Annual 2017

ANNUAL REPORT 2017
Nishat Chunian Limited

Nishat (Chunian) Limited 1 2017
2017 2 Nishat (Chunian) Limited
BRIEF PROFILE
2016 Diversification into Retail Business
The Linen Company (TLC)
2015 Diversified into Cinema Business

NC Entertainment Private Limited
2014 46 MW Coal Based Power Plant
2013 Established a subsidiary company in

USA
2013 2 Spinning Mills acquired & a new spin-

ning mill started
2010 IPP commercial operations
2006 Diversified into Home Textiles
2005 Acquisition of 2 spinning Mills & 5th

Spinning Mill Started
2000 2nd Spinning mill started production
1998 Diversified into Weaving
1991 1st Spinning Mill Setup

CONTENTS
Company Information 04
Notice of Annual General Meeting 05
Chairpersons’ Review Report 08
Directors’ Report 11
Directors’ Statement 18
Financial Highlights 20
Statement of Compliance with the Code of Corporate Governance 22
Review Report to the Members on Statement of Compliance
with Best Practices of Code of Corporate Governance 24
Auditors’ Report 25
Nishat (Chunian) Limited – Financial Statements
Balance Sheet 26
Profit and Loss Account 28
Statement of Comprehensive Income 29
Cash Flow Statement 30
Statement of Changes in Equity 31
Notes to the Financial Statements 32
Pattern of Shareholding 74
Catagories of Shareholders 76
Consolidated Financial Statements
Directors’ Report 80
Auditors’ Report 81
Balance Sheet 82
Profit and Loss Account 84
Statement of Comprehensive Income 85
Cash Flow Statement 86
Statement of Changes in Equity 87
Notes to the Consolidated Financial Statements 88
Forms 141

COMPANY INFORMATION
Board of Directors: Bankers to the Company:

Mrs. Farhat Saleem (Chairperson) Allied Bank Limited
Mr. Shahzad Saleem (Chief Executive) Askari Bank Limited
Mr. Zain Shahzad Al Barka Bank (Pakistan) Limited
Mr. M. Imran Rafiq (Nominee NIT) Bank Alfalah Limited
Mr. Aftab Ahmad Khan Bank Islami Pakistan Limited
Mr. Muhammad Ali Zeb JS Bank Limited
Mr. Kamran Rasool Dubai Islamic Bank Pakistan Limited
Faysal Bank Limited
Audit Committee: Habib Bank Limited
Mr. M. Imran Rafiq (Chairman) Habib Metropolitan Bank Limited
Mr. Zain Shahzad (Member) Industrial and Commercial Bank of China (ICBC)
Mr. Muhammad Ali Zeb (Member) Meezan Bank Limited
National Bank of Pakistan
HR & Remuneration Committee: MCB Bank Limited
Mrs. Farhat Saleem (Chairperson) Pak Kuwait Investment Company (Private) Limited
Mr. Zain Shahzad (Member) Standard Chartered Bank Pakistan Limited
Mr. Kamran Rasool (Member) SAMBA Bank Limited
Soneri Bank Limited
CFO / Company Secretary: The Bank of Punjab
Mr. Babar Ali Khan United Bank Limited
Head of Internal Audit: Auditors:

Mr. Faqir Syed Ameer Abbas Riaz Ahmad & Company
Chartered Accountants
Mills:
Spinning 1, 4, 5, 7 & 8 Registered & Head Office:
49th Kilometre, Multan Road, 31-Q, Gulberg-II,
Bhai Pheru, Tehsil Chunian, Lahore, Pakistan.
District Kasur. Phone : 042-35761730-39
Fax : 042-35878696-97
Dyeing & Printing Web : www.nishat.net
4th Kilometre, Manga Road,
Raiwind. Share Registrar:
Hameed Majeed Associates (Pvt) Limited
Spinning 2, 3, 6 & Weaving 1st Floor, H.M. House
49th Kilometre, Multan Road, 7-Bank Square, Lahore
Kamogal, Tehsil Pattoki, Ph: 042-37235081-2 Fax: 042-37358817
District Kasur.

NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that 28TH Annual General Meeting of the Shareholders of Nishat (Chunian) Limited (the
“Company”) will be held on 23rd October 2017 at 10:45 A.M. at Registered Office, 31-Q, Gulberg – II, Lahore
to transact the following business:
ORDINARY BUSINESS:
1. To confirm the minutes of the last Annual General Meeting held on October 31, 2016.
2. To receive, consider and adopt audited unconsolidated and consolidated financial statements of the Company
for the year ended 30 June 2017 together with Directors’ and Auditors’ reports thereon.
3. To approve a final cash dividend @27.50% (i.e. Rs.2.75 per share) as recommended by the Board of
Directors.
4. To appoint auditors for the year ending 30 June 2018 and to fix their remuneration. The present Auditors M/s
Riaz Ahmad & Company, Chartered Accountants, retire and being eligible offer themselves for reappointment.
5. To transact any other business with the permission of the Chair.
By order of the Board

Lahore Babar Ali Khan
Dated: September 22, 2017 Company Secretary
NOTES:
1. Closure of Share Transfer Books
For attending of Annual General Meeting:
The Share Transfer Books of the Company will remain closed from 17-10-2017 to 23-10-2017 (both days inclusive)
for attending of Annual General Meeting.
For entitlement of 27.50% Final Cash Dividend:

The Share Transfer Books of the Company will remain closed from 13-11-2017 to 19-11-2017 (both days inclusive)
for entitlement of 27.50% Final Cash Dividend i.e. Rs.2.75 per share. Transfers Physical / CDS received at the
share registrar of the Company M/s Hameed Majeed Associates (Pvt) Ltd., H.M. House, 7-Bank Square, Lahore
upto Close of office timings on 10-11-2017 will be treated in time of entitlement of 27.50% Final Cash Dividend.
2. Participation in the Annual General Meeting

A member entitled to attend and vote at this meeting may appoint any other member as his/her proxy to attend
and vote on his/her behalf. The instrument appointing proxy must be received at the Registered Office of the
Company duly stamped and signed not later than 48 hours before the meeting.
CDC Account Holders will further have to follow the under mentioned guidelines as laid down in Circular No.1
dated January 26, 2000 issued by the Securities and Exchange Commission of Pakistan.
A. For Attending 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/her original Computerized National Identity Card (CNIC) or original passport at the time
of attending the meeting.
(ii) In case of corporate entity, the Board of Directors’ resolution / power of attorney with specimen signature of
the nominee shall be produced (unless it has been provided earlier) at the time of 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 account and their registration details are uploaded as per the Regulations, shall submit the proxy form
as per the above requirement.
(ii) The proxy form shall be witnessed by two persons whose names, addresses and CNIC Numbers shall be
mentioned on the form.
(iii) Attested copies of CNIC or Passport of the beneficial owners and the proxy shall be furnished with the proxy
form.

(iv)The proxy shall produce his / her original CNIC or original Passport at the time of the meeting.
(v) In case of corporate entity, the Board of Directors’ resolution / power of attorney with specimen signature shall
be submitted (unless it has been provided earlier) along with proxy form to the Company.
3. CNIC / NTN Number on Dividend Warrant (Mandatory)

As has already been notified from time to time, the Securities and Exchange Commission of Pakistan (SECP) vide
Notification S.R.O. 19(I)/2014 dated 10th January 2014 read with Notification S.R.O. 831(1)/2012 dated July 5, 2012
required that the Dividend Warrant(s) should also bear the Computerized National Identity Card (CNIC) Number of
the registered shareholder or the authorized person, except in case of minor(s) and corporate shareholder(s).
Henceforth, issuance of dividend warrant(s) will be subject to submission of CNIC (individuals) / NTN (corporate
entities) by shareholders.
4. Deduction of Income Tax from Dividend under Section 150 the Income Tax Ordinance, 2001 (Mandatory)
(i) Pursuant to the provisions of the Finance Act 2017 effective July 1, 2017, reforms has been made with regards to
deduction of income tax. For Cash Dividend, the rates of deduction of income tax, under section 150 of the Income
Tax Ordinance, 2001 have been revised as follows:
1. Rate of tax deduction for filer of income tax return 15%

2. Rate of tax deduction for non-filers of income tax return 20%
To enable the company to make tax deduction on the amount of cash dividend @ 15% instead of 20%, shareholders
whose names are not entered into the Active Tax-payers List (ATL) provided on the website of FBR, despite the fact
that they are filers, are advised to immediately make sure that that their names are entered in ATL, otherwise tax on
their cash dividend will be deducted @20% instead of 15%
(ii) Further, according to clarification received from Federal Board of Revenue (FBR), with-holding tax will be
determined separately on ‘Filer/Non-Filer status of Principal shareholder as well as joint-holder (s) based on their
shareholding proportions, in case of joint accounts.
In this regard all shareholders who hold shares jointly are requested to provide shareholding proportions of Principal
shareholder and Joint-holder(s) in respect of shares held by them to our Share Registrar, in writing as follows:
Company Folio/CDs Ac- Total Shares Principal Shareholder Joint Shareholder

Name count# Name and Shareholding Name and Shareholding
CNIC# Proportion CNIC# Proportion (No.
(No. of Shares) of Shares)
The required information must reach our Share Registrar within 10 days of this notice; otherwise it will be assumed
that the shares are equally held by Principal shareholder and Joint Holder(s).
(iii) For any query/problem/information, the investors may contact our share registrar M/s. Hameed Majeed
Associates (Pvt) Ltd., H.M. House 7-Bank Square, The Mall, Lahore at phone 042-37235081-2 or email at shares@
hmaconsultants.com
(iv) The corporate shareholders having CDC accounts are required to have their National Tax Number (NTN)
updated with their respective participants, whereas corporate physical shareholders should send a copy of their
NTN certificate to our share registrar M/s. Hameed Majeed Associates (Pvt) Ltd. The shareholders while sending
NTN or NTN certificates, as the case may be, must quote company name and their respective folio numbers.
5. Payment of Cash Dividend Electronically

In accordance with the provisions of section 242 of the Companies Act, 2017, dividend payable in cash shall only
be paid through electronic mode directly into the bank account designated by the entitled shareholders. SECP
Vide Circular No. 18 of 2017 dated August 01, 2017, has presently waived this condition till October 31, 2017. Any
dividend payable after this due date shall be paid in the manner prescribed only.
All shareholders are requested to provide the details of their bank mandate specifying:
(i) Title of Account:______________________________________
(ii) IBAN number :______________________________________
(iii) Bank Name :______________________________________
(iv) Branch Code, Name & Addresss:___________________________________________________________
(V) Signature of Shareholder:_______________________________
To the Company’s Share Registrar M/s Hameed Majeed Associates (Pvt) Ltd. Shareholders who hold shares with
Participants/ Central Depository Company of Pakistan (CDC) are advised to provide the bank mandate details as
mentioned above, to the concerned Participant / CDC.
If they so desires the shareholders have the option to seek the dividend mandate by using the standardized “Dividend
Mandate Form” available on Company’s website http://www.nishat.net.
6. Circulation of Annual reports through Digital Storage

Pursuant to the SECP’s notification S.R.O 471(I)/2016 dated 31st May, 2016, the shareholders of Nishat (Chunian)
Limited in its 27th AGM of the Company had accorded their consent for transmission of annual reports including
audited annual accounts, notices of AGM and other information contained therein of the Company through a CD/
DVD/USB instead of transmitting the same in hard copies. The shareholders who wish to receive hard copies of
the aforesaid documents may send to the Company Secretary / Share registrar, the standard request form provided
in the annual report and is also available on the Company’s website and the Company will provide the aforesaid
documents to the shareholders on demand, free of cost, within one week of such demand. The shareholders who
also intend to receive the annual report including the notice of meetings via email are requested to provide their
written consent on the standard request form provided in the annual report and also available on the Company’s
website.
7. Unclaimed Dividend
Unclaimed dividends of the shareholders, who by any reason, could not claim their dividend, if any, are advised
to contact our Share Registrar M/s. Hameed Majeed Associates (Pvt) Ltd., H.M. House 7-Bank Square, The Mall,
Lahore, to collect/enquire about their unclaimed dividend, if any.
In compliance with Section 244 of the Companies Act, 2017, after having completed the stipulated procedure,
all such dividend and shares outstanding for a period of 3 years or more from the date due and payable shall be
deposited to the credit of Federal Government.
8. Video Conference Facility

Pursuant to the provisions of the Companies Act, 2017, the shareholders residing in a city other than Lahore, and
holding at least 10% of the total paid up share capital may demand the Company to provide the facility of video-link
for participating in the meeting. The demand for video-link facility shall be received by the Share Registrar at the
address given hereinabove at least 7 days prior to the date of the meeting on the Standard Form provided in the
annual report and also available on the company’s website.
9. E-Voting
The Company is in the process of setting up the e-voting facility in accordance with the requirements of the Companies
(E-Voting) Regulations, 2016 and in this connection, a special resolution for alteration of the Articles of Association
to allow e-voting facility was passed by the members. However, the e-voting facility cannot be made available to the
members for this meeting as other mandatory conditions prescribed under the aforesaid Regulations including the
availability of accredited intermediary could not be satisfied.
10. Change of Address

Members are requested to notify any change in their addresses immediately. Shareholders are requested to provide
above mentioned information/documents to (i) respective Central Depository System (CDS) Participants and (ii) in
case of physical securities to the Share Registrar of the Company.
11. The Company has placed the audited unconsolidated and consolidated financial statements for the year ended
June 30, 2017 along with Auditors and Directors Reports thereon on its website: www.nishat.net

CHAIRPERSONS’ REVIEW
It gives me immense pleasure to present the annual report and financial statements for the year ended 30th
June 2017 which has shown an increased revenue as well as profitability. This has been made possible
through the persistent commitment of the Management which is evident as the textile industry has not
witnessed considerable growth or revival in the current year.
The BOD, in its meeting held on September 22nd, 2017 deliberated on the challenges faced by the Company
which includes operating in an environment which is faced by stringent Government regulations/taxes,
stuck up income and sales tax refunds, higher cost of raw materials, poor quality of cotton and unavailability
of power.
I would like to share some of the investments made during the course of financial year 2016-17. In the
Spinning division, a total of 53,664 new spindles have been added by replacing 40,608 old spindles thereby
increasing the total number of spindles to 222,708. In the Weaving division, 99 new looms have been added
by replacing 97 old looms leading to a total number of 363 looms. Also, the value-added segment of the
company added a mercerizing range and a stenter in the Dyeing division. The Home Textiles division has
also added a digital printing machine which has doubled the existing capacity.
On behalf of the board,
Mrs. Farhat Saleem

Chairperson
Date: September 22, 2017

Growing Ingeniously

DIRECTORS’ REPORT
The Company’s operations remained profitable increase in exports of Home Textile Divisions,
with significant increase in sales during the fiscal efficient tax planning and prudent investment
year despite dwindling profitability in the textile decisions. Financial figures of the company over
sector against decline in growth as witnessed in the last seven years show steady and durable
the overall industry. Our textile business faced growth. Our net sales rose to Rs. 29.8 billion in
a number of challenges where both the demand 2017 from Rs. 25.8 billion in 2016, while there is a
and margins fell considerably. The company has notable increase in total assets as well.
cemented its profitable track record by declaring
profit after tax of 5.4% of sales as compared to We are pleased to announce the audited results
5.1% last year. The favourable effect on profitability for the year ended June 30, 2017.
can be attributed to efficient cost management
through revamping of old machinery, significant
YEAR AT A GLANCE
Revenue: Rs. 29.8 Billion (+15.6%)
Profit from Operations Rs. 2.87 Billion (+8.7%)
Net Profit for the Year Rs. 1,621 Million (+22%)
For the Year Ended

Financial Highlights
2017 2016
Sales (Rs.) 29,815,994,272 25,799,121,553
Gross Profit (Rs.) 2,899,793,399 2,455,517,774
Profit After Taxation (Rs.) 1,621,331,852 1,328,774,693
Gross Profit % 9.7% 9.5%
Profit After Taxation % 5.4% 5.1%
Earnings Per Share (Rs.) 6.75 5.59

PROFITABILITY
Revenue earned during this year was Rs. 29.8 taken by the Government.
billion, up by 15.6% from last year. The Spinning
division significantly contributed towards this A major component of other operating income
increase by increasing local market share due to generated during the year was dividend received
better margins available. The gross profits and from our subsidiary company. We realised at this
net profits for this period increased from 9.5% and juncture that our strategic decision to diversify
5.1% to 9.7% and 5.4% respectively over the last had been a very prudent measure to balance the
year majorly due to the export package initiative cyclical and volatile textile industry.
APPROPRIATIONS
The Board of Directors of the Company has
proposed to pay Rs. 2.75 per ordinary share cash
dividend on its meeting held on September 22,
2017.
INVESTMENTS
Significant investments were made during the year in all textile segments for capacity enhancement
and improvement in operational efficiency. A summarized overview is given below:
Business Machinery Added Investment

Segment (per annum) (PKR in million)
Spinning ∞ 33 ring frames 53,664 spindles added
∞ 11 Cards out of which 40,608 1,914
∞ 2 Blow room lines were replacements
Weaving ∞ 97 looms 18,395,131 yards per
replaced 50 picks 500
∞ 2 looms added
s ∞ 1,560,000 meters
∞ Stenter 500,000 meters 340
∞ Mercerizing 500,000 meters
Range
SEGMENT WISE REVENUE

Spinning still remains the main stream of revenue
generating business for NCL. All three areas of the
business have shown tremendous growth in terms
of revenue. Major drivers being improved margins
available in local market for Spinning and in export
market for Home Textile & Weaving divisions.
Home Textile Weaving Spinning

SPINNING
This year the Spinning Division has experienced
profitability. Yarn sales have increased by almost
10% in total with around 42% local sales growth
over the last year. Raw materials cost increased
by almost 20% due to rise in cotton prices, both
local and imported. However, the industry was able
to pass on this increased cost to the local market
leading to its overall profitability. The Company
has fully revamped the back process and major
machinery in one of the two sick units acquired in
2013.
WEAVING
During the year under review, total sales have
increased by 14% as compared to last year. The
increase in sales, along with the support provided
by the Export Package of the government has
contributed positively to the company. This heavy
investment in state of the art machinery will enable
the company to boost its future profitability.

HOME TEXTILES
During the year under review, total sales have
increased by 12% as compared to last year. The
addition of digital printing provides a more diverse
product mix to the existing customer base as well
as the ability to serve a new customer segment.
The efficient power cost management by the
company and support from the export package
of the government has proved vital for the value
added sector.
The retail venture of the company ‘The Linen

Company’ (TLC) opened its first outlet in the
previous year and since then has opened 2 retail
outlets; one in Lahore and in Islamabad. The
company plans to further expand the number of
its retail outlets.
FUTURE OUTLOOK
The company has further diversified its portfolio on the cards to derive further economies of scale.
by establishing a 46 MW coal based power project The company is fully committed to automate the
and opening of two multiplex cinemas comprising conventional processes to reduce dependency on
of 11 screens under NC Entertainment (Private) manpower.
Limited (wholly owned subsidiary) thus emerging
as a unique conglomerate. This diversification will The next few years will see NCL fortify and integrate
generate additional revenues for the company, the benefits of the growth it has witnessed in the
both in shape of cost savings and dividend income. last few years. On the whole the future of the
company looks very encouraging. The Group is
After capacity enhancement of Weaving and Dyeing well placed to achieve further success and build
units, launch of further retail outlets under the shareholder value in the years ahead.
Company’s brand name TLC (The Linen Company)
are planned across the country. In the Spinning
division, up-gradation of the existing machinery is

CORPORATE SOCIAL RESPONSIBILITY
Social welfare and community service are integral which provides quality education for a nominal fee
part of our company’s vision. We add substantially for the underprivileged.
to the national exchequer through the payment of
various taxes, duties and levies and our export In addition to above, the sponsors of the company
earnings contribute considerably in stabilizing along with other philanthropists is in the process of
the country’s foreign exchange position. We are setting up a state-of-the art, not for profit hospital,
committed to provide our employees with a work Saleem Memorial Trust Hospital (SMTH). This
environment that is healthy, safe and conducive 350 bed hospital which is being constructed on
to continuous learning. We continue to employ 39 kanals of land will provide subsidized medical
people irrespective of ethnicities, cultures or treatment to the underprivileged. The grey structure
gender. We pride ourselves in being an equal will be completed by 2018 and the hospital will be
opportunity employer. As part of its philanthropic functional by 2019.
endeavours, the company donates to a school
RISK MANAGEMENT
The company’s overall risk management program of risk management, the company has designed
focuses on the unpredictability factors of industry adequate internal controls and standard operating
and economy in general and of business in procedures that are communicated to staff via
specific and seeks to minimize the potential various policies and procedural guidelines.
adverse effects on the profitability. The company These controls are also periodically reviewed by
provides principles for overall risk management, management and internal audit function.
as well as policies covering specific areas. As part
INTERNAL FINANCIAL CONTROLS

At Nishat Chunian Limited we have a robust the top management that these suggestions are
internal control and risk management system. The implemented properly and reviewed periodically.
Risk Management and internal control processes The Board is fully aware of its responsibilities
are designed to safeguard the company’s assets for establishing and managing an efficient and
and to appropriately address and/or mitigate effective internal control system. Thus these
emerging risks being faced by the company. The controls are properly implemented and reliance
company has an internal audit department which can be placed on their functionality.
is outsourced to a reputable audit firm which
carries out periodical audits and presents reports
to the Management highlighting loopholes and
suggesting areas of improvement. It is ensured by

ENVIRONMENTAL IMPACTS
The company regularly takes initiatives towards pollution load over our waste streams.
the improvement of environment and well-being of
society. Energy Conservation
Apart from making efforts to generate energy from
Environment Protection efficient sources, the company is also engaged in
We have a waste water treatment plant to protect exploring ways to conserve energy. Moreover, we
the environment from the hazardous effects have also conducted in-house energy conservation
of our industrial processes. We are constantly audit to conserve energy resources.
reviewing and implementing the proposals made
by the government in respect of environmental Occupational Safety and Health
protection. We carry out regular health and safety awareness
programs. The Company has also provided
The company has installed caustic recovery plant firefighting equipment and vehicles at all of its
to recover caustic from waste water. We also manufacturing facilities.
use ecofriendly dyes & chemicals that have less
STATEMENT OF COMPLIANCE
The requirements of the Code of Corporate adopted by the Company and have been duly
Governance as set out by the Pakistan Stock complied with. A statement to this effect is annexed
Exchange in its listing regulations have been to the report.
STATEMENT OF VALUE ADDITION

& DISTRIBUTION
Rs. In Millions
Wealth Generated
Total Revenue and other income 30,938
Bought in Material and services (23,971)
6,967
Wealth Distribution
To Society
Employee remuneration 2,378
To Government
Taxes, duties, development surcharge etc. 157
To providers of Finance
Finance Cost 1,095
Dividend 891
Retained for reinvestment and future growth

Depreciation, amortization and retained profit 2,446
6,967

CORPORATE GOVERNANCE
During the year your company remained compliant with the Code of Corporate Governance requirements.
Board of Directors Meetings:

During the year under review four (4) meetings were held. Attendance by each director is as follows:
Name of Directors No. of Meetings

Mrs. Farhat Saleem (Chairperson) 0
Mr. Shahzad Saleem (Chief Executive) 3
Mr. Zain Shahzad 0
Mr. Aftab Ahmad Khan 4
Mr. Kamran Rasool 3
Mr. Muhammad Ali Zeb 4
Mr. M. Imran Rafique (Nominee NIT) 4
Audit Committee
The audit committee is performing its duties in line with its terms of reference as determined by the
Board of Directors. Composition of the Audit Committee is as follows:
Mr. Muhammad Imran Rafique Chairman

Mr. Zain Shahzad Member
Mr. Muhammad Ali Zeb Member
HR & Remuneration Committee
In compliance with the COCG 2012, the Board of Directors of your Company has established a HR & R
Committee. Composition of the HR & R committee is as follows:
Mrs. Farhat Saleem Chairperson

Mr. Zain Shahzad Member
Mr. Kamran Rasool Member
Pattern of Shareholding
Pattern of shareholding as on June 30, 2017 is annexed.

DIRECTORS’ STATEMENT
In compliance with the Code of Corporate Governance, we give below statements on Corporate and Financial
Reporting framework.
1. The financial statements, prepared by the management of the Company, present fairly its state of affairs, the
results of its operation, cash flows and changes in equity.
2. Proper books of accounts of the Company have been maintained.
3. Appropriate accounting policies have been consistently applied in preparation of the financial statements and
accounting estimates are based on reasonable and prudent judgment.
4. International Accounting Standards, as applicable in Pakistan, have been followed in preparation of financial
statements and any departure there from has been adequately disclosed.
5. The system of internal control is sound in design and has been effectively implemented and monitored.
6. There are no significant doubts upon the Company’s ability to continue as a going concern.
7. There has been no material departure form best practices of corporate governance, as detailed in the listing
regulations.
Acknowledgement
The Directors of your company would like to show their appreciation of the support of respected customers, banks,
financial institutions, regulators and shareholders for achieving good results and hope that this cooperation and
support continues to grow in the future.
The directors of your Company would also like to express their deep appreciation for the services, loyalty and efforts
being continuously rendered by the employees of the Company and hope that they will continue to do so in the
future.
On behalf of the Board,
SHAHZAD SALEEM
Chief Executive

Lahore.

THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK

2017
Year 2012 2013 2014 2015 2016 2017
20
(Rupees in thousand)
Net Sales 18,616,943 21,213,244 22,799,758 23,780,455 25,799,122 29,815,994
Gross Profit 2,076,797 3,595,567 1,380,613 1,956,775 2,455,518 2,899,793
Distribuon, Admin and Other Expenses 685,999 821,778 892,998 940,051 1,003,589 1,148,822
Operang Profit plus Other Income 2,247,418 3,774,183 2,302,894 2,497,253 2,642,648 2,873,374
Nishat (Chunian) Limited

Finance Cost 1,353,445 1,243,262 1,375,292 1,353,886 1,029,629 1,094,723
Net Income 699,331 2,276,161 761,297 800,420 1,328,775 1,621,332
Current Assets 9,724,895 12,396,935 14,548,838 14,794,557 15,975,281 18,707,295

Total Assets 17,682,955 21,924,849 25,940,962 26,959,844 28,883,996 34,622,603
Current Liabilies 7,622,371 9,703,454 12,801,084 14,084,317 15,817,604 18,311,946
Total Equity 6,074,994 8,020,271 8,417,596 9,969,626 10,987,197 12,007,975
Cash Flows:
Net Cash generated from /(used in) Operang Acvies 298,230 (1,186,723) (2,457,485) 319,654 (479,208) (649,757)
Net Cash generated from/(used in) Invesng Acvies (969,208) (231,730) (933,413) 166,018 (374,500) (3,865,054)
Net Cash generated from /(used in) Financing Acvies 583,952 1,629,694 3,149,899 465,557 (67,092) 4,510,693
Earnings Per Share

Basic 3.88 11.37 3.80 4.00 5.59 6.75
Diluted 3.88 11.37 3.80 4.00 5.59 6.75
Dividends for the year 2.00 2.00 1.00 1.50 2.50 2.75
FINANCIAL HIGHLIGHTS
Dividend Payout Rao 0.47 0.16 0.26 0.38 0.45 0.41
Financial Measures:
ROE 11.51% 28.38% 9.04% 8.88% 12.09% 13.50%
ROI -9% 255% -27% -10% 3% 53%
Shareholders' Equity Rao 34% 37% 32% 37% 38% 35%
Net Debt Equity Rao (mes) 0.67 0.52 0.56 0.30 0.19 0.35
Interest Coverage Rao (mes) 1.66 3.04 1.67 1.84 2.57 2.62
P/E rao (Price per share / EPS) 4.48 5.26 11.16 9.19 6.34 7.60
Dividend Yield Rao (Cash dividend / Net Income) 0.47 0.16 0.26 0.38 0.45 0.41
Common Stock
Number of shares outstanding at year end 165,441,844 181,986,028 200,184,630 200,184,630 240,221,556 240,221,556
Break up value 36.72 44.07 42.05 49.80 45.74 49.99
3.00
Operang Profit plus 2.50
2.50 2.75
2.00
Other Income 2.00
1.50 2.00
(Rupees i n
4,000
mi l lion)
1.00 1.50
0.50 1.00
2,000
-
2012 2013 2014 2015 2016 2017
-
2012 2013 2014 2015 2016 2017 Dividends for the year
Total Assets Total Equity

15,000
40,000
(Rupees in million)
(Rupees in million)
30,000 10,000
20,000
5,000
10,000
- -
2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017
ROE ROI
255%
28.38%
13.50%
11.51%
9.04% 8.88% 53%
12.09% -27% 3%
-9% -10%
2012 2013 2014 2015 2016 2017
2012 2013 2014 2015 2016 2017
Break up value Net Debt Equity Rao (mes)
49.80 49.99
44.07 0.52
36.72 0.67
42.05 45.74 0.56
0.35
0.19
0.30
2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017

STATEMENT OF COMPLIANCE
WITH THE CODE OF CORPORATE GOVERNANCE (CCG)
FOR THE YEAR ENDED 30 JUNE 2017
This statement is being presented to comply with the Code of Corporate Governance (CCG) contained in Regulation
No. 5.19 of Listing Regulations of Pakistan Stock Exchange for the purpose of establishing a framework of good
governance, whereby a listed company is managed in compliance with the best practices of corporate governance.
The Company has applied the principles contained in the CCG in the following manner:
1. The Company encourages representation of independent non-executive directors and directors

representing minority interests on its Board of Directors. At present the board includes:
Category Names
Independent Directors Mr. Muhammad Imran Rafiq
Executive Directors Mr. Shahzad Saleem
Non Executive Directors Mrs. Farhat Saleem
Mr. Zain Shahzad
Mr. Kamran Rasool
Mr. Aftab Ahmad Khan
Mr. Muhammad Ali Zeb
The independent director meets the criteria of independence as required under clause 5.19.1 (b) of the CCG.
2. The directors have confirmed that none of them they were approved or amended has been maintained.
is serving as a director on more than seven listed com-
panies, including this Company. 7. All the powers of the Board have been duly ex-
ercised and decisions on material transactions, includ-
3. All the resident directors of the Company are ing appointment and determination of remuneration and
registered as taxpayers and none of them has defaulted terms and conditions of employment of the CEO, other
in payment of any loan to a banking company, a DFI or executive and non-executive directors, have been taken
an NBFI or, being a Broker of stock exchange, has been by the board.
declared as a defaulter by that stock exchange.
8. The meetings of the Board were presided over
4. No casual vacancy occurred on the board dur- by the Chairperson and, in her absence, by a director
ing the year. elected by the Board for this purpose and the Board
met at least once in every quarter. Written notices of
5. The Company has prepared a “Code of Con- the Board meetings, along with agenda and working
duct” and has ensured that appropriate steps have been papers, were circulated at least seven days before the
taken to disseminate it throughout the company along meetings, save in case of emergencies. The minutes
with its supporting policies and procedures. of the meetings were appropriately recorded and circu-
lated.
6. The Board has developed a vision/mission
statement, overall corporate strategy and significant 9. All the directors on the Board are fully conver-
policies of the Company. A complete record of particu- sant with their duties and responsibilities as directors of
lars of significant policies along with the dates on which corporate bodies. Three (3) directors of the company
are exempt from directors’ training program due to 14

years of education and 15 years of experience on the and that the firm and all its partners are in compliance
board of a listed company. Three (3) directors have with International Federation of Accountants (IFAC)
completed directors’ training program. Remaining direc- guidelines on code of ethics as adopted by the ICAP.
tor of the company will complete directors’ training pro-
gram within the time allowed by the Code. 20. The statutory auditors or the persons associat-
ed with them have not been appointed to provide other
10. The board has approved appointment of CFO, services except in accordance with the Listing Regula-
Company Secretary and Head of Internal Audit includ- tions and the auditors have confirmed that they have
ing their remuneration and terms and conditions of em- observed IFAC guidelines in this regard.
ployment.
21. The ‘closed period’, prior to the announcement
11. The Directors’ Report for this year has been of interim/final results, and business decisions, which
prepared in compliance with the requirements of the may materially affect the market price of company’s se-
CCG and fully describes the salient matters required to curities, was determined and intimated to directors, em-
be disclosed. ployees and Stock Exchange.
12. The financial statements of the Company were 22. Material/price sensitive information has been
duly endorsed by CEO and CFO before approval of the disseminated among all market participants at once
Board. through Stock Exchange.
13. The directors, CEO and executives do not hold 23. The company has complied with the require-
any interest in the shares of the company other than ments relating to maintenance of register of persons
that disclosed in the pattern of shareholding. having access to inside information by designated sen-
ior management officer in a timely manner and main-
14. The Company has complied with all the corpo- tained proper record including basis for inclusion or ex-
rate and financial reporting requirements of the CCG. clusion of names of persons from the said list.
15. The Board has formed an Audit Committee. It 24. We confirm that all other material principles en-
comprises of 3 members, of whom 2 are non-executive shrined in the CCG have been complied with.
directors and 1 is an independent director. The Chair-
man of the committee is an independent director.
SHAHZAD SALEEM
16. The meetings of the Audit Committee were held Chief Executive
at least once every quarter prior to approval of interim
and final results of the Company as required by the Date: September 22, 2017
CCG. The Terms of Reference of the committee have Lahore
been formed and advised to the committee for compli-
ance.
17. The Board has formed an HR and Remunera-

tion Committee. It comprises of 3 members all of whom
are non-executive directors. The chairman of the Com-
mittee is a non-executive director.
18. The Board has outsourced the internal audit

function to M/s EY Ford Rhodes who are considered
suitably qualified and experienced for the purpose and
are conversant with the policies and procedures of the
Company. The day to day operations of this function are
being performed and supervised by the Head of Internal
Audit, who is conversant with the policies and proce-
dures of the Company.
19. The statutory auditors of the Company have

confirmed that they have been given a satisfactory rat-
ing under the quality control review program of the ICAP,
that they or any of the partners of the firm, their spouses
and minor children do not hold shares of the company
REVIEW REPORT TO THE MEMBERS
ON THE STATEMENT OF COMPLIANCE WITH THE CODE OF CORPORATE
GOVERNANCE
We have reviewed the enclosed Statement of Compli- Based on our review, nothing has come to our attention
ance with the best practices contained in the Code of which causes us to believe that the Statement of Compli-
Corporate Governance (“the Code”) prepared by the ance does not appropriately reflect the Company’s com-
Board of Directors of NISHAT (CHUNIAN) LIMITED (“the pliance, in all material respects, with the best practices
Company”) for the year ended 30 June 2017 to comply contained in the Code as applicable to the Company for
with the Code contained in the Regulations of Pakistan the year ended 30 June 2017.
Stock Exchange Limited, where the Company is listed.
The responsibility for compliance with the Code is that of

the Board of Directors of the Company. Our responsibility
is to review, to the extent where such compliance can be RIAZ AHMAD & COMPANY
objectively verified, whether the statement of compliance Chartered Accountants
reflects the status of the Company’s compliance with the
provisions of the Code and report if it does not and to Name of engagement partner:
highlight any non-compliance with the requirements of Mubashar Mehmood
the Code. A review is limited primarily to inquiries of the
Company personnel and reviews of various documents Date: September 22, 2017
prepared by the Company to comply with the Code. Lahore
As a part of our audit of the financial statements we are

required to obtain an understanding of the accounting
and internal control systems sufficient to plan the audit
and develop an effective audit approach. We are not re-
quired to consider whether the Board of Directors’ state-
ment on internal control covers all risks and controls or
to form an opinion on the effectiveness of such internal
controls, the Company’s corporate governance proce-
dures and risks.
The Code requires the Company to place before the

Audit Committee and upon recommendation of the Au-
dit Committee, place before the Board of Directors for
their review and approval its related party transactions
distinguishing between transactions carried out on terms
equivalent to those that prevail in arm’s length transac-
tions and transactions which are not executed at arm’s
length price and recording proper justification for using
such alternate pricing mechanism. We are only required
and have ensured compliance of this requirement to the
extent of the approval of the related party transactions by
the Board of Directors upon recommendation of the Au-
dit Committee. We have not carried out any procedures
to determine whether the related party transactions were
undertaken at arm’s length price or not.

