Nishat Mill

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Contents

Company Information

Notice of Annu al Gen era l Mee ting

Direc tors Repo rt

Financial Highlights

Stateme nt of Comp lianc e with the Code of Corporate Go vernance

Review Report to the Members on Statement of Compliance with Best

Practice s of Code of Corporate Governan ce

Nish at (Chun ian ) Limited - Fina ncial Statem en ts

Auditors Report

Balance Sheet

Profit and Loss Account

Stateme nt of Comprehe nsive Income

Cash Flow Statement

Stateme nt of Changes in Equity

Notes to the Financial Stateme nts

Pattern of Shareholding

Conso lida ted Financial Statements

Directors Rep ort

Auditors Report

Balance Sheet

Profit and Loss Account

Stateme nt of Comprehe nsive Income

Cash Flow Statement

Stateme nt of Changes in Equity

Notes to the Co nsolida ted Financ ial Statements

Proxy Form

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20-21

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24-25

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Nishat (Chunian) LimitedJUNE 2013 3


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Company Information

Mr. Sha hzad Sa lee m Chief Exec utive/ChairmanMs. Farhat Sa lee mMr. Yahya SaleemMr. Manzoor Ahmed Nominee NITMr. Aftab Ahmad KhanMr. Mushtaq Ahmad (Resigned on July 16, 2013)Mr. Manzar Mushtaq (Resigned on July 16, 2013)

Mr. Aftab Ahmad Khan ChairmanMr. Shahzad Saleem MemberMr. Manzar Mushtaq (Resigned on July 16, 2013) Member

Mr. Mushtaq Ahmad (Resigned on July 16, 2013) ChairmanMr. Shahzad Saleem MemberMr. Manzar Mushtaq (Resigned on July 16, 2013) Member

Mr. Umar Shahzad

Mr. Saqib Riaz

Allied Bank LimitedAskari Bank LimitedAl Barka Bank (Pakistan) LimitedBank Alfalah LimitedBarclays Bank plc, PakistanBank Islami Pakistan LimitedBurj Bank LimitedCitibank N.A.Dubai Islamic Bank Pakistan LimitedFaysal Bank LimitedHabib Bank LimitedHSBC Bank Middle East LimitedHabib Metropolitan Bank LimitedJS Bank LimitedKASB Bank LimitedMeeza n Bank LimitedNationa l Bank of PakistanNIB Bank LimitedPak Brunei Inves tment Co mpany LimitedPak Kuwait Investment Company (Private) LimitedStandard Chartered Bank Pakistan LimitedSaudi Pak Indus trial and Agriculture Inves tment Comp any LimitedSAMBA Bank LimitedSoneri Bank LimitedThe Bank of PunjabUnited Bank Limited

Riaz Ahmad & CompanyChartered Acco untants

31-Q, Gulberg-II,Lahore, Pakistan.Phone : 35761730-39Fax : 35878696-97Web : www.nis ha t.ne t

Hameed Majeed Associates (Pvt) Limited1st Floor, H.M. House7-Bank Square, Lahore

Ph: 042 37235081-2Fax: 042 37358817

Spinning 1, 4 & 549th Kilome tre, Multan Road ,Bhai Phe ru, Tehs il Chunian,District Kas ur.

Dyeing & Printing4th Kilometre, Manga Road,Raiwind.

Board o f Directors :

Audit Com mittee :

HR&R Committee:

Company Secretary:

Head of Internal Audit:

Bankers to the Compan y:

Auditors:

Registe red & Head Office:

Share Re gistrar:

Mills : Spinning 2, 3 & Weaving49th Kilometre, Multan Road,Kam ogal, Tehsil Pa ttoki,District Kasur.

Nishat (Chunian) Limited JUNE 20134


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Notice of Annual General Meeting

Notice is hereb y given that the 24th Annua l General mee ting of the Sha reholders of Nishat (Chunian) Limited will be he ld at the Registered

Office of the Comp any, 31-Q, Gulbe rg II, Laho re on 30th Oc tobe r 2013 (Wed nes da y) at 11.00 a .m. to trans ac t the following b usines s:

ORDINARY BUSINESS :

1. To confirm the minutes of the las t Annual General Meeting held on 30th Octobe r 2012.

2. To receive and ad opt audited a ccounts of the Compa ny for the year ended 30 J une 2013 together with Directors' and Auditors'

reports thereon.

3. To ap prove final cas h dividend @20% (i.e.Rs. 2.00 per share) and 10% bonus shares (i.e. 1 bonus s hare aga inst 10 existing s hares

as recommende d by the Board of Directors.

4. To a ppo int auditors for the year ending 30 June 2014 and to fix their remuneration. The p resent Auditors M/s Riaz Ahmad & Compa ny

Chartered Acco untants, retire a nd be ing eligible offer thems elves for reap pointment.

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

By Order of the Board

Umar Shahzad

Lahore: 09 October 2013 Company Secretary

Notes:

1. The Memb ers' Register will remain close d from 22-10-2013 to 29-10-2013 (both da ys inclusive). Transfers rece ived at Hameed

Majeed Ass ociate (Pvt) Limited, H.M. House , 7-Bank Squa re, Laho re, the Reg istrar and share trans fer office of the Comp any by

the close of business on 21-10-2013 will be considered in time for attending the AGM and for above entitlements

2. A member eligible to attend and vote at this me eting ma y appoint another member as proxy to attend and vote in the meeting

Proxies in orde r to be e ffec tive mus t be rec eived by the company at the Reg istered Office not later than 48 hours b efore the timefor holding the mee ting.

3. Shareholders are requested to immediately notify the change in add ress , if any.

4. CDC ac count holders will further have to follow the following guide lines as laid down by the Se curities and Excha nge Co mmission

of Pakistan:

a . For a ttending the meeting

i) In case of individuals, the account holder or sub-account holder and/or the person whose securities are in group

account and their registration details are uploaded as per the Regulations, shall authenticate his/her identity by showing

his original Computerized National Identity Card (CNIC) or original passport at the time of attending the meeting

ii) In cas e of corporate entity, the Board of Directors' res olution/power of attorney with spec imen s ignatures of the nominee

sha ll be produced (unles s it has b ee n provide d e arlier) at the time o f the Meeting

b. For Appointing Proxies

i) In case of individuals, the account holder or sub-account holder and/or the person whose securities are in group

acc ount and their reg istration d etails are up load ed as per the Regulations , sha ll submit the proxy form as pe r the

above requirement.

ii) The proxy form shall be witness ed by two persons whose names, address es a nd CNIC numbers sha ll be mentioned

on the form.

iii) Attes ted cop ies of CNIC or the pa ss port of the bene ficial owners and the proxy shall be furnished with the p roxy form

iv) The p roxy sha l l p roduc e h is o r ig ina l CNIC or o rig i na l pa s sp or t a t t he t ime o f t he Me e t ing

v) In ca se of corporate entity, the Board of Directors' reso lution/power of attorney with spec imen s ignatures shall be

sub mitted (unles s it has be en provide d e arlier) along with proxy form to the c omp any.



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This statement is being presented to comply with the Code of Corporate Governance contained in Regulation No.35 of listing regulationsof Karachi Stock Exchange Ltd and Lahore Stock Exchange Ltd for the purpose of establishing a framework of good governance, wherebya listed company is managed in compliance with the best practices of corporate governance.

The c omp any ha s ap plied the p rinciples conta ined in the COCG in the following manner:

1. The comp any encourages representation of indep ende nt non-executive directors and d irectors represe nting minority interes ts onits board of directors. At prese nt the boa rd includes :

Cate gory Name s

Ind epend ent Dire ctors Mr. Ma nzoor Ahmed

Exec utive Directors Mr. Sha hzad Sa lee mMr. YahyaSa leemMrs. Fa rhatSaleem

Non Exec utive Directors Mr. Manza r Mus htaq (Resigne d on Ju ly 16, 2013 and Mr. Sha hid A.Malik has b ee n ap po inted in his p lac e)

Mr. Aftab Ahmad KhanMr. Mushtaq Ahmed (Res igne d on July 16, 2013 and Mr. Kamran Rasoolhas bee n ap pointed in his p lace )

The requirement of Exec utive Directors in co mpos ition o f Boa rd unde r COCG 2012will be fulfilled at the time of next election ofdirectors.

The indep end ent direc tor meets the c riteria of inde pe nde nce as required unde r claus e i (b) of the CCG.

2. The directors have confirmed that none of them is s erving as a director on more than s even listed c ompa nies , including thiscompa ny (excluding the listed sub sidiaries of listed holding c omp anies where a pp lica ble).

3. All the res ident directors of the comp any are registered a s taxpayers a nd none of them has defaulted in payment of any loan to abanking company, a DFI or an NBFI or, being a member of a stock exchange, has been declared as a defaulter by that stockexchange.

4. There was no casual vacancy on the board during the year ended June 30, 2013.

5. The company has prepared a "Code of Conduct" and has ensured that appropriate steps have been taken to diss eminate itthroughout the company along with its supporting policies and procedures.

6. The Board has d evelope d a vision/miss ion statement, overall corporate strategy and s ignificant policies o f the compa ny. A comp leterecord o f pa rticulars of significan t policies a long with the da tes on which they were ap proved o r amende d ha s b ee n ma intained .

7. All the powers o f the Board ha ve been duly exercised and decisions on material transactions, including ap pointment and determinationof remuneration a nd terms and cond itions of employment of the CEO, other execu tive and non-executive d irectors, ha ve be entaken by the boa rd/shareholders.

8. The mee tings o f the Board were presided over by the Chairman and, in his ab senc e, by a director elected by the board for thispurpo se and the board me t at lea st onc e in every quarter. Written no tices of the b oard mee tings , along with age nda and workingpapers, were circulated at least seven days before the meetings. The minutes of the meetings were appropriately recorded andcirculated.

