Committee of the Company. Annual General Meeting so that the Company can
• The Board of Directors of the Company shall approve carry its business smoothly. The management is committed to ensuring that grievances • The Company’s employees work in good faith, and
the pricing methods for related party transactions • The records in respect of transactions with a notified by the investors are handled and resolved efficiently investors are informed of avenues to raise their
that were made on the terms equivalent to those related party shall be kept minimum for the period without any discrimination, at an appropriate level within the queries and complaints within the organization and
that are prevalent for arm’s length transactions, of 15 years or such longer time as required by shortest possible time. The Company’s Grievance policy their rights if they are not satisfied with the
only if such terms can be substantiated. The relevant laws and regulations. follows the following principles: resolution of their complaints.
preferable pricing method for the transaction with • Appropriate remedial action is taken immediately to
related party shall be the Comparable price method. The detailed disclosure regarding transactions with • Queries and complaints are treated efficiently, fairly, ensure avoidance in the future.
• During the review and approval of related party related parties has been disclosed in note 37 of the confidentially in a courteous manner.
transactions, if the majority of the Directors financial statements.
approving any transaction are interested and the
transaction is not carried on an arm-length basis, Details of Board Meetings Safety of Records
then this matter shall be placed before the general Outside Pakistan
meeting as a special resolution. During the year, no board meeting was held The Company has implemented stringent controls to ensure that the records
• In case if the majority of the Directors either outside Pakistan. maintained are not only in compliance with the standard procedures but are also
stored in a way that ensures their safety along with the timely retrieval of data
Conflict of Interest when required.
In order to ensure the safety of records, the Company ensures the security of the Company’s sensitive
The Company believes in handling actual or perceived conflict of interest has adopted the following measures: documents.
constructively. Conflict of interest is a situation that has the potential to undermine • Efficient disposal of records and information when it
the impartiality of a person because of the possibility of a clash between the • Introduction of the ‘paperless environment’ initiative is no longer required.
person’s self-interest and professional or public interest. in the past under which all the records and relevant
documents are being scanned so that they are The Company has so far scanned more than 3 million
All employees are directed to avoid situations where • Staying away from any kind of actual and available electronically, addressing the safety and documents that have reduced paper consumption,
there is a possibility of conflict. An inability to conform perceived conflict. time-bound concerns of records. markedly, as the access to print these scanned
to these ethical policies may render an individual at risk • Imparting the conflict to the stakeholders. • Implementation of precautionary measures such as documents are also controlled.
of disciplinary action, even subsequent dismissal in an • Enforcement of strategies to handle conflict of interest. fire-extinguishers and fire-resistant measures
instance where a severe breach occurs.
Further, the Directors are also reminded on a periodic
Management of Conflict of Interest basis to avoid actual, potential, or perceived conflict of
The conflict of interests is managed and monitored in interests and to excuse themselves from any
the following ways: discussion on the matter that would give rise to a
conflict of interests.
• Instructing employees about managing and avoiding
conflict of interest.

IT
governance Review by the Board of the Business
Continuity and Disaster Recovery Plan
the Company and the relevant strategies in place to
mitigate them.
It is vital for companies to have a backup plan for
In today’s highly competitive and dynamic environment, companies must align disaster, as no one can really predict when they will In this fiscal year, on February 22, 2020, a successful
themselves with modern times’ advancements. Today’s technology not only helps strike. We have developed a dedicated BCP BCP drill was held. We believe that in any unfavorable
event, our system will be up for use and will be fully
in precise dissemination and accurate presentation of information but, in particular, infrastructure at our backup location.
operational, thus fulfilling international standards of BCP.
saves time and cost.
The Board of Directors periodically monitors the
Business Continuity and Disaster Recovery of the Our forward-thinking and proactive approach of the
In this regard, we at GTML have consistently developed three months. Redundant VPN connection between IT team helped the Company to smoothly transit to the
Company for the smooth functioning of the systems
and monitored our IT framework and ensured that the production units and dedicated extended power new normal and continue business operations post
and servers and for the prevention of any unforeseen
systems implemented effectively help in storing, supply for Centralized Data Center has been deployed COVID-19 pandemic.
adversary. Further, the Board is also involved in
safeguarding, retrieving, and sharing of information. to mitigate the risk of a single point of failure.
continuous monitoring of the risks which is exposed to
We have a team of talented individuals, who have
been working tirelessly to make sure that the methods Data Security
adopted and implemented by the Company are in line The organization’s data security always remains our
with the best practice of the industry. top priority. The secured VPN connections between
various locations through a physical firewall ensures
The Company has formed an IT Steering Committee data integrity and security. VPN infrastructure
comprising senior executives to review and approve IT significantly contributed to the current COVID-19
strategic plans, oversee major initiatives, govern all IT pandemic situation by facilitating our staff members
policies, and allocate resources appropriately. The to manage the work-from-home strategy efficiently.
committee meets quarterly and mainly focuses on;
Company’s Web Portal
• Ensuring the organization’s IT resources are We are continually working on the strategy to minimize
utilized effectively; physical papers in routine work. Our Document
• Identifying and managing risks; Management System is playing a vital role in facilitating
• Aligning the IT service objectives with our approach to a paperless environment.
business objectives;
• Deploying Business Continuity Management GTML initiated the Employee Self Service (ESS) Web
including Disaster Recovery; and Portal project in January 2020 and launched its 1st
• Implementation of IT governance. version in May 2020. The ESS system has been
dedicated to employees and will significantly reduce
Major Projects During the year the usage of physical paper in employee-related
transactions. ESS system is mainly focused on:
Centralized Database
Considering the rapid growth of organization data at • IT Help Desk
respective production units, there was an immense • Employee Attendance Record
need to centralize the database for data security, • Follow-up
integrity, consistency, and operational efficiency. • Approval workflow
• HR Policies
The project was initiated in the first quarter of the • Notifications and General Announcements
current year and was successfully implemented within

whistle human resource
blowing policy excellence
This policy sets out guidelines to encourage individuals if they believe or have Organizations cannot build a proficient team of working professionals without an
discovered malpractice or impropriety in the activities of the Company. effective Human Resource. As the pace of business accelerates and competition
strengthens, companies are antagonized with greater uncertainty and intricacy.
The Company is committed to the highest standards of The investigation committee comprising of
openness, honesty, and accountability. In line with its independent members would work under the While facing such contests, our human resource has • Ensuring Gender Diversity/Non-Discriminatory
commitment, the Company encourages employees supervision of the CEO. Members of the committee the potential to be a crucial asset by ensuring that the work environment.
and/or third parties (suppliers, customers, dealers, would be changed depending on a case to case basis. Company has the desired human capital to compete • Providing a safe, secure, and healthy
etc.) with serious concerns about any aspect of the and the ability to react fast to changing environments. working environment.
Company’s work to come forward and blow the whistle All reporting shall be handled in a confidential manner. They are determined to take Company to new heights, • Encouraging effective & open communication.
on those concerns. It shall be ensured that the person raising the issue, if and this commitment helps us strive against the
not anonymous, is not targeted or penalized for raising impossible and try to break the benchmarks that we Succession planning is a continuous process which is
Employees and stakeholders of the Company are the matter in all circumstances. Confidentiality shall be have set in the industry over time. The wonderful designed to identify, evaluate and develop the potential
encouraged to raise concerns internally on malpractice maintained to the fullest extent possible. However, if relationship that we share with our employees is the employees from within the organization who would be
or impropriety. These concerns may include but not be the person raising the issue has acted with key reason why the Company has considerably low able to take up the leadership roles in future. The
limited to the following: false/malicious intent, disciplinary action may be taken employee turnover. purpose of this is to have a pool of talented and
against the person. competent employees who can replace anyone in a
• Financial malpractice or impropriety or fraud; Human Resource Management Policy leadership role. In this respect, the HR department
• Failure to comply with a legal obligation; Number of Incidences Reported The objective of this policy is to lay down salient adequately plans employee recruitment, on job
• Disclosure of confidential information within or No such incidences were reported to the Audit features of the Company’s philosophy with respect to training/sessions, job rotation and practical exposure
outside the Company; Committee during the year. its human resource management and its succession so that a person can easily fill the needed role.
• Deviation from full and fair reporting of the planning. As per the policy, the Human Resource
Company's financial position; department of GTML shall ensure the implementation Employee Engagement
• Dangers to health and safety or the environment; of the following practices: GTML always encourages the relationship between the
• Unlawful civil and criminal activity; organization and its employees. In order to empower
• Improper conduct or unethical behavior; and • Attract and retain top talent at all levels. employee bonding and teamwork, different activities
• Attempts to conceal any of these. • Performance-based/Market-based compensation & were planned during the year. Detail of some of the
benefit to be provided to all employees. activities are as follows:
All speak up shall be recorded, reviewed, and where • Performance evaluation of all employees shall be
appropriate, independently investigated and presented carried out on a periodic basis. Performance should Recreational Pakistan Tour
to the Audit Committee. Where possible, feedback shall be reviewed against the stated goals. This year also, the management of GTML planned a
be provided to the employee and/or third parties • Succession Plans for all critical positions to be recreational Pakistan tour for its employees. A total of
raising the concern. documented, with highlighted improvement areas. ten employees were selected through an electronic
• To develop strong bench strength and provide balloting system based on specific criteria for visiting
development opportunities through the northern areas of Pakistan, including Hunza,
cross-functional exposure. Naran & Kaghan. The fully paid trip was intended to
• On job Training & development to be provided create a team-building environment, which in return
to all employees. can have constructive effects on the overall work
• Responsibility matrix should be clearly defined. productivity of the employees. The employees had a
• High achievers shall be awarded. great time together, and they built strong bonding
• Code of Conduct should be disseminated to all with each other.
employees, and their adherence must be ensured.

Hajj Balloting whereby a session was carried out to highlight how Motivational Session the organization, and bringing about workforce stability.
Every Muslim wishes to visit the house of Allah to women add value to the workforce. Mr. Osama Iqbal GTML knows the value of learning and development programs
perform Hajj at least once in their lifetime. GTML Changi (HR Business Partner – NutriCo Pakistan) honored for its employees in re-energizing the team spirits and Session on IFRS 16
continued its tradition to act as a facilitator and turned us with his presence and delivered a short speech on unleashing the potential of the employees. A motivational The Company recognizes the importance of being updated
the dreams of four blessed employees into reality promoting gender diversity in the workforce. session was organized at our Gadoon Amazai Factory, KPK, on information and skills. GTML organized a training session
through the electronic balloting, thus fulfilling the in order to boost the efficiency and performance of the on IFRS16 at LuckyOne Mall. Mr. Daniel Syed (former Chair
commitment of regarding employees as a valuable asset. Considering the importance of the women’s role in the employees. The session was titled ‘Rise Beyond Yourself,’ ACCA Financial Services Network) updated the
society, we visited Street To School – STS on March 6, conducted by Mr. Ejaz Hussain – Facilitator of Sethi Learning Company’s professionals with the changes brought in the
2020, to create awareness among women on the and Company. The session played a pivotal role in encouraging accounting standards in light of IFRS16. The employees
importance of female education and encourage them to employees to make an impactful contribution in achieving found the session quite helpful and informative for their
become career-oriented. the Company’s goals, making employees loyal towards professional development.
Cricket Night
Cricket is everyone’s favorite game, and it’s one of the
best tools to keep everyone engaged and motivated.
GTML organized a night match for its cricket-crazy
employees at Kutchi Memon Cricket Ground Karachi.
This cricketing event helped reconnect employees with Training and Succession Planning KPI Development
the game and revitalized them after weeks of hectic Training is the key to improve employee’s performance
KPI Development is a domain that articulates what a business intends to accomplish in the long run and determines
schedules. The game gave players a sense of courage and to help them achieve the required level of knowledge
the consequential indicators of success. It is essential for effective managers to understand the importance of
to withstand the pressure of the field and perform with and skills needed for the job.
KPIs in tracking performance and navigating a way to growth. Considering the importance of the topic, GTML
boosted team spirit. The event was a great success,
organized a training session for the Head of Departments, titled as KPI development for Senior Management,
which was intended to create a better organizational In order to help them achieve those skills, the Company plans
which was conducted by Sethi Learning and Company.
culture and encourage physical activity in employees, to organize training activities both internally and externally.
thus promoting a healthy lifestyle. The training keeps the human capital motivated, thus
The sessions proved to be a comprehensive training program for managers in learning how to build, deploy, and sustain
creating value for the organization in the long run.
KPIs in alignment with the departmental and the Company’s objectives for improving organizational effectiveness and
operational efficiency. The next stage of this program will be implemented in the coming year.
This year also many training sessions were planned,
however on account of the COIVD-19 pandemic, some of the
sessions did not take place as planned. Details of some of the
training sessions are as follows:
Communication Skills Training

Realizing the importance of email communication,
GTML conducted a training session on email writing and
correspondence for its employees at DHA Suffa University.
Two sessions were conducted to equip employees with
proper email etiquette. The session was of great help
Women’s Day Celebration
to the employees and was purposed to make employees
At GTML, we strongly believe in creating a
learn to manage a professional image in email, create
non-discriminated workplace environment. With this zeal
clear, coherent, and concise messages, avoid personal
of promoting balanced and diverse workplace, we
emails, safeguard confidential information and respond
celebrated International Women’s Day on March 7, 2020,
timely yet effectively to incoming mails.

social and environmental
Talent Acquisition and Management
Keeping its past practice, the Company’s Talent
The HSE department of the Company has been
strengthened over the years by the hiring of thorough
responsibility policy
acquisition team, this year, also visited universities in professionals, with the main aim to ensure that GTML is
different job fairs to recruit potential candidates and compliant with all international standards. This will not The purpose of this policy is to set guidelines for GTML’s objective to achieve
strengthen the internal database. This provides fresh only portray a positive image of the Company but will sustainable protection of the environment, people, and planet through creating
also help in minimizing the calamities. Further, a
candidates with an equal opportunity to get hired on shared values for business and society.
market competitive remuneration packages. well-managed dispensary at both the locations is
maintained by the Company for the welfare of the
GTML is committed to creating a more equitable and • GTML shall ensure community development and
Under Student Facilitation Program, the students of employees, to ensure proper health and safety.
inclusive society by supporting processes that lead to uplift the standards of living of the masses through
universities, ACCA and CA backgrounds get the chance sustainable transformation and social integration. Our health, education, and environmental interventions.
to visit our factory premises and witness our Moreover, various security and surveillance cameras
primary focus of social responsibility is to craft • GTML shall support the development of quality
state-of-the-art production process. Also, the have been installed throughout our factory premises
business policies that are ethical, equitable, human resources in the Country by sponsoring
Company provided them with an opportunity to discuss and offices, which are regularly monitored by security
environmentally conscious, and gender-sensitive. GTML scholarship programs at leading
career propositions with HR and field professionals. personnel to address the security concerns (if any).
shall strive to ensure the highest quality for its universities/schools. Moreover, GTML shall
The students also met and designed their university Safety drills are regularly carried out to train and
products and customer services, with maximum support the provision of facilities/resources to
projects in collaboration with technical, sales & educate employees for emergency situations.
market outreach. GTML ensures that all social and such places of learning.
marketing, finance, and HR teams, which provided environmental dimensions are considered when • GTML shall provide free medical facilities through
them with hands-on corporate experience and developing its strategies, policies, practices, and welfare dispensaries located at plant sites.
strengthened their professional networking. procedures. • GTML also encourages its employees to share their
time and skills in a socially constructive manner for
Health and Safety Protecting the Environment the development of society.
At GTML, we have a strong commitment to ensuring In order to protect the environment, GTML shall:
that our employees work in a healthy and safe Our People
environment. When and if the need arises, we have • Meet or exceed the requirements of relevant GTML recognizes that its human resources are its most
contingency action plans and the capacity to deal with legislative, regulatory, and environmental standards. valuable asset, and it is committed to providing careers
such situations. • Identify, reduce, and dispose of waste arising from and working environments in which its people can
our operations in a manner that minimizes harm to achieve their full potential.
the environment and prevents pollution of land, air,
and water. • GTML is dedicated to protecting human rights
• Reduce the consumption of energy and water and through its “Code of Conduct” and the provision of
use renewable and/or recyclable resources equal opportunity to potential employees and
wherever practicable. exercises all fair labor practices.
• GTML shall ensure that its activities do not directly
Supporting the Communities or indirectly violate human rights at any of GTML’s
Sustainability and community development shall form a sites (e.g., forced labor, child labor, etc.). As a policy,
part of the Core Values at GTML. GTML does not hire minors as a workforce.
• GTML shall employ differently-abled persons
• As a responsible social entity, GTML shall provide wherever business requirements allow.
support to national and local charities or entities to • GTML shall make every reasonable and practicable
promote the cultural and economic development of effort to provide safe and healthy working
local communities. conditions in all its plants, sites, and offices.

beneficial ownership/ review report on the statement
group shareholding of compliance contained in listed
companies (code of corporate
Y.B. Holdings
(Private) Limited
governance) regulations, 2019
(Holding Company)
Independent Auditor’s Review Report to the Members of Gadoon Textile Mills Limited
We have reviewed the enclosed Statement of Compliance with the Listed Companies (Code of Corporate Governance)
69.57% Regulations, 2019 (the Regulations) prepared by the Board of Directors of Gadoon Textile Mills Limited (the Company)
for the year ended June 30, 2020, in accordance with the requirements of Regulation 36 of the Regulations.
The responsibility for compliance with the Regulations is that of the Board of Directors of the Company. Our
responsibility is to review whether the Statement of Compliance reflects the status of the Company’s compliance with
the provisions of the Regulations and report if it does not and to highlight any non-compliance with the requirements
of the Regulations. A review is limited primarily to inquiries of the Company’s personnel and review of various
documents prepared by the Company to comply with the Regulations.
Gadoon Textile Mills Limited
As a part of our audit of the financial statements we are required to obtain an understanding of the accounting and
internal control systems sufficient to plan the audit and develop an effective audit approach. We are not required to
consider whether the Board of Directors’ statement on internal control covers all risks and controls or to form an
opinion on the effectiveness of such internal controls, the Company’s corporate governance procedures and risks.
The Regulations require the Company to place before the Audit Committee, and upon recommendation of the Audit
Committee, place before the Board of Directors for their review and approval, its related party transactions. We are
only required and have ensured compliance of this requirement to the extent of the approval of the related party
transactions by the Board of Directors upon recommendation of the Audit Committee.
Investment in Associates Based on the 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 requirements contained in
the Regulations as applicable to the Company for the year ended June 30, 2020.
19.98%
7.21%
Chartered Accountants
1%
ICI Pakistan Limited Yunus Energy Limited Place: Karachi
Date: October 6, 2020
Lucky Holdings Limited

statement of compliance with
listed companies (code of corporate 11. CFO and CEO duly endorsed the financial statements before approval of the Board;
governance) regulations, 2019 12. The Board has formed committees comprising of members given below:
Committee
a) Audit Committee
Name of members and Chairman
Mr. Saleem Zamindar (Chairman)
Mr. Zafar Masud
Name of Company: Gadoon Textile Mills Limited (the Company) Mr. Muhammad Ali Tabba
Year ended: June 30, 2020 Mr. Jawed Yunus Tabba
b) HR and Remuneration Committee Mr. Saleem Zamindar (Chairman)
The Company has complied with the requirements of the Regulations in the following manner: Mr. Jawed Yunus Tabba
Ms. Zulekha Tabba Maskatiya
1. The total number of Directors are 7 as per the following:
a. Male: 6 13. The terms of reference of the aforesaid Committees have been formed, documented and advised to the Committee
b. Female: 1 for compliance;
2. The composition of the Board is as follows: 14. The frequency of meetings of the Committees were as per following:
Category Names Committee Frequency of meetings
a) Independent Directors Mr. Saleem Zamindar a) Audit Committee Quarterly
Mr. Zafar Masud b) HR and Remuneration Committee Annually
b) Other Non-Executive Directors Mr. Muhammad Yunus Tabba (Chairman)
Mr. Muhammad Ali Tabba 15. The Board has set up an effective internal audit function, and its members are considered suitably qualified and
Mr. Jawed Yunus Tabba experienced for the purpose and are conversant with the policies and procedures of the Company;
c) Executive Director Mr. Muhammad Sohail Tabba (CEO)
d) Female non–executive Director Ms. Zulekha Tabba Maskatiya 16. The statutory auditors of the Company have confirmed that they have been given a satisfactory rating under the
Quality Control Review program of the Institute of Chartered Accountants of Pakistan and registered with Audit
3. The Directors have confirmed that none of them is serving as a Director on more than seven listed companies, including this Company; Oversight Board of Pakistan, that they and all their partners are in compliance with International Federation of
Accountants (IFAC) guidelines on code of ethics as adopted by the Institute of Chartered Accountants of Pakistan
4. The Company has prepared a Code of Conduct and has ensured that appropriate steps have been taken to disseminate and that they and the partners of the firm involved in the audit are not a close relative (spouse, parent, dependent
it throughout the Company along with its supporting policies and procedures; and non-dependent children) of the Chief Executive Officer, Chief Financial Officer, Head of Internal Audit (Chief Internal
Auditor), Company Secretary or Director of the Company;
5. The Board has developed a vision/mission statement, overall corporate strategy and significant policies of the Company.
The Board has ensured that complete record of particulars of the significant policies along with their date of approval is 17. The statutory auditors or the persons associated with them have not been appointed to provide other services
maintained by the Company; except in accordance with the Act, these regulations or any other regulatory requirement, and the auditors have
confirmed that they have observed IFAC guidelines in this regard;
6. All the powers of the Board have been duly exercised and decisions on relevant matters have been taken by the Board/shareholders
as empowered by the relevant provisions of the Act and these Regulations; 18. We confirm that all requirements of regulations 3, 7, 8, 27, 32, 33 and 36 of the Regulations of the Listed Companies
(Code of Corporate Governance) Regulations, 2019 have been complied with, promulgated on September 25, 2019. The
7. The meetings of the Board were presided over by the Chairman and, in his absence, by a Director elected by the Board Election of Directors of the Company were held in March 2019, therefore, the Regulation 6 of the CCG regarding electing
for this purpose. The Board has complied with the requirements of the Act and the Regulations with respect to at least two (02) or one-third of members, whichever is higher as independent directors was not applicable at that time.
frequency, recording and circulating minutes of meeting of the Board; Compliance of the said regulation will be ensured in the next Election of Directors which will be held in the year 2022.
8. The Board have a formal policy and transparent procedures for remuneration of directors in accordance with the Act and
these Regulations;
9. All the Directors have acquired the prescribed certification under Directors’ Training Program specified and approved by
the Commission;
Muhammad Yunus Tabba Muhammad Sohail Tabba
10. The Board has approved appointment of Chief Financial Officer (CFO), Company Secretary and Head of Internal Audit (Chief Chairman Chief Executive Officer
Internal Auditor), including their remuneration and terms and conditions of employment and complied with relevant requirements of
the Regulations; Karachi: September 24, 2020

role of board
chairman and ceo committees
Principally, the Chairman is in charge of the Board’s leadership and guarantees that Audit Committee • Review of the scope and extent of internal audit,
the Board plays a compelling part in satisfying every one of its duties. In contrast, 1) Mr. Saleem Zamindar (Chairman) audit plan, reporting framework and procedures
2) Mr. Zafar Masud and ensuring that the internal audit function has
the Chief Executive Officer is an Executive Director and is responsible for acting as adequate resources and is appropriately placed
3) Mr. Muhammad Ali Tabba
the Head of the Company. within the Company;
4) Mr. Jawed Yunus Tabba
• Consideration of major findings of internal
The Roles and Responsibilities Shares held by Sponsors/ The Audit Committee comprises four members, investigations of activities characterized by fraud,
of the Chairman include: Directors/Executives including its Chairman. All members are corruption and abuse of power and management's
• Setting agendas for the Board’s consideration. The total number of shares held by Non-Executive Directors, while the Chairman and one response thereto;
• Leading the Board and discussing all proposals put sponsors/Directors/Associated Companies as of June member of the Committee are independent Directors. • Ascertaining that the internal control systems
forward by the executive team. 30, 2020, are 19,519,106, i.e., 69.64% of the total paid-up including financial and operational controls,
• Liaising and coordinating with subcommittee chairs. capital of the Company. The Committee held four meetings during the year. accounting systems for timely and appropriate
• Identifying and participating in the selection of the The attendance of each member is disclosed in the recording of purchases and sales, receipts and
Board members and overseeing a formal succession plan No shares are held by any executives of the Company. “Directors’ Report”. payments, assets and liabilities and the reporting
for the Board, CEO, CFO, and key senior management. structure are adequate and effective;
• Managing conflicts of interest and maintaining an The detailed breakup of shares has been mentioned in Terms of Reference • Review of the Company’s statement on internal
effective team. the section “Pattern of Shareholding” of this The terms of reference of the Audit Committee control systems prior to endorsement by the Board
• Ensuring that good relations are maintained with Annual Report. include the following: of Directors and internal audit reports;
the Company’s strategic stakeholders. • Instituting special projects, value for money studies
• To ensure that stakeholders’ trust and confidence is • Determination of appropriate measures to or other investigations on any matter specified by
maintained in the Company. safeguard the Company’s assets; the Board of Directors, in consultation with the
• Review of annual and interim financial statements CEO and to consider remittance of any matter to
of the Company, prior to their approval by the the external auditors or to any other external body;
The Roles and Responsibilities Board of Directors, focusing on: • Determination of compliance with relevant
of the CEO include statutory requirements;
• Serving as Chief Representative of the Company. • Major judgmental areas; • Monitoring compliance with applicable Code of
• Overseeing the business operations and • Significant adjustments resulting from the audit; Corporate Governance Regulations and
implementing the policies and strategies • Going concern assumption; identification of significant violations thereof;
recommended and approved by the Board. • Any changes in accounting policies and practices; • Review of arrangement for staff and management
• Closely monitor the operating and financial results of • Compliance with applicable accounting standards; to report to the audit committee in confidence,
the Company against plans and budgets on a • Compliance with other statutory and regulatory concerns, if any, about actual or potential improprieties
consistent basis. requirements; and in financial and other matters and recommend
• Ensuring that effective reporting mechanisms exist • All related party transactions; instituting remedial and mitigating measures;
within the organization to provide feedback at all • Recommend to the Board of Directors the
levels of management. • Review of preliminary announcements of results appointment of external auditors, their removal,
• Ensuring that the Company complies with all prior to external communication and publication; audit fees, the provision of any service permissible
relevant laws and corporate governance principles • Facilitating the external audit and discussion with to be rendered to the Company by the external
and that these principles are recommended and external auditors of major observations arising auditors in addition to the audit of its financial
adopted by the Board to mitigate key risks. from interim and final audits and any matter that statements, measures for redressal and
• Setting the tone in providing ethical leadership and the auditors may wish to highlight (in the absence rectification of non-compliance with the
creating an ethical environment. of management, where necessary); Regulations. The Board of Directors shall give due
• Review of management letter issued by external consideration to the recommendations of the audit
auditors and management’s response thereto; committee and where it acts otherwise it shall
• Ensuring coordination between the internal and record the reasons thereof; and
external auditors of the Company;

report of
• Consideration of any other issue or matter as may
be assigned by the Board of Directors.
Chief Executive Officer on such matters for key
management positions who report directly to the
audit committee
Chief Executive Officer or Chief Operating Officer;
Review of Terms of Reference and The Audit Committee comprises four members, including • The Audit Committee reviewed quarterly,
The terms of reference of the Committee may be • Reviewing the audit observations, if any, raised by its Chairman. All members are Non-Executive Directors, half-yearly and annual financial statements of the
revised and modified with the approval of the Board of the internal and external auditors of the Company while the Chairman and one member of the Committee Company and recommended them for approval of
Directors. relating to the HR function. are independent Directors. The Committee as a whole the Board of Directors. It has also reviewed preliminary
possesses significant economic, financial, and announcements of results prior to publication;
Human Resource and Review of Terms of Reference business acumen and all Directors qualify as • The Chief Executive Officer (CEO) and the Chief
Remuneration Committee The terms of reference of the Committee may be financially literate. Financial Officer (CFO) attended Audit Committee
1) Mr. Saleem Zamindar (Chairman) revised and modified with the approval of the Board. meetings by invitation;
2) Mr. Jawed Yunus Tabba The Audit Committee has concluded its annual review • The CEO and the CFO have endorsed the financial
3) Ms. Zulekha Tabba Maskatiya Budget Committee of the conduct and operations of the Company for the statements of the Company. They acknowledge
1 Mr. Zafar Masud (Chairman) financial year ended June 30, 2020, and reports that: their responsibility for a true and fair presentation
The Human Resource and Remuneration (HR&R) 2) Mr. Muhammad Ali Tabba of the Company’s financial statements, the accuracy
Committee comprises of three members. The 3) Mr. Muhammad Sohail Tabba • The Company has complied with the mandatory of reporting and compliance with Regulations and
Chairman of the Committee is an independent Director. 4) Mr. Jawed Yunus Tabba requirements specified under ‘The Listed Companies applicable accounting standards;
The Committee held one meeting during the year, (Code of Corporate Governance) Regulations, • The Committee has reviewed the Annual Report and
which was attended by all the members. The Budget Committee comprises four members. The 2019’ (Regulations); concluded that it is fair, balanced and understandable.
Chairman of the Committee is an independent Director. • The Company has issued a Statement of Compliance The Annual Report discloses and provides information
Terms of Reference with the Regulations which has also been reviewed to shareholders to assess the Company’s position
The terms of reference of the - HR&R Committee shall Terms of Reference and certified by the external auditors of the Company; and performance and its business model and strategy.
include the following: • To review and analyze the operational plans and • The Company’s Code of Conduct has been Similarly, it has also reviewed all related party
• Recommended to the Board for consideration and annual budgets especially for revenues, expenses disseminated across the organization; transactions carried out during the year, which were
approval a policy framework for determining the and capital expenditures as prepared by the • Appropriate accounting policies have been consistently subsequently approved by the Board;
remuneration of Directors and senior management, management, according to specified parameters applied except for the changes, if any, which have • The Committee regularly reviews the mechanism
preferably taking into consideration that such and to suggest any revisions before Board’s been appropriately disclosed in the financial for employees and management to report concerns
remuneration commensurate with the performance consideration/approval; statements. Applicable International Financial to the Audit Committee and ensures that any
of the Company and evaluation of the Board and • To recommend the budget for the Board’s approval; Reporting Standards were followed in the preparation allegations are scrutinized seriously; and
management (as applicable). The definition of senior • To review budget variance on a periodic basis; and of the financial statements of the Company on a • The Board has the practice to carry out the annual
management will be determined by the Board which • To recommend any matter of significance in relation going concern basis for the financial year ended evaluation of its committees and its members. The
shall normally include the first layer of management to the budget to the Board of Directors. June 30, 2020, which present fairly the state of results of the evaluation carried out were found
below the chief executive officer level; affairs, results of operations, cash flows and changes to be satisfactory.
• Undertaking a formal process of evaluation of the Review of Terms of Reference in equity of the Company for the year under review;
performance of the Board as a whole and its The terms of reference of the Committee may be • Accounting estimates are based on reasonable and Internal Audit and Risk Management
committees annually, either directly or by engaging revised and modified with the approval of the Board. prudent judgment. Proper and adequate accounting • The Chief Internal Auditor (CIA) attended the Audit
independent external consultant and if so appointed, records have been maintained by the Company in Committee meetings and also acted as secretary to
a statement to that effect shall be made in the accordance with the applicable laws, and the financial the Audit Committee;
Directors’ Report disclosing the name, qualifications reporting is consistent with management processes • The CIA has direct access to the Chairman of the Audit
and major terms of appointment; and adequate for shareholder needs; Committee, and the Committee has ensured staffing
• Recommending Human Resource Management • These financial statements have been prepared in of personnel with sufficient internal audit acumen;
policies to the Board; accordance with approved accounting standards • Internal Audit function plays a vital role in improving
• Recommending to the Board the selection, as applicable in Pakistan. Accordingly, approved the overall control environment of the Company;
evaluation, development, compensation (including accounting standards comprise of such International • The Internal Audit department carried out independent
retirement benefits) of Chief Operating Officer, Chief Financial Reporting Standards (IFRS) issued by the audits in accordance with an internal audit plan and
Financial Officer, Company Secretary and Chief International Accounting Standards Board as are reported functionally to the Audit Committee;
Internal Auditor; notified under the Companies Act, 2017 (the Act),
• Consideration and approval on recommendations of provisions of and directives issued under the Act. In
case requirements differ, the provisions of or directives
under the Act prevail;