AUDITORS’ REPORT
TO THE MEMBERS
We have audited the annexed balance sheet of NISHAT iii) the business conducted, investments made
(CHUNIAN) LIMITED as at 30 June 2017 and the related and the expenditure incurred during the year were in
profit and loss account, statement of comprehensive accordance with the objects of the company;
income, cash flow statement and statement of changes
in equity together with the notes forming part thereof, for (c) in our opinion and to the best of our information
the year then ended and we state that we have obtained and according to the explanations given to us, the
all the information and explanations which, to the best balance sheet, profit and loss account, statement
of our knowledge and belief, were necessary for the of comprehensive income, cash flow statement and
purposes of our audit. statement of changes in equity together with the notes
forming part thereof conform with approved accounting
It is the responsibility of the company’s management standards as applicable in Pakistan, and, give the
to establish and maintain a system of internal control, information required by the repealed Companies
and prepare and present the above said statements in Ordinance, 1984, in the manner so required and
conformity with the approved accounting standards and respectively give a true and fair view of the state of the
the requirements of the repealed Companies Ordinance, company’s affairs as at 30 June 2017 and of the profit,
1984. Our responsibility is to express an opinion on these its comprehensive income, its cash flows and changes in
statements based on our audit. equity for the year then ended; and

We conducted our audit in accordance with the auditing (d) in our opinion, Zakat deductible at source under
standards as applicable in Pakistan. These standards the Zakat and Ushr Ordinance, 1980 (XVIII of 1980),
require that we plan and perform the audit to obtain was deducted by the company and deposited in the
reasonable assurance about whether the above said Central Zakat Fund established under Section 7 of that
statements are free of any material misstatement. An Ordinance.
audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the above
said statements. An audit also includes assessing the
accounting policies and significant estimates made
by management, as well as, evaluating the overall RIAZ AHMAD & COMPANY
presentation of the above said statements. We believe Chartered Accountants
that our audit provides a reasonable basis for our opinion
and, after due verification, we report that:
Name of engagement partner:
(a) in our opinion, proper books of account have Mubashar Mehmood
been kept by the company as required by the repealed
Companies Ordinance, 1984; Date: September 22, 2017
Lahore
(b) in our opinion:

i) the balance sheet and profit and loss account
together with the notes thereon have been drawn up
in conformity with the repealed Companies Ordinance,
1984, and are in agreement with the books of account
and are further in accordance with accounting policies
consistently applied;

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


BALANCE SHEET
AS AT JUNE 30, 2017
2017 2016
Note Rupees Rupees
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorized share capital 3 3,000,000,000 3,000,000,000
Issued, subscribed and paid-up share capital 4 2,402,215,560 2,402,215,560

Reserves 5 9,605,759,223 8,584,981,261
Total equity 12,007,974,783 10,987,196,821
LIABILITIES
NON-CURRENT LIABILITIES
Long term financing 6 4,302,681,600 2,079,194,833
CURRENT LIABILITIES
Trade and other payables 7 1,531,941,212 1,972,627,238

Accrued mark-up 8 194,237,156 142,984,217
Short term borrowings 9 15,236,786,649 12,120,082,522
Current portion of non-current liabilities 10 1,348,981,400 1,581,910,167
18,311,946,417 15,817,604,144
Total liabilities 22,614,628,017 17,896,798,977
CONTINGENCIES AND COMMITMENTS 11
TOTAL EQUITY AND LIABILITIES 34,622,602,800 28,883,995,798
The annexed notes form an integral part of these financial statements.
____________________
CHIEF EXECUTIVE

BALANCE SHEET
AS AT JUNE 30, 2017
2017 2016
Note Rupees Rupees
ASSETS
NON-CURRENT ASSETS
Fixed assets 12 11,974,956,779 9,460,210,901
Investments in subsidiary companies 13 3,902,230,516 3,412,793,015
Long term loans to employees 14 15,885,959 14,941,891
Long term security deposits 22,234,440 20,769,440
15,915,307,694 12,908,715,247
CURRENT ASSETS
Stores, spare parts and loose tools 15 580,064,718 781,084,455

Stock-in-trade 16 8,650,117,999 6,857,956,934
Trade debts 17 5,173,332,632 5,198,890,821
Loans and advances 18 1,627,217,961 1,010,817,219
Short term prepayments 8,091,017 2,754,970
Other receivables 19 2,597,671,046 2,075,108,629
Accrued interest 20 4,483,425 -
Short term investments 21 21,766,947 -
Cash and bank balances 22 44,549,361 48,667,523
18,707,295,106 15,975,280,551
TOTAL ASSETS 34,622,602,800 28,883,995,798
________________________________ _____________
CHIEF FINANCIAL OFFICER DIRECTOR

PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED JUNE 30, 2017
2017 2016
Note Rupees Rupees
REVENUE 23 29,815,994,272 25,799,121,553
COST OF SALES 24 (26,916,200,873) (23,343,603,779)

GROSS PROFIT 2,899,793,399 2,455,517,774
DISTRIBUTION COST 25 (713,514,292) (738,168,261)

ADMINISTRATIVE EXPENSES 26 (235,449,218) (168,988,341)
OTHER EXPENSES 27 (199,858,212) (96,432,497)
(1,148,821,722) (1,003,589,099)
1,750,971,677 1,451,928,675
OTHER INCOME 28 1,122,401,854 1,190,718,912
PROFIT FROM OPERATIONS 2,873,373,531 2,642,647,587
FINANCE COST 29 (1,094,723,154) (1,029,629,378)

PROFIT BEFORE TAXATION 1,778,650,377 1,613,018,209
TAXATION 30 (157,318,525) (284,243,516)
PROFIT AFTER TAXATION 1,621,331,852 1,328,774,693
EARNINGS PER SHARE - BASIC AND DILUTED 31

6.75 5.59
_________________ ________________________ _____________

CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER DIRECTOR

STATEMENT OF COMPREHENSIVE INCOME
2017 2016
Rupees Rupees
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified to profit or loss - -
Items that may be reclassified subsequently to profit or loss - -
Other comprehensive income for the year - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 1,621,331,852 1,328,774,693
____________________ ___________________________ _____________


CASH FLOW STATEMENT
2017 2016
Note Rupees Rupees
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 32 815,626,676 1,012,051,252
Net increase in long term security deposits (1,465,000) -
Finance cost paid (1,043,470,215) (1,058,587,161)
Income tax paid (418,776,837) (423,214,291)
Net increase in long term loans to employees (1,671,770) (9,457,413)
Net cash used in operating activities (649,757,146) (479,207,613)
CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditure on property, plant and equipment (3,568,202,935) (1,272,711,931)
Capital expenditure on intangible asset (3,868,748) (2,491,800)
Proceeds from disposal of operating fixed assets 105,805,812 68,780,909
Loans to subsidiary companies (7,384,500,000) -
Repayments of loans from subsidiary companies 6,601,007,762 -
Investments in subsidiary companies (489,437,501) (315,667,789)
Dividend received from subsidiary company 891,032,645 1,125,514,920
Short term investments (made) / matured (20,660,226) 20,660,225
Interest received 3,769,325 1,415,072
Net cash used in investing activities (3,865,053,866) (374,500,394)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long term financing 3,589,226,500 812,980,000
Repayment of long term financing (1,598,668,500) (1,842,906,406)
Repayment of redeemable capital - (31,250,000)
Share deposit money received - 49,128,425
Short term borrowings - net 3,116,704,127 1,302,971,555
Dividend paid (596,569,277) (358,015,842)
Net cash from / (used in) financing activities 4,510,692,850 (67,092,268)
Net decrease in cash and cash equivalents (4,118,162) (920,800,275)
Cash and cash equivalents at the beginning of the year 48,667,523 969,467,798
Cash and cash equivalents at the end of the year 44,549,361 48,667,523
___________________ __________________________ ______________

STATEMENT OF CHANGES IN EQUITY
CAPITAL RESERVE REVENUE RESERVES

SHARE
SHARE CAPITAL DEPOSIT General Unappropriated TOTAL EQUITY
Share premium Total
MONEY reserve profit
- - - - - - - - - - - - - - - - - - - - - - - - - - - Rupees - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Balance as at 30 June 2015 2,001,846,300 951,794,725 - 1,629,221,278 5,386,763,734 7,015,985,012 9,969,626,037

Transactions with owners:
Final dividend for the year ended 30 June 2015 @ Rupees 1.5 per ordinary - - - - (360,332,334) (360,332,334) (360,332,334)
Share deposit money received during the year - 49,128,425 - - - - 49,128,425
Issue of right shares during the year 400,369,260 (1,000,923,150) 600,553,890 - - - -
400,369,260 (951,794,725) 600,553,890 - (360,332,334) (360,332,334) (311,203,909)
Profit for the year - - - - 1,328,774,693 1,328,774,693 1,328,774,693
Other comprehensive income for the year - - - - - - -
Total comprehensive income for the year - - - - 1,328,774,693 1,328,774,693 1,328,774,693
Balance as at 30 June 2016 2,402,215,560 - 600,553,890 1,629,221,278 6,355,206,093 7,984,427,371 10,987,196,821
Transaction with owner:
Final dividend for the year ended 30 June 2016 @ Rupees 2.5 per ordinary - - - - (600,553,890) (600,553,890) (600,553,890)
Profit for the year - - - - 1,621,331,852 1,621,331,852 1,621,331,852

Other comprehensive income for the year - - - - - - -
Total comprehensive income for the year - - - - 1,621,331,852 1,621,331,852 1,621,331,852
Balance as at 30 June 2017 2,402,215,560 - 600,553,890 1,629,221,278 7,375,984,055 9,005,205,333 12,007,974,783
____________________ _______________________________ _______________


31
2017
NOTES TO THE FINANCIAL STATEMENTS
1. THE COMPANY AND ITS OPERATIONS
Nishat (Chunian) Limited (“the Company”) is a public limited company incorporated in Pakistan under the repealed
Companies Ordinance, 1984 (Now Companies Act, 2017) and is listed on Pakistan Stock Exchange Limited. Its regis-
tered office is situated at 31-Q, Gulberg II, Lahore. The Company is engaged in business of spinning, weaving, dyeing,
printing, stitching, processing, doubling, sizing, buying, selling and otherwise dealing in yarn, fabrics and made-ups
made from raw cotton, synthetic fibre and cloth and to generate, accumulate, distribute, supply and sell electricity.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies applied in the preparation of these financial statements are set out below. These
policies have been consistently applied to all years presented, unless otherwise stated:
2.1 Basis of preparation
a) Statement of compliance
These financial statements have been prepared in accordance with approved accounting standards as applicable in
Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued
by the International Accounting Standards Board as are notified under the repealed Companies Ordinance, 1984,
provisions of and directives issued under the repealed Companies Ordinance, 1984. In case requirements differ, the
provisions or directives of the repealed Companies Ordinance, 1984 shall prevail.
The Companies Ordinance, 1984 has been repealed after the enactment of the Companies Act, 2017 on 30 May 2017.
SECP vide its Circular 17 of 2017 and its press release dated 20 July 2017 has clarified that the companies whose fi-
nancial year, including quarterly and other interim period, closes on or before 30 June 2017 shall prepare their financial
statements in accordance with the provisions of the repealed Companies Ordinance, 1984. The Companies Act, 2017
requires enhanced disclosures about Company’s operations and has also enhanced the definition of related parties.
b) Accounting convention
These financial statements have been prepared under the historical cost convention except for the certain financial
instruments carried at fair value.
c) Critical accounting estimates and judgments
The preparation of financial statements in conformity with the approved accounting standards requires the use of cer-
tain critical accounting estimates. It also requires the management to exercise its judgment in the process of applying
the Company’s accounting policies. Estimates and judgments are continually evaluated and are based on historical
experience and other factors, including expectations of future events that are believed to be reasonable under the
circumstances. The areas where various assumptions and estimates are significant to the Company’s financial state-
ments or where judgments were exercised in application of accounting policies are as follows:
Useful lives, patterns of economic benefits and impairment
Estimates with respect to residual values and useful lives and pattern of flow of economic benefits are based on the
analysis of the management of the Company. Further, the Company reviews the value of assets for possible impair-
ment 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 sales.
Accumulating compensated absences
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 decisions of appellate authorities on certain issues in the past.
Provisions for doubtful debts
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.
Impairment of investments in subsidiary companies
In making an estimate of recoverable amount of the Company’s investments in subsidiary companies, the management
considers future cash flows.
d) Amendments to published approved accounting standards that are effective in current year and are
relevant to the Company
The following amendments to published approved accounting standards are mandatory for the Company’s accounting
periods beginning on or after 01 July 2016:
IAS 1 (Amendments) ‘Presentation of Financial Statements’ (effective for annual periods beginning on or after 01 Janu-
ary 2016). Amendments have been made to address perceived impediments to preparers exercising their judgement in
presenting their financial reports by making the following changes: clarification that information should not be obscured
by aggregating or by providing immaterial information, materiality consideration apply to the all parts of the financial
statements, and even when a standard requires a specific disclosure, materiality consideration do apply; clarification
that the list of the line items to be presented in these statements can be disaggregated and aggregated as relevant and
additional guidance on subtotals in these statements and clarification that an entity’s share of other comprehensive
income of equity-accounted associates and joint ventures should be presented in aggregate as single line items based
on whether or not it will subsequently be reclassified to profit or loss; and additional examples of possible ways of order-
ing the notes to clarify that understandability and comparability should be considered when determining the order of the
notes and to demonstrate that the notes need not be presented in the order so far listed in IAS 1.
IAS 16 (Amendments) ‘Property, Plant and Equipment’ (effective for annual periods beginning on or after 01 January
2016). The amendments clarify that a depreciation method which is based on revenue, generated by an activity by us-
ing of an asset is not appropriate for property, plant and equipment; and add guidance that expected future reductions
in the selling price of an item that was produced using an asset could indicate the expectation of technological or com-
mercial obsolescence of the asset, which, in turn, might reflect a reduction of the future economic benefits embodied
in the asset.
IAS 27 (Amendments) ‘Separate Financial Statements’ (effective for annual periods beginning on or after 01 January
2016). The amendments have been made to permit investments in subsidiaries, joint ventures and associates to be
optionally accounted for using the equity method in separate financial statements. However, the Company has not
availed this option.

IAS 34 (Amendments) ‘Interim Financial Reporting’ (effective for annual periods beginning on or after 01 January
2016). This amendment clarifies what is meant by the reference in the standard to ‘information disclosed elsewhere in
the interim financial report’. The amendment also amends IAS 34 to require a cross-reference from the interim financial
statements to the location of that information.
The application of the above amendments does not result in any impact on profit or loss, other comprehensive income
and total comprehensive income.
e) Amendments to published approved accounting standards that are effective in current year but not
relevant to the Company
There are other amendments to published approved accounting standards that are mandatory for accounting periods
beginning on or after 01 July 2016 but are considered not to be relevant or do not have any significant impact on the
Company’s financial statements and are therefore not detailed in these financial statements.
f) Standards, interpretations and amendments to published approved accounting standards that are not
yet effective but relevant to the Company
Following standards, interpretations and amendments to existing standards have been published and are mandatory
for the Company’s accounting periods beginning on or after 01 July 2017 or later periods:
IFRS 9 ‘Financial Instruments’ (effective for annual periods beginning on or after 01 January 2018). A finalized version
of IFRS 9 which contains accounting requirements for financial instruments, replacing IAS 39 ‘Financial Instruments:
Recognition and Measurement’. Financial assets are classified by reference to the business model within which they
are held and their contractual cash flow characteristics. The 2014 version of IFRS 9 introduces a ‘fair value through
other comprehensive income’ category for certain debt instruments. Financial liabilities are classified in a similar man-
ner to under IAS 39, however there are differences in the requirements applying to the measurement of an entity’s
own credit risk. The 2014 version of IFRS 9 introduces an ‘expected credit loss’ model for the measurement of the
impairment of financial assets, so it is no longer necessary for a credit event to have occurred before a credit loss is
recognized. It introduces a new hedge accounting model that is designed to be more closely aligned with how entities
undertake risk management activities when hedging financial and non-financial risk exposures. The requirements for
the derecognition of financial assets and liabilities are carried forward from IAS 39. The management of the Company
is in the process of evaluating the impacts of the aforesaid standard on the Company’s financial statements.
IFRS 15 ‘Revenue from Contracts with Customers’ (effective for annual periods beginning on or after 01 January 2018).
IFRS 15 provides a single, principles based five-step model to be applied to all contracts with customers. The five steps
in the model are: identify the contract with the customer; identify the performance obligations in the contract; determine
the transaction price; allocate the transaction price to the performance obligations in the contracts; and recognize reve-
nue when (or as) the entity satisfies a performance obligation. Guidance is provided on topics such as the point in which
revenue is recognized, accounting for variable consideration, costs of fulfilling and obtaining a contract and various
related matters. New disclosures about revenue are also introduced. IFRS 15 replaces IAS 11 ‘Construction Contracts’,
IAS 18 ‘Revenue’, IFRIC 13 ‘Customer Loyalty Programmes’, IFRIC 15 ‘Agreements for Construction of Real Estate’,
IFRIC 18 ‘Transfer of Assets from Customers’ and SIC 31’ Revenue-Barter Transactions Involving Advertising Services.
The aforesaid standard is not expected to have a material impact on the Company’s financial statements.
IFRS 16 ‘Lease’ (effective for annual periods beginning on or after 01 January 2019). IFRS 16 specifies how an entity
will recognize, measure, present and disclose leases. The standard provides a single lessee accounting model, requir-
ing lessees to recognize assets and liabilities for all leases unless the lease term is 12 months or less or the underlying
asset has a low value. Lessors continue to classify leases as operating or finance, with IFRS 16 approach to lessor
accounting substantially unchanged from its predecessor, IAS 17 ‘Leases’. IFRS 16 replaces IAS 17 ‘Leases’, IFRIC 4
‘Determining Whether an Arrangement Contains a Lease’, SIC-15 ‘Operating Leases–Incentives’ and SIC-27 ‘Evaluat-
ing the Substance of Transactions Involving the Legal Form of a Lease’. The management of the Company is in the
process of evaluating the impacts of the aforesaid standard on the Company’s financial statements.
IFRIC 22 ‘Foreign Currency Transactions and Advance Consideration’ (effective for annual periods beginning on or af-
ter 01 January 2018). IFRIC 22 clarifies which date should be used for translation when a foreign currency transaction

involves payment or receipt in advance of the item it relates to. The related item is translated using the exchange rate
on the date the advance foreign currency is received or paid and the prepayment or deferred income is recognized. The
date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset,
expense or income (or part of it) would remain the date on which receipt of payment from advance consideration was
recognized. If there are multiple payments or receipts in advance, the entity shall determine a date of the transaction
for each payment or receipt of advance consideration. The interpretation is not expected to have a material impact on
the Company’s financial statements.
IFRIC 23 ‘Uncertainty over Income Tax Treatments’ (effective for annual periods beginning on or after 01 January
2019). The interpretation addresses the determination of taxable profit (tax loss), tax bases, unused tax losses, unused
tax credits and tax rates, when there is uncertainty over income tax treatments under IAS 12 ‘Income Taxes’. It specifi-
cally considers: whether tax treatments should be considered collectively; assumptions for taxation authorities’ exami-
nations; the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates;
and the effect of changes in facts and circumstances. The interpretation is not expected to have a material impact on
the Company’s financial statements.
IFRS 15 (Amendments), ‘Revenue from Contracts with Customers’ (effective for annual periods beginning on or after
01 January 2018). Amendments clarify three aspects of the standard (identifying performance obligations, principal ver-
sus agent considerations, and licensing) and to provide some transition relief for modified contracts and completed con-
tracts. The aforesaid amendments are not expected to have a material impact on the Company’s financial statements.
IAS 7 (Amendments), ‘Statement of Cash Flows’ (effective for annual periods beginning on or after 01 January 2017).
Amendments have been made to clarify that entities shall provide disclosures that enable users of financial statements
to evaluate changes in liabilities arising from financing activities. The aforesaid amendments will result in certain ad-
ditional disclosures in the Company’s financial statements.
IAS 12 (Amendments), ‘Income Taxes’ (effective for annual periods beginning on or after 01 January 2017). The
amendments clarify that the existence of a deductible temporary difference depends solely on a comparison of the
carrying amount of an asset and its tax base at the end of the reporting period, and is not affected by possible future
changes in the carrying amount or expected manner of recovery of the asset. The amendments further clarify that when
calculating deferred tax asset in respect of insufficient taxable temporary differences, the future taxable profit excludes
tax deductions resulting from the reversal of those deductible temporary differences. The amendments are not likely to
have significant impact on Company’s financial statements.
IAS 40 (Amendments), ‘Investment Property’ (effective for annual periods beginning on or after 01 January 2018).
Amendments have been made to state that that an entity shall transfer a property to, or from, investment property
when, and only when, there is evidence of a change in use. A change of use occurs if property meets, or ceases to
meet, the definition of investment property. A change in management’s intentions for the use of a property by itself does
not constitute evidence of a change in use. The list of examples of evidence in paragraph 57(a) – (d) is now presented
as a non-exhaustive list of examples instead of the previous exhaustive list. The amendment is not likely to have a
significant impact on the Company’s financial statements.
Amendments to IFRS 10 and IAS 28 (deferred indefinitely) to clarify the treatment of the sale or contribution of assets
from an investor to its associates or joint venture, as follows: require full recognition in the investor’s financial state-
ments of gains and losses arising on the sale or contribution of assets that constitute a business (as defined in IFRS
3 ‘Business Combinations’); require the partial recognition of gains and losses where the assets do not constitute a
business, i.e. a gain or loss is recognized only to the extent of the unrelated investors’ interests in that associate or joint
venture. These requirements apply regardless of the legal form of the transaction, e.g. whether the sale or contribution
of assets occur by an investor transferring shares in a subsidiary that holds the assets (resulting in loss of control of
the subsidiary), or by the direct sale of the assets themselves. The management of the Company is in the process of
evaluating the impacts of the aforesaid amendments on the Company’s financial statements.
On 8 December 2016, IASB issued Annual Improvements to IFRSs: 2014 – 2016 Cycle, incorporating amendments to
three IFRSs more specifically in IFRS 12 ‘Disclosure of Interests in Other Entities’ and IAS 28 ‘Investments in Associ-
ates and Joint Ventures’. These amendments are effective for annual periods beginning on or after 01 January 2017
and 01 January 2018 respectively. These amendments have no significant impact on the Company’s financial state-
ments and have therefore not been analysed in detail.

g) Standards and amendments to approved published standards that are not yet effective and not consid-
ered relevant to the Company
There are other standards and amendments to published standards that are mandatory for accounting periods begin-
ning on or after 01 July 2017 but are considered not to be relevant or do not have any significant impact on the Com-
pany’s financial statements and are therefore not detailed in these financial statements.
2.2 Taxation
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 enacted. The charge for current tax also includes adjustments, where considered necessary,
to provision for tax made in previous years arising from assessments framed during the year for such years.
Deferred
Deferred tax is accounted for using the balance sheet liability method in respect of all temporary differences arising
from differences between the carrying amount of assets and liabilities in the financial statements and the correspond-
ing tax bases used in the computation of the taxable profit. Deferred tax liabilities are generally recognized for all tax-
able temporary differences and deferred tax assets to the extent that it is probable that taxable profits will be available
against which the deductible temporary differences, unused tax losses and tax credits can be utilized.
Deferred tax is calculated at the rates that are expected to apply to the period when the differences reverse based
on tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is charged or
credited in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive
income or directly in equity. In this case the tax is also recognised in statement of comprehensive income or directly in
equity, respectively.
2.3 Employee benefits
The main features of the schemes operated by the Company for its employees are as follows:
Provident fund
There is an approved contributory provident fund for employees of the Company. Equal monthly contributions are made
both by the employees and the Company to the fund in accordance with the fund rules. The Company’s contributions
to the fund are charged to income currently.
The Company provides for accumulating compensated absences, when the employees render service that increase
their entitlement to future compensated absences. Under the rules, head office employees are entitled to 15 days
leave per year while factory staff and factory workers are entitled to 14 days leave per year. Unutilized leaves can be
accumulated up to 28 days in case of factory staff and factory workers. Any further un-utilized leaves will lapse. Any
un-utilized leave balance can be encashed by them at any time during their employment. Unutilized leaves can be used
at any time by all employees, subject to the Company’s approval. Provisions are made annually to cover the obligation
for accumulating compensated absences and are charged to income.
2.4 Fixed assets
Property, plant, equipment and depreciation
Property, plant and equipment except freehold land and capital work-in-progress are stated at cost less accumulated
depreciation and any identified impairment loss. Cost in relation to certain property, plant and equipment signifies his-

torical 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 impairment loss.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, 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 / depreciable amount of the assets over their estimated useful lives at the rates given in Note 12.1. Depreciation
on additions is charged from the month in which the assets are available for use upto the month prior to disposal. The
assets’ residual values and useful lives are reviewed at each financial year end and adjusted if impact on depreciation
is significant.
Derecognition
An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference
between the net disposal proceeds and carrying amount of the asset) is included in the profit and loss account in the
year the asset is derecognized.
Intangible asset
Intangible assets, which are non-monetary assets without physical substance, are recognized at cost, which comprise
purchase price, non-refundable purchase taxes and other directly attributable expenditures relating to their implemen-
tation and customization. After initial recognition, an intangible asset is carried at cost less accumulated amortization
and impairment losses, if any. Intangible assets are amortized from the month, when these assets are available for use,
using the straight line method, whereby the cost of the intangible asset is amortized over its estimated useful life over
which economic benefits are expected to flow to the Company. The useful life and amortization method are reviewed
and adjusted, if appropriate, at each reporting date.
2.5 Ijarah transactions
Ujrah (lease) payments are recognized as expenses in profit and loss account on a straight-line basis over the Ijarah
term unless another systematic basis is representative of the time pattern of the user’s benefit even if the payments
are not on that basis.
2.6 Investments
Classification of an investment is made on the basis of intended purpose for holding such investment. Management
determines the appropriate classification of its investments at the time of purchase and re-evaluates such designation
on regular basis.
Investments are initially measured at fair value plus transaction costs directly attributable to acquisition, except for ‘in-
vestment at fair value through profit or loss’ which is measured initially at fair value.
The Company assess at the end of each reporting period whether there is any objective evidence that investments are
impaired. If any such evidence exists, the Company applies the provisions of IAS 39 ‘Financial Instruments: Recogni-
tion and Measurement’ to all investments, except investments in subsidiary companies, which are tested for impairment
in accordance with the provisions of IAS 36 ‘Impairment of Assets’.

a) Investment at fair value through profit or loss
Investment classified as held-for-trading and those designated as such are included in this category. Investments are
classified as held-for-trading if these are acquired for the purpose of selling in the short term. Gains or losses on invest-
ments held-for-trading are recognized in profit and loss account.
b) Held-to-maturity
Investments with fixed or determinable payments and fixed maturity are classified as held-to-maturity when the Com-
pany has the positive intention and ability to hold to maturity. Investments intended to be held for an undefined pe-
riod are not included in this classification. Other long-term investments that are intended to be held to maturity are
subsequently measured at amortized cost. This cost is computed as the amount initially recognized minus principal
repayments, plus or minus the cumulative amortization, using the effective interest method, of any difference between
the initially recognized amount and the maturity amount. For investments carried at amortized cost, gains and losses
are recognized in profit and loss account when the investments are de-recognized or impaired, as well as through the
amortization process.
c) Investments in subsidiary companies
Investments in subsidiary companies are stated at cost less impairment loss, if any, in accordance with the provisions
of IAS 27 ‘Separate Financial Statements’.
d) Available-for-sale
Investments intended to be held for an indefinite period of time, which may be sold in response to need for liquidity, or
changes to interest rates or equity prices are classified as available-for-sale. After initial recognition, investments which
are classified as available-for-sale are measured at fair value. Gains or losses on available-for-sale investments are
recognized directly in statement of comprehensive income until the investment is sold, de-recognized or is determined
to be impaired, at which time the cumulative gain or loss previously reported in statement of comprehensive income is
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 quoted market bids at the close of business on the balance sheet date.
Unquoted
Fair value of unquoted investments is determined on the basis of appropriate valuation techniques as allowed by IAS
39 ‘Financial Instruments: Recognition and Measurement’.
2.7 Inventories
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 parts and loose tools
Usable stores, spare parts and loose tools are valued principally at weighted average cost, while items considered
obsolete are carried at nil value. Items-in-transit are valued at cost comprising invoice value plus other charges paid
thereon.
Stock-in-trade
Cost of raw materials is measured using the weighted average cost formula.

Cost of work-in-process and finished goods comprise cost of direct material, labour and appropriate manufacturing
overheads. Cost of goods purchased for resale is based on first-in-first-out (FIFO) cost 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 costs necessary to make the sale.
2.8 Foreign currencies
These financial statements are presented in Pak Rupees, which is the Company’s functional currency. All monetary as-
sets and liabilities denominated in foreign currencies are translated into Pak Rupees at the rates of exchange prevailing
at the balance sheet date, while the transactions in foreign currencies during the year are initially recorded in functional
currency at the rates of exchange prevailing at the transaction date. All non-monetary items are translated into Pak Ru-
pees at exchange rates prevailing on the date of transaction or on the date when fair values are determined. Exchange
gains and losses are included in the income currently.
2.9 Borrowing cost
Borrowing costs are recognized as expense in the period in which these are incurred except to the extent of borrowing
costs 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.
2.10 Revenue recognition
Revenue from sales is recognized on dispatch of goods to customers.
Return on bank deposits is accrued on a time proportionate basis by reference to the principal outstanding and the
applicable rate of return.
Revenue from sale of electricity is recognized at the time of transmission.
Dividend income on equity investment is recognized as and when the right to receive dividend is established.
2.11 Share capital
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.
2.12 Financial instruments
Financial instruments carried on the balance sheet include security deposits, trade debts, loans and advances, other
receivables, cash and bank balances, short term borrowings, long term financing, accrued mark-up and trade and other
payables. Financial assets and liabilities are recognized when the Company becomes a party to the contractual provi-
sions of the instrument. Initial recognition is made at fair value plus transaction costs directly attributable to acquisition,
except for ‘financial instrument at fair value through profit or loss’ which is measured initially at fair value.
Financial assets are de-recognized when the Company loses control of the contractual rights that comprise the finan-
cial asset. The Company loses such control if it realizes the rights to benefits specified in contract, the rights expire
or the Company surrenders those rights. Financial liabilities are de-recognized when the obligation specified in the
contract is discharged, cancelled or expired. Any gain or loss on subsequent measurement (except available for sale
investments) and de-recognition is charged to the profit or loss currently. The particular measurement methods adopted
are disclosed in the individual policy statements associated with each item and in the accounting policy of investments.

2.13 Trade debts and other receivables
Trade debts and other receivables are carried at original invoice value less an estimate made for doubtful debts based
on a review of all outstanding amounts at the year end. Bad debts are written off when identified.
2.14 Borrowings
Borrowings are recognized initially at fair value and are subsequently stated at amortized cost. Any difference between
the proceeds and the redemption value is recognized in the profit and loss account over the period of the borrowings
using the effective interest rate method.
2.15 Trade and other payables
Liabilities for trade and other amounts payable are initially recognized at fair value which is normally the transaction
cost.
2.16 Off setting
Financial assets and financial liabilities are set off and the net amount is reported in the financial statements when there
is a legal enforceable right to set off and the Company intends either to settle on a net basis or to realize the assets and
to settle the liabilities simultaneously.
2.17 Cash and cash equivalents
Cash and cash equivalents are carried in the balance sheet at book value which approximates their fair value. For the
purpose of cash flow statement, cash and cash equivalents comprise cash in hand, cash at banks on current, saving
and deposit accounts, other short term highly liquid instruments that are readily convertible to known amounts of cash
and which are subject to an insignificant risk of changes in value.
2.18 Non-current assets held for sale
Non-current assets are classified as assets held for sale and stated at the lower of carrying amount and fair value less
costs to sell if their carrying amount is to be recovered principally through a sale transaction rather than through con-
tinuing use.
2.19 Derivative financial instruments
Derivative financial instruments are initially recognized at fair value on the date a derivative contract is entered into and
are remeasured to fair value at subsequent reporting dates. The method of recognizing the resulting gain or loss de-
pends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.
The Company designates certain derivatives as cash flow hedges.
The Company documents at the inception of the transaction the relationship between the hedging instruments and
hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. The
Company also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives
that are used in hedging transactions are highly effective in offsetting changes in cash flow of hedged items.
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges
are recognized in statement of comprehensive income. The gain or loss relating to the ineffective portion is recognized
immediately in the profit and loss account.
Amounts accumulated in equity are recognized in profit and loss account in the periods when the hedged item will af-
fect profit or loss.
2.20 Provisions
Provisions are recognized when the Company has a legal or constructive obligation as a result of past events and it
is probable that an outflow of resources embodying economic benefits will be required to settle the obligations and a
reliable estimate of the amount can be made.
2.21 Impairment
a) Financial assets
A financial asset is considered to be impaired if objective evidence indicate that one or more events had a negative
effect on the estimated future cash flows of that asset.
An impairment loss in respect of a financial asset measured at amortized cost is calculated as a difference between its
carrying amount and the present value of estimated future cash flows discounted at the original effective interest rate.
An impairment loss in respect of available for sale financial asset is calculated by reference to its current fair value.
Individually significant financial assets are tested for impairment on an individual basis. The remaining financial assets
are assessed collectively in groups that share similar credit risk characteristics.
b) Non-financial assets
The carrying amounts of the Company’s assets are reviewed at each balance sheet date to determine whether there
is any indication of impairment. If such indication exists, the recoverable amount of such asset is estimated. An im-
pairment loss is recognized wherever the carrying amount of the asset exceeds its recoverable amount. Impairment
losses are recognized in profit and loss account. A previously recognized impairment loss is reversed only if there has
been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was
recognized. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased
amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment
loss been recognized for the asset in prior years. Such reversal is recognized in profit and loss account.
2.22 Segment reporting
Segment reporting is based on the operating (business) segments of the Company. An operating segment is a compo-
nent of the Company that engages in business activities from which it may earn revenues and incur expenses, includ-
ing revenues and expenses that relate to the transactions with any of the Company’s other components. An operating
segment’s operating results are reviewed regularly by the chief executive to make decisions about resources to be
allocated to the segment and assess its performance, and for which discrete financial information is available.
Segment results that are reported to the chief executive include items directly attributable to a segment as well as those
that can be allocated on a reasonable basis. Those incomes, expenses, assets, liabilities and other balances which
cannot be allocated to a particular segment on a reasonable basis are reported as unallocated.
The Company has following reportable business segments. Spinning – Zone 1, 2 and 3 (Producing different quality of
yarn using natural and artificial fibres), Weaving – Unit 1 and 2 (Producing different quality of greige fabric using yarn),
Dyeing (Producing dyed fabric using different qualities of greige fabric), Home Textile (Manufacturing of home textile ar-
ticles using processed fabric produced from greige fabric) and Power Generation (Generating and distributing power).
Transaction among the business segments are recorded at arm’s length prices using admissible valuation methods.
Inter segment sales and purchases are eliminated from the total.
2.23 Government grants
Government grants are recognized when there is reasonable assurance that entity will comply with the conditions at-
tached to it and grant will be received.
2.24 Dividend to ordinary shareholders 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.

2017 2016
Rupees Rupees
3. AUTHORIZED SHARE CAPITAL
2017 2016
(Number of shares)
280,000,000 280,000,000 Ordinary shares of Rupees 10 each 2,800,000,000 2,800,000,000
20,000,000 20,000,000 Preference shares of Rupees 10 200,000,000 200,000,000

300,000,000 300,000,000 3,000,000,000 3,000,000,000
4. ISSUED, SUBSCRIBED AND PAID-UP SHARE CAPITAL
2017 2016 2017 2016

(Number of shares) Rupees Rupees
134,757,848 134,757,848 Ordinary shares of Rupees 10 each

fully paid in cash 1,347,578,480 1,347,578,480

issued as fully paid bonus shares 1,042,394,430 1,042,394,430

issued as fully paid for
consideration other than cash to
members of Umer Fabrics Limited
as per the Scheme of Arrangement
as approved by the Honourable 12,242,650 12,242,650
240,221,556 240,221,556 2,402,215,560 2,402,215,560
2017 2016
(Number of shares)
4.1 Ordinary shares of the Company held by companies that are related parties:
Nishat Mills Limited 32,689,338 32,689,338

D.G. Khan Cement Company Limited 7,274,602 7,274,602
Adamjee Life Assurance Company Limited 1,300,000 -
41,263,940 39,963,940

2017 2016
Rupees Rupees
4.2 Movement during the year
2017 2016
(Number of shares)
240,221,556 200,184,630 At 01 July 2,402,215,560 2,001,846,300
- 40,036,926 Issue of right shares of Rupees 10

each at premium - 400,369,260
240,221,556 240,221,556 At 30 June 2,402,215,560 2,402,215,560
2017 2016
Rupees Rupees
5. RESERVES
Composition of reserves is as follows:
Capital reserve
Share premium 600,553,890 600,553,890
Revenue reserves
General reserve 1,629,221,278 1,629,221,278

Unappropriated profit 7,375,984,055 6,355,206,093
9,005,205,333 7,984,427,371
9,605,759,223 8,584,981,261
6. LONG TERM FINANCING
From banking companies / financial institutions - secured
Long term loans (Note 6.1) 5,071,663,000 3,501,105,000

Long term musharaka (Note 6.2) 580,000,000 160,000,000
5,651,663,000 3,661,105,000
Less: Current portion shown under current liabilities (Note 10)
Long term loans 1,243,981,400 1,501,910,167

Long term musharaka 105,000,000 80,000,000
1,348,981,400 1,581,910,167
4,302,681,600 2,079,194,833

6.1 Long term loans
2017
RATE OF MARK-UP PER MARK-UP MARK-UP
LENDER 2017 2016 NUMBER OF INSTALLMENTS
44
ANNUM REPRICING PAYABLE
Rupees Rupees
Standard Chartered Bank (Pakistan) Limited 437,500,000 687,500,000 3-month KIBOR + 0.75% Sixteen equal quarterly instalments commenced on 04 May 2015 Quarterly Quarterly
and ending on 04 February 2019.
United Bank Limited - 93,750,000 3-month KIBOR + 1.25% Sixteen equal quarterly instalments commenced on 09 June 2013 Quarterly Quarterly
and ended on 09 March 2017.
Allied Bank Limited - 150,000,000 3-month KIBOR + 1.25% Sixteen equal quarterly instalments commenced on 28 February Quarterly Quarterly

2013 and ended on 29 November 2016.
Allied Bank Limited - 125,000,000 3-month KIBOR + 1.25% Sixteen equal quarterly instalments commenced on 06 September Quarterly Quarterly
2013 and ended on 06 June 2017.
Allied Bank Limited 25,083,500 30,872,000 SBP rate for LTFF + 1.00% Sixteen equal quarterly instalments commenced on 22 October - Quarterly
2016 and ending on 22 July 2020.
Allied Bank Limited 126,000,000 144,000,000 SBP rate for LTFF + 1.00% Sixteen equal quarterly instalments commenced on 07 January - Quarterly
2017 and ending on 30 September 2020.
Allied Bank Limited 135,625,000 155,000,000 SBP rate for LTFF + 1.00% Sixteen equal quarterly instalments commenced on 20 January - Quarterly
Allied Bank Limited 65,745,000 70,128,000 SBP rate for LTFF + 1.00% Sixteen equal quarterly instalments commenced on 11 May 2017 - Quarterly
Allied Bank Limited 235,000,000 - SBP rate for LTFF + 1.00% Thirty two equal quarterly instalments commencing on 24 February - Quarterly
2019 and ending on 24 November 2026.
Allied Bank Limited 131,700,000 - SBP rate for LTFF + 1.00% Thirty two equal quarterly instalments commencing on 18 April - Quarterly
2019 and ending on 18 January 2027.
Allied Bank Limited 391,000,000 - SBP rate for LTFF + 1.00% Thirty two equal quarterly instalments commencing on 19 April - Quarterly
2019 and ending on 19 January 2027.
Allied Bank Limited 116,512,500 - SBP rate for LTFF + 1.00% Fourty equal quarterly instalments commenced on 21 May 2017 - Quarterly
Allied Bank Limited 117,800,000 - SBP rate for LTFF + 1.00% Thirty two equal quarterly instalments commencing on 03 July - Quarterly
2019 and ending on 03 April 2027.
Askari Bank Limited 227,500,000 297,500,000 3-month KIBOR + 0.70% Twenty equal quarterly instalments commenced on 08 December Quarterly Quarterly
Askari Bank Limited 157,700,000 - SBP rate for LTFF + 1.00% Fourty equal quarterly instalments commenced on 02 February - Quarterly
Askari Bank Limited 19,000,000 - SBP rate for LTFF + 1.00% Fourty equal quarterly instalments commenced on 04 February - Quarterly
Askari Bank Limited 142,500,000 - SBP rate for LTFF + 1.00% Fourty equal quarterly instalments commenced on 08 March 2017 - Quarterly
and ending on 08 December 2026.
Askari Bank Limited 130,260,000 - SBP rate for LTFF + 1.00% Fourty equal quarterly instalments commenced on 22 June 2017 - Quarterly
and ending on 22 March 2027.
Askari Bank Limited 6,200,000 - 3-month KIBOR + 1.00% Fourty equal quarterly instalments commencing on 12 September Quarterly Quarterly
2017 and ending on 12 June 2027.
Askari Bank Limited 20,000,000 - 3-month KIBOR + 1.00% Fourty equal quarterly instalments commencing on 26 August 2017 Quarterly Quarterly
and ending on 26 May 2027.
NIB Bank Limited 160,000,000 - SBP rate for LTFF + 1.00% Sixteen equal half yearly instalments commencing on 25 July 2019 - Quarterly
and ending on 25 January 2027.
NIB Bank Limited 80,500,000 - 6-month KIBOR + 0.90% Ten equal half yearly instalments commencing on 07 September Quarterly Quarterly
2019 and ending on 07 March 2024.
Pak Kuwait Investment Company (Private) 52,483,000 62,980,000 SBP rate for LTFF + 0.75% Eighteen equal quarterly instalments commenced on 22 November - Quarterly
Limited 2016 and ending on 22 February 2021.
The Bank of Punjab 50,000,000 150,000,000 3-month KIBOR + 0.75% Ten equal half yearly instalments commenced on 17 June 2013 Quarterly Quarterly
and ending on 17 December 2017.
The Bank of Punjab 200,000,000 400,000,000 3-month KIBOR + 0.75% Ten equal half yearly instalments commenced on 10 December Quarterly Quarterly
The Bank of Punjab 500,000,000 - 3-month KIBOR + 0.75% Ten equal half yearly instalments commencing on 30 September Quarterly Quarterly
Samba Bank Limited 62,500,000 187,500,000 3-month KIBOR + 0.75% Sixteen equal quarterly instalments commenced on 28 February Quarterly Quarterly
2014 and ending on 31 October 2017.
Soneri Bank Limited - 46,875,000 3-month KIBOR + 1% Sixteen equal quarterly instalments commenced on 30 April 2013 Quarterly Quarterly
and ended on 31 January 2017.
Soneri Bank Limited 299,500,000 - SBP rate for LTFF + 1.00% Thirty two equal quarterly instalments commencing on 14 June - Quarterly
Soneri Bank Limited 222,000,000 - SBP rate for LTFF + 1.00% Thirty two equal quarterly instalments commencing on 06 July - Quarterly
2019 and ending on 06 April 2027.
Syndicated term finance
Allied Bank Limited 440,000,000 660,000,000 3-month KIBOR + 1% Ten equal half yearly instalments commenced on 27 December Quarterly Quarterly
Habib Bank Limited 120,000,000 180,000,000 3-month KIBOR + 1% Ten equal half yearly instalments commenced on 27 December Quarterly Quarterly
Habib Metropolitan Bank Limited 40,000,000 60,000,000 3-month KIBOR + 1% Ten equal half yearly instalments commenced on 27 December Quarterly Quarterly
600,000,000 900,000,000
5,071,663,000 3,501,105,000
6.2 Long term musharaka
RATE OF PROFIT PER PROFIT PROFIT

LENDER 2017 2016 NUMBER OF INSTALLMENTS
Rupees Rupees
Dubai Islamic Bank (Pakistan) Limited Ten equal half yearly instalments commenced on 29 September Half Yearly Half Yearly
80,000,000 160,000,000 6-month KIBOR + 0.75% 2013 and ending on 29 March 2018.
Faysal Bank Limited Twenty equal quarterly instalments commencing on 21 May 2018 Quarterly Quarterly
500,000,000 - 3-month KIBOR + 0.70% and ending on 21 February 2023.
580,000,000 160,000,000
6.3 Long term loans 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 8,174.81 million (2016: Rupees 8,874.53 million) and ranking
charge on all present and future fixed assets of the Company to the extent of Rupees 3,238.667 million (2016: Rupees 2,333.343 million).

