tar Textile Mills Limited t tar Textile Mills Limited_____ BOARD OF DIRECTORS Mr. Ismail Mohamed Chairman Mr. Ilyas Mohamed Chief Executive Mr. Nasrullah Rahmat Director Mr. Izatullah

1

tar Textile Mills Limited____________________________________

Company Information 2

Notice of Meeting 3

Directors’ Report 4

Key Operating and Financial Data 6

Auditors Report to the Members 7

Balance Sheet 9

Profit & Loss Account 10

Statements of Changes in Equity 11

Cash Flow Statement 12

Notes to the Accounts 13

Pattern of Shareholding 29

CONTENTS

2

t tar Textile Mills Limited_______________________________

BOARD OF DIRECTORSMr. Ismail Mohamed ChairmanMr. Ilyas Mohamed Chief ExecutiveMr. Nasrullah Rahmat DirectorMr. Izatullah Rahmat DirectorMr. Lutfullah Rahmat DirectorMr. Mohammad Hanif DirectorMr. Ashraf Mohamed Director

COMPANY SECRETARY

Mr. Mohammed Hanif

HOLDING COMPANY

M/s Matell Limited, British Virgin Island.

AUDITORS

S.Shakeel Ur Rehman & CoChartered Accountants.

BANKERS

Habib Metropolitan Bank LimitedFaysal Bank LimitedBank Al-Falah LimitedMeezan Bank LimitedBank Al-Habib LimitedM.C.B Bank Limited.Habib Bank LimitedSummit Bank

REGISTERED OFFICE & MILLS

A/41, Fakhruddin Valika Road,S.I.T.E.,Karachi- 75700.Phone : 32561127-29Fax : 32580836e-mail : [email protected]

COMPANY INFORMATION

3

tar Textile Mills Limited_________________________________________

Ordinary Business:

1.

2.

3.

4

5

Karachi: October 04, 2014

NOTE:1.

2.

3.

4.

5.

6.

To transact any other ordinary business, with the permission of the chair.

By Order of the Board,

Shareholders are requested to notify the Company of any change in their addresses.Proxy Form is enclosed herewith.

Share transfer book of the company will be closed from 23rd October to 31st October, 2014 (bothdays inclusive) for the purpose of Annual General Meeting.A shareholder entitled to attend and vote can appoint another shareholder, as proxy..

Proxies in order to be effective, must be received , at the Registered Office of the Company, not lessthan 48 hours before the meeting and must be stamped,. signed and witnessed.

The Proxy shall produce his/her original CNIC or original passport at the time of the meeting.

(Mohammed Hanif)Company Secretary

To consider and adopt the Company’s Audited Accounts, the Auditors’ Report and the Directors’Report, for the year ended 30th June ,2014

To appoint auditors for the year 2014-15 and fix their remuneration. M/s S.Shakeel Ur Rehman &

Co. Chartered Accountants retire and being eligible, offer themselves for reappointment. Notice u/s

253 of the Companies Ordinance, 1984 has been received by the company from a shareholder

proposing the name of M/s S.Shakeel Ur Rehman & Co. Chartered Accountants for appointment as

auditors of the company for the ensuing year 2014-15 at the annual general meeting.

To elect seven directors as fixed by Board, in accordance with the provision of the Companies

Ordinance 1984, for a period of three years. The existing directors have expressed thier willingness

to retire before the date of expiry of thier term i.e; 31st October 2014 and offer themselves for re-

election. The retiring Directors are, Messers Ismail Mohamed, Ilyas Mohamed, Nasrullah Rehmat,

Izatullah Rahmat, Lutfullah Rahmat, Mohammad Hanif, and Ashraf Mohamed.

NOTICE OF MEETING

The 62nd Annual General Meeting of shareholders of the Company , will Insha Allah , be held on 31st October,2014 at 10:30 am at the Mills Premises, at Plot No. A/41, Fakhruddin Valika Road, S.I.T.E Karachi, to transactthe following business:

To confirm the minutes of Annual General Meeting held on 31st October, 2013

4

tar Textile Mills Limited_______________________________________

DIRECTORS' REPORT TO THE SHAREHOLDERS

OPERATING RESULTS:

FINANCIAL ARRANGEMENTS:

FUTURE OUTLOOK:

In order to survive under the present textile scenario we diversified our business activities and enteredinto export business. During the year under review export sales were Rs.128,912,895/- and we are makingall efforts to recapture the export business.

The management is of firm believer of the notion, "either you grow or closedown " and the present dismalscenario of textile industries in our country invigorates this very notion .Your management has threepronges strategy for the growth:efficiency, cost cutting and increased production. Without efficiency noindusry can grow, our main focus in this is " Human Resources Development " For this purpose yourdirectors directly involve and apart from skill development they address all their grievances and personalproblems.Thus it proved successful and net income of Rs.51,602,812/- was earned during the year.

Finance facilities of Rs.100 million for cash finance were not utilized and Rs.75 million for runningfinance sanctioned by Habib Metropolitan Bank Ltd and running finance facilities of Rs.23 millionfrom Bank Al-Habib Ltd. were utilized at lower extent..The main contributing factors for the reduction inutilisation of finance facilities were cost cutting, timely collection of dues from customers and internalmark-up free funds provided by Directors. Payments of mark-up to the Company's bankers were also madetimely.

The provision for tax of Rs.11,119,224/- for the current year represents minimum tax and tax on rentalincome. However, in compliance with International Accounting Standard 12, deferred tax assets werereduced by Rs.14,312,595/- thereby increasing tax charge. The income after tax was Rs.26,170,993/- ascompared with last year's of Rs.36,029,945/=) .

The Board of Directors of the Company presents the 62nd Annual Report and the Audited FinancialStatements of the Company for the year ended June 30, 2014

By the Grace of Allah, the Company has shown better performance. The gross profit for the year underreview was Rs. 76,624,438/- as compared to the last year's gross profit of Rs.136,961,608/-. This is despiteunfavorable economic and business conditions. The administrative general and selling expenses were lowerby Rs.1,873,444/- (5.30%) as compared with last year, showing good performance. The net income beforetaxation for the year under review was Rs.51,602,812/- as compared with last year's net income ofRs.88,945,890/-. The financial charges were Rs.1,342,843/-.The other income of Rs.23,588,223/- washigher by Rs.9,556,897/- (68.11%) as compared with last year's of Rs.14,031,326/-.

5

tar Textile Mills Limited___________________________________________

The pattern of share holding in the prescribed format is annexed.

ON BEHALF OF THE BOARDISMAIL MOHAMED CHAIRMAN

Karachi: October 04, 2014

ACKNOWLEDGEMENT:The Directors of the Company would like to place on record their appreciation for the hard work andcontinued dedication shown by the employees of the Company. The company's bankers, suppliers andbuyers have also been instrumental for the success of the company.