9. The boa rd has ap proved a ppointment of Company Secretary including the remuneration and terms and conditions of employment

during the year end ed 30 June 2013. The CFO ha d res igned at the end of May 2013 and the Board intends to app oint GeneralMana ge r Financ e & Accounts a s CFO for which the Compa ny has initiated the p roces s of app lying to SECP to relax the e xpe riencerequireme nt as required in clause (xiii) of the Code. No ne w app ointment of Head of Internal Audit has be en mad e b y the Boardduring the year ende d 30 J une 2013.

10. The d irectors' repo rt for this year has bee n prepa red in comp liance with the requirements of the COCG 2012 a nd fully des cribesthe salient matters required to be disclosed.

11. The Board c ons ide rs that some of its directors a re exempt from Directors' training p rogram ('DTP') requireme ntand there is no nee dfor enrollment in DTP until the e xemption pe riod las ts.

12. The financial statements o f the com pany were d uly endorsed by CEO and General Manag er Finance & Accounts b efore app rovalof the Boa rd.

Stateme nt of Compliancewith the Code o f Corporate Governance for the year end ed 30 June 2013



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The Company has fully complied with the best practices on Transfer Pricing as contained in the related Listing Regulations ofthe Karachi and Lahore Stock Excha nge s.

Shahzad Saleem

Chief Exec utive / Chairman

Lahore: 04 October 2013

Stateme nt of Compliance

with the Bes t Prac tice s on Trans fer Pricing

Stateme nt of Compliance


13. The d irectors, CEO and executives do not hold a ny interes t in the sha res of the co mpa ny other than that disclose d in the p atternof shareho lding.

14. The c ompa ny has complied with all the co rporate a nd financial reporting requirements of the COCG 2012.

15. The Board has formed an Audit Committee. It comprise s o f 3 members, of whom 2 a re non-executive d irectors and the chairmanof the c ommittee is not an indep end ent director and will be cha nge d on next elec tion dateto b ring the composition of aud it committeein line with the requirements of COCG 2012.

16. The me etings of the a udit committee were held at lea st onc e e very qua rter for the review of interim and final res ults prior to theap proval by the Board of Directors. The terms o f reference of the c ommittee have bee n ap proved b y the Boa rd and ad vise d tothe co mmittee for comp lianc e.

17. The Board has formed a Human Resource and Remuneration (HR&R) Committee. It comprise s o f 3 membe rs, of whom 2 are nonexecutive d irectors a nd the c hairman of the committee is a Non Execu tive director.

18. The Board ha s se t up a n effective internal audit function who are c onsidered s uitably qualified and experienced for the purposeand are conversant with the policies and procedures of the company and they are involved in the internal audit function on full timebasis.

19. The s tatutory auditors of the compa ny have confirmed that they have b een given a s atisfactory rating und er the qua lity controlreview prog ram of the ICAP, that they or a ny of the pa rtners of the firm, their sp ous es and minor children do not hold s hares of

the company and that the firm and all its partners are in compliance with International Federation of Accountants (IFAC) guidelineson code of ethics as ad op ted by the ICAP.

20. The s tatutory auditors or the p ersons ass ociated with them have not be en a ppointed to provide other services except in acc ordancewith the listing regulations and the a uditors have confirmed that they have obs erved IFAC guide lines in this rega rd.

21. The 'closed pe riod ', prior to the anno unce ment of interim/final res ults, and bus ines s d ecisions, which ma y materially affect themarket price of company's securities, was determined and intimated to directors, employees and stock exchange(s).

22. Material/price sens itive information ha s bee n disse minated a mong all market participants at once through stock exchange(s).

23. We c onfirm that all other material requirements of the COCG 2012 ha ve bee n comp lied with.

Shahzad SaleemChief Exec utive / Chairman

Lahore: 04 October 2013


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We have reviewed the Statement of Compliance with the best practices contained in the Code of Corporate Governance preparedby the Board of Directors of NISHAT (CHUNIAN) LIMITED ("the Company") for the year ended 30 June 2013, to comply with the

Listing Regulations of the respective Stock Exchanges, where the Company is listed.

The responsibility for compliance with the Code of Corporate Governance is that of the Board of Directors of the Company. Our

resp ons ibility is to review, to the extent where s uch com plianc e c an be ob jec tively verified , whether the s tateme nt of comp lianc e

reflects the s tatus of the Comp any's com plianc e with the provisions of the Co de of Corporate Governance and report if it doe s n ot.

A review is limited primarily to inqu iries of the Comp any p erso nnel and review of various doc umen ts p repa red by the C omp any to

comply with the Code.

As p art of our aud it of financial sta teme nts, we are req uired to ob tain an unde rstand ing o f the ac counting a nd internal con trol systems

sufficient to plan the a udit and de velop an effective aud it app roach. We a re not required to cons ide r whether the Board's s tatement

on internal control covers all risks and controls, or to form a n op inion o n the effectivene ss of such internal controls, the Com pa ny's

corporate g overnance procedures a nd risks.

Further, Listing Regulations of the Karachi and Lahore Stock Exchanges require the Company to place before the Board of Directors

for their cons ide ration a nd a pp roval related p arty trans ac tions distinguishing be twee n transa ctions ca rried out on terms eq uivalent

to those that prevail in arm's length transactions and transactions which are not executed at arm's length price recording proper

justifica tion for us ing s uc h a lterna te pricing me chanism . Furthe r, a ll such tra ns ac tions are a lso req uired to b e sep arate ly place d before

the audit committee. We are only required and have ensured compliance of requirement to the extent of approval of related party

trans ac tions by the Board of Directors and placeme nt of suc h trans actions be fore the a udit comm ittee . We ha ve not carried out any

procedures to de te rmine whether the re la ted par ty t ransac t ions were under taken a t a rm's l ength pr ice or not .

The Boa rd has not mad e a rrang eme nts for directors' training p rogram for one of the no n-exempted directors o f the Co mpa ny during

the year ende d 30 J une 2013 a s req uired by clause (xi) of the Code of Corporate Governance .

Base d o n our review, excep t for the matter des cribe d in the p reced ing p arag raph, nothing ha s c ome to our attention, which ca use s

us to believe that the Statement of Compliance does not appropriately reflect the Company's compliance, in all material respects,

with the best practices contained in the Code of Corporate Governance as applicable to the Company for the year ended 30 June

2013.

We d raw attention to Note 9 of the S tatement of Comp lianc e with the Cod e o f Corporate Governance. The Board h as not ap pointed

a c hief financial office r (CFO) after res ignation of previous CFO. An ap plica tion under claus e (xlii) of the Code of Corpora te Governa nce

for exemp tion from the experienc e requireme nt of CFO is b eing s ubm itted to SECP for cons ide ration. Ou r report is not q ualified in

respect of this matter.

Review Reportto the me mbers o n Statement of Comp liance with bes t prac tice s o f Codeof Corporate Governance

RIAZ AHMAD & COMPANYChartered Acco untants

Name of engag eme nt partner:

Syed Mustafa Ali

Date: 04 Octobe r 2013

LAHORE



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Aud itors Report to the Members

We have audited the annexed balance sheet of NISHAT (CHUNIAN) LIMITED as at 30 June 2013 and the related profit and loss account,

statement of comprehensive income, cash flow statement and statement of changes in equity together with the notes forming part thereof,

for the year then ended and we state that we have obtained all the information and explanations which, to the best of our knowledge

and be lief, were nece ss ary for the purpos es of our audit.

It is the responsibility of the company's management to establish and maintain a system of internal control, and prepare and present

the ab ove sa id s tatements in conformity with the app roved acco unting s tandards and the requirements of the Comp anies Ordinance

1984. Our responsibility is to express an opinion on these statements based on our audit.

We conduc ted our audit in ac corda nce with the a uditing s tanda rds a s a pp licab le in Pakistan . Thes e s tanda rds req uire that we p lan a nd

perform the aud it to obtain reas onab le a ss urance a bout whether the a bove s aid statements are free of any material miss tatement. An

aud it includes e xamining, on a test ba sis, evide nce s upp orting the a mounts a nd d isc losures in the a bove s aid stateme nts. An aud it also

include s as se ss ing the ac counting policies and significant e stimates mad e b y manag ement, a s well as, e valuating the overall pres entation

of the a bove s aid stateme nts. We b elieve that our audit provide s a rea sonab le b as is for our opinion a nd, a fter due verification, we repo r

that:

(a) in our opinion, proper books of acco unt have been kept by the company as required by the Companies Ordinance, 1984;

(b) in our opinion:

i) the balance she et and profit and loss acc ount toge ther with the notes thereon have bee n drawn up in conformity with the

Companies Ordinance, 1984, a nd a re in ag reement with the books of account and are further in ac corda nce with acco unting

po licies cons istently app lied ;

ii) the expend iture incurred d uring the year was for the purpose of the compa ny's bus ines s; and

iii) the business conducted, investments made and the e xpenditure incurred during the year were in acc ordance with the ob jects

of the c ompa ny;

(c) in our opinion and to the b est of our information a nd a ccording to the explanations given to us , the balance s heet, profit and loss

acc ount, statement of comp rehensive income, ca sh flow statement a nd statement of chang es in eq uity together with the notes

forming part thereof conform with approved accounting standards as applicable in Pakistan, and, give the information required

by the Comp anies Ordinance , 1984, in the ma nner so required a nd res pe ctively give a true and fair view of the s tate of the c ompany's

affairs as at 30 J une 2013 and of the p rofit, its comprehens ive income , its ca sh flows a nd c hanges in eq uity for the year then e nded

and

(d) in our opinion, Zakat ded uctible a t source und er the Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was deducted b y the compa ny

and deposited in the Central Zakat Fund established under Section 7 of that Ordinance.