6.4 Long term musharaka 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 213.334 million (2016: Rupees 756.667 million) and
45
ranking charge on all present and future fixed assets of the Company to the extent of Rupees 666.67 million (2016: Rupees Nil).
2017
2017 2016
Rupees Rupees
7. TRADE AND OTHER PAYABLES
Creditors (Note 7.1) 518,174,162 976,714,355

Accrued liabilities 757,223,956 738,541,501
Advances from customers 81,790,429 69,011,424
Securities from contractors - interest free and repayable on
completion of contracts 3,484,800 3,960,588
Retention money 8,650,318 6,170,126
Income tax deducted at source 19,432,439 21,545,102
Unclaimed dividend 30,710,405 26,725,791
Fair value of forward exchange contracts 17,060,202 -
Workers' profit participation fund (Note 7.2) 72,494,888 85,243,208
Workers' welfare fund - 21,681,803
Others 22,919,613 23,033,340
1,531,941,212 1,972,627,238
7.1 It includes Rupees 34.392 million (2016: Rupees 3.025 million) due to related parties.
7.2 Workers' profit participation fund
Balance as at 01 July 85,243,208 60,344,322

Add: Interest for the year (Note 29) 12,217,220 6,602,743
Add: Allocation for the year (Note 27) 72,494,888 85,243,208
169,955,316 152,190,273
Less : Payments during the year 97,460,428 66,947,065
Balance as at 30 June 72,494,888 85,243,208
7.2.1 The Company retains workers' profit participation fund for its business operations till the date of allocation
to workers. Interest is paid at prescribed rate under the Companies Profit (Workers' Participation) Act,
1968 on funds utilized by the Company till the date of allocation to workers.
8. ACCRUED MARK-UP
Long term financing 51,058,779 35,558,410

Short term borrowings 143,178,377 107,425,807
194,237,156 142,984,217
9. SHORT TERM BORROWINGS
From banking companies - secured
Short term running finances (Notes 9.1 and 9.2) 2,143,226,773 2,127,918,129
Export finances - Preshipment / SBP refinance (Notes 9.1 and 9.3) 4,360,059,876 5,222,164,393
Other short term finances (Notes 9.1 and 9.4) 8,733,500,000 4,770,000,000
15,236,786,649 12,120,082,522
9.1 These finances are obtained from banking companies under mark-up arrangements and are secured by
hypothecation of all present and future current assets of the Company and lien on export bills to the extent
of Rupees 25,462 million (2016: Rupees 25,462 million) and ranking charge on all present and future
current assets of the Company to the extent of Rupees 5,667 million (2016: Rupees 534 million). These
form part of total credit facilities of Rupees 22,265 million (2016: Rupees 19,065 million).
9.2 The rates of mark-up range from 6.24% to 7.12% (2016: 6.60% to 8.74%) per annum on the balance
9.3 The rates of mark-up on Pak Rupee finances and US Dollar finances range from 2.40% to 6.43% (2016:
2.95% to 6.46%) per annum and 1.30% to 2% (2016: 1.15% to 1.45%) per annum respectively on the
balance outstanding.
2017 2016
Rupees Rupees
10. CURRENT PORTION OF NON-CURRENT LIABILITIES
Current portion of long term financing (Note 6) 1,348,981,400 1,581,910,167
11. CONTINGENCIES AND COMMITMENTS
11.1 Contingencies
11.1.1 The Company preferred appeal against the Government of Punjab in the Honourable Lahore High Court,
Lahore against imposition of electricity duty on internal generation and the writ petition has been
accepted. However, Government of Punjab has moved to the Honourable Supreme Court of Pakistan
against the order of Honourable Lahore High Court, Lahore. The Company has fully provided its liability in
respect of electricity duty on internal generation. As at the reporting date, an amount of Rupees 66.650
million (2016: Rupees 54.941 million) is payable on this account but the management of the Company is
confident that payment of electricity duty will not be required.
11.1.2 The Collectorate of Customs (Export) has issued show cause notices with the intention to reject the duty
draw back claims aggregating to Rupees 9.482 million on blended grey fabrics exported under Duty and
Tax Remission Rules for Export (DTRE) scheme. The department is of the view that the Company has not
submitted Appendix-1 as per Rule 297-A of the above referred scheme. The Company considers that
since it has taken benefit of remission of sales tax only, it is entitled to full duty draw back and filed
appeal before Appellate Tribunal Inland Revenue (ATIR), Karachi Bench which was decided against the
Company. The Company also applied to Federal Board of Revenue (FBR) to constitute Alternate Dispute
Resolution Committee (ADRC) in terms of section 195C of the Customs Act, 1969 to settle the dispute.
ADRC vide its order dated 16 April 2008 has recommended the case in favour of the Company and
forwarded the case to FBR. However, FBR has not accepted the recommendations of ADRC. The
Company has now filed appeal before the Honourable High Court of Sindh against the order of ATIR,
where the case is pending.
11.1.3 The Company impugned selection of its tax affairs for audit in terms of section 177 of the Income Tax
Ordinance, 2001 for tax year 2009 in Honourable Lahore High Court, Lahore through writ petition. After
dismissal of writ petition by the Honourable Lahore High Court, Lahore, the tax department has completed
the audit of tax year 2009 of income tax affairs of the Company and Deputy Commissioner Inland Revenue
(DCIR) has passed an order under sections 122(1)/122(5) of the Income Tax Ordinance, 2001 creating a
tax demand of Rupees 6.773 million. The Company has filed appeal before Commissioner Inland
Revenue (Appeals) [CIR(A)] against the decision of DCIR which is pending adjudication. No provision
against this demand has been made in these financial statements as the Company is hopeful of a
favourable outcome of appeal based on the opinion of the tax advisor. Nishat (Chunian) Limited 47 2017
11.1.4 As a result of withholding tax audit for the tax year 2006, DCIR has raised a demand of Rupees 32.156
million under sections 161 and 205 of the Income Tax Ordinance, 2001. The Company is in appeal before
ATIR as its appeal before Commissioner Inland Revenue (Appeals) [CIR(A)] was unsuccessful. The
Company expects a favourable outcome of the appeal based on advice of the tax counsel. The
Company also challenged the initiation of proceedings, under section 161 and 205 of the Income Tax
Ordinance, 2001 pertaining to tax years 2007, 2008, 2009, 2010, 2011 and 2012 in the Honourable Lahore
High Court, Lahore through a writ petition. The Honourable Lahore High Court, Lahore directed the Tax
Department to issue notice for reconciliation and in case default is established only then action under
section 205 of the Income Tax Ordinance, 2001 can be taken. The Company also filed intra court appeals
to the Honourable Lahore High Court, Lahore, which were dismissed. Against this dismissal, appeal has
been filed before the Supreme Court of Pakistan which is pending adjudication. The management of the
Company believes that the expected favourable outcome of its appeal before ATIR, in respect of tax year
2006 on same issues, will dispose of the initiation of these proceedings. In respect of tax year 2012, the
case has been decided at departmental level as stated in Note 11.1.7, hence appeal filed before the
Supreme Court of Pakistan in respect of tax year 2012 shall be withdrawn shortly.
11.1.5 The Company is in appeal before ATIR as its appeal before CIR(A) against the order of Additional
Commissioner Inland Revenue (ACIR) was unsuccessful. ACIR has passed an order under section
122(5A) of the Income Tax Ordinance, 2001 for tax year 2011 whereby a demand of Rupees 6.822 million
has been raised. No provision against the demand has been made in these financial statements as the
Company is hopeful of a favourable outcome of appeal based on opinion of the tax advisor.
11.1.6 The Deputy Collector (Refund – Gold) by order dated 16 May 2007 rejected the input tax claim of the
Company, for the month of June 2005, amounting to Rupees 1.604 million incurred in zero rated local
supplies of textile and articles thereof on the grounds that the input tax claim is in contravention of SRO
992(I)/2005 which states that no registered person engaged in the export of specified goods (including
textile and articles thereof) shall, either through zero-rating or otherwise, be entitled to deduct or reclaim
input tax paid in respect of stocks of such goods acquired up to 05 June 2005, if not used for the purpose
of exports made up to the 31 December 2005. The appeal of the Company before ATIR was successful
and input tax claim of the Company is expected to be processed after necessary verification in this
regard. Pending the outcome of verification no provision for inadmissible input tax has been recognized
11.1.7 The ACIR through an order under section 161/205 of the Income Tax Ordinance, 2001 created a demand
of Rupees 147.745 million for tax year 2012 on account of alleged non-deduction of income tax on
payments against the heads commission to selling agents on exports and export marketing expenses.
Being aggrieved, the Company filed an appeal before CIR(A), who vide order dated 09 June 2016
accepted the stance of the Company and deleted the demand related to commission to selling agents on
exports, whereas, with respect to export marketing expenses, CIR(A) remanded back the case to ACIR.
However, the Company has filed appeal before ATIR which is pending for fixation. Based on grounds and
facts, the appeal is likely to be decided in favour of the Company.The demand created under section
161/205 of the Income Tax Ordinance, 2001 of tax year 2012 amounting to Rupees 147.745 million by
ACIR was subsequently reduced to Rupees 165,593 through appeal effect order issued by ACIR. While
giving appeal effect, ACIR did not give adjustment of the refunds already adjusted against the demand
raised in the proceedings. Therefore, application for rectification of order has been filed, however,
rectified order has not yet been issued by the learned ACIR.
11.1.8 The Company filed appeal before CIR(A) against the order of ACIR. ACIR passed an order under section
122(5A) of the Income Tax Ordinance, 2001 for tax year 2012 whereby a demand of Rupees 125.162
million has been raised. CIR(A) vide order dated 29 June 2016 has deleted some of the additions made
by ACIR. Being aggrieved by the order of CIR(A), the Company as well as the tax department have
preferred appeals before the ATIR which are pending adjudication. No provision against this demand has
been made in these financial statements as the Company is hopeful for a favourable outcome of appeal
based on the opinion of the tax advisor.
11.1.9 The Company filed appeal before CIR(A) against the order of ACIR. ACIR passed an order under section
122(5A) of the Income Tax Ordinance, 2001 for tax year 2010 whereby a demand of Rupees 142.956
million has been raised. CIR(A) vide order dated 28 October 2016 has deleted some of the additions
made by ACIR. Being aggrieved by the order of CIR(A), the Company as well as the tax department have
been made in these financial statements as the Company is hopeful for a favourable outcome of appeal
based on the opinion of the tax advisor.
11.1.10 The Deputy Commissioner Inland Revenue passed an order under sections 161/205 of the Income Tax
Ordinance, 2001 creating a demand of Rupees 19.073 million for the tax year 2014. The Company
preferred an appeal against this order before CIR (A). The CIR (A) adjudicated that impugned order is
unsustainable and remanded back the matter to taxation officer for consideration of legal grounds and
merits of the case. The Company has also filed an appeal before ATIR against the order of CIR (A). The
proceedings before both forums are pending for adjudication. No provision against this demand has
been made in these financial statements as the Company is confident of favorable outcome of its appeal.
11.1.11 Through show cause notice, the Collector of Customs, Karachi raised demand of Rupees 23.585 million
on the grounds that the Company was not entitled for exemption of sales tax and facility of reduced rate of
income tax on 13 consignments of cotton imported during the period from April 2013 to April 2014. The
vires of show cause notice were challenged in Honorable Sindh High Court at Karachi from where stay
was granted with the direction to the Collector that he will not pass final order pursuant to the impugned
show cause notice particularly in respect of advance income tax till next date of hearing. In spite of the
categorical orders of the Honorable High Court, the Collector passed order, creating the demand of the
aforesaid amount. Appeal against the said order has been filed in ATIR, Karachi but has not been
decided. There is sufficient case law on the subject and there is every likelihood that case will be
decided in favour of the Company.
11.1.12 The Company is contesting sales tax demands / rejections of sales tax by taxation authorities amounting
to Rupees 89.605 million at various forums. These demands have been raised on account of various
issues, like refund of sales tax on purchases of furnace oil and diesel, non-provision of documents
against certain refund processing system objections and supplies made to certain parties. No provision
against the aforesaid demands has been made in these financial statements as the management is
confident of favourable outcome of its appeals based on advice of the legal counsel. The name of the
Company was selected by the FBR through balloting for audit of its sales tax record of tax year 2014. Writ
petition against the selection was filed and in pursuance of Court's order, the record was submitted to the
assessing officer. Based on the audit, Deputy Commissioner has issued a show cause notice on account
of alleged discrepancies/observations noted during audit to the tune of Rupees 7.480 million. The
Company is in the process of replying to the show cause notice and expects favourable outcome of the
matter, hence no provision has been recognized in these financial statements.
11.1.13 Being aggrieved, the Company is in appeal before ATIR against the order of CIR(A). The ACIR has
passed an order under section 122(5A) of the Income Tax Ordinance, 2001 for tax year 2013 whereby a
demand of Rupees 27.845 million has been raised. The appeal before CIR(A) has been decided and
some matters have been decided in favour of the Company. No provision against this demand has been
made in these financial statements as the Company is hopeful for a favourable outcome of appeal based
on the opinion of the tax advisor.

11.1.14 The Company has challenged, before Honourable Lahore High Court, Lahore, the vires of first proviso to
sub-clause (x) of clause (4) of SRO 491(1)/2016 dated 30 June 2016 issued under sections 3 and 4 read
with sections 8 and 71 of the Sales Tax Act, 1990 whereby through amendment in the earlier SRO
1125(I)/2011 dated 31 December 2011 adjustment of input sales tax on packing material of all sorts has
been disallowed. The Honourable Lahore High Court has issued stay order in favour of the Company.
Consequently, the Company has claimed input sales tax amounting to Rupees 80.269 million (2016:
Rupees Nil) paid on packing material in its respective monthly sales tax returns. The management, based
on advice of the legal counsel, is confident of favorable outcome of its appeal.
11.1.15 Guarantees of Rupees 329.388 million (2016: Rupees 347.051 million) have been issued by the banks of
the Company to Sui Northern Gas Pipelines Limited against gas connections, Shell Pakistan Limited
against purchase of furnace oil and Lahore Electric Supply Company Limited against electricity
connection.
11.1.16 Guarantees of Rupees 196 million (2016: Rupees 156 million) have been issued by the banks of the
Company to Director, Excise and Taxation, Karachi against disputed amount of infrastructure cess.
11.1.17 Post dated cheques have been issued to custom authorities in respect of duties amounting to Rupees
2,328.471 million (2016: Rupees 1,893.971 million) on imported material availed on the basis of
consumption and export plans. In the event the documents of exports are not provided on due dates,
cheque issued as security shall be encashable.
11.1.18 The Company has issued cross corporate guarantees of Rupees 14.12 billion (2016: Rupees 13.7 billion)
on behalf of NC Electric Company Limited - wholly-owned subsidiary company to secure the obligations
of subsidiary company towards its lenders.
11.2 Commitments
11.2.1 Contracts for capital expenditure amounting to Rupees 49.228 million (2016: Rupees 1,097.026 million).
11.2.2 Letters of credit other than for capital expenditure amounting to Rupees 1,318.171 million (2016: Rupees
764.750 million).
11.2.3 Outstanding foreign currency forward contracts of Rupees 4,940.270 million (2016: Rupees 4,109.245
million).
2017 2016
Rupees Rupees
12. FIXED ASSETS
Property, plant and equipment:
Operating fixed assets (Note 12.1) 11,719,057,304 9,417,927,801

Capital work-in-progress (Note 12.2) 253,210,935 37,263,352
11,972,268,239 9,455,191,153
Intangible asset:
Computer software (Note 12.1) 2,688,540 5,019,748
11,974,956,779 9,460,210,901
12.1 Reconciliations of carrying amounts of operating fixed assets and intangible asset at the beginning and at the end of the year are as follows:
Operating fixed assets Intangible asset

Description Freehold Buildings on Plant and Standby Electric Factory Furniture, fixture Office Motor Computer
Total
land freehold land machinery equipment installations equipment and equipment equipment vehicles software
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - -- - - - - - - - - - - - - - - - R u p e e s - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
At 30 June 2015
Cost 634,362,063 2,918,011,744 11,550,249,781 33,198,206 566,252,231 240,428,977 83,539,326 72,014,371 126,797,458 16,224,854,157 15,249,614
Accumulated depreciation / amortization - (982,713,906) (5,859,903,086) (20,868,426) (179,183,633) (110,658,010) (40,121,035) (28,943,598) (62,663,776) (7,285,055,470) (9,019,169)
Net book value 634,362,063 1,935,297,838 5,690,346,695 12,329,780 387,068,598 129,770,967 43,418,291 43,070,773 64,133,682 8,939,798,687 6,230,445
Year ended 30 June 2016

Opening net book value 634,362,063 1,935,297,838 5,690,346,695 12,329,780 387,068,598 129,770,967 43,418,291 43,070,773 64,133,682 8,939,798,687 6,230,445
Additions - 150,053,147 1,118,806,627 - 28,212,147 2,235,208 3,196,573 7,275,394 21,347,370 1,331,126,466 2,491,800
Disposals:
Cost - - (129,359,223) - - - - (803,021) (28,304,365) (158,466,609) -
Accumulated depreciation - - 83,155,212 - - - - 425,633 19,741,645 103,322,490 -
- - (46,204,011) - - - - (377,388) (8,562,720) (55,144,119) -
Depreciation / amortization charge - (101,907,517) (610,125,727) (1,187,780) (39,640,246) (13,111,891) (4,478,654) (4,615,682) (13,060,000) (788,127,497) (3,702,497)
Impairment loss - - (9,725,736) - - - - - - (9,725,736) -
Closing net book value 634,362,063 1,983,443,468 6,143,097,848 11,142,000 375,640,499 118,894,284 42,136,210 45,353,097 63,858,332 9,417,927,801 5,019,748
At 30 June 2016
Cost 634,362,063 3,068,064,891 12,539,697,185 33,198,206 594,464,378 242,664,185 86,735,899 78,486,744 119,840,463 17,397,514,014 17,741,414
Accumulated depreciation / amortization - (1,084,621,423) (6,386,873,601) (22,056,206) (218,823,879) (123,769,901) (44,599,689) (33,133,647) (55,982,131) (7,969,860,477) (12,721,666)
Accumulated impairment loss - - (9,725,736) - - - - - - (9,725,736) -
Net book value 634,362,063 1,983,443,468 6,143,097,848 11,142,000 375,640,499 118,894,284 42,136,210 45,353,097 63,858,332 9,417,927,801 5,019,748

Additions 81,893,956 129,112,396 3,017,136,527 - 43,933,009 16,913,161 23,537,322 10,926,853 28,802,128 3,352,255,352 3,868,748
Disposals:
Cost - (12,237,028) (590,180,000) - - (270,000) (6,000) (2,041,104) (19,268,774) (624,002,906) -
Accumulated impairment loss - - 9,725,736 - - - - - - 9,725,736 -
Accumulated depreciation - 152,963 368,174,877 - - 47,098 2,448 453,721 12,635,154 381,466,261 -
- (12,084,065) (212,279,387) - - (222,902) (3,552) (1,587,383) (6,633,620) (232,810,909) -
Depreciation / amortization charge - (101,323,842) (637,022,892) (1,187,780) (39,698,801) (12,838,738) (5,835,339) (5,047,067) (15,360,481) (818,314,940) (6,199,956)
At 30 June 2017
Cost 716,256,019 3,184,940,259 14,966,653,712 33,198,206 638,397,387 259,307,346 110,267,221 87,372,493 129,373,817 20,125,766,460 21,610,162
Net book value 716,256,019 1,999,147,957 8,310,932,096 9,954,220 379,874,707 122,745,805 59,834,641 49,645,500 70,666,359 11,719,057,304 2,688,540
Annual rate of depreciation / amortization (%) 5 10 10 10 10 10 10 20 30

51
2017
2017
52
12.1.1 Detail of operating fixed assets, exceeding the book value of Rupees 50,000, disposed of during the year is as follows:
Accumulated Accumulated
Description Qty Cost Net book value Sale proceeds Gain / (loss) Mode of disposal Particulars of purchasers
depreciation impairment loss
- - - - - - - - - - - - - - - - - - - - - - - - - Rupees - - - - - - - - - - - - - - - - - - - - - - - - -
Building
Building on 31-C Gulberg II, Lahore 1 12,237,028 (152,963) - 12,084,065 1,350,000 (10,734,065) Negotiation Mr. Sahib Zada Khan, Lahore

Plant and machinery
Rice Husk Boiler 1 82,278,117 (35,048,325) - 47,229,792 39,000,000 (8,229,792) Insurance Claim Adamjee Insurance Company Limited - associated company
Auto Cone Machine 2 4,706,597 (910,940) - 3,795,657 800,000 (2,995,657) Negotiation Sarhad Textile Mills Limited, Peshawar
Carding Machine 10 8,882,650 (1,572,451) 7,310,199 1,111,110 (6,199,089) Negotiation Fanz Spinning Mills (Private) Limited, Lahore
Ring Frame 12 9,952,877 (2,173,636) - 7,779,241 820,689 (6,958,552) Negotiation Ishaq Textile Mills Limited, Faisalabad
Carding Machine 13 11,547,444 (2,044,186) - 9,503,258 363,640 (9,139,618) Negotiation Mehtabi Spinning Mills, Shiekhupura
Picanol Air Jet 280 cm 7 25,270,013 (17,372,960) - 7,897,053 5,075,000 (2,822,053) Negotiation Yousaf Weaving Mills Limited, Lahore
Toyota Jat-710 280 cm 1 3,226,800 (2,455,732) 771,068 315,000 (456,068) Negotiation Decent Embroidery, Karachi
Auto Cone Machine 1 2,353,299 (455,471) - 1,897,828 475,000 (1,422,828) Negotiation Service Industries Limited, Lahore
Toyota Jat-710 280 cm 6 19,360,800 (14,734,392) - 4,626,408 1,890,000 (2,736,408) Negotiation Mr. Gulnar Hanif, Karachi
Ring Frame 10 8,294,064 (1,811,364) - 6,482,700 621,734 (5,860,966) Negotiation Yasin Cone Dying, Faisalabad
Auto Cone Machine 1 2,353,299 (455,470) - 1,897,829 200,000 (1,697,829) Negotiation Chenab Limited, Faisalabad
Auto Cone Machine 3 7,059,896 (1,366,410) - 5,693,486 1,200,000 (4,493,486) Negotiation Yasin Cone Dying, Faisalabad
Toyota Jat-710 340 cm 2 6,453,600 (4,674,978) - 1,778,622 630,000 (1,148,622) Negotiation Mr. Gulnar Hanif, Karachi
Toyota Jat-710 340 cm 12 38,721,600 (28,049,871) 10,671,729 3,780,000 (6,891,729) Negotiation Decent Embroidery, Karachi
Carding Machine 19 14,407,523 (2,437,816) (9,725,736) 2,243,971 2,272,750 28,779 Negotiation Waqas Rafique International, Kasur
Toyota Jat-710 280 cm 9 29,041,200 (21,817,171) - 7,224,029 2,835,000 (4,389,029) Negotiation Valitex (Private) Limited, Karachi
Toyota Jat-710 280 cm 3 9,680,400 (7,272,391) - 2,408,009 945,000 (1,463,009) Negotiation Decent Embroidery, Karachi
Picanol Air Jet 380 cm 12 44,780,296 (32,340,541) - 12,439,755 3,780,000 (8,659,755) Negotiation Valitex (Private) Limited, Karachi
Ring Frame 1 829,406 (181,136) - 648,270 68,393 (579,877) Negotiation Dynamic Spinning Mills (Private) Limited, Lahore
Picanol Air Jet 340 cm 3 10,841,537 (7,898,947) - 2,942,590 945,000 (1,997,590) Negotiation Yousaf Weaving Mills Limited, Lahore
Auto Cone Machine 1 2,353,299 (455,470) - 1,897,829 485,000 (1,412,829) Negotiation Dawood Spinning Mills (Private) Limited, Lahore
Picanol Air Jet 340 cm 16 58,844,656 (42,626,984) - 16,217,672 5,040,000 (11,177,672) Negotiation Panama International, Karachi
Picanol Air Jet 340 cm 2 7,355,582 (5,328,373) - 2,027,209 630,000 (1,397,209) Negotiation Jamal Fabrics (Private) Limited, Karachi
Ring Frame 10 8,294,064 (1,811,364) - 6,482,700 652,822 (5,829,878) Negotiation Waqas Rafique International, Kasur
Toyota Jat-710 340 cm 8 25,814,400 (18,699,814) 7,114,586 2,520,000 (4,594,586) Negotiation Mr. Gulnar Hanif, Karachi
Picanol Air Jet 340 cm 2 7,355,582 (5,328,373) - 2,027,209 630,000 (1,397,209) Negotiation Panama International, Karachi
Picanol Air Jet 340 cm 13 46,475,283 (33,676,693) - 12,798,590 4,095,000 (8,703,590) Negotiation Jamal Fabrics (Private) Limited, Karachi
Drawing Machine 3 2,739,880 (530,911) - 2,208,969 204,546 (2,004,423) Negotiation Ghulam Rasool Textile Mills, Faisalabad
Ring Frame 42 46,790,888 (42,034,743) - 4,756,145 3,589,745 (1,166,400) Negotiation Mr. Imran Munawar, Lahore
Wraping Machine 1 13,005,541 (11,137,530) - 1,868,011 1,350,000 (518,011) Negotiation Valitex (Private) Limited, Karachi
Sliver Can 120 1,290,037 (72,473) - 1,217,564 163,620 (1,053,944) Negotiation Waqas Rafique International, Kasur
Drawing Machine 6 2,920,229 (644,996) - 2,275,233 102,564 (2,172,669) Negotiation Tuseef Brothers, Faisalabad
Automatic Bale Plucker 1 1,200,000 (212,430) - 987,570 551,765 (435,805) Negotiation Fanz Spinning Mills (Private) Limited, Lahore
Ring Frame 7 23,321,392 (19,651,170) - 3,670,222 1,330,000 (2,340,222) Negotiation Ishaq Textile Mills Limited, Faisalabad
Drawing Frame 1 656,500 (67,344) - 589,156 72,727 (516,429) Negotiation Sarhad Textile Mills Limited, Peshawar
Blow Room Line 2 600,000 (97,485) - 502,515 1,522,728 1,020,213 Negotiation Ali Nawaz Textile (Private) Limited, Lahore
Drawing Frame 1 371,250 (75,309) - 295,941 371,250 75,309 Negotiation Mr. Liaqat Ali, Faisalabad
Lifter 1 750,000 (649,129) - 100,871 650,000 549,129 Negotiation Mr. Muhammad Akhlaq, Lahore
Office equipment
IPhone 6s 1 113,400 (13,750) - 99,650 33,500 (66,150) Company's policy Mr. Muhammad Asim (Ex-employee), Lahore
HP Probook Laptop 1 75,000 (2,500) - 72,500 52,500 (20,000) Insurance Claim Adamjee Insurance Company Limited - associated company
HP Laptop 1 86,729 (20,544) - 66,185 27,000 (39,185) Company's policy Mr. Waseem Jamal (Ex-employee), Lahore
Apple Iphone 1 85,000 (23,948) - 61,052 20,000 (41,052) Company's policy Ms. Nadia Bilal (employee), Lahore
HP Laptop 1 77,000 (21,231) - 55,769 18,500 (37,269) Company's policy Mr. Ali Iftikhar (employee), Lahore
HP Pavilion Laptop 1 67,369 (14,131) - 53,238 17,000 (36,238) Company's policy Mr. Zeeshan Akram (Ex-employee), Lahore
Factory equipment
Sliver Can 50 270,000 (47,098) - 222,902 68,175 (154,727) Negotiation J.A.Textile Mills Limited, Faisalabad
Motor vehicles
Honda City LEF-15-8501 1 1,715,685 (520,663) - 1,195,022 1,715,685 520,663 Company's policy Mr. Mir Asim (Ex-employee), Lahore
Toyata Corolla LED-11-9874 1 1,927,980 (1,268,086) - 659,894 660,000 106 Company's policy Ms. Nadia Bilal (employee), Lahore
Honda Civic LED-11-9827 1 1,912,995 (1,300,618) - 612,377 1,300,000 687,623 Negotiation Mr. Hafiz Aasim Hassan, Lahore
Honda Civic LEC-11-9972 1 1,859,685 (1,252,884) - 606,801 606,802 1 Company's policy Ms. Faiza Jabeen (employee), Lahore
Suzuki APV LED-10-3528 1 1,859,695 (1,323,518) - 536,177 1,302,000 765,823 Negotiation Mr. Ghulam Mustafa, Lahore
Toyota Hilux LES-11-8232 1 1,606,074 (1,092,468) - 513,606 1,365,000 851,394 Negotiation Mr. Zeshan Pasha Khan, Rawalpindi
Toyota Corolla LEC-10-2566 1 1,839,002 (1,379,269) - 459,733 1,200,000 740,267 Negotiation Mr. Jawaid Haider, Lahore
Suzuki Cultus LEC-12-2571 1 968,000 (592,422) - 375,578 665,000 289,422 Negotiation Mr. Arshad Farooq, Bahawalnagar
Suzuki Cultus LEA-11-9892 1 934,135 (615,780) - 318,355 680,000 361,645 Negotiation Mr. Umar Farooq, Lahore
Suzuki Cultus LED-10-7429 1 911,560 (615,323) - 296,237 636,600 340,363 Negotiation Mr. Muhammad Shahbaz, Lahore
Suzuki Cultus LED-10-2433 1 906,226 (629,119) - 277,107 610,000 332,893 Negotiation Mr. Jawaid Haider, Lahore
Suzukin Mehran LEC-12-7628 1 637,320 (368,310) - 269,010 285,931 16,921 Company's policy Mr. Nadeem Khan (employee), Lahore
Suzuki Cultus LEC-10-7433 1 880,314 (635,093) - 245,221 530,000 284,779 Negotiation Mr. Jawaid Haider, Lahore
Suzuki Mehran LEC-10-7616 1 544,330 (401,889) - 142,441 231,264 88,823 Company's policy Mr. Zahid Maqsood (employee), Lahore
Hyundai Shezore LZR 8925 1 667,773 (584,243) - 83,530 960,000 876,470 Negotiation Mr. Hafeez-Ullah, Sargodha
Aggregate of other items of operating fixed assets

with individual book values not exceeding Rupees
50,000 1,640,605 (415,632) - 1,224,973 380,772 (844,201)
624,002,906 (381,466,261) (9,725,736) 232,810,909 105,805,812 (127,005,097)

53
2017
2017 2016
Rupees Rupees
12.1.2 The depreciation charge for the year has been allocated as follows:
Cost of sales (Note 24) 811,924,755 782,331,926

Administrative expenses (Note 26) 6,390,185 5,795,571
818,314,940 788,127,497
12.1.3 Amortization on intangible asset amounting to Rupees 6.199 million (2016: Rupees 3.702 million) has been
allocated to administrative expenses.
12.2 Capital work-in-progress
Civil works on freehold land 74,926,573 2,542,345

Mobilization advances 987,035 12,287,452
Letters of credit 30,070,002 11,932,043
Advances for capital expenditures 147,227,325 10,501,512
253,210,935 37,263,352
13. INVESTMENTS IN SUBSIDIARY COMPANIES - AT COST
Nishat Chunian Power Limited - quoted (Note 13.1)

187,585,820 (2016: 187,585,820) fully paid ordinary shares
of Rupees 10 each. Equity held 51.07% (2016: 51.07%) 1,875,858,200 1,875,858,200
Nishat Chunian USA Inc. - unquoted
10 (2016: 10) fully paid shares with no par value per share
Equity held 100% (2016: 100%) 10,823,000 10,823,000
NC Electric Company Limited - unquoted (Note 13.2)
50,000 (2016: 50,000) fully paid ordinary shares of Rupees 10 each
Equity held 100% (2016: 100%) 500,000 500,000
Advance for purchase of shares 1,461,809,323 1,173,371,822
1,462,309,323 1,173,871,822
NC Entertainment (Private) Limited - unquoted (Note 13.2)
400 (2016: 400 ) fully paid ordinary shares of Rupees 10 each
Equity held 100% (2016: 100%) 4,000 4,000
Advance for purchase of shares 553,235,993 352,235,993
553,239,993 352,239,993
3,902,230,516 3,412,793,015
13.1 The Company has pledged 187,346,939 (2016: 187,346,939) ordinary shares to lenders of Nishat Chunian
Power Limited for the purpose of securing finance.
13.2 3 ordinary shares of NC Electric Company Limited and 2 ordinary shares of NC Entertainment (Private) Limited
are in the name of directors of respective companies nominated by the Company.
14. LONG TERM LOANS TO EMPLOYEES

Considered good:
Executives (Notes 14.1 and 14.2) 18,692,306 16,702,768
Other employees (Note 14.2) - 317,768
18,692,306 17,020,536
Less: Current portion shown under current assets (Note 18)
Executives 2,806,347 1,760,877
Other employees - 317,768
2,806,347 2,078,645
2017 54 Nishat (Chunian) Limited 15,885,959 14,941,891
2017 2016
Rupees Rupees
14.1 Reconciliation of carrying amount of loans to executives:

Add: Disbursements 4,333,420 13,678,175
Less: Repayments 2,343,882 4,188,098
14.1.1 Maximum aggregate balance due from executives at the end of any month during the year was Rupees
18.692 million (2016: Rupees 16.702 million).
14.2 These represent motor vehicle loans and house building loans to executives, payable in 36 to 48 and 96
monthly instalments respectively. Interest on long term loans ranged from 4.63% to 8.12% (2016: 4.63% to
8.12%) per annum while some loans are interest free. Motor vehicle loans are secured against registration of
cars in the name of the Company, whereas house building loans are secured against balance standing to the
credit of employee in the provident fund trust account.
14.3 The fair value adjustment in accordance with the requirements of IAS 39 'Financial Instruments: Recognition
and Measurement' arising in respect of staff loans is not considered material and hence not recognized.
2017 2016
Rupees Rupees
15. STORES, SPARE PARTS AND LOOSE TOOLS
Stores 325,819,342 432,566,483

Spare parts 211,203,117 295,566,465
Loose tools 43,042,259 52,951,507
580,064,718 781,084,455
16. STOCK-IN-TRADE
Raw materials 6,831,007,143 5,566,727,586

Work-in-process 681,950,465 664,745,190
Finished goods 1,058,655,750 581,318,344
Waste 78,504,641 45,165,814
8,650,117,999 6,857,956,934
16.1 Stock-in-trade of Rupees 161.563 million (2016: Rupees 95.321 million) is being carried at net realizable
16.2 The aggregate amount of write-down of inventories to net realizable value recognized as an expense during
the year was Rupees 6.501 million (2016: Rupees Nil).
16.3 This includes stock of Rupees 28.426 million (2016: Rupees 7.135 million) sent to outside parties for
processing.
17. TRADE DEBTS
Considered good:
Secured:
- Others 4,356,277,736 4,544,021,449
Unsecured:
- Nishat Chunian USA Inc. - subsidiary company 507,035,834 571,079,631
- Nishat Mills Limited - related party 69,615,588 55,842,848
- Others 240,403,474 27,946,893
817,054,896 654,869,372
5,173,332,632 5,198,890,821
17.1 As at 30 June 2017, trade debts due from other than related parties of Rupees 24.118 million (2016: Rupees
18.471 million) were past due but not impaired. These relate to a number of independent customers from
whom there is no recent history of default. The age analysis of these trade debts is as follows:
2017 2016
Rupees Rupees
Upto 1 month 3,364,584 15,046,498

1 to 6 months 3,115,607 1,228,398
More than 6 months 17,637,926 2,195,729
24,118,117 18,470,625
17.2 As at 30 June 2017, trade debts due from related parties amounting to Rupees 37.425 million (2016: Rupees
32.726 million) were past due but not impaired. The age analysis of these trade debts is as follows:
Upto 1 month 37,425,050 32,666,239

1 to 6 months - 3,348
More than 6 months - 56,544
37,425,050 32,726,131
18. LOANS AND ADVANCES
Considered good:
Employees - interest free:
- Executives 14,445,336 8,991,204
- Other employees 8,650,520 4,766,389
23,095,856 13,757,593
Current portion of long term loans to employees (Note 14) 2,806,347 2,078,645
Advances to suppliers (Note 18.1) 589,447,921 426,690,329
Short term loans to subsidiary companies (Note 18.2) 783,492,238 -
Advances to contractors 972,313 719,295
1,627,217,961 1,010,817,219
18.1 It includes advances amounting to Rupees 0.486 million (2016: Rupees 1.140 million) to D.G. Khan Cement
Company Limited - related party and Rupees 0.743 million (2016: Rupees Nil) to Adamjee Insurance
Company Limited - associated company.
18.2 These represent amounts due from following subsidiary companies:
2017 2016
Rupees Rupees
Nishat Chunian Power Limited (Note 18.2.1) 350,000,000 -

NC Electric Company Limited (Note 18.2.1) 423,492,238 -
NC Entertainment (Private) Limited (Note 18.2.1) 10,000,000 -
783,492,238 -
18.2.1 Return on these loans is 3 months KIBOR + 2% or weighted average borrowing cost of the Company,
whichever is higher and these loans are repayable within one year from the date of disbursement.

2017 2016
Rupees Rupees
19. OTHER RECEIVABLES
Considered good:
Sales tax recoverable 1,080,894,415 1,024,221,789
Advance income tax - net 1,043,288,570 781,830,258
Export rebate and claims 77,572,321 110,106,713
Duty drawback receivable 341,479,236 -
Fair value of forward exchange contracts - 45,758,252
Receivable from employees' provident fund trust 32,479,681 17,287,545
Due from subsidiary companies (Note 19.1) - 35,635,254
Miscellaneous (Note 19.2) 21,956,823 60,268,818
2,597,671,046 2,075,108,629
19.1 It includes Rupees Nil (2016: Rupees 35.483 million) and Rupees Nil (2016: Rupees 0.152 million) due from
NC Electric Company Limited - subsidiary company and NC Entertainment (Private) Limited - subsidiary
company respectively, in the ordinary course of business and are interest free.
19.2 It includes Rupees 0.699 million (2016: Rupees 3.753 million) receivable from Adamjee Insurance Company
Limited - associated company.
20. ACCRUED INTEREST
On short term loans to:
Nishat Chunian Power Limited - subsidiary company 78,054 -
NC Electric Company Limited - subsidiary company 4,237,905 -
NC Entertainment (Private) Limited - subsidiary company 167,466 -
4,483,425 -
21. SHORT TERM INVESTMENTS
Held-to-maturity
Term deposit receipts (Note 21.1) 20,660,226 -
Add: Accrued interest 1,106,721 -
21,766,947 -
21.1 These represent deposits under lien with the bank of the Company against bank guarantees of the same
amount issued by the bank to Sui Northern Gas Pipelines Limited against gas connections. Interest on term
deposit receipts ranges from 5.34% to 5.94% (2016: 5.85% to 6.87%) per annum. The maturity period of
these term deposit receipts is one year.
22. CASH AND BANK BALANCES
Cash with banks:
On saving accounts (Note 22.1)
Including US$ 14,444 (2016: US$ 14,424) 1,521,722 7,182,797
On current accounts (Note 22.2)
Including US$ 44,338 (2016: US$ 22,240) 41,508,643 35,945,218
43,030,365 43,128,015
Cash in hand 1,518,996 5,539,508
44,549,361 48,667,523
22.1 Rate of profit on saving accounts ranges from 3.11% to 4.75% (2016: 3.75% to 6.88%) per annum.
22.2 Included in cash with banks on current accounts are Rupees 12.379 million (2016: Rupees 3.924 million) with
MCB Bank Limited - associated company. Nishat (Chunian) Limited 57 2017
2017 2016
Rupees Rupees
23. REVENUE
Export sales 17,523,174,149 17,581,068,059

Local sales (Note 23.1) 11,660,194,920 7,784,887,896
Processing income 240,842,283 383,742,300
Export rebate 39,529,905 49,423,298
Duty drawback 352,253,015 -
29,815,994,272 25,799,121,553
23.1 Local sales
Sales (Note 23.1.1) 11,663,888,889 8,008,844,257

Less: Sales tax 3,693,969 223,956,361
11,660,194,920 7,784,887,896
23.1.1 Local sales includes waste sales of Rupees 726.961 million (2016: Rupees 510.209 million).
24. COST OF SALES
Raw materials consumed (Note 24.1) 19,522,701,235 16,087,598,110

Packing materials consumed 845,732,666 803,855,260
Stores, spare parts and loose tools consumed 916,548,416 896,968,213
Processing charges 103,057,986 125,739,895
Salaries, wages and other benefits (Note 24.2) 2,202,361,610 2,027,084,461
Fuel and power 2,541,860,467 2,173,684,091
Insurance 41,212,846 41,802,008
Postage and telephone 838,002 784,855
Travelling and conveyance 18,971,324 17,533,603
Vehicles' running and maintenance 21,230,302 21,414,111
Entertainment 7,285,903 5,757,878
Depreciation on operating fixed assets (Note 12.1.2) 811,924,755 782,331,926
Repair and maintenance 336,060,035 312,261,182
Other factory overheads 74,296,834 67,239,816
27,444,082,381 23,364,055,409
Work-in-process
Opening stock 664,745,190 440,237,780
Closing stock (681,950,465) (664,745,190)
(17,205,275) (224,507,410)
Cost of goods manufactured 27,426,877,106 23,139,547,999
Finished goods and waste - opening stocks
Finished goods 581,318,344 796,579,213
Waste 45,165,814 33,960,725
626,484,158 830,539,938
28,053,361,264 23,970,087,937
Finished goods and waste - closing stocks
Finished goods (1,058,655,750) (581,318,344)
Waste (78,504,641) (45,165,814)
(1,137,160,391) (626,484,158)
26,916,200,873 23,343,603,779
2017 2016
Rupees Rupees
24.1 Raw materials consumed
Opening stock 5,566,727,586 4,748,044,323

Add: Purchased during the year 20,786,980,792 16,906,281,373
26,353,708,378 21,654,325,696
Less: Closing stock (6,831,007,143) 5,566,727,586
19,522,701,235 16,087,598,110
24.2 Salaries, wages and other benefits include Rupees 16.952 million (2016: Rupees 14.311 million) and Rupees
39.561 million (2016: Rupees 36.400 million) in respect of accumulating compensated absences and
provident fund contribution by the Company respectively.
25. DISTRIBUTION COST
Salaries and other benefits (Note 25.1) 82,684,060 70,672,742

Ocean freight 96,664,451 105,133,614
Freight and octroi 90,459,446 96,447,113
Forwarding and other expenses 160,347,738 197,003,139
Export marketing expenses 149,997,190 134,252,675
Commission to selling agents 133,361,407 134,658,978
713,514,292 738,168,261
25.1 Salaries and other benefits include Rupees 3.882 million (2016: Rupees 3.374 million) and Rupees 3.854
million (2016: 3.390 million) in respect of accumulating compensated absences and provident fund
contribution by the Company respectively.
2017 2016
Rupees Rupees
26. ADMINISTRATIVE EXPENSES

Printing and stationery 3,491,940 2,508,396
Vehicles' running and maintenance - net 2,145,527 1,409,925
Postage and telephone - net 4,022,785 4,885,553
Fee and subscription 5,312,814 7,538,674
Legal and professional (Note 26.2) 12,830,815 10,016,753
Electricity and sui gas - net 1,581,927 494,710
Insurance 3,216,017 2,993,735
Repair and maintenance - net 5,152,194 681,851
Entertainment 5,215,031 5,645,236
Amortization on intangible asset (Note 12.1.3) 6,199,956 3,702,497
Miscellaneous - net 45,815,245 2,977,405
235,449,218 168,988,341
26.1 Salaries and other benefits include Rupees 3.002 million (2016: Rupees 2.666 million) and Rupees 3.411
million (2016: Rupees 2.559 million) in respect of accumulating compensated absences and provident fund
contribution by the Company respectively. Nishat (Chunian) Limited 59 2017
2017 2016
Rupees Rupees
26.2 Legal and professional charges include the following in respect of

auditors' remuneration for:
Audit fee 1,591,150 1,446,500

Half yearly review 450,000 364,000
Certification fees 125,000 100,000
Reimbursable expenses 177,000 167,200
2,343,150 2,077,700
27. OTHER EXPENSES

Donations (Note 27.1) 358,227 115,577
Net exchange loss - 1,347,976
Loss on disposal of operating fixed assets (Note 12.1.1) 127,005,097 -
Impairment loss on operating fixed assets (Note 12.1) - 9,725,736
199,858,212 96,432,497
27.1 Donations
This includes donations amounting to Rupees 0.251 million (2016: Rupees 0.052 million) to Mian Muhammad
Yahya Trust, 31-Q, Gulberg II, Lahore in which Mr. Shahzad Saleem, Chief Executive, Mr. Aftab Ahmad Khan,
Director and Mrs. Farhat Saleem, Director are trustees and Rupees 0.023 million (2016: Rupees 0.003 million)
to Saleem Memorial Trust Hospital, 31-Q, Gulberg II, Lahore in which Mr. Shahzad Saleem, Chief Executive
and Mrs. Farhat Saleem, Director are directors.
2017 2016
Rupees Rupees
28. OTHER INCOME
Income from financial assets
Return on bank deposits 1,186,625 183,813

Credit balances written back 15,029 -
Net exchange gain 153,873,433 -
Income from investment in subsidiary company
Dividend income from Nishat Chunian Power Limited 891,032,645 1,125,514,920
Income from loans to subsidiary companies

Interest income on short term loans (Note 18) 8,172,846 -
Income from non-financial assets
Gain on disposal of operating fixed assets (Note 12.1.1) - 13,636,790

Sale of scrap 45,736,683 42,941,064
Reversal of provision for workers' welfare fund (Note 28.1) 21,681,803 -
Miscellaneous 702,790 8,442,325
1,122,401,854 1,190,718,912
28.1 Provisions for workers' welfare fund recognized in prior years have been reversed during the year in view of
judgement of Honourable Supreme Court of Pakistan announced on 10 November 2016 declaring
amendments made in Worker Welfare Ordinance, 1971 through Finance Acts 2006 and 2008 to be unlawful
and ultra vires the Constitution of the Islamic Republic of Pakistan, 1973.
2017 2016
Rupees Rupees
29. FINANCE COST
Mark-up on:
- long term loans 229,269,366 314,227,287

- long term musharaka 20,389,096 20,396,273
- redeemable capital - 921,458
- short term running finances 163,788,338 175,448,159
- export finances - Preshipment / SBP refinances 150,688,544 198,496,615
- short term finances - others 429,983,510 215,010,630
Interest on workers' profit participation fund (Note 7.2) 12,217,220 6,602,743
Bank charges and commission 88,387,080 98,526,213
1,094,723,154 1,029,629,378
30. TAXATION
Current (Note 30.1) 157,318,525 284,243,516
30.1 Provision for current taxation represents minimum tax on local sales, final tax on export sales, super tax and
tax on income from other sources at applicable rates. Reconciliation of tax expense and product of
accounting profit multiplied by the applicable tax rate has not been presented, being impracticable.
2017 2016
Rupees Rupees
30.2 Deferred income tax asset
The asset for deferred income tax originated due to timing differences
relating to:
Taxable temporary difference

Accelerated tax depreciation (344,873,494) (157,961,488)
Deductible temporary differences
Available tax losses 922,792,379 786,425,685
Amortization on intangible asset 352,047 115,848
923,144,426 786,541,533
Deferred income tax asset 578,270,932 628,580,045
Deferred income tax asset not recognized in these financial (578,270,932) (628,580,045)
Deferred income tax asset recognized in these financial statements - -
30.2.1 Deferred income tax asset of Rupees 578.271 million (2016: Rupees 628.580 million) has not been
recognized in these financial statements as the Company's management believes that sufficient taxable
profits will not be probably available in foreseeable future, hence, the temporary differences may not reverse.

