Half yearly FS

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HUSEIN INDUSTRIES LIMITED HUSEIN INDUSTRIES LIMITED HUSEIN INDUSTRIES LIMITED HUSEIN INDUSTRIES LIMITED

CONDENSED INTERIMCONDENSED INTERIMCONDENSED INTERIMCONDENSED INTERIM

FINANCIAL INFORMATION FOR THEFINANCIAL INFORMATION FOR THEFINANCIAL INFORMATION FOR THEFINANCIAL INFORMATION FOR THE

PERIOD ENDED DECEMBER 31,2011PERIOD ENDED DECEMBER 31,2011PERIOD ENDED DECEMBER 31,2011PERIOD ENDED DECEMBER 31,2011



BOARD OF DIRECTORSBOARD OF DIRECTORSBOARD OF DIRECTORSBOARD OF DIRECTORSMr. Aziz L. Jamal Chairman/Chief Executive

Mr. Rashid L. Jamal DirectorMr. Husein Jamal Director

Mrs. Aisha Bai Suleman Director

Mr. Akhtar Wasim Dar Director

Mr. Ahsan Jamal Director

Miss. Hina Abdul Rashid Director

BOARD OF AUDIT COMMITTEEBOARD OF AUDIT COMMITTEEBOARD OF AUDIT COMMITTEEBOARD OF AUDIT COMMITTEEMr. Akhtar Wasim Dar Chairman

Mr. Rashid L. Jamal Member

Mr. Husein Jamal Member

Mr. Mirza Akhter Shikoh Secretary

COMPANY SECRETARY COMPANY SECRETARY COMPANY SECRETARY COMPANY SECRETARY Mr. M. Anwar Kaludi

CORPORATE INFORMATIONCORPORATE INFORMATIONCORPORATE INFORMATIONCORPORATE INFORMATION

REGISTERED & HEAD OFFICEREGISTERED & HEAD OFFICEREGISTERED & HEAD OFFICEREGISTERED & HEAD OFFICEHT-8, Landhi Industrial & Trading Estate,

Landhi, Karachi-75120.

Tel: (9221) 35018536-8

Fax: (9221) 35018545

E-mail: [email protected]

BANKERSBANKERSBANKERSBANKERSHabib Metropolitan Bank Limited

Habib Bank Limited

MCB Bank Limited

Soneri Bank Limited

AUDITORS AUDITORS AUDITORS AUDITORSHaroon Zakaria & Co.

Chartered Accountants

SHARE REGISTRARSHARE REGISTRARSHARE REGISTRARSHARE REGISTRARC & K Management Associates (Pvt) Limited

404, Trade Towers, Near Hotel Metropole,

Abdullah Haroon Road

Karachi.

MILLSMILLSMILLSMILLSHT-8, Landhi Industrial & Trading Estate,

-,



Observation of the auditors

BRIEF REVIEW

In the name of Allah the Most Merciful and the Most Benevolent

Directors of your company are pleased to present the half yearly financial statements and the Auditors

review report thereon to the members for the half year ended December 31, 2011.

The sales of your company was Rs. 230 Million for the half year under review as compared to Rs. 333

Million in the previous year. After accounting for all charges your company incurred loss after taxation of

Rs. 88 Million as compared to Rs. 69 Million in previous year.

During the half year under review the prices of inputs have shown upward trend. Energy shortage and

security and law and order problems are the main reasons for adverse economic conditions. However your

management is taking all steps to control these problems by efficient and economical operations.

Auditors have raised observations in their report on review of condensed interim financial information to

the members in respect of valuation of inventories, impairment tests of stores and spares, in this regard it

is clarified that the standard practice followed by the companyis to value the inventories, stores and spares

at lower of cost and net realizable value. However necessary exercise will be carried out and the results

would be incorporated in next annual financial statements of the Company.