PATTERN OF SHAREHOLDING:

AUDITORS:The present auditors of the company, M/s. S. Shakeel Ur Rehman & Co. Chartered Accountants retireand being eligible offer themselves for reappointment. Notice U/s 253 of the Companies Ordinance1984 has been received by the Company from a shareholder proposing the name of M/s . S. Shakeel UrRehman & Co. Chartered Accountants for appointment as auditors of the company for the ensuing year2014-15 at the annual general meeting to be held on 31st October 2014

6

tar Textile Mills Limited___________________________________________

(Rs. in Million)Financial Position 2008 2009 2010 2011 2012 2013 2014

Paid up Capital 54.53 54.53 54.53 54.53 54.53 54.53 54.53 Reserve & Surplus 35.89 (4.23) 20.54 (52.99) (102.27) (66.24) (40.07) Shareholders' Equity 90.42 63.13 87.90 14.37 (34.92) 1.11 27.28 Long Term Loans 76.14 76.42 183.18 206.04 257.16 223.96 227.12Long Term Loan From Directors 132.00 155.00 77.40 107.10 164.90 300.53 246.05 Current Liabilities 198.63 76.01 134.04 235.43 225.15 187.31 199.45 Current Assets 255.75 100.48 198.76 242.34 271.06 342.19 351.84 Operating Fixed Assets (Net) 213.50 217.76 238.35 266.02 283.74 357.98 346.68 Total Assets 507.18 373.91 485.87 567.26 617.43 721.50 707.55

Operational Position

Sales (Net) 424.43 206.21 489.73 1,247.82 1,101.76 1,422.23 1,088.33 Cost Of Sales 403.72 244.93 444.79 1,335.90 1,106.35 1,285.27 1,011.71 Gross Profit / (Loss ) 20.71 (38.72) 44.94 (88.08) (45.89) 136.96 76.62 Operating Expenses 12.82 8.87 18.40 26.67 27.07 35.36 33.49 Operating Profit / (Loss) 7.89 (47.59) 26.53 (114.75) (31.66) 101.60 43.13 Financial Charges 19.45 12.46 11.21 10.51 12.86 9.08 11,34Profit before Taxation 3.26 (56.96) 57.74 (108.56) (54.77) 88.95 51.60 Profit / (Loss) After Taxation 11.05 (27.29) 24.77 (73.53) (49.29) 36.03 26.17

KEY OPERATING AND FINANCIAL DATAFROM 2008 TO 2014

7

tar Textile Mills Limited______________________________________

AUDITORS’ REPORT TO THE MEMBERS

We have audited the annexed balance sheet of STAR TEXTILE MILLS LIMITED, Karachi as atJune 30 2014 and the related profit and loss account, cash flow statement and statement of changesin equity together with the notes forming part thereof, for the year then ended and we state that wehave obtained all the information and explanation which, to the best of our knowledge and belief,were necessary for the purpose of our audit.

It is the responsibility of the company’s management to establish and maintain a system of internalcontrol, and prepare and present the above said statements in conformity with the approvedaccounting standards and the requirement of the Companies Ordinance, 1984. Our responsibility isto express an opinion on these statements based on our audit.

We conducted our audit in accordance with the auditing standards as applicable in Pakistan. Thesestandards require that we plan and perform the audit to obtain reasonable assurance about whetherthe above said statements are free of any material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the above said statements. An auditalso includes assessing the accounting policies and significant estimates made by management, aswell as, evaluating the overall presentation of the above said statements. We believe that our auditprovides a reasonable basis for our opinion and, after due verification, we report that:

a) In our opinion, proper books of accounts have been kept by the Company as required by theCompanies Ordinance, 1984.

b) In our opinion:

i) The balance sheet and profit and loss account together with the notes thereon have been drawnup in conformity with the Companies Ordinance. 1984, and are in agreement with the books ofaccounts and are further in accordance with accounting policies consistently applied;

ii) The expenditure incurred during the year was for the purpose of the company’s business; and

iii) The business conducted, investments made and the expenditure incurred during the year were inaccordance with the objects of the company;

8


the balance sheet, profit and loss account, cash flows statement and statement of changes in equitytogether with the notes forming part thereof conform with the approved accounting standards asapplicable in Pakistan, and, they give the information required by the Companies Ordinance, 1984,in the manner so required and respectively give a true and fair view of the state of Company’s affairsas at June 30, 2014 and of the profit, its cash flows and changes in equity for the year then ended;and

d) In our opinion no Zakat was deductible at source under the Zakat and Usher Ordinance, 1980(XVIII of 1980).

S. Shakeel Ur Rehman & Co.Chartered Accountants

KarachiDate:October 04, 2014

9

tar Textile Mills Limited_____________________________________________

NOTES 2014 2013(Rupees) (Rupees)

NON CURRENT ASSETSProperty, plant & equipment - Tangible 4.1 346,660,533 357,956,036 - Intangible 4.2 17,514 24,478

346,678,047 357,980,514

Long term deposits 4,596,050 2,585,800

Deferred taxation 5 4,437,601 18,750,196

CURRENT ASSETSStores & spare parts 6 10,957,235 10,773,382 Stock in trade 7 208,911,733 160,819,021 Trade receivables 8 30,240,276 52,205,741 Loans & advances 9 74,298,932 75,749,271 Prepayments, accrued interest & other receivables 10 12,539,856 13,950,619 Cash & bank balances 11 14,888,287 28,693,814

351,836,319 342,191,848

707,548,017 721,508,358

AUTHORIZED CAPITAL6,000,000 Ordinary shares of Rs 10 each 12 60,000,000 60,000,000

Issued, subscribed & paid up capital 12 54,528,180 54,528,180 Share premium 12,829,488 12,829,488 Accumulated Loss 13 (40,072,891) (66,243,884)

27,284,777 1,113,784

NON CURRENT LIABILITIES

Long term loans -Under mark up arrangements 14 227,125,000 223,963,312 Long term loan-Interest Free 15 246,049,854 300,531,721 Long term deposits 3,507,300 3,507,300 Deferred liabilities 16 4,127,750 5,079,550

480,809,904 533,081,883

CURRENT LIABILITIES

Short term finance under mark up arrangements 17 60,062,400 37,984,634 Trade & other payables 18 139,390,936 149,328,057

199,453,336 187,312,691

CONTINGENCIES & COMMITMENTS 19 - -

707,548,017 721,508,358

The annexed notes from 1 to 34 form an integral part of these financial statements.