RIAZ AHMAD & COMPANYChartered Accountants

Name of engag eme nt partner:Syed Mustafa Ali

Date: 04 Octobe r 2013

LAHORE



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Balance Sheetas at 30 June 2013

2013Rupees 2012RupeesNOTE

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorized share capital 3 2,500,000,000 1,950,000,000

Issued, subscribed and paid-up share capital 4 1,819,860,280 1,654,418,440

Reserves 5 6,200,411,169 4,420,575,587

Tota l equity 8,020,271,449 6,074,994,027

LIABILITIES

NON-CURRENT LIABILITIES

Long term financing 6 4,201,123,183 3,985,589,955

CURRENT LIABILITIES

Trade and other payables 7 1,425,022,011 1,105,047,161

Accrued mark-up 8 164,249,549 144,471,269

Short term borrowings 9 6,493,965,784 5,349,510,524

Current portion of long term financing 6 1,620,216,772 1,023,341,772

9,703,454,116 7,622,370,726

Tota l liab ilitie s 13,904,577,299 11,607,960,681

CONTINGENCIES AND COMMITMENTS 10

TOTAL EQUITY AND LIABILITIES 21,924,848,748 17,682,954,708

The a nnexed notes form an integral part of these financial stateme nts.

CHIEF EXECUTIVE



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ASSETS

NON-CURRENT ASSETS

Fixed assets 11 7,635,608,369 6,076,549,160

Inves tments in subsidiary companies 12 1,886,681,200 1,875,858,200

Long term loans to employees 13 3,092,629 3,365,003

Long term security deposits 2,531,259 2,286,909

9,527,913,457 7,958,059,272

CURRENT ASSETS

Stores , spare parts and loose tools 14 569,177,807 523,273,790

Stock-in-trade 15 5,639,883,723 4,010,713,332

Trade debts 16 3,904,386,724 3,027,856,152

Loans and advances 17 782,917,291 172,732,886

Short term loans to subsidiary company 18 -)))) 1,132,500,000

Short term prepayments 340,213 266,428

Accrued interest 19 -)))) 5,965,255

Other receivables 20 1,158,829,645 771,096,062

Short term inves tments 21 82,162,359 32,494,520

Cash and bank balances 22 259,237,529 47,997,011

12,396,935,291 9,724,895,436

TOTAL AS SETS 21,924,848,748 17,682,954,708

Balance Sheetas at 30 June 2013

DIRECTOR



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Profit and Loss Accountfor the yea r ende d 30 June 2013


SALES 23 21,213,244,304) 18,616,942,561)

COST OF SALES 24 (17,617,677,400) (16,540,145,218)

GROSS PROFIT 3,595,566,904) 2,076,797,343)

DISTRIBUTION COST 25 (535,142,990) (499,834,017)

ADMINISTRATIVE EXPENSES 26 (149,342,527) (135,995,989)

OTHER EXPENSES 27 (137,292,220) (50,169,183)

(821,777,737) (685,999,189)

2,773,789,167) 1,390,798,154)

OTHER INCOME 28 1,000,393,903) 856,620,344)

PROFIT FROM OPERATIONS 3,774,183,070) 2,247,418,498)

FINANCE COST 29 (1,243,261,666) (1,353,445,371)

PROFIT BEFORE TAXATION 2,530,921,404) 893,973,127)

TAXATION 30 (254,760,294) (194,642,398)

PROFIT AFTER TAXATION 2,276,161,110) 699,330,729)

EARNINGS PER SHARE - BASIC AND DILUTED 31 12.51) 3.88)


DIRECTORCHIEF EXECUTIVE



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2013Rupees 2012Rupees

PROFIT AFTER TAXATION 2,276,161,110 699,330,729

OTHER COMPREHENSIVE INCOME

Items that will not be reclassified to profit or loss -))))) -)))))

Items that may be reclass ified subsequently to profit or loss -))))) -)))))

Other comprehensive income for the year -))))) -)))))

TOTAL COMPREHENSIVE INCOME FOR THE YEAR 2,276,161,110 699,330,729

The a nnexed notes form an integral part of these financ ial stateme nts.

Stateme nt of Comprehens ive Incomefor the yea r end ed 30 June 2013




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Cas h Flow Stateme ntfor the yea r ende d 30 June 2013


CASH FLOWS FROM OPERATING ACTIVITIES

Cas h ge ne ra te d from ope ra tions 32 332,616,906) 1,950,568,174)

Net increase in long term security deposits (244,350) (1,191,467)

Finance cost paid (1,223,861,554) (1,407,121,962)

Income tax paid (297,884,201) (242,117,706)

Net decrease / (increase) in long term loans to employees 2,649,818) (1,906,913)

Ne t cas h (us e d in) / ge ne ra te d from ope ra ting a ctivities (1,186,723,381) 298,230,126)

CASH FLOWS FROM INVES TING ACTIVITIES

Capital expenditure on property, plant and equipment (2,088,196,451) (420,047,261)

Proceeds from sale of property, plant and equipment 7,000,981) 26,301,460)

Proceeds from sale of shares of subsidiary company -))))) 92,838,536)

Investment in subsidiary company (10,823,000) -)))))

Short term loans made to subsidiary company (1,430,000,000) (3,299,394,249)

Repayment of short term loans by subs idiary company 2,562,500,000) 2,166,894,249)

Dividend received from subsidiary company 750,343,280) 468,964,551)

Short term inves tments made (49,667,839) (30,000,000)

Profit on bank deposits received 27,113,410) 25,234,597)

Ne t cas h us e d in inve s ting activitie s (231,729,619) (969,208,117)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from long term financing 2,242,000,000) 3,050,000,000)

Repayment of long term financing (1,429,591,772) (2,874,062,089)

Short term borrowings - net 1,144,455,260) 740,894,765)

Dividends paid (327,169,970) (332,880,958)

Ne t cas h from fina nc ing ac tivitie s 1,629,693,518 583,951,718)

Ne t incre as e / (de cre as e ) in ca s h and cas h e quiva lents 211,240,518 (87,026,273)

Cas h and cas h e quiva le nts a t the be ginning o f the ye ar 47,997,011 135,023,284)

Cas h and cas h e quiva le nts a t the e nd o f the ye ar 259,237,529 47,997,011)





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Balance a s a t 30 J une 2011 1,620,903,490 33,514,950) 1,654,418,440 1,629,221,278 2,420,801,253 4,050,022,531) 5,704,440,971)

Transa ctions with owners:

Final dividend for the year end ed 30 June

2011 @ Rupees 2 per ordinary share -))))) -))))) -))))) -))))) (324,180,698) (324,180,698) (324,180,698)

Preference shares converted into ordinary shares 33,514,950 (33,514,950) -))))) -))))) -))))) -))))) -)))))

Preference dividend for the year ended 30 June 2012 -))))) -))))) -))))) -))))) (4,596,975) (4,596,975) (4,596,975)

33,514,950 (33,514,950) -))))) -))))) (328,777,673) (328,777,673) (328,777,673)

Profit for the year -))))) -))))) -))))) -))))) 699,330,729) 699,330,729) 699,330,729)

Other comprehensive income for the year -))))) -))))) -))))) -))))) -))))) -))))) -)))))

Total comprehensive income for the year -))))) -))))) -))))) -))))) 699,330,729) 699,330,729) 699,330,729)

Ba lance a s a t 30 J une 2012 1,654,418,440 -))))) 1 ,654,418,440 1,629,221,278 2,791,354,309) 4,420,575,587) 6,074,994,027)

Transa ctions with owners:

Final dividend for the year end ed 30 June

2012 @ Rupees 2 per ordinary share -))))) -))))) -))))) -))))) (330,883,688) (330,883,688) (330,883,688)

Issue of bonus shares during the year 165,441,840 -))))) 165,441,840 -))))) (165,441,840) (165,441,840) -)))))

165,441,840 -))))) 165,441,840 -))))) (496,325,528) (496,325,528) (330,883,688)

Profit for the year -))))) -))))) -))))) -))))) 2,276,161,110) 2,276,161,110) 2,276,161,110)

Other comprehensive income for the year -))))) -))))) -))))) -))))) -))))) -))))) -)))))

Total comprehensive income for the year -))))) -))))) -))))) -))))) 2,276,161,110) 2,276,161,110) 2,276,161,110)

Balance a s a t 30 J une 2013 1,819,860,280 -))))) 1 ,819,860,280 1,629,221,278 4,571,189,891) 6,200,411,169) 8,020,271,449)

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

Stateme nt of Changes in Equityfor the yea r end ed 30 June 2013


TOTALEQUITYTOTAL

Unappropriatedprofit

Generalreserve

REVENUE RESERVESSHARE CAPITAL

TOTALPreference

sharesOrdinaryshares

...................................................................... Rupee s ......................................................................