Karachi: the

Your Directors also like to express thanks the assistance, support and cooperation given by various

Government Departments Regulatory Authorities, Shareholders, Customers, Suppliers and FinancialInstitutions.

On behalf of the Board

Aziz L. Jamal

Chairman & Chief Executives

As regards overdue export receivables which has not been realized it is stated that due to global recession

our export proceeds realization have been delayed and we now expect that the remittances would

commence in the near future.

We have negotiated with the bank which has agreed to extend maturity periods in order to coincide with

the projected cash flows of the Company. The Company is a going concern andyour directors are

committed to continue the business of the company.It is reiterated that the uncertainly as indicated in thereport on review of condensed interim financial information to the members is unlikely to materialize. The

uncertainly would have continued had the company would not have negotiated for restructuring of the

finances. Accordingly preparation of this condensed interim financial information on going concern basis

is justified.

Acknowledgement

The Management would like to place on record its appreciation for the continued dedication, hard work

commitment and loyalty of the executives, staff and workers engaged with the company at various levels.

ay ,



Introduction Introduction Introduction Introduction

Scope of review Scope of review Scope of review Scope of review

INDEPENDENT AUDITORS’ REPORT ON REVIEW OFINDEPENDENT AUDITORS’ REPORT ON REVIEW OFINDEPENDENT AUDITORS’ REPORT ON REVIEW OFINDEPENDENT AUDITORS’ REPORT ON REVIEW OFCONDENSED INTERIM FINANCIAL INFORMATION TO THE MEMBERSCONDENSED INTERIM FINANCIAL INFORMATION TO THE MEMBERSCONDENSED INTERIM FINANCIAL INFORMATION TO THE MEMBERSCONDENSED INTERIM FINANCIAL INFORMATION TO THE MEMBERS

We have reviewed the accompanying condensed interim balance sheet of HUSEINHUSEINHUSEINHUSEIN INDUSTRIESINDUSTRIESINDUSTRIESINDUSTRIES

LIMITEDLIMITEDLIMITEDLIMITED (the Company) as at December 31, 2011, and the related condensed interim profit and loss

account, condensed interim statement of comprehensive income, condensed interim cash flow

statement and condensed interim statement of changes in equity and notes to interim financial

information for the six month period then ended (here-in-after referred to as the “Interim financial

information”). Management is responsible for the preparation and fair presentation of this interim

financial information in accordance with approved accounting standards as applicable in Pakistan.

Our responsibility is to express a conclusion on this interim financial information based on our

review. The figures of the condensed profit and loss account for the quarter ended December 31, 2011

and 2010 have not been reviewed as we are required to review only the cumulative figures for the six

months period ended December 31, 2011.

We conducted our review in accordance with International Standard on Review Engagements 2410,

Basis for adverse conclusion Basis for adverse conclusion Basis for adverse conclusion Basis for adverse conclusion

ii. The Company has not carried out proper exercise of physical inventory, evaluating lower of cost

and net realizable value of stock in trade comprising of raw material, semi finished and finished

amounting to Rs. 468.501 (June 2011: Rs. 527.290) as disclosed in note 7 to the annexed interim

financial information. We have only been provided summary of these stocks showing quantities with

valuation without supported by detailed stock records. Accordingly, our conclusion regarding the

existence and value of stock in trade could not made;

“Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A

review of interim financial information consists of making inquiries, primarily of persons responsible

for financial and accounting matters, and applying analytical and other review procedures. A review

is substantially less in scope than an audit conducted in accordance with International Standards on

Auditing and consequently does not enable us to obtain assurance that we would become aware of all

significant matters that might be identified in an audit. Accordingly we do not express an auditopinion.

i. Stock records of Stores, spares and loose tools amounting to Rs. 95.181 (June 2011: Rs. 94.018)

million has not been made available to us and proper exercise of physical inventory, valuing cost and

assessment of impairment has not been carried. Accordingly, our conclusion regarding the existence

and value of stores, spares and loose tools could not be made;