• The Audit Committee reviewed the internal audit • The external auditors M/s. Deloitte Yousuf Adil, Chairman’s Significant Commitments In order to maintain social distance during the peak of
reports presented by the CIA, which encompasses Chartered Accountants have been engaged as the and any changes thereto the pandemic’s wave, the management decided to work
Audit findings, process improvement avenues, control external auditors of the Company since 2005 and The Chairman of GTML Mr. Muhammad Yunus Tabba with reduced staff, which was made possible through
weaknesses and recommendations. A risk rating have completed their audit assignment and review also serves LCL as the Chairman of the Board. Being alternate days and work-from-home strategy.
system is used on the basis of likelihood and impact of the Statement of Compliance with the one of the founding members of the YBG, he directs Moreover, employees were instructed to conduct
and as a result, high to the low-risk rating is Regulations. They shall retire on the conclusion of the two companies with his immense experience and meetings online and avoid unnecessary travelling.
assigned; and the 33rd Annual General Meeting; and commitment. Besides GTML and LCL, he does not have
• The Company’s system of internal controls is • Being eligible for reappointment as Auditors of the any significant commitment. Regular awareness sessions and informative emails
designed to manage and minimize the risk of not Company, the Audit Committee has recommended were circulated to employees regarding precautions to
achieving business objectives and can only provide the appointment of M/s. Deloitte Yousuf Adil, Pandemic Recovery be taken to stay safe. Posters were also placed
reasonable and not absolute assurance against Chartered Accountants as external auditors of the Policy Statement throughout the office and factory premise and were
material misstatement or loss. The Committee has Company for the year ending June 30, 2021. The Company prioritizes to adopt measures that would shared on social media platforms.
ascertained that the risk management and internal prevent the spread of the pandemic, which could impact
control systems including financial and operational the society as a whole. In case an employee experienced COVID-19 symptoms,
controls, accounting systems for timely and the Company provided them with testing facilities. If an
appropriate recording of business transactions and GTML aims to minimize the impact of the pandemic and employee tested positive for COVID-19, the employee
the reporting structure are adequate and effective. ensure that all stakeholders’ issues are addressed, and was granted a minimum of 14 days of paid leaves. For
Mr. Saleem Zamindar
business is maintained as usual without any hindrances this reason, departmental employees were
Chairman Audit Committee
External Audit for smooth operations of business activities. cross-trained in case the concerned staff could not
• The External Auditors were allowed direct access to perform their duties due to illness.
Karachi: September 24, 2020
the Audit Committee; Plan
• The Audit Committee has reviewed and discussed In light of the COVID-19 pandemic, the Pandemic Crisis
Key Audit Matters and observations with the Attendance in Annual General Meeting Management Team implemented a Pandemic Recovery
external auditors. The final Management Letter Mr. Saleem Zamindar (the Chairman of Audit Committee) Plan at each business unit of GTML. Measures such as
including such audit observations is required to be attended the Annual General Meeting of the Company disinfecting the office premises and vehicles on a daily
submitted within 45 days of the date of the for the year 2019 held on September 28, 2019, to basis, installation of a sanitizing tunnel and wall-mounted
Auditors’ Report on the financial statements as answer shareholders concerns/questions/queries, if any, on hand sanitizer dispenser, daily temperature checks at
required by the Code of Corporate Governance and audit committee’s scope, roles and responsibilities. entry-points, and distribution and use of face masks,
shall, therefore, accordingly be discussed in the next were adopted to ensure the health of, and minimize the
Audit Committee meeting; During the meeting, no significant issues were raised. spread among, the employees.

dreams
worth
enjoying
Performance and Position
enjoying
the dream
of a
lifetime
analysis of financial and key performance
non-financial performance indicators
Financial Performance Key Performance Indicators (KPIs) to measure Achievement against Objectives
Key Performance Indicators (KPIs) are the measurable values that determine the effectiveness and efficiency of
a) Financial Performance in comparison with Prior year b) Financial Performance in comparison with Budget achievement of the key business objectives. The Company has used the KPIs to evaluate the success of the business
During the year, the COVID-19 pandemic has The management has a practice of making yearly on reaching the targets. The business function of GTML evaluated through KPIs to measure achievement against
caused widespread business disruptions around budgets and monitor performance against the objectives has been detailed below:
the world, resulting in a negative impact on same. Deviation, if any, is bifurcated into controllable
economic activities, including our business, which and non-controllable factors in order to assess the Financial Indicators
was being planned, curtailed, and resumed effectiveness of teams responsible for setting the
accordingly. Even though the management was budget. For controllable factors, timely corrective % change % change
Revenue Operating Profit
maintaining good profit margins for the nine actions are taken. For non-controllable factors, risk
months ended mainly through better products mix, management policies are considered, and strategies
Rs. In million
28,987 2020 31,217 2019
-7.15% Rs. In million
1,247 2020 2,769 2019
-54.97%
increased quantity, and better sales price, however, are designed to minimize its negative effect.
on account of the COVID-19 pandemic coupled with
the abrupt devaluation of currency (starting from The Company’s sales and profits were almost in line
the month of March 2020) which resulted in an with the budgeted numbers for the first six months Profit Before Tax
% change
Profit After Tax
% change
exchange loss of Rs. 889 million on foreign

currency loan, the bottom line of the Company was
of this financial year. However, on account of
abrupt devaluation in Pakistani Rupees in the
Rs. In million
338 2020 1,668 2019
45 2020 1,186 2019
-96.16%
reduced to Rs. 45.50 million as compared to Rs. month of March 2020, as a result of which the
1,186.10 million in the previous year. Company had incurred the exchange loss on its
foreign-denominated borrowings coupled with the % change
% change EBITDA
The detailed analysis of the Company’s impact of the COVID-19 pandemic mainly in the EBITDA
performance in comparison to the previous year fourth quarter of this year, which affected the
Rs. In million
-36.55%
in %
7.80% 2020 11.41% 2019
-31.67%
has been reported in the section Financial Results gross margins of the Company, the overall sales
2,261 2020 3,563 2019
of Directors’ Report. Further details can also be and profitability decreased significantly from the
viewed in the section Horizontal/Vertical Analysis budgeted figures for the complete financial year.
% change
of this Annual Report. Equity
% change Return on Capital Employed
Rs. In million
-1.36%
in %
10.15% 2020 26.76% 2019
-62.06%
9,084 2020 9,209 2019
% change
Return on Fixed Assets
% change Earnings Per Share
in %
-96.65%
Rupees
1.62 2020 42.32 2019
-96.16%
0.45% 2020 13.33% 2019
% change % change
Market Capitalization Capital Expenditure
Rs. In million
4,471 2020 3,878 2019
15.30% Rs. In million
1,367 2020 2,839 2019
-51.85%
% change % change
Net Cash from Operating Activity SoP from Associates
Rs. In million
(1,884) 2020 986 2019
493 2020 488 2019
2.07%

Non-Financial Indicators Budget For financial indicators, the Company analyzes sales,
In addition to setting budgets for its financial indicators, gross profit, profit after tax, EPS, DPS, and market
the Company also places emphasis on its non-financial value of its share on a regular basis to gauge its
Capital Form Objectives KPI Monitored indicators and accordingly has allocated budget for performance.
the development of its Manufactured/Human/Social/
During the year the Company has expanded Relationship Capital for the upcoming year. The comparison of profit after tax to sales depicts
its knitting segment, and the new site had how much the Company is able to retain the
Investing in diversified businesses and become operational in December 2019. The management continuously monitors the above distributable profit for the provider of equity in
aiming to explore the untapped markets Further, the Company has also made an KPIs and significant deviations from previous year are comparison to its sales.
additional investments in the dairy segment, investigated for corrective actions to be taken.
which has started commercial operations Further, the Board also reviews these KPI on a The dividend payment indicates that how much the
from June 30, 2019. quarterly basis. The management anticipates these Company wants to retain the amount from the
Manufactured
KPIs to be relevant in the future in order to assess the distributable profits of shareholders for future
Capital Implementation of Centralized Database Company’s performance. business expansion/growth.
Implementation of innovative technology
and Employee Self Service Web Portal. Further,
and techniques
upgradation in Business Continuity Plan Methods and Assumptions used The Company also compares the market price of
(BCP) and use of Bio-Metric technology. in compiling the Indicators share with its book value to assess investors’
The Company uses different sets of methods and confidence in the script.
Significant CAPEX made during the year in assumptions while compiling its financial and
Sustain industry leadership
advanced technological machines. non-financial indicators. In addition, the Company also monitors cash flow from
operating activities access to its liquidity position and
Strengthening the HSE department and For compiling non-financial indicators, the Company working capital requirements.
Provide a healthy working environment for considers its market positioning, competitor’s
implementation of organizational safety
our employees strengths, employee’s capabilities, working
programs, especially w.r.t. sanitization and
health check measures in order to counter environment, and technological advancements.
the impact of COVID-19 pandemic.
Human Capital
Results of external/internal training
sessions were evaluated, and significant
Maintaining operational efficiencies
improvements in employees
technical/interpersonal skills were noted.
Participated in environmental sustainability

Encouraging best customs to support activities, including tree plantation. Further
Natural Capital
environmental sustainability also ensured efficient use of cotton for
manufacturing yarn.
Increase in export sales despite the

Financial Capital Sales maximization and global footprint
COVID-19 pandemic.
Social and Active participation in events and activities

Relationship Contribute effectively as a corporate entity for creating a corporate image and building
Capital a sense of shared values and mutual respect.
Operational efficiencies of the Company are

Achieve overall business synergies by maintained by utilizing the strength of high
Intellectual Capital maintaining operational efficiencies profile and skilled employees and along with
the upgradation of IT system.

six years graphical presentation of statement
at a glance of financial position and profit or loss
2020 2019 2018 2017 2016 2015 Total Assets Total Equity and Liabilities
-------------------------------------------- (Rupees In ‘000) --------------------------------------------
1.85% 1.87%
Assets Employed
0.07% 0.91%
Property, Plant and Equipment 10,165,007 9,870,359 7,791,928 7,447,694 7,727,013 8,322,228 0.28%% 0.22% 0.45%
0.40%
Biological Assets 190,214 129,665 - - - - 7.57%
Long Term Loans and Deposits 69,137 72,804 63,050 51,180 41,340 46,788
Long Term Advances - - - - - -
28.11%
Current Assets 17,258,436 14,342,045 12,600,632 10,028,260 9,132,266 10,281,321 32.97%
Long Term Investments 3,150,556 2,890,606 2,686,920 2,472,715 2,194,332 1,683,343
Total Assets Employed 30,833,350 27,305,479 23,142,530 19,999,849 19,094,951 20,333,680 40.09%
Equity and Liabilities

0.62%
Shareholder's Equity 9,084,358 9,209,433 8,213,510 7,366,723 6,533,605 6,817,519 0.13%
Long Term Finance 3,526,689 2,622,363 594,338 - - - 41.88% 11.44%
Current Portion of Long Term Finance 68,092 52,728 - - - 8,905 0.10%

3,594,781 2,675,091 594,338 - - 8,905 0.48%
2.04%
2.05% 10.22% 0.08%
Retirement Benefit Obligation 629,205 562,984 533,769 446,314 447,453 348,205 2.63%
13.56%
Deferred Tax Liabilities 810,001 890,390 696,275 668,382 642,313 648,707
Current Liabilities 16,783,097 14,020,309 13,104,638 11,518,430 11,471,580 12,519,249 Property, Plant and Equipment Trade Debts Issued, Subscribed and Paid up Trade and other
Capital Payables
Current Portion of Long Term Finance (68,092) (52,728) - - - (8,905) Biological Assets Loans and Advances
Capital Reserves Unclaimed Dividend
16,715,005 13,967,581 13,104,638 11,518,430 11,471,580 12,510,344 Long Term Loans Trade Deposit and Other
Short Term Prepayments Revenue Reserves Accrued Mark-up
Total Equity and Liabilities 30,833,350 27,305,479 23,142,530 19,999,849 19,094,951 20,333,680 Long Term Deposits
Long term Finance Short term Borrowings
Other Receivables
Long Term Investments Retirement Benefit Obligation Current Portion of Long
Turnover and Profit Current Tax Asset Term Financing
Stores, Spares and Loose Tools Deferred Tax Liabilities
Turnover 28,986,781 31,217,479 27,554,687 23,248,578 21,269,477 23,003,447 Cash and Bank Balances
Stock-in-Trade
Gross Profit 2,241,286 2,892,723 1,944,890 1,328,793 726,192 1,129,822
Operating Profit 1,246,797 2,768,530 2,048,328 1,427,539 357,012 701,200 Income Expense
Profit/(Loss) Before Taxation 337,717 1,668,457 1,473,646 1,084,938 (92,164) (90,281)
3.10% 0.99%
Profit/(Loss) After Taxation 45,499 1,186,102 1,185,296 806,986 (273,845) (392,334) 0.59% 1.66% 0.90% 3.07%
Cash Dividend - 238,251 434,459 140,148 - - 1.60%
Unappropriated Profit 6,939,188 7,064,263 6,068,340 5,221,553 4,388,435 4,672,349
Earnings Per Share (PKR) 1.62 42.32 42.29 28.79 (9.77) (14.00)
Book Value Per Share (PKR) 324.10 328.56 293.03 262.82 233.10 290.88
90.33%
97.75%
Turnover Other Income Cost Of Sales Finance Cost

Share of Profit from Associates Distribution Cost Other Operating Expenses
Administrative Expense Taxation

financial
ratios EBITDA to Sales Operating Leverage
12.00% 11.41% 35.00 32.23
Profitability Ratios 10.00%
10.11% 30.00
25.00
Percentage
UoM 2020 2019 2018 2017 2016 2015 8.00% 9.34% 20.00
Times
6.43%
GP to Sales Percentage 7.73% 9.27% 7.06% 5.72% 3.41% 4.91% 7.80% 15.00
PAT to Sales Percentage 0.16% 3.80% 4.30% 3.47% (1.29%) (1.71%) 6.00% 10.00 7.69
6.51
EBITDA to Sales Percentage 7.80% 11.41% 10.11% 9.34% 5.49% 6.43% 5.49% 2.35 2.65
5.00
4.00% (3.59)
Operating Leverage Times 7.69 2.65 2.35 32.23 6.51 (3.59)
0.00
Return on Equity After Tax Percentage 0.50% 13.62% 15.22% 11.61% (4.10%) (5.89%)
0.00% (5.00)
Return on Capital Employed Percentage 10.15% 26.76% 25.33% 20.54% 5.34% 10.50% 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020
Return on Fixed Assets Percentage 0.45% 13.33% 15.56% 10.64% (3.41%) (5.48%) Years Years
GP to Sales
10.00% Return on Equity After Tax Return on Capital Employed
20.00% 30.00% 26.76%
9.27% 25.33%
8.00% 7.06% 15.22%
15.00%
13.62% 25.00%
11.61%
Percentage
20.54%
5.72% 7.73%
6.00% 4.91% 10.00% 20.00%
Percentage
Percentage
4.00% 5.00% 15.00%
10.50%
0.00% 10.00%
2.00% 3.41% 0.50% 10.15%
(4.10%)
(5.00%) 5.00%
5.34%
0.00% (5.89%)
2015 2016 2017 2018 2019 2020 (10.00%) 0.00%
2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020
Years
PAT to Sales Years Years
5.00% 4.30%
3.80% Return on Fixed Assets
4.00%
3.47% 20.00%
3.00% 15.56%
15.00% Comments:
Percentage
2.00% Percentage 10.64% 13.33% The profitability ratios, which were on the increasing
10.00% trend for the last three years, have been affected in
1.00%
the current year, mainly on account of the COVID-19
0.00% 5.00% pandemic. The impact of the COVID-19 pandemic
0.16%
coupled with the abrupt devaluation of currency
(1.00%) 0.00%
0.45%
(3.41%) starting from March 2020, which resulted in an
(2.00%) (1.29%) exchange loss on foreign currency loans, impacted
(5.00%)
(1.71%)
(5.48%) the Company’s performance, which led to a decline in
2015 2016 2017 2018 2019 2020 (10.00%) the Company’s profitability.
2015 2016 2017 2018 2019 2020
Years Years

Liquidity Ratios Operating Ratios
UoM 2020 2019 2018 2017 2016 2015 UoM 2020 2019 2018 2017 2016 2015
Current Ratio Times 1.03 1.02 0.96 0.87 0.80 0.82 Inventory Turnover Times 2.51 3.57 3.89 4.04 4.09 4.13
Quick Ratio Times 0.22 0.38 0.35 0.33 0.30 0.39 No of Days in Inventory Days 145 102 94 90 89 88
Cash to Current Liability Times 0.01 0.01 0.01 0.01 0.03 0.04 Debtor Turnover Times 9.91 10.44 13.07 14.10 11.92 14.84
Cash Flow from No of Days in Receivable Days 37 35 28 26 31 25
Times (0.06) 0.03 (0.03) 0.06 0.06 0.07
Operation to Sales
Creditor Turnover Times 8.03 10.00 10.35 11.96 11.54 15.55
No. of Days in Payable Days 45 36 35 31 32 23
Operating Cycle Days 137 101 87 85 88 90
Current Ratio Quick Ratio Total Assets Turnover Times 1.00 1.24 1.28 1.19 1.08 1.26
Fixed Assets Turnover Times 2.85 3.51 3.62 3.06 2.65 3.21
1.20 1.02 1.03 0.50
0.96 0.39 Equity Multiplier Times 3.18 2.90 2.77 2.81 2.95 2.73
1.00 0.82 0.87 0.35 0.38
0.80 0.40 0.30 0.33
0.80
0.30 Working Capital Ratios (in Days) Turnover Ratios (in Times)
0.60 0.22
Times
Times
0.20 160 145

4.00
3.62 3.51
0.40 140 3.50 3.21
2.95 3.06 3.18
0.10 120 3.00 2.73 2.81 2.77 2.90 2.85
0.20 102 2.65
100 89 90 94 2.50
88
Times
0.00 0.00
Days
80 2.00
2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 60 1.50 1.26 1.28
1.19 1.24
Years Years 45 1.08 1.00
40 35 36 37
25 23 31 32 31 28
35 1.00
26
20 0.50
0 0.00
Cash to Current Liability Cash Flow from Operation to Sales 2015 2016 2017 2018
Years
2019 2020 2015 2016 2017 2018
Years
2019 2020
0.05 0.10 Days of Inventory Days of Receivable Days of Payable Total Asset Turnover Fixed Asset Turnover Equity Multiplier
0.07
0.04 0.06 0.06
0.04
0.05
Working Capital Ratios (in Times)
0.03 0.03
Comments:
0.03 25.00 The operating cycle of the Company was at quite a
Times
0.00
manageable level till the last year, which has
Times
0.02 20.00 significantly increased during the year mainly on

0.01 (0.03)
0.01 0.01 0.01 (0.05) 14.84
15.55 account of the COVID-19 pandemic, whereby on
0.01 15.00 14.10
13.07 account of a decrease in sales in the fourth quarter,
Times
(0.06) 11.92 11.54 11.96
10.35 10.44 10.00 9.91 inventory levels were on a higher side. Accordingly, the
0.00 (0.10) 10.00
8.03 overall operating cycle has increased to 137 days for
2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 the current year.
5.00 4.13 4.09 4.04 3.89 3.57
Years Years 2.51
Fixed assets turnover and total assets turnover have
0.00
Comments: 2015 2016 2017 2018 2019 2020
decreased on account of a decrease in sales, as
Liquidity ratios have been consistent over the years, mainly on account of strong working capital management Years discussed in the profitability ratio above.
policies. The current ratio of 1.03 as at June 30, 2020, is the highest since 2015. However, during the year, the quick
Inventory Turnover Debtor Turnover Creditor Turnover
ratio has decreased mainly on account of increased inventory levels as at June 30, 2020.

Market Ratios Price / Book Ratio Market Value
UoM 2020 2019 2018 2017 2016 2015 100.00% 500.00

86.00%
80.28%
EPS Rupees 1.62 42.32 42.29 28.79 (9.77) (14.59) 400.00 332.18
323.62
80.00% 315.00
Rupees
264.00
Price to Earnings Ratio Times 98.46 3.27 5.96 7.33 - - 300.00
Percentage
257.89
211.00 252.00
Price/Book Ratio Percentage 49.22% 42.10% 86.00% 80.28% 55.17% 56.64% 60.00% 200.00
164.76 153.20 159.51
49.22% 128.59 138.34
Dividend Yield Percentage - 6.14% 6.15% 2.37% - - 56.64% 55.17% 176.00
100.00 154.89
112.10
128.50 138.34 115.00
Dividend Payout Ratio Percentage - 20.09% 36.65% 17.37% - - 40.00% 42.10%
0.00
Dividend Cover Times - 4.98 2.73 5.76 - -
20.00% 2015 2016 2017 2018 2019 2020
Cash Dividend per Share Rupees - 8.50 15.50 5.00 - - Years
Book Value per Share as
0.00% Highest Share Price during the year
at June 30th Rupees 324.10 328.56 293.03 262.82 233.10 290.88
2015 2016 2017 2018 2019 2020 Market Value as at June 30th
Market Value per Share Years
as at June 30th Rupees 159.51 138.34 252.00 211.00 128.59 164.76 Lowest Share Price during the year
Highest Share Price during
the year Rupees 257.89 315.00 264.00 323.62 153.20 332.18
Book Value vs Market Value Dividend Ratio
Lowest Share Price during
the year Rupees 115.00 138.34 176.00 128.50 112.10 154.89
400.00 40.00% 36.65%
328.56
324.10
293.03
EPS vs DPS
Percentage
290.88
262.82
30.00%
233.10
Rupees
60.00 252.00
20.09%
42.32 200.00 20.00% 17.37%
42.29 211.00
40.00 164.76 159.51
28.79 128.59 138.34 10.00% 6.15% 6.14%
Rupees
0.00% 0.00% 2.37% 0.00%

20.00 15.50 0.00% 0.00% 0.00%
5.00
8.50
1.62 - 0.00%
0.00 0.00 2015 2016 2017 2018 2019 2020
0.00 2015 2016 2017 2018 2019 2020
0.00 Years Years
(14.59) (9.77)
(20.00)
Book Value per Share at as June 30th Dividend Payout Ratio
2015 2016 2017 2018 2019 2020
Years Market Value per Share at as June 30th Dividend Yield
EPS Cash Dividend per Share

Comments:
Earnings Ratio On account of political/economic stability, the PSX Index witnessed the growing trend from the second quarter of
98.46 this financial year till the month of March 2020, whereby owing to the COVID-19 pandemic, economic activities were
100.00
curtailed, and accordingly declining trend was observed in the PSX Index till the month of May 2020, whereby from
80.00 June 2020 onwards some positive indications were seen. Accordingly, the declining market price and profitability of
the Company have impaired the investment/valuation ratios of the Company for the current year.
60.00
Times
40.00
7.33 5.96
20.00 4.98
0.00 0.00 5.76 2.73
0.00 0.00 0.00
0.00 3.27
2015 2016 2017 2018 2019 2020
Years
Price to Earnings Ratio Dividend Cover

dupont
Capital Structure Ratios analysis
UoM 2020 2019 2018 2017 2016 2015
Degree of Financial Leverage Ratio Times 1.75 - 1.08 1.32 (0.62) 3.19 Return on
Equity
Weighted Average Cost of Debt Percentage 6.37% 9.54% 6.02% 3.77% 4.50% 8.78%
0.50%
Debt to Equity Ratio (Book Value) Percentage 39.57% 29.05% 7.24% - - 0.13%
Debt to Equity Ratio (Market Value) Percentage 80.40% 68.99% 8.41% - - 0.23%
Interest Coverage Ratio Times 1.37 2.52 3.56 4.17 0.79 0.89
Degree of Financial Leverage Ratio WAC of Debt Profit Margin Asset Turnover Equity Multiplier
0.16% 0.94 3.37

6.00 12.00% Percentage Times Times
8.78% 9.54%
10.00%
4.00 6.37%
Percentage
3.19 8.00% 6.02%

Profit for the year Sales Sales Total Assets Total Assets Equity
Times
2.00 1.75
1.32 6.00% 4.50%
1.08
3.77% 45.50 28,986.78 28,986.78 30,833.35 30,833.35 9,146.90
0.00 4.00% Rs. in Million Rs. in Million Rs. in Million Rs. in Million Rs. in Million Rs. in Million
0.00
2.00%
(0.62)
(2.00) 0.00%
Non
2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Current Assets Current Assets
Years Years
17,258.44 13,574.91
Rs. in Million Rs. in Million
Debt to Equity Ratios Interest Coverage Ratio

100.00% 5.00
80.40%
4.17
4.00 3.56
Percentage
68.99%
Times
50.00% 39.57% 3.00 2.52 Profit Margin Asset Turnover Equity Multiplier ROE
29.05% Years
0.23% 8.41% (A) (B) (C) AxBxC
2.00
0.13% 0.00% 0.00%
0.00% 0.00% 7.24% 0.89 0.79 2020 0.16% 0.94 3.37 0.50%
1.37
0.00% 1.00
2019 3.80% 1.14 3.13 13.62%
2015 2016 2017 2018 2019 2020
Years 0.00 2018 4.30% 1.19 2.97 15.22%
D to E (Book Value) D to E (Mkt Value)
2015 2016 2017 2018 2019 2020 2017 3.47% 1.16 2.88 11.61%
Years
2016 (1.29%) 1.11 2.86 (4.10%)
Comments: 2015 (1.71%) 1.13 3.05 (5.89 %)
The Company has further availed the long term finance facility in the current year to finance its new plant and
machinery, which has resulted in an increase in debt to equity ratio from 29.05% to 39.57%. Further, during the year,
on account of higher KIBOR rates, the Company has shifted its exposure to a cheaper source of finance, including
the foreign currency loan, and accordingly, this resulted in a decrease in WAC of debt in this year. Moreover, on
account of the decrease in earnings of the Company in this year, the interest coverage ratio has also decreased.

free cash economic
flow value added
2020 2019 2020 2019
(Rupees in ‘000) (Rupees in ‘000)
Cash (Used In) / Generated From Operations (1,883,820) 986,064 Net Operating Profit After Tax 954,579 2,286,175
Capital Expenditure Incurred - Net (1,297,566) (2,774,358) Cost of Capital (1,043,105) (869,303)
Free Cash Flow (3,181,386) (1,788,294) Economic Value Added (88,526) 1,416,872
Cost of Capital
1,500,000
Total Assets 30,833,350 27,305,479
1,000,000 986,064
Less: Current Liabilities (18,154,211) (15,420,955)
500,000 Invested Capital 12,679,139 11,884,524
WACC 8.23% 7.31%
-
Rupees in ‘000
Cost of Capital 1,043,105 869,303