___________ __________________DIRECTOR CHIEF EXECUTIVE

KarachiDated: October 04, 2014

STAR TEXTILE MILLS LIMITEDBALANCE SHEET

AS AT 30TH JUNE, 2014

10

tar Textile Mills Limited______________________________

NOTES 2014 2013(Rupees) (Rupees)

Sales 20 1,088,334,203 1,422,228,296 Cost of Sales 21 1,011,709,765 1,285,266,688

Gross profit 76,624,438 136,961,608

Administrative & general expenses 22 27,424,820 20,433,862 Selling & distribution expenses 23 6,065,386 14,929,788

33,490,206 35,363,650

Operating income 43,134,232 101,597,958

Other income 24 23,588,223 14,031,326 66,722,455 115,629,284

Financial charges 25 11,342,843 9,081,648 Other charges 26 3,776,800 17,601,746

15,119,643 26,683,394

Income before taxation 51,602,812 88,945,890

Taxation 27 (25,431,819) (52,915,945)

Income for the year 26,170,993 36,029,945

Other comprehensive income - -

Total comprehensive income 26,170,993 36,029,945

Earning per share 28 4.80 6.61


__________ ________________DIRECTOR CHIEF EXECUTIVE

Karachi.Dated: October 04, 2014

PROFIT & LOSS ACCOUNTFOR THE YEAR ENDED 30TH JUNE, 2014

STAR TEXTILE MILLS LIMITED

11

tar Textile Mills Limited_________________________________________________________________

Issued subscribed Share General un-appropriated / Total& paid up capital Premium Reserve (Accumulated loss)--------------------------------------------------- (Rupees) ----------------------------------------------

Balance at July 1, 2012 54,528,180 12,829,488 - (102,273,829) (34,916,161)

Profit for the year ended June 30, 2013 - - - 36,029,945 36,029,945

Balance as at June 30, 2013 54,528,180 12,829,488 - (66,243,884) 1,113,784

Profit for the year ended June 30, 2014 - - - 26,170,993 26,170,993

Balance as at June 30, 2014 54,528,180 12,829,488 - (40,072,891) 27,284,777


______________ __________________DIRECTOR CHIEF EXECUTIVE

KarachiDated: October 04, 2014

STAR TEXTILE MILLS LIMITEDSTATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30TH JUNE, 2014

12 tar Textile Mills Limited________________________________________

2014 2013(Rupees) (Rupees)

CASH FLOW FROM OPERATING ACTIVITIESProfit before taxation 51,602,812 88,945,890 Adjustment of non-cash charges and other items:

Gratuity 442,000 2,183,898 Depreciation 37,503,652 30,916,372 Amortization of intangible assets 6,964 12,057 (Gain)/loss on revaluation of foreign exchange liabilities (6,807,847) 8,576,624 Financial charges 11,342,843 9,081,648

42,487,612 50,770,599 Operating profit before working capital changes 94,090,424 139,716,489

WORKING CAPITAL CHANGES(Increase) / decrease in current assets

Stores and spare parts (183,853) (469,721) Stock in trade (48,092,712) (83,045,793) Trade receivables 21,965,465 47,429,630 Loans & advances 3,671,315 (15,138,173) Prepayments, accrued interest & other receivables 1,410,763 350,962

(21,229,022) (50,873,095)

Increase / (decrease) in current liabilitiesTrade & other payables (14,721,265) (5,257,695) Short term finance under mark up arrangements 22,077,766 (34,682,101)

7,356,501 (39,939,796) Changes in working capital (13,872,521) (90,812,891)

Cash generated from operations 80,217,903 48,903,598 Payments for:

Gratuity (1,393,800) (750,700) Financial charges (6,558,699) (6,982,969) Income tax (13,340,200) (16,069,927)

(21,292,699) (23,803,596) Net cash inflow from operating activities 58,925,204 25,100,002

CASH FLOW FROM INVESTING ACTIVITIESAcquisition of property, plant & equipment (26,208,151) (105,161,091) Long term deposits (2,010,250) (2,215,000)

Net cash outflow from investing activities (28,218,401) (107,376,091)

CASH FLOW FROM FINANCING ACTIVITIESLong term loans (44,512,332) 95,881,819

Net Increase / (decrease) in cash flow during the year (13,805,527) 13,605,730 Cash and cash equivalent at the beginning of the year 28,693,814 15,088,084 Cash and cash equivalent at the end of the year 14,888,287 28,693,814


Director Chief Executive

Karachi. Dated: October 04, 2014

CASH FLOW STATEMENTFOR THE YEAR ENDED 30TH JUNE, 2014

STAR TEXTILE MILLS LIMIMTED

13

tar Textile Mills Limited________________________________________

1 STATUS AND NATURE OF BUSINESS:

2 BASIS OF PREPARATION

2.1 STATEMENT OF COMPLIANCE

2.2 ACCOUNTING CONVENTION

These financial statements have been prepared under the historical cost convention.

2.3 REPORTING CURRENCY

2.4 SIGNIFICANT ACCOUNTING JUDGMENTS & ESTIMATES

These financial statements have been prepared in accordance with the approved accounting standards,as applicable in Pakistan. Approved accounting standards comprise of Accounting & FinancialReporting Standards (AFRS) for Medium-Sized Entities (MSEs) issued by the Institute of CharteredAccountants of Pakistan and provision of and directives issued under the Companies Ordinance, 1984.In case requirements of the Companies Ordinance, 1984 or directives issued by the Securities &Exchange Commission of Pakistan differs with the requirements of applicable AFRS, the provisions ofthe Companies Ordinance , 1984 or requirement of the said directives shall prevail.

These financial statements are presented in Pakistani Rupee. All financial information presented in Pakistani Rupee has been rounded off to the nearest Rupee.

The preparation of financial statements in conformity with Accounting & Financial ReportingFramework for Medium Sized Entities requires the use of certain critical accounting estimates. It alsorequires management to exercise its judgment in the process of applying company's policies. Estimatesand judgments are continually evaluated and are based on historical experience and other factors,including expectation of future events that are believed to be reasonable under the circumstances.Revision to accounting estimates are recognized in the period in which the estimate is revised and in any future periods effected.

STAR TEXTILE MILLS LIMITEDNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 3OTH JUNE, 2014

Star Textile Mills Limited was incorporated in Pakistan on May 26, 1952 as a public limited company.

Registered office of the company is situated at A/41, Fakhruddin Valika Road, S.I.T.E , Karachi. Its shares

were quoted on Karachi Stock Exchange since 1970 but was delisted from the Karachi Stock Exchange w.e.f.

April 09, 2004. The principal activity of the company is manufacture and sale of textile products. The company

is a subsidiary of Matell Limited of British Virgin Island (the holding company) with shareholding of 79.10%.