These conditions along with the matters reported in Paragraphs (i) to (iii) above indicate theexistence of a material uncertainty that may cast significant doubt on the Company’s ability tocontinue as a going concern and therefore the Company may be unable to realize its assets anddischarge its liabilities in the normal course of business. The annexed interim financial information

iv. During the period, the Company has incurred loss after taxation amounting to Rs. 87.845 (Dec

2010: Rs. 69.126) million and its accumulated losses stand at Rs. 657.806 (Dec 2010: Rs. 254.809)

million eroding the shareholders’ equity to negative Rs. 225.547 (Dec 2010: positive Rs. 177.450)

million. Further, the turnover of the company has fallen by 31% in the current period as compared to

corresponding period and the Company has incurred gross loss of Rs. 66.919 million for the current

period as against gross profit of Rs. 43.911 million for the corresponding period. Moreover, as per

restructured financing arrangement with the lending bank, the company has to sell its properties to

pay off long term finance amounting to Rs. 953 million.

iii. Company’s trade debts as disclosed in Note 8 to the annexed interim financial information

include overdue export receivables Rs. 407.705 (June 2011: Rs. 410.294) million which has not yet

been realized during the current financial period. Furthermore, no provision has been made against

these receivables in this interim financial information. Accordingly, our conclusion regarding

realizability of these receivables could not made.

Adverse conclusion Adverse conclusion Adverse conclusion Adverse conclusion

Other matter Other matter Other matter Other matter

In their review report dated March 12, 2011, the auditors expressed an adverse conclusion for

reasons same as mentioned in paragraphs (i) and (ii) above and also included emphasis of matterparagraphs regarding going concern assumption and unrealized exports receivables amounting to Rs.

405.134 million.

.

Our review indicates that, owing to the significance of the matters stated in paragraphs i to iv above

and the possible adjustments that may require but are not determined, the interim financial

information does not give a true and fair view of the financial position of the HUSEIN INDUSTRIESHUSEIN INDUSTRIESHUSEIN INDUSTRIESHUSEIN INDUSTRIES

LIMITEDLIMITEDLIMITEDLIMITED as at December 31, 2011 and of its financial performance and its cash flows for the six-month period then ended in accordance with approved accounting standards as applicable in

Pakistan.

The interim financial information of the Company for the six months period ended December 31,

2010 and for the year ended June 30, 2011 were reviewed and audited by another chartered

accountant firm.



Haroon Zakaria & Company Place: Karachi

Chartered Accountants Dated: 07-MAY-2013

Engagement Partner:

Muhammad Iqbal

In their audit report dated September 15, 2012, the auditor expressed an adverse opinion for reasons

same as mentioned in paragraphs (i) to (iv) above and also included emphasis of matter paragraph

regarding inordinately delay in convening the annual general meeting.



December 31, June 30,

2011 2011

(Unaudited) (Audited)

Note

SSETS

Non-Current Assets

Property, plant and equipment 5 649,000 666,793

Deferred tax 6 19,736 19,736

Long term investments 362 569

Long term deposits 7,981 7,981

677,079 695,079

Current Assets

Stores, spares and loose tools 95,181 94,018

Stock in trade 7 468,501 527,290

Trade debts 8 676,762 714,447

CONDENSED INTERIM BALANCE SHEET (UN - AUDITED)

- - - - (Rupees in '000) - - - -

Loans and advances - Considered good 9 16,518 3,716

Deposits and short term prepayments 1,243 1,243

Other receivables - Considered good 7,011 3,976

Tax refunds due from government 13,782 32,635

Cash and bank balances 7,806 1,980

1,286,804 1,379,305

Total Assets 1,963,883 2,074,384



December 31, June 30,

2011 2011

(Unaudited) (Audited)