(500,000)
(1,000,000)
(1,500,000) (1,297,566)
2,500,000 2,286,175
2,000,000
(2,000,000) (1,788,294) 1,416,872
(1,883,820) 1,500,000
954,579
Rupees in ‘000
(2,500,000) 1,000,000
500,000
(3,000,000) (2,774,358) (88,526)
-
(3,181,386)
(3,500,000) (500,000)
Cash (Used In) / Generated Capital Expenditure Free Cash Flow (1,000,000) (869,303)
From Operations Incurred - Net (1,043,105)
(1,500,000)
Net Operating Profit After Tax Cost of Capital Economic Value Added
2020 2019
2020 2019
Comment:
Despite the decrease in capital expenditure by Rs. 1.48 billion in this year as compared to the previous year, free Comment:
cash flow has decreased in the current year mainly on account of more funds being used in supporting working Economic value addition has fallen in comparison to last year, mainly on account of a decrease in operating profits.
capital requirements, which have increased owing to the COVID-19 pandemic. Further, WACC has increased mainly on account of an increase in the KSE All Index over the period in comparison to
the previous year.

horizontal
analysis Horizontal Analysis of
Total Assets
Horizontal Analysis of
Total Equity & Liabilities
140.00%
123.40%
Statement of Financial Position - Horizontal Analysis 40.00% 36.07% 120.00%
30.00% 25.65% 100.00%

22.97%
Percentage
Percentage
20.33%
2020 2019 2018 2017 2016 2015 80.00%
20.00% 63.67%
vs vs vs vs vs vs 60.00%
18.21% 9.81%
2019 2018 2017 2016 2015 2014 10.00% 13.82%
43.37%
(0.89%) 40.00%
Assets 40.82% 21.84%
0.00% 5.72% 4.72%
20.00% 12.75% 13.77% 12.13%
Non Current Assets 0.09% 9.31%
19.71%
Property, Plant and Equipment 2.99% 26.67% 4.62% (3.61%) (7.15%) 38.77% (10.00%) 0.00% 4.89% 2.29%
11.49%
6.99%
(4.16%) 0.41% (1.36%)
(11.18%)
Biological Assets 46.70% 100.00% - - - - (20.00%) (8.37%)
(20.00%)
Long Term Advances - - - - - - 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020
Long Term Loans (9.26%) 23.62% 50.50% 44.18% (25.42%) 100.81% Years Years
Long Term Deposits 1.30% 5.08% 0.05% 10.56% 0.41% 18.99%
Long Term Investment 8.99% 7.58% 8.66% 12.69% 30.36% 23.88% Non Current Assets Current Assets Net Equity Non Current Liability Current Liabilities
4.72% 22.97% 5.72% 0.09% (0.89%) 36.07%
Current Assets
Stores, Spares and Loose Tools 4.30% 10.42% 11.70% (4.68%) (2.35%) 25.69% Comments on Statement of Financial Position - Horizontal Analysis
Stock-in-Trade 53.61% 12.55% 31.03% 10.72% 5.17% (14.11%) Fixed Assets
Trade Debts (33.68%) 42.76% 40.75% 13.13% (23.46%) 87.37% Fixed assets of the Company grew by 22.14% over the past six years due to continuous capital expenditure on
Loans and Advances (38.53%) (30.32%) 9.31% (2.15%) 15.14% (16.54%) innovative machines.
Receivable from Associates - - - - (100.00%) -
Short Term Investments - - - (100.00%) 26.76% 21.91% Long Term Investments
Trade Deposit and Other Short Term Prepayments 156.45% (72.42%) 82.55% (40.22%) 269.94% 96.12% Long Term Investments have increased over the years on account of investments in new associates and increasing
Other Receivables (20.85%) (24.86%) 3.23% 106.97% 19.81% 72.68%
Share of profits from associates.
Current Tax Asset (12.38%) 1.07% (8.63%) 0.29% 6.66% 7.93%
Sales Tax Refund Bond (100.00%) 100.00% - - - -
Stores, Spares & Loose Tools, Stock-in-Trade and Trade Debts
Cash and Bank Balance (23.46%) (40.42%) 15.21% (57.69%) (23.51%) 52.63%
20.33% 13.82% 25.65% 9.81% (11.18%) 18.21% Stores, spares & loose tools, and stock in trade have increased over the past six years on account of an increase in
operations and expansions. However, in the current year, trade debts have decreased due to a decrease in sales in
Total Assets 12.92% 17.99% 15.71% 4.74% (6.09%) 26.41% the last quarter of the financial year on account of the COVID-19 pandemic.
Equity & Liabilities Other Receivables

Issued, Subscribed and Paid-up Capital - - - - 19.59% - Other Receivables mainly include sales tax and rebate receivable. Sales tax refunds have shown both
Capital Reserves - - - - (84.10%) 738.67% increasing/decreasing trends over the years, and its recovery depends on multiple factors including but not limited
Revenue Reserves (1.42%) 12.78% 12.19% 13.62% 6.95% (7.20%) to funds available at the Government treasury, pending verification of sales tax claim by the sales tax department,
Total Equity (1.36%) 12.13% 11.49% 12.75% (4.16%) 4.89% status of the sales tax audit etc.
Non Current Liabilities During the last two years, other receivable has decreased mainly on account of receipt of sales tax refund and rebate.
Long Term Finance 34.49% 341.22% 100.00% - - (100.00%)
Retirement Benefit Obligation 11.76% 5.47% 19.59% (0.25%) 28.50% 59.48%
Share Capital and Reserves
Deferred Tax Liabilities (9.03%) 27.88% 4.17% 4.06% (0.99%) 38.58%
21.84% 123.40% 63.67% 2.29% 9.31% 43.37% Reserves grew over the past five years as the Company continues to make profits; however, in the current year, due
Current Liabilities to the decline in profitability of the Company, revenue reserves reduced by 1.42%. Moreover, the issuance of shares
Trade and Other Payables 12.99% 19.83% 11.12% 49.69% (5.04%) 74.19% in 2015-16 in pursuant to amalgamation also resulted in an increase in shareholders' equity.
Unclaimed Dividend 7.85% 2.13% 39.53% (0.50%) (0.37%) 36.67%
Accrued Mark-up (53.62%) 145.09% 48.09% 92.23% (65.96%) (5.84%) Long term Finance
Short Term Borrowings 24.53% 0.63% 14.23% (9.61%) (8.19%) 36.98% In order to avail the benefit of a reduced rate of financing, the Company this year also has obtained additional long
Current Portion of Long Term Finance 29.14% 100.00% - - (100.00%) (50.01%)
term financing facility for its new machines, which has resulted in an increase in long term finance.
19.71% 6.99% 13.77% 0.41% (8.37%) 40.82%
Current Liabilities
Total Liability 20.19% 21.21% 18.17% 0.57% (7.06%) 41.00%
The Company has maintained its current liability at a manageable level. Current liabilities mainly increased due to an
Total Equity and Liability 12.92% 17.99% 15.71% 4.74% (6.09%) 26.41% increase in short term finance to cater to increased working capital requirements.

Profit or Loss - Horizontal Analysis Horizontal Analysis of Expense
2020 2019 2018 2017 2016 2015
vs vs vs vs vs vs 800.00%
2019 2018 2017 2016 2015 2014
600.00%
Percentage
Turnover (7.15%) 13.29% 18.52% 9.30% (7.54%) 14.64% 400.00%
Cost of Sales (5.58%) 10.60% 16.83% 6.70% (6.08%) 20.62% 200.00%
Gross Profit (22.52%) 48.73% 46.37% 82.98% (35.73%) (41.53%)
0.00%
Distribution Cost 18.07% (8.13%) 56.28% (6.54%) (19.14%) 20.63%
Administrative Expense (3.29%) 23.52% 15.64% (10.10%) (4.92%) 97.03% (200.00%)
2015 2016 2017 2018 2019 2020
Operating Profit (32.29%) 72.52% 50.09% 305.08% (60.37%) (64.73%) Years
Finance Cost (17.36%) 91.42% 67.74% (23.73%) (43.25%) 7.01% Cost of Sales Distribution Cost
Other Operating Expenses 829.90% (38.80%) 80.73% 15.66% 253.60% (88.22%) Administrative Expense Finance Cost
Other Income 1.68% (61.98%) 61.77% 588.10% 65.25% 11.50% Other Operating Expenses Taxation
Share of Profit from Associates 2.07% 1.13% 24.23% 110.14% 10.14% 25.49%
Profit Before Taxation (79.76%) 13.22% 35.83% 1277.18% (2.09%) (112.21%)
Horizontal Analysis of Profit
Taxation (39.42%) 67.28% 3.74% 52.99% (39.85%) 90.75%
Profit for the Year (96.16%) 0.07% 46.88% 394.69% 30.20% (167.55%) 1400.00%
1200.00%
1000.00%
Percentage
800.00%
Horizontal Analysis of Income 600.00%
400.00%
200.00%
0.00%
600.00% (200.00%)
(400.00%)
500.00% 2015 2016 2017 2018 2019 2020
Years
Percentage
400.00% Gross Profits Operating Profit Profit Before Taxation Profit for the Year
300.00%
Comments on Profit or Loss - Horizontal Analysis
200.00% Turnover
Turnover increased over the years, mainly on account of aggressive marketing strategy, including identification of
100.00% new markets (locally and internationally) and widening product range, along with appreciation in market prices.
However, in the current year, on account of the COVID-19 pandemic, the turnover took a sharp decline in the fourth
0.00%
quarter, mainly due to a reduction in market demand.
(100.00%)
2015 2016 2017 2018 2019 2020 Gross profit
Years Steady increase in gross profit over the years shows the prosperous growth of the Company. The increase in gross
Turnover Other Income Share of Profit from Associates profit was mainly attributable to the better market price of the product, along with procuring the right mix of raw
material at the most economical rates. However, in the last quarter of the current year, mainly on account of the
COVID-19 pandemic, gross profit decreased significantly.
Finance Cost
Finance cost, which was on the increasing trend for the last two years, has shown a decline in the current year as
the Company has shifted its exposure to a cheaper source of finance, including the foreign currency loans, and was
accordingly able to reduce its finance cost.
Net profit
In addition to the declining gross profit in this year on account of the COVID-19 pandemic, the exchange loss of Rs.
889 million on foreign currency loan owing to the abrupt devaluation of Pakistani Rupees starting from March 2020,
impacted the Company’s net profit, which was on the increasing trend for the last four years.

vertical
analysis Vertical Analysis of Total Assets
100.00%
Statement Of Financial Position – Vertical Analysis
80.00%
2020 2019 2018 2017 2016 2015 50.56% 47.83% 50.14% 54.45% 52.52% 55.97%
Percentage
Assets
Non Current Assets 60.00%
Property, Plant and Equipment 32.96% 36.15% 33.67% 37.24% 40.46% 40.93%
Biological Assets 0.62% 0.47% - - - - 40.00%
Long Term Advances - - - - - -
49.44% 52.17% 49.86% 45.55% 47.48% 44.03%
Long Term Loans 0.13% 0.16% 0.15% 0.12% 0.09% 0.11% 20.00%
Long Term Deposits 0.10% 0.11% 0.12% 0.14% 0.13% 0.12%
Long Term Investment 10.22% 10.59% 11.61% 12.36% 11.49% 8.28% 0.00%
44.03% 47.48% 45.55% 49.86% 52.17% 49.44% 2015 2016 2017 2018 2019 2020
Years
Current Assets
Stores, Spares and Loose Tools 2.05% 2.22% 2.37% 2.46% 2.70% 2.60% Non Current Assets Current Assets
Stock in Trade 41.88% 30.79% 32.28% 28.51% 26.97% 24.07%
Trade Debts 7.57% 12.88% 10.65% 8.75% 8.10% 9.94%
Loans and Advances 0.40% 0.73% 1.24% 1.31% 1.41% 1.15% Vertical Analysis of Total Equity and Liabilities
Receivable from Associates - - - - - 4.86%
Short Term Investments - - - - 0.40% 0.29%
Trade Deposit and Other Short Term Prepayments 0.07% 0.03% 0.14% 0.09% 0.15% 0.04% 100.00%
Other Receivables 1.85% 2.64% 4.14% 4.64% 2.35% 1.84%
Current Tax Asset 1.87% 2.41% 2.81% 3.56% 3.72% 3.28% 80.00%
60.08% 57.60% 56.63% 51.35% 54.43%
Sales Tax Refund Bond - 0.41% - - - - 61.57%
Percentage
Cash and Bank Balance 0.28% 0.41% 0.82% 0.82% 2.03% 2.49% 60.00%
55.97% 52.52% 54.45% 50.14% 47.83% 50.56%
40.00% 5.70% 5.57% 7.88% 14.92% 16.11%
4.90%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 20.00% 36.83%
33.53% 34.22% 35.49% 33.73% 29.46%
Equity & Liabilities 0.00%

Issued, Subscribed and Paid-up Capital 0.91% 1.03% 1.21% 1.40% 1.47% 1.15% 2015 2016 2017 2018 2019 2020
Capital Reserves 0.44% 0.50% 0.59% 0.69% 0.72% 4.26% Years
Revenue Reserves 28.11% 32.20% 33.69% 34.74% 32.03% 28.12%
Total Equity 29.46% 33.73% 35.49% 36.83% 34.22% 33.53% Shareholder's Equity Non Current Liabilities Current Liabilities
Non Current Liabilities Comments on Statement Of Financial Position - Vertical Analysis

Long Term Finance 11.44% 9.60% 2.56% - - -
Retirement Benefit Obligation 2.04% 2.06% 2.31% 2.23% 2.34% 1.71%
Property, Plant and Equipment
Deferred Tax Liabilities 2.63% 3.26% 3.01% 3.34% 3.36% 3.19%
16.11% 14.92% 7.88% 5.57% 5.70% 4.90% Ratio of property, plant, and equipment to total assets has remained in line over the years. This is evidence of the fact that
Current Liabilities the Company places a strong emphasis on machineries and keeps itself regularly updated with the latest technological advancement.
Trade and Other Payable 13.56% 13.56% 13.35% 13.90% 9.73% 9.62%
Unclaimed Dividend 0.08% 0.08% 0.09% 0.08% 0.08% 0.08% Stock-in-Trade
Accrued Mark-up 0.48% 1.17% 0.56% 0.44% 0.24% 0.66% Ratio of stock-in-trade to total assets has remained in line over the years except for the current year, where a
Short Term Borrowings 40.09% 36.35% 42.63% 43.18% 50.03% 51.17% significant increase is witnessed, which is mainly attributable to a decrease in sales in the last quarter of this
Current Portion of Long Term Finance 0.22% 0.19% - - - 0.04%
financial year on account of the COVID-19 pandemic.
54.43% 51.35% 56.63% 57.60% 60.08% 61.57%
Total Liability 70.54% 66.27% 64.51% 63.17% 65.78% 66.47% Equity/Long Term Finance
The Company has started to obtain long term finance facilities from the year 2018, which has resulted in an increase
Total Equity and Liability 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% in long term finance percentage. Further, in the current year, in order to finance the additional working capital
requirements owing to increase in operating cycle as a result of the COVID-19 pandemic, the Company has also
availed additional short term borrowing facility. Resultantly equity has decreased on a percentage basis.

Profit or Loss - Vertical Analysis Vertical Analysis of Total Expense
2020 2019 2018 2017 2016 2015
1.28% 0.84% 1.20% 1.06% 1.57% 1.00%
Turnover 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
0.09% 0.35% 0.39% 0.59%
Cost of Sales (92.27%) (90.73%) (92.94%) (94.28%) (96.59%) (95.09%) 0.32%
98.00% 2.06% 1.48% 3.10%
3.36% 2.11%
Gross Profit 7.73% 9.27% 7.06% 5.72% 3.41% 4.91%
Percentage
0.99% 0.84% 3.59%
Distribution Cost (1.64%) (1.29%) (1.59%) (1.20%) (1.41%) (1.60%) 96.00% 1.21% 0.82%
0.96% 1.38% 1.60%
Administrative Expense (0.92%) (0.89%) (0.81%) (0.84%) (1.01%) (0.99%) 0.90% 3.07%
94.00% 1.57%
Operating Profit 5.17% 7.09% 4.66% 3.68% 0.99% 2.32% 1.31%
0.90%
Finance Cost (3.13%) (3.53%) (2.08%) (1.47%) (2.11%) (3.45%) 92.00% 94.88%
94.38% 93.82% 1.60%
Other Operating Expenses (3.17%) (0.32%) (0.59%) (0.38%) (0.36%) (0.09%) 92.74% 92.31%
90.00%
Other Income 0.60% 0.55% 1.63% 1.19% 0.19% 0.11% 90.33%
Share of Profit from Associates 1.70% 1.55% 1.73% 1.65% 0.86% 0.72% 88.00%
Profit Before Taxation 1.17% 5.34% 5.35% 4.67% (0.43%) (0.39%) 2015 2016 2017 2018 2019 2020
Taxation (1.01%) (1.54%) (1.05%) (1.20%) (0.86%) (1.32%) Years
Profit for the year 0.16% 3.80% 4.30% 3.47% (1.29%) (1.71%) Cost of Sales Distribution Cost Administrative Expense
Finance Cost Other Operating Expenses Taxation
Vertical Analysis of Total Income

Comments on Profit or Loss - Vertical Analysis
100.00%
0.72% 0.85% Gross profit
0.10% 1.61% 1.67% 1.51% 1.66%
99.00% 0.19% Gross profit of the Company has increased over the past four years in terms of ratio and amount as well. However,
this year on account of the COVID-19 pandemic, not only the holding cost of the inventory increased owing to
0.54%
Percentage
98.00% 0.59% decrease in sales but at the same time market price of yarn also decreased, which coupled with the under
1.16%
1.58% absorption of fixed overheads owing to the curtailment of production impacted the gross profit ratio of this year.
97.00% 99.18% 98.96%
97.95% Other Operating Expenses
97.75% The ratio of other operating expenses has sharply increased in the current year, mainly on account of the abrupt
96.00% 97.23%
96.75%
devaluation of the Pakistani Rupees starting from March 2020, which resulted in an exchange loss of Rs. 889 million
on foreign currency loans.
95.00%
2015 2016 2017 2018 2019 2020
Years Net profit
Net profit to sales has been highest in the year 2018, mainly on account of the availability of rebate on yarn and
Turnover Other Income Share of Profit from Associates reduced finance cost. Further, as discussed above, the COVID-19 pandemic had severely affected the economy as a
whole, which has also had a negative impact on the operations and results of the Company.

summary of
cash flow 2,500,000
1,826,106
2,000,000
2020 2019 2018 2017 2016 2015 1,503,863
1,500,000 1,271,568 1,315,073
(Rupees in '000)
986,064
Cash (Used In) / Generated From Operations (433,484) 2,059,299 (171,282) 1,985,767 2,122,687 2,679,748 1,000,000
683,156
500,000 271,059
Rupees in '000
Finance Cost Paid (1,079,707) (911,477) (532,519) (300,539) (537,535) (908,113) (8,963) (77)
-
Income Tax Paid (304,748) (293,314) (197,645) (260,236) (230,417) (170,369)
(130,846) (197,445)
Rebate Received 48,111 242,639 96,452 3,284 - - (500,000)
(579,273) (529,849)
Gratuity Paid (113,992) (111,083) (85,948) (113,203) (83,167) (97,403) (1,000,000) (852,240)
(890,942)
(1,450,336) (1,073,235) (719,660) (670,694) (851,119) (1,175,885) (1,080,487)
(1,500,000)
Net Cash (Used In) / Generated From
(2,000,000) (1,883,820)
Operating Activities (1,883,820) 986,064 (890,942) 1,315,073 1,271,568 1,503,863
(2,500,000)
(2,503,712)
Net Cash Used in Investing Activities (1,080,487) (2,503,712) (852,240) (197,445) (529,849) (579,273) (3,000,000)
2015 2016 2017 2018 2019 2020
Net Cash Generated From / (Used In)
Years
Financing Activities 683,156 1,826,106 271,059 (77) (8,963) (130,846) Net Cash (Used In) / Generated From Operating Activities
Net Cash Used In Investing Activities
Net (Decrease) / Increase In Cash &
Net Cash Generated From / (Used In) Financing Activities
Cash Equivalents (2,281,151) 308,458 (1,472,123) 1,117,551 732,756 793,744
Cash & Cash Equivalents At The Comments on Cash flows

Beginning Of The Year (9,212,428) (9,520,886) (8,048,763) (9,166,314) (9,899,070) (7,264,440)
Net Cash (Used In) / Generated From Operating Activities
Transferred from FTML as on
This year the Company’s net cash used in operating activities is Rs. 1.88 billion after payments of Rs. 1.49 billion in
October 1, 2014 on amalgamation - - - - - (3,428,374) respect of finance cost, gratuity, and income taxes. On account of the COVID-19 pandemic, not only the sales in the
Cash & Cash Equivalent At The End Of The Year (11,493,579) (9,212,428) (9,520,886) (8,048,763) (9,166,314) (9,899,070) fourth quarter were severely impacted, which accordingly impacted the cashflows, but at the same time, the
inventory levels were also increased, which resulted in blockage of additional Rs. 4.51 billion in stock in trade as
compared to the previous year. Thus, the overall cash flow from operating activities decreased.
Cash Used in Investing Activities

The Company's net cash used in investing activity over the years mainly represents the amount invested in the
purchase of machineries and related civil work.
Cash Generated from/(Used in) Financing Activities

The Company's net cash generated from financing activity is positive for the last three years, mainly on account of
receipt of long term finance. Moreover, over the years, the cash used in financing activities mainly includes dividend
payments to the shareholders.

statement of cash flows – quarterly
direct method performance analysis
2020 2019 Q1 Q2 Q3 Q4
(Rupees in ‘000) September 30, December 31, March 31, June 30,
2019 2019 2020 2020
A. CASH FLOWS FROM OPERATING ACTIVITIES
(Rupees in '000)
Cash Received from Customer 30,223,237 30,178,013
Cash Paid to Suppliers, Employees and Others (30,656,721) (28,118,714)
Sales - Net 7,492,083 9,332,038 7,894,435 4,268,225
Finance Cost Paid (1,079,707) (911,477) Cost of Sales (6,725,795) (8,417,034) (7,147,652) (4,455,014)
Income Tax Paid (304,748) (293,314) Gross Profit/(Loss) 766,288 915,004 746,783 (186,789)
Gratuity Paid (113,992) (111,083)
Rebate Received 48,111 242,639 Distribution Cost (119,462) (151,074) (136,927) (66,893)
Net Cash (Used In) / Generated From Operating Activities (1,883,820) 986,064 Administrative Expenses (73,260) (76,452) (72,645) (45,524)
(192,722) (227,526) (209,572) (112,417)
573,566 687,478 537,211 (299,206)
B. CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Property, Plant and Equipment (1,367,205) (2,839,346) Finance Cost (293,155) (228,382) (187,759) (199,784)
Sale Proceeds from Disposal of Property, Plant and Equipment 69,639 64,988 Other Operating Expenses (33,056) (34,816) (881,215) 30,657
Purchase of Animals (30,389) - (326,211) (263,198) (1,068,974) (169,127)
Sale Proceeds from Disposal of Animals 11,735 - 247,355 424,280 (531,763) (468,333)
Proceeds on Disposal of Share - 7,998
Other Income 42,143 47,120 24,156 60,229
Loans Repaid by / (Paid to) Employees 40 (8,743)
Share of Profit from Associates 182,459 113,534 63,771 132,766
Long Term Deposits Given (378) - 224,602 160,654 87,927 192,995
Profit Received from Bank Deposits 5,629 1,374 Profit Before Taxation 471,957 584,934 (443,836) (275,338)
Dividend Received 230,442 270,017
Net Cash Used in Investing Activities (1,080,487) (2,503,712) Taxation: (106,529) (131,679) (57,177) 3,167
Profit After Taxation 365,428 453,255 (501,013) (272,171)

C. CASH FLOWS FROM FINANCING ACTIVITIES
Long Term Finance Obtained 957,819 2,080,753
Earnings per share - basic and diluted (Rupees) 13.04 16.17 (17.88) (9.71)
Repayment of Long Term Finance (38,129) (9,844)
Dividend Paid (236,534) (244,803)
Net Cash Generated from Financing Activities 683,156 1,826,106 Comments on Quarterly Analysis
Net (Decrease) / Increase in Cash and Cash Equivalents (A+B+C) (2,281,151) 308,458 Sales
Quarter-wise sales of the Company has significantly varied over the year. Sales of quarter one have increased by
Cash and Cash Equivalents at the beginning of the year (9,212,428) (9,520,886)
17.53% as compared to SPLY, due to significant improvement in export sales with an increase of 95.41% as compared
Cash and Cash Equivalents at the end of the year (11,493,579) (9,212,428)
to SPLY. Whereas, the sales of second and third quarters also depicts the positive picture of this year with an
increase of 16.77% and 0.12% as compared to SPLY, respectively; despite the ongoing trade war among world
economies and increased competition at national/international levels.
Before the ongoing COVID-19 pandemic, the Company has increased its sales both in terms of value and units. The
adverse effects of the COVID-19 pandemic were being witnessed on Pakistan’s economy since the start of March 2020,
resultantly, the Company’s revenue declined by 52.4% in the last quarter of the financial year as compared to SPLY.

share price
Profitability:
Quarter-wise profitability of the Company has been turbulent over the year. Quarter one results showed a decline in
sensitivity analysis
net profits of the Company by 30.38% as compared to SPLY, mainly on account of increase in finance cost by 56.71%
(because of higher KIBOR rates) which negatively impacted the Company’s results. However, the results of quarter The share price of the Company depends on the Company’s overall performance and reputation in the respective
two outperformed all the quarters with an increase of Rs. 410.66 million in net profits as compared to SPLY, mainly industry in which it exists, combined with other external factors on which management has lesser or no control.
on account of increase in sales quantity as well as returns from the Company’s strategic investments in diversified
The Company’s share price is sensitive to the following uncontrollable external factors:
avenues. However, in the last two quarters, results were submerged. During this period, the Company in order to
outweigh the higher KIBOR rates has shifted its working capital and CAPEX requirements to other cheaper source Stock Market
of financing, including foreign exchange loans and was able to keep its finance cost at a quite manageable level with Company’s share price depends on overall market performance, investor confidence in the economy and particular
the decrease in finance cost by 43.87% and 38.18% in quarter three and quarter four respectively, as compared to sector and the overall fundamentals of the Company. Positive sentiments, news flows prevailing in the market may
SPLY. However, the benefits of saving in finance cost were outweighed from the devaluation in Pakistan Rupees result in an appreciation of the share price of the Company.
starting from March 2020, which resulted in an exchange loss of around Rs. 911 million in quarter three and
accordingly was the significant contributor for a decrease in net profits of the Company in quarter three, whereby Government Policies
Company is exposed to Government regulations, taxes schemes, policies, incentives schemes which directly affects
the profit in this quarter decreased by Rs. 498.11 million as compared to SPLY. The results of the fourth quarter
the Company’s financial performance which in turn may affect the share price.
were impacted mainly on account of the COVID-19 pandemic, whereby not only the holding cost of the inventory
increases owing to decrease in sales but at the same time market price of yarn also decreased, which coupled with Political Instability
the under absorption of fixed overheads owing to the curtailment of production severally impacted the gross profit The stable political situation in the Country improves the overall business performance, investor confidence and also
of the Company and accordingly the Company has to sustain a loss of Rs. 272.17 million in this quarter. encourages foreigners to deal with some of the prestigious companies in the Country, which may have an impact on
Company’s share price.
Segmental View of Business Performance
Based on internal management reporting structure and products produced and sold, the Company is organized into Exchange Rate
Company generated 29.81% of its revenue from exports and imported 75.85% of its raw material, through which
the following three operating segments:
the entity is exposed to exchange rate risk. Any favorable or unfavorable movement in exchange rates might affect
the Company’s profitability and hence, affect the share price. The Company has also adopted effective strategies to
- Spinning segment: manufacturing and sale of yarn minimize the risk of exchange rates.
- Dairy segment: production and sale of milk Interest Rate
The Company’s finance cost is 3.14% of the turnover. Any interest rate movement might affect the Company’s
The detail regarding segment wise performance is appearing in the financial statement of the Company. profitability and hence, affect the share price.
Availability of Raw Material

The Company’s performance is largely dependent upon the availability of raw material, which is highly sensitive to
seasonal fluctuations. Thus, any negative or positive change in the crop yield will dampen the Company’s
performance and influence the share price.
Novel Coronavirus (COVID-19) Pandemic

The outbreak of COVID-19 in the latter half of the financial year has caused widespread business disruptions around the
globe resulting in a negative impact on the economic activities. In addition to this, lockdown imposed by Government
authorities also affected the trading sessions of the Stock Exchange. This caused the panic among investors which was
the main reason for the decline in the KSE-100 Index, which has started recovering from the month of June 2020.
Share Price Analysis