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1. THE COMPANY AND ITS OPERATIONS

Nishat (Chunian) Limited ("the Co mpa ny") is a pub lic limited compa ny incorpo rated in Pa kista n unde r the Co mpa nies Ordinance,

1984 a nd is liste d o n the Laho re and Karac hi Stock Exchang es . Its reg iste red o ffice is situated at 31-Q, Gulberg II, Laho re. The

Company is engaged in business of spinning, weaving, dyeing, printing, stitching, processing, doubling, sizing, buying, selling

and otherwise de aling in yarn, fab rics and mad e-ups mad e from raw cotton, synthetic fibre a nd c loth and to gene rate, accumulate,

distribute, s upply and sell electricity.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The significa nt ac counting po licies a pp lied in the preparation o f thes e financ ial statements are se t out be low. Thes e p olicies have

been consistently applied to all years presented, unless otherwise stated:

2 .1 Bas is o f p re para tion

a ) S ta te me n t o f c om plia nc e

Thes e financial statements have be en p repared in acc ordance with app roved acco unting s tandards as app licab le inPakistan . App roved ac counting standa rds comprise of suc h Internationa l Financ ial Reporting Standa rds (IFRS) iss ued

by the Internationa l Acco unting Sta nda rds Boa rd as are no tified unde r the Compa nies Ordinanc e, 1984, provisions o f

and direc tives issued under the Comp anies Ordinanc e, 1984. In cas e req uirements differ, the provisions o r directives

of the Comp anies Ordinanc e, 1984 shall prevail.

b ) Ac c ou n tin g c o nve n tio n

These financial statements have been prepared under the historical cost convention except for the certain financial

instruments carried at fair value.

c ) Critic a l a c c oun ting e s t ima te s a nd judgme nts

The preparation of financial statements in conformity with the approved accounting standards requires the use of certain

critica l ac coun ting e stimates. It also req uires the m ana ge ment to exercise its judgment in the p roces s o f ap plying the

Company's accounting policies. Estimates and judgments are continually evaluated and are based on historicalexperience and other factors, including expec tations of future e vents that are b elieved to be reas onab le un de r the

circumstances. The areas where various assumptions and estimates are significant to the Company's financial statements

or where judg ments were exercise d in ap plication of acco unting policies are a s follows:

Us eful lives, pa tterns of econ omic ben efits an d impairment

Estimates with respect to residual values and useful lives and pattern of flow of economic benefits are based on the

ana lysis of the mana ge ment of the Comp any. Further, the Comp any reviews the value of ass ets for pos sible impa irment

on an annual basis. Any change in the estimates in the future might affect the carrying amount of respective item of

property, plant and equipment, with a corresponding effect on the depreciation charge and impairment.

Inventories

Net realizable value of inventories is determined with reference to currently prevailing selling prices less estimated

expenditure to make s ales .

Accumulating compe nsa ted abse nces

The provision for accumulating compensated absences is made on the basis of accumulated leave balance on account

of employees.

Taxation

In making the estimates for income tax currently payable by the Company, the management takes into account the

current income tax law and the de cisions of app ellate a uthorities on c ertain issue s in the pa st.

Notes to the Financial Stateme ntsfor the yea r ende d 30 June 2013



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Provis ions for do ubtful de bts

The Company reviews its receivables against any provision required for any doubtful balances on an ongoing basis.

The provision is made while taking into consideration expected recoveries, if any.

Impa irment of inves tments in sub sidiary comp anies

In ma king a n es timate o f recoverable a mount of the Compa ny's inves tments in subs idiary comp anies, the ma nag eme nt

cons ide rs future cas h flows.

d) Amendme nts to publishe d approved s tandards tha t a re e ffec t ive in current year and a re re levant to theCompany

The following a mend ments to publishe d a pproved s tandards are ma nda tory for the Compa ny's acc ounting p eriods

be ginning on o r after 01 J uly 2012:

IAS 1 (Amendments), 'Presentation of Financial Statements' (effective for annual periods beginning on or after 01 July

2012). The main chang e res ulting from these ame ndme nts is a requirement for entities to group items prese nted in

Other Comprehens ive Income (OCI) on the bas is of whether they are p otentially reclas sifiable to profit or loss sub se que ntly

(reclassification adjustments). The amendments do not address which items are presented in OCI. The amendments

have been applied retrospectively, and hence the presentation of items of other comprehensive income has been

modified to reflect the change s. Other than the above me ntioned pres entation cha nge s, the ap plication of the amend ments

to IAS 1 d oes not result in any impa ct on p rofit or los s, o ther comp rehens ive income a nd total comp rehens ive income

e) Amendmen ts to publ ishe d approved s tandards tha t a re e ffec t ive in current year but not re levant to the

Company

There are other amendme nts to the publishe d a pproved s tanda rds that are mand atory for accounting periods beg inning

on o r after 01 July 2012 bu t are considered not to be relevant or do not have a ny significa nt impa ct on the Co mpa ny's

financial stateme nts a nd a re therefore not detailed in thes e financ ial stateme nts.

f) Standards and amendments to published a pproved s tandards tha t a re not ye t e ffec t ive but re levant to the

Company

Following s tanda rds and a mendments to existing s tandards have be en publishe d a nd a re manda tory for the Comp any's

ac coun ting p eriods be ginning o n or after 01 July 2013 or later pe riods :

IFRS 7 (Amendment), 'Financial Instruments: Disclosures' (effective for annual periods beginning on or after 01 January

2013). The International Accounting Standards Board (IASB) has amended the accounting requirements and disclosures

related to offsetting of financial assets and financial liabilities by issuing amendments to IAS 32 'Financial Instruments

Presentation' and IFRS 7. These amendments are the result of IASB and US Financial Accounting Standard Boardundertaking a joint project to address the differences in their respective accounting standards regarding offsetting o

fina ncial ins trume nts. The c larifying amend me nts to IAS 32 are effec tive for annua l periods be ginning on or after 01

Ja nuary 2014. However, these ame ndme nts are no t expe cted to ha ve a ma terial impa ct on the Comp any's financia

statements.

IFRS 9 'Financial Instruments' (effective for annual periods beginning on or after 01 January 2015). It addresses the

class ifica tion, m ea su remen t and recog nition o f financial ass ets and financial liab ilities . This is the first pa rt of a new

sta nda rd on c las sifica tion a nd mea surement of financial as se ts a nd financial liab ilities that shall replace IAS 39 'Financia

Instruments: Recognition and Measurement'. IFRS 9 has two measurement categories: amortized cost and fair value

All equity ins trume nts a re me as ured at fair value. A de bt instrument is mea sured at a mortized cos t only if the entity is

holding it to collec t contractua l ca sh flows a nd the cas h flows rep rese nt principal and interes t. For liab ilities , the s tandard

retains mos t of the IAS 39 requ ireme nts. The se include amortized -cos t ac counting for most fina ncial liab ilities , with

bifurcation of embedded derivatives. The main change is that, in cases where the fair value option is taken for financial

liab ilities , the pa rt of a fair value ch ang e d ue to an entity's own c redit risk is rec orded in o ther comprehe ns ive incomerather than the income stateme nt, unles s this creates an acc ounting misma tch. This cha nge sha ll mainly affect financ ia

institutions. There shall be no impact on the Company's accounting for financial liabilities, as the new requirements only

affec t the a cco unting for finan cial liab ilities that are de signa ted at fair value through profit or los s, a nd the Company

does not ha ve any s uch liab ilities .

IFRS 10 'Consolidated Financial Statements' (effective for annual periods beginning on or after 01 January 2013).

Conc urrent with the iss uance of IFRS 10, the IASB has also iss ued IFRS 11 'Joint Arrang eme nts', IFRS 12 'Disc los ure

of Interests in Other Entities', IAS 27 (revised 2011) 'Separate Financial Statements' and IAS 28 (revised 2011) 'Investments



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in Asso ciates and Jo int Ventures '. The ob jec tive of IFRS 10 is to have a single bas is for co nsolida tion for a ll entities ,

regardless of the nature of the investee, and that basis is control. The definition of control includes three elements:

power over an investee, exposure or rights to variable returns of the investee and the ability to use power over the

investee to affect the investor's returns. IFRS 10 replaces those parts of IAS 27 'Separate Financial Statements' that

addres s when and how an investor should prepa re consolida ted financ ial statements and replaces Stand ing Interpretations

Committee (SIC) 12 'Consolidation - Special Purpose Entities' in its entirety. The management of the Company is in the

process of evaluating the impacts of the aforesaid standard on the Company's financial statements.

Amendments to IFRS 10, IFRS 11 and IFRS 12 (effective for annual periods beginning on or after 01 January 2013)

provide additional transition relief by limiting the requirement to provide adjusted comparative information to only thepreceding comparative period. Also, amendments to IFRS 12 eliminate the requirement to provide comparative

information for periods prior to the immediately preceding period.

Amendments to IFRS 10, IFRS 12 and IAS 27 (effective for annual periods beginning on or after 01 January 2014)

provide 'investment entities' an exemption from the consolidation of particular subsidiaries and instead require that:

an investment entity measure the investment in each eligible subsidiary at fair value through profit or loss; requires

additional disclosures; and require an investment entity to account for its investment in a relevant subsidiary in the same

way in its consolidated and separate financial statements. The management of the Company is in the process of

evaluating the impacts of the aforesaid amendments on the Company's financial statements.

IFRS 13 'Fair value Mea surement' (effec tive for annua l periods be ginning on o r after 01 J anuary 2013). This sta nda rd

aims to improve cons istency and reduc e c omp lexity by providing a prec ise de finition o f fair value and a single s ource

of fair value me as urement a nd disclos ure requireme nts for use acros s IFRSs. The requireme nts, which are largely

aligne d b etween IFRSs and US GAAP, do not extend the use o f fair value a cco unting but p rovide guidance on ho w itshould be applied where its use is already required or permitted by other standards within IFRSs or US GAAP. This

standard is not expected to have a material impact on the Company's financial statements.

IAS 36 (Amendments) 'Impairment of Assets' (effective for annual periods beginning on or after 01 January 2014).

Amend ments h ave be en ma de in IAS 36 to reduce the circums tances in which the reco verab le a mount of ass ets or

cash- gene rating units is required to be d isc losed , clarify the d isc losures required and to introduce an e xplicit requireme nt

to disclose the discount rate used in determining impairment (or reversals) where recoverable amount (based on fair

value less cos ts of disposa l) is determined using a prese nt value technique. However, the ame ndme nts are not expected

to have a material impa ct on the Co mpa ny's financ ial stateme nts.

On 17 May 2012, IASB iss ued Annua l Improveme nts to IFRSs: 2009 - 2011 Cycle, incorporating ame ndments to five

IFRSs more s pe cifica lly in IAS 1 'Presentation o f Financial Stateme nts' and IAS 32 'Financial Ins truments : Presentation',

that are co nsidered relevant to the Compa ny's financ ial statements. Thes e a mend ments are e ffective for annua l periods

be ginning o n or after 01 January 2013. Thes e a mend ments are un likely to ha ve a s ignifica nt impa ct on the Company's

financ ial stateme nts a nd have therefore not be en a nalyzed in de tail.

g) Standards , in te rpre ta t ions a nd amendments to published approved s tandards tha t a re not ye t e ffec t ive and

not cons idered relevant to the Comp any

There are o ther standards, a mendme nts to pub lished app roved standa rds a nd new interpretations that are manda tory

for acco unting p eriods beg inning o n or after 01 J uly 2013 but are co nsidered not to be relevant or do not have a ny

significa nt impa ct on the Co mpa ny's financ ial stateme nts a nd a re therefore no t detailed in thes e financ ial stateme nts.