30.3 The Company has carry forwardable tax losses of Rupees 3,076 million (2016: Rupees 2,621 million).
2017 2016
31. EARNINGS PER SHARE - BASIC AND DILUTED
Profit after taxation attributable to ordinary shareholders (Rupees) 1,621,331,852 1,328,774,693
Weighted average number of ordinary shares outstanding during the
year (Number) 240,221,556 237,862,307
Basic earnings per share (Rupees) 6.75 5.59
31.1 There is no dilutive effect on basic earnings per share for the year ended 30 June 2017 and 30 June 2016 as
the Company has no potential ordinary shares as on 30 June 2017 and 30 June 2016.
2017 2016
Rupees Rupees
32. CASH GENERATED FROM OPERATIONS
Profit before taxation 1,778,650,377 1,613,018,209
Adjustments for non-cash charges and other items:

Depreciation on operating fixed assets 818,314,940 788,127,497
Amortization on intangible asset 6,199,956 3,702,497
Impairment loss on operating fixed assets - 9,725,736
Loss/(gain) on disposal of operating fixed assets 127,005,097 (13,636,790)
Dividend income (891,032,645) (1,125,514,920)
Finance cost 1,094,723,154 1,029,629,378
Return on bank deposits (1,186,625) (183,813)
Interest income on short term loans to subsidiary companies (8,172,846) -
Credit balances written back (15,029) -
Reversal of provision for workers' welfare fund (Note 28) (21,681,803) -
Working capital changes (Note 32.1) (2,087,177,900) (1,292,816,542)
815,626,676 1,012,051,252
32.1 Working capital changes
(Increase) / decrease in current assets:
Stores, spare parts and loose tools 201,019,737 (132,720,544)

Stock-in-trade (1,792,161,065) (839,134,893)
Trade debts 25,558,189 (440,727,298)
Loans and advances 167,819,198 (165,525,285)
Short term prepayments (5,336,047) (670,454)
Other receivables (261,104,105) (405,465,419)
(1,664,204,093) (1,984,243,893)
(Decrease) / increase in trade and other payables (422,973,807) 691,427,351
(2,087,177,900) (1,292,816,542)

33. REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES
Aggregate amount charged in the financial statements for the year for remuneration including certain benefits to
the chief executive, directors and executives of the Company is as follows:
Chief Executive Directors Executives

2017 2016 2017 2016 2017 2016
--------------------------- Rupees ---------------------------
Managerial remuneration 4,600,000 4,600,000 - - 99,433,677 75,443,416

Contribution to provident fund - - - - 8,282,825 6,277,773
House rent 1,840,000 1,840,000 - - 39,773,471 30,177,366
Utilities 460,000 460,000 - - 9,943,368 7,544,342
Others 1,183,430 1,992,864 - - 12,795,742 15,122,357
8,083,430 8,892,864 - - 170,229,083 134,565,254
Number of persons 1 1 - - 95 75
33.1 The Company provides to chief executive, directors and certain executives with free use of Company
maintained cars and residential telephones.
33.2 Aggregate amount charged in these financial statements for meeting fee to five (2016: seven) directors was
Rupees 360,000 (2016: Rupees 320,000).
33.3 No remuneration was paid to non-executive directors of the Company.
34. TRANSACTIONS WITH RELATED PARTIES
Related parties comprise subsidiary companies, associated undertakings, other related companies, key
management personnel and post employment benefit plan. The Company in the normal course of business
carried out transactions with various related parties. Details of transactions with related parties, other than those
which have been specifically disclosed elsewhere in these financial statements are as follows:
2017 2016
Rupees Rupees
Subsidiary companies
Common facilities cost charged 19,200,000 19,200,000
Dividend income 891,032,645 1,125,514,920
Purchase of fixed assets 91,000,000 -
Sale of goods 1,373,699,115 1,877,334,000
Purchase of electricity and steam 805,389,330 -
Investments made 489,437,501 315,667,789
Interest income 8,172,846 -
Short term loans made 7,384,500,000 -
Repayment / adjustment of short term loans made 6,601,007,762 -
Associated undertakings - -
Insurance premium paid 78,161,911 77,786,126

Insurance claims received 15,435,865 22,405,636
Other related parties
Purchase of goods 62,256,073 35,762,623
Sale of goods 1,459,639,336 810,721,648
Dividend paid 99,909,850 59,945,910
Company's contribution to employees' provident fund trust 46,826,164 42,348,654
35. PROVIDENT FUND RELATED DISCLOSURES
The following information is based on audited financial statements of the provident fund for the years ended 30 June
2017 and 30 June 2016:
2017 2016
Rupees Rupees
Size of the fund - Total assets 430,885,554 362,073,888

Cost of investments 382,052,828 326,332,489
Fair value of investments 393,810,353 343,275,220
Percentage of investments made 91.40% 94.81%
35.1 The break-up of fair value of investments is as follows:
2017 2016 2017 2016

Percentage Rupees Rupees
Deposits with banks 0.03% 0.79% 106,329 2,713,939

Treasury bills 77.64% 89.45% 305,758,380 307,050,071
Term deposit receipts 4.86% - 19,147,968 -
Mutual funds - open end 15.54% 7.52% 61,183,701 25,829,302
Listed securities 1.93% 2.24% 7,613,975 7,681,908
100% 100% 393,810,353 343,275,220
35.2 As at the reporting date, the Nishat (Chunian) Limited - Employees Provident Fund is in the process of
regularizing its investment in accordance with section 218 of the Companies Act, 2017 and the rules
formulated for this purpose in terms of SRO 770(1)/2016 issued by Securities and Exchange Commission of
Pakistan on 17 August 2016 which allows transition period of two years for bringing the Employees
Provident Fund in conformity with the requirements of rules.
2017 2016
36. NUMBER OF EMPLOYEES
Number of employees as on 30 June 6,437 6,085
Average number of employees during the year 6,249 6,228

37. SEGMENT INFORMATION
Spinning Weaving
Dyeing Home Tex�le Power Genera�on Elimina�on of inter-segment transac�ons Total - Company
Zone-1 (1,5)* Zone-2 (4,7,8)* Zone-3 (2,3,6) Unit-1 (1,2) Unit-2 (3,4,5)
2017 2016 (Restated) 2017 2016 (Restated) 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Rupe e s - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Sales
External
- Export 4,122,159,476 4,482,963,569 840,484,056 889,785,934 2,289,060,971 2,621,554,114 - - 2,800,733,496 2,749,022,447 931,500,663 712,256,428 6,931,018,407 6,174,908,861 - - - - 17,914,957,069 17,630,491,353
- Local 824,099,786 929,380,725 3,613,752,624 1,940,224,952 4,113,418,009 3,149,777,827 2,720,959,176 1,421,607,098 141,022,252 192,160,475 326,820,734 470,926,758 160,964,622 64,552,365 - - - - 11,901,037,203 8,168,630,200
4,946,259,262 5,412,344,294 4,454,236,680 2,830,010,886 6,402,478,980 5,771,331,941 2,720,959,176 1,421,607,098 2,941,755,748 2,941,182,922 1,258,321,397 1,183,183,186 7,091,983,029 6,239,461,226 - - - - 29,815,994,272 25,799,121,553
Inter-segment 137,229,367 117,805,574 381,345,923 306,977,564 1,545,953,978 1,581,188,387 2,539,828,235 2,967,905,319 - - 5,177,580,781 4,703,491,417 - - 2,210,221,210 2,109,506,227 (11,992,159,494) (11,786,874,488) - -
5,083,488,629 5,530,149,868 4,835,582,603 3,136,988,450 7,948,432,958 7,352,520,328 5,260,787,411 4,389,512,417 2,941,755,748 2,941,182,922 6,435,902,178 5,886,674,603 7,091,983,029 6,239,461,226 2,210,221,210 2,109,506,227 (11,992,159,494) (11,786,874,488) 29,815,994,272 25,799,121,553
Cost of sales (4,677,230,413) (5,270,642,313) (4,449,136,344) (2,989,782,275) (7,313,216,391) (7,007,496,299) (4,923,791,721) (4,082,668,601) (2,753,312,663) (2,735,582,914) (6,147,266,940) (5,656,457,503) (6,406,724,512) (5,400,141,151) (2,237,681,384) (1,987,707,211) 11,992,159,494 11,786,874,488 (26,916,200,873) (23,343,603,779)
Gross profit / (loss) 406,258,216 259,507,555 386,446,259 147,206,175 635,216,567 345,024,029 336,995,690 306,843,816 188,443,085 205,600,008 288,635,238 230,217,100 685,258,517 839,320,075 (27,460,174) 121,799,016 - - 2,899,793,399 2,455,517,774
Distribu�on cost (69,077,264) (100,563,549) (65,708,579) (57,044,872) (108,007,717) (133,702,622) (77,244,037) (66,231,124) (47,379,799) (46,912,237) (41,083,498) (36,708,524) (303,442,697) (297,005,333) (1,570,701) - - - (713,514,292) (738,168,261)
Administra�ve expenses (19,922,038) (9,605,075) (18,950,502) (5,448,497) (31,149,668) (12,770,268) (27,824,819) (22,548,438) (17,067,135) (15,971,307) (32,987,114) (28,985,787) (87,502,326) (70,965,204) (45,616) (2,693,765) - - (235,449,218) (168,988,341)
(88,999,302) (110,168,624) (84,659,081) (62,493,369) (139,157,385) (146,472,891) (105,068,856) (88,779,562) (64,446,934) (62,883,544) (74,070,612) (65,694,311) (390,945,023) (367,970,537) (1,616,317) (2,693,765) - - (948,963,510) (907,156,602)
Profit / (loss) before taxa�on and unallocated

income and expenses 317,258,915 149,338,931 301,787,178 84,712,806 496,059,182 198,551,138 231,926,834 218,064,254 123,996,151 142,716,464 214,564,626 164,522,789 294,313,494 471,349,538 (29,076,491) 119,105,251 - - 1,950,829,889 1,548,361,172
Unallocated income and expenses

Other expenses (199,858,212) (96,432,497)
Other income 1,122,401,854 1,190,718,912
Finance cost (1,094,723,154) (1,029,629,378)
Taxa�on (157,318,525) (284,243,516)
Profit a�er taxa�on 1,621,331,852 1,328,774,693
* This relates to 2017 only.
37.1 Reconciliation of reportable segment assets and liabilities

Spinning Weaving
Dyeing Home Textile Power Generation Total - Company
Zone - 1 Zone - 2 Zone - 3 Unit - 1 Unit - 2
2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Rupees - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Total assets for reportable segments 4,306,885,614 3,653,779,951 5,263,971,306 4,465,731,051 6,380,571,280 5,413,007,334 2,125,864,648 1,640,560,744 1,188,752,569 1,099,254,036 3,440,839,578 2,949,613,339 2,327,226,385 1,966,408,892 1,628,915,109 1,536,888,249 26,663,026,489 22,725,243,596
Unallocated assets:
Investments in subsidiary companies 3,902,230,516 3,412,793,015
Other receivables 2,597,671,046 2,075,108,629
Short term investments 21,766,947 -
Cash and bank balances 44,549,361 48,667,523
Other corporate assets 1,393,358,441 622,183,035
Total assets as per balance sheet 34,622,602,800 28,883,995,798
Total liabilities for reportable segments 82,032,627 134,133,151 100,262,100 163,940,518 121,529,818 198,715,780 65,073,792 177,552,567 36,388,317 118,968,699 383,708,728 359,016,307 255,805,818 239,344,205 315,771,368 290,697,259 1,360,572,568 1,682,368,486
Unallocated liabilities:
Long term financing 5,651,663,000 3,661,105,000
Accrued mark-up 194,237,156 142,984,217
Short term borrowings 15,236,786,649 12,120,082,522
Other corporate liabilities 171,368,644 290,258,752
Total liabilities as per balance sheet 22,614,628,017 17,896,798,977
37.2 Geographical information
The Company's revenue from external customers by geographical location is detailed below:
2017 2016
Rupees Rupees
Europe 3,885,229,500 3,482,993,461
Asia, Africa and Australia 9,361,046,070 9,941,641,081
United States of America, Canada and South America 4,276,590,206 4,156,433,517
Pakistan 12,293,128,496 8,218,053,494
29,815,994,272 25,799,121,553
37.3 All non-current assets of the Company as at reporting dates are located and operating in Pakistan.
37.4 Revenue from major customers
The Company's revenue is earned from a large mix of customers.
65
2017 2016
38. PLANT CAPACITY AND ACTUAL PRODUCTION
Spinning
Number of spindles installed 222,708 209,652
Number of spindles worked 212,164 183,917
Number of shifts per day 3 3
Capacity after conversion into 20/1 count (Kgs.) 66,097,519 66,165,532
Actual production of yarn after conversion into 20/1 count (Kgs.) 65,120,709 65,187,716
Under utilization of available capacity was due to normal maintenance and time lost in shifting of coarser counts to
finer counts and vice versa.
Weaving
Number of looms installed 363 361
Number of looms worked 363 361
Capacity after conversion into 50 picks - square yards 249,955,829 231,560,698
Actual production after conversion into 50 picks - square yards 217,086,638 203,167,378
Under utilization of available capacity was due to the following reasons:
- change of articles required
- higher count and cover factor
- due to normal maintenance
Power plant
Number of engines installed 22 22
Number of engines worked 22 22
Generation capacity (KWh) 358,110,720 358,110,720
Actual generation (KWh) 170,935,553 144,646,322
Under utilization of available capacity was due to normal maintenance and demand.
Dyeing
Number of thermosol dyeing machines 1 1
Number of stenters machines 4 3
Capacity in meters 31,800,000 30,800,000
Actual processing of fabrics - meters 29,104,022 27,480,338
Under utilization of available capacity was due to normal maintenance and power outages.
Printing
Number of printing machines 1 1
Actual processing was in excess of rated capacity due to processing of less complex designs.
Digital printing
Actual processing of fabrics - meters 76,419 400,911
Stitching
The plant capacity of this division is indeterminable due to multi product plant involving varying run length of order lots.
39. FINANCIAL RISK MANAGEMENT
39.1 Financial risk factors
The Company's activities expose it to a variety of financial risks: market risk (including currency risk, other price risk
and interest rate risk), credit risk and liquidity risk. The Company's overall risk management programme focuses on
the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company's financial
performance. The Company uses derivative financial instruments to hedge certain risk exposures.
Risk management is carried out by the Company's finance department under policies approved by the Board of
Directors. The Company's finance department evaluates and hedges financial risks. The Board provides principles for
overall risk management, as well as policies covering specific areas such as currency risk, other price risk, interest
rate risk, credit risk, liquidity risk, use of derivative financial instruments and non-derivative financial instruments and
investment of excess liquidity.
(a) Market risk
(i) Currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in foreign exchange rates. Currency risk arises mainly from future commercial transactions or receivables
and payables that exist due to transactions in foreign currencies.
The Company is exposed to currency risk arising from various currency exposures, primarily with respect to the
United States Dollar (USD) and Euro. Currently, the Company's foreign exchange risk exposure is restricted to
bank balances, borrowings and the amounts receivable / payable from / to the foreign entities. The Company
uses forward exchange contracts to hedge its foreign currency risk, when considered appropriate. The
Company's exposure to currency risk was as follows:
2017 2016
Cash at banks - USD 58,782 36,664
Trade debts - USD 33,347,608 44,855,643
Trade debts - EURO 585,194 247,558
Trade and other payables - USD (270,937) (1,718,908)
Trade and other payables - EURO (23,649) (40,496)
Short term borrowings - USD (8,410,094) (8,043,596)
Accrued mark-up - USD (54,186) (42,195)
Net exposure - USD 24,671,173 35,087,608
Net exposure - EURO 561,545 207,062
The following significant exchange rates were applied during the year:
Rupees per US Dollar
Average rate 104.55 104.30
Reporting date rate 104.80 104.50
Rupees per EURO
Sensitivity analysis
If the functional currency, at reporting date, had weakened / strengthened by 5% against the USD and Euro with all
other variables held constant, the impact on profit after taxation for the year would have been Rupees 124.229
million (2016: Rupees 172.950 million) respectively higher / lower, mainly as a result of exchange gains / losses
on translation of foreign exchange denominated financial instruments. Currency risk sensitivity to foreign exchange
movements has been calculated on a symmetric basis. In management's opinion, the sensitivity analysis is
unrepresentative of inherent currency risk as the year end exposure does not reflect the exposure during the
year.
(ii) Other price risk
Other price risk represents the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market prices (other than those arising from interest rate risk or currency risk), whether
those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting
all similar financial instrument traded in the market. The Company is not exposed to equity and commodity price
(iii) Interest rate risk
This represents the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates.
The Company has no significant long-term interest-bearing asset. The Company's interest rate risk arises mainly
from long term financing and short term borrowings. Borrowings obtained at variable rates expose the Company to
cash flow interest rate risk. Borrowings obtained at fixed rate expose the Company to fair value interest rate risk.
At the reporting date the interest rate profile of the Company’s interest bearing financial instruments was:
2017 2016
Rupees Rupees
Fixed rate instruments
Financial liabilities
Long term financing 2,527,909,000 462,980,000
6,337,968,876 3,945,144,394
Financial assets
Long term loans to employees 12,342,730 14,285,790
Net exposure (6,325,626,146) (3,930,858,604)
Floating rate instruments
Financial assets
Bank balances - saving accounts 1,521,722 7,182,797
22,181,948 7,182,797
14,550,480,773 11,836,043,128
Net exposure (14,528,298,825) (11,828,860,331)
Fair value sensitivity analysis for fixed rate instruments
The Company does not account for any fixed rate financial assets and liabilities at fair value through profit or loss.
Therefore, a change in interest rate at the reporting date would not affect profit or loss of the Company.
Cash flow sensitivity analysis for variable rate instruments
If interest rates at the year end date, fluctuates by 1% higher / lower with all other variables held constant, profit
after taxation for the year would have been Rupees 138.019 million (2016: Rupees 112.374 million) lower / higher,
mainly as a result of higher / lower interest expense on floating rate borrowings. This analysis is prepared
assuming the amounts of assets and liabilities outstanding at reporting dates were outstanding for the whole year.
(b) Credit risk
Credit risk represents the risk that one party to a financial instrument will cause a financial loss for the other party by
failing to discharge an obligation. The carrying amount of financial assets represents the maximum credit exposure.
The maximum exposure to credit risk at the reporting date was as follows:
2017 2016
Rupees Rupees
Trade debts 5,173,332,632 5,198,890,821
Loans and advances 825,280,400 30,778,129
Other receivables 21,956,823 141,662,324
Bank balances 43,030,365 43,128,015
6,107,601,607 5,435,228,729
The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to external credit ratings (If
available) or to historical information about counterparty default rate:
Rating 2017 2016

Short Term Long term Agency Rupees Rupees
Banks
Al-Baraka Bank (Pakistan) Limited A1 A PACRA - 196,546

Bank Alfalah Limited A1+ AA+ PACRA 1,228,920 1,223,754
Bank Al-Habib Limited A1+ AA+ PACRA 365,187 2,001,817
BankIslami Pakistan Limited A1 A+ PACRA - 22,016,322
Burj Bank Limited A-2 A- JCR-VIS 184 183
Dubai Islamic Bank (Pakistan) Limited A-1 AA- JCR-VIS 260,413 397,904
Faysal Bank Limited A1+ AA PACRA 3,805,115 6,495,238
Habib Bank Limited A-1+ AAA JCR-VIS 2,067,476 2,245,786
Habib Metropolitan Bank Limited A1+ AA+ PACRA 17,172,220 -
Industrial and Commercial Bank of China Limited P-1 A1 Moody’s 2,785 705
MCB Bank Limited A1+ AAA PACRA 12,379,180 3,923,932
Meezan Bank Limited A-1+ AA JCR-VIS 2,515,829 199,404
National Bank of Pakistan A-1+ AAA PACRA 144,704 172,901
NIB Bank Limited A1+ AA - PACRA 162,404 161,940
Standard Chartered Bank (Pakistan) Limited A1+ AAA PACRA 154,189 153,748
The Bank of Punjab A1+ AA - PACRA 957,538 2,128,806
United Bank Limited A-1+ AA+ JCR-VIS 1,814,221 1,809,029
43,030,365 43,128,015
Short term investments
BankIslami Pakistan Limited A1 A+ PACRA 21,766,947 -

64,797,312 43,128,015
The Company's exposure to credit risk and impairment losses related to trade debts is disclosed in Note 17.
Due to the Company's long standing business relationships with these counterparties and after giving due consideration to their strong
financial standing, management does not expect non-performance by these counter parties on their obligations to the Company. Accordingly
the credit risk is minimal.
(c) Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities.
The Company manages liquidity risk by maintaining sufficient cash and the availability of funding through an adequate amount of committed
credit facilities. At 30 June 2017, the Company had Rupees 7,028 million (2016: Rupees 6,945 million) available borrowing limits from financial
institutions and Rupees 44.549 million (2016: Rupees 48.668 million) cash and bank balances. The management believes the liquidity risk to
be low. Following are the contractual maturities of financial liabilities, including interest payments. The amount disclosed in the table are
undiscounted cash flows:
Contractual maturities of financial liabilities as at 30 June 2017:
Carrying Contractual More than 2

6 month or less 6-12 month 1-2 Year
Amount cash flows Years
---------------------------------Rupees-----------------------------------
Non-derivative financial liabilities:
Long term financing 5,651,663,000 6,503,129,073 925,395,850 745,481,195 1,172,738,226 3,659,513,802

Short term borrowings 15,236,786,649 15,467,234,688 13,253,890,306 2,213,344,382 - -
Trade and other payables 1,358,223,456 1,358,223,456 1,358,223,456 - - -
Accrued mark-up 194,237,156 194,237,156 194,237,156 - - -
22,440,910,261 23,522,824,373 15,731,746,768 2,958,825,577 1,172,738,226 3,659,513,802

Carrying Contractual 6 months or More than 2

6-12 months 1-2 Year
Amount cash flows less Years
---------------------------------Rupees-----------------------------------
Long term financing 3,661,105,000 4,011,814,296 992,357,588 795,831,081 1,227,710,985 995,914,642
Accrued mark-up 142,984,217 142,984,217 142,984,217 - - -
17,699,317,440 18,262,655,462 13,043,659,585 2,995,370,250 1,227,710,985 995,914,642
The contractual cash flows relating to the above financial liabilities have been determined on the basis of interest rates / mark up rates
effective as at reporting date. The rates of interest / mark up have been disclosed in note 6 and note 9 to these financial statements.
39.2 Financial instruments by categories
Assets as per balance sheet
2017 2016
At fair value At fair value
Loans and Loans and
through profit through profit
receivables receivables
or loss or loss
Rupees Rupees Rupees Rupees
Long term security deposits 22,234,440 - 20,769,440 -
Trade debts 5,173,332,632 - 5,198,890,821 -
Loans and advances 825,280,400 - 30,778,129 -
Other receivables 21,956,823 - 95,904,072 45,758,252
Short term investments 21,766,947 - - -
Cash and bank balances 44,549,361 - 48,667,523 -
6,109,120,603 - 5,395,009,985 45,758,252
2017 2016
At fair value
At amortized At amortized
through profit
cost cost
or loss
Rupees Rupees Rupees
Liabilities as per balance sheet
Long term financing 5,651,663,000 - 3,661,105,000
Accrued mark-up 194,237,156 - 142,984,217
Short term borrowings 15,236,786,649 - 12,120,082,522
Trade and other payables 1,341,163,254 17,060,202 1,775,145,701
22,423,850,059 17,060,202 17,699,317,440
39.3 Offsetting financial assets and financial liabilities
As on balance sheet date, recognized financial instruments are not subject to off setting as there are no enforceable master netting
arrangements and similar agreements.
40. CAPITAL RISK MANAGEMENT
The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going concern in order to provide
returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to
maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, issue new shares or sell assets to
reduce debt. Consistent with others in the industry and the requirements of the lenders, the Company monitors the capital structure on the basis
of gearing ratio. This ratio is calculated as borrowings divided by total capital employed. Borrowings represent long term financing and short term
borrowings obtained by the Company as referred to in note 6 and note 9 respectively. Total capital employed includes 'total equity' as shown in
the balance sheet plus 'borrowings'. The Company's strategy was to maintain a gearing ratio of 65% debt and 35% equity (2016: 65% debt and
35% equity).
2017 2016
Borrowings Rupees 20,888,449,649 15,781,187,522
Total equity Rupees 12,007,974,783 10,987,196,821
Total capital employed Rupees 32,896,424,432 26,768,384,343
Gearing ratio Percentage 63.50 58.95
The increase in gearing ratio resulted primarily from increase in borrowings of the Company.

41. RECOGNIZED FAIR VALUE MEASUREMENTS - FINANCIAL INSTRUMENTS
(i) Fair value hierarchy
Judgements and estimates are made in determining the fair values of the financial instruments that are recognised
and measured at fair value in these financial statements. To provide an indication about the reliability of the inputs
used in determining fair value, the Company has classified its financial instruments into the following three levels.
An explanation of each level follows underneath the table.
Recurring fair value measurements Level 1 Level 2 Level 3 Total

At 30 June 2017
------------------------------ Rupees ----------------------------
Derivative financial liabilities - 17,060,202 - 17,060,202

Total financial liabilities - 17,060,202 - 17,060,202

At 30 June 2016
------------------------------ Rupees ----------------------------
Financial assets
Derivative financial assets - 45,758,252 - 45,758,252

Total financial assets - 45,758,252 - 45,758,252
The above table does not include fair value information for financial assets and financial liabilities not measured at
fair value if the carrying amounts are a reasonable approximation of fair value. Due to short term nature, carrying
amounts of certain financial assets and financial liabilities are considered to be the same as their fair value. For the
majority of the non-current receivables, the fair values are also not significantly different to their carrying amounts.
There were no transfers between levels 1 and 2 for recurring fair value measurements during the year. Further,
there was no transfer in and out of level 3 measurements.
The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of
the reporting period.
Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and
trading and available-for-sale securities) is based on quoted market prices at the end of the reporting period. The
quoted market price used for financial assets held by the Company is the current bid price. These instruments are
included in level 1.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter
derivatives) is determined using valuation techniques which maximise the use of observable market data and rely
as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are
observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included
in level 3. This is the case for unlisted equity securities.
(ii) Valuation techniques used to determine fair values
Specific valuation techniques used to value financial instruments include the use of quoted market prices or dealer
quotes for similar instruments.
42. INFORMATION FOR ALL SHARES ISLAMIC INDEX SCREENING
42.1
2017 2016
Carried under Carried under
Description Note
Non-Shariah Shariah Non-Shariah Shariah
arrangements arrangements arrangements arrangements
-------------------------Rupees--------------------
Assets
Loans and advances
Loans to employees 14 and 18 15,149,077 26,639,085 14,603,566 16,174,563
Advances to suppliers 18 - 589,447,921 - 426,690,329
Advances to contractors 18 - 972,313 - 719,295
Deposits
Long term security deposits - 22,234,440 - 20,769,440
Bank balances 22 1,521,722 41,508,643 7,182,797 35,945,218
Liabilities
Loan and advances
Long term financing 6 5,071,663,000 580,000,000 3,501,105,000 160,000,000
Short term borrowings 9 12,641,786,649 2,595,000,000 11,448,862,550 671,219,972
Advances from customers 7 - 81,790,429 - 69,011,424
Income
Return on bank deposits 28 79,904 1,106,721 92,176 91,637
2017 2016
Rupees Rupees
42.2 Dividend income earned from 28
42.3 Sources of other income 28
Return on bank deposits 1,186,625 183,813
Interest income on loans and advances to subsidiary companies 8,172,846 -
Gain on disposal of operating fixed assets - 13,636,790
Sale of scrap 45,736,683 42,941,064
Reversal of provision for workers' welfare fund 21,681,803 -
Miscellaneous - fines and deductions 702,790 8,442,325
1,122,401,854 1,190,718,912
42.4 Exchange gain/(loss)
Earned from actual currency 153,873,433 (1,347,976)
42.5 Revenue (external) from different 37
business segments
Spinning 15,802,974,922 14,013,687,124
Weaving 5,662,714,924 4,362,790,019
Dyeing 1,258,321,397 1,183,183,185
Home textile 7,091,983,029 6,239,461,225
29,815,994,272 25,799,121,553

42.6 Relationship with banks
Relationship
Non Islamic With Islamic
Name window windows
operations operations
Al-Baraka Bank (Pakistan) Limited
Askari Bank Limited
Allied Bank Limited
Bank Alfalah Limited
Bank Al-Habib Limited
BankIslami Pakistan Limited
Burj Bank Limited
Citibank N.A.
Dubai Islamic Bank (Pakistan) Limited
Faysal Bank Limited
Habib Metropolitan Bank Limited
Habib Bank Limited
JS Bank Limited
MCB Bank Limited
Meezan Bank Limited
National Bank of Pakistan
NIB Bank Limited
Samba Bank Limited
Standard Chartered Bank (Pakistan) Limited
Soneri Bank Limited
Summit Bank Limited
The Bank of Punjab
United Bank Limited
Industrial and Commercial Bank of China Limited
43. UNUTILIZED CREDIT FACILITIES
The Company has total credit facilities amounting to Rupees 22,265 million (2016: Rupees 19,065 million) out
of which Rupees 7,028 million (2016: Rupees 6,945 million) remained unutilized at the end of the year.
44. EVENTS AFTER THE REPORTING PERIOD
The Board of Directors of the Company at their meeting held on September 22, 2017 has proposed cash
dividend of Rupees 2.75 per ordinary share (2016: Rupees2.50 per ordinary share) in respect of the
year ended 30 June 2017. However, this event has been considered as non-adjusting events under IAS 10
'Events after the Reporting Period' and has not been recognized in these financial statements.
Under Section 5A of the Income Tax Ordinance, 2001, a tax shall be imposed at the rate of 7.5% of
accounting profit before tax of the Company if it does not distribute at least 40% of its after tax profit for the
year within six months of the end of the year ended 30 June 2017 through cash or bonus shares. The
requisite cash dividend has been proposed by the Board of Directors of the Company in their meeting held
on September 22, 2017 and will be distributed within the prescribed time limit. Therefore, the recognition
of any income tax liability in this respect is not considered necessary.
45. DATE OF AUTHORIZATION FOR ISSUE
These financial statements were authorized for issue on September 22, 2017 by the Board of Directors
of the Company.
46. CORRESPONDING FIGURES
Corresponding figures have been rearranged / regrouped wherever necessary for the purpose of
comparison. However, no significant rearrangements / regroupings have been made in these financial
47. GENERAL
Figures have been rounded off to nearest of Rupee.
_____________________ __________________________ _______________
PATTERN OF SHAREHOLDING
AS AT JUNE 30, 2017
Number of Shareholding Total Number of Percentage of
ShareHolders Shares Held Total Capital
From To
2,512 1 100 54,288 0.02
1,178 101 500 355,196 0.15
882 501 1000 718,454 0.30
1,284 1001 5000 3,540,795 1.47
339 5001 10000 2,585,524 1.08
111 10001 15000 1,421,775 0.59
55 15001 20000 977,481 0.41
51 20001 25000 1,193,009 0.50
30 25001 30000 840,175 0.35
18 30001 35000 597,188 0.25
16 35001 40000 611,638 0.25
17 40001 45000 727,519 0.30
19 45001 50000 926,470 0.39
9 50001 55000 468,225 0.19
8 55001 60000 468,282 0.19
3 60001 65000 185,881 0.08
9 65001 70000 612,522 0.25
10 70001 75000 732,683 0.31
1 75001 80000 76,907 0.03
3 80001 85000 248,340 0.10
5 85001 90000 438,955 0.18
6 90001 95000 557,936 0.23
14 95001 100000 1,392,723 0.58
3 100001 105000 305,500 0.13
4 105001 110000 427,781 0.18
3 115001 120000 357,448 0.15
2 120001 125000 250,000 0.10
2 125001 130000 256,000 0.11
3 130001 135000 398,896 0.17
2 135001 140000 272,200 0.11
2 145001 150000 298,133 0.12
1 150001 155000 152,002 0.06
1 155001 160000 157,500 0.07
1 170001 175000 171,000 0.07
1 175001 180000 180,000 0.07
3 180001 185000 549,856 0.23
1 190001 195000 193,500 0.08
4 195001 200000 800,000 0.33
2 200001 205000 404,368 0.17
1 205001 210000 209,500 0.09
1 210001 215000 214,500 0.09
1 215001 220000 219,500 0.09
1 220001 225000 221,000 0.09
2 230001 235000 469,500 0.20
1 240001 245000 240,622 0.10
1 245001 250000 247,200 0.10
1 260001 265000 261,770 0.11
1 265001 270000 270,000 0.11
1 270001 275000 273,000 0.11
1 280001 285000 282,500 0.12
1 290001 295000 295,000 0.12
2 295001 300000 600,000 0.25
1 310001 315000 313,000 0.13
2 315001 320000 634,150 0.26
2 320001 325000 647,000 0.27
1 335001 340000 336,500 0.14
2017 74 Nishat (Chunian) Limited 2 345001 350000 699,000 0.29
1 350001 355000 350,716 0.15
1 360001 365000 364,000 0.15
1 370001 375000 374,000 0.16
2 295001 300000 600,000 0.25
1 310001 315000 313,000 0.13
2 315001 320000 634,150 0.26
2 320001 325000 647,000 0.27
1 335001 340000 336,500 0.14
2 345001 350000 699,000 0.29
1 350001 355000 350,716 0.15
1 360001 365000 364,000 0.15
1 370001 375000 374,000 0.16
1 385001 390000 385,500 0.16
2 400001 405000 803,000 0.33
1 450001 455000 450,500 0.19
2 495001 500000 1,000,000 0.42
1 540001 545000 540,945 0.23
1 555001 560000 556,500 0.23
2 575001 580000 1,152,586 0.48
1 585001 590000 590,000 0.25
1 595001 600000 600,000 0.25
1 615001 620000 619,000 0.26
1 640001 645000 640,603 0.27
1 685001 690000 690,000 0.29
1 895001 900000 900,000 0.37
1 985001 990000 985,450 0.41
2 995001 1000000 2,000,000 0.83
1 1015001 1020000 1,018,000 0.42
1 1040001 1045000 1,042,000 0.43
1 1290001 1295000 1,290,583 0.54
1 1295001 1300000 1,300,000 0.54
1 1380001 1385000 1,381,292 0.58
1 1435001 1440000 1,439,258 0.60
1 1625001 1630000 1,629,603 0.68
1 1745001 1750000 1,750,000 0.73
1 1805001 1810000 1,809,700 0.75
1 1895001 1900000 1,900,000 0.79
1 1975001 1980000 1,979,950 0.82
1 2075001 2080000 2,076,500 0.86
1 2455001 2460000 2,458,014 1.02
1 2495001 2500000 2,500,000 1.04
1 2535001 2540000 2,535,016 1.06
1 2995001 3000000 3,000,000 1.25
1 3355001 3360000 3,356,000 1.40
1 3420001 3425000 3,421,974 1.42
1 3895001 3900000 3,900,000 1.62
1 4025001 4030000 4,027,340 1.68
1 4085001 4090000 4,089,500 1.70
1 4500001 4505000 4,502,300 1.87
1 4775001 4780000 4,777,000 1.99
1 5135001 5140000 5,139,064 2.14
1 5140001 5145000 5,140,500 2.14
1 5640001 5645000 5,644,999 2.35
1 5805001 5810000 5,807,791 2.42
1 5980001 5985000 5,982,868 2.49
1 7215001 7220000 7,215,416 3.00
1 8180001 8185000 8,180,719 3.41
1 8340001 8345000 8,343,914 3.47
1 10870001 10875000 10,870,685 4.53
1 11820001 11825000 11,822,562 4.92
1 12665001 12670000 12,669,719 5.27
1 13960001 13965000 13,960,352 5.81
1 17045001 17050000 17,049,469 7.10
1 20865001 20870000 20,866,776 8.69
6,697 <------Total------> 240,221,556 100.00

CATAGORIES OF SHAREHOLDERS
AS AT JUNE 30, 2017
NO. OF
CATEGORIES OF SHAREHOLDERS TOTAL SHARES HELD PERCENTAGE
SHAREHOLDERS
A) Directors/Chief Executive Officer and their spouse and minor Children
Mr. Shahzad Saleem 2 27,920,154 11.62
Mrs. Farhat Saleem 2 5,915,662 2.46
Mr. Zain Shahzad 1 500 0.00
Spouse:
Mrs. Ayesha Shahzad w/o Mr. Shahzad Saleem 2 238,448 0.10
TOTAL: - 7 34,074,764 14.18

B) Executives
N/A - - 0.00
C) Associated Companies, Undertakings and related parties 4 39,963,940 16.64
D) Public Sectors Companies & Corporations - -
E) NIT and IDBP (ICP UNIT) 4 5,617 0.00
F) Banks, Development Financial Institutions & Non-Banking 33 31,800,785 13.24
H) Insurance Companies 12 9,986,714 4.16
I) Modarabas & Mutual Funds 34 23,193,680 9.66
J) *Shareholding 5% or more *4 88,530,146 *36.85
K) Joint Stock Companies 95 7,143,678 2.97
L) Others 41 5,730,497 2.39
M) General Public 6,467 88,321,881 36.77
TOTAL: - 6,697 240,221,556 100.00
* Shareholders having 5% or above shares exist in other categories therefore not included in total.
Shareholding Detail of 5% or more

Name of Shareholder Shares held %
MR. YAHYA SALEEM 13,960,302 5.81
MR. SHAHMIR YAHYA 13,960,352 5.81
MR. SHAHZAD SALEEM 27,920,154 11.62
NISHAT MILLS LIMITED 32,689,338 13.61
TOTAL :- 88,530,146 36.85
INFORMATION UNDER CLAUSE XIX(I) OF THE CODE OF CORPORATE GOVERNANCE
All the trade in the company's shares carried by its Directors, CEO, CFO, Company Secretary and their spouse
and monor childern during the year July 1, 2016 to June 30, 2017:
Sale Purchase
- -
THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK

NISHAT (CHUNIAN) LIMITED
AND ITS SUBSIDIARY COMPANIES
CONSOLIDATED FINANCIAL STATEMENTS

WITH ACCOMPANYING INFORMATION
30 JUNE 2017

DIRECTORS’ REPORT
The Board of Directors is pleased to present their re- and controls 51.07% shares of Nishat Chunian Power
port in conjunction with the consolidated audited results Limited. The Directors’ Report giving a commentary on
of Nishat (Chunian) Limited and its subsidiaries for the the performance of NCPL for the year ended 30 June
year ended June 30, 2017. The Directors’ Report, giving 2017 has been presented separately.
a commentary on the performance of Nishat (Chunian)
Limited for the year ended June 30, 2017 has been pre- Nishat Chunian USA Inc. is a foreign subsidiary incor-
sented separately. The group results comprise of finan- porated under the Business Corporation Laws of the
cial statements of Nishat (Chunian) Limited (“the Hold- State of New York. It is a wholly owned subsidiary in-
ing Company”), Nishat Chunian Power Limited (NCPL), corporated with a principle objective to liaison Holding
Nishat Chunian USA Inc., NC Electric Company Limited Company’s marketing department providing access, in-
and NC Entertainment (Private) Limited. formation and other services relating to USA Market and
to import home textile products and distribute to local
Financial Highlights 2017 2016 retailers in USA.
(Rupees in million)
NC Electric Company Limited, incorporated under the
Turnover 46,491 39,744 Companies Ordinance, 1984 on 18th April, 2014, is
Gross Profit 7,725 6,878 established with the objective of setting up coal based
Profit before taxation 4,107 3,266 power plant of gross capacity of 46 MW. The plant has
Taxation 189 287 successfully started its commercial operations by the
Profit after taxation 3,919 2,979 end of this fiscal year which will help Nishat (Chunian)
Earnings per share (basic & Limited (holding company) to reduce their fuel and elec-
diluted) – Rupees 10.21 6.85 tricity cost.
Nishat Chunian Power Limited, incorporated under the NC Entertainment (Private) Limited is registered under
Companies Ordinance, 1984 on 23 February, 2007, is the Companies Ordinance, 1984 as a company limited
established with the objective of setting up power gen- by shares on 31st January 2014. This company was
eration project having gross capacity of 200MW under acquired in fiscal year 2014-15 in pursuance of our di-
a 25 year ‘take or pay’ agreement with National Trans- versification strategy. Through this acquisition group has
mission & Dispatch Company Limited (NTDCL). NCPL entered in cinema business.
started its operations on July 21, 2010. The Company
has been listed on Karachi, Islamabad and Lahore Stock
Exchanges. Nishat (Chunian) Limited currently owns
On behalf of the Board,
SHAHZAD SALEEM
Chief Executive
LAHORE
2017 80 Nishat
Nishat (Chunian)
(Chunian) Limited
Limited and its subsidiaries
AUDITORS’ REPORT
TO THE MEMBERS
We have audited the annexed consolidated financial Our responsibility is to express an opinion on these fi-
statements comprising consolidated balance sheet of nancial statements based on our audit.
Nishat (Chunian) Limited (the Holding Company) and its
Subsidiary Companies (together referred to as Group) Our audit was conducted in accordance with the Inter-
as at 30 June 2017 and the related consolidated profit national Standards on Auditing and accordingly included
and loss account, consolidated statement of compre- such tests of accounting records and such other auditing
hensive income, consolidated cash flow statement and procedures as we considered necessary in the circum-
consolidated statement of changes in equity together stances.
with the notes forming part thereof, for the year then
ended. We have also expressed separate opinions on In our opinion, the consolidated financial statements
the financial statements of Nishat (Chunian) Limited and present fairly the financial position of Nishat (Chunian)
NC Electric Company Limited. The financial statements Limited and its Subsidiary Companies as at 30 June
of the Subsidiary Companies, Nishat Chunian Power 2017 and the results of their operations for the year then
Limited, NC Entertainment (Private) Limited and Nishat ended.
Chunian USA Inc. were audited by other firms of audi-
tors whose reports have been furnished to us and our The auditors of Nishat Chunian Power Limited - Subsidi-
opinion, in so far as it relates to the amounts included ary Company have drawn attention to Note 17.3 to the
for such Companies, is based solely on the reports of consolidated financial statements, which describe the
such other auditors. These financial statements are the matter regarding recoverability of certain trade debts.
responsibility of the Holding Company’s management. Their opinion is not qualified in respect of this matter.
RIAZ AHMAD & COMPANY

Chartered Accountants
Name of engagement partner:

Mubashar Mehmood
LAHORE
Nishat (Chunian)
Nishat (Chunian) Limited Limited
and its subsidiaries 81 2017
CONSOLIDATED BALANCE SHEET
AS AT JUNE 30, 2017
2017 2016
Note Rupees Rupees
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorized share capital 3 3,000,000,000 3,000,000,000
Issued, subscribed and paid-up share capital 4 2,402,215,560 2,402,215,560

Reserves 5 12,541,748,839 10,689,601,317
Equity attributable to equity holders of the Holding Company 14,943,964,399 13,091,816,877
Non-controlling interest 4,489,481,958 3,562,941,251
Total equity 19,433,446,357 16,654,758,128
LIABILITIES
NON-CURRENT LIABILITIES
Long term financing 6 13,518,998,245 13,377,738,486

Deferred income tax liability 7 29,687,845 -
13,548,686,090 13,377,738,486
CURRENT LIABILITIES
Trade and other payables 8 2,190,189,285 2,593,380,872

Accrued mark-up 9 506,797,544 458,805,704
Short term borrowings 10 21,474,756,918 16,460,565,575
Derivative financial instruments - 1,713,049
Current portion of non-current liabilities 11 4,174,666,224 3,321,242,615
28,346,409,971 22,835,707,815
Total liabilities 41,895,096,061 36,213,446,301
CONTINGENCIES AND COMMITMENTS 12
TOTAL EQUITY AND LIABILITIES 61,328,542,418 52,868,204,429
The annexed notes form an integral part of these consolidated financial statements.
__________________________
CHIEF EXECUTIVE
2017 82 Nishat
Nishat (Chunian)
(Chunian) Limited
CONSOLIDATED BALANCE SHEET
AS AT JUNE 30, 2017
2017 2016
Note Rupees Rupees
ASSETS
NON-CURRENT ASSETS
Fixed assets 13 29,850,096,142 27,424,478,642

Long term loans to employees 14 20,847,814 24,213,002
29,893,283,396 27,469,566,084
CURRENT ASSETS
Stores, spare parts and loose tools 15 1,222,827,106 1,470,107,563

Stock-in-trade 16 10,083,409,106 8,001,720,738
Trade debts 17 13,916,760,930 11,221,170,113
Loans and advances 18 1,320,638,807 1,300,670,193
Short term deposits and prepayments 19 32,099,574 17,060,032
Other receivables 20 4,580,174,905 3,301,274,890
Short term investments 21 32,294,160 10,520,822
Cash and bank balances 22 247,054,434 76,113,994
31,435,259,022.00 25,398,638,345
TOTAL ASSETS 61,328,542,418 52,868,204,429
_____________________________ _______________
CHIEF FINANCIAL OFFICER DIRECTOR
Nishat (Chunian) Limited and its subsidiaries

CONSOLIDATED PROFIT AND LOSS ACCOUNT
2017 2016
Note Rupees Rupees
REVENUE 23 46,491,076,370 39,744,450,083
COST OF SALES 24 (38,765,841,557) (32,866,371,715)

GROSS PROFIT 7,725,234,813 6,878,078,368
DISTRIBUTION COST 25 (895,297,451) (925,584,306)

ADMINISTRATIVE EXPENSES 26 (447,957,227) (332,581,672)
OTHER EXPENSES 27 (284,671,147) (188,771,303)
(1,627,925,825) (1,446,937,281)
6,097,308,988 5,431,141,087
OTHER INCOME 28 255,442,049 95,968,060
PROFIT FROM OPERATIONS 6,352,751,037 5,527,109,147
FINANCE COST 29 (2,245,621,672) (2,261,534,490)

PROFIT BEFORE TAXATION 4,107,129,365 3,265,574,657
TAXATION 30 (188,551,657) (286,506,930)
PROFIT ATTRIBUTABLE TO:
EQUITY HOLDERS OF THE HOLDING COMPANY 2,452,753,644 1,630,301,367

NON-CONTROLLING INTEREST 1,465,824,064 1,348,766,360
3,918,577,708 2,979,067,727
EARNINGS PER SHARE - BASIC AND DILUTED 31 10.21 6.85
__________________ __________________________ ____________

2017 84 Nishat
Nishat (Chunian)
(Chunian) Limited
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2017 2016
Rupees Rupees
OTHER COMPREHENSIVE LOSS
Items that will not be reclassified to profit or loss - -
Items that may be reclassified subsequently to profit or loss:
Exchange difference on translation of foreign operations (52,232) (162,832)
Other comprehensive loss for the year (52,232) (162,832)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 3,918,525,476 2,978,904,895
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
EQUITY HOLDERS OF THE HOLDING COMPANY 2,452,701,412 1,630,138,535

NON-CONTROLLING INTEREST 1,465,824,064 1,348,766,360
3,918,525,476 2,978,904,895
___________________ ___________________________ _____________


CONSOLIDATED CASH FLOW STATEMENT
2017 2016
Note Rupees Rupees
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 32 2,856,190,481 7,609,768,082

Net increase in long term security deposits (1,465,000) -
Finance cost paid (2,197,629,832) (2,328,502,719)
Income tax paid (431,903,361) (454,802,181)
Net decrease / (increase) in long term loans to employees 2,607,230 (8,320,856)
Net cash generated from operating activities 227,799,518 4,818,142,326
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditure on property, plant and equipment (4,681,996,061) (5,080,718,915)
Capital expenditure on intangible asset (25,562,390) (5,991,800)
Proceeds from sale of operating fixed assets 110,224,812 72,653,608
Loss on derivative financial instruments (1,713,000) -
Short term investments - net (20,660,226) 10,160,225
Profit on bank deposits received 2,947,727 4,705,938
Net cash used in investing activities (4,616,759,138) (4,999,190,944)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long term financing 4,447,684,104 3,780,045,868
Repayment of long term financing (3,453,000,500) (3,275,338,878)
Share deposit money received - 49,128,425
Repayment of redeemable capital - (31,250,000)
Short term borrowings - net 5,014,191,343 159,153,472
Dividend paid to non-controlling interest (853,865,314) (1,078,566,714)
Dividends paid (595,057,341) (360,372,189)
Net cash from / (used in) financing activities 4,559,952,292 (757,200,016)
Net increase / (decrease) in cash and cash equivalents 170,992,672 (938,248,634)
Impact of exchange translation (52,232) (162,832)
Cash and cash equivalents at the beginning of the year 76,113,994 1,014,525,460
Cash and cash equivalents at the end of the year 247,054,434 76,113,994
____________________ ____________________________ ______________

2017 86 Nishat
Nishat (Chunian)
(Chunian) Limited
CONSOLIDATED STATEMENT OF CHANGE IN EQUITY
ATTRIBUTABLE TO EQUITY HOLDERS OF THE HOLDING COMPANY

CAPITAL RESERVES REVENUE RESERVES NON-
SHARE DEPOSIT SHAREHOLDERS' CONTROLLING TOTAL EQUITY
SHARE CAPITAL Exchange TOTAL RESERVES
MONEY Share Unappropriated EQUITY INTEREST
translation General reserve Total
premium profit
reserve
----------------------------------------------------- Rupees-------------------------------------------------------
Balance as at 30 June 2015 2,001,846,300 951,794,725 (820,940) - 1,629,221,278 7,190,840,888 8,820,062,166 8,819,241,226 11,772,882,251 3,607,323,562 15,380,205,813
Final dividend for the year ended 30 June 2015 @ Rupee 1.5 per
ordinary share - - - - - (360,332,334) (360,332,334) (360,332,334) (360,332,334) - (360,332,334)
Share deposit money received during the year - 49,128,425 - - - - - - 49,128,425 - 49,128,425
Issue of right shares during the year 400,369,260 (1,000,923,150) 600,553,890 600,553,890
Dividend to non-controlling interest - - - - - - - - - (1,393,148,671) (1,393,148,671)
400,369,260 (951,794,725) - 600,553,890 - (360,332,334) (360,332,334) 240,221,556 (311,203,909) (1,393,148,671) (1,704,352,580)
Profit for the year - - - - - 1,630,301,367 1,630,301,367 1,630,301,367 1,630,301,367 1,348,766,360 2,979,067,727
Other comprehensive loss for the year - - (162,832) - - - - (162,832) (162,832) - (162,832)
Total comprehensive income for the year - - (162,832) - 1,630,301,367 1,630,301,367 1,630,138,535 1,630,138,535 1,348,766,360 2,978,904,895
Balance as at 30 June 2016 2,402,215,560 - (983,772) 600,553,890 1,629,221,278 8,460,809,921 10,090,031,199 10,689,601,317 13,091,816,877 3,562,941,251 16,654,758,128
Final dividend for the year ended 30 June 2016 @ Rupees 2.5
per ordinary share - - - - - (600,553,890) (600,553,890) (600,553,890) (600,553,890) - (600,553,890)
Dividend to non-controlling interest - - - - - - - - - (539,283,357) (539,283,357)

- - - - - (600,553,890) (600,553,890) (600,553,890) (600,553,890) (539,283,357) (1,139,837,247)
Profit for the year - - - - - 2,452,753,644 2,452,753,644 2,452,753,644 2,452,753,644 1,465,824,064 3,918,577,708
Other comprehensive loss for the year - - (52,232) - - - - (52,232) (52,232) - (52,232)
Total comprehensive income for the year - - (52,232) - 2,452,753,644 2,452,753,644 2,452,701,412 2,452,701,412 1,465,824,064 3,918,525,476
Balance as at 30 June 2017 2,402,215,560 - (1,036,004) 600,553,890 1,629,221,278 10,313,009,675 11,942,230,953 12,541,748,839 14,943,964,399 4,489,481,958 19,433,446,357
______________________ ____________________________ _________________


87
2017 Nishat (Chunian) Limited
and its subsidiaries
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. THE GROUP AND ITS OPERATIONS
The Group consists of:
Holding Company
• Nishat (Chunian) Limited
Subsidiary Companies
• Nishat Chunian Power Limited

• Nishat Chunian USA Inc.
• NC Electric Company Limited
• NC Entertainment (Private) Limited
Nishat (Chunian) Limited (“the Holding Company”) is a public limited company incorporated in Pakistan under the re-
pealed Companies Ordinance, 1984 (Now Companies Act, 2017) and is listed on Pakistan Stock Exchange Limited.
Its registered office is situated at 31-Q, Gulberg II, Lahore. The Holding Company is engaged in business of spinning,
weaving, dyeing, printing, stitching, processing, doubling, sizing, buying, selling and otherwise dealing in yarn, fabrics
and made-ups made from raw cotton, synthetic fibre and cloth and to generate, accumulate, distribute, supply and sell
electricity.
Nishat Chunian Power Limited
Nishat Chunian Power Limited is a public limited company incorporated in Pakistan under the repealed Companies
Ordinance, 1984 (Now Companies Act, 2017) and listed on the Pakistan Stock Exchange Limited. The principal activity
of Nishat Chunian Power Limited is to build, own, operate and maintain a fuel fired power station having gross capac-
ity of 200 MW and net capacity of 195.722 MW at Jamber Kalan, Tehsil Pattoki, District Kasur, Punjab, Pakistan. Its
registered office is situated at 31-Q, Gulberg II, Lahore. Nishat Chunian Power Limited has commenced commercial
operations from 21 July 2010 and the twenty five years term of the Power Purchase Agreement (PPA) with National
Transmission and Despatch Company Limited (NTDCL) starts from this date. Ownership interest held by non-control-
ling interests in Nishat Chunian Power Limited is 48.93% (2016: 48.93%).
Nishat Chunian USA Inc.
Nishat Chunian USA Inc. is a foreign subsidiary incorporated under the Business Corporation Laws of the State of New
York. The registered office of Nishat Chunian USA Inc. is situated at Suite No. 639, 7 West, 34th Street New York, NY
10001, USA. The principal business of the Nishat Chunian USA Inc. is to import home textile products and distribute
to local retailers.
NC Electric Company Limited
NC Electric Company Limited is a public limited company incorporated in Pakistan on 18 April 2014 under the repealed
Companies Ordinance, 1984 (Now Companies Act, 2017). NC Electric Company Limited is a wholly owned subsidiary
of Nishat (Chunian) Limited. Its registered office is situated at 31-Q, Gulberg II, Lahore. The principal objects of NC
Electric Company Limited are to develop, own and operate a 46 MW and 8 TPH process steam coal fired electric power
generation project at 49 KM, Multan Road, near Bhai Phero, District Kasur. NC Electric Company Limited commenced
commercial operations from 01 May 2017.
2017 88 Nishat
Nishat (Chunian)
(Chunian) Limited
NC Entertainment (Private) Limited
NC Entertainment (Private) Limited is registered under the repealed Companies Ordinance, 1984 (Now Companies
Act, 2017) as a company limited by shares on 31 January 2014. The registered office of NC Entertainment (Private)
Limited is situated at 31-Q, Gulberg II, Lahore. The main objective of NC Entertainment (Private) Limited is to construct
and/or operate cinemas, theatres and studios. NC Entertainment (Private) Limited is a wholly owned subsidiary of Ni-
shat (Chunian) Limited.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies applied in the preparation of these consolidated financial statements are set out
below. These policies have been consistently applied to all years presented, unless otherwise stated:
2.1 Basis of preparation
a) Statement of compliance
These consolidated financial statements have been prepared in accordance with approved accounting standards as
applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards
(IFRS) issued by the International Accounting Standards Board as are notified under the repealed Companies Ordi-
nance, 1984, provisions of and directives issued under the repealed Companies Ordinance, 1984. In case require-
ments differ, the provisions or directives of the repealed Companies Ordinance, 1984 shall prevail.
b) Accounting convention
These consolidated financial statements have been prepared under the historical cost convention except for the certain
financial instruments carried at fair value.
c) Critical accounting estimates and judgments

The preparation of these consolidated financial statements in conformity with the approved accounting standards re-
quires the use of certain critical accounting estimates. It also requires the management to exercise its judgment in the
process of applying the accounting policies. Estimates and judgments are continually evaluated and are based on his-
torical experience, including expectation of future events that are believed to be reasonable under the circumstances.
The areas where various assumptions and estimates are significant to the consolidated financial statements or where
judgments were exercised in application of accounting policies are as follows:
Useful lives, patterns of economic benefits and impairments
Estimates with respect to residual values and depreciable lives and pattern of flow of economic benefits are based on
the analysis of the management. Further, the Group reviews the values of assets for possible impairments 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 sales.
The provision for accumulating compensated absences is made by the Holding Company on the basis of accumulated
leave balance on account of employees.

Taxation
In making the estimates for income tax currently payable, the management takes into account the current income tax
law and the decisions of appellate authorities on certain issues in the past.
Provisions for doubtful debts
The Group 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.
d) Amendments to published approved accounting standards that are effective in current year and are
relevant to the Group
The following amendments to published approved accounting standards are mandatory for the Group’s accounting
periods beginning on or after 01 July 2016:
IAS 1 (Amendments) ‘Presentation of Financial Statements’ (effective for annual periods beginning on or after 01 Janu-
ary 2016). Amendments have been made to address perceived impediments to preparers exercising their judgement in
presenting their financial reports by making the following changes: clarification that information should not be obscured
by aggregating or by providing immaterial information, materiality consideration apply to the all parts of the financial
statements, and even when a standard requires a specific disclosure, materiality consideration do apply; clarification
that the list of the line items to be presented in these statements can be disaggregated and aggregated as relevant and
additional guidance on subtotals in these statements and clarification that an entity’s share of other comprehensive
income of equity-accounted associates and joint ventures should be presented in aggregate as single line items based
on whether or not it will subsequently be reclassified to profit or loss; and additional examples of possible ways of order-
ing the notes to clarify that understandability and comparability should be considered when determining the order of the
notes and to demonstrate that the notes need not be presented in the order so far listed in IAS 1.
IAS 16 (Amendments) ‘Property, Plant and Equipment’ (effective for annual periods beginning on or after 01 January
2016). The amendments clarify that a depreciation method which is based on revenue, generated by an activity by us-
ing of an asset is not appropriate for property, plant and equipment; and add guidance that expected future reductions
in the selling price of an item that was produced using an asset could indicate the expectation of technological or com-
mercial obsolescence of the asset, which, in turn, might reflect a reduction of the future economic benefits embodied
in the asset.
IAS 27 (Amendments) ‘Separate Financial Statements’ (effective for annual periods beginning on or after 01 January
2016). The amendments have been made to permit investments in subsidiaries, joint ventures and associates to be
optionally accounted for using the equity method in separate financial statements. However, the Holding Company has
not availed this option.
IAS 34 (Amendments) ‘Interim Financial Reporting’ (effective for annual periods beginning on or after 01 January
2016). This amendment clarifies what is meant by the reference in the standard to ‘information disclosed elsewhere in
the interim financial report’. The amendment also amends IAS 34 to require a cross-reference from the interim financial
statements to the location of that information.
The application of the above amendments does not result in any impact on profit or loss, other comprehensive income
and total comprehensive income.
e) Amendments to published approved accounting standards that are effective in current year but not
relevant to the Group
There are other amendments to published approved accounting standards that are mandatory for accounting periods
beginning on or after 01 July 2016 but are considered not to be relevant or do not have any significant impact on the
Group’s financial statements and are therefore not detailed in these consolidated financial statements.
2017 90 Nishat
Nishat (Chunian)
(Chunian) Limited
f) Standards, interpretations and amendments to published approved accounting standards that are not
yet effective but relevant to the Group
Following standards, interpretations and amendments to existing standards have been published and are mandatory
for the Group’s accounting periods beginning on or after 01 July 2017 or later periods:
IFRS 9 ‘Financial Instruments’ (effective for annual periods beginning on or after 01 January 2018). A finalized version
of IFRS 9 which contains accounting requirements for financial instruments, replacing IAS 39 ‘Financial Instruments:
Recognition and Measurement’. Financial assets are classified by reference to the business model within which they
are held and their contractual cash flow characteristics. The 2014 version of IFRS 9 introduces a ‘fair value through
other comprehensive income’ category for certain debt instruments. Financial liabilities are classified in a similar man-
ner to under IAS 39, however there are differences in the requirements applying to the measurement of an entity’s
own credit risk. The 2014 version of IFRS 9 introduces an ‘expected credit loss’ model for the measurement of the
impairment of financial assets, so it is no longer necessary for a credit event to have occurred before a credit loss is
recognized. It introduces a new hedge accounting model that is designed to be more closely aligned with how entities
undertake risk management activities when hedging financial and non-financial risk exposures. The requirements for
the derecognition of financial assets and liabilities are carried forward from IAS 39. The management of the Group is in
the process of evaluating the impacts of the aforesaid standard on the Group’s financial statements.
IFRS 15 ‘Revenue from Contracts with Customers’ (effective for annual periods beginning on or after 01 January 2018).
IFRS 15 provides a single, principles based five-step model to be applied to all contracts with customers. The five steps
in the model are: identify the contract with the customer; identify the performance obligations in the contract; determine
the transaction price; allocate the transaction price to the performance obligations in the contracts; and recognize reve-
nue when (or as) the entity satisfies a performance obligation. Guidance is provided on topics such as the point in which
revenue is recognized, accounting for variable consideration, costs of fulfilling and obtaining a contract and various
related matters. New disclosures about revenue are also introduced. IFRS 15 replaces IAS 11 ‘Construction Contracts’,
IAS 18 ‘Revenue’, IFRIC 13 ‘Customer Loyalty Programmes’, IFRIC 15 ‘Agreements for Construction of Real Estate’,
IFRIC 18 ‘Transfer of Assets from Customers’ and SIC 31’ Revenue-Barter Transactions Involving Advertising Services.
The aforesaid standard is not expected to have a material impact on the Group’s consolidated financial statements.
IFRS 16 ‘Lease’ (effective for annual periods beginning on or after 01 January 2019). IFRS 16 specifies how an entity
will recognize, measure, present and disclose leases. The standard provides a single lessee accounting model, requir-
ing lessees to recognize assets and liabilities for all leases unless the lease term is 12 months or less or the underlying
asset has a low value. Lessors continue to classify leases as operating or finance, with IFRS 16 approach to lessor
accounting substantially unchanged from its predecessor, IAS 17 ‘Leases’. IFRS 16 replaces IAS 17 ‘Leases’, IFRIC 4
‘Determining Whether an Arrangement Contains a Lease’, SIC-15 ‘Operating Leases–Incentives’ and SIC-27 ‘Evalu-
ating the Substance of Transactions Involving the Legal Form of a Lease’. The management of the Group is in the
process of evaluating the impacts of the aforesaid standard on the Group’s consolidated financial statements.
IFRIC 22 ‘Foreign Currency Transactions and Advance Consideration’ (effective for annual periods beginning on or af-
ter 01 January 2018). IFRIC 22 clarifies which date should be used for translation when a foreign currency transaction
involves payment or receipt in advance of the item it relates to. The related item is translated using the exchange rate
on the date the advance foreign currency is received or paid and the prepayment or deferred income is recognized. The
date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset,
expense or income (or part of it) would remain the date on which receipt of payment from advance consideration was
recognized. If there are multiple payments or receipts in advance, the entity shall determine a date of the transaction
for each payment or receipt of advance consideration. The interpretation is not expected to have a material impact on
the Group’s consolidated financial statements.
IFRIC 23 ‘Uncertainty over Income Tax Treatments’ (effective for annual periods beginning on or after 01 January
2019). The interpretation addresses the determination of taxable profit (tax loss), tax bases, unused tax losses, unused
tax credits and tax rates, when there is uncertainty over income tax treatments under IAS 12 ‘Income Taxes’. It specifi-
cally considers: whether tax treatments should be considered collectively; assumptions for taxation authorities’ exami-
nations; the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates;
and the effect of changes in facts and circumstances. The interpretation is not expected to have a material impact on
the Group’s consolidated financial statements.
IFRS 15 (Amendments), ‘Revenue from Contracts with Customers’ (effective for annual periods beginning on or after
01 January 2018). Amendments clarify three aspects of the standard (identifying performance obligations, principal
versus agent considerations, and licensing) and to provide some transition relief for modified contracts and completed
contracts. The aforesaid amendments are not expected to have a material impact on the Group’s consolidated financial
statements.
IAS 7 (Amendments), ‘Statement of Cash Flows’ (effective for annual periods beginning on or after 01 January 2017).
Amendments have been made to clarify that entities shall provide disclosures that enable users of financial statements
to evaluate changes in liabilities arising from financing activities. The aforesaid amendments will result in certain ad-
ditional disclosures in the Group’s consolidated financial statements.
IAS 12 (Amendments), ‘Income Taxes’ (effective for annual periods beginning on or after 01 January 2017). The
amendments clarify that the existence of a deductible temporary difference depends solely on a comparison of the
carrying amount of an asset and its tax base at the end of the reporting period, and is not affected by possible future
changes in the carrying amount or expected manner of recovery of the asset. The amendments further clarify that when
calculating deferred tax asset in respect of insufficient taxable temporary differences, the future taxable profit excludes
tax deductions resulting from the reversal of those deductible temporary differences. The amendments are not likely to
have significant impact on Group’s consolidated financial statements.
IAS 40 (Amendments), ‘Investment Property’ (effective for annual periods beginning on or after 01 January 2018).
Amendments have been made to state that that an entity shall transfer a property to, or from, investment property
when, and only when, there is evidence of a change in use. A change of use occurs if property meets, or ceases to
meet, the definition of investment property. A change in management’s intentions for the use of a property by itself does
not constitute evidence of a change in use. The list of examples of evidence in paragraph 57(a) – (d) is now presented
as a non-exhaustive list of examples instead of the previous exhaustive list. The amendment is not likely to have a
significant impact on the Group’s consolidated financial statements.
Amendments to IFRS 10 and IAS 28 (deferred indefinitely) to clarify the treatment of the sale or contribution of assets
from an investor to its associates or joint venture, as follows: require full recognition in the investor’s financial state-
ments of gains and losses arising on the sale or contribution of assets that constitute a business (as defined in IFRS
3 ‘Business Combinations’); require the partial recognition of gains and losses where the assets do not constitute a
business, i.e. a gain or loss is recognized only to the extent of the unrelated investors’ interests in that associate or joint
venture. These requirements apply regardless of the legal form of the transaction, e.g. whether the sale or contribution
of assets occur by an investor transferring shares in a subsidiary that holds the assets (resulting in loss of control of the
subsidiary), or by the direct sale of the assets themselves. The management of the Group is in the process of evaluat-
ing the impacts of the aforesaid amendments on the Group’s consolidated financial statements.
On 8 December 2016, IASB issued Annual Improvements to IFRSs: 2014 – 2016 Cycle, incorporating amendments to
three IFRSs more specifically in IFRS 12 ‘Disclosure of Interests in Other Entities’ and IAS 28 ‘Investments in Associ-
ates and Joint Ventures’. These amendments are effective for annual periods beginning on or after 01 January 2017
and 01 January 2018 respectively. These amendments have no significant impact on the Group’s consolidated financial
statements and have therefore not been analysed in detail.
g) Standards and amendments to approved published standards that are not yet effective and not consid-
ered relevant to the Group
There are other standards and amendments to published standards that are mandatory for accounting periods begin-
ning on or after 01 July 2017 but are considered not to be relevant or do not have any significant impact on the Group’s
financial statements and are therefore not detailed in these consolidated financial statements.
h) Exemption from applicability of certain interpretations to standards
Securities and Exchange Commission of Pakistan (SECP) through SRO 24(I)/2012 dated 16 January 2012, has ex-
empted the application of International Financial Reporting Interpretations Committee (IFRIC) 4 ‘Determining whether
an Arrangement contains a Lease’ to all companies. However, the SECP made it mandatory to disclose the impact
of the application of IFRIC 4 on the results of the companies. This interpretation provides guidance on determining
whether arrangements that do not take the legal form of a lease should, nonetheless, be accounted for as a lease in
accordance with International Accounting Standard (IAS) 17 ‘Leases’.
2017 92 Nishat
Nishat (Chunian)
(Chunian) Limited
Consequently, Nishat Chunian Power Limited – Subsidiary Company is not required to account for a portion of its PPA
with NTDCL as a lease under IAS 17. If the aforesaid Subsidiary Company were to follow IFRIC 4 and IAS 17, the effect
on the consolidated financial statements would be as follows:
2017 2016
Rupees Rupees

De-recognition of property, plant and equipment (11,903,840,000) (12,466,155,032)

Recognition of lease debtor 10,874,924,000 12,487,141,283

Increase in un-appropriated profit at the beginning of the year 20,986,000 621,421,382
Decrease in profit for the year (1,049,902,000) (600,435,131)
Increase in un-appropriated profit at the end of the year (1,028,916,000) 20,986,251
2.2 Consolidation
Subsidiaries
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed
to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through
its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is trans-
ferred to the Group. They are deconsolidated from the date that control ceases.
The assets and liabilities of the subsidiary companies have been consolidated on a line by line basis and the carrying
value of investments held by the Holding Company is eliminated against the Holding Company’s share in paid up capi-
tal of the subsidiary companies.
Intra group balances and transactions have been eliminated.
Non-controlling interest is that part of net results of the operations and of net assets of the subsidiary companies at-
tributable to interest which is not owned by the Holding Company. Non-controlling interest is presented as a separate
item in the consolidated financial statements.
Translation of the financial statements of foreign subsidiary
The financial statements of foreign subsidiary of which the functional currency is different from that used in preparing
the Group’s consolidated financial statements are translated in functional currency of the Group. Balance sheet items
are translated at the exchange rate at the balance sheet date and profit and loss account items are converted at the
average rate for the period. Any resulting translation differences are recognized under exchange translation reserve in
consolidated reserves.
2.3 Taxation
Current
Provision for current tax relating to the Holding Company and NC Entertainment (Private) Limited – Subsidiary Com-
pany is based on the taxable income for the year determined in accordance with the prevailing law for taxation of in-
come. The charge for current tax is calculated using prevailing tax rates or tax rates expected to apply to the profit for
the year if enacted. The charge for current tax also includes adjustments, where considered necessary, to provision for
tax made in previous years arising from assessments framed during the year for such years.
The profits and gains of Nishat Chunian Power Limited – Subsidiary Company and NC Electric Company Limited –
Subsidiary Company from electric power generation are exempt from tax under clause (132), Part I of the Second
Schedule to the Income Tax Ordinance, 2001, subject to the conditions and limitations provided therein. The aforesaid
Subsidiary Companies are also exempt from minimum tax on turnover (sale of electricity) under clause (11A), Part IV

of the Second Schedule to the Income Tax Ordinance, 2001. However, full provision is made in the consolidated profit
and loss account on income from sources not covered under the above clause at current rates of taxation after taking
into account, tax credits and rebates available, if any.
Provision for income tax on the income of foreign subsidiary – Nishat Chunian USA Inc. is computed in accordance with
the tax legislation in force in the country where the income is taxable.
Deferred
Deferred tax is accounted for using the balance sheet liability method in respect of all temporary differences arising
from differences between the carrying amount of assets and liabilities in the consolidated financial statements and the
corresponding tax bases 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 deductible temporary differences, unused tax losses and tax credits can be utilized.
Deferred tax is calculated at the rates that are expected to apply to the period when the differences reverse based on
tax rates that have been enacted or substantively enacted by the reporting date. Deferred tax is charged or credited
in the profit and loss account, except to the extent that it relates to items recognized in other comprehensive income
or directly in equity. In this case the tax is also recognized in statement of comprehensive income or directly in equity,
respectively.
Nishat Chunian Power Limited - Subsidiary Company and NC Electric Company Limited – Subsidiary Company have
not made provision for deferred tax as the management believes that the temporary differences will not reverse in the
foreseeable future due to the fact that the profits and gains derived from electric power generation are exempt from
tax subject to the conditions and limitations provided for in terms of clause (132), Part I of the Second Schedule to the
Income Tax Ordinance, 2001.
2.4 Employee benefits
The main features of the schemes operated are as follows:
Provident fund
The Holding Company, Nishat Chunian Power Limited – Subsidiary Company, NC Electric Company Limited – Subsidi-
ary Company and NC Entertainment (Private) Limited – Subsidiary Company operate funded provident fund schemes
covering all permanent employees. Equal monthly contributions are made both by the employees and the employers’ to
funds in accordance with the funds’ rules. The employers’ contributions to the funds are charged to income currently.

The Holding Company provides for accumulating compensated absences, when the employees render service that
increase their entitlement to future compensated absences. Under the rules, head office employees are entitled to 15
days leave per year while factory staff and factory workers are entitled to 14 days leave per year respectively. Unutilized
leaves can be accumulated up to 28 days in case of factory staff and factory workers. Any further un-utilized leaves will
lapse. Any un-utilized leave balance can be encashed by them at any time during their employment. Unutilized leaves
can be used at any time by all employees, subject to the Holding Company’s approval. Provisions are made annually
to cover the obligation for accumulating compensated absences and are charged to income.
2.5 Fixed assets
Property, plant, equipment and depreciation
Property, plant and equipment except freehold land and capital work-in-progress are stated at cost less accumulated
depreciation and any identified impairment loss. Cost in relation to certain property, plant and equipment signifies his-
torical cost, borrowing cost pertaining to erection / construction period of qualifying assets and other directly attributable
2017 94 Nishat
Nishat (Chunian)
(Chunian) Limited
cost of bringing the asset to working condition. Freehold land and capital work-in-progress are stated at cost less any
identified impairment loss.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, 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, except in case of
Nishat Chunian Power Limited - Subsidiary Company, NC Electric Company Limited – Subsidiary Company and Nishat
Chunian USA Inc. – Subsidiary Company, where this accounting estimate is based on straight line method, so as to
write off the cost / depreciable amount of the assets over their estimated useful lives at the rates given in Note 13.1.
Depreciation on additions is charged from the month in which the assets are available for use upto the month prior to
disposal. The assets’ residual values and useful lives are reviewed at each financial year end and adjusted if impact
on depreciation is significant.
Derecognition
An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference
between the net disposal proceeds and carrying amount of the asset) is included in the consolidated profit and loss
account in the year the asset is derecognized.
Intangible asset
Intangible assets, which are non-monetary assets without physical substance, are recognized at cost, which comprise
purchase price, non-refundable purchase taxes and other directly attributable expenditures relating to their implemen-
tation and customization. After initial recognition, an intangible asset is carried at cost less accumulated amortization
and impairment losses, if any. Intangible assets are amortized from the month when these assets are available for use,
using the straight line method, whereby the cost of the intangible asset is amortized over its estimated useful life over
which economic benefits are expected to flow to the Group. The useful life and amortization method is reviewed and
adjusted, if appropriate, at each reporting date.
2.6 Goodwill
Goodwill represents the excess of the cost of an acquisition over the Group’s share of the identifiable net assets ac-
quired. Goodwill is tested annually for the impairment and carried at cost less accumulated impairment losses. Any im-
pairment is recognized immediately through the consolidated profit and loss account and is not subsequently reversed.
Negative goodwill is recognized directly in consolidated profit and loss account in the year of acquisition.

2.7 Investments
Classification of an investment is made on the basis of intended purpose for holding such investment. Management
determines the appropriate classification of its investments at the time of purchase and re-evaluates such designation
on regular basis.
Investments are initially measured at fair value plus transaction costs directly attributable to acquisition, except for ‘in-
vestment at fair value through profit or loss’ which is measured initially at fair value.
The Group assess at the end of each reporting period whether there is any objective evidence that investments are
impaired. If any such evidence exists, the Group applies the provisions of IAS 39 ‘Financial Instruments: Recognition
and Measurement’ to its investments.

a) Investment at fair value through profit or loss
Investment classified as held-for-trading and those designated as such are included in this category. Investments are
classified as held-for-trading if these are acquired for the purpose of selling in the short term. Gains or losses on invest-
ments held-for-trading are recognized in consolidated profit and loss account.
b) Held-to-maturity
Investments with fixed or determinable payments and fixed maturity are classified as held-to-maturity when the Group
has the positive intention and ability to hold to maturity. Investments intended to be held for an undefined period are not
included in this classification. Other long-term investments that are intended to be held to maturity are subsequently
measured at amortized cost. This cost is computed as the amount initially recognized minus principal repayments, plus
or minus the cumulative amortization, using the effective interest method, of any difference between the initially rec-
ognized amount and the maturity amount. For investments carried at amortized cost, gains and losses are recognized
in consolidated profit and loss account when the investments are de-recognized or impaired, as well as through the
amortization process.
c) Available-for-sale
Investments intended to be held for an indefinite period of time, which may be sold in response to need for liquidity, or
changes to interest rates or equity prices are classified as available-for-sale. After initial recognition, investments which
are classified as available-for-sale are measured at fair value. Gains or losses on available-for-sale investments are
recognized directly in consolidated statement of comprehensive income until the investment is sold, de-recognized or
is determined to be impaired, at which time the cumulative gain or loss previously reported in consolidated statement
of comprehensive income is included in consolidated 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 quoted market bids at the close of business on the reporting date.
Unquoted
Fair value of unquoted investments is determined on the basis of appropriate valuation techniques as allowed by IAS
39 ‘Financial Instruments: Recognition and Measurement’.
2.8 Inventories
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 parts and loose tools

Usable stores, spares parts, loose tools are valued principally at weighted average cost, while items considered obso-
lete are carried at nil value. Items-in-transit are valued at cost comprising invoice value plus other charges paid thereon.
Stock-in-trade
Cost of raw materials is measured using the weighted average cost formula.
Cost of work-in-process and finished goods comprise cost of direct material, labour and appropriate manufacturing
overheads. Cost of goods purchased for resale is based on first-in-first-out (FIFO) cost formula.
Materials in transit are stated at cost comprising invoice values plus other charges paid thereon. Waste stock is valued
at net realizable value.

2017 96 Nishat
Nishat (Chunian)
(Chunian) Limited
Net realizable value signifies the estimated selling price in the ordinary course of business less the estimated costs of
completion and the estimated costs necessary to make the sale.
2.9 Foreign currencies
These consolidated financial statements are presented in Pak Rupees, which is the Group’s functional currency. All
monetary assets and liabilities denominated in foreign currencies are translated into Pak Rupees at the rates of ex-
change prevailing at the balance sheet date, while the transactions in foreign currencies (except the results of foreign
operation which are translated to Pak Rupees at the average rate of exchange for the year) during the year are initially
recorded in functional currency at the rates of exchange prevailing at the transaction date. All non-monetary items are
translated into Pak Rupees at exchange rates prevailing on the date of transaction or on the date when fair values are
determined. Exchange gains and losses are recorded in the consolidated profit and loss account.
2.10 Borrowing cost
Borrowing costs are recognized as expense in the period in which these are incurred except to the extent of borrowing
costs 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.

2.11 Revenue recognition

Revenue from different sources is recognized as under:
• Revenue from sales is recognized on dispatch of goods to customers.

• Return on bank deposits is accrued on a time proportionate basis by reference to the principal outstanding and the
applicable rate of return.
• Revenue on account of energy is recognized on transmission of electricity and steam to customers, whereas on
account of capacity is recognized when due.
• Box office sales are recognized, net of applicable taxes and film distributor share, when sales are recorded at the
cinemas. Concession sales are recognized, net of applicable taxes, when sales are recorded at the cinemas. Media
revenue including media and digital media sales are recognized when services are provided.
2.12 Share capital

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.
2.13 Financial instruments
Financial instruments carried on the balance sheet include deposits, trade debts, loans and advances, other receiva-
bles, short term investments, cash and bank balances, short term borrowings, long term financing, accrued mark-up,
derivative financial instruments and trade and other payables. Financial assets and liabilities are recognized when the
Group becomes a party to the contractual provisions of the instrument. Initial recognition is made at fair value plus
transaction costs directly attributable to acquisition, except for ‘financial instrument at fair value through profit or loss’
which is measured initially at fair value.
Financial assets are de-recognized when the Group loses control of the contractual rights that comprise the financial
asset. The Group loses such control if it realizes the rights to benefits specified in contract, the rights expire or the
Group surrenders those rights. Financial liabilities are de-recognized when the obligation specified in the contract is
discharged, cancelled or expired. Any gain or loss on subsequent measurement (except available for sale investments)
and de-recognition is charged to the profit or loss currently. The particular measurement methods adopted are dis-
closed in the individual policy statements associated with each item and in the accounting policy of investments.
2.14 Trade debts and other receivables
Trade debts and other receivables are carried at original invoice value less an estimate made for doubtful debts based
on a review of all outstanding amounts at the year end. Bad debts are written off when identified.
2.15 Borrowings
Borrowings are recognized initially at fair value and are subsequently stated at amortized cost; any difference between
the proceeds and the redemption value is recognized in the consolidated profit and loss account over the period of the
borrowings using the effective interest rate method.
2.16 Trade and other payables
Liabilities for trade and other amounts payable are initially recognized at fair value which is normally the transaction
cost.
2.17 Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are set off and the net amount is reported in the consolidated financial state-
ments when there is a legal enforceable right to set off and the management intends either to settle on a net basis or
to realize the assets and to settle the liabilities simultaneously.
2.18 Cash and cash equivalents

Cash and cash equivalents are carried in the balance sheet at book value which approximates their fair value. For the
purpose of consolidated cash flow statement, cash and cash equivalents comprise cash in hand, cash at banks on
current, saving and deposit accounts, other short term highly liquid instruments that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value.
2.19 Derivative financial instruments

Derivative financial instruments are initially recognized at fair value on the date a derivative contract is entered into and
are re-measured to fair value at subsequent reporting dates. The method of recognizing the resulting gain or loss de-
pends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.
The Group designates certain derivatives as cash flow hedges.
The Group documents at the inception of the transaction the relationship between the hedging instruments and hedged
items, as well as its risk management objective and strategy for undertaking various hedge transactions. The Group
also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are
used in hedging transactions are highly effective in offsetting changes in cash flow of hedged items.
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are
recognized in equity. The gain or loss relating to the ineffective portion is recognized immediately in the consolidated
profit and loss account.
Amounts accumulated in equity are recognized in consolidated profit and loss account in the periods when the hedged
item will affect profit or loss.