50,000 300
KSE 100 Index (points)
45,000
GTML Share Price

40,000 250
35,000 200
30,000
25,000 150
20,000
15,000 100
10,000 50
5,000
0 0
Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20
Months
KSE 100 Price

history of
major events
• Pioneered and set up “Jet
Spinners” in the Country. • Investment in diversified business
• Replaced diesel generators avenues has started to reap its benefits.
with gas generators. • BMR of existing machinery to have
• Number of spindles state of the art machinery.
• The Company started increased • Invested in wind projects and
commercial production by to 194,392. announced investments in solar and
producing poly/cotton yarn with • Acquired 14 acres of land • Set up an additional production hydel projects.
14,400 spindles. for erecting additional facility at Karachi. • Number of spindles increased to 348,288.
• Number of spindles increased sheds and underground • Performed marvelously despite • Successful installation and operation
to 64,800. water reservoirs. the global financial meltdown. of the Waste Heat Recovery Plant.
1990–1995 1995–2000 2000–2005 2005-2010 2010-2015 2015-2020
• Number of spindles increased

to 128,160. • Planned investment an environment-friendly 50 MW
• Introduced “Compact Spinning” Wind Power Project.
with 15,840 spindles for the • Started commercial operations at Karachi Plant and
first time in Pakistan. increased installed capacity to 245,000 spindles.
• Acquired assets of another textile mill located in Gadoon
Amazai Industrial Estate.
• Invested in shares of ICI Pakistan Limited.
• Acquired new electric generators based on natural gas to
enhance power generation capacity
• Signed PC contract to generate additional 2.66 MW
based on Waste Heat Recovery.
• Fazal Textile Mills Limited (FTML) merged with
and into GTML.
• Number of spindles increased to around 321,000 by
virtue of the merger of FTML.

calendar of major capital
notable events expenditure
26 01
In order to remain competitive at the national and international levels, the Company regularly invests in new
Jul BOD Meeting for Yearly
Accounts – 2019
Aug Industry Visit of ACCA students
to Karachi Project Factory
technologically advanced machinery. The purpose of the investment is to reduce the cost of production by achieving
19 19 operational efficiencies and serving customers better in terms of quality and supplementary services.
This year the Company has made a significant CAPEX of Rs. 1.37 billion and has developed a phase-wise strategy for
13 Aug
19
Independence Day
Celebration
20
Aug
19
Received Best Corporate Report
Award for Annual Report 2018
the replacement of old and obsolete machines.
28 Sep
19
32nd Annual General
Meeting – 2019
02
Oct
19
Corporate Briefing Session
at PSX
29 Oct
19
BOD Meeting for first quarter
ended September 30, 2019
06
Nov
19
Training Session - Rise Beyond
Yourself at Gadoon Amazai
Factory – KPK
23 Nov
19
KPI Development Session
for Senior Management
27
Dec
19
PSX Top 25 Companies Award
2018
18 Jan
20
Cricket Night
30
Jan
20
BOD Meeting for half year ended
December 31, 2019
22 Feb
20
BCP Drill
05
Mar
20
Hajj Balloting
Dividend Declaration
During the current year, since the operations of the
Country were curtailed, resultantly, the profits
which has otherwise increased owing to an increase
in working capital requirement.
07 22
Mar Women’s Day Celebration Apr BOD Meeting for third quarter declined. Therefore, the Board of Directors of the Details of Taxes, Duties, and Levies
at Head Office ended March 31, 2020 Company decided not to declare dividend this year, as Details of the contingency related to taxes, duties, and
20 20 this will help the Company to reduce its borrowing, levies are disclosed in note 23 of the financial statements.
Tentative Dates for Next Financial Year

BOD Meeting for Yearly Accounts – 2020 Thursday, September 24, 2020
Annual General Meeting – 2020 Wednesday, October 28, 2020
BOD Meeting for first quarter ending September 30, 2020 Tuesday, October 27, 2020
BOD Meeting for half year ending December 31, 2020 Thursday, January 28, 2021
BOD Meeting for third quarter ending March 31, 2021 Tuesday, April 27, 2021
BOD Budget Meeting 2021-2022 Thursday, May 27, 2021

dreams
worth
spreading
Outlook
spreading
the dream
of a
lifetime
forward-looking
statement
The black swan event of this FY, the COVID-19 In addition to achieving its financial milestone, the Further, keeping in view the profitability and Company’s Preparedness
pandemic, took a major toll on the world economy. As Company has allocated an adequate budget for the anticipated demands for its knitted fabrics, the to Respond to Challenges
the world is coping from the devastating effects of the development of its capitals, i.e., human capital, Company decided to expand its knitting segment. In As mentioned earlier in the report, the Company has
pandemic and returning to routine, it is expected that manufactured capital, intellectual capital, and social this respect, the construction of a separate division a well-developed Disaster Recovery and Business
the economic growth will be slow initially. However, & relationship capital, and anticipates that it will be for the knitting segment at Karachi Factory was Continuity Plan, which can help the management to
as countries have allowed businesses to resume, it able to satisfy the need of all stakeholders. completed during the first half of this FY. respond to critical challenges and uncertainties that
will influence the global economy positively. are likely to arise.
Company’s Performance Against Sources of Information and
In light of the pandemic, the Government and SBP Last Year’s Projections Assumptions used for Forecast
had taken several initiatives to keep the Country’s During the year, mainly on account of the COVID-19 The Company on the basis of current monetary and
economy running. Now, as the Government has been pandemic, the Company’s sales and profitability have fiscal policy, affiliations/contacts with associations,
successful in curtailing the spread of COVID-19, it is reduced as against the anticipated increase in last consultation with industry experts, including advisory
expected that the Country’s economy will reap the year’s forward-looking statement. firms, market research including past trends, forecasts
benefits of their efforts. Accordingly, the demand for the factors, i.e., exchange rate, interest rate, cotton
textile products will increase locally/globally. However, as anticipated in last year’s forward-looking prices, sales prices, etc. having significant impacts on
statement, the return from strategic investments the Company’s operations and accordingly makes
The Company expects that the Government will has increased. Even though the increase is of only projections/budgets for the upcoming year.
continue its practice of timely release of tax and DLTL 2.07%, but considering the fact that all macroeconomic
refunds etc. Further, it is expected that the Rupee indicators were posing a negative impact on the
will continue its stability owing to receipt of financial economy, the associates of the Company still
assistance from international agencies, diminishing performed well in the weakening economy.
inflationary pressure on the economy, and expected
projected official and private inflows. The Company In addition to that, as forecasted in the last year’s
also expects that there would be no significant forward-looking statement, the currency maintained
increase in interest rates in the upcoming year. its stability until the major part of this financial year,
with devaluation started to be witnessed from
Further, the overall political conditions are expected March 2020. Moreover, as anticipated in last year’s
to remain stable with minimal chances of any new forward-looking statement, there was no increase in
legal/regulatory/environmental regulations having a interest rates in this FY; in fact, the significant
significant impact on the Company’s operations. decline in interest rates was witnessed in the fourth
quarter of this FY.
Moreover, the Company will also continue its strategy
to cater to the increasing demand for textile products in Further, the increase was also witnessed in the
the medical field. The management of the Company amounts refunded by FBR in this FY as anticipated in
believes that significant CAPEX incurred over the years last year’s forward-looking statement, despite the
would help to sustain costs and deliver a competitive tough time on the economy.
edge. As the Company continues to expand its global
footprint and diversify its business, it is confident
Status of Projects
that it will leave desirable effects on the Company’s
Apart from investment in state-of-the-art technology
profitability, and accordingly, returns from strategic
machines and strategic investments, no other major
investments would also increase.
projects are in pipelines from the previous year, the
progress of which needs to be disclosed.
Accordingly, the Company is confident that it will be
able to increase its sales and profitability in the
upcoming year.

SWOT
analysis
SWOT analysis is an approach to watch out for the strengths, weaknesses, opportunities, and threats of the business.
GTML ensures that it uses its strength to utilize the opportunities available, eliminate the threats, and turn its
weaknesses into the business’s strengths.
Strengths Opportunities
• Market dominance • Access to untapped markets to increase sales
• In-house power generation • Availability of expansion in existing and untapped
• Strong group structure segments with bare minimum capital expenditure
• Economies of scale • Diversification of product range. Target the niche
• Availability of a wide range of products market due to a wide range of product manufactured
• State-of-the-art plant and production facilities • Hiring of qualified staff for changing business climate
• Global reach to internationally acclaimed clients • Increasing profits and growing demand in the market
• Experienced and skilled workforce • Technology advancement
S W O T
Weaknesses Threats
• Labor-intensive operations • Political instability
• Substantial portion of production based on the volatile • Imposition of innovative taxes and uncertain
cotton market Government policies, e.g., GIDC
• Dependence on a particular region for sales • Shortage of raw material due to natural disasters
• Major reliance on the spinning segment • Abrupt fluctuation in interest and exchange rates
• High labor-intensive industry
• Availability of subsidized yarn by regional competitors
• Impact of the COVID-19 pandemic on demand for
textile products

dreams
worth
savouring
Stakeholder’s Engagement
savouring
the dream
of a
lifetime
stakeholder’s relation with
engagement stakeholders
GTML focuses on establishing strong relationships with its stakeholders to encourage the growth and existence of Management recognizes that the dispute with the stakeholders can have hindrances in day-to-day business
the Company. The Company makes use of commitment, sincerity, competence, effective communication, and reliable operations, and therefore give due importance to their feedback/suggestion. We aim to produce and deliver innovative,
behavior to collaborate with its stakeholders. high-quality products while remaining environmentally conscious, so we work with those who share our values.
The Company also ensures that all business activities between stakeholders are conducted through fair, legal, and ethical
Stakeholders Description Frequency means. Accordingly, stakeholders are allowed to have direct access to the Company Secretary in case of any grievance.
Investors and To update investors/shareholders about the Company’s current Annually/Quarterly Minority Shareholders
Shareholders performance/future plans and provide them with a platform for raising /Continuous/As The shareholders hold immense value for the Company. GTML prioritizes the interests of its shareholders, and so
their concerns, the Company engages with them through Annual required their views are of utmost importance to us.
General Meetings, Quarterly/Half Yearly/Annual Reports, websites,
and investor/corporate briefing sessions. Regardless of their shareholding value, we encourage all shareholders to attend the General Meetings.
The Company has adopted the following steps to encourage minority shareholders to attend the General Meeting.
Customer and The Company strives to come up with new ways to interact with its Continuous
• Notice is circulated within the regulatory timeframe.
Suppliers customers and suppliers. It engages with all its customers and
• Notice is sent electronically on request.
suppliers through get-togethers, market visits and customers/suppliers
• Notice is published in English and Urdu newspapers having nationwide circulation.
satisfaction surveys, and feedback on a periodic basis.
• Notice is updated on the PSX portal as well as Company’s website.
Banks and Lenders GTML considers the providers of funds to be our partners in success Continuous/As Apart from timely submission of accounts and notices to shareholders, the Company in order to encourage minority
of Finance and ensure that they are frequently engaged with the Company and required shareholders to attend the General Meetings and on the basis of section 132(2) of the Companies Act, 2017, have
taken into confidence as and when required. The Company maintains provided the video conferencing facility to shareholders (having shareholding of 10% or more in aggregate), subject
excellent relationships with all the leading financial institutions of to availability of video conference facility in that city and receipt of intimation from the shareholders at least seven
the Country. days prior to the date of the meeting.
Further, to provide an additional opportunity to minority shareholders to interact with the management of the
Media GTML engages with the media and disseminates news and other As required
Company, the Company has been conducting corporate briefings and roadshows on a regular basis.
happenings to its stakeholders through press releases, corporate
briefings, media announcements, and presentations, etc.
Investors' Relations Section
Further, our Corporate Branding team regularly updates our social The Company communicates all major financial information needed for investors’ decision making by uploading it on
media platforms and website. the corporate website, i.e. (http://gadoontextile.com/) under the section of Investor Relations, on a timely basis.
Regulators GTML believes in strict compliance with applicable laws and regulations. Periodic/As
To remain compliant, GTML ensures that all the regulators’ queries are required
responded to on a timely basis, including the filing of various statutory
returns/forms.
Local Communities GTML actively participates in various CSR initiatives and activities in As required
the health, education, and social sector.
134 I Gadoon Textile Mills Limited 2019 I 127

Annual Report 2020 135
statement of value addition stakeholder’s
and its distribution engagement policy
2020 2019 GTML is fully committed to developing an effective working relationship with all its
(Rupees in ‘000) % (Rupees in ‘000) % stakeholders. The objective of this policy is to lay down key principles of
Wealth Generated engagement with stakeholders.
Sales including Sales Tax 32,435,679 97.99% 31,229,771 97.95%
Other Operating Income 666,178 2.01% 653,335 2.05% With respect to the engagement of its stakeholders, GTML is committed to:
33,101,857 100.00% 31,883,106 100.00%
Wealth Distribution • Providing accurate and timely information to all stakeholders;
Cost of Sales 24,760,149 74.79% 26,027,921 81.64% • Obtaining regular feedback from stakeholders;
Administrative, Distribution and Others 1,448,827 4.38% 573,587 1.80% • Evaluating the effectiveness of stakeholders’ engagement activities and working continually to improve
Employees 2,197,186 6.64% 2,500,776 7.84% such engagements.
Income Tax 292,218 0.88% 482,355 1.51%
Frequency of engagements is based on the corporate and business requirements as laid down by the corporate
Sales Tax 3,448,898 10.42% 12,292 0.04%
laws, contractual obligations as/and when required.
Financial Charges 909,080 2.75% 1,100,073 3.45%
Dividend to Shareholders - - 238,251 0.75%
Distribution within Business 45,499 0.14% 947,851 2.97% Investor Roadshows/Corporate An interactive session was held between research
33,101,857 100.00% 31,883,106 100.00%

Briefing Program analysts, fund managers, and management
Our stakeholder extends valuable contributions representatives where insight on the Company’s
towards our growth and existence. The Company current year performance was discussed along with
understands the importance of continuous the future prospects.
Wealth Distribution collaboration with all its stakeholders.
Looking forward, the Board has set the intentions,
2020 2019 The Board has devised a mechanism to arrange and the management has planned to hold the
interactive sessions between the management of the corporate briefing session for the year ended June
Company and its shareholders to solicit and 30, 2020, in the first week of October 2020.
0.75%
2.75% 0.14% 3.45% 2.97% understand the views of shareholders. The purpose of
10.42% 0.04% these sessions is to brief shareholders about the
1.51%
performance of the Company, macro and micro
0.88% 7.84%
economic factors affecting the Company, prospects
6.64% 1.80% of the Company, and the steps taken by the Company
to improve its performance in challenging
4.38% circumstances. These communications help the
Company to understand and resolve the concerns of
the shareholders and to add a synergy factor to
achieve better results in the Company’s prospects.
74.79% 81.64%
The Board is pleased to inform that the Company, held
its Annual Corporate Briefing Session for the year
2019 on October 2, 2019, at Pakistan Stock Exchange
Auditorium, Karachi.
Cost of Sales Administrative, Distribution & Others Employees Income Tax
Sales Tax Financial Charges Dividend to Shareholders Distribution within Business

dreams
worth
adoring
Sustainability and Corporate
Social Responsibility
adoring
the dream
of a
lifetime
highlights of aspects
of sustainability The Company not only works for the betterment of
society but also focuses on spreading ethical values
amongst people. Initially, the people of Swabi were
Communities
GTML fulfills its commitment towards the wellbeing of
communities and takes several initiatives each year.
involved in the cultivation of poppy and opium on their However, on account of the COVID-19 pandemic, only
Companies achieve sustainable development by adopting Energy Saving Measures agricultural lands in order to earn their livelihood. The a few of the plans were executed this year. Detail of
the business strategies that protect, sustain, and GTML aims to conserve natural resources and reduce change was brought about when the foundation of some of the events is mentioned in the next section of
enhance the human and natural resources needed. energy consumption. Hence, the Company has acquired GTML was laid in that area to provide employment to Corporate Social Responsibility.
a state-of-the-art Waste Heat Recovery Plant (WHRP). the locals and help them distance themselves from
The incorporation of GTML proved to be a great example these harmful practices. Thus, GTML is not only a
of contribution towards the betterment of the society WHRP does not need any externally fed fuel to operate, profit-making entity but also has a core objective to
in terms of Health, Safety, and Environment. GTML makes but it uses the excess heat from the system as fuel. be socially responsible.
sustainability a priority in every aspect of organizational The design of these plants hinges on the idea of
operations and is involved in compliance, environmental encapsulating all the excess heat from the production The Company considering the social and emotional
protection, occupational health, and safety. system and using this heat to generate steam from needs of its employees, provides accommodation
boilers, which drive the turbine engines, thus facilities for its staff and workers at both locations.
The highlights of the Company’s performance, policies, producing electricity. Further, subsidized mess, ambulance service, and shuttle
initiatives, and plans in place relating to various aspects service are also offered to employees. The Company
of sustainability are as follows: In addition to this, the Company has made a conscious also maintains the retirement benefit plan for its employees
effort to save energy, as small as mindfully turning off to provide them financial security after retirement.
Economic unnecessary lights or computers during office breaks
The economic aspect of sustainability is regarded to or as immense as using energy-efficient office equipment.
have comprised the potential to amalgamate sustainable
practices, technology, and money-making tools. Paper-Waste Disposal
GTML is a socially responsible organization, striving
GTML is determined to provide value along with hard to reduce the use of paper. Technology, such as
consistent growth to its stakeholders. Further, the scanning and digital data storage, is implemented
Company’s presence in the market positively impacts wherever possible. Further, the Company, over the
the economic development of Pakistan by opening up last couple of years, has collected and donated tons of
employment and business opportunities. The Company paper for recycling.
also pays focus on the upgradation of technology for
enhanced productivity and growth that contributes to Social
economic development. The Company’s aim in respect of the social pillar of
sustainability is to focus on the health, wellness, and
Environmental education of the people and thereby to prioritize the
It has long been known as the primary reason for quality of life over everything. The Company believes
sustainability and has now been incorporated into the in the promotion of the betterment of society.
corporate environment. GTML believes that without a
healthy environment, the human pursuits of economy Industrial Relations/Employment
and society cannot be sustained. The Company abides Maintaining wondrous relations with the employees
by environmental laws and continually improves its and labor is one of the prime focus of GTML. The
environmental management system. Company ensures that the employees and their
managers share a strong bond, that employees receive
Mitigating Adverse Risk of Industrial Effluents fair treatment, and that any issues arising between
The Company’s policy of ‘clean environment, healthy employees and management are solved quickly and as
life’ aims to implement processes and procedures that amicably as possible.
ensure disposal of waste materials and chemicals in a
way that is least harmful to the environment. Training
and awareness sessions are conducted on a regular
basis for this purpose.

highlights of corporate
social responsibility Fundraising Gala Dinner
It is essential that each member of the society is valued
and made feel inclusive. Keeping this in mind, the Company
contributed to the Fundraising Gala Dinner (Rhythms &
GTML positions itself as one of the conscientious members Passion of Southern Italy) organized by The Embassy of
of the corporate community. The Company has worked the Republic of Italy in Pakistan and the Serena Hotels.
munificently to several charitable causes in the segment
of health, education, and social sectors. The main aim of this Black-tie event was to achieve the
sustainable goal of educating future generations to come,
Tree Plantation Activity as the sales proceedings were dedicated to Autistic
The environmental changes are one of the biggest threats Children and their Parents. The funds were to be used for
that are being faced by the world. In order to combat creating awareness for the early detection of an autistic
climate change, apart from several other activities, tree child, its proper handling, care, and cure. The event also
plantation activities are carried out all over the Country played a vital role in strengthening the cultural ties
by institutions, NGOs, and corporates. between Italy and Pakistan.
GTML has always been a generous contributor when it The event was attended by Italian specialist, Prof. Filippo
comes to the plantation of trees. This time tree plantation Muratori from the University of Pisa. It featured a
activity was carried out at Ghanchi School, Malir Karachi, performance by an internationally acclaimed Italian
and Fateh Bagh Family Park at North Nazimabad with Folk-Rock Ensemble “Compagnia SoleLuna” and also
students from PAF KIET, where the students and the showcased paintings by autistic children.
employees of GTML participated equally and planted
saplings. This tree plantation drive was aimed at achieving
sustainability, reducing the risk of climate change,
cleaning the environment, and preventing pollution. Realizing the importance of the contributions students
can make towards the Country, the Company organized
Factory Visit of ACCA Students a factory visit for ACCA students of Tabani’s School of
The future of any country is dependent on its youth. Hence, Accountancy. The aim was to familiarize the students
it is essential that we play our part in building future leaders with the norms of the corporate world. The attendees
of the Country. Providing guidance to these young minds were also briefed regarding the textile industry and its
at an early stage can help them plan their careers. significance in Pakistan’s economy.

certifications acquired for corporate
environmental sustainability affiliations
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dreams
worth
living
Corporate Reporting
living
the dream
of a
lifetime
statement of unreserved integrated
compliance of international reporting
financial reporting standards (IFRSs) The Company continuously strives to meet the best • Organizational overview and external environment
corporate reporting standards to create value for the • Governance
Company and its stakeholders. Additionally, GTML is • Business Model
The financial statements of the Company have been prepared in accordance with focused on concise and coherent reporting of the • Risks and opportunities
the IFRS issued by IASB as notified under the Companies Act, 2017. business affairs presented in the form of financial and • Strategy and resource allocation
non-financial information. Further, the Company is • Performance
Further, there are certain standards and interpretations which are yet to be committed to achieving excellence in transparent • Outlook
effective in Pakistan and certain standards not adopted by SECP, as disclosed note reporting along with consistent improvement in the • Basis of presentation
3.5 of the financial statements. However, the management believes these standards quality of the information presented.
and interpretation does not have any material impact on the financial statements of Status
The International Integrated Reporting Framework Though in the current year, the Company has fulfilled
the Company. (IIRF) identifies information to be included in an certain additional requirements of the IIRF as
integrated report that helps in assessing the compared to its last Annual Report by disclosing some
Company’s ability to create value. additional information, however, the Company is still
reviewing the Framework to assess/compile the
The purpose of an integrated report is to complete required information which needs to be
presented under IIRF.
• explain to providers of financial capital regarding the
Company’s value creation process over time by The IIRF is continuously under the review of those
providing all relevant information. charged with governance, and the management team,
• benefit all stakeholders interested in the Company’s and it is expected that the Company will be able to
ability to create value over time. comply with the complete provision of the Framework
in the years to come.
Content Elements for
Integrated Reporting
The Company has incorporated in this Annual Report
majority of the details as outlined for the following
content elements of IIRF:

disclosures
beyond bcr
The Company, in order to promote transparency in its dealings, has added certain
additional information for its stakeholders, which are beyond those as required under
the BCR Criteria. Details are as follows:
29
Awards and
Page
No. 43 Page
No.
Materiality
66 Page
No.
CEO’s Message
Achievements Determination
72 Page
No.
IT Governance: Major
75 Page
No.
Employee
122 Page
No.
History of Major
Projects During the Year Engagement Activities Events
124 Page
No.
Tentative Dates for
Next Financial Year

dreams
worth
celebrating
Financial Statements
celebrating
the dream
of a
lifetime
independent auditor’s report
to the members
Following is the Key audit matter:
S.No. Key audit matters How the matter was addressed in our audit
1 Contingencies
Report On The Audit Of The Financial Statements The Company is subject to material litigations In response to this matter, our audit procedures included:
regarding GID Cess, tax and other matters which
Opinion requires management to make assessment and • Reviewed the documents for legal and tax proceedings
We have audited the annexed financial statements of Gadoon Textile Mills Limited (the Company), which comprise the statement judgments with respect to likelihood and impact of maintained by the management, including Judgement
of financial position as at June 30, 2020, and the statement of profit or loss, the statement of comprehensive income, the such litigations on the financial statements of the passed by the SC and related provision of the GIDC Act, 2015;
statement of changes in equity, the statement of cash flows for the year then ended, and notes to the financial statements, Company.
including a summary of significant accounting policies and other explanatory information, and we state that we have obtained • Obtained management’s assessment regarding their
all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of the audit. The details of contingencies including that relating implications on the Company;
to GID Cess 2015 and the Supreme Court (SC)
In our opinion and to the best of our information and according to the explanations given to us, the statement of financial position, decision regarding the same along with • Evaluated management’s view considering the facts and
the statement of profit or loss, the statement of comprehensive income, the statement of changes in equity and the statement management’s assessment thereon are disclosed explanations given by them;
of cash flows together with the notes forming part thereof conform with the accounting and reporting standards as applicable in note in 23 to the financial statements.
in Pakistan and give the information required by the Companies Act, 2017 (XIX of 2017), in the manner so required and respectively • Discussing with the Company’s legal and tax department
give a true and fair view of the state of the Company's affairs as at June 30, 2020 and of the profits, the comprehensive income, Some of these contingencies may involve significant to corroborate the facts and explanations given by
the changes in equity and its cash flows for the year then ended. outflow of economic benefits due to inherent management; and
uncertainties with respect to the outcome of the
Basis for Opinion matters and use of significant management • Reviewed adequacy of the disclosure made in the financial
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Pakistan. Our responsibilities judgments and estimates to assess the same statement in accordance with the applicable accounting
under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section including related financial impacts, we considered and reporting standards.
of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ contingent liabilities as a key audit matter.
Code of Ethics for Professional Accountants as adopted by the Institute of Chartered Accountants of Pakistan (the Code) and
we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion. Information Other than the Financial Statements and Auditor’s Report Thereon
Management is responsible for the other information. The other information comprises the report of audit committee, directors’
Key Audit Matters report, Chairman’s review, analysis on financial performance, comments on the financial results, key performance indicators,
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the analysis of cost and statement of value additions and its distribution.
financial statements of the current year. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in
the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is
a material misstatement of this other information, we are required to report that fact. We have not been provided with the
other information and therefore, do not report on it.
Responsibilities of Management and Board of Directors for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with the accounting
and reporting standards as applicable in Pakistan and the requirements of Companies Act, 2017 (XIX of 2017) and for such internal
control as management determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Board of Directors are responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements Report on Other Legal and Regulatory Requirements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material Based on our audit, we further report that in our opinion:
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs as applicable in Pakistan will a) proper books of account have been kept by the Company as required by the Companies Act, 2017 (XIX of 2017);
always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the b) the statement of financial position, the statement of profit or loss, the statement of other comprehensive income, the
basis of these financial statements. statement of changes in equity and the statement of cash flows together with the notes thereon have been drawn up in
conformity with the Companies Act, 2017 (XIX of 2017) and are in agreement with the books of account and returns;
As part of an audit in accordance with ISAs as applicable in Pakistan, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also: c) investments made, expenditure incurred and guarantees extended during the year were for the purpose of the Company’s
business; and
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to d) zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was deducted by the Company and
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for deposited in the Central Zakat Fund established under section 7 of that Ordinance.
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. The engagement partner on the audit resulting in this independent auditor’s report is Hena Sadiq.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
1
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management. Chartered Accountants
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit Karachi
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt Date: October 6, 2020
on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether
the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with the board of directors regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the board of directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with the board of directors, we determine those matters that were of most significance in the audit
of the financial statements of the current year and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communication.

statement of
financial position Note
2020 2019
----------------- (Rupees in ‘000) ---------------
EQUITY AND LIABILITIES
Share Capital and Reserves
As at June 30, 2020 Authorized
57,500,000 ordinary shares of Rs.10/- each 575,000 575,000
2020 2019
Note ----------------- (Rupees in ‘000) --------------- Issued, subscribed and paid-up capital 16 280,296 280,296
ASSETS Capital reserves 137,541 137,541
Non-Current Assets Revenue reserves 8,666,521 8,791,596
Property, plant and equipment 5 10,165,007 9,870,359 Total Equity 9,084,358 9,209,433
Biological assets 6 190,214 129,665
Long term advance 7 - - Non-Current Liabilities
Long term loans 8 39,632 43,677 Long term finance 17 3,526,689 2,622,363
Long term deposits 29,505 29,127 Retirement benefit obligation 18 629,205 562,984
Long term investments 9 3,150,556 2,890,606 Deferred tax liabilities 19 810,001 890,390
13,574,914 12,963,434 4,965,895 4,075,737
Current Assets Current Liabilities
Stores, spares and loose tools 10 632,631 606,538 Trade and other payables 20 4,181,691 3,700,823
Stock-in-trade 11 12,914,426 8,407,361 Unclaimed dividend 21 23,596 21,879
Trade debts 12 2,332,951 3,517,747 Current portion of long term finance 17 68,092 52,728
Loans and advances 13 122,927 199,991 Accrued mark-up 147,569 318,196
Trade deposits and short term prepayments 22,827 8,901 Short term borrowings 22 12,362,149 9,926,683
Other receivables 14 569,750 719,881 16,783,097 14,020,309
Current tax asset 576,804 658,310 Total Liabilities 21,748,992 18,096,046
Sales tax refund bond - 110,797 Total Equity and Liabilities 30,833,350 27,305,479
Cash and bank balances 15 86,120 112,519
17,258,436 14,342,045 CONTINGENCIES AND COMMITMENTS 23
Total Assets 30,833,350 27,305,479
The annexed notes from 1 to 44 form an integral part of these financial statements.
MUHAMMAD YUNUS TABBA MUHAMMAD SOHAIL TABBA MUHAMMAD IMRAN MOTEN

Chairman / Director Chief Executive Officer Chief Financial Officer

statement of statement of
profit or loss comprehensive income
For the Year Ended June 30, 2020 For the Year Ended June 30, 2020
2020 2019 2020 2019
Note ----------------- (Rupees in ‘000) --------------- Note ----------------- (Rupees in ‘000) ----------------
Sales - net 24 28,986,781 31,217,479 Profit for the year 45,499 1,186,102
Cost of sales 25 (26,745,495) (28,324,756)
Gross profit 2,241,286 2,892,723 Other comprehensive income
Distribution cost 26 (474,356) (401,764) Items that will be reclassified subsequently