2 .2 Ta xa tio n

Current

Provision for current tax is based on the taxable income for the year determined in accordance with the prevailing law for

taxation of income. The charge for current tax is calculated using prevailing tax rates or tax rates expected to apply to the

profit for the year if ena cted . The cha rge for current tax also include s ad justme nts, where c ons ide red nece ss ary, to provision

for tax mad e in previous years a rising from as se ss ments framed during the yea r for suc h years.

Deferred

Deferred tax is accounted for using the balance sheet liability method in respect of all temporary differences arising from

difference s between the ca rrying amount of ass ets a nd liab ilities in the financ ial statements a nd the corresp onding tax ba se s

used in the computation of the taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary

differences and deferred tax assets to the extent that it is probable that taxable profits will be available against which the

de duc tible temporary difference s, unus ed tax los se s a nd tax credits c an b e utilized .



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Deferred tax is calculated at the rates that are expec ted to a pp ly to the p eriod when the differences reverse ba se d on tax

rates that have b een enac ted or s ubs tantively enacted by the ba lance shee t date. Deferred tax is charged or credited in the

profit and los s ac coun t, except to the e xtent that it relates to items recog nise d in other comp rehens ive income or directly in

equity. In this case the tax is also recognised in other comprehensive income or directly in equity, respectively.

2 .3 Employe e be ne fits

The main features of the schemes operated by the Company for its employees are as follows:

Provide nt fund

There is an approved contributory provident fund for employees of the Company. Equal monthly contributions are made both

by the emp loyees and the Comp any to the fund in ac corda nce with the fund rules. The Compa ny's c ontributions to the fund

are c harge d to income currently.

Accumulating compe nsa ted abs ences

The Comp any provides for accumulating co mpe nsa ted ab se nces , when the e mployees render se rvice that increas e their

entitleme nt to future c ompens ated abse nces . Under the rules , hea d o ffice employees and factory staff are e ntitled to 20 da ys

lea ve pe r yea r and fac tory workers a re entitled to 14 d ays lea ve pe r year resp ectively. Unutilized lea ves can be ac cumulated

upto 10 d ays in cas e of hea d office emp loyees , 40 da ys in ca se of fac tory staff and upto 28 d ays in cas e of factory workers.

Any further un-utilized lea ves will lap se . Any un-utilized lea ve balance i.e. 40 da ys a nd 28 d ays in c as e of fac tory staff and

workers respectively, can be encashed by them at any time during their employment. Unutilized leaves can be used at any

time by all emp loyees , subject to the Compa ny's approval. Provisions are made a nnually to cover the ob liga tion for acc umulating

compensated a bsences and are charged to income.

2.4 Fixe d a s s e ts

Prop erty, plant, equipme nt and d ep reciation

Property, plant and equipment except freehold land and capital work-in-progress are stated at cost less accumulated

de preciation and any identified impa irment loss . Cos t in relation to c ertain p roperty, p lant a nd equipme nt s ignifies historica

cost, borrowing cost pertaining to erection / construction period of qualifying assets and other directly attributable cost of

bringing the asset to working condition. Freehold land and capital work-in-progress are stated at cost less any identified

impa irment loss .

Subse quent cos ts are included in the as se t's carrying a mount or recog nized a s a s epa rate a ss et, as app ropriate, only when

it is probable that future economic benefits associated with the item will flow to the Company and cost of the item can be

measured reliably. All other repair and maintenance costs are charged to income during the period in which they are incurred.

Depreciation

Depreciation on all operating fixed assets is charged to income on the reducing balance method so as to write off the cost

/ dep rec iable a mount o f the assets over their es tima ted us eful lives at the rates given in Note 11.1. Dep rec iation on add itions

is charged from the month in which the as se ts are availab le for use upto the mo nth prior to dispos al. The a ss ets' residua

values and use ful lives a re reviewed at ea ch financ ial yea r end and ad jus ted if impa ct on d epreciation is s ignifica nt.

Derecognition

An item of property, plant and equipme nt is d erecognized upon d isp osal or when no future eco nomic bene fits are e xpe cted

from its us e or disposal. Any gain or los s a rising on d erecognition o f the as se t (calculated a s the difference be twee n the ne t

disposal proceeds and carrying amount of the asset) is included in the profit and loss account in the year the asset is

derecognized.

Intangible as se t

Intangible assets, which are non-monetary assets without physical substance, are recognized at cost, which comprisepurcha se price , non-refundab le p urchas e taxes and other directly attributab le e xpend itures relating to their impleme ntation

and cus tomization. After initial recognition, a n intang ible as se t is ca rried at cost less ac cumulated amortization a nd impa irment

los se s, if any. Intangible as se ts a re amo rtized from the mo nth, when these as se ts a re available for use, us ing the s traight

line method, whereby the cost of the intangible asset is amortized over its estimated useful life over which economic benefits

are e xpected to flow to the Compa ny. The use ful life a nd a mortization method are reviewed and ad jus ted, if ap propriate, a t

eac h reporting d ate.



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2 .5 In ve s tm en ts

Classification of an investment is made on the basis of intended purpose for holding such investment. Management determines

the ap propriate clas sifica tion of its investments at the time o f purcha se and re-evaluates suc h de signation on reg ular ba sis.

Inves tments are initially mea sured at fair value p lus transa ction c os ts d irectly attributa ble to a cquis ition, e xcept for 'inves tment

at fair value through p rofit or loss ' which is me as ured initially at fair value.

The Com pa ny ass es se s a t the end of each rep orting p eriod whether there is any objective evide nce that investments a re

impaired. If any such evidence exists, the Company applies the provisions of IAS 39 'Financial Instruments: Recognition and

Mea surement' to a ll investments , excep t investments in s ubs idiary comp anies, which is tes ted for impa irment in a ccordance

with the provisions of IAS 36 'Impairment of Asse ts'.

a ) Inves tment a t fa ir va lue through profit or loss

Investment classified as held-for-trading and those designated as such are included in this category. Investments are

clas sified as held-for-trad ing if thes e a re ac quired for the p urpos e o f selling in the sho rt term. Gains o r los se s on

investme nts he ld-for-trad ing a re recog nized in p rofit and los s acc ount.

b ) He ld -to -m a tu rity

Investme nts with fixed or de terminab le p ayments a nd fixed ma turity are class ified as held-to-maturity when the Company

has the pos itive intention a nd ab ility to hold to ma turity. Investme nts intende d to b e he ld for an unde fined pe riod are

not included in this classification. Other long-term investments that are intended to be held to maturity are subsequently

mea sured at a mortized cos t. This cos t is comp uted as the a mount initially recognized minus principal repayments, p lus

or minus the cumulative amortization, using the effective interest method, of any difference between the initially recognizedamo unt and the maturity amo unt. For investme nts ca rried at amo rtized c os t, gains and los se s a re recog nized in profit

and loss acc ount when the investments a re de -recog nized or impa ired, as well as through the a mortization p rocess .

c ) Inve s t me nts in subs id ia ry c ompa nie s

Investme nts in subsidiary compa nies are s tated a t cos t les s impa irment los s, if any, in ac corda nce with the provisions

of IAS 27 'Cons olida ted a nd Sep arate Financ ial Statements '.

d ) Ava ila b le -fo r-sa le

Investme nts intende d to be held for an indefinite period of time, which ma y be so ld in response to nee d for liquidity,

or cha nge s to interes t rates or eq uity price s are class ified as availab le-for-sa le. After initial recog nition, investme nts

which are clas sified as availab le-for-sa le are mea sured at fair value. Gains o r los se s on availab le-for-sa le investme nts

are recognized d irectly in s tatement of comprehe nsive income until the inves tment is s old, de-recognized or is de termined

to be impaired, at which time the cumulative gain or loss previously reported in statement of comprehensive incomeis included in profit and loss account. These are sub-categorized as under:

Quoted

For investments that are actively traded in organized capital markets, fair value is determined by reference to stock

exchange q uoted market bids at the close of bus ines s on the b alance shee t date.

Unquoted

Fair value of unquo ted inves tments is determined on the b as is o f ap propriate valuation techniques as allowed b y IAS

39 'Financ ial Instruments : Recognition and Mea surement'.

2 .6 In ve n to rie s

Inventories, except for stock-in-transit and waste stock, are stated at lower of cost and net realizable value. Cost is determined

as follows:

Stores, spare p arts and loose tools

Usab le s tores, sp are pa rts a nd loose tools a re valued p rincipally at weighted a verag e cost, while items cons ide red ob so lete

are carried at nil value. Items-in-transit are valued at cost comprising invoice value plus other charges paid thereon.

Stock-in-trade

Cos t of raw materials is me as ured us ing the weighted a verage c os t formula.



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Cost of work-in-process and finished goods comprise cost of direct material, labour and appropriate manufacturing overheads.

Cos t of good s purcha se d for resa le is ba se d on first-in-first-out (FIFO) cos t formula.

Materials-in-transit are stated at cost comprising invoice values plus other charges paid thereon. Waste stock is valued at

net realizable value.

Net realizable value signifies the estimated selling price in the ordinary course of business less the estimated costs of

completion and the estimated co sts ne ces sa ry to make the sale.