2.20 Provisions

Provisions are recognized when the Group has a legal or constructive obligation as a result of past events and it is prob-
able that an outflow of resources embodying economic benefits will be required to settle the obligations and a reliable
estimate of the amount can be made.
2.21
Impairment

a) Financial assets
A financial asset is considered to be impaired if objective evidence indicate that one or more events had a negative
effect on the estimated future cash flows of that asset.
An impairment loss in respect of a financial asset measured at amortized cost is calculated as a difference between its
carrying amount and the present value of estimated future cash flows discounted at the original effective interest rate.
2017 98 Nishat
Nishat (Chunian)
(Chunian) Limited
An impairment loss in respect of available for sale financial asset is calculated by reference to its current fair value.
Individually significant financial assets are tested for impairment on an individual basis. The remaining financial assets
are assessed collectively in groups that share similar credit risk characteristics.
b) Non-financial assets
The carrying amounts of the Group’s assets are reviewed at each balance sheet date to determine whether there is any
indication of impairment. If such indication exists, the recoverable amount of such asset is estimated. An impairment
loss is recognized wherever the carrying amount of the asset exceeds its recoverable amount. Impairment losses are
recognized in consolidated profit and loss account. A previously recognized impairment loss is reversed only if there has
been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was
recognized. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased
amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment
loss been recognized for the asset in prior years. Such reversal is recognized in consolidated profit and loss account.
2.22 Segment reporting
Segment reporting is based on the operating (business) segments of the Group. An operating segment is a component
of the Group that engages in business activities from which it may earn revenues and incur expenses, including rev-
enues and expenses that relate to the transactions with any of the Group’s other components. An operating segment’s
operating results are reviewed regularly by the Group’s chief operating decision makers to make decisions about
resources to be allocated to the segment and assess its performance, and for which discrete financial information is
available.
Segment results that are reported to the chief operating decision makers include items directly attributable to a seg-
ment as well as those that can be allocated on a reasonable basis. Those incomes, expenses, assets, liabilities and
other balances which cannot be allocated to a particular segment on a reasonable basis are reported as unallocated.
The Group has following reportable business segments. Spinning – Zone 1, 2 and 3 (Producing different quality of
yarn using natural and artificial fibers), Weaving – Unit 1 and 2 (Producing different quality of greige fabric using yarn),
Dyeing (Producing dyed fabric using different qualities of greige fabric), Home Textile (Manufacturing of home textile
articles using processed fabric produced from greige fabric), Power Generation (Generating, transmitting and distribut-
ing power) and Entertainment (Operating cinemas).
Transaction among the business segments are recorded at arm’s length prices using admissible valuation methods.
Inter segment sales and purchases are eliminated from the total.
2.23 Dividend to ordinary shareholders and other appropriations

Dividend distribution to the ordinary shareholders is recognized as a liability in the Group’s consolidated financial state-
ments 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.
2.24 Ijarah transactions
Ijarah (lease) payments are recognized as expenses in consolidated profit and loss account on a straight-line basis
over the Ijarah term unless another systematic basis is representative of the time pattern of the user’s benefit even if
the payments are not on that basis.
2.25 Government grants
Government grants are recognized when there is reasonable assurance that entity will comply with the conditions at-
tached to it and grant will be received.

Nishat (Chunian)
Limited 99 2017
2017 2016
Rupees Rupees
3. AUTHORIZED SHARE CAPITAL
2017 2016
(Number of shares)
280,000,000 280,000,000 Ordinary shares of Rupees 10

each 2,800,000,000 2,800,000,000
20,000,000 20,000,000 Preference shares of Rupees

10 each 200,000,000 200,000,000
300,000,000 300,000,000 3,000,000,000 3,000,000,000
4. ISSUED, SUBSCRIBED AND PAID-UP SHARE CAPITAL
2017 2016
(Number of shares)

each fully paid in cash 1,347,578,480 1,347,578,480

each issued as fully paid
bonus shares 1,042,394,430 1,042,394,430
1,224,265 1,224,265 Ordinary shares of Rupees

10 each issued as fully paid
for consideration other than
cash to members of Umer
Fabrics Limited as per the
Scheme of Arrangement as
approved by the Honourable
Lahore High Court, Lahore 12,242,650 12,242,650
240,221,556 240,221,556 2,402,215,560 2,402,215,560
2017 2016
(Number of shares)
4.1 Ordinary shares of the Holding Company held by companies that are related parties:
Nishat Mills Limited 32,689,338 32,689,338

D.G. Khan Cement Company Limited 7,274,602 7,274,602
Adamjee Life Assurance Company Limited 1,300,000 -
41,263,940 39,963,940
2017 100 Nishat
Nishat (Chunian)
(Chunian) Limited
4.2 Movement during the year
2017 2016 2017 2016

(Number of shares) Rupees Rupees
240,221,556 200,184,630 At 01 July 2,402,215,560 2,001,846,300
- 40,036,926 Issue of right shares of - 400,369,260

Rupees 10 each at premium
240,221,556 240,221,556 At 30 June 2,402,215,560 2,402,215,560
2017 2016
Rupees Rupees
5. RESERVES
Composition of reserves is as follows:
Capital reserves
Exchange translation reserve (1,036,004) (983,772)

Share premium 600,553,890 600,553,890
599,517,886 599,570,118
Revenue reserves
General reserve 1,629,221,278 1,629,221,278
Unappropriated profit 10,313,009,675 8,460,809,921
11,942,230,953 10,090,031,199
12,541,748,839 10,689,601,317
6. LONG TERM FINANCING
From banking companies / financial institutions - secured
Long term loans (Note 6.1) 15,463,664,469 15,043,669,529

Long term musharaka (Note 6.2) 2,230,000,000 1,655,311,572
17,693,664,469 16,698,981,101
Less: Current portion shown under current liabilities (Note 11)
Long term loans 3,794,666,224 3,166,242,615

Long term musharaka 380,000,000 155,000,000
4,174,666,224 3,321,242,615
13,518,998,245 13,377,738,486
Nishat (Chunian)
2017
102
RATE OF MARK-UP MARK-UP MARK-UP
Nishat
LENDER 2017 2016 NUMBER OF INSTALMENTS
PER ANNUM REPRICING PAYABLE
Rupees Rupees
Nishat (Chunian)
6.1 Long term loans
(Chunian) Limited
Nishat (Chunian) Limited - Holding Company (Note 6.3)
Standard Chartered Bank (Pakistan) 437,500,000 687,500,000 3-month KIBOR + 0.75% Sixteen equal quarterly instalments commenced on 04 Quarterly Quarterly

Limited May 2015 and ending on 04 February 2019.
United Bank Limited - 93,750,000 3-month KIBOR + 1.25% Sixteen equal quarterly instalments commenced on 09 Quarterly Quarterly
June 2013 and ending on 09 March 2017.
Allied Bank Limited - 125,000,000 3-month KIBOR + 1.25% Sixteen equal quarterly instalments commenced on 06 Quarterly Quarterly
September 2013 and ending on 06 June 2017.
Allied Bank Limited - 150,000,000 3-month KIBOR + 1.25% Sixteen equal quarterly instalments commenced on 28 Quarterly Quarterly
February 2013 and ending on 29 November 2016.
Allied Bank Limited 25,083,500 30,872,000 SBP rate for LTFF + 1% Sixteen equal quarterly instalments commencing on 22 - Quarterly
October 2016 and ending on 22 July 2020.
January 2017 and ending on 30 September 2020.
January 2017 and ending on 30 September 2020.
May 2017 and ending on 11 February 2021.
Allied Bank Limited 235,000,000 - SBP rate for LTFF + 1% Thirty two equal quarterly instalments commencing on - Quarterly
24 February 2019 and ending on 24 November 2026.
18 April 2019 and ending on 18 January 2027.
19 April 2019 and ending on 19 January 2027.
Allied Bank Limited 116,512,500 - SBP rate for LTFF + 1% Fourty equal quarterly instalments commenced on 21 - Quarterly
03 July 2019 and ending on 03 April 2027.
Askari Bank Limited 227,500,000 297,500,000 3-month KIBOR + 0.70% Twenty equal quarterly instalments commenced on 08 Quarterly Quarterly
December 2015 and ending on 08 September 2020.
Rupees Rupees
Askari Bank Limited 157,700,000 - SBP rate for LTFF + 1% Fourty equal quarterly instalments commenced on 02 - Quarterly
March 2017 and ending on 08 December 2026.
June 2017 and ending on 22 March 2027.
Askari Bank Limited 6,200,000 - 3-month KIBOR + 1% Fourty equal quarterly instalments commencing on 12 Quarterly Quarterly
September 2017 and ending on 12 June 2027.
August 2017 and ending on 26 May 2027.
Askari Bank Limited 160,000,000 - SBP rate for LTFF + 1% Sixteen equal half yearly instalments commencing on - Quarterly
25 July 2019 and ending on 25 January 2027.
Askari Bank Limited 80,500,000 - 6-month KIBOR + 0.90% Ten equal half yearly instalments commencing on 07 Quarterly Quarterly
September 2019 and ending on 07 March 2024.
Pak Kuwait Investment Company 52,483,000 62,980,000 SBP rate for LTFF + 0.75% Eighteen equal quarterly instalments commenced on - Quarterly
(Private) Limited 22 November 2016 and ending on 22 February 2021.
The Bank of Punjab 50,000,000 150,000,000 3-month KIBOR + 0.75% Ten equal half yearly instalments commenced on 17 Quarterly Quarterly
June 2013 and ending on 17 December 2017.

The Bank of Punjab 200,000,000 400,000,000 3-month KIBOR + 0.75% Ten equal half yearly instalments commenced on 10 Quarterly Quarterly
December 2013 and ending on 10 June 2018.
Nishat (Chunian)
The Bank of Punjab 500,000,000 - 3-month KIBOR + 0.75% Ten equal half yearly instalments commencing on 30 Quarterly Quarterly
Limited
Samba Bank Limited 62,500,000 - 3-month KIBOR + 0.75% Sixteen equal quarterly instalments commenced on 28 Quarterly Quarterly
103
February 2014 and ending on 31 October 2017.
2017
2017
104
Nishat
Rupees Rupees
Nishat (Chunian)
Soneri Bank Limited - 46,875,000 3-month KIBOR + 1% Sixteen equal quarterly instalments commenced on 30 Quarterly Quarterly
(Chunian) Limited
April 2013 and ending on 31 January 2017.
Soneri Bank Limited 299,500,000 - SBP rate for LTFF + 1% Thirty two equal quarterly instalments commencing on - Quarterly
14 June 2019 and ending on 14 March 2027.
Soneri Bank Limited 222,000,000 - SBP rate for LTFF + 1% Thirty two equal quarterly instalments commencing on - Quarterly

06 July 2019 and ending on 06 April 2027.
Syndicated term finance

Allied Bank Limited 440,000,000 660,000,000 3-month KIBOR + 1% Ten equal half yearly instalments commenced on 27 Quarterly Quarterly
Habib Bank Limited 120,000,000 180,000,000 3-month KIBOR + 1% Ten equal half yearly instalments commenced on 27 Quarterly Quarterly
Habib Metropolitan Bank Limited 40,000,000 60,000,000 3-month KIBOR + 1% Ten equal half yearly instalments commenced on 27 Quarterly Quarterly
600,000,000 900,000,000
NC Electric Company Limited - Subsidiary Company (Note 6.5)
NIB Bank Limited 649,000,000 807,443,448 SBP rate for LTFF+ 1.25% Ten equal semi annual instalments with grace period - Quarterly
of two years
NIB Bank Limited 436,212,624 - 6-month KIBOR + 0.90% Ten equal semi annual instalments with grace period Half yearly Half yearly
of two years
Habib Bank Limited 1,299,402,845 1,063,402,845 6-month KIBOR + 0.90% Nine equal semi annual instalments with grace period Half yearly Quarterly
of two years
Allied Bank Limited 500,000,000 500,000,000 SBP rate for LTFF+ 1.00% Nine equal semi annual instalments with grace period - Quarterly
of eighteen months
2,884,615,469 2,370,846,293
Nishat Chunian Power Limited - Subsidiary Company (Note 6.6)
6,049,162,000 7,391,872,851 3-month KIBOR + 3% Twenty five quarterly instalments ending on 01 July Quarterly Quarterly
Senior facility 2020.
1,458,224,000 1,779,845,385 3-month KIBOR + 3% Twenty five quarterly instalments ending on 01 July
Quarterly Quarterly
Term finance facility 2020.
7,507,386,000 9,171,718,236
15,463,664,469 15,043,669,529
RATE OF PROFIT PER PROFIT PROFIT
Rupees Rupees
6.2 Long term musharaka
Nishat (Chunian) Limited - Holding Company (Note 6.4)
Dubai Islamic Bank (Pakistan) Limited 80,000,000 160,000,000 6-month KIBOR + 0.75% Ten equal half yearly instalments commenced on 29
Half Yearly Half Yearly
Faysal Bank Limited 500,000,000 - 3-month KIBOR + 0.70% Twenty equal quarterly instalments commencing on 21
Quarterly Quarterly
580,000,000 160,000,000
NC Electric Company Limited - Subsidiary Company (Note 6.8)
Dubai Islamic Bank Pakistan Limited 900,000,000 750,000,000 6 months KIBOR + 0.85% Ten equal semi annual instalments with grace period Half yearly Half yearly
of two years
Al Baraka Bank (Pakistan) Limited 750,000,000 745,311,572 6 months KIBOR + 0.85% Ten equal semi annual instalments with grace period Half yearly Quarterly
of two years
1,650,000,000 1,495,311,572
2,230,000,000 1,655,311,572
6.3 Long term loans are secured by first joint pari passu hypothecation and equitable mortgage on all present and future fixed assets of the Holding Company to the extent of Rupees
8,174.81 million (2016: Rupees 8,874.53 million) and ranking charge on all present and future fixed assets of the Holding Company to the extent of Rupees 3,238.667 million (2016:
Rupees 2,333.343 million).
6.4 Long term musharaka are secured by first joint pari passu hypothecation and equitable mortgage on all present and future fixed assets of the Holding Company to the extent of
Rupees 213.334 million (2016: Rupees 756.667 million) and ranking charge on all present and future fixed assets of the Company to the extent of Rupees 666.67 million (2016:
Rupees Nil).
6.5 Long term loans from NIB Bank Limited and Habib Bank Limited are secured against first pari passu charge of Rupees 4,000 million over all present and future fixed assets of the

NC Electric Company Limited - Subsidiary Company, cross corporate guarantee of Nishat (Chunian) Limited to NIB Bank Limited amounting to Rupees 1,500 million and cross
corporate guarantee of Nishat (Chunian) Limited to Habib Bank Limited amounting to Rupees 4,400 million. Long term loan from Allied Bank Limited is secured against first pari
Nishat (Chunian)
passu charge of Rupees 667 million over all present and future fixed assets (including land and building) of the NC Electric Company Limited - Subsidiary Company and cross
corporate guarantee of Nishat (Chunian) Limited amounting to Rupees 500 million.
105
2017 Limited
6.6 This represents long term financing obtained from a consortium of banks led by United Bank Limited (Agent
Bank). The portion of long term financing from Faysal Bank Limited is on murabaha basis. The overall
financing is secured against registered first joint parri passu charge on immovable property, mortgage of
project receivables (excluding energy payment receivables), hypothecation of all present and future assets
and all properties of Nishat Chunian Power Limited - Subsidiary Company (excluding working capital
hypothecated property), lien over project bank accounts and pledge of shares held by the Holding
Company in Nishat Chunian Power Limited - Subsidiary Company. It carries mark-up at the rate of three
months Karachi Inter-Bank Offered Rate (KIBOR) plus three percent per annum, payable on quarterly basis.
The effective mark-up rate charged during the year on the outstanding balance is 9.06% (2016: 10.01% to
9.35%) per annum. As of 30 June 2017, the finance is repayable in thirteen quarterly instalments ending on
01 July 2020.
6.7 In accordance with the terms of agreement with the lenders of long term finances to Nishat Chunian Power
Limited - Subsidiary Company, there are certain restrictions on the distribution of dividends by Nishat
Chunian Power Limited - Subsidiary Company.
6.8 Long term musharaka from Dubai Islamic Bank Pakistan Limited is secured against first pari passu charge of
Rupees 1,333 million over all present and future fixed assets (including land and building) of the NC Electric
Company Limited - Subsidiary Company and cross corporate guarantee of Nishat (Chunian) Limited
amounting to Rupees 1,000 million. Long term musharaka from Al Baraka Bank (Pakistan) Limited is secured
against first pari passu charge of Rupees 1,000 million over all present and future fixed assets (including
land and building) of the NC Electric Company Limited - Subsidiary Company and cross corporate guarantee
of Nishat (Chunian) Limited amounting to Rupees 1 billion.
6.9 Total facility amount of long term loans and long term musharaka of NC Electric Company Limited -
Subsidiary Company amounts to Rupees 3.5 billion and Rupees 2 billion respectively. The effective mark-
up rate charged during the year on the outstanding balance ranged from 4.00% to 7.31% (2016: 4.00% to
8.99%) per annum. Out of the aggregate facilities of Rupees 5,554 million (2016: Rupees 5,549 million) for
opening letters of credit, the amount utilised (including cancelled letter of credit) at 30 June 2017 was
Rupees 4,534 million (2016: Rupees 4,361 million). The aggregate facilities for opening letters of credit are
secured by first pari passu charge on the present and future fixed assets of the NC Electric Company
Limited - Subsidiary Company and cross corporate guarantee of Nishat (Chunian) Limited amounting to
Rupees 5.3 billion. In accordance with the terms of agreement with the lenders of long term finances, there
are certain restrictions on the distribution of dividends by the NC Electric Company Limited - Subsidiary
Company.
7 DEFERRED INCOME TAX LIABILITY

The liability for deferred income tax of the NC Entertainment (Private) Limited - Subsidiary Company
originated due to timing differences relating to:
2017 2016
Rupees Rupees
Taxable temporary difference
Accelerated tax depreciation 44,854,954 -
Deductible temporary difference
Available tax losses (15,167,109) -
Deferred income tax liability 29,687,845 -
7.1 Deferred income tax asset of Rupees 578.271 million (2016: Rupees 628.580 million) has not been
recognized in these consolidated financial statements as the Holding Company's management believes that
sufficient taxable profits will not be probably available in foreseeable future, hence, the temporary
differences may not reverse.
2017 106 Nishat
Nishat (Chunian)
(Chunian) Limited
7.2 The Holding Company has carry forwardable tax losses of Rupees 3076 million (2016: Rupees 2,621
7.3 For the purposes of current taxation of Nishat Chunian Power Limited - Subsidiary Company, the tax credit
available for carry forward is estimated at Rupees 94.115 million (2016: Rupees 70.733 million). Management
believes that the tax credit available for carry forward may not be utilized in the foreseeable future.
Consequently, based on the prudence principle, deferred tax asset has not been recognized in these
consolidated financial statements.
7.4 Nishat Chunian USA Inc. has net operating loss carry forwards (NOL) of approximately Rupees 33,116,800
which expire beginning in 2032. The Subsidiary Company has not recognized deferred tax asset resulting
from NOL of approximately Rupees 11,213,600 based on prudence principle.
2017 2016
Rupees Rupees
8. TRADE AND OTHER PAYABLES

Creditors (Note 8.1) 934,990,536 1,077,195,719
Accrued liabilities 805,486,038 780,885,797
Advances from customers 81,790,429 69,011,424
Securities from customers - interest free 3,387,239 -
Securities from contractors - interest free and repayable on
completion of contracts 3,484,800 3,960,588
Retention money 8,659,318 6,179,153
Income tax deducted at source 20,921,766 22,060,369
Unclaimed dividend 45,804,405 40,307,856
Fair value of forward exchange contracts 17,060,202 -
Workers' welfare fund - 21,681,803
Dividend payable to non-controlling interests - 314,581,957
Others 46,121,551 34,460,885
2,190,189,285 2,593,380,872
8.1 It includes Rupees 0.737 million (2016: Rupees 3.025 million) due to a related party.
Add: Interest for the year (Note 29) 12,217,220 6,602,743
Add: Allocation for the year 222,482,888 223,055,321
457,755,429 444,518,042
Less: Payments during the year 235,272,428 221,462,721
8.2.1 The Group retains workers' profit participation funds for their business operations till the date of allocation to
workers. Interest is paid at prescribed rate under the Companies Profit (Workers' Participation) Act, 1968 on
funds utilized by the Group till the date of allocation to workers.
9. ACCRUED MARK-UP
Long term financing 263,814,219 294,592,334
Short term borrowings 242,983,325 164,213,370
506,797,544 458,805,704

2017 2016
Rupees Rupees
10. SHORT TERM BORROWINGS
From banking companies - secured
Nishat (Chunian) Limited - Holding Company
Short term running finances (Notes 10.1 and 10.2) 2,143,226,773 2,127,918,129
Export finances - Preshipment / SBP refinance (Notes 10.1 and 10.3) 4,360,059,876 5,222,164,393
Other short term finances (Notes 10.1 and 10.4) 8,733,500,000 4,770,000,000
NC Electric Company Limited - Subsidiary Company
Short term running finances (Notes 10.5) 18,697,064 -
Nishat Chunian USA Inc. - Subsidiary Company
Revolving credit line (Note 10.6) 176,054,205 239,857,805
Nishat Chunian Power Limited - Subsidiary Company
Short term running finances (Note 10.7) 950,954,000 306,442,353

Money market loans (Note 10.8) 3,900,000,000 3,250,000,000
Murabaha facilities (Note 10.9) 1,192,265,000 544,182,895
21,474,756,918 16,460,565,575
10.1 These finances are obtained from banking companies under mark-up arrangements and are secured by
hypothecation of all present and future current assets of the Holding Company and lien on export bills to the
extent of Rupees 25,462 million (2016: Rupees 25,462 million) and ranking charge on all present and future
current assets of the Holding Company to the extent of Rupees 5,667 million (2016: Rupees 534 million).
These form part of total credit facilities of Rupees 22,265 million (2016: Rupees 19,065 million).
10.3 The rates of mark-up on Pak Rupee finances and US Dollar finances range from 2.40% to 6.43% (2016:
2.95% to 6.46%) per annum and 1.30% to 2% (2016: 1.15% to 1.45%) per annum respectively on the
balance outstanding.
10.5 This finance facility is obtained from a banking company under mark-up arrangement at the rate of 3-month
KIBOR plus 0.75% per annum. It is secured against ranking charge of Rupees 133.33 million on present and
future current assets of the Subsidiary Company and cross corporate guarantee of Nishat (Chunian) Limited -
Holding Company amounting to Rupees 120 million. Effective rate of mark-up charged during the year was
6.88%. Further, murahaba facility available from a commercial bank amounted to Rupees 300 million (2016:
Rupees Nil). The amount utilized as at 30 June 2017 was Rupees Nil (2016: Rupees Nil). The facility is
secured against hypothecation charge over present and future fixed and current assets of Rupees 750
million and cross corporate guarantee of Nishat (Chunian) Limited - Holding Company amounting to Rupees
300 million.
10.6 Nishat Chunian USA Inc. - Subsidiary Company has a revolving credit pursuant to which it may borrow up to
US Dollars 2,500,000 (Rupees 262 million) subject to borrowing base availability, bearing interest at prime
plus 0.25% (4.50% at 30 June 2017). The borrowings base equals to 75% of the aggregate amount of all
qualified accounts receivable, as defined. This note is collateralized by as first security interest in
substantially all assets of the Nishat Chunian USA Inc. - Subsidiary Company and is guaranteed by the
Holding Company.
2017 108 Nishat
Nishat (Chunian)
(Chunian) Limited
10.7 Running finance main facilities available from commercial banks under mark-up arrangements amount to
Rupees 6,450 million (2016: Rupees 5,950 million). Running finance facilities are available at mark-up rates
ranging from one month to three months KIBOR plus 0.25% to 2% per annum, payable monthly/quarterly, on
the balance outstanding. Running finance facilities are secured against first joint pari passu hypothecation
charge on the present and future current assets of Nishat Chunian Power Limited - Subsidiary Company
comprising of fuel stocks, inventories and energy price payment receivables from NTDC. The mark-up rate
charged during the year on the outstanding balance ranges from 6.38% to 8.12% (2016: 6.85% to 9.01%) per
annum.
10.8 Money market loans are available to Nishat Chunian Power Limited - Subsidiary Company as a sub-facility
to the running finance facility. Such facilities amount to Rupees 4,950 million (2016: Rupees 4,250 million)
and are available at mark-up rates ranging from one month to six months KIBOR plus 0.04% to 0.20% per
annum. Money market loans are secured against first joint pari passu hypothecation charge on the present
and future current assets of Nishat Chunian Power Limited - Subsidiary Company comprising of fuel stocks,
inventories and energy price payment receivables from NTDC. The mark-up rate charged during the year on
the outstanding balance ranges from 6.03% to 6.55% (2016: 6.15% to 7.33% ) per annum.
10.9 Murabaha and musharka main facilities available from islamic banks aggregate Rupees 4,500 million (2016:
Rupees 4,500 million) at mark-up rates ranging from one week to three months KIBOR plus 0.1% to 0.5%
per annum. The amount utilised as at 30 June 2017, for musharka was Rupees 1,192.265 million (2016:
Rupees 544.18 million). Mark-up on murabaha is payable at the maturity of the respective murabaha
transaction. Whereas, the mark-up on musharka is payable quarterly on the balance outstanding. The
facilities are secured against first joint pari passu hypothecation charge on the present and future current
assets of Nishat Chunian Power Limited - Subsidiary Company comprising of fuel stocks, inventories and
energy price payment receivables from NTDC. The mark-up rate charged during the year on the outstanding
balance ranges from 6.75% to 6.19% (2016: 6.50% to 9.01%) per annum.
10.10 The main facilities available to Nishat Chunian Power Limited - Subsidiary Company for opening letters of
credit and guarantees aggregate Rupees 1,411.032 million (2016: Rupees 1,556.03 million). The amount
utilised at 30 June 2017, for letters of credit was Rupees 38.068 million (2016: Rupees 61.16 million) and for
guarantees was Rupees 26.747 million (2016: Rupees 9.03 million). The aggregate facilities for opening
letters of credit and guarantees are secured by ranking charge on the present and future current assets
comprising of fuel stocks, inventories and energy price payment receivables from NTDC, counter guarantee,
cash margin and lien over import documents.
2017 2016
Rupees Rupees
11. CURRENT PORTION OF NON-CURRENT LIABILITIES
Long term financing (Note 6) 4,174,666,224 3,321,242,615
12. CONTINGENCIES AND COMMITMENTS
12.1 Contingencies
12.1.1 The Holding Company preferred appeal against the Government of Punjab in the Honorable Lahore High
Court, Lahore against imposition of electricity duty on internal generation and the writ petition has been
accepted. However, Government of Punjab has moved to the Honourable Supreme Court of Pakistan
against the order of Honourable Lahore High Court, Lahore. The Holding Company has fully provided its
liability in respect of electricity duty on internal generation. As at the reporting date, an amount of Rupees
66.650 million (2016: Rupees 54.941 million) is payable on this account but the management of the Holding
Company is confident that payment of electricity duty will not be required.
12.1.2 The Collectorate of Customs (Export) has issued show cause notices with the intention to reject the duty
draw back claims aggregating to Rupees 9.482 million on blended grey fabrics exported under Duty and
Tax Remission Rules for Export (DTRE) scheme. The department is of the view that the Holding Company
has not submitted Appendix-1 as per Rule 297-A of the above referred scheme. The Holding Company
considers that since it has taken benefit of remission of sales tax only, it is entitled to full duty draw back and
filed appeal before Appellate Tribunal Inland Revenue (ATIR), Karachi Bench which was decided against the
Holding Company. The Holding Company also applied to Federal Board of Revenue (FBR) to constitute
Alternate Dispute Resolution Committee (ADRC) in terms of section 195C of the Customs Act, 1969 to settle
the dispute. ADRC vide its order dated 16 April 2008 has recommended the case in favour of the Holding
Company and forwarded the case to FBR. However, FBR has not accepted the recommendations of ADRC.
The Holding Company has now filed appeal before the Honourable High Court of Sindh against the order of
ATIR, where the case is pending.
12.1.3 The Holding Company impugned selection of its tax affairs for audit in terms of section 177 of the Income
Tax Ordinance, 2001 for tax year 2009 in Honourable Lahore High Court, Lahore through writ petition. After
dismissal of writ petition by the Honourable Lahore High Court, Lahore, the tax department has completed
the audit of tax year 2009 of income tax affairs of the Holding Company and Deputy Commissioner Inland
Revenue (DCIR) has passed an order under sections 122(1)/122(5) of the Income Tax Ordinance, 2001
creating a tax demand of Rupees 6.773 million. The Holding Company has filed appeal before
Commissioner Inland Revenue (Appeals) [CIR(A)] against the decision of DCIR which is pending
adjudication. No provision against this demand has been made in these consolidated financial statements
as the Holding Company is hopeful of a favourable outcome of appeal based on the opinion of the tax
advisor.
12.1.4 As a result of withholding tax audit for the tax year 2006, DCIR has raised a demand of Rupees 32.156 million
under sections 161 and 205 of the Income Tax Ordinance, 2001. The Holding Company is in appeal before
ATIR as its appeal before Commissioner Inland Revenue (Appeals) [CIR(A)] was unsuccessful. The Holding
Company expects a favourable outcome of the appeal based on advice of the tax counsel. The Holding
Company also challenged the initiation of proceedings, under section 161 and 205 of the Income Tax
Ordinance, 2001 pertaining to tax years 2007, 2008, 2009, 2010, 2011 and 2012 in the Honourable Lahore
High Court, Lahore through a writ petition. The Honourable Lahore High Court, Lahore directed the Tax
Department to issue notice for reconciliation and in case default is established only then action under
section 205 of the Income Tax Ordinance, 2001 can be taken. The Holding Company also filed intra court
appeals to the Honourable Lahore High Court, Lahore, which were dismissed. Against this dismissal, appeal
has been filed before the Supreme Court of Pakistan which is pending adjudication. The management of the
Holding Company believes that the expected favourable outcome of its appeal before ATIR, in respect of
tax year 2006 on same issues, will dispose of the initiation of these proceedings. In respect of tax year
2012, the case has been decided at departmental level as stated in Note 12.1.7, hence appeal filed before
the Supreme Court of Pakistan in respect of tax year 2012 shall be withdrawn shortly.
12.1.5 The Holding Company is in appeal before ATIR as its appeal before CIR(A) against the order of Additional
Commissioner Inland Revenue (ACIR) was unsuccessful. ACIR has passed an order under section 122(5A)
of the Income Tax Ordinance, 2001 for tax year 2011 whereby a demand of Rupees 6.822 million has been
raised. No provision against the demand has been made in these consolidated financial statements as the
Holding Company is hopeful of a favourable outcome of appeal based on opinion of the tax advisor.
12.1.6 The Deputy Collector (Refund – Gold) by order dated 16 May 2007 rejected the input tax claim of the
Holding Company, for the month of June 2005, amounting to Rupees 1.604 million incurred in zero rated
local supplies of textile and articles thereof on the grounds that the input tax claim is in contravention of SRO
992(I)/2005 which states that no registered person engaged in the export of specified goods (including
textile and articles thereof) shall, either through zero-rating or otherwise, be entitled to deduct or reclaim
input tax paid in respect of stocks of such goods acquired up to 05 June 2005, if not used for the purpose of
exports made up to the 31 December 2005. The appeal of the Holding Company before ATIR was
successful and input tax claim of the Holding Company is expected to be processed after necessary
verification in this regard. Pending the outcome of verification no provision for inadmissible input tax has
been recognized in these consolidated financial statements.
2017 110 Nishat
Nishat (Chunian)
(Chunian) Limited
12.1.7 The ACIR through an order under section 161/205 of the Income Tax Ordinance, 2001 created a demand of
Rupees 147.745 million for tax year 2012 on account of alleged non-deduction of income tax on payments
against the heads commission to selling agents on exports and export marketing expenses. Being
aggrieved, the Holding Company filed an appeal before CIR(A), who vide order dated 09 June 2016
accepted the stance of the Holding Company and deleted the demand related to commission to selling
agents on exports, whereas, with respect to export marketing expenses, CIR(A) remanded back the case to
ACIR. However, the Holding Company has filed appeal before ATIR which is pending for fixation. Based on
grounds and facts, the appeal is likely to be decided in favour of the Holding Company. The demand
created under section 161/205 of the Income Tax Ordinance, 2001 of tax year 2012 amounting to Rupees
147.745 million by ACIR was subsequently reduced to Rupees 165,593 through appeal effect order issued
by ACIR. While giving appeal effect ACIR did not give adjustment of the refunds already adjusted against the
demand raised in the proceedings. Therefore, application for rectification of order has been filed, however,
rectified order has not yet been issued by the learned ACIR.
12.1.8 The Holding Company filed appeal before CIR(A) against the order of ACIR. ACIR passed an order under
section 122(5A) of the Income Tax Ordinance, 2001 for tax year 2012 whereby a demand of Rupees 125.162
million has been raised. CIR(A) vide order dated 29 June 2016 has deleted some of the additions made by
ACIR. Being aggrieved by the order of CIR(A), the Holding Company as well as the tax department have
been made in these consolidated financial statements as the Holding Company is hopeful for a favourable
outcome of appeal based on the opinion of the tax advisor.
12.1.9 The Holding Company filed appeal before CIR(A) against the order of ACIR. ACIR passed an order under
section 122(5A) of the Income Tax Ordinance, 2001 for tax year 2010 whereby a demand of Rupees 142.956
million has been raised. CIR(A) vide order dated 28 October 2016 has deleted some of the additions made
by ACIR. Being aggrieved by the order of CIR(A), the Holding Company as well as the tax department have
been made in these consolidated financial statements as the Holding Company is hopeful for a favourable
12.1.10 The Deputy Commissioner Inland Revenue passed an order under sections 161/205 of the Income Tax
Ordinance, 2001 creating a demand of Rupees 19.073 million for the tax year 2014. The Holding Company
preferred an appeal against this order before CIR(A). The CIR(A) adjudicated that impugned order is
unsustainable and remanded back the matter to taxation officer for consideration of legal grounds and merits
of the case. The Holding Company has also filed an appeal before ATIR against the order of CIR(A). The
proceedings before both forums are pending for adjudication. No provision against this demand has been
made in these consolidated financial statements as the Holding Company is confident of favorable outcome
of its appeals.
12.1.11 Through show cause notice, the Collector of Customs, Karachi raised demand of Rupees 23.585 million on
the grounds that the Holding Company was not entitled for exemption of sales tax and facility of reduced rate
of income tax on 13 consignments of cotton imported during the period from April 2013 to April 2014. The
vires of show cause notice were challenged in Honorable Sindh High Court at Karachi from where stay was
granted with the direction to the Collector that he will not pass final order pursuant to the impugned show
cause notice particularly in respect of advance income tax till next date of hearing. In spite of the categorical
orders of the Honorable High Court, the Collector passed order, creating the demand of the aforesaid
amount. Appeal against the said order has been filed in ATIR, Karachi but has not been decided. There is
sufficient case law on the subject and there is every likelihood that case will be decided in favour of the
Holding Company.

12.1.12 The Holding Company is contesting sales tax demands / rejections of sales tax by taxation authorities
amounting to Rupees 89.605 million at various forums. These demands have been raised on account of
various issues, like refund of sales tax on purchases of furnace oil and diesel, non-provision of documents
against certain refund processing system objections and supplies made to certain parties. No provision
against the aforesaid demands has been made in these consolidated financial statements as the
management is confident of favourable outcome of its appeals based on advice of the legal counsel.The
name of the Holding Company was selected by the FBR through balloting for audit of its sales tax record of
tax year 2014. Writ petition against the selection was filed and in pursunance of Court's order, the record was
submitted to the assessing officer. Based on the audit, Deputy Commissioner has issued a show cause
notice on account of alleged discrepancies/observations noted during audit to the tune of Rupees 7.480
million. The Holding Company is in the process of replying to the show cause notice and expects
favourable outcome of the matter, hence no provision has been recognized in these consolidated financial
statements.
12.1.13 Being aggrieved, the Holding Company is in appeal before ATIR against the order of CIR(A). The ACIR has
passed an order under section 122(5A) of the Income Tax Ordinance, 2001 for tax year 2013 whereby a
demand of Rupees 27.845 million has been raised. The appeal before CIR(A) has been decided and some
matters have been decided in favour of the Holding Company. No provision against this demand has been
made in these consolidated financial statements as the Holding Company is hopeful for a favourable
12.1.14 The Holding Company has challenged, before Honourable Lahore High Court, Lahore, the vires of first
proviso to sub-clause (x) of clause (4) of SRO 491(1)/2016 dated 30 June 2016 issued under sections 3 and
4 read with sections 8 and 71 of the Sales Tax Act, 1990 whereby through amendment in the earlier SRO
1125(I)/2011 dated 31 December 2011 adjustment of input sales tax on packing material of all sorts has
been disallowed. The Honourable Lahore High Court has issued stay order in favour of the Holding
Company. Consequently, the Holding Company has claimed input sales tax amounting to Rupees 80.269
million (2016: Rupees Nil) paid on packing material in its respective monthly sales tax returns. The
management, based on advice of the legal counsel, is confident of favorable outcome of its appeal.
12.1.15 Guarantees of Rupees 329.388 million (2016: Rupees 347.051 million) have been issued by the banks of the
Holding Company to Sui Northern Gas Pipelines Limited against gas connections, Shell Pakistan Limited
against purchase of furnace oil and Lahore Electric Supply Company Limited against electricity connection.
12.1.16 Guarantees of Rupees 196 million (2016: Rupees 156 million) have been issued by the banks of the Holding
Company to Director, Excise and Taxation, Karachi against disputed amount of infrastructure cess.
12.1.17 Post dated cheques have been issued to custom authorities in respect of duties amounting to Rupees
2,328.471 million (2016: Rupees 1,893.971 million) on imported material availed on the basis of consumption
and export plans. In the event the documents of exports are not provided on due dates, cheque issued as
security shall be encashable.
12.1.18 The Holding Company has issued cross corporate guarantees of Rupees 14.12 billion (2016: Rupees 13.7
billion) on behalf of NC Electric Company Limited - Subsidiary Company to secure the obligations of
Subsidiary Company towards its lenders.
12.1.19 During the financial year 2014, a sales tax demand of Rupees 1,161.548 million was raised against Nishat
Chunian Power Limited - Subsidiary Company through order dated 28 November 2013, by the Assistant
Commissioner Inland Revenue (‘ACIR’) by disallowing input sales tax for the tax periods from July 2010 to
June 2012. Such amount was disallowed on the grounds that the revenue derived by Nishat Chunian Power
Limited - Subsidiary Company on account of ‘capacity purchase price’ was against a non-taxable supply
and thus, the entire amount of input sales tax claimed by Nishat Chunian Power Limited - Subsidiary
Company was required to be apportioned with only the input sales tax attributable to other revenue stream
i.e. ‘energy purchase price’ admissible to Nishat Chunian Power Limited - Subsidiary Company. Against the
aforesaid order, Nishat Chunian Power Limited - Subsidiary Company preferred an appeal before the
Commissioner Inland Revenue (Appeals) (‘CIR(A)’) who vacated the ACIR’s order on the issue regarding
apportionment of input sales tax. However, the CIR(A) did not adjudicate upon Nishat Chunian Power Limited
- Subsidiary Company’s other grounds of appeal. Consequently, Nishat Chunian Power Limited -
Subsidiary Company preferred an appeal before the Appellate Tribunal Inland Revenue (‘ATIR’) on the
issues not adjudicated upon by the CIR(A) and the Department also preferred a second appeal before the
ATIR against the CIR(A)’s order, which are both pending adjudication.
2017 112 Nishat
Nishat (Chunian)
(Chunian) Limited
Furthermore, during the financial year 2015, the Deputy Commissioner Inland Revenue (‘DCIR’) issued a
show cause notice dated 11 November 2014, whereby intentions were shown to raise a sales tax demand of
Rupees 1,093.262 million by disallowing input sales tax claimed by Nishat Chunian Power Limited -
Subsidiary Company for the tax periods from July 2010 to June 2012 on the above mentioned grounds of
the ACIR. The Subsidiary Company agitated the initiation of such proceedings through institution of a writ
petition before the Lahore High Court ('LHC'). During the current period, LHC has disposed of the petition in
the Subsidiary Company's favour through its order dated 31 October 2016, by stating that there is no supply
being made against capacity purchase price, hence, there is no existence of an “exempt supply”.
Accordingly, the Subsidiary Company is free to reclaim or deduct input tax under the relevant provisions of
Sales Tax Act, 1990. However, the tax department has filed an appeal before the Supreme Court of Pakistan
against the aforementioned LHC's order.
For the period July 2013 to June 2014, Subsidiary Company’s case was selected for audit by ‘Federal
Board of Revenue’ (‘FBR’), which selection was objected to, on jurisdictional basis, by Subsidiary Company
by way of filing a writ petition before LHC. While, LHC has allowed the department to proceed with audit
proceedings, it has been directed that no adjudication order, consequent to conduct of audit, shall be
passed after confronting the audit report. The audit proceedings were completed by the department during
the financial year 2016 and audit report thereof was submitted to the Subsidiary Company seeking
explanations in regard to the issues raised therein. In the subject audit report, an aggregate amount of
Rupees 631.769 million primarily including a disallowance of input sales tax of Rupees 622.263 million has
been confronted on same grounds as explained above. LHC through its order dated 09 January 2017 has
allowed initiation of adjudication proceedings after issuance of audit report. On 17 May 2017, the DCIR has
issued a showcause notice as to why sales tax of the aforesaid amount of Rupees 631.769 million alongwith
default surcharge should not be recovered from the Subsidiary Company. The Subsidiary Company has
filed a representation in this regard with the Chairman, Federal Board of Revenue. As of the balance sheet
date, no order has been issued by the DCIR.
Based on the advice of the Subsidiary Company's legal counsel and the abovementioned LHC's decision
dated 31 October 2016, management considers that there exist meritorious grounds to support the
Subsidiary Company’s stance that input sales tax incurred by the Subsidiary Company is not legally required
to be attributed to revenue representing ‘capacity purchase price’ and thus disallowance proposed by
department would not be upheld by appellate authorities/courts. Consequently, no provision has been
made in these consolidated financial statements on such account.
12.1.20 Subsequent to the year end, the DCIR has issued an amendment order dated 31 August 2017 under section
122 of the Income Tax Ordinance, 2001 for Tax Year 2014 whereby income tax of Rupees 191.536 million
has been levied on other income, interest on delayed payments from NTDC, minimum tax on capacity and
scrap sales and has also levied Workers' Welfare Fund of Rupees 12.946 million. The Subsidiary Company
is in the process of filing an appeal before the CIR(A) against this order. Management considers that there
exist meritorious grounds to defend the Subsidiary Company’s stance and the ultimate decision from the
appellate authorities would be in the Subsidiary Company's favour. Consequently, no provision has been
made in these consolidated financial statements for the aggregate amount of Rupees 204.482 million.
12.1.21 Guarantees of Rupees 12.926 million (2016: Rupees 10.5 million) have been issued by banks of NC Electric
Company Limited - Subsidiary Company in favour of Director, Excise and Taxation, Karachi against disputed
amounts of infrastructure cess.
12.1.22 The followings have been issued by the banks on behalf of Nishat Chunian Power Limited - Subsidiary
Company:
(a) Letter of guarantee of Rupees 26.747 million (2016: Rupees 9.032 million) in favour of Director,
Excise and Taxation, Karachi under direction of Sindh High Court in respect of suit filed for levy of
infrastructure cess.
12.1.23 Post dated cheques amounting to Rupees 29.472 million (2016: Rupees Nil) have been issued by NC
Electric Company Limited - Subsidiary Company in favour of Commissioner Inland Revenue against
disputed amount of tax on import of coal.
12.1.24 NC Entertainment (Private) Limited - Subsidiary Company was issued notice under section 176(1) regarding
selection for tax audit under section 214 (C) of the Income Tax Ordinance, 2001 for Tax Year 2015. The case
is under process and in opinion of management any tax libility outcome is highly unlikely.
12.2 Commitments:
12.2.1 Contracts for capital expenditure amounting to Rupees 49.228 million (2016: Rupees 2,525.373 million).
12.2.2 Letters of credit other than for capital expenditure amounting to Rupees 1356.239 million (2016: Rupees
825.910 million).
12.2.3 Outstanding foreign currency forward contracts of Rupees 4,940.270 million (2016: Rupees 4,109.245)
12.2.4 The amount of future lease rentals on contract of NC Entertainment (Private) Limited - Subsidiary Company
and the period in which payments will become due are as follows:
2017 2016
Rupees Rupees
Not later than one year 101,661,000 -