Administrative expenses 27 (267,881) (276,997) to the statement of profit or loss
(742,237) (678,761)
1,499,049 2,213,962 Share of other comprehensive (loss) / income from associates - net of tax 9 (1,754) 277
Finance cost 28 (909,080) (1,100,073) Items that will not be reclassified subsequently
Other operating expenses 29 (918,430) (98,767) to the statement of profit or loss
(328,461) 1,015,122 - Remeasurement of defined benefit obligation 18.5 83,462 73,048
- Income tax relating to defined benefit obligation (14,031) (14,450)
Other income 30 173,648 170,772 69,431 58,598
Share of profit from associates 9 492,530 482,563 Other comprehensive income 67,677 58,875
Profit before taxation 337,717 1,668,457
Total comprehensive income for the year 113,176 1,244,977
Taxation 31 (292,218) (482,355)
Profit for the year 45,499 1,186,102
Earnings per share - basic and diluted (Rupees) 32 1.62 42.32
MUHAMMAD YUNUS TABBA MUHAMMAD SOHAIL TABBA MUHAMMAD IMRAN MOTEN MUHAMMAD YUNUS TABBA MUHAMMAD SOHAIL TABBA MUHAMMAD IMRAN MOTEN
Chairman / Director Chief Executive Officer Chief Financial Officer Chairman / Director Chief Executive Officer Chief Financial Officer

statement of statement
cash flows of changes in equity
For the Year Ended June 30, 2020 For the Year Ended June 30, 2020
2020 2019
------------Capital Reserves------------ ---------------- Revenue Reserves ---------------
Note ----------------- (Rupees in ‘000) ----------------
Issued, Share Amalgamation Sub General Amalgamation Unappropriated Sub Grand
A. CASH FLOWS FROM OPERATING ACTIVITIES subscribed premium reserve total reserve reserve profit total total
Cash (used in) / generated from operations 33 (433,484) 2,059,299 and paid-up
Finance cost paid (1,079,707) (911,477) share capital
Income tax paid (304,748) (293,314) -------------------------------------------------------(Rupees in '000)------------------------------------------------------
Retirement benefits paid (113,992) (111,083)
Rebate received 48,111 242,639 Balance as at July 1, 2018 280,296 103,125 34,416 137,541 1,000,000 727,333 6,068,340 7,795,673 8,213,510
(1,450,336) (1,073,235)
Transaction with owners
Net cash (used in) / generated from operating activities (1,883,820) 986,064
Final dividend @ Rs. 8.75/- per share for
B. CASH FLOWS FROM INVESTING ACTIVITIES year ended June 30, 2018 - - - - - - (245,259) (245,259) (245,259)
Purchase of property, plant and equipment (1,367,205) (2,839,346) - - - - - - (245,259) (245,259) (245,259)
Purchase of animals (30,389) -
Sale proceeds from disposal of property, plant and equipment 69,639 64,988 Effect of restructuring of investment - - - - - - (3,795) (3,795) (3,795)
Sale proceeds from disposal of biological assets 11,735 -
Total comprehensive income for the year
Proceeds on disposal of shares of ICIP - an associate - 7,998
Loans repaid by / (paid to) employees 40 (8,743) Profit for the year - - - - - - 1,186,102 1,186,102 1,186,102
Long term deposits given (378) -
Profit received from bank deposits 5,629 1,374 Other comprehensive income - - - - - - 58,875 58,875 58,875
Dividend received 230,442 270,017
Net cash used in investing activities (1,080,487) (2,503,712) Total comprehensive income for the year - - - - - - 1,244,977 1,244,977 1,244,977
Balance as at June 30, 2019 280,296 103,125 34,416 137,541 1,000,000 727,333 7,064,263 8,791,596 9,209,433
C. CASH FLOWS FROM FINANCING ACTIVITIES
Long term finance obtained 957,819 2,080,753 Transaction with owners
Repayment of long term finance (38,129) (9,844)
Dividend paid (236,534) (244,803) Final dividend @ Rs. 8.50/- per share for
Net cash generated from financing activities 683,156 1,826,106 the year ended June 30, 2019 - - - - - - (238,251) (238,251) (238,251)
- - - - - - (238,251) (238,251) (238,251)
Total comprehensive income for the year
Net (decrease) / increase in cash and cash equivalents (A+B+C) (2,281,151) 308,458
Cash and cash equivalents at the beginning of the year (9,212,428) (9,520,886) Profit for the year - - - - - - 45,499 45,499 45,499
Cash and cash equivalents at the end of the year (11,493,579) (9,212,428)
Other comprehensive income - - - - - - 67,677 67,677 67,677
CASH AND CASH EQUIVALENTS
Cash and bank balances 15 86,120 112,519 Total comprehensive income for the year - - - - - - 113,176 113,176 113,176
Short term borrowings 22 (11,579,699) (9,324,947)
Balance as at June 30, 2020 280,296 103,125 34,416 137,541 1,000,000 727,333 6,939,188 8,666,521 9,084,358
(11,493,579) (9,212,428)
CHANGES ARISING FROM FINANCING ACTIVITIES The annexed notes from 1 to 44 form an integral part of these financial statements.
2019 Financing Financing Non-cash 2020
cash inflows cash outflows changes
--------------------------------------------------- (Rupees in '000) -------------------------------------------------------
Long term finance 2,675,091 957,819 (38,129) - 3,594,781
Unclaimed dividend 21,879 - (236,534) 238,251 23,596
MUHAMMAD YUNUS TABBA MUHAMMAD SOHAIL TABBA MUHAMMAD IMRAN MOTEN MUHAMMAD YUNUS TABBA MUHAMMAD SOHAIL TABBA MUHAMMAD IMRAN MOTEN
Chairman / Director Chief Executive Officer Chief Financial Officer Chairman / Director Chief Executive Officer Chief Financial Officer

notes to the
financial statements Before Merger Effect of Merger After Merger
------------------------------- (Rupees in ‘000) --------------------------------
- Investment in ICI Pakistan Limited 1,761,406 185,010 1,946,416

For the Year Ended June 30, 2020 - Other assets 25,517,949 (158,886) 25,359,063
- Non current liabilities 4,074,697 1,040 4,075,737
1. THE COMPANY AND ITS OPERATIONS - Current liabilities 14,015,181 5,128 14,020,309
Gadoon Textile Mills Limited (the Company) was incorporated in Pakistan on February 23, 1988 as a public limited 3. BASIS OF PREPARATION
company under the repealed Companies Ordinance, 1984 (now Companies Act, 2017) and is listed on Pakistan Stock
Exchange. The principal activity of the Company is manufacturing and sale of yarn and knitted fabrics. Further, the 3.1 Statement of compliance
Company has also invested in dairy segment which has started the commercial operations since June 30, 2019. These financial statements have been prepared in accordance with the accounting and reporting standards as applicable in
Pakistan. The accounting and reporting standards applicable in Pakistan comprise of International Financial Reporting Standards
Y.B. Holdings (Private) Limited is the holding company of the Company. (IFRS) issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017 and provisions of
and directives issued under the Companies Act, 2017. Where provisions of and directives issued under the Companies
Following are the geographical location and address of all business units of the Company: Act, 2017 differ from the IFRS, the provisions of and directives issued under the Companies Act, 2017 have been followed.
Head Office: 3.2 Basis of measurement

7-A, Muhammad Ali Society, Abdul Aziz Haji Hashim Tabba Street, Karachi, Province of Sindh, South, Pakistan. These financial statements have been prepared under the historical cost convention except:
- obligations under the defined benefit plan are stated at present value;
Manufacturing Facility: - biological assets i.e. livestock are stated at fair value less estimated point-of-sale costs; and
a) 200-201, Gadoon Amazai Industrial Estate, District Swabi, Province of Khyber Pakhtunkhwa, North, Pakistan. - investment in associates are accounted for using equity method.
b) 57 Km on Super Highway (near Karachi), Province of Sindh, South, Pakistan.
3.3 Functional and presentation currency
Liaison Office: Items included in the financial statements are measured using the currency of the primary economic environment in which the
Syed’s Tower, Third Floor, Opposite Custom House, Jamrud Road, Peshawar, Province of Khyber Pakhtunkhwa, North, Pakistan. Company operates. These financial statements are presented in Pakistani Rupees, which is the Company’s functional and
presentation currency.
2. SCHEME OF ARRANGEMENT
3.4 Critical accounting judgements and key sources of estimation uncertainty
During last year, a Scheme of Arrangement (Scheme) was filed by management of Lucky Holdings Limited (LHL) - an In the application of the Company’s accounting policies, which are described in note 4, management is required to make
associate, before the Sindh High Court (SHC), after the required approvals from the Board of Directors and shareholders judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from
of LHL. other sources. The estimates and associated assumptions are based on historical experience and other factors that are
considered to be relevant. Actual results may differ from these estimates.
The SHC vide its order dated April 11, 2019 sanctioned the Scheme effective from start of business on July 01, 2018. A
certified copy of the Court order has been filed by LHL with the Securities and Exchange Commission of Pakistan (SECP). The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized
in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and in future
The Scheme, amongst other arrangements, determines LHL Demerged Undertakings as primarily comprising the assets, periods, if the revision affects both current and future periods.
liabilities and obligations of LHL relating to its underlying investment in ICI Pakistan Limited - an associate. Under the
Scheme, the share of LHL Shareholders in LHL Demerged Undertakings proportionate to their respective shareholding Novel Coronavirus (COVID-19)
in LHL were amalgamated with and into their respective wholly owned subsidiary companies and their proportionate The Novel Coronavirus (COVID-19) pandemic, confirmed in January 2020, has caused widespread business disruptions
shares in LHL to that extent were cancelled. Consequently, out of Company's total investments in LHL, an amount of Rs. around the world resulting in a negative impact on economic activities, including our business, which is being planned and
164.12 million was transferred to Gadoon Holdings Private Limited (GHPL). curtailed accordingly.
Last year, cancellation of shares of LHL (refer note 9.3) by Rs. 184.39 million had resulted in reduction in deferred tax Subsequent to reporting date, the lockdown has been eased, and with the number of recoveries increasing day by day,
liability pertaining to LHL by Rs. 16.48 million and amount was transferred as an investment in GHPL of Rs. 164.12 million. the economy has started to recover and operations of the Company have resumed accordingly. However, there is still a
This resulted in a loss of Rs. 3.79 million recognized in revenue reserves of the Company. chance that possible rise in infection may lead to fresh lockdown scenario.
During the year, in accordance with section 284 of the Companies Act, 2017, GHPL has been merged in to the Company The Company, in order to outweigh the negative impact of this pandemic and to manage its working capital requirement
vide order no. CRO-I/0017553/927/10213 dated August 13, 2020, from the SECP which led to recognition of following has availed the facilities announced by the State Bank of Pakistan to its full extent, including rescheduling of long term
assets and liabilities of GHPL w.e.f. July 01, 2019: finance facilities and foreign exchange loan.
Critical judgements
Management has made the following judgements, apart from those involving estimations, which have the most significant
effect on the amounts recognized in the financial statements. The areas where various assumptions and estimates are
significant to the Company's financial statements or where judgement was exercised in application of accounting policies
are as follows:

The areas where various assumptions and estimates are significant to the Company's financial statements or where Effective from accounting period
judgement was exercised in application of accounting policies are as follows: beginning on or after:
a) determining the residual values and useful lives of the property, plant and equipment (note 4.1); Amendments to IAS 1 'Presentation of Financial Statements'
b) valuation of biological assets (note 4.2); and IAS 8 'Accounting Policies, Changes in Accounting Estimates and Errors' January 01, 2020
c) provisions - for slow moving stores, spares and loose tools (note 4.3); - Definition of material.
d) valuation of stock-in-trade - at lower of cost and NRV (note 4.4);
e) provisions - for loss allowance (note 4.5); Amendments to IFRS 9 'Financial Instruments', IAS 39 'Financial Instruments: January 01, 2020
f) impairment of financial and non financial assets (notes 4.9.2); Recognition and Measurement' and IFRS 7 'Financial Instruments: Disclosures'
g) provisions - for doubtful advances (note 4.9.2); - Interest rate benchmark reform.
h) provision for taxation including deferred tax (note 4.11);
i) accounting for retirement benefit obligation (note 4.12); and Amendment to IFRS 16 'Leases' - COVID-19 related rent concessions. January 01, 2020
j) provisions against liability and contingencies (note 4.15).
Amendments to IAS 1 'Presentation of Financial Statements' January 01, 2023
3.5 Changes in accounting standards and interpretations - Classification of liabilities as current or non-current.
3.5.1 New accounting standards, amendments and IFRS interpretations that are effective for the year ended June 30, 2020 Amendments to IFRS 3 'Business Combinations' January 01, 2022
The following standards, amendments and interpretations are effective for the year ended June 30, 2020. These - Reference to the conceptual framework.
standards, amendments and interpretations are either not relevant to the Company's operations or are not expected
to have significant impact on the Company's financial statements other than certain additional disclosures. Amendments to IAS 16 'Property, Plant and Equipment' January 01, 2022
- Proceeds before intended use.
Effective from accounting period
beginning on or after: Amendments to IAS 37 'Provisions, Contingent Liabilities and Contingent Assets' January 01, 2022
- Onerous Contracts - cost of fulfilling a contract.
IFRS 16 'Leases'. January 01, 2019
Certain annual improvements have also been made to a number of IFRSs.
IFRS 14 'Regulatory Deferral Accounts'. July 01, 2020
Other than the aforesaid standards, interpretations and amendments, the IASB has also issued the following standards
Amendments to IFRS 9 'Financial Instruments' January 01, 2019 which have not been adopted locally by the SECP:
- prepayment features with negative compensation.
- IFRS 1 'First Time Adoption of International Financial Reporting Standards'
Amendments to IAS 28 'Investments in Associates and Joint Ventures' January 01, 2019 - IFRS 17 'Insurance Contracts'
- Long term interests in associates and joint ventures.
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Amendments to IAS 19 'Employee Benefits' January 01, 2019
- Plan amendment, curtailment or settlements. The significant accounting policies adopted in the preparation of these financial statements are the same as those applied in
the preparation of the financial statements of the Company for the year ended June 30, 2019.
IFRIC 23 'Uncertainty over Income Tax Treatments'. January 01, 2019
4.1 Property, plant and equipment
Certain annual improvements have also been made to a number of IFRSs. 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 less impairment losses, if any.
3.5.2 New accounting standards and amendments that are not yet effective
The following standards, amendments and interpretations are only effective for accounting periods, beginning on or after All expenditure connected with specific assets incurred during installation and construction period are carried under capital
the date mentioned against each of them. These standards, interpretations and the amendments are either not relevant work-in-progress. These are transferred to specific assets as and when these assets are available for intended use.
to the Company's operations or are not expected to have significant impact on the Company's financial statements other
than certain additional disclosures. Depreciation is charged, from the month when the asset is available for use and ceased from the month of disposal, to the
statement of profit or loss applying the reducing balance method except for leasehold land, which is depreciated using the
Effective from accounting period straight-line method. The residual values, useful lives and depreciation methods are reviewed and changes, if any, are treated as
beginning on or after: change in accounting estimates, at each reporting date. Rates for depreciation are stated in note 5.1 to the financial statements.
Amendments to the conceptual framework for financial January 01, 2020 Maintenance and repairs are charged to the statement of profit or loss as and when incurred. Major renewals and improvements
reporting, including amendments to references to the conceptual are capitalized and the assets so replaced, if any, are retired.
framework in IFRS.
Gains and losses on disposal of assets are taken to the statement of profit or loss as and when incurred.
Amendments to IFRS 3 'Business Combinations' - Definition of a business. January 01, 2020

4.2 Biological assets 4.7 Cash and cash equivalents
Livestock are measured at their fair value less estimated point-of-sale costs. Fair value of livestock is determined by an independent Cash and cash equivalents for cash flow purposes include cash in hand, current and deposit accounts held with banks.
valuer on the basis of best available estimates for livestock of similar attributes. Short term borrowings (except export re-finance) availed by the Company which are payable on demand and form an
integral part of the Company’s cash management are included as part of cash and cash equivalents for the purpose of
Biological assets have been classified at level 1 of fair value hierarchy as disclosed in note 39 to the financial statements. the statement of cash flows.
Gains or losses arising from changes in fair value less estimated point-of-sale costs of livestock are recognized in the statement 4.8 Investments
of profit or loss.
Investment in associates
4.3 Stores, spares and loose tools Associates are entities over which the Company exercises significant influence. Investment in associates is accounted
These are stated at lower of cost and net realizable value. Cost is determined using moving average method. Items in transit for using equity basis of accounting, under which the investment in associate is initially recognized at cost and the
are stated at invoice value plus other charges incurred thereon until the reporting date. carrying amount is increased or decreased to recognize the Company’s share of profit or loss of the associate after the
date of acquisition. The Company’s share of profit or loss of the associate is recognized in the statement of profit or loss.
For items that are slow moving adequate provision is made, if necessary, for any excess carrying value over estimated Distributions received from associate reduce the carrying amount of the investment. Adjustments to the carrying
realizable value and charged to the statement of profit or loss. amount are also made for changes in the Company’s proportionate interest in the associate arising from changes
in the associates’ other comprehensive income that have not been recognized in the associate’s statement of profit or
4.4 Stock-in-trade loss. The Company’s share of those changes is recognized in the statement of comprehensive income of the Company.
Basis of valuation is as under:
- Raw material in hand (imported) Lower of cost (weighted average / specific identification The carrying amount of the investment is tested for impairment, by comparing its recoverable amount (higher of value in use
basis) and net realizable value (NRV) and the fair value less costs to sell) with its carrying amount and loss, if any, is recognized in the statement of profit or loss.
- Raw material in hand (local) Lower of cost (weighted average) and NRV
- Raw material in hand (feed) Lower of cost (weighted average) and NRV 4.9 Financial instruments
- Raw material in-transit Cost accumulated to end of reporting period
- Work-in-process Lower of cost (weighted average) and NRV 4.9.1 Financial assets
- Finished goods Lower of cost (weighted average) and NRV All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. Regular way
- Finished goods (milk) Fair value less estimated point-of-sale costs purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame
- Waste NRV established by regulation or convention in the marketplace. All recognized financial assets are measured subsequently
in their entirety at either amortized cost or fair value, depending on the classification of the financial assets.
Cost in relation to work-in-process and finished goods represents annual average manufacturing cost which consists of
prime cost and appropriate manufacturing overheads. Financial assets at amortized cost
Instruments that meet the following conditions are measured subsequently at amortized cost:
NRV signifies the estimated selling price in the ordinary course of business less estimated cost of completion and
estimated cost necessary to be incurred to effect such sale. - the financial asset is held within a business model whose objective is to hold financial assets in order to collect
contractual cash flows; and
4.5 Trade debts and other receivables
Trade debts and other receivables are recognized initially at fair value and subsequently measured at amortized cost less - the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
loss allowance, if any. The Company always measures the loss allowance for trade debts at an amount equal to lifetime principal and interest on the principal amount outstanding.
Expected Credit Losses (ECL). The expected credit losses on trade debts are estimated using a provision matrix by
reference to past default experience of the debtors and an analysis of the debtors' current financial position, adjusted Financial assets at fair value through profit or loss (FVTPL)
for factors that are specific to the debtors, general economic conditions of the industry in which the debtors operate Financial assets that do not meet the criteria for being measured at amortized cost or fair value through other
and an assessment of both the current as well as the forecast direction of conditions at the reporting date. comprehensive income (FVTOCI) are measured at fair value through profit or loss (FVTPL). Specifically:
There has been no change in the estimation techniques or significant assumptions made during the current reporting period. - Investments in equity instruments are classified as at FVTPL, unless the Company designates an equity investment that is
neither held for trading nor a contingent consideration arising from a business combination as at FVTOCI on initial recognition.
Trade debts and other receivables considered irrecoverable are written off.
- Debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria are classified as at FVTPL. In
4.6 Derivative financial instruments addition, debt instruments that meet either the amortized cost criteria or the FVTOCI criteria may be designated as at
Derivatives that do not qualify for hedge accounting are recognized in the statement of financial position at estimated FVTPL upon initial recognition if such designation eliminates or significantly reduces a measurement or recognition
fair value with corresponding effect to the statement of profit or loss. Derivative financial instruments are carried as inconsistency (so called ‘accounting mismatch’) that would arise from measuring assets or liabilities or recognising the
assets when fair value is positive and liabilities when fair value is negative. gains and losses on them on different bases. The Company has not designated any debt instruments as at FVTPL.
Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any fair value gains or
losses recognized in the statement of profit or loss.

Derecognition (ii) Definition of default
The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or The Company employs statistical models to analyze the data collected and generate estimates of probability of default
when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another ('PD') of exposures with the passage of time. This analysis includes the identification for any changes in default rates and
entity. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues changes in key macro-economic factors across various geographies of the Company.
to control the transferred asset, the Company recognizes its retained interest in the asset and an associated liability for
amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred (iii) Credit-impaired financial assets
financial asset, the Company continues to recognize the financial asset and also recognizes a collateralized borrowing for A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash
the proceeds received. flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data
about the following events:
On derecognition of a financial asset measured at amortized cost, the difference between the asset’s carrying amount
and the sum of the consideration received and receivable is recognized in the statement of profit or loss. In addition, on (a) significant financial difficulty of the issuer or the borrower;
derecognition of an investment in a debt instrument classified as at FVTOCI, the cumulative gain or loss previously (b) a breach of contract, such as a default or past due event (see (ii) above);
accumulated in the investments' revaluation reserve is reclassified to the statement of profit or loss. In contrast, on (c) the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty,
derecognition of an investment in equity instrument which the Company has elected on initial recognition to measure at having granted to the borrower a concession(s) that the lender(s) would not otherwise consider;
FVTOCI, the cumulative gain or loss previously accumulated in the investments' revaluation reserve is not reclassified to (d) it is becoming probable that the borrower will enter bankruptcy or other financial reorganization; or
the statement of profit or loss, but is transferred to retained earnings. (e) the disappearance of an active market for that financial asset because of financial difficulties.
4.9.2 Impairment of financial assets (iv) Measurement and recognition of ECL

The Company recognizes a loss allowance for ECL on trade debts. The amount of ECL is updated at each reporting date The measurement of ECL is a function of the probability of default, loss given default (i.e. the magnitude of the loss if
to reflect changes in credit risk since initial recognition of the respective financial assets. there is a default) and the exposure at default. The assessment of the probability of default and loss given default
is based on historical data adjusted by forward-looking information as described above. As for the exposure at
The Company always recognizes lifetime ECL for trade debts. The ECL on these financial assets are estimated using a default, for financial assets, this is represented by the assets’ gross carrying amount at the reporting date; for
provision matrix based on the Company’s historical credit loss experience, adjusted for factors that are specific to the financial guarantee contracts, the exposure includes the amount drawn down as at the reporting date, together with
debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at any additional amounts expected to be drawn down in the future by default date determined based on historical trend,
the reporting date, including time value of money where appropriate. the Company’s understanding of the specific future financing needs of the debtors, and other relevant forward-looking
information.
For all other financial assets, the Company recognizes lifetime ECL when there has been a significant increase in credit
risk since initial recognition. However, if the credit risk on the financial instrument has not increased significantly since For financial assets, the expected credit loss is estimated as the difference between all contractual cash flows that are
initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month due to the Company in accordance with the contract and all the cash flows that the Company expects to receive, discounted
ECL. The assessment of whether lifetime ECL should be recognized is based on significant increases in the likelihood or at the original effective interest rate.
risk of a default occurring since initial recognition instead of on evidence of a financial asset being credit-impaired at the
reporting date. Non-financial assets
Lifetime ECL represents the ECL that will result from all possible default events over the expected life of a financial The Company assesses at each reporting date whether there is any indication that assets except inventories, biological
instrument. In contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result from default assets and deferred tax asset may be impaired. If such indication exists, the carrying amounts of such assets are
events on a financial instrument that are possible within 12 months after the reporting date. reviewed to assess whether they are recorded in excess of their recoverable amount. Where carrying values exceed the
respective recoverable amount, assets are written down to their recoverable amounts and the resulting impairment loss
(i) Significant increase in credit risk is recognized in the statement of profit or loss. The recoverable amount is the higher of an asset's 'fair value less costs
In assessing whether the credit risk on a financial instrument has increased significantly since initial recognition, the to sell' and 'value in use'.
Company compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a
default occurring on the financial instrument as at the date of initial recognition. In making this assessment, the Company Where impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised recoverable
considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and amount but limited to the extent of the carrying amount that would have been determined (net of amortization or
forward-looking information that is available without undue cost or effort. depreciation) had no impairment loss been recognized. Reversal of impairment loss is recognized as income in the statement
of profit or loss.
For financial guarantee contracts, the date that the Company becomes a party to the irrevocable commitment is considered
to be the date of initial recognition for the purposes of assessing the financial instrument for impairment. In assessing 4.9.3 Financial liabilities
whether there has been a significant increase in the credit risk since initial recognition of a financial guarantee contracts, All financial liabilities are measured subsequently at amortized cost using the effective interest method or at FVTPL.
the Company considers the changes in the risk that the specified debtor will default on the contract.
Financial liabilities at FVTPL
The Company regularly monitors the effectiveness of the criteria used to identify whether there has been a significant Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on changes in fair value recognized
increase in credit risk and revises them as appropriate to ensure that the criteria are capable of identifying significant in the statement of profit or loss to the extent that they are not part of a designated hedging relationship. The net gain
increase in credit risk before the amount becomes past due. or loss recognized in the statement of profit or loss incorporates any interest paid on the financial liability.

Financial liabilities measured subsequently at amortized cost 4.13 Foreign currency transactions and translation
Financial liabilities that are not designated as FVTPL, are measured subsequently at amortized cost using the effective Transactions in foreign currencies are translated into Pak Rupees at the rates of exchange approximating those prevailing
interest method. The effective interest method is a method of calculating the amortized cost of a financial liability and of on the date of the transaction. At each reporting date, monetary assets and liabilities that are denominated in foreign
allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated currencies are retranslated into Pak Rupees at the rates prevailing on the reporting date.
future cash payments (including all fees and points paid or received that form an integral part of the effective interest
rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where Gains and losses arising on retranslation are included in the statement of profit or loss for the period.
appropriate) a shorter period, to the amortized cost of a financial liability. Borrowing costs are recognized as an expense
in the period in which these are incurred except to the extent of borrowing costs that are directly attributable to the 4.14 Revenue recognition
acquisition, construction or production of a qualifying asset. Such borrowing costs, if any, are capitalized as part of the Revenue from contracts with customers is recognized at the point in time when the performance obligation is satisfied
cost of that asset. i.e. control of the goods is transferred to the customer at an amount that reflects the consideration to which the Company
expects to be entitled to in exchange for those goods.
Derecognition of financial liabilities
The Company derecognizes financial liabilities when, and only when, the Company’s obligations are discharged, cancelled Interest income is recognized on a time proportionate basis using the effective rate of return.
or have expired. The difference between the carrying amount of the financial liability derecognized and the consideration
paid and payable is recognized in the statement of profit or loss. 4.15 Provisions
Provisions are recognized when the Company has a present, legal or constructive obligation as a result of past event, it
4.9.4 Offsetting of financial assets and financial liabilities is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a
Financial assets and financial liabilities are offset and the net amount is reported in the financial statements only when reliable estimate of the amount can be made. Provisions are reviewed at each reporting date and adjusted to reflect the
there is legally enforceable right to set-off the recognized amounts and the Company intends either to settle on a net current best estimate.
basis or to realize the assets and to settle the liabilities simultaneously.
4.16 Dividend and appropriation to / from reserves
4.10 Borrowings and their costs Dividend distribution to the Company's shareholders and appropriation to / from reserves is recognized in the period in
Borrowings are recognized initially at fair value, net of transaction costs incurred, and subsequently at amortized cost. which these are approved.
4.11 Taxation 4.17 Operating segments

Income tax expense comprises current and deferred tax. Income tax expense is recognized in the statement of profit or loss. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker. The Board of Directors has identified different chief operating decision makers responsible for strategic
Current decisions of all the reportable segments.
Provision for current taxation is based on taxability of certain income streams of the Company under presumptive / final
tax regime at the applicable tax rates and remaining income streams chargeable at current rate of taxation under the Operating segments that do not meet the quantitative thresholds, as defined in IFRS 8 'Operating Segments', has not been
normal tax regime after taking into account tax credits and tax rebates available, if any. The charge for income tax considered as reportable segments in these financial statements.
includes adjustments to charge for prior years.
4.18 Earnings per share
Deferred
Deferred tax is recognized using the liability method, providing for temporary difference between the carrying amount The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated
of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of
deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and ordinary shares outstanding during the year. Diluted EPS is determined by adjusting the profit or loss attributable to
liabilities, using the tax rates enacted or substantively enacted at the reporting date. ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive
potential ordinary shares.
In this regard, the effects on deferred taxation of the portion of income subject to final tax regime is also considered in
accordance with the requirement of Technical Release – 27 of the Institute of Chartered Accountants of Pakistan. 2020 2019
Note ----------------- (Rupees in ‘000) ----------------
The Company recognizes deferred tax asset to the extent that it is probable that taxable profits for the foreseeable 5. PROPERTY, PLANT AND EQUIPMENT
future will be available against which the assets can be utilized. Deferred tax asset is reduced to the extent that it is no
longer probable that the related tax benefit will be realized.
Operating fixed assets 5.1 9,731,614 9,610,032
Capital work-in-progress 5.2 433,393 260,327
4.12 Retirement benefit obligation - defined benefit plan
10,165,007 9,870,359
The Company operates an unfunded gratuity scheme for its confirmed employees who have completed the minimum
qualifying period of service as defined under the scheme. The Company's obligation under the scheme is determined
through actuarial valuation carried out at each year end under the Projected Unit Credit Method. The most recent valuation
of the scheme was carried out as at June 30, 2020.
Remeasurement changes which comprise actuarial gains and losses are recognized immediately in the statement of
comprehensive income.