2 .7 Fore ign c urre nc ie s

These financial statements are presented in Pak Rupees, which is the Company's functional currency. All monetary assets

and liabilities denominated in foreign currencies are translated into Pak Rupees at the rates of exchange prevailing at the

ba lanc e s hee t da te, while the trans ac tions in foreign currencies during the yea r are initially rec orde d in functiona l currenc y

at the rates of exchange prevailing at the transaction date. All non-monetary items are translated into Pak Rupees at exchange

rates p revailing on the date of transac tion or on the da te when fair values a re de termined. Exchange gains a nd los se s are

included in the income currently.

2 .8 Bo rr owin g c o s t

Borrowing c os ts a re recognized as expens e in the pe riod in which thes e a re incurred e xcep t to the e xtent of borrowing c os ts

that are directly attributable to the acquisition, construction or production of a qualifying asset. Such borrowing costs, if any,

are capitalized as part of cost of that asset.

2 .9 Re ve nue re cogn itionRevenue from s ales is recog nized on disp atch of goods to customers.

Return on ba nk dep osits is acc rued on a time proportionate ba sis by reference to the principal outstanding and the ap plicab le

rate of return.

Revenue from sale of electricity is recognized at the time of transmission.

Divide nd income on e quity investme nt is rec ogn ized as and when the right to rece ive divide nd is e stab lished .

2.10 Share capita l

Ordinary shares and irredeemable preference shares are classified as equity. Incremental costs directly attributable to the

issue of new shares are shown in equity as a deduction, net of tax, from the proceeds

2.11 Financial instruments

Financial instruments ca rried on the balance she et include se curity de pos its, trade deb ts, loans and ad vances, short term

investments, other receivables, accrued interest, cash and bank balances, short term borrowings, long term financing, accrued

mark-up and trade and other payables. Financial as se ts and liabilities are recog nized when the Compa ny become s a p arty

to the contrac tual provisions of the instrument. Initial recog nition is mad e at fair value p lus trans ac tion cos ts d irectly attributable

to a cq uisition, exce pt for 'fina ncial ins trument a t fair value through profit or loss ' which is me as ured initially at fair value.

Financial ass ets are d e-recognized when the Comp any los es control of the contractual rights that comp rise the financia

as se t. The Compa ny loses such control if it rea lizes the rights to benefits spe cified in contract, the rights expire or the Compa ny

surrenders those rights. Financial liabilities are de-recognized when the obligation specified in the contract is discharged

canc elled or expired. Any gain or los s on s ubs eque nt mea surement (excep t available for sale investments) and de -recog nition

is cha rged to the p rofit or los s currently. The pa rticular meas urement me thods ad opted are d isc losed in the individua l policy

state ments as so ciated with eac h item and in the ac counting policy of investme nts.

2.12 Trade deb ts and other receivables

Trade de bts a nd othe r rece ivables a re carried a t original invoice value les s a n es timate ma de for doub tful de bts b as ed o n

a review of all outstanding a mounts at the year end. Bad de bts are written off when identified .

2 .13 Borrowings

Borrowings are rec ognized initially at fair value and are s ubs eq uently state d a t amortized cos t. Any differenc e b etween the

proce eds a nd the red emp tion value is recog nized in the profit and loss ac coun t over the pe riod o f the borrowings us ing the

effective interest rate method .



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37/114

impa irment los s is recognized wherever the c arrying a mount of the as se t exce eds its recoverable amount. Impa irment

los se s are rec ogn ized in profit and los s ac count. A previous ly reco gnized impairment loss is reversed only if there ha s

bee n a chang e in the e stimates use d to d etermine the a ss et's recoverable a mount since the last impa irment loss was

recog nized. If that is the ca se , the ca rrying a mount of the as se t is increas ed to its recoverab le a mount. That increa se d

amo unt canno t excee d the ca rrying a mount that would have be en determined , net of de preciation, had no impa irment

los s b ee n recog nized for the a ss et in prior yea rs. Such reversa l is rec ogn ized in profit and loss acc ount.

2 .21 Segment repor ting

Segme nt repo rting is ba se d o n the ope rating (bus ines s) se gments of the Comp any. An ope rating s egme nt is a co mpone nt

of the Compa ny that eng ages in bus ines s a ctivities from which it may ea rn revenues and incur expens es , including revenue s

and expens es that relate to the transa ctions with any of the Company's o ther components. An operating s egment's ope rating

results are reviewed regularly by the chief executive to make decisions about resources to be allocated to the segment and

as se ss its p erformanc e, a nd for which discrete financ ial information is availab le.

Seg ment res ults that a re reported to the chief execu tive include items directly attributab le to a se gme nt as well as those that

can b e a llocated on a reaso nable bas is. Those income s, expens es , ass ets, liabilities and other balance s which ca nnot be

allocated to a p articular seg ment on a reasona ble b as is a re reported as unallocated.

The Company has four reportable business segments. Spinning (Producing different quality of yarn using natural and artificial

fibres ), Wea ving (Producing different q uality of greige fab ric us ing yarn), Proces sing and Home Textile (Proces sing greige

fabric for production of printed and dyed fabric and manufacturing of home textile articles) and Power Generation (Generating

and distributing power).

Transa ction am ong the bus ines s s eg ments a re recorded at arm's length p rices using ad miss ible valuation me thods. Inter

se gment s ales and purchase s are eliminated from the total.

2.22 Dividend to ordinary shareho lders and other appropriations

Dividend distribution to the ordinary shareholders is recognized as a liability in the Company's financial statements in period

in which the dividends are declared and other appropriations are recognized in the period in which these are approved by

the Board of Directors.

3.1 During the year ended 30 June 2013, the Company by way of special resolution passed in Annual General Meeting of the

sha reholde rs of the Co mpa ny held o n 30 Octob er 2012 has increas ed its a uthorized sha re cap ital by Rupees 550 million

divided into 55 million ordinary shares of Rupees 10 each. The new shares shall rank pari passu with the existing shares

2013Rupees

2012Rupees

230,000,000 175,000,000 Ordinary shares of Rupees 10 each 2,300,000,000 1,750,000,00020,000,000 20,000,000 Preference shares of Rupees 10 each 200,000,000 200,000,000

250,000,000 195,000,000 2,500,000,000 1,950,000,000

3. AUTHORIZED SHARE CAPITAL

2013 2012

(Number of sha res)



38/114

2013Rupees

2012Rupees

94,720 ,922 94,720 ,922 Ord inary sha re s of Rupe es 10 ea ch fu lly pa id

in cash 947,209,220 947,209,220

86,040 ,84 1 69,496,657 Ord ina ry s ha re s of Rup ee s 10 ea ch is s ue d as

fully paid bonus shares 860,408,410 694,966,570

1,224,265 1,224,265 Ord ina ry s ha re s of Rup ee s 10 e ach is sue d a s

fully pa id for consideration o ther than c as h to

membe rs of Umer Fabrics Limited a s p er the

Scheme of Arrange ment as app roved by the

Honourable Lahore High Court, Lahore 12,242,650 12,242,650

181,986,028 165,441,844 1,819,860,280 1,654,418,440

2013 2012

(Number of shares)

4. ISS UED, SUBSCRIBED AND PAID-UP SHARE CAPITAL

4.3 16,544,184 ordinary sha res of Rupee s 10 eac h were issued as fully paid b onus sha res during the year ende d 30 J une 2013

in pursuance of 10% bonus issue approved in Annual General Meeting of the shareholders of the Company held on 30

October 2012.

2013 2012

(Number of shares)

4.1 Ordinary shares of the Company he ld by re la ted par ties :

Nishat Mills Limited 24,764,652 22,513,321

D.G. Khan Cement Company Limited 5,511,064 5,010,059

30,275,716 27,523,380

2013Rupees

2012Rupees

165,441,844 162,090,349 At 01 July 1,654,418,440 1,620,903,490

-))))) 3,351,495 Preference shares converted into ordinary

shares of Rupees 10 each at par -))))) 33,514,950

16,544,184 -))))) Iss ue o f fully paid bonus sha res of Rupee s

10 each at par 165,441,840 -)))))

181,986,028 165,441,844 At 30 June 1,819,860,280 1,654,418,440

2013 2012

(Number of shares)

4 .2 Move me nt during the ye a r



39/114

2013Rupees

2012Rupees

5. RESERVES

Comp os ition of rese rves is as follows:

Revenue reserves

General reserve 1,629,221,278 1,629,221,278Unappropriated profit 4,571,189,891 2,791,354,309

6,200,411,169 4,420,575,587

6. LONG TERM FINANCING

From banking co mpa nies / financ ial ins titutions - sec ured

Long term loans (Note 6.1) 4,875,089,955 4,160,181,727

Long term musharaka (Note 6.2) 665,000,000 442,500,000

Priva te ly p lace d te rm finance certifica te s - s e cure d (Note 6.3) 281,250,000 406,250,000

5,821,339,955 5,008,931,727

Less: Current portion shown under current liabilities

Long term loans 1,300,216,772 720,841,772

Long term musharaka 195,000,000 177,500,000

Privately placed term finance certificates 125,000,000 125,000,000

1,620,216,772 1,023,341,772

4,201,123,183 3,985,589,955



40/114

Standard Chartered Bank(Pakistan) Limited

United Bank Limited-1







Allied Bank Limited -1



Pak Kuwait Investment Company(Private ) Limited

Summit Bank Limited

The Bank of Punjab-1




SAMBA Bank Limited

Saud i Pak Indus trial andAgricultural Investme nt Comp anyLimited

Soneri Bank Limited

Pak Brunei Investment Comp anyLimited

1-month KIBOR + 1.40%


SBP ra te for LTFF +2.5%








3-month KIBOR + 1%

6-month KIBOR + 2%







SBP rate for LTFF+ 3%



Six equa l half yearly instalments c omme ncing on 12July 2013 and ending on 12 January 2016. However, the Company

mad e pre-p ayment of loan in full during the current year.

Ten equal half yearly instalments commenced on 24 June 2008 andended on 24 December 2012.

Eight equal half yearly instalments commenced on 20 May 2011 andending on 20 November 2014.