Later than one year but not later than five years 406,644,000 -
Later than five years 1,524,915,000 -
2,033,220,000
12.2.5 The Nishat Chunian USA, Inc. - Subsidiary Company is obligated under an operating lease which expires 31
January 2018 and provides for a minimum annual rentals of approximately Rupees 8.07 million.
2017 2016
Rupees Rupees
13. FIXED ASSETS
Property, plant and equipment:
Operating fixed assets (Note 13.1) 29,571,507,026 22,224,947,838

Capital work-in-progress (Note 13.2) 255,117,935 5,029,074,918
Major spare parts and standby equipment - 162,636,138
29,826,624,961 27,416,658,894
Intangible asset:
Computer software (Note 13.1) 23,471,181 7,819,748

29,850,096,142 27,424,478,642
2017 114 Nishat
Nishat (Chunian)
(Chunian) Limited
13.1 Reconciliations of carrying amounts of operating fixed assets and intangible asset at the beginning and at the end of the year are as follows:
Operating fixed assets Intangible asset

Description Buildings on Plant and Standby Electric Furniture, fixture Office Computer
Freehold land Factory equipment Motor vehicles Total
freehold land machinery equipment installations and equipment equipment software
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - -- - - - - - - - - - - - - - - - R u p e e s - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
At 30 June 2015
Cost 887,973,249 3,110,162,516 29,439,919,693 33,198,206 568,866,270 240,428,977 88,153,679 89,802,424 204,921,138 34,663,426,152 17,634,614
Net book value 887,973,249 2,092,768,916 18,685,033,119 12,329,780 388,390,275 129,770,967 45,051,653 48,628,235 116,314,956 22,406,261,150 6,230,445
Additions - 155,772,470 1,575,276,824 - 28,212,147 2,235,208 3,196,573 43,851,012 42,371,867 1,850,916,101 5,991,800
Disposals:
Cost - - (506,976,201) - - - - (1,092,339) (33,033,508) (541,102,048) -
Accumulated depreciation - - 460,772,190 - - - - 672,724 22,668,651 484,113,565 -
- - (46,204,011) - - - (419,615) (10,364,857) (56,988,483) -
Depreciation / amortization charge - (110,116,757) (1,754,796,440) (1,187,780) (39,901,650) (13,111,891) (5,721,456) (12,109,728) (28,569,492) (1,965,515,194) (4,402,497)
Impairment loss (9,725,736) (9,725,736)
At 30 June 2016
Cost 887,973,249 3,265,934,986 30,508,220,316 33,198,206 597,078,417 242,664,185 91,350,252 132,561,097 214,259,497 35,973,240,205 23,626,414
Accumulated impairment loss - - (9,725,736) - - - - - - (9,725,736) -
Net book value 887,973,249 2,138,424,629 18,449,583,756 11,142,000 376,700,772 118,894,284 42,526,770 79,949,904 119,752,474 22,224,947,838 7,819,748

Additions 12,536,484 1,386,824,832 8,059,340,603 - 43,933,009 16,913,161 23,537,322 16,543,613 59,719,147 9,619,348,171 25,562,390
Disposals:
Cost - (8,000,000) (1,163,587,000) - - (270,000) (6,000) (2,258,104) (25,122,774) (1,199,243,878) -
Accumulated impairment loss - - 9,725,736 - - - - - - 9,725,736 -
Accumulated depreciation - 1,000,000 941,581,877 - - 47,098 2,448 570,721 16,966,154 960,168,298 -
- (7,000,000) (212,279,387) - - (222,902) (3,552) (1,687,383) (8,156,620) (229,349,844) -
Depreciation / amortization charge - (117,494,087) (1,810,833,983) (1,187,780) (39,959,801) (12,838,738) (5,932,339) (19,572,598) (35,619,813) (2,043,439,139) (9,910,957)
At 30 June 2017
Cost 900,509,733 4,644,759,818 37,403,973,919 33,198,206 641,011,426 259,307,346 114,881,574 146,846,606 248,855,870 44,393,344,498 49,188,804
Net book value 900,509,733 3,400,755,374 24,485,810,989 9,954,220 380,673,980 122,745,805 60,128,201 75,233,536 135,695,188 29,571,507,026 23,471,181

4 - 10 and number
Annual rate of depreciation / amortization (%) 4 - 10 of hours used 10 10 10 10 10 - 33 20 0 - 30
115
2017
116
13.1.1 Detail of operating fixed assets, exceeding the book value of Rupees 50,000, disposed of during the year is as follows:
Nishat
Accumulated Accumulated
Description Qty Cost Net book value Sale proceeds Gain / (loss) Mode of disposal Particulars of purchasers
depreciation impairment loss
- - - - - - - - - - - - - - - - - - - - - - - - - Rupees - - - - - - - - - - - - - - - - - - - - - - - - -
Nishat (Chunian)
Building
(Chunian) Limited
Building on 31-C Gulberg II, Lahore 1 8,000,000 (1,000,000) - 7,000,000 1,350,000 (5,650,000) Negotiation Mr. Sahib Zada Khan, Lahore
Plant and machinery

Rice Husk Boiler 1 82,278,117 (35,048,325) - 47,229,792 39,000,000 (8,229,792) Insurance Claim Adamjee Insurance Company Limited - associated company
Auto Cone Machine 2 4,706,597 (910,940) - 3,795,657 800,000 (2,995,657) Negotiation Sarhad Textile Mills Limited, Peshawar
Carding Machine 10 8,882,650 (1,572,451) 7,310,199 1,111,110 (6,199,089) Negotiation Fanz Spinning Mills (Private) Limited, Lahore

Ring Frame 12 9,952,877 (2,173,636) - 7,779,241 820,689 (6,958,552) Negotiation Ishaq Textile Mills Limited, Faisalabad
Carding Machine 13 11,547,444 (2,044,186) - 9,503,258 363,640 (9,139,618) Negotiation Mehtabi Spinning Mills, Shiekhupura
Picanol Air Jet 280 cm 7 25,270,013 (17,372,960) - 7,897,053 5,075,000 (2,822,053) Negotiation Yousaf Weaving Mills Limited, Lahore
Toyota Jat-710 280 cm 1 3,226,800 (2,455,732) 771,068 315,000 (456,068) Negotiation Decent Embroidery, Karachi
Auto Cone Machine 1 2,353,299 (455,471) - 1,897,828 475,000 (1,422,828) Negotiation Service Industries Limited, Lahore
Toyota Jat-710 280 cm 6 19,360,800 (14,734,392) - 4,626,408 1,890,000 (2,736,408) Negotiation Mr. Gulnar Hanif, Karachi
Ring Frame 10 8,294,064 (1,811,364) - 6,482,700 621,734 (5,860,966) Negotiation Yasin Cone Dying, Faisalabad
Auto Cone Machine 1 2,353,299 (455,470) - 1,897,829 200,000 (1,697,829) Negotiation Chenab Limited, Faisalabad
Auto Cone Machine 3 7,059,896 (1,366,410) - 5,693,486 1,200,000 (4,493,486) Negotiation Yasin Cone Dying, Faisalabad
Toyota Jat-710 340 cm 2 6,453,600 (4,674,978) - 1,778,622 630,000 (1,148,622) Negotiation Mr. Gulnar Hanif, Karachi
Toyota Jat-710 340 cm 12 38,721,600 (28,049,871) 10,671,729 3,780,000 (6,891,729) Negotiation Decent Embroidery, Karachi
Carding Machine 19 14,407,523 (2,437,816) (9,725,736) 2,243,971 2,272,750 28,779 Negotiation Waqas Rafique International, Kasur
Toyota Jat-710 280 cm 9 29,041,200 (21,817,171) - 7,224,029 2,835,000 (4,389,029) Negotiation Valitex (Private) Limited, Karachi
Toyota Jat-710 280 cm 3 9,680,400 (7,272,391) - 2,408,009 945,000 (1,463,009) Negotiation Decent Embroidery, Karachi
Picanol Air Jet 380 cm 12 44,780,296 (32,340,541) - 12,439,755 3,780,000 (8,659,755) Negotiation Valitex (Private) Limited, Karachi
Ring Frame 1 829,406 (181,136) - 648,270 68,393 (579,877) Negotiation Dynamic Spinning Mills (Private) Limited, Lahore
Picanol Air Jet 340 cm 3 10,841,537 (7,898,947) - 2,942,590 945,000 (1,997,590) Negotiation Yousaf Weaving Mills Limited, Lahore
Auto Cone Machine 1 2,353,299 (455,470) - 1,897,829 485,000 (1,412,829) Negotiation Dawood Spinning Mills (Private) Limited, Lahore
Picanol Air Jet 340 cm 16 58,844,656 (42,626,984) - 16,217,672 5,040,000 (11,177,672) Negotiation Panama International, Karachi
Picanol Air Jet 340 cm 2 7,355,582 (5,328,373) - 2,027,209 630,000 (1,397,209) Negotiation Jamal Fabrics (Private) Limited, Karachi
Ring Frame 10 8,294,064 (1,811,364) - 6,482,700 652,822 (5,829,878) Negotiation Waqas Rafique International, Kasur
Toyota Jat-710 340 cm 8 25,814,400 (18,699,814) 7,114,586 2,520,000 (4,594,586) Negotiation Mr. Gulnar Hanif, Karachi
Picanol Air Jet 340 cm 2 7,355,582 (5,328,373) - 2,027,209 630,000 (1,397,209) Negotiation Panama International, Karachi
Picanol Air Jet 340 cm 13 46,475,283 (33,676,693) - 12,798,590 4,095,000 (8,703,590) Negotiation Jamal Fabrics (Private) Limited, Karachi
Drawing Machine 3 2,739,880 (530,911) - 2,208,969 204,546 (2,004,423) Negotiation Ghulam Rasool Textile Mills, Faisalabad
Ring Frame 42 46,790,888 (42,034,743) - 4,756,145 3,589,745 (1,166,400) Negotiation Mr. Imran Munawar, Lahore
Wraping Machine 1 13,005,541 (11,137,530) - 1,868,011 1,350,000 (518,011) Negotiation Valitex (Private) Limited, Karachi
Sliver Can 120 1,290,037 (72,473) - 1,217,564 163,620 (1,053,944) Negotiation Waqas Rafique International, Kasur
Drawing Machine 6 2,920,229 (644,996) - 2,275,233 102,564 (2,172,669) Negotiation Tuseef Brothers, Faisalabad
Automatic Bale Plucker 1 1,200,000 (212,430) - 987,570 551,765 (435,805) Negotiation Fanz Spinning Mills (Private) Limited, Lahore
Ring Frame 7 23,321,392 (19,651,170) - 3,670,222 1,330,000 (2,340,222) Negotiation Ishaq Textile Mills Limited, Faisalabad
Drawing Frame 1 656,500 (67,344) - 589,156 72,727 (516,429) Negotiation Sarhad Textile Mills Limited, Peshawar
Blow Room Line 2 600,000 (97,485) - 502,515 1,522,728 1,020,213 Negotiation Ali Nawaz Textile (Private) Limited, Lahore
Drawing Frame 1 371,250 (75,309) - 295,941 371,250 75,309 Negotiation Mr. Liaqat Ali, Faisalabad
Lifter 1 750,000 (649,129) - 100,871 650,000 549,129 Negotiation Mr. Muhammad Akhlaq, Lahore
Assets written off 573,407,000 (573,407,000) - - - - Life completed
and scrapped
Office equipment
IPhone 6s 1 113,400 (13,750) - 99,650 33,500 (66,150) Group's policy Mr. Muhammad Asim (Ex-employee), Lahore
HP Probook Laptop 1 75,000 (2,500) - 72,500 52,500 (20,000) Insurance claim Adamjee Insurance Company Limited - associated company
HP Laptop 1 86,729 (20,544) - 66,185 27,000 (39,185) Group's policy Mr. Waseem Jamal (Ex-employee), Lahore
Apple Iphone 1 85,000 (23,948) - 61,052 20,000 (41,052) Group's policy Ms. Nadia Bilal (employee), Lahore
HP Laptop 1 77,000 (21,231) - 55,769 18,500 (37,269) Group's policy Mr. Ali Iftikhar (employee), Lahore
HP Pavilion Laptop 1 67,369 (14,131) - 53,238 17,000 (36,238) Group's policy Mr. Zeeshan Akram (Ex-employee), Lahore
Apple Ipad 1 78,226 (56,714) - 21,512 23,000 1,488 Group's policy Mr. Babar Ali Khan (employee), Lahore
Apple Iphone 1 71,585 (50,110) - 21,475 17,000 (4,475) Group's policy Mr. Khurram Ali (employee), Lahore
Samsung S7 1 66,900 (10,035) - 56,865 39,573 (17,292) Negotiation Axiom, UAE
Factory equipment
Sliver Can 50 270,000 (47,098) - 222,902 68,175 (154,727) Negotiation J.A.Textile Mills Limited, Faisalabad
Motor vehicles
Honda City LEF-15-8501 1 1,715,685 (520,663) - 1,195,022 1,715,685 520,663 Group's policy Mr. Mir Asim (Ex-employee), Lahore
Toyata Corolla LED-11-9874 1 1,927,980 (1,268,086) - 659,894 660,000 106 Group's policy Ms. Nadia Bilal (employee), Lahore
Honda Civic LED-11-9827 1 1,912,995 (1,300,618) - 612,377 1,300,000 687,623 Negotiation Mr. Hafiz Aasim Hassan, Lahore
Honda Civic LEC-11-9972 1 1,859,685 (1,252,884) - 606,801 606,802 1 Group's policy Ms. Faiza Jabeen (employee), Lahore
Suzuki APV LED-10-3528 1 1,859,695 (1,323,518) - 536,177 1,302,000 765,823 Negotiation Mr. Ghulam Mustafa, Lahore
Toyota Hilux LES-11-8232 1 1,606,074 (1,092,468) - 513,606 1,365,000 851,394 Negotiation Mr. Zeshan Pasha Khan, Rawalpindi
Toyota Corolla LEC-10-2566 1 1,839,002 (1,379,269) - 459,733 1,200,000 740,267 Negotiation Mr. Jawaid Haider, Lahore
Suzuki Cultus LEC-12-2571 1 968,000 (592,422) - 375,578 665,000 289,422 Negotiation Mr. Arshad Farooq, Bahawalnagar
Suzuki Cultus LEA-11-9892 1 934,135 (615,780) - 318,355 680,000 361,645 Negotiation Mr. Umar Farooq, Lahore
Suzuki Cultus LED-10-7429 1 911,560 (615,323) - 296,237 636,600 340,363 Negotiation Mr. Muhammad Shahbaz, Lahore
Suzuki Cultus LED-10-2433 1 906,226 (629,119) - 277,107 610,000 332,893 Negotiation Mr. Jawaid Haider, Lahore
Suzukin Mehran LEC-12-7628 1 637,320 (368,310) - 269,010 285,931 16,921 Group's policy Mr. Nadeem Khan (employee), Lahore
Suzuki Cultus LEC-10-7433 1 880,314 (635,093) - 245,221 530,000 284,779 Negotiation Mr. Jawaid Haider, Lahore
Suzuki Mehran LEC-10-7616 1 544,330 (401,889) - 142,441 231,264 88,823 Group's policy Mr. Zahid Maqsood (employee), Lahore
Hyundai Shezore LZR 8925 1 667,773 (584,243) - 83,530 960,000 876,470 Negotiation Mr. Hafeez-Ullah, Sargodha
Suzuki Cultus LEA-13-3779 1 1,038,415 (675,246) - 363,169 1,038,488 675,319 Group's policy Mr. Saqib Riaz (Ex-employee), Lahore
Suzuki Liana LED-07-586 1 725,000 (422,917) - 302,083 725,000 422,917 Group's policy Mr. Babar Ali (employee), Lahore
Honda Civic LED-11-9647 1 1,973,610 (1,973,610) - - 606,293 606,293 Group's policy Mr. Farrukh Ifzal (employee), Lahore
Honda Civic LEB-09-736 1 1,430,000 (572,000) - 858,000 1,430,000 572,000 Negotiation Mr.Umair Ayub, Lahore
Suzuki Bolan LE-12-9570 687,368 (687,368) - - 540,000 540,000 Insurance claim Adamjee Insurance Company Limited - associated company

Aggregate of other items of operating fixed
assets with individual book values not
exceeding Rupees 50,000 1,640,501 (415,632) - 1,224,869 380,418 (844,451)
Nishat (Chunian)
1,199,243,878 (960,168,298) (9,725,736) 229,349,844 110,224,812 (119,125,032)
117
2017 Limited
2017 2016
Rupees Rupees
13.1.2 The depreciation charge for the year has been allocated as follows:
Cost of sales (Note 24) 2,016,336,322 1,942,680,167

Administrative expenses (Note 26) 26,343,828 22,148,013
Capital work-in-progress 758,989 687,014
2,043,439,139 1,965,515,194
13.1.3 Amortization on intangible asset amounting to Rupees 3.011 million (2016: Rupees Nil) and Rupees 6.900 million
(2016: Rupees 4.402 million) has been allocated to cost of sales and administrative expenses, respectively.
13.2 Capital work-in-progress
Civil works on freehold land 75,186,573 1,290,418,511

Plant and machinery - 3,235,571,638
Mobilization advance 987,035 12,287,452
Stores held for capital expenditure - 18,805,216
Advances for capital expenditure 148,874,325 55,436,292
Unallocated expenditures - 347,523,274
255,117,935 5,029,074,918
13.3 NC Electric Company Limited - Subsidiary Company has capitalized borrowings cost amounting to Rupees
237.927 million (2016: Rupees 180.193 million) using the capitalization rate ranging from 4.00% to 7.31% (2016:
4.00% to 8.99%) per annum during the year.
14. LONG TERM LOANS TO EMPLOYEES 2017 2016

Rupees Rupees
Considered good:
Executives (Notes 14.1 and 14.2) 24,577,161 26,866,623

Other employees (Note 14.2) - 317,768
24,577,161 27,184,391
Less: Current portion shown under current assets (Note 18)
Executives 3,729,347 2,653,621
Other employees - 317,768
3,729,347 2,971,389
20,847,814 24,213,002
14.1 Reconciliation of carrying amount of loans to executives:

Add: Disbursements 5,698,420 14,112,047
Add: Markup for the year 299,000 -
Less: Repayments 8,286,882 5,758,527
14.1.1 Maximum aggregate balance due from executives at the end of any month during the year was Rupees 28.876
million (2016: Rupees 27.914 million).
2017 118 Nishat

Nishat (Chunian)
(Chunian) Limited
14.2 These represent motor vehicle loans and house building loans to executives and employees, payable in 36 to
48, 96 monthly instalments respectively. Interest on long term loans ranged from 3.1% to 10.66% (2016: 3.3% to
10.66%) per annum while some loans are interest free. Motor vehicle loans are secured against registration of
motor vehicles in the name of the respective Group Company, whereas house building loans are secured against
balance standing to the credit of employee in the provident fund trust account.
14.3 The fair value adjustment in accordance with the requirements of IAS 39 'Financial Instruments: Recognition and
Measurement' arising in respect of staff loans is not considered material and hence not recognized.
2017 2016
Rupees Rupees
15. STORES, SPARE PARTS AND LOOSE TOOLS
Stores (Note 15.1) 968,581,730 1,121,589,591
Spare parts 211,203,117 295,566,465
Loose tools 43,042,259 52,951,507
1,222,827,106 1,470,107,563
15.1 Most of the items of stores and spares of Nishat Chunian Power Limited - Subsidiary Company and NC Electric
Company Limited - Subsidiary Company are of interchangeable nature and can be used as machine spares or
consumed as stores. Accordingly, it is not practicable to distinguish stores from spares until their actual usage.
Moreover, stores and spares include items which may result in fixed capital expenditure but are not
distinguishable.
16. STOCK-IN-TRADE
Raw materials 7,762,092,957 6,091,610,990
Work-in-process 681,950,465 664,745,190
Finished goods 1,560,861,043 1,200,198,744
Waste 78,504,641 45,165,814
10,083,409,106 8,001,720,738
16.1 Stock-in-trade of Rupees 161.563 million (2016: Rupees 95.321 million) is being carried at net realizable value.
16.2 The aggregate amount of write-down of inventories to net realizable value recognized as an expense during the
year was Rupees 6.501 million (2016: Rupees Nil)
16.3 This includes stock of Rupees 28.426 million (2016: Rupees 7.135 million) sent to outside parties for processing.
2017 2016
Rupees Rupees
17. TRADE DEBTS
Considered good:
Secured (Notes 17.3)
- Others 13,425,906,239 10,968,252,404
Unsecured
- Nishat Mills Limited - related party 69,615,588 55,834,953
- Others 421,239,103 197,082,756
490,854,691 252,917,709
13,916,760,930 11,221,170,113
Nishat (Chunian)
17.1 As at 30 June 2017, trade debts of Rupees 5,011.893 million (2016: Rupees 3,054.336 million) were past due but
not impaired. These relate to a number of independent customers from whom there is no recent history of default.
The age analysis of these trade debts is as follows:
2017 2016
Rupees Rupees
Upto 1 month 1,866,778,236 626,609,493
1 to 6 months 1,646,720,668 874,226,136
More than 6 months 1,498,393,926 1,553,500,052
5,011,892,830 3,054,335,681
17.2 As at 30 June 2016, trade debts due from related party amounting to Rupees 37.425 million (2016: Rupees 32.726
million) were past due but not impaired. The age analysis of these trade debts is as follows:
Upto 1 month 37,425,050 32,666,239
1 to 6 months - 3,348
More than 6 months - 56,544
37,425,050 32,726,131
17.3 Included in trade debts is an amount of Rupees 966 million relating to capacity purchase price not acknowledged
by NTDC during 2012 as the plant of Nishat Chunian Power Limited - Subsidiary Company was not fully available
for power generation. However, the sole reason of this under-utilization of plant capacity was non-availability of
fuel owing to non-payment by NTDC.
Since management considers that the primary reason for claiming these payments is that plant was available,
however, could not generate electricity due to non-payment by NTDC, therefore, management believes Nishat
Chunian Power Limited - Subsidiary Company cannot be penalized in the form of payment deductions due to
NTDC’s default of making timely payments under the PPA. Hence, Nishat Chunian Power Limited - Subsidiary
Company had taken up this issue at appropriate forums. On 28 June 2013, Nishat Chunian Power Limited -
Subsidiary Company entered into a Memorandum of Understanding ('MoU') for cooperation on extension of credit
terms with NTDC whereby it was agreed that the constitutional petition filed by Nishat Chunian Power Limited -
Subsidiary Company before the Supreme Court of Pakistan on the above mentioned issue would be withdrawn
unconditionally and it would be resolved through the dispute resolution mechanism under the PPA. Accordingly,
as per terms of the MoU, Nishat Chunian Power Limited - Subsidiary Company applied for withdrawal of the
aforesaid petition which is pending adjudication before Supreme Court of Pakistan. During the financial year 2014,
Nishat Chunian Power Limited - Subsidiary Company in consultation with NTDC, appointed an Expert for dispute
resolution under the PPA.
In the financial year 2016, the Expert had given his determination whereby the aforesaid amount was determined
to be payable to Nishat Chunian Power Limited - Subsidiary Company by NTDC. Pursuant to the Expert’s
determination, Nishat Chunian Power Limited - Subsidiary Company demanded the payment of the aforesaid
amount of Rupees 966 million from NTDC that has not yet been paid by NTDC. Under the terms of PPA, Nishat
Chunian Power Limited - Subsidiary Company had filed petition for arbitration in The London Court of International
Arbitration ('LCIA'), during the pendency of the Expert's determination whereby an Arbitrator was appointed and
the proceedings are ongoing. In October 2015, the Government of Pakistan ('GOP') through Private Power &
Infrastructure Board ('PPIB') had filed a suit for declaration and permanent injunction along with an application for
interim relief in the court of Senior Civil Judge, Lahore seeking suspension of the aforementioned decision of the
Expert, praying it to be illegal (herein after referred to as “civil suit 2015”) and obtained an interim order
suspending the Expert's determination. Furthermore, NTDC filed an application for clarification of the
aforementioned interim order and a stay application in the LCIA before the Arbitrator to stay the arbitration
proceedings on the basis of the aforementioned interim order. During the year, in response to NTDC's stay
application, the Arbitrator through his ruling dated 08 July 2016 declared that the arbitration shall proceed and has
denied NTDC's request for a stay. Also, the Arbitrator ordered NTDC to withdraw the abovementioned application
filed in the court of Senior Civil Judge, Lahore and has refrained it from taking any further steps therein to disrupt
the arbitration proceedings.
2017 120 Nishat

Nishat (Chunian)
(Chunian) Limited
Consequently, notices of arbitration were issued to the relevant parties including PPIB. In response to the
aforementioned Arbitrator's order dated 08 July 2016, Nishat Chunian Power Limited - Subsidiary Company and
PPIB filed separate applications before the Civil Judge, Lahore. In its application, Nishat Chunian Power Limited -
Subsidiary Company prayed that the Civil Court, Lahore lacks the jurisdiction in respect of the case against the
Expert's determination. Meanwhile, GOP through PPIB filed a suit in Civil Court, Lahore (herein after referred to as
“civil suit 2016”) praying it to restrain the participation in arbitration proceedings, Expert’s determination and interim
order of the Arbitrator. On April 18, 2017, the Civil Court, Lahore, through an interim order granted the plea of
PPIB, whereby the court suspended the arbitration proceedings and restrained participating in the arbitration
proceedings. Being aggrieved, Nishat Chunian Power Limited - Subsidiary Company filed appeal before the
Additional District Judge, Lahore against the aforementioned orders of the Civil Court and filed revision petition for
lack of jurisdiction by Civil Court in respect of civil suit 2015 and civil suit 2016 and continued to take part in the
arbitration proceedings, while NTDC and PPIB did not participate in any subsequent arbitration proceedings
pursuant to the decisions of the Civil Court, Lahore dated 18 April 2017. Furthermore, in response to Nishat
Chunian Power Limited - Subsidiary Company's continued participation in the arbitration proceedings, PPIB filed a
contempt petition before Lahore High Court ('LHC') in respect of the decision of the Civil Court, Lahore, against
which Nishat Chunian Power Limited - Subsidiary Company filed an intra court appeal in LHC. On 31 May 2017,
LHC has suspended the contempt of court orders.
On 08 June 2017, the Arbitrator declared his Partial Final Award wherein he decided the matter principally in the
Nishat Chunian Power Limited - Subsidiary Company's favor and declared that the above mentioned Expert's
determination is final and binding on all parties while deferring the quantum and security form of Nishat Chunian
Power Limited - Subsidiary Company's claim to 01 October 2017. Later, on 19 July 2017, in order for interim
measures, Arbitrator ordered the NTDC to provide security of claim paying Rupees 966 million in LCIA's account
by 04 August 2017, which was extended to 21 August 2017 that has not yet been paid by NTDC. Subsequent to
year end, on 08 July 2017, the Additional District Judge in his order accepted Nishat Chunian Power Limited -
Subsidiary Company’s prayer for vacating the orders of the Civil Court, Lahore for the civil suit 2015 and civil suit
2016, however, dismissed Nishat Chunian Power Limited - Subsidiary Company’s revision regarding lack of
jurisdiction by Civil Court. Nishat Chunian Power Limited - Subsidiary Company filed a writ petition in Lahore High
Court (‘LHC’) regarding the lack of jurisdiction by Civil and District courts (herein after referred to as “trial courts”).
On the other hand, GOP through PPIB filed revision petitions in LHC challenging the above mentioned orders of
Additional District Judge for the civil suit 2015 and civil suit 2016. NTDC also challenged the Partial Final Award in
Lahore Civil Court, and the same was suspended by the Civil Court on 10 July 2017. The Civil Court’s order was
challenged by Nishat Chunian Power Limited - Subsidiary Company in the District Court by filing a revision
petition. The District Court, on 12 August 2017, ordered for the suspension of the Civil Court’s order of 10 July
2017 and proceedings are still ongoing.
In response to the revision petition filed by PPIB before LHC against the abovementioned orders of the trial
courts with respect to civil suit 2015 and civil suit 2016, LHC on 04 August 2017, suspended the Expert’s
determination till the next hearing of the case on 05 October 2017 while the case is pending adjudication.
Furthermore, in response to Nishat Chunian Power Limited - Subsidiary Company’s writ petition, LHC on 07
September 2017, suspended impugned orders and proceedings of trial courts for the time being while the case
is pending adjudication.
On 06 July 2017, NTDC also initiated proceedings challenging the Partial Final Award in London which are
pending before the Commercial Court in London. Meanwhile, the Company has filed for an anti suit injunction
against NTDC in the Commercial Court in London where on 14 August 2017, an order was issued to NTDC
restraining it from pursuing the proceedings initiated in the Civil Court challenging the Partial Final Award and
taking any steps or participating in any court outside England which seeks to set aside the Partial Final Award of
the Arbitrator.
Based on the advice of the Nishat Chunian Power Limited - Subsidiary Company's legal counsel, Expert's
determination and Arbitration Award, management strongly feels that under the terms of the PPA and the
Implementation Agreement, there are meritorious grounds to support Nishat Chunian Power Limited - Subsidiary
Company’s stance the amount is likely to be recovered. Consequently, no provision for the above mentioned
Nishat (Chunian) Limited Limited 121
Nishat (Chunian) 2017
amount has been made in these consolidated financial statements.
2017 2016
Rupees Rupees
18. LOANS AND ADVANCES
Considered good:
Employees - interest free:

- Executives 14,445,336 8,991,204
- Other employees 9,324,734 5,206,339
23,770,070 14,197,543
Current portion of long term loans to employees (Note 14) 3,729,347 2,971,389
Advances to suppliers (Note 18.1) 741,499,739 708,130,384
Advances to contractors 972,313 7,799,520
1,320,638,807 1,300,670,193
18.1 It includes advances amounting to Rupees 0.486 million (2016: Rupees 1.140 million) to D.G. Khan Cement
Company Limited - related party and Rupees 0.743 million (2016: Rupees Nil) to Adamjee Insurance Company
2017 2016
Rupees Rupees
19. SHORT TERM DEPOSITS AND PREPAYMENTS
Deposits 9,566,438 9,031,988

Prepayments 22,533,136 8,028,044
32,099,574 17,060,032
20. OTHER RECEIVABLES
Considered good:
Sales tax recoverable 1,758,339,536 1,525,068,674

Advance income tax - net 1,137,351,633 864,312,084
Export rebate and claims 77,572,321 110,106,713
Duty drawback receivable 341,479,236 -
Receivable from employees' provident fund trust 23,668,868 14,370,841
Claim recoverable from NTDCL for pass through item -
Liquidity damages recoverable 538,316,800 -
Fair value of forward exchange contracts - 45,758,252
Miscellaneous (Note 20.2) 33,156,937 66,840,753
4,580,174,905 3,301,274,890

Add: Provision for the year 149,988,000 137,812,113
Less: Amount received during the year 154,516,000 -
2017 122 Nishat

Nishat (Chunian)
(Chunian) Limited
20.1.1 Under section 9.3(a) of the Power Purchase Agreement (PPA) with NTDCL, payments to Workers' Profit
Participation Fund by Nishat Chunian Power Limited - Subsidiary Company are recoverable from NTDCL as pass
through item.
20.2 It includes Rupees 0.699 million (2016: Rupees 3.752 million) receivable from Adamjee Insurance Company
2017 2016
Rupees Rupees
21. SHORT TERM INVESTMENTS
Held-to-maturity
Term deposit receipts (Note 21.1) 31,160,226 10,500,000

Add: Accrued interest 1,133,934 20,822
32,294,160 10,520,822
21.1 These represent deposits under lien with the bank of the Company against bank guarantees of the same amount
issued by the bank to Sui Northern Gas Pipelines Limited against gas connections and Director, Excise and
Taxation, Karachi against disputed amount of infrastructure cess. Interest on term deposit receipts ranges from
3.11% to 5.94% (2016: 3.19% to 4.23%) per annum. The maturity period of these term deposit receipts is one
year.
2017 2016
Rupees Rupees
22. CASH AND BANK BALANCES
Cash with banks:
On saving accounts (Note 22.1)

Including US$ 14,444 (2016: US$ 14,424) 177,063,168 19,746,546
On current accounts (Note 22.2)
Including US$ 44,338 (2016: US$ 22,240) 66,991,984 50,372,487
244,055,152 70,119,033
Cash in hand 2,999,282 5,994,961
247,054,434 76,113,994
22.1 Rate of profit on saving accounts ranges from 1.95% to 8.50% (2016: 3.75% to 6.88%) per annum.
22.2 Included in cash with banks on current accounts are Rupees 31.379 million (2016: Rupees 9.996 million) with MCB
Bank Limited - associated company.
23. REVENUE
Export sales 16,149,103,897 15,697,232,139

Local sales (Note 23.1 Note 23.2) 29,709,347,270 23,602,559,052
Processing income 240,842,283 395,235,594
Export rebate 39,529,905 49,423,298
Duty drawback 352,253,015 -
46,491,076,370 39,744,450,083
2017 2016
Rupees Rupees
23.1 Local sales
Sales 32,038,692,484 25,831,702,295
Less: Sales tax 2,036,613,900 1,812,952,554
Less: Discount 292,731,314 416,190,689
29,709,347,270 23,602,559,052
23.2 Local sales includes waste sales of Rupees 726.961 million (2016: Rupees 510.209 million).
2017 2016
Rupees Rupees
24. COST OF SALES
Raw materials consumed 29,980,188,207 24,142,046,218
Packing materials consumed 845,732,666 803,855,260
Operations and maintenance (Note 24.2) - (151,034,479)
Stores, spare parts and loose tools consumed 1,065,698,196 1,109,319,240
Processing charges 103,057,986 125,739,895
Salaries, wages and other benefits (Note 24.1) 2,378,831,512 2,153,828,601
Fuel and power 1,860,285,044 2,176,961,208
Insurance 213,888,377 207,674,812
Postage and telephone 14,620,160 5,298,055
Lease rentals 97,305,693 1,240,513
Entertainment 7,440,903 8,121,057
Electricity consumed in-house 6,784,540 -
Amortization on intangible asset (Note 13.1.3) 3,011,000 -
Depreciation on operating fixed assets (Note 13.1.2) 2,016,336,322 1,942,680,167
Other factory overheads 98,975,867 88,593,016
39,177,047,958 33,015,214,028
Work-in-process
Opening stock 664,745,190 440,237,780
Closing stock (681,950,465) (664,745,190)
(17,205,275) (224,507,410)
Cost of goods manufactured 39,159,842,683 32,790,706,618
Finished goods and waste - opening stocks
Finished goods 1,200,198,744 1,287,068,930
Waste 45,165,814 33,960,725
1,245,364,558 1,321,029,655
40,405,207,241 34,111,736,273
Finished goods and waste - closing stocks
Finished goods (1,560,861,043) (1,200,198,744)
Waste (78,504,641) (45,165,814)
(1,639,365,684) (1,245,364,558)
38,765,841,557 32,866,371,715
2017 124 Nishat

Nishat (Chunian)
(Chunian) Limited
24.1 Salaries, wages and other benefits include Rupees 16.952 million (2016: Rupees 14.311 million) and Rupees
46.324 million (2016: Rupees 41.451 million) in respect of accumulating compensated absences and provident
funds contribution by the Group respectively.
24.2 The figure for 2016 primarily includes a credit aggregating to Rupees 161.813 million due to reversal of excess
provision of Rupees 141.067 million booked in the previous years in respect of indexation adjustment relating to
Operations and Maintenance Agreement and Rupees 20.746 million in respect of other miscellaneous items, both
as a result of a settlement agreement with Wartsila Pakistan (Private) Limited during the previous year.
2017 2016
Rupees Rupees
25. DISTRIBUTION COST

Ocean freight 96,664,451 105,133,614
Freight and octroi 272,242,605 96,447,113
Forwarding and other expenses 160,347,738 365,645,184
Export marketing expenses 149,997,190 137,381,675
Commission to selling agents 133,361,407 134,658,978
895,297,451 925,584,306
25.1 Salaries and other benefits include Rupees 3.882 million (2016: Rupees 3.374 million) and Rupees 3.854 million
(2016: Rupees 3.390 million) in respect of accumulating compensated absences and provident fund contribution
by the Group respectively.
2017 2016
Rupees Rupees
26. ADMINISTRATIVE EXPENSES

Printing and stationery 4,795,117 3,416,198
Postage and telephone 6,050,508 8,703,516
Legal and professional (Note 26.2) 57,991,771 33,707,941
Electricity and sui gas 1,581,927 8,174,710
Insurance 8,274,576 4,742,146
Entertainment 8,200,304 8,068,443
Amortization on intangible assets (Note 13.1.3) 6,899,956 4,402,497
Miscellaneous 73,996,238 9,873,823
447,957,227 332,581,672
26.1 Salaries and other benefits include Rupees 3.002 million (2016: Rupees 2.666 million) and Rupees 5.774 million
(2016: Rupees 4.716 million) in respect of accumulating compensated absences and provident fund contribution
by the Group respectively.
26.2 Legal and professional charges include the following in respect of auditors' remuneration for:
2017 2016
Rupees Rupees
Riaz Ahmad & Company
Audit fee 1,983,650 1,646,500

Certification fees 125,000 100,000
2,743,150 2,285,200
A. F. Ferguson & Co.
Audit fee 1,500,000 1,400,000
Tax services 230,000 301,200
Other assurance services 463,000 125,000
3,263,000 2,806,336
Riaz Ahmad, Saqib, Gohar & Company
Audit fee 100,000 75,000
Tax advisory services 35,000 -
135,000 75,000
6,141,150 5,166,536
27. OTHER EXPENSES
Workers' profit participation fund 72,494,888 85,243,208

Donations (Note 27.1) 85,183,227 86,195,577
Loss on derivative financial instruments 900,000 5,110,987
Exchange loss 6,968,000 2,495,795
Loss on disposal of operating fixed assets (Note13.1.1) 119,125,032
Impairment loss (Note 13.1) - 9,725,736
284,671,147 188,771,303
27.1 Donations
Following is the interest of the directors of the Group in the donees:
Directors of the Group Interest in

Donee
Companies donee
Mian Muhammad Yahya Trust Mr. Shahzad Saleem Trustee

31-Q, Gulberg II, Lahore Mrs. Farhat Saleem Trustee 4,376,000 1,992,457
Mr. Aftab Ahmad Khan Director
Saleem Memorial Trust Hospital Mr. Shahzad Saleem Director

31-Q, Gulberg II, Lahore Mrs. Farhat Saleem Director
Mr. Yahya Saleem Director 80,023,000 81,143,120
Lahore University of Mr. Shahzad Saleem Trustee - 250,000

Management
Sciences,Opposite Sector U,
Phase - V, D.H.A, Lahore
2017 126 Nishat
Nishat (Chunian)
(Chunian) Limited
84,399,000 83,385,577
2017 2016
Rupees Rupees
28. OTHER INCOME
Income from financial assets
Return on bank deposits 4,060,839 3,017,789

Mark up on loans to executives 299,000 433,872
Income from non-financial assets
Gain on sale of operating fixed assets - 15,665,125