14

tar Textile Mills Limited______________________________________________

3 SIGNIFICANT ACCOUNTING POLICIES

3.1

3.2 EMPLOYEES RETIREMENT BENEFITS -DEFINED BENEFIT PLAN

3.3 EMPLOYEES' COMPENSATED ABSENCES

3.4 BORROWING COSTS

3.5 TAXATION:

3.5.1 CURRENT

3.5.2 DEFERRED

3.6 PROPERTY, PLANT & EQUIPMENT

Deferred income tax is provided using the liability method for all temporary differences at the balancesheet date between tax basis of assets & liabilities and their carrying amounts for financial reportingpurpose.

Deferred tax assets is recognized for all deductible temporary differences and carry forward of unusedtax losses to the extent that it is probable that taxable profit will be available against which suchtemporary differences & tax losses can be utilized.

PRESENTATION OF FINANCIAL STATEMENTS

IAS (revised) 'Presentation of Financial Statements' requires presentation of transactions with owners in

statement of Changes in Equity and with non-owners in the Statement of Comprehensive Income. The

revised standard requires an entity to opt for presenting such transactions either in a single statement of

comprehensive income or in an income statement and a separate statement of comprehensive income.

The compnay has elected to present one performance statement (i.e the profit and loss account).

Deferred tax assets & liabilities are measured at the tax rate that are expected to apply to the periodwhen the asset is realized or the liability is settled, based on tax rates that have been enacted orsubstantively enacted at the balance sheet date.

These are stated at cost less accumulated depreciation except leasehold land and capital work inprogress, which are stated at cost. Significant borrowing costs relates to acquisition of fixed assetsrelated to periods prior to the same being put into use is capitalized which reflect the pattern in whichassets' economic benefits are consumed by the enterprise.

Depreciation is charged on monthly basis over the useful life of the assets, to income applying thereducing balance method which reflects the pattern in which the assets' economic benefits areconsumed by the company at the rates specified in note No. 4.

The company operates an un-funded gratuity scheme for its permanent employees. The minimumqualifying period for entitlement to gratuity is one completed year of service with the company. Thegratuity is based on last drawn salary. Provision is made in the financial statements to cover theobligation annually.

Accruals on account of compensated absences of employees are made using their salary levels.

Mark up, interest and other charges on borrowings are capitalized up to the date of commissioning ofthe related property , plant & equipment acquired out of the proceeds of such borrowings. All othermark up, interest and other charges are recogniized as an expense in the period in which they areincurred.

The provision for current taxation is computed in accordance with the provisions of the Income TaxOrdinance, 2001.

15

tar Textile Mills Limited______________________________________________3.7

3.8

3.9 LEASED ASSETS

3.10 STORES AND SPARES These are valued at moving average cost.

3.11 STOCK-IN-TRADE

3.12 STOCK-IN TRANSIT

3.13 TRADE AND OTHER RECEIVABLES

3.14 FOREIGN CURRENCY TRANSACTIONS

The company accounts for assets acquired under finance lease by recording the assets and relatedliability at fair value. Financial charges are allocated to accounting period in a manner so as to provide a constant periodic rate of charge on the outstanding liability. Depreciation is charged at the ratesspecified in the note No.4 to write off the assets over its estimated useful life.

Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses, ifany. The depreciable amount of intangible asset is amortised on a systematic basis over the estimateduseful lives using the reducing balance method.

An assessment is made at each balance sheet date to determine whether there is any indication ofimpairment or reversal of previous impairment of assets including items of property, plant andequipment and intangible assets. In the event that an asset's carrying amount exceeds its recoverableamount, the carrying amount is reduced to recoverable amount and an impairment loss is recognized inthe income statement. A previously recognized impairment loss is reversed only if there has been achange in the estiamtes used to determine the recoverable amount, however not to an amount higherthen the carrying amount that would have been determined (net of amortisation or depreciation), had noimpairment losses been recognized for the asset in prior years. Reversal of impairment loss is restrictedto the original cost of the asset.

INTANGIBLE ASSETS

In respect of tangible assets acquired under operating lease/ijara, the lease rentals are charged to profit and loss account.

IMPAIRMENT OF ASSETS

These are valued at cost incurred and directly attributable expenses, if any.

Trade debts and other receivables originated by the company are recognized and carried at originalinvoice amount. Debts considered irrecoverable are written-off and provision is made for debtsconsidered doubtful, if any.

Transaction in foreign currencies are translated into Pak Rupees at the rate of exchange approximatingthose prevailing on the date of transactions. Assets and liabilities in foreign currencies are translatedinto Pak Rupees at the rates of exchange ruling on the balance sheet date. Exchange differences areincluded in the profit and loss account currently.

Raw materials in stocks are valued at lower of weighted average cost and net realizable value. Work-in-process is stated at average cost of materials, including a portion of manufacturing overheads.Finished goods are stated at lower of average cost and net realizable value. Cost includes prime cost andappropriate proportion of production overheads. Net realizable value signifies the estimated sellingprice in the ordinary course of business less the estimated costs of completion and the estimated costnecessarily to be incurred to make the sales.

16


3.15

3.16 PROVISIONS

3.17 REVENUE RECOGNITION

3.18 FINANCIAL INSTRUMENTS

3.18.1 RECOGNITION

3.18.2 OFF-SETTING

3.19

3.20 TRANSFER PRICING

All transactions between the company and related parties are recorded at arm's length prices determinedin accordance with comparable uncontrolled Price method. Loan from related parties on soft terms arean exception.

TRADE & OTHER LIABILITIES

Liabilities for trade and other payable are carried at cost which is the fair value of the consideration tobe paid in the future for goods and services received.

Provisions are recognized when the company has a present legal or constructive obligation as a result ofpast events and it is probable that an outflow of resources will be required to settle the obligation and areliable estimate of the amount can be made.

Sales are recorded on dispatch of goods to customers. Income from deposits and rentals are recognized on accrual basis.

All the financial assets and the financial liabilities are recognized at the time when the companybecomes a party to the contractual provisions of the instrument. Any gain or loss on derecognizing ofthe financial assets and financial liabilities is taken to profit and loss account currently.

Financial assets and financial liabilities are only offset and the net amount reported in the financial

statements when there is a legally enforceable right to set-off the recognized amounts and the company

intends to either settle on net basis or to realize the assets and settle the liability simultaneously.

CASH AND CASH EQUIVALENTS

Cash in hand and at banks are carried at fair value. For the purpose of cash flow statement, cash and

cash equivalents consist of cash in hand, balance in banks and highly liquid short term investments.