Note

EQUITY AND LIABILITIES

Share Capital and Reserves

Authorised share capital

15,000,000 Ordinary shares of Rs. 10 each 150,000 150,000

Issued, subscribed and paid up share capital

10,625,900 Ordinary shares of Rs. 10 each 106,259 106,259

Reserves 10 (331,806) (243,754)

Shareholders' Equity (225,547) (137,495)

Surplus on revaluation of fixed assets 333,715 333,715

Non-Current Liabilities

Long term finance 11 1,447,159 1,440,897

Deferred liability -staff gratuity 12,666 13,303

1,459,825 1,454,200

- - - - (Rupees in '000) - - - -

AS AT DECEMBER 31, 2011

Current Liabilities

Short term borrowings 12 133,165 94,449

Trade and other payables 13 174,921 213,655

Accrued markup 3,765 485

Current portion of long term finance 11 21,716 54,093

Unclaimed dividend 44,129 44,129

Provision for taxation18,194

17,152 395,890 423,964

Contingencies and Commitments 14 - -

Total Equity and Liabilities 1,963,883 2,074,384

________________________ _________________

Aziz L.Jamal Akhtar Wasim Dar

Chairman & Chief Executive Director

The annexed notes 1-18 form an integral part of this condensed interim financial information.



December 31, December 31, December 31, December 31,

2011 2010 2011 2010

Note

Sales - net 15 230,438 333,167 53,408 181,495

Cost of sales (297,357) (289,256) (87,884) (152,352)

Gross (loss) / profit (66,919) 43,911 (34,476) 29,143

Administrative expenses (13,750) (12,506) (7,963) (9,829)

Distribution expenses (7,151) (11,125) (1,806) (8,254)

(20,901) (23,631) (9,769) (18,083) (87,820) 20,280 (44,245) 11,060

Other Operating income 6,330 64 3,855 10

Operating (loss) / profit (81,490) 20,344 (40,390) 11,070

CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UN - AUDITED)

FOR THE HALF YEAR ENDED DECEMBER 31, 2011

Half year ended Quarter ended

- - - - (Rupees in '000) - - - -

Financial charges (4,038) (74,783) (1,849) (36,678)

Other operating charges - (11,362) - (11,362)

(4,038) (86,145) (1,849) (48,040)

Loss before taxation (85,528) (65,801) (42,239) (36,970)

Taxation - Current (2,317) (3,325) (1,770) (2,525)

Loss after taxation (87,845) (69,126) (44,009) (39,495) Loss per share-basic (8.27) (6.51) (4.14) (3.72)

________________________ _________________






December 31, December 31, December 31, December 31,

2011 2010 2011 2010

Loss for the period (87,845) (69,126) (44,009) (39,495)

Other comprehensive loss

Loss on remeasurement of available

for sales investment (207) - - -

Total comprehensive loss for the period (88,052) (69,126) (44,009) (39,495)

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)


Half year ended Quarter ended

- - - - (Rupees in '000) - - - -

________________________ _________________






December 31, December 31,

2011 2010

(Unaudited) (Unaudited)

A. CASH FLOW FROM OPERATING ACTIVITIES

Loss before taxation (85,528) (65,801)

Adjustments for non cash items and other charges

Depreciation 20,210 22,280

Provision for gratuity 346 -

Dividend income - (32)

Financial charges 4,038 74,783 Provision for doubtful debts - 11,362

Cash (used in) / generated from operating activities (60,934) 42,592

before working capital changes

CONDENSED INTERIM CASH FLOW STATEMENT (UN - AUDITED)


- - - - (Rupees in '000) - - - -

or ng cap a c anges

(Increase)/ decrease in current assets

Stores, spares and loose tools (1,163) (4,560)

Stock in trade 58,789 5,098

Trade debts 37,685 9,610

Loans and advances - Considered good (12,802) (26,334)

Deposits and short term prepayments - (6)

Other receivables (3,034) (228)

79,474 (16,420)

