HIRA TEXTILE MILLS LIMITED

1 HIRA TEXTILE MILLSLIMITEDA nnual Report | 2016 HIRA TEXTILE MILLS LIMITEDCONTENTS Company Informa onNo ce of Annual General Mee ngVision And Mission StatementsDirectors ReportSix Years Financial SummeryPa ern of Share HoldingStatement of Compliance with the Code of Corporate Governance Review Report To The Members On Compliance With Code Of Corporate GovernanceAuditor s Report To The MembersBalance SheetCash Flow StatementStatement of Changes in EquityProxy FormProfit and Loss Account020305060910121617182022232451 HIRA TEXTILE MILLSLIMITEDS tatement of Other Comprehensive Income21 Notes To The Financial StatementsHIRA TEXTILE MILLSLIMITEDHira Tex le MILLS Limited02 COMPANY INFORMATIONCHAIRMANMr. Muhammad Umar VirkCHIEF EXECUTIVEMr. Nadeem Aslam Bu BOARD OF DIRECTORSMr. Muhammad Umar VirkMr. Nadeem Aslam Bu Mr.

2 Umair UmarMrs. Shahnaz UmarMrs. Fa ma NadeemMrs. Sadiya UmairMr. Shaukat Nazir Malik (Independent Director)AUDIT COMMITTEEMr. Shaukat Nazir Malik ChairpersonMr. Umair Umar MemberMrs. Shahnaz Umar MemberHUMAN RESOURCE & REMUNERATION COMMITTEEMrs. Sadiya Umair ChairpersonMr. Nadeem Aslam Bu MemberMrs. Fa ma Nadeem MemberCOMPANY SECRETARY & CHIEF FINANCIAL OFFICERMr. Saeed Ahmad KhanAUDITORSD eloi e Yousaf Adil (Chartered Accountants)134-A, Abu Bakar Block, New Garden Town, LahoreTAX ADVISERKPMG Taseer Hadi & Co. (Chartered Accountants)Servis House, 2nd Floor, 2 Main Gulberg, Jail Road, AUDITORSR ahman Sarfaraz Rahim Iqbal Rafiq (Chartered Accountants)Member of Russel BadfornInterna , Faisal Town, ADVISERS alman Akram Mohammad Akram & Co., Advocates & Legal Consultants33-C Main Gulberg OF THE COMPANYV ision Consul ng C , 1st floor, LDA Flats, Lawrance Road : + 92 42 36283096-97 REGISTERED OFFICE44-E-1,Gulberg III, : + 92 42 3571 4191-94,Fax: + 92 42 3571 0048W.

3 KM Manga Raiwind Road Raiwind District Company Informa onNo ce of Annual General Mee ngVision And Mission StatementsDirectors ReportSix Years Financial SummeryPa ern of Share HoldingStatement of Compliance with the Code of Corporate Governance Review Report To The Members On Compliance With Code Of Corporate GovernanceAuditor s Report To The MembersBalance SheetCash Flow StatementStatement of Changes in EquityProxy FormProfit and Loss Account020305060910121617182022232451 HIRA TEXTILE MILLSLIMITEDS tatement of Other Comprehensive Income21 Notes To The Financial StatementsHIRA TEXTILE MILLSLIMITEDHira Tex le MILLS Limited02 COMPANY INFORMATIONCHAIRMANMr. Muhammad Umar VirkCHIEF EXECUTIVEMr. Nadeem Aslam Bu BOARD OF DIRECTORSMr. Muhammad Umar VirkMr. Nadeem Aslam Bu Mr. Umair UmarMrs. Shahnaz UmarMrs. Fa ma NadeemMrs.

4 Sadiya UmairMr. Shaukat Nazir Malik (Independent Director)AUDIT COMMITTEEMr. Shaukat Nazir Malik ChairpersonMr. Umair Umar MemberMrs. Shahnaz Umar MemberHUMAN RESOURCE & REMUNERATION COMMITTEEMrs. Sadiya Umair ChairpersonMr. Nadeem Aslam Bu MemberMrs. Fa ma Nadeem MemberCOMPANY SECRETARY & CHIEF FINANCIAL OFFICERMr. Saeed Ahmad KhanAUDITORSD eloi e Yousaf Adil (Chartered Accountants)134-A, Abu Bakar Block, New Garden Town, LahoreTAX ADVISERKPMG Taseer Hadi & Co. (Chartered Accountants)Servis House, 2nd Floor, 2 Main Gulberg, Jail Road, AUDITORSR ahman Sarfaraz Rahim Iqbal Rafiq (Chartered Accountants)Member of Russel BadfornInterna , Faisal Town, ADVISERS alman Akram Mohammad Akram & Co., Advocates & Legal Consultants33-C Main Gulberg OF THE COMPANYV ision Consul ng C , 1st floor, LDA Flats, Lawrance Road : + 92 42 36283096-97 REGISTERED OFFICE44-E-1,Gulberg III, : + 92 42 3571 4191-94,Fax: + 92 42 3571 0048W: KM Manga Raiwind Road Raiwind District TEXTILE MILLSLIMITEDA nnual Report 201603 NOTICE OF ANNUAL GENERAL of tax deduc on for filer of income tax of tax deduc on for non-filers of income tax / CDC ID/Account onal Tax No.