17

tar Textile Mills Limited_________________________________________________________________________________

4 Property , plant & equipments4.1.1 TANGIBLE ASSETS

W.D.V As at Deletion As At As at Deletion For the As at As at

01.07.13 & Adj. 30.06.14 01.07.13 & Adj. Year 30.06.14 30-06-14

Owned Assets

Lease hold Land 3,519,344 - 3,519,344 - - - - - 3,519,344

Building on leasehold land: Building - Factory 84,588,952 84,588,952 10 % 36,219,828 - 4,836,912 41,056,740 43,532,212 Building - Non Factory 2,637,915 128,000 2,765,915 5 % 1,025,843 - 83,529 1,109,372 1,656,543 Building - Labour Colony 6,758,463 6,758,463 10 % 2,807,743 - 395,072 3,202,815 3,555,648

Plant and machinery 576,858,296 21,259,701 598,117,997 10 % 290,076,311 29,912,249 319,988,560 278,129,437 -

Furniture and fixtures 4,863,786 616,320 5,480,106 10 % 2,187,441 286,779 2,474,220 3,005,886

Office equipments 13,988,365 530,130 14,518,495 15 % 6,520,885 1,150,851 7,671,736 6,846,759

Vehicles 6,003,912 3,674,000 9,677,912 20 % 2,424,946 838,260 3,263,206 6,414,706

699,219,033 26,208,151 - 725,427,184 341,262,997 - 37,503,652 378,766,649 346,660,533

4.1.2 Depreciation and amortization for the year has been allocated as under:

2014 2013Rupees Rupees

Cost of Sales 35,144,233 29,154,338 Administrative expenses 2,359,419 1,762,034

37,503,652 30,916,372

4.1.3 Corresponding figures of porperty , plant & equipment were as under;

W.D.V As at Deletion As At As at Deletion For the As at As at

01.07.12 & Adj. 30.06.13 01.07.12 & Adj. Year 30.06.13 30-06-13

Owned Assets

Lease hold Land 3,519,344 - 3,519,344 - - - - - 3,519,344

Building on leasehold land: Building - Factory 80,404,191 4,184,761 84,588,952 10 % 31,306,482 - 4,913,346 36,219,828 48,369,124 Building - Non Factory 2,637,915 2,637,915 5 % 940,997 - 84,846 1,025,843 1,612,072 Building - Labor Colony 6,758,463 6,758,463 10 % 2,146,552 - 661,191 2,807,743 3,950,720

Plant and machinery 482,897,719 93,960,577 576,858,296 10 % 266,496,510 23,579,801 290,076,311 286,781,985 -

Furniture and fixtures 4,840,786 23,000 4,863,786 10 % 1,892,347 295,094 2,187,441 2,676,345

Office equipments 8,868,912 5,119,453 13,988,365 15 % 5,755,572 765,313 6,520,885 7,467,480

Vehicles 4,130,612 1,873,300 6,003,912 20 % 1,808,165 616,781 2,424,946 3,578,966

594,057,942 105,161,091 - 699,219,033 310,346,625 - 30,916,372 341,262,997 357,956,036

4.2.1 INTANGIBLE ASSETS

Computer Software 426,500 - - 426,500 33 % 402,022 - 6,964 408,986 17,514 426,500 - - 426,500 402,022 - 6,964 408,986 17,514

4.2.2 Corrosponding figures of intangible assets were as under;

Computer Software 426,500 - - 426,500 33 % 389,965 - 12,057 402,022 24,478 426,500 - - 426,500 389,965 - 12,057 402,022 24,478

2014

2013

Total - 2013

Total - 2014

PARTICULARS COST

Rate % DEPRECIATION

Additions

Total - 2013

2014

2013

PARTICULARS COST

Rate % DEPRECIATION

Additions

Total - 201

18

tar Textile Mills Limited_________________________________


5 DEFERRED TAXATION

Tax credit arises due to accelerated depreciation (69,347,579) (74,697,359) Tax debit arises due to gratuity 1,403,435 1,777,843 Tax debit arises due to tax losses 72,381,745 91,669,712

4,437,601 18,750,196 6 STORES AND SPARE PARTS

Stores 4,085,419 4,730,558 Spare parts 6,871,816 6,042,824

10,957,235 10,773,382

7 STOCK-IN-TRADE

Raw materials 37,492,223 72,277,430 Work-in-process 5,262,544 7,783,718 Finished goods 166,156,966 80,757,873

208,911,733 160,819,021

8 TRADE RECEIVABLES - Unsecured

Considered good - Related parties 185,645 185,645 - Others 30,054,631 52,020,096

30,240,276 52,205,741

19



9 LOANS & ADVANCES

9.1 LOANS- Considered Good

To employees 9.1 .1 2,557,235 2,603,783

9.2 ADVANCES- Considered Good

Advances to suppliers and service providers 5,144,191 8,251,299 Advances against expenses 9.2 .1 30,605,698 30,680,791 Lc margin 13,218 455,784 Advance income tax 35,978,590 33,757,614

71,741,697 73,145,488 74,298,932 75,749,271

9.1.1

9.2.1 These include advances to related party amounting to Rs.3,550,000/= (2013:Rs.3,550,000/=)

10

Prepayments 255,133 216,491 Accrued interest 146,797 1,513,690 Sales tax refundable 10,992,171 12,220,438 Other receivables 1,145,755 -

12,539,856 13,950,619

11 CASH AND BANK BALANCES

Cash in hand 263,467 195,555 Balance with banks - in saving deposit accounts 12,095,070 12,095,070 - in current accounts 2,529,750 16,403,189

14,624,820 28,498,259 14,888,287 28,693,814

These loans are interest free and secured against retirement benefits.

PREPAYMENTS, ACCRUED INTEREST & OTHER RECEIVABLE

20

tar Textile Mills Limited_______________________________________________________


12 SHARE CAPITAL

12.1 AUTHORISED SHARE CAPITAL 60,000,000 60,000,000

12.2 ISSUED, SUBSCRIBED AND PAID-UP CAPITAL

2014 2013

2,244,949 2,244,949 Ordinary shares of Rs.10 each fully paid in cash 22,449,490 22,449,490

3,207,869 3,207,869 Ordinary shares of Rs.10 each issued as fully paid bonus shares 32,078,690 32,078,690

5,452,818 5,452,818 54,528,180 54,528,180

12.2.1

13

(66,243,884) (102,273,829) 26,170,993 36,029,945 (40,072,891) (66,243,884)

13.1 It represents accumulated loss carried forwarded.

14 LONG TERM LOAN-UNDER MARK UP ARRANGEMENTS 227,125,000 223,963,312

14.1

15 LONG TERM LOAN-INTEREST FREE 246,049,854 300,531,721

15.1

15.2

Balance at the end of the year

It represents interest free loan from directors (related party) and is unsecured in nature. The terms of repayment are yet to befinalized.