Eight equal half yearly instalments commenced on 08 June 2011 andending on 08 December 2014.

Eight equal half yearly instalments commenced on 28 July 2011 andending on 28 J anuary 2015.



Sixteen equal quarterly instalments commenced on 31 May 2013 andending on 28 February 2017.

Sixteen eq ual quarterly instalments commencing on 06 Sep tember2013 and ending on 06 June 2017.

Sixteen equal quarterly instalments commenced on 28 February 2013and e nding on 29 November 2016.

Ten eq ual half yearly instalments c omme ncing on 01 August 2014and ending on 01 February 2019.

Eighteen eq ual quarterly instalments com menced on 21 Sep tember2011 and ending on 21 Decemb er 2015.

Twenty equal quarterly instalments commenced on 01 January 2008and end ed on 01 October 2012.

Sixteen equal quarterly instalments commenced on 15 January 2012and e nding on 15 October 2015.

Twelve equal quarterly instalments commenced on 30 September2011 and ending on 30 June 2014.

Ten equal half yearly instalments commenced on 17 June 2013 andending on 17 December 2017.

Ten eq ual half yearly instalments co mmenc ing on 10 Dece mbe r 2013and ending on 10 June 2018.

Eight equal quarterly instalments commenced on 31 January 2012and e nding on 31 October 2013.

Eighteen equal quarterly instalments commenced on 31 May 2012and e nding on 31 August 2016.

Sixteen e qual qua rterly instalments comme nced on 30 April 2013 andending on 31 J anuary 2017.

Sixteen e qual qua rterly instalments comme ncing on 02 J uly 2013 andending on 02 April 2017.

Monthly

Half Yea rly

Quarterly

Quarterly

Quarterly

Quarterly

Quarterly

Quarterly

Quarterly

Quarterly

Quarterly

Quarterly

Quarterly

Quarterly

Quarterly

Quarterly

Quarterly

Quarterly

Quarterly

Quarterly

Quarterly

-)))))

-)))))

10,725,000

14,400,000

4,400,000

44,300,000

13,250,000

468,750,000

500,000,000

1,050,000,000

342,000,000

138,888,896

-)))))

168,750,000

104,166,669

450,000,000

1,000,000,000

62,500,000

68,584,390

234,375,000

200,000,000

4,875,089,955

400,000,000

50,000,000

17,875,000

24,000,000

6,600,000

66,450,000

19,875,000

500,000,000

500,000,000

1,200,000,000

-)))))

194,444,448

30,000,000

236,250,000

187,500,001

-)))))

-)))))

187,500,000

89,687,278

250,000,000

200,000,000

4,160,181,727

Monthly

Half Yea rly

-

-

-

-

-

Quarterly

Quarterly

Quarterly

Quarterly

Half Yea rly

Half Yea rly

-

Quarterly

Quarterly

Quarterly

Quarterly

-

Quarterly

Quarterly

6 .2 Lo n g te rm mu s h a ra ka

Burj Bank Limited -1

Burj Bank Limited -2

Dubai Islamic Bank (Pakistan)Limited-1

Dubai Islamic Bank (Pakistan)Limited-2

6-month KIBOR +1%

6-month KIBOR +1%

6-month KIBOR +1.15%

6-month KIBOR +0.75%

Sixteen eq ual quarterly instalments comme nced on 30 September2009 and ended on 30 June 2013.

Sixteen eq ual quarterly instalments comme nced on 30 September2012 and ending on 30 June 2016.

Ten equal half yearly instalments commenced on 01 October 2010and ending o n 01 April 2015.

Ten eq ual half yearly instalments c ommenc ing on 29 Sep tember 2013and e nding on 29 March 2018.

Quarterly

Quarterly

Half Yea rly

Half Yea rly

-)))))

105,000,000

160,000,000

400,000,000

665,000,000

62,500,000

140,000,000

240,000,000

-)))))

442,500,000

Half Yea rly

Half Yea rly

Half Yea rly

Half Yea rly

6 .1 Lo n g Te rm Lo a ns

6.3 Privately placedterm finance cert ificates

2013Rupees

2012Rupees

Rate of profitper annum

Number of instalmentsProfit

payableProfit

repricingLender

Lender2013

Rupees2012

RupeesRate of mark up

per annumNumber of instalments

Mark uppayable

Mark uprepricing

Sixteen eq ual quarterly instalments comme nced on 30 December2011 and ending on 30 September 2015.

Qua rterly Qua rterly3-month KIBOR + 2.25%

2 81 ,2 50 ,0 00 4 06 ,2 50 ,0 00

2 81 ,2 50 ,0 00 4 06 ,2 50 ,0 00



41/114

2013Rupees

2012Rupees

7. TRADE AND OTHER PAYABLES

Creditors (Note 7.1) 845,135,593 596,705,241

Accrued liabilities 284,274,252 243,695,897

Advances from customers 73,010,759 106,464,326

Securities from contractors

- interest free and repayable on completion of contracts 2,893,232 2,935,959

Retention money 18,918,528 5,844,343

Income tax deducted at source 12,459,832 5,970,928

Unclaimed dividend 20,678,020 16,964,302

Workers ' profit participation fund (Note 7.2) 133,588,242 45,795,817

Workers ' welfare fund 21,681,803 21,681,803Fair value of forward exchange contracts 3,934,388 47,606,647

Others (Note 7.3) 8,447,362 11,381,898

1,425,022,011 1,105,047,161

7.1 It includes Rupee s Nil (2012: Rupe es 3.649 million) d ue to related pa rties .

7.2 Workers ' profit participat ion fund

Balance as at 01 July 45,795,817 82,364,547Add: Interest for the year (Note 29) 7,255,187 2,075,907Add: Provis ion for the year (Note 27) 133,588,242 45,795,817

186,639,246 130,236,271

Less : Payments during the year 53,051,004 84,440,454

Balance as at 30 June 133,588,242 45,795,817

7.2.1 The Company retains workers' profit participation fund for its business operations till the date of allocation to workers.

Interes t is pa id at p rescribe d rate und er the Comp anies Profit (Workers' Participation) Act, 1968 o n funds utilized by

the Company till the date of allocation to workers.

7.3 It includes Rupees Nil (2012: Rupees 0.904 million) due to Nishat Chunian Power Limited - subsidiary company, which is in

the ordinary course of bus ines s a nd is interest free .

6.4 Long term loans and privately placed term finance certificates are secured by first joint pari passu hypothecation and equitable

mortgage on all present and future fixed assets of the Company to the extent of Rupees 6,150.242 million (2012: Rupees

7,640 million) and ranking charge on all present and future fixed assets of the Company to the extent of Rupees 3,333.334

million (2012: Rupe es 1,267 million).

6.5 Long term musharaka are secured by first joint pari passu hypothecation and equitable mortgage on all present and future

fixed as se ts o f the Company to the extent of Rupee s 610.833 million (2012: Rupe es 801.667 million) and ranking cha rge o n

all pres ent a nd future fixed a ss ets of the Comp any to the e xtent of Rupee s 480 million (2012: Rupe es Nil).

2013Rupees

2012Rupees

8 . AC CRUED MAR K-UP

Long term financing 72,609,023 70,616,125

Short term borrowings 91,640,526 73,855,144

164,249,549 144,471,269



42/114


43/114

April 2011. Through such o rder, a s ignifica nt relief was e xtende d to the Compa ny, however, the Compa ny has further

assailed the matter before ATIR so as the issues decided by CIR(A) against the Company are further contested. The

Compa ny's a pp ea l has not yet been taken up for hearing b y ATIR. The Co mpa ny considers that its s tance is ba se d

on reasonable grounds and appeal is likely to succeed. Hence, no provision for taxation amounting to Rupees 26.613

million (2012: Rupees 26.613 million) has been recognized in these financial statements based on advice of the tax

counsel. Further, the Company has also impugned selection of its tax affairs for audit in terms of section 177 of the

Inco me Tax Ordinanc e, 2001 for tax year 2009 in Hono urab le Lahore High Court, Lahore through writ pe tition. The tax

aud it authorities have b ee n res trained from proce ed ing with the a udit.

vii) While framing as se ss ment orders of Umer Fabrics Limited (merged entity) for the ass es sme nt years 1998-99, 2000-01, 2001-02 and 2002-03, the Officer Inland Revenue disallowed c ertain expense s on p ro-rata ba sis a nd disagree d

on certain additions. The Company being aggrieved filed appeals with the Commissioner Inland Revenue (Appeals)

which was decided in Company's favour against which the department preferred an appeal to Appellate Tribunal Inland

Revenue (ATIR). ATIR decided the ca se in favour of the Comp any. The de pa rtment has filed an appe al before Honourable

Lahore High Court. No provision against these disallowance s a nd a dd ition ha s b ee n ma de in the financ ial statements

as the management is confident that the matter would be settled in the Company's favour. If the decision of ATIR is

not upheld, the provision for taxation amounting to Rupees 17.157 million (2012: Rupees 17.157 million) would be

required.

viii) As a res ult of withholding tax aud it for the tax year 2006, the Deputy Commissioner Inland Revenue (DCIR) has raise d

a d ema nd o f Rupe es 32.156 million unde r sec tions 161 and 205 of the Income Tax Ordinanc e, 2001. The Comp any is

in ap pe al before ATIR as its a pp ea l be fore CIR(A) was unsucc es sful. The Co mpa ny expects a favourable outcome o f

the appeal based on advice of the tax counsel. The Company has also challenged the initiation of proceedings, under

se ction 161 and 205 of the Income Tax Ordinanc e, 2001 p ertaining to tax yea rs 2007, 2008, 2009, 2010, 2011 a nd 2012

in the Honourable Lahore High Court, Lahore through a writ petition. The Department has been restrained from passing

any ad verse o rder till the d ate o f next hea ring. The ma nag eme nt of the Company be lieves that the expec ted favourable

outcome of its a pp ea l before ATIR, in res pe ct of tax yea r 2006 on sa me iss ues , will dispos e o f the initiation o f thes e

proceedings.

