ACCORD TEXTILES LIMITED
CONTENTS
COMPANY INFORMATION
VISION & MISSION STATEMENT
STATEMENT OF ETHICS & BUSINESS PRACTICES
NOTICE OF ANNUAL GENERAL MEETING
DIRECTOR'S REPORT TO MEMBERS
STATEMENT OF COMPLIANCE
REVIEW REPORT TO THE MEMBERS
PATTERN OF SHAREHOLDING
PATTERN OF SHAREHOLDING ADDITIONAL
KEY OPERATING & FINANCIAL DATA
AUDITOR'S REPORT TO THE MEMBERS
BALANCE SHEET
PROFIT & LOSS ACCOUNT
CASH FLOW STATEMENT
STATEMENT OF CHANGES IN EQUITY
NOTES TO THE ACCOUNTS
COMPANY INFORMATION
BOARD OF DIRECTORS		MR. HAIDER ALI                    (CHAIRMAN/CHIEF EXECUTIVE)
		MUHAMMAD TAHIR
		MR. RAHEEM AZEEM
		MRS. AZRA AHMED
		MRS. TAHIRA JAVED
		MR. EBRAHIM FAYEZ HUMAID
		MRS. FARNAZ HAIDER
AUDIT COMMITTEE		MR. RAHIM AZEEM                          (CHAIRMAN)
		MRS. AZRA AHMED                         (MEMBER)
		MRS. FARNAZ HAIDER                   (MEMBER)
CHIEF FINANCIAL OFFICER		MR. IMRAN IFTIKHAR
CORPORATE SECRETARY		MR. IMRAN IFTIKHAR
BANKERS & FINANCIAL		HABIB BANK LIMITED
INSTITUTIONS		EMIRATES BANK INTERNATIONAL
		NATIONAL BANK OF PAKISTAN (FORMER N.D.F.C)
AUDITORS		M. HUSSAIN CHAUDHURY & CO.
		CHARTERED ACCOUNTANTS
LEGAL ADVISORS		CORNELIUS LANE & MUFTI
		4, FATIMA JINNAH ROAD, LAHORE.
REGISTERED OFFICE		47-A, MAIN GULBERG, LAHORE.
HEAD OFFICE		8 - SHERPAO BRIDGE COLONY, LAHORE CANTT.
MILLS		20 KM, RAJANA PIR MAHAL ROAD, TEHSIL KAMALIA
		DISTT. TOBA TEK SINGH
Vision and Mission Statement
Vision
To achieve consistent superior performance in all respects, provide quality products
to our valued customers and run the company purely on professional grounds.
Mission
To identify and satisfy customer needs with good quality products.
We aim at achieving continuous improvement with the help of innovative technology applications.
We strive diligently to serve our community and protect the environment with integrity and pride.
We intend to create a conducive work environment for the employees and aim at a stimulating and
challenging team oriented atmosphere which encourages and rewards excellence.
STATEMENT OF ETHICS AND BUSINESS PRACTICES
We believe that a complete code of ethics is essential for the maintenance of integrity and
professionalism in the day-to-day functioning of Accord Textiles Limited. We always place the
company's interest first through resource management namely human, financial and other infra
structural facilities and to ensure reasonable return to all the shareholders. Conduct business as
a responsible and law abiding corporate member of society to achieve its legitimate commercial
objective and supports unconditionally the Compliance with best Practices of Corporate
Governance for the betterment of corporate culture, We develop and observe cost effective
practices in our activities and strive for excellence and quality, We encourage initiative and self-
realization in employees through meaningful empowerment.
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the 15th Annual General Meeting of the shareholders of ACCORD TEXTILES
LIMITED, will be held at its Head Office at 8, Serpao Bridge Colony, Lahore Cantt. on Wednesday, December 31,
2003 at 11:00 a.m. to transact the following business:
1 -         To confirm the minutes of the preceding meeting of the shareholders of the company.
2-         To receive, consider and adopt the audited accounts of the Company for the year ended 30th September,
2003, together with Directors and Auditor's reports thereon.
3-         To appoint the Auditors for the year 2004 and to fix their remuneration. The retiring auditors, M/s M.
Hussain Chaudhury & Co., Chartered Accountants, being eligible offer themselves for re-appoimtment.
4-         To transact any other business with the permission of the chair.
By Order of the Board
Place: Lahore                                                                                                                   ,MRAN |FT|KHAR
Dated: December 09, 2003                                                                                             (Company Secretary)
Notes:
1 -         The share transfer books of the Company shall remain closed from 30-12-2003 to 06-01-2004 (both days
inclusive)
2-         A member entitled to attend and vote at the above meeting may appoint another member as proxy.
Proxies, in order to be effective, must be received at the Head Office of the Company not later than 48
hours before the time of meeting and must be duly stamped, signed and witnessed.
3-         Shareholders are requested to notify a change in their address, if any
Director's Report to the Members
The Directors welcome you to the 15th Annual General Meeting of the Company and are pleased to place bel
you the Audited Accounts and Annual Report for the year ended September 30,2003.