Decrease in current liabilities

Deferred liability -staff gratuity (38,734) (32,440)

Net cash used in operations (20,194) (6,268)

Staff gratuity paid (983) (976)

Tax refund / (paid) - net 17,578 (3,668)

Financial charges paid (758) (35,172)

Net cash used in operating activities (4,357) (46,084)

B. CASH FLOW FROM INVESTING ACTIVITIES

Fixed capital expenditures (2,417) -

Dividend received - 32

Net cash (used in)/generated from investing activities (2,417) 32



December 31, December 31,

2011 2010

(Unaudited) (Unaudited)

Note

C. CASH FLOW FROM FINANCING ACTIVITIES

Repayments of long term finance (26,115) (20,460)

Proceeds from short term borrowing - 34,697

Dividend paid - (102)

Net cash (used in)/generated from financing activities (26,115) 14,135

Net decrease in cash and cash equivalents (A+B+C) (32,889) (31,917)

Cash and cash equivalent at beginning of the period (43,670) (244,046)

(76,559) (275,963)

CASH AND CASH EQUIVALENT

Tax refunds due from government 7,806 6,158

Running finance facility 12 (84,365) (282,121)

Cash and cash equivalent at end of the period

- - - - (Rupees in '000) - - - -

(76,559) (275,963)

______________________ _________________








1 11 1 NATURE AND STATUS OF BUSINESS NATURE AND STATUS OF BUSINESS NATURE AND STATUS OF BUSINESS NATURE AND STATUS OF BUSINESS

2 22 2 BASIS OF PREPARATION BASIS OF PREPARATION BASIS OF PREPARATION BASIS OF PREPARATION

2.1 2.1 2.1 2.1

2.2 2.2 2.2 2.2

NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION

FOR THE HALF YEAR ENDED DECEMBER 31, 2011 FOR THE HALF YEAR ENDED DECEMBER 31, 2011 FOR THE HALF YEAR ENDED DECEMBER 31, 2011 FOR THE HALF YEAR ENDED DECEMBER 31, 2011

The Company was incorporated in Pakistan on May 25, 1953 as a Public Limited Company underthe repealed Companies Act 1913( now Company Ordinance 1984) in the name of Husein TextileMills Limited, which was changed to Husein Industries Limited in 1964. Its shares are listed onKarachi Stock Exchange in Pakistan. The major activities of the Company are textilemanufacturing, producing cotton and polyester yarn, cloth and garments, which are marketedwithin, and outside Pakistan. The registered office of the Company is situated at HT-8,LandhiIndustrial Area, Karachi.

These interim financial information of the Company for the half year period ended December 31,

2011 are unaudited and have been prepared in accordance with the requirements of the

International Accounting Standard 34 - Interim Financial Reporting and provisions of and directives

issued under the Companies Ordinance, 1984. In case where requirements differ, the provisions of

or directives issued under the Companies Ordinance, 1984 have been followed.

The figures of condensed interim profit and loss account for the quarters ended December 31, 2010and 2011 have not been reviewed by the auditors of the Company as they have reviewed the

2.3 2.3 2.3 2.3

2.4 2.4 2.4 2.4

2.5 2.5 2.5 2.5

3 33 3 SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES

3.1 3.1 3.1 3.1

3.2 3.2 3.2 3.2

, .information do not include all the information and disclosures required in annual financialstatements, and should be read in conjunction with Company's annual financial statements for theyear ended June 30, 2011.

These condensed interim financial information have been prepared under the historical cost

convention, except as otherwise disclosed in these notes.

Amendments to certain existing standards and new interpretations on approved accounting

standards effective during the period either were not relevant to the Company's operations or did

not have any impact on the accounting policies of the Company.

These interim financial information are presented in Pakistani Rupees which is also the Company'sfunctional currency and figures presented in these interim financial information have been rounded

off to the nearest thousand of Rupees.