Out of above loan, an amount of Rs.77,300,000/= has been subordinated to the financing provided by Habib MetropolitanBank Limimted to the company.

This represents 6,000,000 (2013: 6,000,000) ordinary shares of Rs.10 each .

M/s Matell Limited (the holding Company) incorporated in British Virgin Island holds 4,313,446 (2013: 4,313,446) ordinary shares of Rs.10 each of the company .

ACCUMULATED LOSS

During the year ended 30th June 2007 the company availed a foreign currency loan from its holding company (related party)

on soft terms. It was repayable in 12 months from the date of receipt, however, due to annual roll over, it is payable up to Nov

2014. It carries mark-up not exceeding LIBOR plus 1% and is unsecured in nature.It includes effects of year end revaluation

of balance payable in foreign currency.

Income for the year Balance at the beginning of the year

21



16 DEFERRED LIABILITY-GRATUITY5,079,550 3,646,352

Paid during the year (1,393,800) (750,700) 3,685,750 2,895,652

Provision made during the year 442,000 2,183,898 4,127,750 5,079,550

17 17.1 60,062,400 37,984,634

17.1

18 TRADE & OTHER PAYABLES

Creditors 78,952,025 90,395,508 Accrued liabilities 18.1 46,916,302 50,194,084 Accrued mark-up on borrowing 13,073,132 8,288,988 Other liabilities 18.2 449,477 449,477

139,390,936 149,328,057

18.1

18.2 OTHER LIABILITIES

Unclaimed dividend 442,452 442,452 Right / bonus share fraction 7,025 7,025

449,477 449,477

19 CONTINGENCIES AND COMMITMENTS19.1 CONTINGENCIES:

19.1.1

Balance at the beginning of the year

Balance at the end of the year

The company had filed a claim for refund of custom duty amounting to Rs. 2,164,651 with the Customs AppellateTribunal in terms of SRO 1076(I)/95 in the year 1995. In the opinion of the company's legal advisor, it is expected thatthe case will be decided in favor of the company. Pending the outcome of the case, entire amount has been charged in therespective years as a matter of abundant precaution.

The above mentioned arrangements are secured against charge by way of registered hypothecation of stocks in trade, stores & spares, book debts, bank guarantee, demand promissory note, term deposit receipt, mortgage of property, plant &machinery and personal guarantees of directors.

The company has received a demand from Sindh Employees Social Security Institution (SESSI) for recovery of socialsecurity contribution amounting to Rs. 3,677,005 towards their claim for short payment made by the contractors during1983-88. The company filed an appeal in the First Social Security Court at Karachi, which uphold the demand of SESSI.An appeal has been filed by the company in the Honorable High Court of Sindh against the judgment of the First SocialSecurity Court. Pending the outcome of the case, the company, as an abundant precaution, has made provision in thefinancial statements which is included in the above account.

SHORT TERM FINANCE UNDER MARK-UP ARRANGEMENTS-(Secured)

The facilities for running finance, cash finance, & LC/LG finance availed from the banks amounted to Rs.60,062 million

(2013: Rs.37,985 million). The running finance, cash finance & term finance carry mark-up based on KIBOR plus 2%-3%

chargeable and payable quarterly. These arrangements are for a period of one year and are renewable on expiry .

The company also availed the facility for opening letter of credit and issuing letter of guarantee amounting to Rs. 60million (2013: Rs.60 m) and Rs.11.57 m (2013: Rs.11.57 m) respectively. Further a local bill discounting facility for Rs.85 m (2013: 85 m) is also availed during the year.

22

tar Textile Mills Limited________________________________________________


19.1.2

19.1.3

19.1.4

19.2 COMMITMENTS:

19.2.1 Commitments in respect of capital expenditure Nil Nil

19.2.2 Guarantees extended by commercial banks 11,570,000 11,570,000

20 SALES

Local sales 975,466,481 1,084,464,776 Exports sales 20.1 128,912,895 356,894,290 Less: Commission, brokerage and discounts (16,045,173) (19,130,770)

Net Sales 1,088,334,203 1,422,228,296

20.1 It also includes exports.

The sales tax department and a chartered accountants' firm on behalf of department audited the records of the company for the year1996-97 & 1997-98. As a result the department has forwarded various demands of sales tax amounting to Rs.3,290,457 andadditional tax and penalty of Rs.8,749,076. The Company contested against these demands and no provision has been made forthese in financial statements. Subsequently, in order to avoid any negative consequence, a sum of Rs.2,442,238 being Sales Taxand Rs.2,231,695 being 25% of additional tax and penalty as demanded by them has been deposited, under amnesty schemeannounced by the Government. Out of this, an amount of Rs. 1,677,478/- was refunded by the sales tax department. The balance isshown as advance sales tax pending decisions of appeals.

In the year 1977, company contracted to purchase Afghan Cotton for US $ 111,592.20 which was not lifted due to non-receipt ofrequired permission from State Bank of Pakistan (SBP). The exporter demanded claim and went for arbitration, which was decidedagainst the company. Accordingly, an amount of Rs. 1,265,877 converted at the then ruling rate of US $ was provided in thefinancial statements. In 1984, the company filed an appeal in the Honorable High Court of Sindh against the decision of theArbitrator. The company feels that no adverse outcome is expected for this extremely very old pending case; therefore, theprovision made earlier was reversed in the year 2000.

The liability was accrued in the past amounting to Rs. 467,963 for payment of royalty to supplier of machinery for use of

Sanforising trademark. Subsequently, SBP disallowed the remittance of royalty due to lack of justification by the licensee. The

management feels that no claim is likely to be received from the licensee, hence the provision has been reversed in the year 2000.

23 tar Textile Mills Limited_________________________________


21 COST OF SALESRaw materials consumed Cotton and fibers (opening stock) 72,277,430 46,811,501 Cotton and fibers purchases 645,496,226 926,727,795 Yarn and cloth purchases 91,910,161 83,174,020

809,683,817 1,056,713,316 Cotton and fibers (closing stock) (37,492,223) (72,277,430)

772,191,594 984,435,886 Manufacturing Expenses Salaries, wages and allowances 108,833,896 122,865,714 Staff benefits 21.1 11,402,844 11,299,749 Fuel, power and water 108,202,922 132,835,797 Dyes and chemicals consumed 452,928 653,039 Stores and spares consumed 21,593,161 31,699,768 Packing material consumed 12,305,233 15,735,210 Insurance 2,326,500 1,570,869 Repairs and maintenance 11,807,459 4,595,346 Rent, rates and taxes 2,128,026 2,118,661 Outside processing charges 1,479,193 99,000 Mills general expenses 6,719,695 5,783,175 Depreciation 35,144,233 29,154,338