Financial Results
The financial results of the Company for the year under review are as under:
Financial and Ooeratina results
					2003	2003
Operating loss					-41,643,110	-28,504,874
Financial charges					-11,836,450	-8,341,349
Other income					104,762	2,359,618
Loss before taxation					-53,374,798	-34,486,605
Taxation					-7,613,094	-1,102,222
Loss after taxation					-45,761,704	-35,588,827
Extraordinary items					2,803,492	-
Loss after taxation and extraordinary items					-42,958,212	-35,588,827
Accumulated losses brought forward					-644,307,895	-608,719,068
Accumulated losses carried forward					-687,266,107	-644,307,895
Reason of Deviation:
The Company has incurred a net loss of Rs.53.375 (Million) after charging depreciation of Rs. 17.131 (Million) and
financial charges of Rs. 11.836 (Million). The results for the financial year under review are not satisfactory. Prices
of cotton showed a constant upward trend in the financial year, specially in the last quarter of the year. On the other
hand, the increase in yarn prices was not proportionate with cotton prices causing huge loss. Other reasons of the
loss were the overall recessionary trend in the local and international market and lack of working capital. Your
Company managed to increase production of yarn during the year under review converted in to 20/s count was
4.009 (Million) kgs as compared to 3.756 (Million) kgs during the preceding year. The management is
continuously trying hard to obtain better results. However, the financial results could not reflect the kind of efforts
and performance of the management on account of general recession and poor economic conditions prevailing in
the country.
Dividend
In view of net loss for the year under review, the Directors have not recommended any dividend.
Outstanding Statutory Payments
Other than the amount of income tax deducted at source as specified in Note No. 8 to the Financial Statements, no
other statutory payment on account of taxes, duties, levies and charges are outstanding. This lapse in payment is
due to severe liquidity problem, which we are facing due to heavy losses since many years. The management is
making efforts to regularize its obligation for payment of taxes and is enforcing a strict compliance policy to ensure
prompt payments.
Earning per share
Earning per share for the year under review is Rs. (4.62)
Gratuity
The Company operates an unfounded gratuity scheme for all of its permanent employees.
Corporate and Financial Reporting Framework
Presentation of financial statements:
The financial statements, present fairly the state of affairs, result of operations, cash flows and changes in equity.
Books of Account:
Proper books of accounts of the listed company have been maintained.
Accounting Policies
Appropriate accounting policies have been consistently applied in preparation of financial statements except for
the change in accounting policy as stated in note 2.4 and 23.3 to the account and accounting estimates are based
on reasonable and prudent judgment.
International Accounting Standards:
International Accounting Standard, as applicable in Pakistan, have been followed in preparation of financial
statement and any departure there from has been adequately disclosed.
Internal Controls:
The system of internal control is sound in design and has been effectively implemented and monitored.
Going Concern:
Based on gross loss, accumulated losses, adverse current ratio and over due installments of long term loans, the
auditors have expressed their reservation on the viability of the Company to continue as a going concern.
Although your company has been facing severe financial problems due to constant loss for the last many years.
Your company has managed to get working capital from H.B.L. for the current cotton season. In our opinion in the
presence of working capital facility the management dose not foresee any problem in the smooth operation of the
company.
Corporate Governance:
There has been no material departure from the best practices of corporate governance, as detailed in the listing
regulations of the Stock Exchanges.
Auditors
The auditors M/s M. Hussain Chaudhury & Co. Chartered Accountants retired and being eligible to offer
themselves for re-appointment. The Board of Directors as suggested by Audit Committee has recommended the
re-appointment of M/s M. Hussain Chaudhury & Co. Chartered Accountants, as the auditors of the Company for
the coming year.
Auditors Committee
The Board of Directors in compliance with the Code of Corporate Governance has established an audit
committee. Following directors are member:
Mr. RaheemAzeem		Chairman
Mrs. Azra Ahmad		Member
Mrs. Farnaz Haider		Member
Pattern of Shareholding
A statement showing the pattern of shareholding by the shareholders on September 30,2003 is annexed.
Key Operating and financial data
A summary of key operating and financial data of the last six years is annexed.
Board of Director's Meeting
During the year under review seven meetings were held and number of meetings attended by each Director is as
follows:
Name of Directors		Number of meeting attended
Mr. Haider AN		7
Mr. Muhammad Thair		3
Mr. Raheem Azeem		7
Mrs. Azra Ahmad		5
Mrs. Tahira javed		3
Mr. Ebrahim Fayaz Humaid		Nil (None-resident)
Mrs. Farnaz Haider		5
Leaves for absence were granted to the Directors who could not attend the Board meetings due to pre-occupation
or illness.
Trade in shares of the Company
No trading was carried out in the shares of the Company by the Directors, Chief Executive Officer (CEO)- Chief
Financial Officer (CFO), Company Secretary, their spouses and minor children.
Future Prospects
Textile Industry is currently suffering from cotton crises internationally and nationally in Particular. Cotton prices
have touched all time high rate of Rs.3500/- per Maund whereas the prices of yarn have not increased
accordingly. It has been become very difficult to predict better results for future.
Acknowledgment
The Directors place on record their appreciation for the devoted efforts and hard work done by workers, Staff Head
Officers of the Company during the year. We are also thankful to our suppliers, Shareholders, Banks and Financial
Institutions for their continued support and confidence in our company and assured them that we remain
committed to do our best utilization of their investment in our Company for growth in future.
For and on behalf of the Board
Place: Lahore                                                                                                                            (HAIDER ALI)
Dated: December 09, 2003                                                                                                      Chief Executive
STATEMENT OF COMPLIANCE WITH THE
PRACTICE OF CORPORATE GOVERNANCE TO THE MEMBERS