The comparative balance sheet presented has been extracted from annual financial statements forthe year ended June 30, 2011, whereas comparative condensed profit and loss account, condensedcomprehensive statement of income, condensed cash flow statement and condensed statement of changes in equity have been extracted from the unaudited interim financial information for the sixmonths ended December 31, 2010.

The accounting policies, applied in the preparation of these interim financial information are the

same as those applied in the preparation of the annual audited financial statements of the Company

for the year ended June 30, 2011.



4 44 4 ACCOUNTING ESTIMATES, JUDGMENTS AND FINANCIAL RISK MANAGEMENT ACCOUNTING ESTIMATES, JUDGMENTS AND FINANCIAL RISK MANAGEMENT ACCOUNTING ESTIMATES, JUDGMENTS AND FINANCIAL RISK MANAGEMENT ACCOUNTING ESTIMATES, JUDGMENTS AND FINANCIAL RISK MANAGEMENT

4.1 4.1 4.1 4.1

4.2 4.2 4.2 4.2

4.3 4.3 4.3 4.3

December 31,December 31,December 31,December 31, June 30,2011 2011 2011 2011 2011

Note Note Note Note (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)

5 55 5 PROPERTY, PLANT AND EQUIPMENT PROPERTY, PLANT AND EQUIPMENT PROPERTY, PLANT AND EQUIPMENT PROPERTY, PLANT AND EQUIPMENT

The Company's financial risk management objectives and policies are consistent with thosedisclosed in the financial statements as at and for the year ended June 30, 2011.

- - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - -

The preparation of these interim financial information in conformity with approved accountingstandards as applicable in Pakistan requires management to make estimates, assumptions and use judgments that affect the application of policies and reported amounts of assets and liabilities and

income and expenses. Estimates, assumptions and judgments are continually evaluated and arebased on historical experience and other factors, including reasonable expectations of future events.Revision to accounting estimates are recognised prospectively commencing from the period of revision.

In preparing these interim financial information, the significant judgments made by management inapplying the Company’s accounting policies and the key sources of estimation and uncertainty werethe same as those that applied to the financial statements as at and for the year ended June 30,2011.

Opening written down value 666,793666,793666,793666,793 391,483 Additions during the period / year 5.1 2,4172,4172,4172,417 150Disposal during the period / year ---- (15,393)Revaluation of free and lease hold landduring the year ---- 333,715Depreciation charge for the period / year (20,210) (20,210) (20,210) (20,210) (43,162)Closing written down valueClosing written down valueClosing written down valueClosing written down value 649,000649,000649,000649,000 666,793

5.1 5.1 5.1 5.1 Additions during the period / year Additions during the period / year Additions during the period / year Additions during the period / year

Building on lease hold land 147147147147 -

Plant and machinery 2,2702,2702,2702,270 150 2,4172,4172,4172,417 150

6 66 6 DEFERRED TAX DEFERRED TAX DEFERRED TAX DEFERRED TAX

This comprises of the following: -

Taxable temporary differenceTaxable temporary differenceTaxable temporary differenceTaxable temporary difference Accelerated tax depreciation (33,548)(33,548)(33,548)(33,548) (16,720)

Deductible temporary differencesDeductible temporary differencesDeductible temporary differencesDeductible temporary differencesProvision for grauity 2,6722,6722,6722,672 1,327

Provision for doubtful debts 3,0853,0853,0853,085 3,977

Provision for slow moving items ---- 402

Minimum tax impact 9,3549,3549,3549,354 -

Effect of tax losses 112,481112,481112,481112,481 30,750

127,592127,592127,592127,592 36,456

Deferrd tax asset not recognized 6.1 (74,308)(74,308)(74,308)(74,308) - 19,73619,73619,73619,736 19,736



6.1 6.1 6.1 6.1

December 31,December 31,December 31,December 31, June 30,

2011 2011 2011 2011 2011 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)

