ASIM TEXTILE MILLS LIMITED COMPANY INFORMATION

BOARD OF DIRECTORS: CHIEF EXECUTIVE: MR. ZAHID ANWAR DIRECTORS: MRS. RUKHSANA BEGUM MR. IMRAN ZAHID MS. QURATUL AIN ZAHID

CH. GHULAM MURTAZA BUTTAR MR. UMER FAROOQ

MR. ALI RAZA ZAFAR AUDIT COMMITTEE: CHAIRMAN: CH. GHULAM MURTAZA BUTTAR MEMBER: MR. UMER FAROOQ MEMBER: MS. QURATUL AIN ZAHID HUMAN RESOURCES & REMUNERATION COMMITTEE: CHAIRMAN: MR. UMER FAROOQ MEMBER: MR. ALI RAZA ZAFAR MEMBER: CH. GHULAM MURTAZA BUTTAR COMPANY SECRETARY: MR. ALLAH DITTAH CHIEF FINANCIAL OFFICER: MR. ABRAR MOHSIN HEAD OF INTERNAL AUDIT: MR. NASEEM ABBAS AUDITORS: ARSHAD RAHEEM & COMPANY

CHARTERED ACCOUNTANTS BANKS: AL BARAKA BANK (PAKISTAN) LIMITED JS BANK LIMITED NATIONAL BANK OF PAKISTAN UNITED BANK LIMITED DUBAI ISLAMIC BANK

HABIB BANK LIMITED LEGAL ADVISOR: MR. ZIA-UL-HAQ (ADVOCATE) REGISTERED OFFICE: JK HOUSE, 32-W, SUSAN ROAD,

MADINA TOWN, FAISALABAD SHARE REGISTRAR OFFICE: HAMEED MAJEED ASSOCIATES (PVT) LTD.

1ST FLOOR, H.M HOUSE, 7-BANK SQUARE LAHORE

MILLS: 32-KM, SHEIKHUPURA RAOD, FAISALABAD WEB SITE: www.asimtextile.com

ASIM TEXTILE MILLS LIMITED

DIRECTORS’ REPORT TO THE MEMBERS Your directors are pleased to present 2nd quarter and half yearly accounts for the period ended December 31, 2015. The Company has earned net loss of Rs.7.729 million as compared to net loss of Rs. 6.700 million of corresponding period of last year. The decrease in prices of yarn has resulted in loss during the current period as compared to the corresponding period of last year. Earning per share (EPS) for the 2nd quarter is Rs. (0.42) and Rs. (0.51) for half year as compared to (EPS) of Rs. (0.53) for 2nd quarter and Rs. (0.44) for half year in the corresponding period of last year. There has been no change in the position of on going court cases with the bank, as reported in the director’s report of the financial statements for the year ended 30.06.2015. The auditors have expressed adverse opinion in their audit report about the Company’s ability to continue as a going concern due the net loss of Rs. 7.729 million and accumulated loss of Rs. 301.184 million against the paid up share capital of Rs. 151.77 million and the provision for cost of fund has not been accounted for in the Financial Statements in line with the decision of Lahore High Court, Lahore in counter suit filed by Faisal bank Limited as described in paragraphs (A) & (B) of the auditors’ report to the members. In this regard the management of the company is optimistic that there are no significant doubts about the company’s ability to continue as a going concern as described in Note. 1.2 Of these Financial Statements. The management has filed an appeal in the Lahore High Court, Lahore (D.B) vide R.F.A. No. 1372/2015 on various grounds including the company being condemned unheard. The management of the company is of the opinion that this case is based and being contested on strong legal grounds and is likely to be decided in Company's favor. Therefore, no provision for cost of funds is accrued. Although the overall industry’s environment was adversely suffered due to continues energy crises, our domestic market has been captured by India and China by supplying comparatively low rate yarn as compared to our own manufactured yarn of spinning units. Despite of all these unfavorable factors and circumstances the management tried their level best to run the business, justifies the going concern assumption. Transactions with related parties are carried out at arms length. The prices are determined in accordance with comparable uncontrolled price method. The management would like to place on record its appreciation for the continuous support of its shareholders, customers and employees and expect to receive same cooperation in future.

for and on behalf of the Board

FAISALABAD. ZAHID ANWAR 27.02.2016 CHIEF EXECUTIVE