5.1 Operating fixed assets 5.1 Operating fixed assets
-------------------------------------------------------------------------------------------------- 2020------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- 2019-------------------------------------------------------------------------------------------
Cost as at Additions/ Transfer Cost as at Accumulated Depreciation Depreciation Accumulated Carrying Rate of Cost as at Additions/ Cost as at Accumulated Depreciation Accumulated Carrying Rate of
Particulars July 01, (Disposals) to store * June 30, depreciation for the transfer depreciation value as at depreciation Particulars July 01, (Disposals) June 30, depreciation for the depreciation value as at depreciation
2019 2020 as at July 01, year/ to store * as at June 30, June 30, 2018 2019 as at July 01, year/ as at June 30, June 30,
2019 (Disposals) 2020 2020 2018 (Disposals) 2019 2019
----------------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------------- % ---------------------------------------------------------------------- (Rupees in '000) --------------------------------------------------------------------- %
Land: Land:
Leasehold 83,148 - - 83,148 10,311 1,551 - 11,862 71,286 1 Leasehold 59,180 23,968 83,148 9,712 599 10,311 72,837 1
Freehold 880 - - 880 - - - - 880 - Freehold 880 - 880 - - - 880 -
Buildings on leasehold land: Buildings on leasehold land:

Mills 2,159,482 26,949 - 2,186,431 1,123,692 105,263 - 1,228,955 957,476 10 Mills 2,034,399 125,083 2,159,482 1,019,549 104,143 1,123,692 1,035,790 10
Roads 47,456 - - 47,456 23,347 2,411 - 25,758 21,698 10 Roads 47,456 - 47,456 20,668 2,679 23,347 24,109 10
Power plant 178,146 15,337 - 193,483 106,984 8,011 - 114,995 78,488 10 Power plant 178,146 - 178,146 99,077 7,907 106,984 71,162 10
Office 60,513 - - 60,513 27,096 3,342 - 30,438 30,075 10 Office 60,513 - 60,513 23,383 3,713 27,096 33,417 10
Workers' colony 202,539 - - 202,539 88,957 1,121 - 90,078 112,461 10 Workers' colony 202,539 - 202,539 76,337 12,620 88,957 113,582 10
Other 593,147 1,739 - 594,886 169,768 21,223 - 190,991 403,895 5 Other 432,500 160,647 593,147 155,066 14,702 169,768 423,379 5
Buildings on freehold land: Buildings on freehold land:

Family colony 179,396 - - 179,396 105,487 17,889 - 123,376 56,020 10 Family colony 179,396 - 179,396 97,275 8,212 105,487 73,909 10
Workers' colony 123,727 - - 123,727 99,076 2,465 - 101,541 22,186 10 Workers' colony 123,727 - 123,727 96,337 2,739 99,076 24,651 10
Plant and machinery 12,474,195 1,063,319 (47,019) 13,457,212 6,141,994 685,188 (20,460) 6,777,773 6,679,439 10 Plant and machinery 10,672,861 2,166,657 12,474,195 5,947,979 514,901 6,141,994 6,332,201 10
(33,283) (28,949) (365,323) (320,886)
Power plant 1,783,692 18,292 - 1,801,984 790,265 100,348 - 890,613 911,371 10 Power plant 1,247,234 536,458 1,783,692 731,910 58,355 790,265 993,427 10
Electric installations 457,289 8,583 - 458,135 289,166 17,066 - 302,838 155,297 10 Electric installations 456,331 958 457,289 270,530 18,636 289,166 168,123 10
(7,737) (3,394)
Tools and equipment 33,410 976 - 34,386 11,221 2,267 - 13,488 20,898 10 Tools and equipment 13,774 19,636 33,410 10,937 284 11,221 22,189 10
Furniture and fittings 29,793 309 - 25,204 14,753 1,162 - 15,633 9,571 10 Furniture and fittings 24,895 4,898 29,793 13,444 1,309 14,753 15,040 10
(4,898) - (282)
Computer equipment 30,749 11,259 - 33,566 21,798 4,070 - 19,986 13,580 30 Computer equipment 24,675 6,148 30,749 18,694 3,160 21,798 8,951 30
(8,442) (5,882) (74) (56)
Office equipment and installations 25,217 3,006 - 24,963 14,074 1,110 - 14,342 10,621 10 Office equipment and installations 23,470 1,762 25,217 12,943 1,136 14,074 11,143 10
(3,260) - (842) (15) (5)
Fork lifters and tractors 38,094 4,481 - 42,575 32,397 1,581 - 33,978 8,597 20 Fork lifters and tractors 38,094 - 38,094 30,973 1,424 32,397 5,697 20
Vehicles 273,447 39,889 - 279,812 98,513 37,453 - 116,183 163,629 20 Vehicles 248,197 72,976 273,447 94,176 37,796 98,513 174,934 20
(33,524) (19,783) (47,726) (33,459)
Fire fighting equipment 11,847 - - 11,778 7,236 461 - 7,632 4,146 10 Fire fighting equipment 11,847 - 11,847 6,724 512 7,236 4,611 10
(69) (65)
June 30, 2020 18,786,167 1,194,139 (47,019) 19,842,074 9,176,135 1,013,982 (20,460) 10,110,460 9,731,614 June 30, 2019 16,080,114 3,119,191 18,786,167 8,735,714 794,827 9,176,135 9,610,032
(91,213) (59,197) (413,138) (354,406)
Additions to operating fixed assets include transfers from capital work-in-progress amounting to Rs. 1.17 billion.
Additions to operating fixed assets include transfers from capital work-in-progress amounting to Rs. 3.01 billion.
* This represents transfer of spare parts of obsolete machinery to spares in hand (refer note 10).

5.1.1 Depreciation charged for the year has been allocated as under: 6. BIOLOGICAL ASSETS
2020 2019 2020
Note ----------------- (Rupees in ‘000) ---------------- Note (Rupees in ‘000)
Dairy livestock
Cost of sales 25.1 984,709 765,781 - Mature 170,262
Administrative expenses 27 29,273 29,046 - Immature 19,952
6.1 190,214
1,013,982 794,827
6.1 Reconciliation of biological assets

5.1.2 Disposal of operating fixed assets having net book value in excess of Rs. 500,000
Balance as at July 1 6.2 129,665
Purchases during the year 30,389
Description Cost Accumulated Carrying Sale (Loss) / gain Mode of disposal Purchaser
Livestock expired (3,273)
depreciation value proceeds
Sale of livestock (19,398)
---------------------------- (Rupees in '000) ------------------------------- Gain on fair valuation of livestock due to:
- new births 13,380
Plant and machinery 9,651 8,738 913 534 (379) Negotiation M/s. AMS Enterprises
- price and age change 39,451
11,594 9,850 1,744 684 (1,060) Negotiation M/s. AMS Enterprises
52,831
21,245 18,588 2,657 1,218 (1,439)
Vehicle 5,310 3,348 1,962 4,050 2,088 Negotiation M/s. Ahmed Motors
Balance as at June 30 190,214
6,096 1,460 4,636 7,100 2,464 Negotiation M/s. Lucky Landmark (Pvt) Ltd.
8,165 6,168 1,997 2,000 3 Negotiation M/s. Shoaib Salman Textile Mills
2,044 451 1,593 1,901 308 Negotiation M/s. Lucky Knits (Pvt) Ltd.
6.2 As at July 01, 2018, the balance of loans and advances included the advance given for pilot project of dairy farm. The
1,870 1,194 676 1,309 633 Negotiation Mr. Shafqat Mumtaz Ahmed Sain
dairy project started its commercial operations on and from June 30, 2019. Hence, comparative figures have not been
1,787 1,259 528 1,500 972 Negotiation M/s. Al-Falah Insurance Company
presented in these financial statements.
25,272 13,880 11,392 17,860 6,468
6.3 At June 30, 2020, the Company held 608 mature livestock - including pregnant livestock (2019: 265 mature livestock)
Leasehold and freehold land pertain to the manufacturing facilities having combined area of 137.8 acres.
able to produce milk and 225 immature livestock (2019: 351 immature livestock) which are being raised to produce milk
in the future.
5.2 Capital work-in-progress
6.4 During the year, the Company produced approximately 2,922,044 gross liters of milk from mature livestock.
Gadoon Amazai Karachi Project
Civil Plant and Vehicles Markup Sub-total Civil Plant and Vehicles Markup Sub-total Total
works machinery capitalized works machinery capitalized
6.5 As at June 30, 2020, the Company held 27 breeding bulls (2019: 12 breeding bulls).
---------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------
Year ended June 30, 2020 6.6 The valuation of dairy livestock as at June 30, 2020 has been carried out by an independent valuer. In this regard the valuer
examined the physical condition of the livestock, assessed the key assumptions and estimates and relied on the representations
Balance as at July 1, 2019 21,198 40,755 - 676 62,629 190,316 - - 7,382 197,698 260,327 made by the Company. Livestock has been valued on the basis of market values of livestock of similar attribute.
Additions during the year 61,473 320,758 29,081 11,730 423,042 93,910 778,539 12,810 38,873 924,132 1,347,174
Transfers to operating fixed assets (34,864) (350,642) (27,078) (11,106) (423,690) (7,493) (721,826) (12,810) (8,289) (750,418) (1,174,108) 6.7 Cost to sell is considered immaterial and has not been taken into account while valuing the biological assets.
Balance as at June 30, 2020 47,807 10,871 2,003 1,300 61,981 276,733 56,713 - 37,966 371,412 433,393 7. LONG TERM ADVANCE
2020 2019
Year ended June 30, 2019 Note ----------------- (Rupees in ‘000) ----------------
- Considered doubtful
Balance as at July 1, 2018 - 241,015 5,365 42,217 288,597 100,284 51,809 5,223 1,615 158,931 447,528
Additions during the year 69,366 1,189,221 48,376 16,841 1,323,804 262,856 1,189,245 14,011 36,980 1,503,092 2,826,896 Investment in a joint venture - Advance 7.1 66,667 66,667
Transfers to operating fixed assets (48,168) (1,389,481) (53,741) (58,382) (1,549,772) (172,824) (1,241,054) (19,234) (31,213) (1,464,325) (3,014,097) Less: Provision against advance (66,667) (66,667)
- -
Balance as at June 30, 2019 21,198 40,755 - 676 62,629 190,316 - - 7,382 197,698 260,327
7.1 This represents first and second tranche of advance for a Joint Venture Project of Rs. 4,250 million. The principal activity
of the Joint Venture Project was acquisition and development of a real estate project in Karachi through a Joint Venture
Company. The Company's share in this Joint Venture project is ten percent. Currently, the future of this project is not
certain and the recovery of this amount is considered doubtful.

8. LONG TERM LOANS 2020 2019
2020 2019 ----------------- (Rupees in ‘000) ----------------
Note ----------------- (Rupees in ‘000) ----------------
- Considered good
Loan to employees Balance as at July 01 1,946,416 1,661,022
Shares granted due to restructuring - 178,078
Related parties - Key management personnel 21,720 31,781 Share of profit 170,273 195,190
Other employees 41,755 31,734 Share of other comprehensive (loss) / income (2,987) 1,713
8.1 63,475 63,515 Disposal of shares - (2,980)
Less: current portion of long term loans 13 (23,843) (19,838) Dividend received (103,150) (86,607)
39,632 43,677 Balance as at June 30 2,010,552 1,946,416
8.1 These are interest free loans recoverable in monthly instalments over a period of three years. These loans are secured The financial year end of ICIP is June 30, 2020. Summarized financial highlights of ICIP and the related share of the Company as
against employees' retirement benefit obligation. at reporting date are as follows:
8.2 The maximum amount of loans to the key management personnel outstanding at the end of any month during the year 2020 2019
ended June 30, 2020 was Rs. 29.74 million (2019: Rs. 48.08 million). Note ----------------- (Rupees in ‘000) ----------------
9. LONG TERM INVESTMENTS

Total assets 48,450,442 49,455,764
2020 2019
Note ----------------- (Rupees in ‘000) ---------------- Total liabilities (26,069,203) (28,066,782)
Net assets 22,381,239 21,388,982
Company's share of net assets 1,613,687 1,542,146
Investments in associates - equity method 9.1 3,150,556 2,890,606
Revenue 55,257,636 59,414,013
9.1 Investment in associates - equity method Profit for the year 2,361,616 2,548,757
Company's share of profit 170,273 183,765
ICI Pakistan Limited (ICIP) 9.2 2,010,552 1,946,416
Other comprehensive (loss) / income for the year (66,578) 23,018
Lucky Holdings Limited (LHL) 9.3 1,816 4,284
Yunus Energy Limited (YEL) 9.4 1,138,188 939,906 Company's share of other comprehensive (loss) / income (4,800) 1,660
3,150,556 2,890,606
9.1.1 The Company's investment in ICIP, LHL and YEL is less than 20% but these are considered associates as the Company 9.3 Investment in Lucky Holdings Limited (LHL) - at equity method
has significant influence over the financial and operating policies through representation on the Board of Directors of
these companies. Number of shares held 8,580 8,580
Cost of investment (Rupees in ‘000) 429 429
9.1.2 The principal place of business of all the associates is located in Pakistan.
Ownership interest 1% 1%
9.2 Investment in ICI Pakistan Limited (ICIP) - at equity method

Balance as at July 01 4,284 185,341
2020 2019
Cancellation of shares due to restructuring 9.3.1 - (184,396)
----------------- (Rupees in ‘000) ----------------
Share of profit 2,551 3,339
Dividend received (5,019) -
Number of shares held 6,654,867 6,654,867 Balance as at June 30 1,816 4,284
Cost of investment (Rupees in '000) 1,341,311 1,341,311
Fair value of investment (Rupees in '000) 4,623,203 3,543,517
Ownership interest 7.21% 7.21% 9.3.1 Investment in LHL had been calculated after incorporating the effect of transaction as appearing in note 2 to these
financial statements.
The financial year end of LHL is June 30, 2020. Summarized financial highlights of LHL as at reporting date and the related
share of the Company are as follows:

2020 2019 10. STORES, SPARES AND LOOSE TOOLS
----------------- (Rupees in ‘000) ---------------- Note 2020 2019
----------------- (Rupees in ‘000) ----------------
Total assets 536,738 775,242
Stores 233,292 246,236
Total liabilities (384,341) (375,827)
Spares in
Net assets 152,397 399,415 - hand 407,601 350,002
Company's share of net assets 1,524 3,994 - transit 42,263 61,366
Revenue 398,306 423,750 Loose tools 1,576 1,035
684,732 658,639
Profit for the year 254,912 333,941
Less: Provision for slow moving stores, spares and loose tools (52,101) (52,101)
Company's share of profit 2,550 3,339 632,631 606,538
9.4 Investment in Yunus Energy Limited (YEL) - at equity method 11. STOCK-IN-TRADE
Number of shares held 61,136,500 61,136,500 Raw material in

Cost of investment (Rupees in ‘000) 611,365 611,365 - hand 10,455,994 6,080,886
Ownership interest 19.98% 19.98% - transit 74,072 632,267
- feed 15,435 9,186
Balance as at July 01 939,906 840,557 10,545,501 6,722,339
Share of profit 319,706 284,034
Work-in-process 351,227 345,359
Share of other comprehensive income / (loss) 849 (1,275)
Finished goods
Dividend received (122,273) (183,410)
- yarn 1,912,545 1,261,788
Balance as at June 30 1,138,188 939,906 - knitted fabric 39,143 41,104
- waste 65,776 36,522
- unprocessed milk 234 249
The financial year end of YEL is June 30, 2020. Summarized financial highlights of YEL as at reporting date and the related share of 2,017,698 1,339,663
the Company are as follows: 12,914,426 8,407,361
2020 2019
----------------- (Rupees in ‘000) ---------------- 12. TRADE DEBTS
Total assets 13,225,251 12,470,429 Considered good
Total liabilities (7,604,771) (7,854,603) Foreign - Secured 491,004 1,103,762

Net assets 5,620,480 4,615,826 Local - Unsecured 12.1 1,841,947 2,413,985
2,332,951 3,517,747
Company's share of net assets 1,122,972 922,242
Considered doubtful
Revenue 3,451,067 2,939,540
Profit for the year 1,600,136 1,420,174 Local - Unsecured 97 4,093
Provision for loss allowance (97) (4,093)
Company's share of profit 319,706 283,750 - -
Other comprehensive income / (loss) for the year 4,249 (6,379) 2,332,951 3,517,747
Company's share of other comprehensive income / (loss) 849 (1,275)
12.1 The balance includes trade balances outstanding from associated companies as follows:
Lucky Textile Mills Limited 1,483 17,103

Lucky Knits (Private) Limited 1,798 1,798
3,281 18,901
12.2 The maximum amount due from related parties, at the end of any month during the year were Rs. 119.69 million (2019: Rs. 78.49
million). The transactions with associated companies are carried on agreed terms.

12.3 Following are the details of debtors in relation to export sales: 14. OTHER RECEIVABLES
2020 2019
2020 2019 Note ----------------- (Rupees in ‘000) ----------------
Jurisdiction Category Note ----------------- (Rupees in ‘000) ---------------- Considered good
Sales tax 300,218 430,644
Asia Letter of credit 166,802 456,919 Rebate receivable on export sales 227,221 256,865
Contract - 183,073 Claims receivable 31,647 4,330
Europe Letter of credit 34,839 27,008 Federal excise duty 2,599 26,201
Contract 65,943 10,510 Others 8,065 1,841
Central America Letter of credit - - 569,750 719,881
Contract - 103,743 Considered doubtful
North America Contract 223,420 322,509 Claims receivable 23.1.2 20,000 20,000
Sales tax 14.1 52,439 52,439
Total Letter of credit 201,641 587,670 Others 14.2 5,600 5,600
Contract 289,363 516,092 78,039 78,039
Provision for doubtful other receivables (78,039) (78,039)
13. LOANS AND ADVANCES - -
- Unsecured - considered good 569,750 719,881
Current portion of long term loans 8 23,843 19,838

Advances to employees 13,500 13,203 14.1 Pursuant to S.R.O. 179 of 2013 dated March 7, 2013, the Company filed a special sales tax return and paid Rs. 52.4 million being
Advance to suppliers and contractors 67,367 89,868 2% of the value of zero rated supplies made by the Company during the period from April 2011 to February 2013. The said
Letters of credit, fee and expenses 3,586 921 amount has been paid by the Company under protest and it has filed an appeal before the tax authority for refund of such amount.
Subordinated loan 13.1.1 13,257 22,521 However, being prudent, the Company has fully provided the amount in these financial statements.
Advance against shares 13.1.2 - 39,566
LC margin 1,374 14,074 14.2 The Company received a demand cum show cause notice for the amount of Rs. 13.17 million from Custom Authorities deleting
122,927 199,991 their Manufacturing Bond Entry for import of Polyester Staple Fiber (PSF). The Company has paid Rs. 5.60 million under protest
against this demand and also made provision for the same amount. Since the goods were imported for re-export, the FBR has
rectified the anomaly through S.R.O. 688(I)/2010 dated July 27, 2010. Management believes that no further provision is required
13.1 This represents subordinated loan and advance against shares in following companies. The shares will be issued in due course for the remaining amount and the amount so paid shall become refundable.
in accordance with the regulatory requirements.
15 CASH AND BANK BALANCES
13.1.1 Subordinated loan 2020 2019
2020 2019 Note ----------------- (Rupees in ‘000) ----------------
Note ----------------- (Rupees in ‘000) ----------------
Cash in hand 11,493 7,950
Tricom Solar Power (Private) Limited 13.1.3 7,510 6,599 Cash with banks
Tricom Wind Power (Private) Limited 13.1.3 - 10,773 - current account 15.1 73,581 104,569
Yunus Wind Power Limited 13.1.3 5,747 5,149 - time deposits 15.2 1,046 -
13,257 22,521 74,627 104,569
86,120 112,519
13.1.2 Advance against shares
Tricom Wind Power (Private) Limited 13.1.3 - 39,566 15.1 It includes balances in foreign currency bank accounts amounting to US Dollars 4,282 equivalent to Rs. 0.72 million (2019: US
- 39,566 Dollars 7,126 equivalent to Rs. 1.16 million).
15.2 These carry markup at the rates ranging from 6.50% to 11.25% per annum.
13.1.3 As part of strategic investments, the Company had given subordinated loan and advance against issuance of shares to Tricom
Solar Power (Private) Limited, Tricom Wind Power (Private) Limited and Yunus Wind Power Limited. Upon expiry of initial 12
months period from previous approval dated April 13, 2018, the Company obtained extension from the shareholders in EOGM
dated March 20, 2019 for a period of four years or till the Project achieves commercial operations, whichever is later.
However, after the re-evaluation carried out by management, the Company decided that it will not proceed with the proposed
investment in Tricom Wind Power (Private) Limited, and that all approvals in this respect be and are hereby withdrawn.

16. ISSUED, SUBSCRIBED AND PAID-UP CAPITAL 2020 2019
2020 2019 2020 2019 Valuation discount rate 8.50% 14.25%

----------- (Number of Shares) ----------- ------------ (Rupees in ‘000) ------------ Salary increase rate (Long term) 8.50% 12.25%
Salary increase rate (Short term) 4.50% for 3 years 9.25% for 3 year
6,000,000 6,000,000 Ordinary shares of Rs. 10 each fully paid in cash 60,000 60,000
Mortality rate Adjusted Adjusted
SLIC 2001-05 SLIC 2001-05
17,437,500 17,437,500 Ordinary shares of Rs. 10 each issued 174,375 174,375
as fully paid bonus shares
18.2 Liability recognized in the statement of financial position
4,592,083 4,592,083 Ordinary shares of Rs. 10 each issued as fully paid in 45,921 45,921 2020 2019
pursuant of amalgamation Note ----------------- (Rupees in ‘000) ----------------
28,029,583 28,029,583 280,296 280,296
Present value of retirement benefit obligation 629,205 562,984
16.1 As at June 30, 2020, Y.B. Holdings (Private) Limited (the Holding Company) hold 19,499,741 (2019: 19,499,741) ordinary shares
18.3 Movement in liability during the year
of Rs. 10 each.
Balance as at July 1 562,984 533,769

16.2 The Company has one class of ordinary shares which carries no right to fixed income. The holders are entitled to receive dividends
Expense recognized in the statement of profit or loss 18.4 263,675 212,939
as declared from time to time and are entitled to one vote per share at meetings of the Company. All shares rank equally with
Liability transferred from dairy farm - 407
regard to the Company's residual assets.
Total remeasurements recognized in
the statement of comprehensive income 18.5 (83,462) (73,048)
17. LONG TERM FINANCE
Benefits paid (113,992) (111,083)
2020 2019 Balance as at June 30 629,205 562,984
----------------- (Rupees in ‘000) ----------------
- Banking companies - secured 18.4 Expense recognized in the statement of profit or loss
Long term finance 3,594,781 2,675,091 Current service cost 191,601 174,681
Less: Current portion of long term finance (68,092) (52,728) Interest cost 72,074 38,258
3,526,689 2,622,363 263,675 212,939
18.5 Total remeasurements recognized in the statement of
The Company has entered into a long term finance agreement with commercial banks, with an approved limit of Rs. 4.30 billion other comprehensive income
(2019: Rs. 3.09 billion). The facility carries a mark-up ranging from SBP Base Rate + 0.1% to SBP Base Rate + 0.6% payable on
a quarterly basis (2019: SBP Base Rate + 0.1% to SBP Base Rate + 0.6% payable on a quarterly basis). The tenure of this facility Actuarial gain on liability arising on
is 10 years including grace period of 2 years, starting from July 10, 2017. The Company has drawn Rs. 3.59 billion upto June - financial assumptions (8,367) (51,546)
30, 2020 (2019: Rs. 2.67 billion). - experience adjustments (75,095) (21,502)
(83,462) (73,048)
The Company in accordance with the facility provided by the SBP has rescheduled its long term finance facilities for the period
of one year. 18.6 Sensitivity analysis
The above financing agreement is secured by pari passu charge over plant and machinery of the Company. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period, while holding all other assumptions constant:
18. RETIREMENT BENEFIT OBLIGATION
2020 2019 Increase / (decrease) in defined
Note ----------------- (Rupees in ‘000) ---------------- benefit obligation
Change in Increase in Decrease in
Retirement benefit obligation 18.1 629,205 562,984 assumption assumption assumption
% ---------------- (Rupees in ‘000) ---------------
18.1 Retirement benefit obligation
Discount rate 1 (7,199) 7,360
The Projected Unit Credit method based on following significant assumptions was used for valuation of the scheme. The basis Salary growth rate 1 10,612 (10,524)
of recognition together with details as per actuarial valuation are as under:
In presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the
Projected Unit Credit method at reporting date, which is the same as that applied in calculating the defined benefit obligation
liability recognized in the statement of financial position.

18.7 The gratuity scheme exposes the Company to the following risks: 20.1 Workers' profit participation fund
2020 2019
Longevity risk: The risk arises when the actual lifetime of retirees is longer than expectation. This risk is measured at the plan Note ----------------- (Rupees in ‘000) ----------------
level over the entire retiree population.
Balance as at July 1 54,397 642
Salary increase risk: The most common type of retirement benefit is one where the benefit is linked with final salary. The risk Provision made during the year 29 17,775 88,314
arises when the actual salaries are higher than expectation and impacts the liability accordingly. Interest on funds utilized in business 28 548 6
Payments made during the year (54,945) (34,565)
Withdrawal risk: The risk of actual withdrawals varying with the actuarial assumptions can impose a risk to the benefit Balance as at June 30 17,775 54,397
obligation. The movement of the liability can go either way.
21. UNCLAIMED DIVIDEND
18.8 The weighted average duration of defined benefit obligation as at June 30, 2020 is 31.68 years (2019: 31.18 years).
Management is in the process of opening an unclaimed dividend account with a scheduled bank, as required by section 244
18.9 Expected maturity analysis of undiscounted retirement benefit plans of the Companies Act, 2017.
2020 2019 2020 2019
Note ----------------- (Rupees in ‘000) ---------------- Note ----------------- (Rupees in ‘000) ----------------
22. SHORT TERM BORROWINGS
Undiscounted payments Banking companies - secured
Year 1 160,481 137,663 Running finance under mark-up arrangements 22.1 7,099,213 8,629,697
More than 1 year 536,989 529,399 Short term finances 22.2 750,000 695,250
19. DEFERRED TAX LIABILITIES Foreign currency loan against:

- Import loan 22.1 2,961,618 -
Balance as at June 30 19.1 810,001 890,390 - Export loan 22.1 768,868 -
- Export refinance 22.3 782,450 601,736
4,512,936 601,736
19.1 Deferred tax liability comprises of taxable / (deductible) temporary differences in respect of following: 12,362,149 9,926,683
2020 2019
Note ----------------- (Rupees in ‘000) ---------------- 22.1 Facilities for running finance, import finance, export finance and export refinance are available from various commercial banks
Deferred credits / (debits) arising due to: upto Rs. 30.64 billion (2019: Rs. 28.61 billion). For running finance facility, the rates of mark-up range between KIBOR + 0.05%
- Accelerated tax depreciation on property, plant and equipment 770,831 894,906 to KIBOR + 0.50% per annum (2019: KIBOR + 0.00% to KIBOR + 0.50% per annum). These are secured against hypothecation
- Provision against retirement benefit obligation (105,776) (111,364) of stock, receivables and plant and machinery. The Company in accordance with the facility provided by the SBP has rescheduled
- Provision against long term advance (11,207) (13,187) its foreign exchange loan for the period of six months.
- Provision against stores, spares and loose tools (8,759) (10,306)
- Provision against doubtful other receivables (13,119) (15,437) 22.2 This represents short term finance facilities under sub-limit of the facilities mentioned in note 22.1 from various commercial
- Gain arising from changes in fair value of livestock 37,925 22,605 banks having mark-up ranging between KIBOR - 0.05% to KIBOR + 0.50% per annum (2019: KIBOR - 0.05% to KIBOR + 0.00%
- Share of profit from associates 140,106 123,173 per annum). These are secured against hypothecation of stock, charge on receivables and plant and machinery.
810,001 890,390
22.3 The rate of mark-up on export re-finance is 2.5% to 3.0% (2019: 2.1% to 2.5%).
20 TRADE AND OTHER PAYABLES
23. CONTINGENCIES AND COMMITMENTS
Creditors 632,789 485,154
Foreign bills payable 82,758 465,188 23.1 Contingencies
Advance from customers 35,017 27,811
Accrued liabilities 3,206,746 2,507,753 23.1.1 Outstanding guarantees given on behalf of the Company by commercial banks in normal course of business amounting to Rs.
Withholding income tax 6,198 1,008 1.25 billion (2019: Rs. 1.13 billion).
Sales tax 31,914 12,035
Workers' welfare fund 105,728 105,728 23.1.2 In prior years, Sui Northern Gas Pipeline Limited (SNGPL) charged the Company with an amount of Rs. 168 million on account
Workers' profit participation fund 20.1 17,775 54,397 of under billing of gas. The Company lodged a complaint with the Appellate Authority (the Authority) against SNGPL and on
Others 62,766 41,749 January 21, 2010, the Authority partly admitted the plea of the Company and allowed partial relief of Rs. 53.89 million. The
4,181,691 3,700,823 Company has paid Rs. 113.63 million in prior years. Subsequent to the decision of the Authority, both the Company (to claim
additional relief) and SNGPL (against the relief provided) have filed appeals with higher authorities against the decision. Management
is of the view that no further liability will arise as it is expected that the final outcome of this case will be in its favor.