Note Note Note Note

7777 STOCK IN TRADE STOCK IN TRADE STOCK IN TRADE STOCK IN TRADE

Raw material 7,8417,8417,8417,841 6,10 ork in process 45,01445,01445,01445,014 291,96

Finished goods 415,646415,646415,646415,646 229,22 468,501468,501468,501468,501 527,29

8888 TRADE DEBTS TRADE DEBTS TRADE DEBTS TRADE DEBTS

Exports Exports Exports Exports Considered good 455,830455,830455,830455,830 407,02 Considered doubtful 3,2653,2653,2653,265 3,26

459,095459,095459,095459,095 410,29

Deferred tax asset as at December 31, 2011 to the extent of 74.308 million (June 2011: nhas not been recognized as the Company does not expect to generate the sufficient taxabprofits against which such benefits can be utilized.

- - - - (Rupees in '000) - - - - - - - (Rupees in '000) - - - - - - - (Rupees in '000) - - - - - - - (Rupees in '000) - - -

Considered good 220,932220,932220,932220,932 307,41 Considered doubtful 11,36211,36211,36211,362 11,36

232,294232,294232,294232,294 318,78 691,389691,389691,389691,389 729,02

Provision against debts considered doubtful (14,627)(14,627)(14,627)(14,627) (14,62

676,762676,762676,762676,762 714,39

9999 LOANS AND ADVANCES - CONSIDERED GOOD LOANS AND ADVANCES - CONSIDERED GOOD LOANS AND ADVANCES - CONSIDERED GOOD LOANS AND ADVANCES - CONSIDERED GOOD

LoansLoansLoansLoansto employees 1,6881,6881,6881,688 1,71 to contractors 241241241241 24

1,9291,9291,9291,929 1,96

Advances Advances Advances Advancesagainst expenses 962962962962 55 to employees 1,1281,1281,1281,128 1,19 to contractors 653653653653 - to suppliers 11,84611,84611,84611,846

14,58914,58914,58914,589 1,75

16,51816,51816,51816,518 3,71

10 0 10 0 RESERVES RESERVES RESERVES RESERVES

Capital reserves 33,85833,85833,85833,858 33,85

Revenue reserves 292,142292,142292,142292,142 292,14

Accumulated losses (657,806)(657,806)(657,806)(657,806) (569,75 ,, (365,664)(365,664)(365,664)(365,664) (277,61

(331,806)(331,806)(331,806)(331,806) (243,75



10.1 10.1 10.1 10.1

10.2 10.2 10.2 10.2 This represents appropriation of profit in preceding years to meet future contingencies.


2011 2011 2011 2011 2011

(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)

Note Note Note Note - - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - -

11 11 11 11 LONG TERM FINANCE LONG TERM FINANCE LONG TERM FINANCE LONG TERM FINANCE

- Secured - Secured - Secured - Secured

From a banking companyFrom a banking companyFrom a banking companyFrom a banking company

Export Oriented Projects - 24,677

Term finance 11.1 1,468,8751,468,8751,468,8751,468,875 1,470,313

1,468,8751,468,8751,468,8751,468,875 1,494,990

Current and overdue portion shown under current liabilities (21,716)(21,716)(21,716)(21,716) (54,093) 1,447,1591,447,1591,447,1591,447,159 1,440,897

11.1 11.1 11.1 11.1

This represents share premium received in the preceding years and is held for utilization of purposesas stated in Section 83 of the Companies Ordinance, 1984.

As per restructuring agreement with the bank on May 11, 2011, this amount of Term Finance isrepayable in monthly instalments of different amounts over the period of ten years ranging from Rs.