ix) The Com pa ny has filed a n appe al before CIR(A) aga inst the orde r of Add itiona l Commiss ione r Inland Revenue (ACIR)

ACIR has p as sed an o rder und er se ction 122(5A) of the Inco me Tax Ordinan ce , 2001 for tax year 2011 whereb y a

dema nd o f Rupee s 6.822 million has bee n raised . No provision aga inst the de mand has bee n mad e in thes e financia

statements as the Company is hopeful of a favourable outcome of appeal based on opinion of the legal advisor

x) The Deputy Collector (Refund Gold) by order dated 16 May 2007 rejected the input tax claim of the Compa ny, for

the month of June 2005, a mounting to Rupe es 1.604 million incurred in zero rated loca l supp lies of textile and articles

thereof on the ground s that the input tax claim is in co ntravention o f SRO 992(I)/2005 which s tates that no registered

pe rson eng ag ed in the export of specified goods (including textile and articles the reof) shall, either through zero-rating

or otherwise , be e ntitled to ded uct or reclaim input tax paid in res pe ct of stoc ks of such good s a cqu ired up to 05 June

2005, if not use d for the p urpose of exports mad e up to the 31 Decembe r 2005. The a ppe al of the Compa ny before

Appellate Tribuna l Inland Revenue (ATIR) was suc cess ful and input tax claim of the Company is expe cted to be proce ss ed

after nec es sa ry verifica tion in this reg ard. Pend ing the o utcome of verifica tion no provision for inad missible inpu t tax

has been recognized in these financial statements.

xi) Post dated che ques have been issued to custom authorities in resp ect of duties a mounting to Rupee s 154.347 million

(2012: Rupe es 58.709 million) on imported material availed on the ba sis of cons umption and export plans . In the e vent

the docume nts of exports a re not provided on due dates , cheque iss ued a s s ecurity sha ll be e ncas hable.

10.2 Commitments

i) Contracts for capital expenditure a mounting to Rupees 913.661 million (2012: Rupee s 282.462 million).

ii) Letters of credit other than for capital expe nditure amounting to Rupee s 197.348 million (2012: Rupe es 29.113 million)

iii) Outstand ing foreign currenc y forward contracts of Rupe es 3,350.847 million (2012: Rupe es 2,892.672 million).



44/114

At 30 June 2011

Cost 188,776,332 1,696,591,384 8,604,024,330 30,352,951 181,741,104 138,494,474 56,049,272 47,245,491 111,343,820 11,054,619,158 6,983,316Ac cumula te d de pre cia tio n / amo rtiza tio n -))))) (736,794,498) (3 ,883,772,048) (15,303,317) (104,085,897) (72,979,807) (26,631,262) (16,922,284) (45,982,020) (4,902,471,133) (3,018,295)

Net b ook value 188,776,332 959,796,886 4,720,252,282 15,049,634 77,655,207 65,514,667 29,418,010 30,323,207 65,361,800 6,152,148,025 3,965,021

Year ende d 30 June 2012

Opening net book value 188,776,332 959,796,886 4,720,252,282 15,049,634 77,655,207 65,514,667 29,418,010 30,323,207 65,361,800 6,152,148,025 3,965,021

Additions 20,833,541 35,857,024 252,310,076 -))))) 21,556,542 20,343,941 2,731,495 5,470,590 25,095,223 384,198,432 -)))))

Disposals:

Cost -))))) -))))) (22,796,425) -))))) -))))) -))))) -))))) (3 59 ,1 22 ) (1 4, 13 0, 17 3) (3 7,2 85 ,7 20 ) (1 ,3 19 ,0 00 )

Accumulated depreciation -))))) -))))) 15,392,925 -))))) -))))) -))))) -))))) 126,584 7,261,891 22,781,400 1,319,000

-))))) -))))) (7,403,500) -))))) -))))) -))))) -))))) (232,538) (6,868,282) (14,504,320) -)))))

Depreciation / amortization charge -))))) (4 8,639 ,855 ) (462 ,136 ,4 83) (1,46 2,61 0) (8,930 ,885 ) (7,3 66,7 97) (3 ,057,9 31) (3 ,319 ,1 23) (1 4,144 ,957 ) (549,0 58,6 41) (1,69 9,295 )

Closing net book value 209,609,873 947,014,055 4,503,022,375 13,587,024 90,280,864 78,491,811 29,091,574 32,242,136 69,443,784 5,972,783,496 2,265,726

At 30 June 2012

Cost 209,609,873 1,732,448,408 8,833,537,981 30,352,951 203,297,646 158,838,415 58,780,767 52,356,959 122,308,870 11,401,531,870 5,664,316

Ac cu mu la te d d e pre cia tio n / a mo rtiz atio n - (7 85 ,4 34 ,3 53 ) (4 ,3 30 ,5 15 ,6 06 ) (1 6, 76 5, 92 7) (1 13 ,0 16 ,7 82 ) (8 0, 34 6, 60 4) (2 9, 68 9, 19 3) (2 0, 11 4,8 23 ) (5 2, 86 5, 08 6) (5 ,4 28 ,7 48 ,3 74 ) (3 ,3 98 ,5 90 )

Net book value 209,609,873 947,014,055 4,503,022,375 13,587,024 90,280,864 78,491,811 29,091,574 32,242,136 69,443,784 5,972,783,496 2,265,726

Year ende d 30 June 2013

Opening net book value 209,609,873 947,014,055 4,503,022,375 13,587,024 90,280,864 78,491,811 29,091,574 32,242,136 69,443,784 5,972,783,496 2,265,726

Additions 370,043,524 24,931,067 110,871,634 -))))) 10,632,596 1,615,546 1,906,888 7,659,019 14,119,569 541,779,843 -)))))

Disposals:

Cost -))))) -))))) -))))) -))))) -))))) -))))) (123,900) (1,017,480) (9,529,506) (10,670,886) -)))))

Accumulated depreciation -))))) -))))) -))))) -))))) -))))) -))))) 7,141 345,347 5,487,701 5,840,189 -)))))

-))))) -))))) -))))) -))))) -))))) -))))) (116,759) (672,133) (4,041,805) (4,830,697) -)))))

Depreciation / amortization charge -))))) (4 7,677 ,178 ) (436 ,263 ,6 95) (1,31 6,35 0) (9,508 ,787) (7,9 19,29 9) (2 ,9 78,5 75) (3 ,554 ,1 93) (1 3,767 ,341 ) (522,9 85,4 18) (1,69 9,295 )

Closing net b ook value 579,653,397 924,267,944 4,177,630,314 12,270,674 91,404,673 72,188,058 27,903,128 35,674,829 65,754,207 5,986,747,224 566,431

At 30 June 2013

Cost 579,653,397 1,757,379,475 8,944,409,615 30,352,951 213,930,242 160,453,961 60,563,755 58,998,498 126,898,933 11,932,640,827 5,664,316

Ac cumula te d de pre cia tio n / amo rtiza tio n -))))) (833,111,531) (4 ,766,779,301) (18,082,277) (122,525,569) (88,265,903) (32,660,627) (23,323,669) (61,144,726) (5,945,893,603) (5,097,885)

Net book value 579,653,397 924,267,944 4,177,630,314 12,270,674 91,404,673 72,188,058 27,903,128 35,674,829 65,754,207 5,986,747,224 566,431

Annual rate of depreciation /amortization (%) 5 10 10 10 10 10 10 20 30

11.1 Reconciliations of carrying amou nts of ope rating fixed as se ts a nd intangible a ss et at the beg inning and at the e nd of the

year are as follows:

Description Freeholdland

Buildings onfreehold land

Plant andmachinery

Standbyequipment

Electricinstallations

Factoryequipment

Furniture, fixtureand equipment

Officeequipment

Motorvehicles Total

Computersoftware

Intangibleasset

Operating fixed ass ets

2013Rupees

2012Rupees

11. F IXED ASSETS

Prop erty, plant and e quipmen t

Operating fixed assets (Note 11.1) 5,986,747,224 5,972,783,496

Capital work-in-progress (Note 11.2) 1,648,294,714 101,499,938

7,635,041,938 6,074,283,434

Intangible asset:

Computer software (Note 11.1) 566,431 2,265,726

7,635,608,369 6,076,549,160

............................................................Rupees............................................................



45/114

11.1.1 Detail of operating fixed a ss ets, e xcee ding the book value o f Rupe es 50,000, disp osed of during the year is as follows

Office eq uipment

Dell Laptop

Dell Laptop

Switches

Apple IPhone 4S

Apple IPhone 4SMobile-Samsung Galaxy

Dell Laptop

Motor vehicles

Suzuki Cultus LEC-08-5721

Honda Civic LEE-07-4262

Toyota Coro lla LEA-10-5458

Suzu ki Alto LEC-6902

Suzuki Cultus LEB-07-8095

Suzuki Mehran LEC-07- 6987

Toyota Coro lla LED-07-3370

Suzuki Cultus LED-08-2091

Toyota Corolla LEJ-07 -5116

Suzuki Cultus LEC-07-3803

Furniture, fixture

and equipment

Double Bed With Mattress

Aggreg ate of other items o f

opera ting fixed as se ts with

individual boo k values n ot

exceeding Rupees 50,000

1

1

1

1

11

1

1

1

1

1

1

1

1

1

1

1

1

12

79,793

73,575

291,029

67,275

85,80853,500

76,100

765,000

1,402,160

1,724,897

578,100

615,120

398,770

1,316,200

683,579

1,367,660

615,120

64,000

413,200

10,670,886

(15,649)

(12,314)

(146,293)

(3,868)

(7,699)(892)

(12,709)

(170,786)

(939,214)

(708,772)

(244,209)

(414,581)

(266,799)

(926,677

Documents

Nishat Mill