23.1.3 Previously, the Company had filed a suit before the Sindh High Court, challenging the applicability of Gas Infrastructure Federal Board of Revenue (FBR) has selected said return for the audit under sections 177 and 214C. In pursuance to the
Development Cess (GIDC) Act, 2011 which was eventually decided upon by the Supreme Court of Pakistan declaring GIDC aforementioned audit the amended assessment order was further amended by the Deputy Commissioner Inland Revenue
Act 2011 as invalid that being a fee-imposing enactment, it could not be introduced through Money Bill as a tax. (DCIR) making additions of Rs. 1.63 million on account of certain disallowed expenses, levied WWF of Rs. 9.16 million and also
restricted tax refundable to the amount of advance tax thereby reducing it by Rs. 48.89 million. The Company had filed an
Thereafter the GIDC Ordinance 2014 was introduced to circumvent the decision of SC. However, in May 2015, the Government appeal before CIRA against the said audit on the grounds that the assessment was prejudicially re-amended without evaluating
passed the GIDC Act 2015. current status. The appeal is pending adjudication.
The Company challenged the GIDC Act, 2015 and filed writ petition in the Peshawar High Court (PHC) challenging the vires Based on the opinion of tax advisors of the Company, the management believes that the aforementioned matters will
and legality of the levy and demand of GIDC including its retrospective application. On May 31, 2017, PHC dismissed the said ultimately be decided in the favor of the Company. Accordingly, no provision is required to be made against the said
petition, however, the Company had obtained interim relief against the payment of GIDC imposed through monthly bills from amounts in these financial statements.
PHC on the ground that GIDC is not leviable as the Company has not added GIDC impact in its price and has not collected from
its customer. Further, the Company filed Civil Petition for Leave to Appeal (CPLA) in SC, against the adverse judgment of PHC. 23.1.7 The Assistant Commissioner Inland Revenue (ACIR), Peshawar, has passed an order for the Tax Year 2015 which was under
On August 13, 2020, the SC passed Judgment and upheld the legality of GIDC Act, 2015. audit. The Company has preferred an appeal before the Commissioner Inland Revenue (Appeals) (CIRA) against the frivolous
demand created by the ACIR. CIRA has given partial relief and the tax demand has now been reduced to Rs. 462 million. The
Further, the Apex Court in its judgement has validated the GIDC Act, 2015 which contains Section 8 in particular. Whilst Company has filed a second appeal before the Appellate Tribunal Inland Revenue (ATIR) for relief of remaining unjustified
examining Section 8 (2) (1st proviso), the legislature has explicitly facilitated the industrial sector narrating that the cess additions for which the order was received on December 14, 2018 in favor of the Company. Although, there were some
shall not be collected from industrial sector as it has not been collected by the Gas companies in terms of GIDC Act 2011 and difference of legal opinion between the Judicial and Accountant Member, therefore an independent member of Tribunal have
the GIDC Ordinance 2014. Further, while comparing two categories i.e. industrial and domestic consumers, the Hon’ble Court to be appointed to resolve the matter. According to the Company’s legal counsel, the Company has a strong legal ground
has specifically stated that GIDC shall be applicable only on those companies which have passed the burden on to its and there is likelihood that the same will be decided in its favor. Accordingly, no provision is required to be made in these
consumers/clients (Clause 37). Management maintains that since the Company has not passed on the burden to its financial statements.
consumers/clients, it is not liable to pay GID Cess, by whatever name charged. Accordingly, the Company has filed the review
petition in the Supreme Court of Pakistan against the above judgement of SC. 23.1.8 The Additional Commissioner Inland Revenue (ACIR) has issued an order dated April 30, 2019 under section 122(9) of
the Ordinance for the Tax Year 2013, created the demand of Rs. 60 million on the issues of carried forward unabsorbed
Further, in anticipation of the possible demand of GIDC by the gas companies in light of the above SC Judgement, the stay depreciation and tax credit under section 65B of the Ordinance, which actually pertains to the Tax Year 2012, hence,
has been obtained from the Peshawar High Court. barred by time for assessment. In response, to the impugned order received from CIRA, the Company has moved forward
to ATIR, against the said impugned order.
23.1.4 National Accountability Bureau (NAB) had filed a reference on February 2, 2016 against Executives of the Company in the
Accountability Court (Peshawar), alleging that the Company purchased electricity from Peshawar Electric Supply Company 23.1.9 Others
(PESCO) at a cheaper price and at the same time it sold the electricity to PESCO at a higher price. The management believes 2020 2019
that the allegations are false, unsubstantiated and unfounded. The case is devoid of merits as the Company sold the electricity ----------------- (Rupees in ‘000) ----------------
after required approvals, licenses and at price on which all captive power plants were selling electricity to distribution
companies in accordance with approved policy of Government of Pakistan. Export bills discounted with recourse 696,688 1,277,307
Local bills discounted 63,248 192,333
23.1.5 The Finance Act 2010 had introduced Clause 126F in Part I of Second Schedule of Income Tax Ordinance, 2001 (the Ordinance) Post-dated cheques in favor of Collector of Customs against imports 1,559,756 974,071
exempting the tax on profits and gains derived by a tax payer located in the ‘war on terror’ affected areas of Khyber
Pakhtunkhwa. As a result of this change, the income of the Company including tax on export proceeds for tax years 2010 to 23.2 Commitments
2012 was exempt. However, the said clause does not specifically address the exemption of turnover tax under Section 113.
In this regard, some companies located in the affected areas filed a petition in PHC against the recovery of turnover tax Letters of credit opened by banks for:
seeking a declaration regarding Section 113 and 159 as discriminatory and contrary to the Constitution and the Court granted Plant and machinery 510,144 836,937
a relief restraining the recovery of turnover tax. The Company along with other companies in the affected areas also filed the Raw materials 567,919 225,272
petition on the same grounds. The PHC in its order dated July 19, 2012, directed the respondents to extend the benefit to Stores and spares 12,552 38,500
the Company. Subsequently, the Chief Commissioner Inland Revenue filed an appeal in the Supreme Court of Pakistan against
the Company and other tax payers of the affected areas, which is pending for adjudication.
Further, the Company has outstanding contractual commitment under sponsors support agreement, for debt servicing of
Through the Finance Act, 2015, a sub clause (XX) of clause 11(A) of the Second Schedule to the Ordinance has been added two loan installments upto Rs. 338 million on behalf of Yunus Energy Limited, an associate.
which gives relief to the Company that Section 113 does not apply to the tax payers falling under clause 126F. However, the
matter of tax charged on other than local sales i.e. tax on export, is still pending for adjudication. Based on the judgment of
the PHC management believes that the Company will not be subject to tax on export sales and hence, has not made any
provision on account of tax on export sales for the years ended June 30, 2010, 2011 and 2012.
23.1.6 The Income Tax return of Fazal Textile Mills Limited (FTML) (previously merged with the Company in the year 2015) for the tax
year 2013 was amended under section 122(5A) by Additional Commissioner Income Revenue (ACIR) vide its order dated March
4, 2014 on account of certain disallowances primarily against Workers Welfare Fund (WWF). The Company filed an appeal
against the amended order against which Commissioner Inland Revenue Appeals (CIRA) allowed some relief to the Company.
The Company being dissatisfied had filed an appeal in the Appellate Tribunal which is pending adjudication. On the other hand

24. SALES - net 25.1 Cost of goods manufactured
2020 2019 2020 2019
Note ----------------- (Rupees in ‘000) ---------------- Note --------------- (Rupees in ‘000) ---------------
Export
- yarn 6,939,489 6,416,132 Raw material consumed 25.1.1 19,690,517 21,072,612
- knitted fabric 1,259,448 1,318,881 Salaries, wages and benefits 25.1.2 1,985,346 2,296,835
- waste 540,777 702,111 Stores, spares and loose tools 684,716 739,476
8,739,714 8,437,124 Packing material 517,982 565,069
Commission on direct export sales (98,831) (91,278) Rent, rates and taxes 2,485 3,108
8,640,883 8,345,846 Doubling charges 9,760 11,260
Indirect export Dyeing, stitching and knitting charges 148,176 128,914
- yarn 10,873,010 - Mixing charges 30,704 32,594
Depreciation 5.1.1 880,152 707,426
Local Fuel and power 25.1.3 3,340,507 3,160,387
- yarn 12,107,457 22,381,325 Repairs and maintenance 15,670 17,283
- knitted fabric 61,343 139,921 Printing and stationery 403 418
- waste 655,858 480,266 Legal and professional 1,556 3,453
23,697,668 23,001,512 Entertainment 7,302 6,561
Commission on local / Indirect export sales (96,888) (117,587) Fee and subscriptions 4,776 8,270
Sales tax (3,448,898) (12,292) Insurance 66,357 60,610
20,151,882 22,871,633 Travelling and conveyance 27,080 26,395
Communication 3,732 3,703
Sale of milk 194,016 - Other manufacturing expenses 12,177 12,691
28,986,781 31,217,479 27,429,398 28,857,065
Work-in-process
Opening stock 345,359 286,033
25. COST OF SALES Closing stock 11 (351,227) (345,359)
(5,868) (59,326)
Opening stock - finished goods 1,339,663 866,680 Cost of goods manufactured 27,423,530 28,797,739
Cost of goods manufactured 25.1 27,423,530 28,797,739
Less: Closing stock - finished goods 11 (2,017,698) (1,339,663) 25.1.1 Raw material consumed
26,745,495 28,324,756
Opening stock 6,722,339 6,316,848
Purchases - net 23,513,679 21,478,103
Less: Closing stock 11 (10,545,501) (6,722,339)
19,690,517 21,072,612
25.1.2 Salaries, wages and benefits include Rs. 237.91 million (2019: Rs. 195.45 million) in respect of retirement benefit obligation.
25.1.3 This includes depreciation expense of Rs. 104.56 million (2019: Rs. 58.36 million).

26. DISTRIBUTION COST 27.2 Auditors' remuneration
2020 2019 2020 2019
Note ----------------- (Rupees in ‘000) ---------------- Note ----------------- (Rupees in ‘000) ----------------
Logistic and related charges 347,121 275,165 Statutory audit fee 1,350 1,350
Loading and others 26,358 30,186 Half yearly review 150 150
Fee and subscriptions 17,148 20,601 Audit fee for consolidated accounts - 100
Salaries, wages and benefits 26.1 48,755 42,595 Audit fee for standalone GHPL accounts - 50
Bank charges on export documents 16,463 13,824 1,500 1,650
Travelling and conveyance 4,808 7,227 28. FINANCE COST
Vehicles running and maintenance 2,967 2,344
Insurance 5,367 4,886 Mark-up / interest on:
Communication 2,241 3,102 Long term finance 82,131 27,277
Entertainment 355 58 Short term borrowings 811,182 1,077,747
Printing and stationery 395 430 Workers' profit participation fund 20.1 548 6
Repairs and maintenance 58 71 893,861 1,105,030
Others 2,320 1,275 Bank and other financial charges 65,822 51,513
474,356 401,764 959,683 1,156,543
Less: borrowing cost capitalized 28.1 (50,603) (56,470)
909,080 1,100,073
26.1 Salaries, wages and benefits include Rs. 9.87 million (2019: Rs. 6.00 million) in respect of retirement benefit obligation.
2020 2019 28.1 Borrowing cost is capitalized at weighted average borrowing capitalization rate of 4.03% (2019: 4.06%).
Note ----------------- (Rupees in ‘000) ----------------
27. ADMINISTRATIVE EXPENSES 29. OTHER OPERATING EXPENSES
2020 2019
Salaries, wages and benefits 27.1 163,085 161,346 Note ----------------- (Rupees in ‘000) ----------------
Legal and professional 8,192 4,648
Depreciation 5.1.1 29,273 29,046 Workers' profit participation fund 20.1 17,775 88,314
Travelling and conveyance 7,222 12,915 Workers' welfare fund - 9,515
Electricity 8,703 11,887 Exchange loss on foreign currency transactions - net 889,350 -
Fee and subscriptions 5,687 5,273 Loss on sale of biological assets 10,936 -
Vehicles running and maintenance 12,250 12,325 Others 369 938
Insurance 13,432 13,856 918,430 98,767
Communication 5,832 6,206
Entertainment 2,450 2,505 30. OTHER INCOME
Secretarial expenses 2,224 1,916
Auditors' remuneration 27.2 1,500 1,650 Profit on deposit accounts 5,792 1,407
Printing and stationery 3,364 5,480 Profit accrued on sales tax refund bond 5,262 797
Repairs and maintenance 2,421 5,297 Scrap sales 44,454 38,364
Advertisement 95 23 Rebate on export sales 18,467 38,781
Rent, rates and taxes 279 314 Insurance claim 5,928 -
Books and periodicals 51 61 Interest on subordinated loan 3,291 1,894
Others 1,821 2,249 Realized gain on sale of shares of ICIP - an associate - 5,018
267,881 276,997 Gain arising from changes in fair value of livestock 52,831 77,947
Exchange gain on foreign currency bank account - net - 307
Gain on disposal of property, plant and equipment - net 37,623 6,257
27.1 Salaries, wages and benefits include Rs. 15.90 million (2019: Rs. 11.49 million) in respect of retirement benefit obligation. 173,648 170,772

31. TAXATION 33.1 Working capital changes
2020 2019 2020 2019
----------------- (Rupees in ‘000) ---------------- ----------------- (Rupees in ‘000) ----------------
Current (Increase) / decrease in current assets
- for the year 378,305 282,355 Stores, spares and loose tools 466 (52,906)
- prior year 7,949 4,011 Stock-in-trade (4,507,065) (928,365)
386,254 286,366 Trade debts 1,184,796 (1,050,219)
Deferred (94,036) 195,989 Loans and advances 81,069 (68,219)
292,218 482,355 Trade deposits and short term prepayments (13,926) 23,372
Sales tax refund bond 116,059 (110,000)
31.1 Relationship between tax expense and accounting profit Other receivables 120,650 34,375
The numerical reconciliation between the average tax rate and applicable tax rate has not been presented in these financial (3,017,951) (2,151,962)
statements as the total income of the Company attracts minimum tax under section 113 of the Income Tax Ordinance, 2001 Increase in current liabilities
and its export sales fall under final tax regime. Export refinance 180,714 446,579
Trade and other payables 480,868 601,156
31.2 Management had a practice of recording tax expense based on the generally accepted interpretation of tax laws and Working capital changes (2,356,369) (1,104,227)
accordingly sufficient provision in respect of taxation for last three years has been provided in these financial statements.
31.3 As per section 5(A) of the Income Tax Ordinance, 2001, tax at the rate of 5% shall be imposed on every public Company which 34. REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES
derives profit for the year. However, this tax shall not apply in case of the Company which distributes at least 20 percentage of
after tax profits within six months of the end of the tax year in the form of cash dividend. Liability in respect of such tax, if any, The aggregate amount charged in respect of remuneration and other benefits paid to Chief Executive and Executives of the
is recognized when the prescribed time period for distribution of dividend expires. Company were as follows:
-------------------------- 2020 ----------------------- --------------------2019 --------------------------
32. EARNINGS PER SHARE - Basic and Diluted Chief Chief
Executive Executives Executive Executives
There is no dilutive effect on the basic earnings per share of the Company which is based on: ------------------------------------------- (Rupees in '000) --------------------------------------------
2020 2019 Remuneration 12,210 52,504 13,200 46,068

House rent 3,330 15,751 3,600 13,820
Profit for the year (Rupees in '000) 45,499 1,186,102 Utilities 1,110 5,250 1,200 4,607
Number of ordinary shares 28,029,583 28,029,583 Bonus - - 1,875 8,092
Earnings per share (Rupees) 1.62 42.32 Medical - 5,250 - 4,607
Leave encashment - 6,916 - 3,852
33. CASH (USED IN) / GENERATED FROM OPERATIONS Retirement benefits - - - 13,019
2020 2019 16,650 85,671 19,875 94,065
Note ----------------- (Rupees in ‘000) ----------------
Number of persons 1 19 1 19
Profit before taxation 337,717 1,668,457
34.1 The Company also provides vehicles for use to Chief Executive and Executives as per Company policy.
Adjustments for:
Depreciation 1,013,982 794,827 34.2 No remuneration has been paid to Directors of the Company except for meeting fee of Rs.1.34 million (2019: Rs. 1.17 million).
Gain on disposal of property, plant and equipment (37,623) (6,257)
Gain on sale of shares of ICIP - an associate - (5,018)
Gain arising from changes in fair value of livestock (52,831) (77,947)
Loss on sale of animals 10,936 -
Finance cost 909,080 1,100,073
Share of profit from associates (492,530) (482,563)
Rebate on export sales (18,467) (38,781)
Profit accrued on sales tax refund bond (5,262) (797)
Profit on deposits (5,792) (1,407)
Provision for retirement benefit obligation 263,675 212,939
Working capital changes 33.1 (2,356,369) (1,104,227)
(771,201) 390,842
Cash (used in) / generated from operations (433,484) 2,059,299

35. PRODUCTION CAPACITY 2020 2019
----------------- (Rupees in ‘000) ----------------
2020 2019 Name of Related Party Basis of % of Nature of Transaction
Spinning Mill ------------- ------------- Relationship share-
holding
Spindles installed (Number) 348,288 342,420 Y.B.Holdings (Private) Limited Holding - Reimbursement of expenses
Shifts worked per day (Number) 3 3 Company to Company 1,376 1,582
Dividend paid 165,748 170,623
Days worked (Number) 294 365
Shifts worked (Number) 882 1,094 ICI Pakistan Limited Associate 7.21% Purchase of fiber 1,608,699 1,678,237
Spindles worked (Number) 307,097,947 352,808,927 Share of profit on investment 170,273 195,190
Share of other comprehensive
Installed capacity after conversion into 20's (Kgs) 145,827,630 143,370,707 (loss)/income (2,987) 1,713
Actual production after conversion into 20's (Kgs) 118,958,406 134,417,781 Dividend received 103,150 86,607
Actual production (Kgs) 70,330,607 78,464,630 Yunus Energy Limited Associate 19.98% Reimbursement of expenses
to Company 2,888 2,879
Reimbursement of expenses
Knitting from Company - 235
Share of profit on investment 319,706 284,034
Knitting machines installed (Number) 12 12 Share of other comprehensive
income/(loss) 849 (1,275)
Average number of days worked (Number) - - Dividend received 122,273 183,410
Installed capacity (Kgs) 1,485,000 1,485,000 Laptop sold 109 -
Vehicle sold - 1,067
It is difficult to describe precisely the production capacity in the textile industry since it fluctuates widely depending on various Lucky Holdings Limited Associate 1% Share of profit on investment 2,551 3,339
factors such as count of yarn spun, spindles speed, twist per inch, raw material used, etc. Dividend received 5,019 -
Lucky Cement Limited Associated - Purchase of cement 19,012 59,005

The knitting capacity has not been used during the year because the Company outsourced its knitting production in order to Company Reimbursement of expenses
from the Company 2,953 970
achieve lower cost of production. Reimbursement of expenses
to the Company 1,423 -
36. NUMBER OF EMPLOYEES
Lucky Knits (Private) Limited Associated - Yarn sold 1,155,907 1,201,631
2020 2019 Company Purchase of goods and services 54,686 28,265
----------------------------------------------------------- ----------------------------------------------------- Sale of laptop 73 -
Sale of vehicle 1,901 -
Factory Others Total Factory Others Total Reimbursement of expenses
--------------------------------------------------------- (Number) ---------------------------------------------------------- to the Company 2,574 4,432
Reimbursement of expenses
from the Company 450 -
- At June 30 4,748 138 4,886 4,848 135 4,983
Yunus Textile Mills Limited Associated - Yarn sold 846,311 251,367

- Average during the Company Sale of waste 171,789 77,391
year 4,798 136 4,934 4,829 133 4,962
Lucky Textile Mills Limited Associated - Yarn sold 3,358,937 1,667,631
Company Sale of fabric 34,769 130,244
Processing charges - 267
37. RELATED PARTY TRANSACTIONS Reimbursement of expenses
to the Company 4,071 3,369
Purchase of store item 209 -
Transactions between the Company and the related parties are carried out as per agreed terms. Transactions with related
parties, other than remuneration and benefits to key management personnel under the term of their employment as Lucky Energy (Private) Limited Associated - Purchase of electricity/steam 1,215,911 1,123,074
disclosed in note 34 are as follows: Company Reimbursement of expenses
Sale of store item 1,217 -
Lucky Landmark (Private) Limited Associated - Vehicle sold 7,100 -

Company Reimbursement of expenses
Tricom Wind Power (Private) Associated - Subordinated loan - 10,773

Limited Company Advance against shares - 37,769
Interest income on
subordinated loan 1,932 836
Reimbursement of expense 6 -
Advance and interest refunded 52,327 -
Sale of laptop 47 -

2020 2019 Credit risk of the Company arises principally from trade debts, loans and advances and bank balances. The carrying amount of financial
----------------- (Rupees in ‘000) ----------------
Name of Related Party Basis of % of Nature of Transaction assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date is as follows:
Relationship share-
holding 2020 2019
Tricom Solar Power (Private) Associated - Subordinated loan 150 6,599 ----------------- (Rupees in ‘000) ----------------
Limited Company Interest income on
subordinated loan 761 644
Long term loans 63,475 63,515
Yunus Wind Power Limited Associated - Subordinated loan - 5,149 Long term deposits 29,505 29,127
Company Interest income on Trade debts 2,332,951 3,517,747
subordinated loan 598 414
Loans and advances 16,843 63,008
Kia Lucky Motors Pakistan Associated - Purchase of vehicle 15,406 2,149 Other receivables 266,933 263,036
Limited Company
Bank balances 74,627 104,569
2,784,334 4,041,002
37.1 Associate / Associated Companies comprise of related parties due to common directorship.
38. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES The trade debts are due from foreign and local customers for export and local sales respectively. Majority of the trade debts
from foreign customers are secured against letters of credit. Management assesses the credit quality of local and foreign
38.1 Financial instruments by category customers, taking into account their financial position, past experience and other factors. For bank balances, financial
2020 2019 institutions with strong credit ratings are accepted. Credit risk on bank balances is limited as these are placed with banks having
----------------- (Rupees in ‘000) ---------------- good credit ratings. Loans to employees are secured against their gratuity balances.
Financial assets at amortized cost
The Company always measures the loss allowance for trade debts at an amount equal to lifetime ECL using the simplified approach.
Loans to employees 63,475 63,515 The ECL on local trade debts are estimated using a provision matrix by reference to past default experience of the debtor and
Long term deposits 29,505 29,127 an analysis of the debtor’s current financial position, adjusted for factors that are specific to the debtors, general economic
Trade debts 2,332,951 3,517,747 conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction
Loans and advances 16,843 63,008 of conditions at the reporting date. The Company has recognized a loss allowance of Rs. 0.09 million (2019: Rs. 4.09 million)
Other receivables 266,933 263,036 against all local trade debts.
Cash and bank balances 86,120 112,519
2,795,827 4,048,952 38.2.2 Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that
Financial liabilities at amortized cost are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the Company could
be required to pay its liabilities earlier than expected or would have difficulty in raising funds to meet commitments associated
Long term finance 3,594,781 2,675,091 with financial liabilities as they fall due. The following are the contractual maturities of financial liabilities excluding the impact of
Trade and other payables 3,985,059 3,499,844 netting agreements:
Unclaimed dividend 23,596 21,879
Accrued mark-up 147,569 318,196 June 30, 2020 Within 1 year 2 - 5 years More than 5 years Total
Short term borrowings 12,362,149 9,926,683 ---------------------------------------------- (Rupees in '000) --------------------------------------------------
20,113,154 16,441,693 Financial liabilities
Long term financing 68,092 2,219,116 1,307,573 3,594,781
38.2 Financial risk management Trade and other payables 3,985,059 - - 3,985,059
The Board of Directors has overall responsibility for the establishment and oversight of the Company's financial risk management. Unclaimed dividend 23,596 - - 23,596
The responsibility includes developing and monitoring the Company's risk management policies. To assist the Board in Accrued mark-up 147,569 - - 147,569
discharging its oversight responsibility, management has been made responsible for identifying, monitoring and managing Short term borrowings 12,362,149 - - 12,362,149
the Company's financial risk exposures. The Company's exposure to the risks associated with the financial instruments and 16,586,465 2,219,116 1,307,573 20,113,154
the risk management policies and procedures are summarized as follows:
June 30, 2019 Within 1 year 2 - 5 years More than 5 years Total
38.2.1 Credit risk and concentration of credit risk ---------------------------------------------- (Rupees in '000) --------------------------------------------------
Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a Financial liabilities
financial loss, without taking into account the fair value of any collateral. Concentration of credit risk arises when a number of counter Long term financing 52,728 1,467,705 1,154,658 2,675,091
parties are engaged in similar business activities or have similar economic features that would cause their ability to meet contractual Trade and other payables 3,499,844 - - 3,499,844
obligations to be similarly affected by changes in economic, political or other conditions. Concentrations of credit risk indicate the Unclaimed dividend 21,879 - - 21,879
relative sensitivity of the Company's performance to developments affecting a particular industry. The Company does not have any Accrued mark-up 318,196 - - 318,196
significant exposure to customers from any single country or single customer. Short term borrowings 9,926,683 - - 9,926,683
13,819,330 1,467,705 1,154,658 16,441,693

The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to 2020 2019 2020 2019
meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking --------------------- (USD) --------------------- ---------------- (Rupees in '000) ----------------
damage to the Company's reputation. The Company manages liquidity risk by maintaining sufficient cash and bank balances
and availability of financing through banking arrangements, which includes short term borrowings and discounting of foreign Trade debts 3,025,273 6,728,998 491,004 1,103,762
receivables. Total unavailed facility balances as at June 30, 2020 are as reported in note 22.1 to these financial statements. Foreign currency bank balances 4,282 7,126 720 1,162
Foreign bills payable (492,461) (2,853,914) (82,758) (465,188)
38.2.3 Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will The following significant exchange rates applied during the year:
affect the Company's income or the value of its holdings of financial instruments. The objective of market risk management
is to manage and control market risk exposures within acceptable parameters while optimizing returns. Average rates Reporting date rates
------------------------------------------------------- -------------------------------------------------------
Price risk 2020 2019 2020 2019
Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in ------------------------------------------------------- -------------------------------------------------------
market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by US Dollars to PKR 158.28 136.4 168.25 / 168.05 163.50 / 163.04
factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded
in the market. As at June 30, 2020 the Company is not exposed to price risk.
As at June 30, 2020, if the Pakistani Rupee had weakened / strengthened by 10% against the US Dollars with all variables
Interest rate risk held constant, profit or loss for the year would have been lower / higher by Rs. 42.69 million (2019: Rs. 63.97 million). This
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes analysis assumes that all other variables, in particular interest rates, remain constant. The analysis is performed on the same
in market interest rates. Majority of the interest rate risk arises from long and short term borrowings from financial institutions. basis as in previous year.
At the reporting date the interest rate risk profile of the Company’s interest-bearing financial instruments is:
39. FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES
2020 2019
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
----------------- (Rupees in ‘000) ----------------
market participants at the measurement date.
Fixed rate instruments
Financial liabilities 4,512,936 601,736
The carrying values of all financial assets and liabilities reflected in the financial statements approximate their fair values.
Variable rate instruments

Fair value hierarchy
Financial liabilities - KIBOR / SBP Base Rate 11,443,994 12,000,038
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at
fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable.
Fair value sensitivity analysis for fixed rate instruments

• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical
The Company does not account for any fixed rate financial assets and liabilities at fair value through profit or loss. Therefore, a change
assets or liabilities.
in interest rate at the reporting date would not affect the statement of profit or loss.
• Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are
Cash flow sensitivity analysis for variable rate instruments
observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
A change of 100 basis points in KIBOR / SBP base rate, financial liabilities at the reporting date would have increased / (decreased)
equity and profit or loss by Rs. 114.64 million (2019: Rs. 120 million). This analysis assumes that all other variables, in particular foreign
• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability
currency rates, remain constant. The analysis is performed on the same basis as in previous year.
that are not based on observable market data (unobservable inputs).
Currency risk
As at June 30, 2020, the Company has no financial instruments that falls into any of the above category except for
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign
biological assets which are classified in level 1 above.
exchange rates. Currency risk arises mainly where receivables and payables exist due to transactions entered in foreign currencies.
The Company is exposed to foreign currency risk on sales, purchases and borrowings, which, are entered in a currency other than
There were no transfers between Level 1 and 2 in the year.
Pak Rupees. As at reporting date, the financial assets and liabilities exposed to currency risk are as follows:
40. CAPITAL RISK MANAGEMENT
The objective of the Company when managing capital, i.e., its shareholders' equity is to safeguard its ability to continue as a
going concern so that it can continue to provide returns for shareholders and benefits for other stakeholders; and to maintain
a strong capital base to support the sustained development of its businesses.
The Company manages its capital structure by monitoring return on net assets and makes adjustments to it in the light of
changes in economic conditions. In order to maintain or adjust the capital structure, the Company may adjust the amount of
dividend paid to shareholders or issue new shares.