200,000 to Rs. 5,081,750 including lump sum payments of Rs. 953 million on sale of properties of the

Company in years 2013 and 2014 . Further, no markup shall be charged till June 2012 and

thereafter, markup would be charged at rate applicable on 3 months Treasury Bills prevailing from

time to time. The other terms of Term Finance are same as disclosed in the financial statements of


2011 2011 2011 2011 2011


Note Note Note Note - - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - -

12 12 12 12 SHORT TERM BORROWING SHORT TERM BORROWING SHORT TERM BORROWING SHORT TERM BORROWING

- Secured - Secured - Secured - Secured

From Banking CompanyFrom Banking CompanyFrom Banking CompanyFrom Banking Company

Running finance under markup arrangements Running finance under markup arrangements Running finance under markup arrangements Running finance under markup arrangements

- restructured 12.1 49,99149,99149,99149,991 35,756

- overdue 12.2 34,37434,37434,37434,374 9,893

84,36584,36584,36584,365 45,649

Packing credit facility 12.3 48,80048,80048,80048,800 48,800 133,165133,165133,165133,165 94,449

12.1 12.1 12.1 12.1

12.2 12.2 12.2 12.2

the Company for the year ended June 30, 2011.

The facility has a sanctioned limit of Rs. 50 million and carries markup at the rate three monthsKIBOR. The facility is secured against hypothecation of raw material, semi finished, finished goods,receivables and machinery, equitable mortgage on properties of the Company and personal

guarantees of Chief Executive and directors of the Company.

Company's all matured and overdue financing has been restructured on May 11, 2011 and at thetime of restructure, this overdue balance was required to be paid by the Company which could not bepaid during the period.



12.3 12.3 12.3 12.3

December 31,December 31,December 31,December 31, June 30,2011 2011 2011 2011 2011


13 13 13 13 TRADE AND OTHER PAYABLES TRADE AND OTHER PAYABLES TRADE AND OTHER PAYABLES TRADE AND OTHER PAYABLES

Creditors 146,813146,813146,813146,813 168,920

Accrued and other Liabilities 28,97128,97128,97128,971 44,735

175,784175,784175,784175,784 213,655

14 14 14 14 CONTINGENCIES AND COMMITMENTS CONTINGENCIES AND COMMITMENTS CONTINGENCIES AND COMMITMENTS CONTINGENCIES AND COMMITMENTS

There were no changes in the contingencies and commitments since the last audited financial statements.

December 31,December 31,December 31,December 31, December 31,

2011 2011 2011 2011 2010 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)

The company has obtained packing credit facility from banking company with the sanctioned limit of

Rs.80 million and carries markup at the rate three months KIBOR. The facility is secured against LCs

held under the lien of the lending banking company, 35% margin of Lc value for the procurement of

grey fabric and 35% margin of contract value for packing credit against contracts.



Local Sales 44,54944,54944,54944,549 42,378

Direct Export 91,56091,56091,56091,560 166,591

Indirect Export 94,32994,32994,32994,329 124,198

185,889185,889185,889185,889 290,789

230,438230,438230,438230,438 333,167

16 TRANSACTIONS WITH RELATED PARTIES

Directors

Fees - - - -

Managerial

remuneration 134 810 134 - 750

Housing 48 685 48 - 632

Utilities 499 932 324 - 830

681 5 2,427 506 5 2,212

No. of Person(s) 1 6 5 1 6 5

In addition, the Chief Executive, Directors, and Executives are provided with free use of the company 's maintained cars.

Executives

- - - - - - - - - - - - - - - - - - Rupees in (000) - - - - - - - - - - - - - - - - - -

5 5

Related parties comprise of directors and other key management personnel. Remuneration and other benefits paid to Chief

Executive, Directors and Executives are as follows:

December 31, 2011 December 31, 2010

Chief

Executive Executives

Chief

Execu Directors



17 GENERAL

Figures have been rounded off to the nearest thousand of rupees.

18 DATE OF AUTHORIZATION FOR ISSUE

________________________ _________________



These interim financial information were authorized for issue on 07-May-2013 by the Board of Directors of the

Company.

Documents

Half yearly FS