322,396,090 358,410,666 1,094,587,684 1,342,846,552

Work-in-process - opening 7,783,718 4,934,043 - closing (5,262,544) (7,783,718)

2,521,174 (2,849,675) Cost of goods manufactured 1,097,108,858 1,339,996,877 Finished goods - opening 80,757,873 26,027,684

- closing (166,156,966) (80,757,873) (85,399,093) (54,730,189)

Cost of sales 1,011,709,765 1,285,266,688

22 ADMINISTRATIVE & GENERAL EXPENSESDirectors' remuneration 22.1 15,841,709 9,684,306 Salaries, allowances and other benefits 4,370,171 4,033,858 Postage, telegram and telephone 770,699 912,206 Printing and stationery 337,598 704,717 Repair and maintenance 651,920 606,354 Vehicles expenses 1,193,239 1,030,028 Fees and subscription 306,647 190,767 Legal and professional charges 68,336 320,000 Auditors' remuneration 22.2 135,000 135,000 Miscellaneous Expenses 1,383,118 1,042,535 Amortization of intangible asset 6,964 12,057 Depreciation 2,359,419 1,762,034

27,424,820 20,433,862

24

tar Textile Mills Limited____________________________________


22.1 Detail of directors' remuneration is as under;

No of director 7 7

Managerial Remuneration 15,841,709 9,684,306

22.1.1 One of the full time working director is also provided with company maintained car.

22.2 AUDITORS' REMUNERATION

Audit fee 125,000 125,000 Out of pocket expenses 10,000 10,000

135,000 135,000

23 SELLING & DISTRIBUTION EXPENSES

Salaries and other benefits 1,953,823 1,660,994 Traveling, conveyance and entertainment 6,951 500 Advertisement 21,518 263,427 Local L/C Charges 733,687 307,590 Export expenses 3,220,438 12,682,444 Stationery 10,800 14,833 Repair & maintenance 118,169 -

6,065,386 14,929,788

24 OTHER INCOME

Gain on disposal of property, plant & equipment -Interest income 1,118,994 957,179 Rental Income 15,625,372 12,247,810 Miscellaneous receipts 36,010 90,553 Gain on revaluation of foreign currency liabilities 6,807,847 735,784

23,588,223 14,031,326

25 FINANCIAL CHARGES

Mark-up on short term finance 8,174,556 4,303,161 on long term loan provided by related party 2,372,353 3,986,598 Bank charges 795,934 791,889

11,342,843 9,081,648

25

tar Textile Mills Limited___________________________________________________


26 OTHER CHARGES

Provision for WWF 1,103,660 2,532,297 Provision for WPPF 2,673,140 5,261,791 Loss on revaluation of foreign currency liabilities - 9,312,408 Commission on rented godown - 495,250

3,776,800 17,601,746

27 TAXATION Current (11,119,224) (9,420,223) Deferred (14,312,595) (43,495,722)

(25,431,819) (52,915,945)

28 EARNING PER SHARE

28.1 BASIC EARNING PER SHARE

Income for the year 26,170,993 36,029,945 Number of ordinary shares in issue 5,452,818 5,452,818 Basic earning per share (Rupees) 4.80 6.61

28.2 DILUTED EARNING PER SHAREThere is no dilution effect on the basic earning per share as the company has no commitments in respect of Share capital.

29 TRANSACTIONS WITH RELATED PARTIES

Following is the summary of transactions carried out with related parties during the year.

Loan from holding company- exchange fluctuation 6,807,847 (9,312,408) Interest charged by the holding co. 2,372,353 3,986,598 Directors' remuneration 15,841,709 9,684,306 Loan from directors - Net receipts 70,556,000 135,652,000

30 NUMBER OF EMPLOYEES

Number of employees at balance sheet date 121 155

The related parties comprise subsidiaries, holding & associated undertakings, other related group companies, directorsof the company, key management personnel and post employment benefit plans. The company in the normal course ofbusiness carries out transactions with related parties, however, all such transactions, except loan acquired from relatedparties on soft terms, have been carried on commercial terms and conditions.

26

tar Textile Mills Limited____________________________________________________________________________

31 FINANCIAL INSTRUMENTS & RELATED DISCLOSURES

Total -2014Maturity Maturity sub total Maturity Maturity sub total

upto after upto after one year one year one year one year

Financial AssetsLong term deposits - - - - 4,596,050 4,596,050 4,596,050 Trade debts - - - 30,240,276 - 30,240,276 30,240,276 Loans & advances - - - 74,298,932 - 74,298,932 74,298,932 Prepayments, accrued interest & other receivables - - - 12,539,856 - 12,539,856 12,539,856 Cash & bank balances 12,095,070 12,095,070 2,793,217 - 2,793,217 14,888,287

12,095,070 - 12,095,070 119,872,281 4,596,050 124,468,331 136,563,401 Financial LiabilitiesLong term loans - 227,125,000 227,125,000 246,049,854 246,049,854 473,174,854 Long term deposits - - - 3,507,300 3,507,300 3,507,300 Short term finance under mark up arrangements 60,062,400 - 60,062,400 - - - 60,062,400 Creditors , accrued & other liabilities - - - 139,390,936 - 139,390,936 139,390,936

60,062,400 227,125,000 287,187,400 139,390,936 249,557,154 388,948,090 676,135,490

Corresponding figures were as under:

Total -2013Maturity Maturity sub total Maturity Maturity sub total

upto after upto after one year one year one year one year

Financial AssetsLong term deposits - - - 2,585,800 2,585,800 2,585,800 Trade debts - - - 52,205,741 - 52,205,741 52,205,741 Loans & advances - - - 75,749,271 - 75,749,271 75,749,271 Prepayments, accrued interest & other receivables - - - 13,950,619 - 13,950,619 13,950,619 Cash & bank balances 12,095,070 12,095,070 16,598,744 - 16,598,744 28,693,814

12,095,070 - 12,095,070 158,504,375 2,585,800 161,090,175 173,185,245 Financial LiabilitiesLong term loans - 223,963,312 223,963,312 - 300,531,721 300,531,721 524,495,033 Long term deposits - - - - 3,507,300 3,507,300 3,507,300 Short term finance under mark up arrangements 37,984,634 - 37,984,634 - - - 37,984,634 Creditors , accrued & other liabilities - - - 149,328,057 - 149,328,057 149,328,057

37,984,634 223,963,312 261,947,946 149,328,057 304,039,021 453,367,078 715,315,024

2014Interest Bearing Non Interest Bearing

Rupees

2013Interest Bearing Non Interest Bearing

Rupees

27

tar Textile Mills Limited_________________________________________________

32 FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

32.1 INTEREST RATE RISK MANAGEMENT:

32.2 FOREIGN EXCHANGE RISK MANAGEMENT

32.3 CONCENTRATION OF CREDIT RISK

32.4 FAIR VALUE OF FINANCIAL INSTRUMENTS

32.4.1 Long term deposits

32.4.2 Non-current liabilities

32.4.3 Other financial instruments

32.4.4 PRICE RISK

The company is not exposed to any price risk as sales and purchases are made on the basis of validsale/purchase agreements.