41. OPERATING SEGMENTS 42. SUMMARY OF SIGNIFICANT TRANSACTIONS
Basis of segmentation Significant transaction arising during the year pertains to the following:
A business segment is a group of assets and operations engaged in providing products that are subject to risks and returns
that are different from those of other business segments. Management has determined the operating segments based on - During the year, the wholly owned subsidiary - GHPL has been merged into the Company as disclosed in note 2 of these financial
the information that is presented to the Board of Directors of the Company for allocation of resources and assessment of statements; and
performance. Based on internal management reporting structure and products produced and sold, the Company is organized
into the following three operating segments: - On March 11, 2020, the World Health Organization (WHO) declared COVID-19 a global pandemic which has caused widespread
business disruptions around the world resulting in a negative impact on economic activities, including our business. The effects of
- Spinning segment: manufacturing and sale of yarn
COVID-19 on the Company's operations have been disclosed in note 3.4 to these financial statements.
- Dairy segment: production and sale of milk
43. CORRESPONDING FIGURES
Management monitors the operating results of the above mentioned segments separately for the purpose of making
decisions about resources to be allocated and of assessing performance. Segment performance is evaluated based on Corresponding figures have been reclassified / rearranged wherever necessary for better presentation.
operating profit or loss which in certain respects, as explained in table below, is measured differently from the statement of
profit or loss in these financial statements. Segment results and assets include items directly attributable to a segment as 44. GENERAL
well as those that can be allocated on a reasonable basis. All non current assets of the Company as at June 30, 2020 are
located in Pakistan. These financial statements has been rounded off to the nearest thousand rupees.
Liabilities are incurred for the Company as a whole and are not segment-wise reported to the Board of Directors. All the The Board of Directors proposed a final dividend for the year ended June 30, 2020 of Rs. Nil per share (2019: Rs. 8.5 per share)
unallocated (including dairy segment) results and assets are reported to the Board of Directors at entity level. The following amounting to Rs. Nil (2019: Rs. 238.25 million).
are the reportable segments as per IFRS 8 'Operating Segments', presents operating results information regarding operating
segments for the respective years and asset information regarding operating segments as at reporting date: These financial statements were authorized for issue on September 24, 2020 by the Board of Directors of the Company.
---------------------------------- 2020--------------------------------- ---------------------------------- 2019 ---------------------------------

Spinning Knitting Unallocated Total Spinning Knitting Unallocated Total
---------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------
Segment revenues
Export 7,427,697 1,213,186 - 8,640,883 7,072,005 1,273,841 - 8,345,846
Indirect export 9,263,094 - - 9,263,094 - - - -
Local 10,836,926 51,862 194,016 11,082,804 22,733,740 137,893 - 22,871,633 MUHAMMAD YUNUS TABBA MUHAMMAD SOHAIL TABBA MUHAMMAD IMRAN MOTEN
Chairman / Director Chief Executive Officer Chief Financial Officer
Profit before tax (410,446) 254,839 493,324 337,717 777,774 326,616 564,067 1,668,457
Finance cost 885,731 4,197 19,152 909,080 1,093,798 4,151 230 1,098,179
Depreciation 975,424 1,263 37,295 1,013,982 764,494 1,287 29,046 794,827
Segment assets
Property, plant and equipment 9,953,024 14,582 197,401 10,165,007 9,649,330 10,961 210,068 9,870,359
Other non-current assets - - 3,409,907 3,409,907 - - 3,093,075 3,093,075
Current assets 14,752,783 478,925 2,026,728 17,258,436 12,112,757 409,454 1,819,834 14,342,045

pattern of
shareholding Categories of Shareholders Shareholdings Shares Held Percentage
As at June 30, 2020

A) Director and Spouse(s)
Categories Mr. Muhammad Yunus Tabba 1 3,673 0.01
No. of Shareholders Total Shares Held Mr. Muhammad Sohail Tabba 1 3,673 0.01
From To
Mr. Muhammad Ali Tabba 1 3,673 0.01
750 1 100 28,098 Mr. Jawed Yunus Tabba 1 3,673 0.01
749 101 500 184,682 Ms. Zulekha Tabba Maskatiya 1 3,673 0.01
359 501 1000 287,436 Mr. Saleem Zamindar 1 500 0.00
Mr. Zafar Masud 1 500 0.00
234 1001 5000 562,061
48 5001 10000 370,545
B) Associated Companies, Undertaking and Related Parties
19 10001 15000 225,489 Y.B. Holdings (Private) Limited 1 19,499,741 69.56
13 15001 20000 221,528
C) Executives - - -
8 20001 25000 179,000
1 30001 35000 31,000 D) Public Sector Companies and Corporations - - -
1 35001 40000 36,906
E) Banks, Development Finance Institutions, Non-Banking
2 45001 50000 100,000 Finance Companies, Insurance Companies, Takaful, 48 2,042,493 7.28
1 55001 60000 59,000 Modarabas, Pension Funds and REIT Management
3 60001 65000 185,767
F) Mutual Funds 1 159,247 0.56
2 70001 75000 145,200
1 90001 95000 95,000 G) General Public
1 100001 105000 102,300 a – Local 2140 6,158,083 21.96
b -Foreign 7 4,381 0.015
1 120001 125000 120,711
Foreign Companies 1 145,100 0.51
1 140001 145000 141,800
Other 1 1,173 0.00
1 145001 150000 145,100 Total 2,206 28,029,583 100.00
1 155001 160000 159,247
1 325001 330000 326,803
2 405001 410000 813,350
1 435001 440000 436,000
1 525001 530000 529,993
1 560001 565000 563,522
1 705001 710000 705,494
1 715001 720000 717,210
1 1055001 1060000 1,056,600
1 19495001 19500000 19,499,741
2,206 28,029,583

notice of 33rd
annual general meeting Notes
1. CLOSURE OF SHARE TRANSFER BOOKS:

The Share Transfer Books of the Company will remain closed from Wednesday, October 21, 2020 to Wednesday, October 28,
Notice is hereby given that the 33rd Annual General Meeting of the members of Gadoon Textile Mills Limited (Company) is
2020 (both days inclusive). Transfer received in order at our Share Registrar/Transfer agent, CDC Share Registrar Services
scheduled to be held on Wednesday, October 28, 2020 at 10:30 a.m. at 200-201, Gadoon Amazai Industrial Area, Gadoon Amazai,
District Swabi, Khyber Pakhtunkhwa to transact the following business: Limited (CDCSRSL), CDC House, 99-B, S.M.C.H. Society, Main Shahrah-e-Faisal, Karachi 74400, at the close of business on
Tuesday, October 20, 2020 will be considered in time for the purpose of above entitlement to the transferees.
Ordinary Business
1. To confirm the Minutes of 32nd Annual General Meeting held on September 28, 2019. 2. PARTICIPATION IN GENERAL MEETING
2. To receive, consider and adopt the Audited Financial Statements of the Company for the year ended June 30, 2020, together All shareholders of the Company are entitled to attend and vote at the General Meeting of the Company after verification of
with the Chairman’s Review Report, Directors’ and Auditors’ report thereon. their identity.
3. To appoint Auditors for the year ending June 30, 2021 and fix their remuneration.
4. To transact any other business with the permission of the Chair.
A member eligible to attend and vote may appoint another member as his/her proxy to attend and vote instead of him/her.
Special Business Proxies, in order to be effective, must be received by the Company at the Registered Office of the Company at 200-201, Gadoon
1. To ratify the transactions carried out by the Company with related parties disclosed in the Financial Statements for the year Amazai Industrial Estate, Gadoon Amazai, District Swabi, Province of Khyber Pakhtunkhwa, at least 48 hours before the time
ended June 30, 2020, by passing the following resolution: of holding the meeting.
“RESOLVED THAT the transactions carried out by the Company with related parties including ICI Pakistan Limited, KIA Lucky CDC account holders are advised to follow the following guidelines:
Motors Pakistan Limited, Lucky Cement Limited, Lucky Energy (Private) Limited, Lucky Holdings Limited, Lucky Knits (Private)
Limited, Lucky Landmark (Private) Limited, Lucky Textile Mills Limited, Tricom Solar Power (Private) Limited, Tricom Wind
For attending the meeting:
Power (Private) Limited, Y.B. Holdings (Private) Limited, Yunus Energy Limited, Yunus Textile Mills Limited, Yunus Wind Power
Limited and other such related parties during the year ended June 30, 2020, be and are hereby approved.”
i) In case of individuals, the account holder or sub-account holder and/or the person whose securities are in a group account
2. To approve potential transactions with related parties intended to be carried out in the financial year 2020-2021 (including and their registration details are uploaded as per the regulations, shall authenticate his/her identity by showing his/her
fiscal limits of the general transaction) and to authorize the Board of Directors of the Company to carry out such related party original Computerized National Identity Card (CNIC) or original passport at the time of attending the meeting.
transactions at its discretion from time to time, irrespective of the composition of the Board of Directors.
ii) In case of a corporate entity, the Board of Directors’ resolution/power of attorney with specimen signature of the nominee
The resolutions to be passed as special resolutions are as under:
shall be produced (unless it has been provided earlier) at the time of the meeting.
“RESOLVED THAT the Company be and is hereby authorized to carry out transactions including, but not limited to, the sale of
yarn and other necessary goods, as well as the transaction of cement, cloth, power, steam, garments, textiles, vehicles and For appointing proxies:
other ancillary machinery and relevant parts and other necessary commodities including receipt and payment of dividends,
with related parties from time to time including, but not limited to ICI Pakistan Limited, KIA Lucky Motors Pakistan Limited, i) In case of proxy for an individual beneficial owner of shares from CDC, attested copies of the beneficial owner’s CNIC or
Lucky Cement Limited, Lucky Energy (Private) Limited, Lucky Holdings Limited, Lucky Knits (Private) Limited, Lucky Landmark Passport, Account and Participant’s I.D. numbers must be deposited along with the form of proxy.
(Private) Limited, LuckyOne (Private) Limited, Lucky Textile Mills Limited, Lucky Wind Power Limited, Tricom Solar Power
(Private) Limited, Tricom Wind Power (Private) Limited, Y.B. Holdings (Private) Limited, Y.B. Pakistan Limited, Yunus Energy ii) In case of proxy for representative of corporate members from CDC, Board of Directors’ Resolution and Power of Attorney
Limited, Yunus Textile Mills Limited, Yunus Wind Power Limited and other such related parties to the extent of
and the specimen signature of the nominee must be deposited along with the form of proxy. The proxy shall produce his/her
Rs.13,000,000,000/- (Rupees Thirteen Billion Only) for the fiscal year 2020-21.
original Computerized National Identity Card or Passport at the time of the meeting.
FURTHER RESOLVED THAT within the above parameters approved by the shareholders of the Company, the Board of Directors iii) In order to be effective, the form of proxy duly completed, stamped, signed and witnessed along with Power of Attorney, or
of the Company may, at its discretion, approve specific related party transactions from time to time, irrespective of the other instruments (if any), must be deposited at the registered office of the Company at least 48 hours before the time of
composition of the Board, and in compliance with the Company’s policy pertaining to related party transactions and holding the meeting.
notwithstanding any interest of the Directors of the Company in any related party transaction which has been noted by the
shareholders.” iv) If a member appoints more than one proxy and more than one form of proxy are deposited by a member with the Company,
all such forms of proxy shall be rendered invalid.
By order of the Board
Abdul Sattar Abdullah

Karachi: October 7, 2020 Company Secretary

3. NOTIFY THE CHANGES IN ADDRESSES OF SHAREHOLDERS: Shareholders are requested to ensure that their claims for unclaimed dividends and shares are lodged timely. In case no
The shareholders of the Company are requested to notify changes in their mailing addresses (if any), to our share claim is lodged with the Company in the given time, the Company shall proceed to deposit the unclaimed/unpaid amount and
registrar/transfer agent. shares with the Federal Government pursuant to the provision of Section 244 (2) of Companies Act, 2017.
4. SUBMISSION OF COPIES OF CNIC (MANDATORY): 10. DEPOSIT OF PHYSICAL SHARES INTO CDC ACCOUNTS:
Pursuant to the Notification SRO.275(I)/2016 dated March 31, 2016 read with S.R.O.19(I)/2014 dated January 10, 2014 and
SRO.831(I)/2012 dated July 5, 2012 of the Securities & Exchange Commission of Pakistan (SECP), Dividend Warrant(s) shall In accordance with the requirement of section 72 of Companies Act, 2017 every existing Company shall be required to
mandatorily bear the Computerized National Identity Card (CNIC) numbers of shareholders. Shareholders are therefore replace its physical shares with book-entry form in a manner as may be specified and from the date notified by the Commission,
requested to fulfill the statutory requirements and submit a copy of their CNIC or NTN in case of corporate entities (if not within a period not exceeding four years from the commencement of this Act. The shareholder having physical shares may
already provided) to the Company's Share Registrar. open the CDC sub-account with any of the broker or investor account directly with CDC to place their physical shares into
scrip-less form.
In case of non-availability of a valid copy of the Shareholders' CNIC in the records of the Company, the Company shall be
constrained to withhold the Dividend Warrants, which will be released by the Share Registrar only upon submission of a valid 11. CONSENT FOR VIDEO CONFERENCE FACILITY:
copy of the CNIC in compliance with the aforesaid SECP directives. Pursuant to Section 132(2) of the Companies Act, 2017, if Company receives consent form from shareholders holding
aggregate 10% or more shareholding residing at a geographical location to participate in the meeting through video
5. TRANSMISSION OF AUDITED FINANCIAL STATEMENTS / NOTICES THROUGH EMAIL conference at least seven days prior to the date of the meeting, the Company will arrange video conference facility in that
As notified by the SECP vide SRO.787(I)/2014 dated September 8, 2014, all listed companies are allowed to circulate audited city subject to availability of such facility in that city. To avail this facility, please provide the following information and submit
financial statements along with notice of annual general meetings to its shareholders through their e-mail addresses subject to to the registered office of the Company:
the written consent of the shareholders.
Shareholders of the Company who wish to receive audited financial statements, a notice of General Meetings and other financial Consent Form for Video Conference Facility
reports through e-mail are requested to fill the required information on the form earlier dispatched to the Shareholders of the
Company. The form is also available under the Investor Information section at Company’s website I/We ______________________________________ of _______________________ being a shareholder of Gadoon
http://gadoontextile.com/investor-information/ Filled forms may please forward to the Company’s share registrar. Textile Mills Limited, holder of __________ ordinary share(s) as per Register Folio / CDC Account No. ______________
6. TRANSMISSION OF ANNUAL FINANCIAL STATEMENTS THROUGH CD/DVD/USB hereby opt for video conference facility at ___________________.
SECP through its SRO.470(I)/2016 dated May 31, 2016, have allowed companies to circulate their annual balance sheet,
profit and loss account, auditors’ report and directors’ report to its members through CD/DVD/USB at their registered
addresses. In view of the above the Company has sent its Annual Report to the shareholders in the form of a CD/DVD.
Any Member can send a request for a printed copy of the Annual Report to the Company on standard request form placed
under the Investor Information section on its website http://gadoontextile.com/investor-information/
Signature of Member(s)
7. AVAILABILITY OF AUDITED FINANCIAL STATEMENTS ON COMPANY’S WEBSITE
The audited financial statements of the Company for the year ended June 30, 2020 have been made available on the
Company’s website http://gadoontextile.com/investor-information/#report, in addition to annual and quarterly financial THE STATEMENT UNDER SECTION 134(3) PERTAINING TO THE “SPECIAL BUSINESS” AND IN PURSUANCE TO THE SECTION
statements for the prior years. 208 OF THE COMPANIES ACT, 2017 IS ANNEXED WITH THE NOTICE BEING SENT TO THE MEMBERS.
8. REQUIREMENT OF COMPANIES (POSTAL BALLOT) REGULATIONS 2018: ***

Pursuant to Companies (Postal Ballot) Regulations 2018, for any other agenda item subject to the requirements of
Sections 143 and 144 of the Companies Act 2017, members present in person, through video-link or by proxy, and having
not less than one-tenth of the total voting power can also demand a poll and exercise their right of vote through postal
ballot, that is voting by post or through any electronic mode, in accordance with requirements and procedure contained
in the aforesaid regulations.
9. UNCLAIMED DIVIDENDS:
As per the provision of section 244 of the Companies Act, 2017, any shares issued or dividend declared by the Company
which have remained unclaimed/unpaid for a period of three years from the date on which it was due and payable are
required to be deposited with the Commission for the credit of Federal Government after issuance of notices to the
shareholders to file their claim. A notice in this respect was sent to shareholders dated January 31, 2018 and the final
notice was published in the newspapers dated May 2, 2018.

statement under section 134(3)
of the companies act, 2017 1. ICI Pakistan Limited 2. KIA Lucky Motors Pakistan Limited
pertaining to special business

3. Lucky Cement Limited 4. Lucky Energy (Private) Limited
5. Lucky Holdings Limited 6. Lucky Knits (Private) Limited
7. Lucky Landmark (Private) Limited 8. LuckyOne (Private) Limited
9. Lucky Textile Mills Limited 10. Lucky Wind Power Limited
11. Tricom Solar Power (Private) Limited 12. Tricom Wind Power (Private) Limited
This statement sets out the material facts pertaining to the special business, 13. Y.B. Holdings (Private) Limited 14. Y.B. Pakistan Limited
15. Yunus Energy Limited 16. Yunus Textile Mills Limited
being Items on the notice, intended to be transacted at the Annual General 17. Yunus Wind Power Limited
Meeting of the Company to be held on October 28, 2020
The shareholders would note that it is not possible for the Company or the directors to accurately predict the nature of the
As per the instructions of the Securities and Exchange Commission of Pakistan (the “SECP”), Gadoon Textile Mills Limited related party transaction(s) or the specific related party/parties with which the transaction(s) shall be carried out. In view
(the Company) had been directed in the past to obtain a broad approval from the shareholders of the Company, regarding
of the same, the Company seeks the broad approval of the shareholders that the board may cause the Company to enter
related party transactions carried out by the Company from time to time, on a post facto basis.
into transactions with related parties from time to time in its wisdom and in accordance with the policy of the Company to
the extent of Rs. 13,000,000,000/- (Rupees Thirteen Billion Only) for the fiscal year 2020-21.
On a strict reading of the laws, the SECP was of the opinion that due to the composition of the Board of Directors of the
Company, the Board of Directors would be unable to approve the transactions carried out by the Company with other
companies having majority of common directors. However, no alternative mechanism was present under the Companies All such transactions are clearly stipulated at the end of the year in the Company’s Annual Report. Furthermore, the
Ordinance, 1984. Company and the Board continuously serve to protect the interests of the shareholders of the Company and the said
transactions are entered into in order to benefit the Company and its stakeholders.
Although transactions carried out by the Company with related parties constitute a small fraction of the Company’s entire
business, a restriction to carry out business with related parties would adversely affect the business of the Company. The The interest of the relevant directors of the Company in the associated companies / related parties are known to the
Company carries out transactions with its associated companies and related parties in the normal course of business. It is shareholders and are disclosed by the Company as per the applicable laws, including in the financial statements of the Company.
emphasized that the Company carries out such transactions in a fair and transparent manner and on an arm’s length basis.
All transactions entered into with associated companies and related parties require the approval of the Audit Committee of
the Company, which is chaired by the independent director of the Company. The Audit Committee reviews the transactions
and ensures that the pricing method is transparent and at par with running market practice and that the terms are as per
the Company’s practices. Only upon the recommendation of the Audit Committee, such transactions are placed before the
Board of Directors for approval.
The transactions with related parties carried out during the fiscal year 2019-2020 to be ratified have been disclosed in the
financial statements for the year ended June 30, 2020. All such transactions were recommended by the Audit Committee
and were carried out at arm’s length basis.
Furthermore, since such transactions are an ongoing process and are approved by the Board of Directors on a quarterly
basis, the shareholders are being approached to grant the broad approval for such transactions to be entered into by the
Company, from time to time, at the discretion of the Board (and irrespective of its composition). The Company shall comply
with its policy pertaining to transactions with related parties as stated above to ensure that the same continue to be
carried out in a fair and transparent manner and on an arm’s length basis. This would also ensure compliance with the
Section 208(1) of the Companies Act, 2017 which requires that shareholders’ approval shall be required where the majority
directors are interested in any related party transactions and Regulation 4 of the Companies (Related Party Transactions
and Maintenance of Related Records) Regulations, 2018 which sets out the conditions for transactions with related parties
to be characterized as “arm’s length transactions” and states that the parties to the transaction must be unrelated in any way.
Transactions intended to be carried out by the Company include, but are not limited to, the sale of yarn and other necessary
goods, as well as the purchase of cement, cloth, power, steam, garments, textiles, vehicles and other ancillary machinery
and relevant parts and other necessary commodities including receipt and payment of dividends with the following related
parties including, but are not limited to:

annexure glossary
ACCA Association of Chartered Certified Accountants GDR Global Depository Receipts
ACIR Assistant Commissioner Inland Revenue GHPL Gadoon Holdings (Private) Limited
AGM Annual General Meeting GIDC Gas Infrastructure Development Cess
APCMA All Pakistan Cement Manufacturing Association GP Gross Profit
ATF Aziz Tabba Foundation GSP+ Generalized Scheme of Preferences Plus
ATIR Appellate Tribunal Inland Revenue GTML Gadoon Textile Mills Limited
BA Bachelors of Arts HIA Head of Internal Audit
BCI Better Cotton Initiative HOD Head of Department
BCP Business Continuity Plan HR Human Resource
BMR Balancing, Modernization, and Replacement HR&R Human Resource and Remuneration
BOD Board of Directors HSE Health, Safety and Environment
CAPEX Capital Expenditure IAAPA International Association of Amusement Parks
CC Cubic Capacity and Attractions
CCG Code of Corporate Governance IASB International Accounting Standards Board
CDCSRSL CDC Share Registrar Services Limited ICAEW Institute of Chartered Accountants in England
CEO Chief Executive Officer and Wales
CFO Chief Financial Officer ICAP Institute of Chartered Accountants of Pakistan
CFPP Coal-Fired Power Plant ICIP ICI Pakistan Limited
CIA Chief Internal Auditor ICMAP Institute of Cost and Management Accountants
CIRA Commissioner Inland Revenue Appeals of Pakistan
COO Chief Operating Officer IFAC International Federation of Accountants
CPLA Civil Petition for Leave to Appeal IFC International Finance Corporation
CPP Captive Power Producer IFRIC International Financial Reporting Interpretations
CSR Corporate Social Responsibility Committee
DCIR Deputy Commissioner Inland Revenue IFRS International Financial Reporting Standards
DLTL Drawback of Local Taxes and Levies IIRF International Integrated Reporting Framework
DPS Dividend Per Share IoD Institute of Directors
EBITDA Earnings Before Interest Tax Depreciation ISAs International Standards on Auditing
and Amortization ISO International Organization for Standardization
ECL Expected Credit Losses IT Information Technology
EOGM Extra Ordinary General Meeting KIBOR Karachi Inter-Bank Offer Rate
EPS Earnings Per Share KLM Kia Lucky Motors Pakistan Limited
ERP Enterprise Resource Planning KPI Key Performance Indicators
ESP Electrostatic Precipitators LAPL Lucky Air (Private) Limited
ESS Employee Self Service LC Letter of Credit
EVA Economic Value Added LCL Lucky Cement Limited
FBR Federal Board of Revenue LCPL Lucky Commodities (Private) Limited
FCF Free Cash Flow LEL Lucky Entertainment (Private) Limited
FEC Family Entertainment Center LEPCL Lucky Electric Power Company Limited
FGD Flue Gas Desulphurization LEPL Lucky Energy (Private) Limited
FTML Fazal Textile Mills Limited LEXL Lucky Exim (Private) Limited
FVTOCI Fair Value Through Other Comprehensive Income LFPL Lucky Foods (Private) Limited
FVTPL Fair Value through Profit or Loss LHL Lucky Holdings Limited

form of proxy
LKL Lucky Knits (Private) Limited WEF World Economic Forum
LLPL Lucky Landmark (Private) Limited WHO World Health Organization
LOPL LuckyOne (Private) Limited WHRP Waste Heat Recovery Plant
LTML Lucky Textile Mills Limited WTG Wind Turbine Generators
MBA Masters of Business Administration WWF Workers Welfare Fund The Company Secretary,
MENALAC Middle East and North Africa Leisure Attractions YBG Yunus Brothers Group GADOON TEXTILE MILLS LIMITED
Council YBHPL YB Holdings (Private) Limited 200-201, Gadoon Amazai Industrial Estate.
MMBTU Million Metric British Thermal Unit YBPL Y.B. Pakistan Limited Distt, Swabi, Khyber Pakhtunkhwa.
MTPA Million Tons Per Annum YEL Yunus Energy Limited
MW Mega Watt YGL Young Global Leader I/We of
NAB National Accountability Bureau YPO Young President Organization (full address)
NEPRA National Electric Power Regulatory Authority YTML Yunus Textile Mills Limited
NFO National Finance Olympiad being member of Gadoon Textile Mills Limited and holder of
NGO Non-Governmental Organization
ordinary shares as per Share Register Folio No.
NRV Net Realizable Value
and/or CDC Participant I.D. No.
OPD Out Patient Department
and Sub- Account No.
PAT Profit After Tax
hereby appoint
PBC Pakistan Business Council
of (full address)
PD Probability of Default
PESCO Peshawar Electric Supply Company
or failing him/her
PHC Peshawar High Court of (full address)
PICG Pakistan Institute of Corporate Governance
who is also a member of Gadoon Textile Mills Limited, as my/our proxy in my/our absence to attend and to vote and
PSF Polyester Staple Fiber
PSX Pakistan Stock Exchange act for me/us and on my/our behalf at the 33rd Annual General Meeting of the Company to be held on Wednesday,
RDF Refuse Derived Fuel October 28, 2020 at 10:30 am and at any adjournment thereof.
RMP Risk Management Policy
ROE Return on Equity Signature this day of 2020
SBP State Bank of Pakistan
SC Supreme Court Witness
SECP Securities and Exchange Commission of Pakistan 1) Signature :
SHC Sindh High Court Name :
SME Small Medium Enterprise Address :
SNGPL Sui Northern Gas Pipeline Limited CNIC No. :
SPLY Same Period Last Year Signature on Five
SPV Special Purpose Vehicle Rupee Revenue Stamp
2) Signature :
STS Street to School
Name :
SUPIMA Superior Pima
Address :
SUV Sports Utility Vehicle Signature of members should
CNIC No. :
TDF Tyre Derived Fuel match with the specimen signature
THI Tabba Heart Institute registered with the company
TKI Tabba Kidney Institute
Note:
TWPPL Tricom Wind Power (Private) Limited
VPN Virtual Private Network
1. Proxies in order to be effective, must be received by the Company not less than 48 hours before the meeting.
WAC Weighted Average Cost Proxy must be a member of the Company.
WACC Weighted Average Cost of Capital
2. CDC Shareholders and their proxies are each requested to attach an attested photocopy of their
Computerized National Identity Card with this proxy form before submission to the Company.

218 I Gadoon Textile Mills Limited
1.20%
3.21%
12.18%
Raw materials consumed
1.89%
Salaries wages and benefits
2.50%
Store consumed
Packing materials 7.24%
71.79%
Power and fuel
Depreciation
Others


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dreams

Gadoon Textile Mills Limited

7-A, Muhammad Ali Society T 021 3520 5479 - 80

06 I Gadoon Textile Mills Limited Annual Report 2020 I 07

Risks & Governance Strategy &

Ginning Outcome &

Spinning Knitting Yarn

Performance Sustainability Outlook

Social and Intellectual

08 I Gadoon Textile Mills Limited Annual Report 2020 I 09

10 I Gadoon Textile Mills Limited Annual Report 2020 I 11

12 I Gadoon Textile Mills Limited Annual Report 2020 I 13

14 I Gadoon Textile Mills Limited Annual Report 2020 I 15

16 I Gadoon Textile Mills Limited Annual Report 2020 I 17

Besides offering the complete range of therapeutic

18 I Gadoon Textile Mills Limited Annual Report 2020 I 19

Tricom Wind Power (Private)

20 I Gadoon Textile Mills Limited Annual Report 2020 I 21

Chief Internal Auditor

Gadoon Amazai Plant

Key Quantitative Information

22 I Gadoon Textile Mills Limited Annual Report 2020 I 23

24 I Gadoon Textile Mills Limited Annual Report 2020 I 25

organization’s response Legal Compliance with legal/regulatory

26 I Gadoon Textile Mills Limited Annual Report 2020 I 27

Imported Local Total

Keeping in view, the Company’s best corporate reporting practices,

Top 25 Companies Award

28 I Gadoon Textile Mills Limited Annual Report 2020 I 29

32 I Gadoon Textile Mills Limited Annual Report 2020 I 33

The indicators stated will continue to be relevant in the future as well.

34 I Gadoon Textile Mills Limited Annual Report 2020 I 35

38 I Gadoon Textile Mills Limited Annual Report 2020 I 39

40 I Gadoon Textile Mills Limited Annual Report 2020 I 41

42 I Gadoon Textile Mills Limited Annual Report 2020 I 43

Human Rights GTML

Health and Safety GTML

Training and Education GTML

Compliance GTML / Regulator

Marketing Communications GTML

Data Privacy and Cyber Security GTML

Stakeholder and Community

Environment Energy and Water GTML

Emissions GTML / Community

Material GTML / Supplier

Economic Economic Performance GTML

Economic Returns GTML

Market Presence GTML

Robust Assessment of Risk Capital Structure and Payment of Debts

44 I Gadoon Textile Mills Limited Annual Report 2020 I 45

His vision enabled the manifestation of LuckyOne Mall.

48 I Gadoon Textile Mills Limited Annual Report 2020 I 49

50 I Gadoon Textile Mills Limited Annual Report 2020 I 51

Having pursued a Bachelor’s degree in Management

She not only holds a prestigious position within the

52 I Gadoon Textile Mills Limited Annual Report 2020 I 53

He served as a Member of the Board of Directors and

54 I Gadoon Textile Mills Limited Annual Report 2020 I 55

- Quality standards of its product.