5 (in case of individual) income tax return for year 2014 filed (Yes or No)No ce is hereby given that 25th annual general mee ng of the members of Hira Tex le MILLS LIMITED will be held on Monday, October 31, 2016 at AM at the registered office of the company 44 E/1 Gulberg III, Lahore, to transact the following: 1. To confirm the minutes of the last General Mee ng. 2. To receive and adopt the audited accounts of the company for the year ended on June 30, 2016 together with the Directors and auditor's reports To appoint auditors and fix their remunera on. The re ring auditors M/S Deloi e Yousaf Adil Chartered Accountants, being eligible offer themselves for SPECIAL BUSINESS: To consider and, if thought fit, Pass the following Special Resolu on in terms of Sec on 208 of The Companies Ordinance 1984,with or without amendments.

6 "RESOLVED THAT the Company be and is hereby authorized to make temporary loans/advances from me to me to the extent of Rs. 250,000,000/- (Rupees Two Hundred Fi y Million only) to Hira Terry MILLS Ltd an associated Company. "FURTHER RESOLVED THAT the Chief Execu ve of the Company be and is hereby authorized to undertake and make the above temporary loans/advances as short term financing on the terms and condi ons given in the statement under Sec on 160(1) (b) annexed herewith5. To transact any other business with the permission of the Chair.(By the order of the Board)Saeed Ahmad KhanCompany SecretaryLahore: October 08, 2016 Notes1- The statement under sec on 160(1) (b) of the Companies Ordinance, 1984, read with 865 (1)/ 2000 dated December 6, 2000 issued by SECP pertaining to the Special Business is annexed with this no ce to the The Share Transfer Books of the Company will remain closed from October 24, 2016 to October 31, 2016 (both days inclusive).

7 3- A member en tled to a end and vote at the General Mee ng may appoint any person as proxy to a end and vote instead of him/her. No person other than a member shall act as An instrument appoin ng a proxy and the power of a orney or other Authority (if any) under which it is signed or a notarially cer fied copy of such power or authority, in order to be valid, must be deposited at the registered office of the company at least 48 hours before the me of the mee ng and must be duly stamped, singed and Members who have not submi ed copy of valid CNIC are once again advised to submit the same without further delay to ensure compliance with the Securi es and Exchange Commission of Pakistan (SECP) No fica on (1)2014 dated January 10, 2014 read with No fica on 831(1)2012 dated July 5, The account holders of CDC are requested to bring their original NI/Passport for the purpose of iden fica on at the mee As directed by the SECP vide Circular No.

8 18 of 2012 dated June 5, 2012, we once again give the opportunity to those shareholders who have not yet provided mandate informa on, to authorize the company to directly credit the cash dividend, if any, declared by the company in future, in their respec ve bank account instead of issuing a dividend warrant by providing their dividend mandate, in case of book entry securi es in CDS, to respec ve CDS par cipants and in case of physical share to Company's Independent Share Registrar. Copy of dividend mandate from may be downloaded from Company's website In compliance with direc ves issued by the Securi es and Exchange Commission of Pakistan and / or Federal Board of Revenue from me to me. Shareholders who have not yet provided their dividend mandate informa on and / or CNIC and / or NTN (as the case may be) are requested to provide the same at the earliest as follows: The shareholders who hold Company Shares in Physical form are requested to submit the above informa on to the Share Registrar.

9 Shareholders maintaining their shareholdings under Central Depository system (CDS) are advised to submit the above informa on directly to relevant par cipant / CDC Investor Account Service Members are also requested to update their tax paying status (Filler/Non-Filer) to the Company Share Registrar. The above informa on may please be provided as follows. This would enable us to process future dividend payments if any in accordance with the tax payment status of the members pursuant to the provisions of Finance Act,2015 effec ve July 1,2015 whereby the rates of deduc on of income tax under sec on 150 of the income Tax Ordinance, 2001 from dividend payment have been revised as follows:9- The direc ve of SECP contained in SRO 787(1) 2014 dated September 8, 2014, whereby Securi es and Exchange Commission of Pakistan (SECP) has allowed companies to circulate annual balance sheet, profit and loss account, auditor's report and director's report etc.

10 (Audited Financial Statements) along with no ce of annual general mee ng (No ce) to its members by email are requested to provide their email addresses on registered address of the Company. CDC account holders are requested to provide their email addresses to the relevant member stock exchange and CDC. If maintaining CDC investor Members are requested to immediately inform of any change in their TEXTILE MILLSLIMITEDHira Tex le MILLS Limited04 STATEMENT OF MATERIAL FACTS UNDER SECTION 160 (1) (B)OF THE COMPANIES ORDINANCE, 1984 Hira Terry MILLS LIMITED is public LIMITED (unlisted) Company having assets of Rs. 4, millions with paid up capital of Rs. millions. The company manufactures and deals in all types of IN ASSOCIATED COMPANY(A) Maximum limit of running advance / temporary loan million to Hira Terry MILLS LIMITED in terms of sec on 208 was approved by the members for a period of two years on Oct 31, 2014 with a provision for extension of two years.