These do not carry any rate of return. The fair value of these have been taken at book values as these arenot considered materially different.

For all non-current liabilities, the fair value have been taken at book values as these are not consideredmaterially different based on the current market rates of return.

The fair value of all other financial instruments are considered to approximate their book values as theyare short term in nature.

Underlying the definition of fair value is the presumption that the company is a going concern withoutany intention or requirement to curtail materially the scale of its operations or to undertake a transactionon adverse terms.

The company considers that it is not exposed to any major credit risk. However, the company is exposedto credit related losses in the event of non-performance by counter parties to financial instruments but itdoes not expect that any counter party would fail to meet its obligation.

Fair value is the amount for which an asset could be exchanged, or a liability settled, betweenknowledgeable willing parties in an arm's length transaction.

As at June 30, 2014, the net fair value of all financial instruments has been based on the valuationmethodology outlined below:

The company finances its operations by a mix of share capital, long and short term finances and loan; while itborrows funds usually at floating rates of interest/mark-up.

In view of thin commercial borrowing at the year end, the company is not exposed to have any effects ofadverse change in interest rate.

Foreign currency risk arises where receivables and payables exist due to sales, purchase and

financing transaction with foreign undertakings. Company's payables include long term loan, which is

exposed to adverse fluctuations, whereas receivables have limited risk of adverse fluctuations.

28


32.4.5 LIQUIDITY RISK

32.5 INTEREST RATE DISCLOSURE

33 DATE OF AUTHORIZATION FOR ISSUE

34 CORRESPONDING FIGURES

___________ __________________CHIEF EXECUTIVE

Karachi :Dated: October 4 , 2014

The company is not exposed to any liquidity risk as all the assets of the company can be converted intoliquid assets.

Corresponding figures have been rearranged wherever necessary however, no major rearrangements have been made.

DIRECTOR

Effective interest/mark-up rates for the monetary financial assets and liabilities are mentioned in therespective notes to these financial statements..

These financial statements have been authorized for issue by the Board of directors of the Company in its meeting held on October 4, 2014.

29

tar Textile Mills Limited______________________________

Number of Share Holders From

Share HoldingsTo

Total Shares Held Percentage

328 1 - 100 6,324 0.1160 245 101 - 500 40,673 0.7459 16 501 - 1000 12,007 0.2202 5 1001 - 5000 9,507 0.1744 3 5001 - 15000 40,000 0.7336 4 15001 - 20000 65,200 1.1957 4 20001 - 25000 89,545 1.6422 2 25001 - 30000 53,222 0.9760 1 30001 - 35000 31,706 0.5815 1 40001 - 45000 44,527 0.8166 2 50001 - 55000 101,654 1.8642 1 65001 - 70000 65,308 1.1977 1 80001 - 85000 84,689 1.5531 1 100001 - 105000 101,195 1.8558 1 105001 - 110000 106,109 1.9459 1 110001 - 160000 122,203 2.2411 1 160001 - 170001 165,503 3.0352 1 4310001 - 4315000 4,313,446 79.1049

618 5,452,818 100.00

AS AT JUNE 30, 2014

PATTERN OF SHARE HOLDINGFORM " 34 "

SHAREHOLDERS STATISTICS

30 tar Textile Mills Limited______________________________________________

NUMBER OF SHARE HELD BY THE

Particulars Shareholders Shareholding Percentagea) DIRECTORS

1 Mr. Ismail Mohamed 1 165503 3.0352 2 Mr. Ilyas Mohamed 1 106109 1.9459 3 Mr. Ashraf Mohamed 1 101195 1.8558 4 Mr. Nasrullah Rahmat 1 122203 2.2411 5 Mr. Izatullah Rahmat 1 65308 1.1977 6 Mr. Lutfullah Rahmat 1 84689 1.5531 7 Mr. Mohammed Hanif 1 14800 0.2714

Director's Spouse

8 Mrs. Halima Mohamed w/o. Ismail Mohamed 1 51112 0.9374 9 Mrs. Naseema Ilyas w/o. Ilyas Mohamed 1 44527 0.8166

Director's Family Members / Relatives

10 Mr. Tariq Mohamed s/o. Ilyas Mohamed 1 50542 0.9269 11 Mr. Asadullah Rahmat s/o. Nasrullah Rahmat 1 21670 0.3974 12 Mr. Ahmedullah Izatullah s/o. Izatullah Rahmat 1 22396 0.4107 13 Mr. Mahmoodullah Izatullah s/o. Izatullah Rahmat 1 22508 0.4128 14 Mr. Bilal Rahmat s/o. Lutfullah Rahmat 1 26796 0.4914 15 Haji Abdul Karim 1 18550 0.3402 16 Haji Abdul Razzaq 1 15350 0.2815 17 Mr. Muhammad Yousuf 1 14800 0.2714 18 Mr. Abdul Qadir 1 10400 0.1907 19 Mr. Abdul Mustafa 1 16500 0.3026 20 Mr. Mohammad Farooq 1 15900 0.2916 21 Haji Abdul Latif 1 15400 0.2824 22 Miss. Kulsum d/o. Lutfullah Rahmat 1 26426 0.4846 23 Miss. Fatima Zohara d/o. Izatullah Rahmat 1 22971 0.4213

Associated Company

24 M/s. Matell Limited 1 4313446 79.1049

b) Investment Companies NIT/ICP

National Bank of Pakistan 1 300 0.0055 (Trust Department, Head Office)

Investment Corporation of Pakistan 1 259 0.0047

Joint Stock Companies 3 350 0.0064 Financial Institution 1 1844 0.0338 Corporate Law Authority 1 1 0.0000

Lahore Commercial Bank 1 119 0.0022 A/c H.M. Investment

c) General Public 586 80844 1.4826

Total 618 5,452,818 100.000

AS AT JUNE 30, 2014

SPONSORS/DIRECTORS/ASSOCIATED COMPANIES,RELATIVES AND THEIR PERCENTAGE

Documents

tar Textile Mills Limited t tar Textile Mills Limited_____ BOARD OF DIRECTORS Mr. Ismail Mohamed Chairman Mr. Ilyas Mohamed Chief Executive Mr. Nasrullah Rahmat Director Mr. Izatullah