Sale of scrap 73,939,683 67,945,157
Reversal of provision for workers' welfare fund (Note 28.1) 21,681,803 -
Miscellaneous 1,572,262 8,906,117
255,442,049 95,968,060
28.1 Provisions for workers' welfare fund recognized in prior years have been reversed during the year in view of
judgement of Honourable Supreme Court of Pakistan announced on 10 November 2016 declaring amendments
made in Worker Welfare Ordinance, 1971 through Finance Acts 2006 and 2008 to be unlawful and ultra vires the
Constitution of the Islamic Republic of Pakistan, 1973.
2017 2016
Rupees Rupees
29. FINANCE COST
Mark-up on:
- long term loans 1,019,197,503 1,252,330,197

- long term musharaka 20,389,096 20,396,273
- redeemable capital - 921,458
- short term running finances 518,294,070 458,831,286
- export finances - Preshipment / SBP refinances 150,688,544 198,496,615
- short term finances 431,475,855 215,010,630
Interest on employees' provident fund 521,624 -
Interest on workers' profit participation fund (Note 8.2) 12,217,220 6,602,743
Bank charges and commission 92,837,760 108,945,288
2,245,621,672 2,261,534,490
30. TAXATION
Current (Note 30.1) 159,414,021 286,506,930

Prior year adjustment (550,210) -
Deferred 29,687,846 -
188,551,657 286,506,930

30.1 Provision for current taxation represents minimum tax on local sales except electricity sales, final tax on export
sales, super tax on the Holding Company and tax on income from other sources at applicable rates. Provision for
current taxation relating to Nishat Chunian USA Inc. is as per applicable laws of USA. Reconciliation of tax
expense and product of accounting profit multiplied by applicable tax rate has not been presented, being
impracticable.
2017 2016
31. EARNINGS PER SHARE - BASIC AND DILUTED
Profit after taxation attributable to shareholders of the

Holding Company (Rupees) 2,452,753,644 1,630,301,367
Weighted average number of ordinary shares outstanding

during the year (Number) 240,221,556 237,862,307
Basic earnings per share (Rupees) 10.21 6.85
31.1 There is no dilutive effect on basic earnings per share for the year ended 30 June 2017 and 30 June 2016 as no
potential ordinary shares were in issue as on 30 June 2017 and 30 June 2016.
2017 2016
Rupees Rupees
32. CASH GENERATED FROM OPERATIONS
Profit before taxation 4,107,129,365 3,265,574,657
Adjustments for non-cash charges and other items:
Depreciation on operating fixed assets 2,042,680,150 1,964,828,180

Amortization on intangible asset 9,910,956 4,402,497
(Loss) / gain on sale of property, plant and equipment 119,125,032 (15,665,125)
Finance cost 2,245,621,672 2,261,534,490
Return on bank deposits (4,060,839) (3,017,789)
Impairment loss on operating fixed assets - 9,725,736
Reversal of provision for workers' welfare fund (21,681,803) -
Loss on derivative financial instruments - 1,713,049
Credit balances written back (15,029) -
Working capital changes (Note 32.1) (5,642,519,023) 120,672,387
2,856,190,481 7,609,768,082
32.1 Working capital changes

(Increase) / decrease in current assets:
Stores, spare parts and loose tools 247,280,457 89,964,232
Stock-in-trade (2,081,688,368) (600,761,396)
Trade debts (2,695,590,817) 1,281,252,725
Loans and advances (19,210,656) (273,428,125)
Short term deposits and prepayments (15,039,542) 3,456,714
Other receivables (1,005,860,466) (778,911,898)
(5,570,109,392) (278,427,748)
(Decrease) / Increase in trade and other payables (72,409,631) 399,100,135
(5,642,519,023) 120,672,387
2017 128 Nishat

Nishat (Chunian)
(Chunian) Limited
33. REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES
Aggregate amount charged in these consolidated financial statements for the year for remuneration including
certain benefits to the chief executive, directors and executives of the Holding Company is as follows:
Chief Executive Directors Executives

2017 2016 2017 2016 2017 2016
--------------------------------------------- Rupees ------------------------------------------
Managerial remuneration 4,600,000 4,600,000 - - 99,433,677 75,443,416

Contribution to provident fund - - - - 8,282,825 6,277,773
House rent 1,840,000 1,840,000 - - 39,773,471 30,177,366
Utilities 460,000 460,000 - - 9,943,368 7,544,342
Others 1,183,430 1,992,864 - - 12,795,742 15,122,357
8,083,430 8,892,864 - - 170,229,083 134,565,254
Number of persons 1 1 - - 95 75
33.1 The Holding Company provides to chief executive, directors and certain executives with free use of Holding
Company maintained cars and residential telephones.
33.2 Aggregate amount charged in these consolidated financial statements for meeting fee to five (2016: seven)
directors of the Holding Company was Rupees 360,000 (2016: Rupees 320,000).
33.3 No remuneration was paid to non-executive directors of the Holding Company.
34. TRANSACTIONS WITH RELATED PARTIES
Related parties comprise of associated undertakings, other related companies, key management personnel
and post employment benefit plan. The Group in the normal course of business carried out transactions with
various related parties. Details of transactions with related parties, other than those which have been
specifically disclosed elsewhere in these consolidated financial statements are as follows:
2017 2016
Rupees Rupees
Associated undertakings
Insurance premium paid 78,161,911 77,786,126

Insurance claims received 15,435,865 22,405,636
Other related parties

Purchase of goods 62,256,073 35,762,623
Sales of goods 1,459,639,336 810,721,648
Dividend paid 99,909,850 59,945,910

35. PROVIDENT FUND RELATED DISCLOSURES
The following information is based on audited financial statements of the provident fund of the Holding
Company for the years ended 30 June 2017 and 30 June 2016 and un-audited financial statements of the
provident fund of Nishat Chunian Power Limited - Subsidiary Company for the year ended 30 June 2017 and
audited financial statements for the year ended 30 June 2016:
Nishat Chunian Power

Limited
2017 2016 2017 2016
Size of the fund - Total assets 430,885,554 362,073,888 50,990,000 40,443,192

Cost of investments 382,052,828 326,332,489 45,476,000 34,825,456
Fair value of investments 393,810,353 343,275,220 46,099,000 35,009,397
Percentage of investments made 91.40% 94.81% 90.41% 86.56%
35.1 The break-up of fair value of investments is as follows:
Deposits with banks 106,329 2,713,939 24,000 100,858

Treasury bills 305,758,380 307,050,071 46,075,000 34,908,539
Term deposit reciepts 19,147,968 - - -
Mutual funds - open end 61,183,701 25,829,302 - -
Listed securities 7,613,975 7,681,908 - -
393,810,353 343,275,220 46,099,000 35,009,397
Nishat Chunian Power

Limited
2017 2016 2017 2016
Deposits with banks 0.03% 0.79% 0.05% 0.29%

Treasury bills 77.64% 89.45% 99.95% 99.71%
Term deposit reciepts 4.86% 0.00% 0.00% 0.00%
Mutual funds - open end 15.54% 7.52% 0.00% 0.00%
Listed securities 1.93% 2.24% 0.00% 0.00%
100.00% 100.00% 100.00% 100.00%
35.2 As at the reporting date, the Nishat (Chunian) Limited - Employees Provident Fund is in the process of
regularizing its investment in accordance with section 218 of the Companies Act, 2017 and the rules
formulated for this purpose in terms of SRO 770(1)/2016 issued by Securities and Exchange Commission of
Pakistan on 17 August 2016 which allows transition period of two years for bringing the Employees Provident
Fund in conformity with the requirements of rules. Investments out of Provident Fund of Nishat Chunian
Power Limited - Subsidiary Company have been made in accordance with the provisions of section 218 of
the Companies Act, 2017 and the rules formulated for this purpose.
2017 2016
36. NUMBER OF EMPLOYEES
Number of employees as on 30 June 6,850 6,381
Average number of employees during the year 6,604 6,472
2017 130 Nishat

Nishat (Chunian)
(Chunian) Limited
37. SEGMENT INFORMATION
Spinning Weaving
Dyeing Home Tex�le Power Genera�on Entertainment Elimina�on of inter-segment transac�ons Total - Group
Zone-1 (1,5)* Zone-2 (4,7,8)* Zone-3 (2,3,6) Unit-1 (1,2) Unit-2 (3,4,5)
2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Rupe e s - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
4,122,159,478 4,482,963,571 840,484,056 889,785,934 2,289,060,971 2,621,554,114 - - 2,800,733,496 2,749,022,447 931,500,663 712,256,428 5,556,948,153 4,291,072,943 - - - - - - 16,540,886,817 15,746,655,437
824,099,784 929,380,726 3,613,752,624 1,940,224,952 4,113,418,009 3,149,777,827 2,720,959,176 1,421,607,098 141,022,252 192,160,475 326,820,734 470,926,758 1,846,740,064 2,024,383,677 16,214,515,449 13,853,806,315 148,861,461 15,526,820 - - 29,950,189,553 23,997,794,648
4,946,259,262 5,412,344,294 4,454,236,680 2,830,010,886 6,402,478,980 5,771,331,941 2,720,959,176 1,421,607,098 2,941,755,748 2,941,182,922 1,258,321,397 1,183,183,186 7,403,688,217 6,315,456,620 16,214,515,449 13,853,806,315 148,861,461 15,526,820 - - 46,491,076,370 39,744,450,085
137,229,367 117,805,574 381,345,923 306,977,564 1,545,953,978 1,581,188,387 2,539,828,235 2,967,905,319 - - 5,177,580,781 4,703,491,417 1,374,070,252 2,005,971,525 2,544,165,339 2,109,506,227 - - (13,700,173,875) (13,792,846,013) - -
5,083,488,629 5,530,149,868 4,835,582,603 3,136,988,450 7,948,432,958 7,352,520,328 5,260,787,411 4,389,512,417 2,941,755,748 2,941,182,922 6,435,902,178 5,886,674,603 8,777,758,469 8,321,428,145 18,758,680,788 15,963,312,542 148,861,461 15,526,820 (13,700,173,875) (13,792,846,013) 46,491,076,370 39,744,450,085
(4,677,230,413) (5,270,642,313) (4,449,136,344) (2,989,782,275) (7,313,216,391) (7,007,496,299) (4,923,791,721) (4,082,668,601) (2,753,312,663) (2,735,582,914) (6,147,266,940) (5,656,457,503) (7,901,959,225) (7,248,916,236) (14,476,543,745) (11,647,774,184) (177,980,715) (19,897,405) 14,054,596,599 13,792,846,013 (38,765,841,557) (32,866,371,717)
406,258,216 259,507,555 386,446,259 147,206,175 635,216,567 345,024,029 336,995,690 306,843,816 188,443,085 205,600,008 288,635,238 230,217,100 875,799,244 1,072,511,909 4,282,137,043 4,315,538,358 (29,119,254) (4,370,585) 354,422,724 - 7,725,234,813 6,878,078,368
(69,077,264) (100,563,549) (65,708,579) (57,044,872) (108,007,717) (133,702,622) (77,244,037) (66,231,124) (47,379,799) (46,912,237) (41,083,498) (36,708,524) (485,225,856) (487,572,661) (1,570,701) - - - - - (895,297,451) (928,735,589)
(19,922,038) (9,605,075) (18,950,502) (5,448,497) (31,149,668) (12,770,268) (27,824,819) (22,548,438) (17,067,135) (15,971,307) (32,987,114) (28,985,787) (106,520,806) (70,965,204) (177,396,177) (160,175,780) (16,138,968) (2,960,033) - - (447,957,227) (329,430,389)
(88,999,302) (110,168,624) (84,659,081) (62,493,369) (139,157,385) (146,472,891) (105,068,856) (88,779,562) (64,446,934) (62,883,544) (74,070,612) (65,694,311) (591,746,662) (558,537,865) (178,966,878) (160,175,780) (16,138,968) (2,960,033) - - (1,343,254,678) (1,258,165,978)
ted
317,258,915 149,338,931 301,787,178 84,712,806 496,059,182 198,551,138 231,926,834 218,064,254 123,996,151 142,716,464 214,564,626 164,522,789 284,052,582 513,974,044 4,103,170,165 4,155,362,578 (45,258,222) (7,330,618) 354,422,724 - 6,381,980,135 5,619,912,390
(284,671,147) (188,771,303)
255,442,049 95,968,060
(2,245,621,672) (2,261,534,490)
(188,551,657) (286,506,930)
3,918,577,708 2,979,067,727
* This relates to 2017 only.
37.1 Reconciliation of reportable segment assets and liabilities

Spinning Weaving Total - Group
Dyeing Home Textile Power Generation Entertainment
Zone - 1 Zone - 2 Zone - 3 Unit - 1 Unit - 2
2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Rupees - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Total assets for reportable segments 4,306,885,614 3,653,779,951 5,263,971,306 4,465,731,051 6,380,571, 280 5,413,007,334 2,125,864,648 1,640,560,744 1,188,752,569 1,099,254,036 3,440,839,578 2,949,613,339 2,979,569,457 2,790,380,106 32,044,394,350 28,413,376,375 550,619,957 348,879,344 58,281,468,759 50,774,582,280
Unallocated assets:
Other receivables 2,597,671,046 1,530,672,435
Cash and bank balances 44,549,361 48,667,523
Other corporate assets 383,086,305 514,282,191
Total assets as per consolidated balance sheet 61,328,542,418 52,868,204,429
Total liabilities for reportable segments 82,032,627 134,133,151 100,262,100 163,940,518 121,529,818 198,715,780 65,073,792 177,552,567 36,388,317 118,968,699 380,484,985 359,016,307 567,265,135 491,562,375 19,374,709,640 18,375,943,501 84,662,842 17,087,419 20,812,409,256 20,036,920,317
Unallocated liabilities:
Accrued mark-up 194,237,156 142,984,217
Other corporate liabilities - 252,354,245
Total liabilities as per consolidated balance sheet 41,895,096,061 36,213,446,301
37.2 Geographical information
The Group's revenue from external customers by geographical location is detailed below:
2017 2016
Rupees Rupees
Europe 3,885,229,500 3,482,993,461
Asia, Africa and Australia 9,361,046,070 9,941,641,081
United States of America, Canada and South America 5,962,365,648 4,232,428,912
Pakistan 27,282,435,152 22,083,030,243
46,491,076,370 39,740,093,697
37.3 Almost all of the non-current assets of the Group as at reporting dates are located and operating in Pakistan.

37.4 Revenue from major customers
Nishat Chunian Power Limited - Subsidiary Company sells electricity only to NTDCL. The Holding Company earn revenue from a large mix of customers.
37.5 The difference of Rupees 354.423 million appearing under "Elimination of inter-segment transactions" has been adjusted against additions to plant and machinery in these consolidated financials statements as it represents inter-segment sale of energy net off against capital work-in-progress prior to commencement of commercial operations.
131
2017 2016
38. PLANT CAPACITY AND ACTUAL PRODUCTION
Nishat (Chunian) Limited - Holding Company
Spinning
Number of spindles installed 222,708 209,652
Number of spindles worked 212,164 183,917
Capacity after conversion into 20/1 count (Kgs.) 66,097,519 66,165,532
Actual production of yarn after conversion into 20/1 count (Kgs.) 65,120,709 65,187,716
Under utilization of available capacity was due to normal maintenance and time lost in shifting of coarser counts to finer counts and vice versa.
Weaving
Number of looms installed 363 361
Number of looms worked 363 361
Capacity after conversion into 50 picks - square yards 249,955,829 231,560,698
Actual production after conversion into 50 picks - square yards 217,086,638 203,167,378
Under utilization of available capacity was due to the following reasons:
- change of articles required
- higher count and cover factor
- due to normal maintenance
Power plant
Number of engines installed 22 22
Number of engines worked 22 22
Generation capacity (KWh) 358,110,720 358,110,720
Actual generation (KWh) 170,935,553 144,646,322
Under utilization of available capacity was due to normal maintenance and demand.
Dyeing
Number of thermosol dyeing machines 1 1
Number of stenters machines 4 3
Under utilization of available capacity was due to normal maintenance and power outages.
Printing
Actual processing was in excess of rated capacity due to processing of less complex designs.
Digital Printing
Actual processing of fabrics - meters 76,419 400,911
Stitching
The plant capacity of this division is indeterminable due to multi product plant involving varying run length of order lots.
Nishat Chunian Power Limited - Subsidiary Company

Installed capacity [based on 8,760 hours (2016: 8,784) hours] - MWH 1,714,525 1,719,222
Actual energy delivered - MWH 1,315,869 1,208,325
Output produced by Plant is dependent on the load demanded by NTDCL and plant availability.
NC Entertainment (Private) Limited - Subsidiary Company
Screens (Numbers) 11 2
Seating capacity 2422 716
Average occupancy 13.66% 10.00%
2017 132 Nishat
Nishat (Chunian)
(Chunian) Limited
39. INTERESTS IN OTHER ENTITIES
39.1 Non-controlling interests (NCI)
Set out below is summarised financial information for Nishat Chunian Power Limited - Subsidiary
Company that has non-controlling interests that are material to the Group. The amounts disclosed for
Subsidiary Company are before inter-company eliminations.
2017 2016
Rupees Rupees
Summarised balance sheet
Current assets 11,808,694,000 8,856,598,585

Current liabilities 9,049,756,000 6,880,931,846
Current net assets 2,758,938,000 1,975,666,739
Non-current assets 12,004,961,000 12,824,295,035

Non-current liabilities 5,573,611,000 7,507,385,788
Non-current net assets 6,431,350,000 5,316,909,247
Net assets 9,190,288,000 7,292,575,986
Accumulated non-controlling interest 4,489,481,958 3,562,941,251
Summarised statement of comprehensive income
Revenue 16,147,843,000 13,853,806,315
Profit for the year 2,999,751,000 2,756,242,265

Other comprehensive income - -
Total comprehensive income 2,999,751,000 2,756,242,265
Profit allocated to non-controlling interest 1,465,824,064 1,348,766,360
Dividend to non-controlling interest 539,283,357 1,393,148,671
Summarised cash flows
Cash flows from operating activities 1,563,865,000 5,476,874,618

Cash flows from investing activities (335,490,000) (596,736,334)
Cash flows from financing activities (3,057,717,000) (3,638,870,454)
Net increase / (decrease) in cash and cash equivalents (1,829,342,000) 1,241,267,830

40. FINANCIAL RISK MANAGEMENT
40.1 Financial risk factors
The Group's activities expose it to a variety of financial risks: market risk (including currency risk, other
price risk and interest rate risk), credit risk and liquidity risk. The Group's overall risk management
programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse
effects on the Group's financial performance. The Group uses derivative financial instruments to hedge
exposures.
Risk management is carried out by the finance departments of the Group Companies under policies
approved by the respective Board of Directors. The finance departments evaluate and hedges financial
risks. The Board of each Group Company provides principles for overall risk management, as well as
policies covering specific areas such as currency risk, other price risk, interest rate risk, credit risk,
liquidity risk, use of derivative financial instruments and non derivative financial instruments and
investment of excess liquidity.
(a) Market risk
(i) Currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rates. Currency risk arises mainly from future commercial
transactions or receivables and payables that exist due to transactions in foreign currencies.
The Group is exposed to currency risk arising from various currency exposures, primarily with
respect to the United States Dollar (USD) and Euro. Currently, the Group's foreign exchange risk
exposure is restricted to bank balances, borrowings and the amounts receivable / payable from / to
the foreign entities. The Group uses forward exchange contracts to hedge its foreign currency risk,
when considered appropriate. The Group's exposure to currency risk was as follows:
2017 2016
Cash at banks - USD 58,782 36,664

Trade debts - USD 33,347,608 44,855,643
Trade debts - EURO 585,194 247,558
Trade and other payables - USD (270,937) (1,718,908)
Trade and other payables - EURO (23,649) (40,496)
Short term borrowings - USD (8,410,094) (8,043,596)
Accrued mark-up - USD (54,186) (42,195)
Net exposure - USD 24,671,173 35,087,608
Net exposure - EURO 561,545 207,062
The following significant exchange rates were applied during the year:
Rupees per US Dollar

Rupees per EURO

2017 134 Nishat
Nishat (Chunian)
(Chunian) Limited
Sensitivity analysis
If the functional currency, at reporting date, had weakened / strengthened by 5% against the USD
and Euro with all other variables held constant, the impact on profit after taxation for the year would
have been Rupees 124.229 million (2016: Rupees 172.950 million) higher / lower, mainly as a result
of exchange gains / losses on translation of foreign exchange denominated financial instruments.
Currency risk sensitivity to foreign exchange movements has been calculated on a symmetric basis.
In management's opinion, the sensitivity analysis is unrepresentative of inherent currency risk as the
year end exposure does not reflect the exposure during the year.
(ii) Other price risk
Other price risk represents the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market prices (other than those arising from interest rate risk or
currency risk), whether those changes are caused by factors specific to the individual financial
instrument or its issuer, or factors affecting all similar financial instrument traded in the market. The
Group is not exposed to equity and commodity price risks.
(iii) Interest rate risk
This represents the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates.
The Group has no significant interest-bearing assets except long term loans to employees, overdue
trade debts of Nishat Chunian Power Limited - Subsidiary Company and bank balances in saving
and deposit accounts. The Group's interest rate risk mainly arises from long term financing and short
term borrowings. Borrowings obtained at variable rates expose the Group to cash flow interest rate
risk. Borrowings obtained at fixed rate expose the Group to fair value interest rate risk.
At the reporting date the interest rate profile of the Group’s interest bearing financial instruments was:
2017 2016
Rupees Rupees
Fixed rate instruments
Long term financing 3,676,909,000 462,980,000
7,486,968,876 3,945,144,394
Financial assets
Long term loans to employees 12,342,730 14,285,790
Bank balances - saving accounts 114,869,000 31,000
Net exposure (7,359,757,146) (3,930,827,604)

2017 2016
Rupees Rupees
Floating rate instruments
Financial assets
Trade debts - over due 3,218,815,000 1,972,650,386

WPPF receivable from NTDC - overdue 520,302,000 382,489,804
Bank balances - saving accounts 1,521,722 7,182,797
Short term investments 31,187,439 10,500,000
3,771,826,161 2,372,822,987

31,681,452,511 29,214,402,283
Net exposure (27,909,626,350) (26,841,579,296)
Fair value sensitivity analysis for fixed rate instruments
The Group does not account for any fixed rate financial assets and liabilities at fair value through
profit or loss. Therefore, a change in interest rate at the reporting date would not affect profit or loss
of the Group.
Cash flow sensitivity analysis for variable rate instruments
If interest rates at the year end date, fluctuates by 1% higher / lower with all other variables held
constant, profit after taxation for the year would have been Rupees 265.141 million (2016: Rupees
254.995 million) lower / higher, mainly as a result of higher / lower interest expense on floating rate
borrowings. This analysis is prepared assuming the amounts of liabilities outstanding at reporting
dates were outstanding for the whole year.
(b) Credit risk
Credit risk represents the risk that one party to a financial instrument will cause a financial loss for the
other party by failing to discharge an obligation. The carrying amount of financial assets represents the
maximum credit exposure. The maximum exposure to credit risk at the reporting date was as follows:
2017 2016
Rupees Rupees
Deposits 31,905,878 29,906,428

Trade debts 13,916,760,930 11,221,170,113
Loans and advances 48,347,231 41,381,934
Short term investments 32,294,160 10,520,822
Other receivables 1,241,763,311 787,416,578
Bank balances 244,055,152 70,119,033
15,515,126,662 12,160,514,908
2017 136 Nishat
Nishat (Chunian)
(Chunian) Limited
The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to external credit ratings (If available)
or to historical information about counterparty default rate:
Rating 2017 2016

Short Term Long term Agency Rupees Rupees
Banks
Al-Baraka Bank (Pakistan) Limited A1 A PACRA 3,433,091 525,305

Askari Bank Limited A1+ AA+ PACRA 8,000 19,409
Allied Bank Limited A1+ AA+ PACRA 242,763 111,492
Bank Alfalah Limited A1+ AA+ PACRA 1,417,920 2,022,147
Bank Al-Habib Limited A1+ AA+ PACRA 365,187 2,001,817
BankIslami Pakistan Limited A1 A+ PACRA - 22,016,322
Burj Bank Limited A-2 A- JCR-VIS 184 20,761
Dubai Islamic Bank (Pakistan) Limited A-1 AA- JCR-VIS 3,898,317 692,639
Faysal Bank Limited A1+ AA PACRA 3,805,115 6,495,251
Habib Bank Limited A-1+ AAA JCR-VIS 14,608,125 2,617,948
Habib Metropolitan Bank Limited A1+ AA+ PACRA 17,190,220 -
MCB Bank Limited A1+ AAA PACRA 31,379,994 9,996,329
Meezan Bank Limited A-1+ AA JCR-VIS 2,731,217 199,404
National Bank of Pakistan A-1+ AAA PACRA 182,704 232,417
NIB Bank Limited A1+ AA - PACRA 19,908,076 6,360,020
Standard Chartered Bank (Pakistan) Limited A1+ AAA PACRA 154,189 153,748
The Bank of Punjab A1+ AA - PACRA 957,538 2,128,806
United Bank Limited A-1+ AA+ JCR-VIS 116,638,221 1,832,566
Industrial and Commercial Bank of China Limited P-1 A1 Moody’s 2,785 705
Soneri Bank Limited A1+ AA - PACRA 22,252,100 2,523,679
JPMorgan Chase Bank, N.A. Not available 18,572 10,168,268
Habib American Bank Not available 4,860,834 -
244,055,152 70,119,033
Short term investments
BankIslami Pakistan Limited A1 A+ PACRA 21,766,947 -
Dubai Islamic Bank (Pakistan) Limited A-1 AA- JCR-VIS 10,527,213 10,520,822
Trade debts - NTDCL Not available 4,120,701,000 3,388,319,828

4,397,050,312 3,468,959,683
The Group's exposure to credit risk and impairment losses related to trade debts is disclosed in Note 17.
Due to the Group's long standing business relationships with these counterparties and after giving due consideration to their strong financial
standing, management does not expect non-performance by these counter parties on their obligations to the Group. Accordingly the credit risk
is minimal.
(c) Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities.
The Group manages liquidity risk by maintaining sufficient cash and the availability of funding through an adequate amount of committed credit
facilities. At 30 June 2016, the Group had Rupees 13,367 million available borrowing limits from financial institutions and Rupees 247.054 million
cash and bank balances. The management believes the liquidity risk to be low. Following are the contractual maturities of financial liabilities,
including interest payments. The amount disclosed in the table are undiscounted cash flows:
Carrying Contractual More than 2

6 month or less 6-12 month 1-2 Year
Amount cash flows Years
---------------------------------Rupees-----------------------------------
Long term financing 17,693,664,469 20,558,880,823 2,743,468,184 2,648,184,636 5,167,875,531 9,999,352,472

Accrued mark-up 506,797,544 506,797,544 506,797,544 - - -
41,523,152,818 45,242,180,142 23,404,867,455 6,670,084,684 5,167,875,531 9,999,352,472

Carrying Contractual 6 months or More than 2

6-12 months 1-2 Year
Amount cash flows less Years
---------------------------------Rupees-----------------------------------
Long term financing 16,698,981,101 19,889,373,253 2,317,294,643 2,216,253,907 8,362,004,134 6,993,820,569

Accrued mark-up 458,805,704 458,805,704 458,805,704 - - -
35,875,924,335 39,366,589,893 19,594,972,114 4,415,793,076 8,362,004,134 6,993,820,569
The contractual cash flows relating to the above financial liabilities have been determined on the basis of interest rates / mark up rates effective
as at reporting date. The rates of interest / mark up have been disclosed in note 7 and note 10 to these consolidated financial statements.
40.2 Financial instruments by categories
Assets as per balance sheet

2017 2016
At fair value At fair value
Loans and At amortized Loans and
through profit At amortized cost through profit
receivables cost receivables
or loss or loss
- - - - - - - - - - - - - - - Rupees - - - - - - - - - - - - - - - - - - - - - - - - - - - Rupees - - - - - - - - - - - -
Deposits 31,905,878 - - 29,906,428 - -

Trade debts 13,916,760,930 - - 11,221,170,113 - -
Loans and advances 48,347,231 - - 41,381,934 - -
Short term investments - 32,294,160 - - 10,520,822 -
Other receivables 1,241,763,311 - - 741,658,326 - 45,758,252
Cash and bank balances 247,054,434 - - 76,113,994 - -
15,485,831,784 32,294,160 - 12,110,230,795 10,520,822 45,758,252
At fair value through profit or

At amortized cost
loss
2017 2016 2017 2016
Liabilities as per balance sheet
Long term financing - - 17,693,664,469 16,698,981,101

Accrued mark-up - - 506,797,544 458,805,704
Short term borrowings - - 21,474,756,918 16,460,565,575
Derivative financial instruments - 1,713,049 - -
Trade and other payables 17,060,202 - 1,847,933,887 2,257,571,955
17,060,202 1,713,049 41,523,152,818 35,875,924,335
41. CAPITAL RISK MANAGEMENT
The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern in order to provide returns for
shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or
adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, issue new shares or sell assets to reduce debt.
Consistent with others in the industry and the requirements of the lenders, the Group monitors the capital structure on the basis of gearing ratio.
This ratio is calculated as borrowings divided by total capital employed. Borrowings represent long term financing and short term borrowings
obtained by the Group as referred to in note 6 and note 10 respectively. Total capital employed includes 'total equity' as shown in the balance
sheet plus 'borrowings'. The Group's strategy, which was unchanged from last year, was to maintain a gearing ratio of 75% debt and 25% equity.
2017 2016
Borrowings Rupees 39,168,421,387 33,159,546,676

Total equity Rupees 19,433,446,357 16,654,758,128
Total capital employed Rupees 58,601,867,744 49,814,304,804
Gearing ratio Percentage 66.84 66.57

42. RECOGNIZED FAIR VALUE MEASUREMENTS - FINANCIAL INSTRUMENTS
(i) Fair value hierarchy
Judgements and estimates are made in determining the fair values of the financial instruments that are
recognised and measured at fair value in these consolidated financial statements. To provide an indication
about the reliability of the inputs used in determining fair value, the Group has classified its financial
instruments into the following three levels. An explanation of each level follows underneath the table.

At 30 June 2017
------------------------------ Rupees ----------------------------
Derivative financial liabilities - 17,060,202 - 17,060,202

Total financial liabilities - 17,060,202 - 17,060,202

At 30 June 2016
------------------------------ Rupees ----------------------------
Financial assets
Derivative financial assets - 45,758,252 - 45,758,252

Total financial assets - 45,758,252 - 45,758,252
The above table does not include fair value information for financial assets and financial liabilities not
measured at fair value if the carrying amounts are a reasonable approximation of fair value. Due to short term
nature, carrying amounts of certain financial assets and financial liabilities are considered to be the same as
their fair value. For the majority of the non-current receivables, the fair values are also not significantly different
to their carrying amounts.
There were no transfers between levels 1 and 2 for recurring fair value measurements during the year.
Further, there was no transfer in and out of level 3 measurements.
The Group’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end
of the reporting period.
Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives,
and trading and available-for-sale securities) is based on quoted market prices at the end of the reporting
period. The quoted market price used for financial assets held by the Group is the current bid price. These
instruments are included in level 1.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-
counter derivatives) is determined using valuation techniques which maximise the use of observable market
data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an
instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3. This is the case for unlisted equity securities.
Specific valuation techniques used to value financial instruments include the use of quoted market prices or
dealer quotes for similar instruments. Nishat (Chunian) Limited 139 2017
43. UNUTILIZED CREDIT FACILITIES
The Group has total credit facilities amounting to Rupees 39,377 million (2016: Rupees 29,776 million) out of
which Rupees 13,367 million (2016: Rupees 13,315 million) remained unutilized at the end of the year.
44. EVENTS AFTER THE REPORTING PERIOD
The Board of Directors of the Holding Company at their meeting held on September 22, 2017 has
proposed cash dividend of Rupees 2.75 per ordinary share (2016: Rupees2.50 per ordinary share) in
respect of the year ended 30 June 2017. The board of directors of Nishat Chunian Power Limited -
Subsidiary Company at their meeting held on September 22, 2017 has proposed cash dividend of
Rupee 1.00 per ordinary share (2016: Rupees 1.50 per ordinary share) However, these events have been
considered as non-adjusting events under IAS 10 'Events after the Reporting Period' and have not been
recognized in these consolidated financial statements.
Under Section 5A of the Income Tax Ordinance, 2001, a tax shall be imposed at the rate of 7.5% of
accounting profit before tax of the Holding Company if it does not distribute at least 40% of its after tax profit
for the year within six months of the end of the year ended 30 June 2017 through cash or bonus shares. The
requisite cash dividend has been proposed by the Board of Directors of the Holding Company in their
meeting held onSeptember 22, 2017 and will be distributed within the prescribed time limit. Therefore,
the recognition of any income tax liability in this respect is not considered necessary.
45. DATE OF AUTHORIZATION FOR ISSUE
These consolidated financial statements were authorized for issue on September 22, 2017 by the Board
of Directors of the Holding Company.
46. CORRESPONDING FIGURES
Corresponding figures have been rearranged / regrouped wherever necessary for the purpose of
comparison. However, no significant rearrangements / regroupings have been made in these consolidated
financial statements.
47. GENERAL
Figures have been rounded off to nearest of Rupee.
____________________ __________________________ ______________


PROXY FORM
The Company Secretary,

31-Q, Gulberg-II,
Lahore.
I / We ________________________ Of _______________________________ being a member(s)

of Nishat (Chunian) Limited, and a holder of _____________ Ordinary shares as per Share
Register Folio No. _____________ (in case of Central Depository System Account Holder A/c
No. _________ Participant I.D. No. ______) hereby appoint ______________________ of
____________________ another member of the Company as per Register Folio No.
_______________ or (failing him / her ____________________________ of
_________________________ another member of the Company) as my / our Proxy to attend and
vote for me / us and on my / our behalf at 28th Annual General Meeting of the Company, will be
held on October 23, 2017 (Monday) at 10:45 a.m at the Head Office of the Company 31-Q, Gulberg
II, Lahore and at any adjournment thereof.
As witness my hand this ____________ day of _______________ 2017 signed by the said
_______________________________________________________ in presence of
_________________________________________________________________
Witness Signature
Signature Affix Rs. 5/-

Revenue
Stamp
Notes:
1. Proxies, in order to be effective, must be received at the company's Registered Office /
Head Office not less than 48 hours before the meeting duly stamped, singed and witnessed.
2. Signature must agree with the specimen signature registered with the Company.

CONSENT FORM FOR ELECTRONIC TRANSMISSION OF ANNUAL REPORT AN D NOTICE OF AGM
M/s HAMEED MAJEED ASSOCIATES (PVT) LIMITED

H.M. House, 7-Bank Square,
The Mall, Lahore
Subject: CONSENT FORM FOR ELECTRONIC TRANSMISSION OF ANNUAL REPORT AND NOTICE OF AGM
Dear Sirs,
I/we, being the shareholder(s) of NISHAT (CHUNIAN) LIMITED (“Company”), do hereby consent and
authorize the Company for electronic transmission of the Audited Annual Financial Statements of the
Company along with Noce of Annual General Meeng via the Email provided herein below and further
undertake to promptly nofy the Company of any change in my Email address.
I understand that the transmission of Annual Audited Financial Statements of the Company along with
Noce of Annual General Meeng via the Email shall meet the requirements as menoned under the
provisions of Companies Act, 2017.
Name of Shareholder(s):
Fathers / Husband Name:
CNIC:
NTN:
Fathers / Husband Name:
E-mail address:
Telephone:
Mailing Address:
Signature: (In case of corporate

Date: _____________________ shareholders, the authorized
signatory must sign)

STANDARD REQUEST FORM FOR HARD COPIES OF ANNUAL AUDITED ACCOUNTS
1. Name of Member: _________________________________________________________
2. CNIC/Passport Number: _____________________________________________________
3. Parcipant ID / Folio No/Sub A/C: _____________________________________________
8. Registered Address: ________________________________________________________
___________________________________________________________________________
I/We hereby request you to provide me/us a hard copy of the Annual Report of NISHAT (CHUNIAN)
LIMITED for the year ended June 30, ______at my above menoned registered address instead of
CD/DVD/USB. I undertake to inmate any change in the above informaon through revised Standard
Request Form.
Note:
This Standard Request Form may be sent at either of the following addresses of the Company Secretary or
Independent Share Registrar of the Company:
Company Secretary,

31-Q, Gulberg II, Lahore
Email: [email protected]
Chief Execuve,

The Mall, Lahore
In case a member prefers to receive hard copies for all the future annual audited accounts, then such preference
shall be communicated to the company in wring.

E-DIVIDEND FORM (DIVIDEND PAYMENT THROUGH ELECTRONIC MODE)
The Company Secretary/Share Registrar,
I/We, __________________________, holding CNIC No. _____________________, being the registered

shareholder of the company under folio no. __________________, state that pursuant the relevant
provisions of Secon 242 of the Companies Act, 2017 pertaining to dividend payments by listed
companies, the below menoned informaon relang to my Bank Account for receipt of current and
future cash dividends through electronic mode directly into my bank account are true and correct and I
will inmate the changes, if any in the above-menoned informaon to the company and the concerned
Share Registrar as soon as these occur through revised E-Dividend Form.
Title of Bank Account

Bank Account Number
IBAN Number
Bank’s Name
Branch Name and Address
Cell Number of Shareholder
Landline number of Shareholder
Email of Shareholder
In case of CDC shareholding, I hereby also undertake that I shall update the above informaon of my
bank account in the Central Depository System through respecve parcipant
Date: ____________ Member’s Signature
Note:
Company Secretary Chief Execuve,
NISHAT (CHUNIAN) LIMITED M/s HAMEED MAJEED ASSOCIATES (PVT) LIMITED

31-Q, Gulberg II, Lahore H.M. House, 7-Bank Square,
Email: [email protected] The Mall, Lahore

FORM FOR VIDEO CONFERENCE FACILITY
The Company Secretary/Share Registrar,
I/we,__________________________, of _____________________, being the registered shareholder(s)

of the company under Folio No(s). __________________/ CDC Parcipant ID No.___ and Sub Account
No.___ CDC Investor Account ID No., and holder of ___________ Ordinary Shares, hereby request for
video conference facility at _________________ for the Annual General Meeng of the Company to be
held on 23rd October, 2017
Date: ____________ Member’s Signature
Note:
Company Secretary,

31-Q, Gulberg II, Lahore
Email: [email protected]
Chief Execuve,

The Mall, Lahore
 *
 ,

,
 
  II  31-Q
–––––––––––––––––––––––––––––––––––––––––––––––––––––– /
–––––––––––––––––––––––––––––––––––––––––––––––––––––– 
––––––––––––––– ì  –––––––––––––   * ¶

K
 ––––––––––––     

  * $  
––––––––––––  $  , n
 
+
 
–––––––––––––––––––––––––  ––––––––––––––––––––––––  
––––––––––––––––       *

– – – – – – – – – – – – – – –     ì     
 –––––––––––––––ì –––––––––––––––––––––––––
 
'
,        28  II 31-Q 2017,  23
*
 , 
 
 2017 ,
...................................  ................................... 

  5

 
  48      *
/ è*
 , 1
   2

INVESTORS’ EDUCATION
In pursuance of SRO 924(1)/2015 dated September 9th, 2015 issued by the Securities and Exchange Commission of
Pakistan (SECP), the following informational message has been reproduced to educate investors:

CrossMedia | 0333 450 1684

Annual 2017

Uploaded by

Copyright:

Available Formats

Annual 2017

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Annual 2017

Uploaded by

Copyright:

Available Formats

ANNUAL REPORT 2017

Nishat Chunian Limited

2015 Diversified into Cinema Business

2014 46 MW Coal Based Power Plant

2013 Established a subsidiary company in

2013 2 Spinning Mills acquired & a new spin-

2010 IPP commercial operations

2006 Diversified into Home Textiles

2005 Acquisition of 2 spinning Mills & 5th

2000 2nd Spinning mill started production

1998 Diversified into Weaving

1991 1st Spinning Mill Setup

Nishat (Chunian) Limited 1 2017

Nishat (Chunian) Limited – Financial Statements

Consolidated Financial Statements

Nishat (Chunian) Limited 3 2017

Board of Directors: Bankers to the Company:

Head of Internal Audit: Auditors:

2017 4 Nishat (Chunian) Limited

By order of the Board

For entitlement of 27.50% Final Cash Dividend:

2. Participation in the Annual General Meeting

A. For Attending the Meeting:

B. For Appointing Proxies:

Nishat (Chunian) Limited 5 2017

3. CNIC / NTN Number on Dividend Warrant (Mandatory)

1. Rate of tax deduction for filer of income tax return 15%

Company Folio/CDs Ac- Total Shares Principal Shareholder Joint Shareholder

5. Payment of Cash Dividend Electronically

6. Circulation of Annual reports through Digital Storage

8. Video Conference Facility

10. Change of Address

Nishat (Chunian) Limited 7 2017

On behalf of the board,

Mrs. Farhat Saleem

2017 8 Nishat (Chunian) Limited

Nishat (Chunian) Limited 9 2017

For the Year Ended

Nishat (Chunian) Limited 11 2017

Business Machinery Added Investment

SEGMENT WISE REVENUE

Home Textile Weaving Spinning

Nishat (Chunian) Limited 13 2017

The retail venture of the company ‘The Linen

2017 14 Nishat (Chunian) Limited

INTERNAL FINANCIAL CONTROLS

Nishat (Chunian) Limited 15 2017

STATEMENT OF VALUE ADDITION

Retained for reinvestment and future growth

2017 16 Nishat (Chunian) Limited

Board of Directors Meetings:

Name of Directors No. of Meetings

Mr. Muhammad Imran Rafique Chairman

HR & Remuneration Committee

Mrs. Farhat Saleem Chairperson

Nishat (Chunian) Limited 17 2017

2. Proper books of accounts of the Company have been maintained.

On behalf of the Board,

Date: September 22, 2017

Dividend Payout Rao 0.47 0.16 0.26 0.38 0.45 0.41

Break up value Net Debt Equity Rao (mes)

_____ _

______ _ _

___

____ _ _