Elite Textile Mills Limited
Annual Reports 2003
Contents
Board of Directors
Notice of Meeting
Directors' Report to the Shareholders
Auditors' Report to the Members
Balance Sheet
Profit and Loss Account...
Cash Flow Statement
Statement of Changes in Equity
Notes to the Account
Pattern of Shareholding
Board Of Directors
Mr. Anjum M. Saleem
Mr. Ahmed Shafi
Mr. Khalid Bashir
Mr. Salman Rafi
Mr. Shams Rafi (Chief Executive)
Mr. Shaukat Shafi
Mr. Gsman Shafi
Auditors
M. Yousuf Adil Saleem & Co.
Chartered Accountants
Bankers
Muslim Commercial Bank Ltd.
National Bank of Pakistan
Legal Advisers
A. K. Brohi & Co.
Ghani Law Associates
Registered Office
A-40, S.I.T.E., Manghopir Road, Karachi.
Mills
A-40, S.I.T.E., Manghopir Road, Karachi.
Notice of Annual General Meeting
Notice is hereby given that the 52nd Annual General Meeting of the shareholders of
Elite Textile Mills Limited will be held on Wednesday the December 31, 2003 at 10:00 a.m.
at B-28, S.I.T.E., Manghopir Road, Karachi, to transact the following business.
1.    To receive consider and adopt Audited Accounts of the Company for the year
ended   September   30,   2003   together   with   the   Directors   and   Auditor's
Reports thereon.
2.    To appoint Auditors and fix their remuneration.
NOTES:
1.    The Share Transfer Books of the Company will remain closed from December 22, 2003
to December 31, 2003 (both days inclusive).
2.    A member eligible to attend and vote at this meeting may appoint another member as
proxy to attend and vote in the meeting. Proxies in order to be effective must be received
by the company at the Registered Office not later than 48 hours before the time for holding
the meeting.
3.     Shareholders are requested to immediately notify the change in address if any.
On behalf of the Board
Masood A. Sheikh
Company Secretary
Registered Office
A-40, S.l.T.E.
Manghopir Road,
Karachi.
Date : December 08, 2003
Director's Report to the Shareholders
The Directors of your Company feel pleasure in presenting the annual report and audited financial
statements for the year ended 30 S o3.
1.    Financial Results
Your Company's operations for the year resulted in a post tax Loss of Rupees (3.873) million.
2.   Auditors
The present auditors M/s. M.Yousuf Adil Saleem & Company, Chartered Accountants retire
and being eligible, offer themselves for re-appointment.
3.    Review of financial Affairs and Future Prospects
The result for the year shows a pre-tax loss of Rs.(3.872) million. Break up of it can be read
under profit & loss account 2003.
					2003
					Rupees
Loss before taxation					-3,872,657
Add: Provision for taxation					-515
					-3,873,172
Waiver by the bank					33,558,254
Accumulated loss brought forward					-201,990,129
Accumulated loss carried forward					-172,305,047
The Auditors have one observation in the Auditors' Report to the Members. This observation is addressed
below.
As stated in note 1.2 to these financial statements, the Company has ceased all production
activities and has disposed of all plant and machinery and portion of land & buildings.
Considering the above, the Auditors observe that the Company is no more a going concern.
4.    Pattern of Shareholding
The pattern of shareholding as required by Section 236 of the Companies Ordinance, 1984 is
attached to this report.
5.    Statement pursuant to clause XIX of Corporate Governance
a)   The financial statements of the Company present fairly its state of affairs, the results of its
operations, cash flows and changes in equity.
b)    Proper books of account of the Company have been maintained.
c)    Appropriate accounting policies have been consistently applied in preparation of financial
statement except for the changes as explained note 2.10 to the accounts and accounting
estimates are based on reasonable and prodent judgment.
d)    International accounting standards as applicable in Pakistan have been followed in the
preparation of financial statements and any departure there from has been adequately
disclosed.
e)    The system of internal control is sound in design and is being consistently reviewed by the
internal audit and other procedures and will continue to be reviewed and any weakness in the
system will be eliminated.
f)     Since the Company is no more a going concern hence, no vision or mission has been provided.
g)    Attendance at 4 meetings of the Board of Directors held during the year under review were
as under:
Name of Director			Meetings attended
Mr. Anjum M.Saleem			-
Mr. Ahmed Shafi			3
Mr. Khalid Basheer			-
Mr. Shaukat Shafi			4
Mr. Shams Rafi			4
Mr. Salman Rafi			4
Mr. (Jsman Shafi			1
k)   No trading in the shares of the Company was carried out by the Directors, CEO, CFO and
Company Secretary, their spouses and minor children.
For and on behalf of the Board.
Shams Rafi
Chief Executive
Date: December 08, 2003
Karachi.
AUDITORS' REPORT TO THE MEMBERS
We have audited the annexed balance sheet of. ELITE TEXTILE MILLS LIMITED as at September
30, 2003 and the related profit and loss account, statement of changes in equity and cash flow
statement together with the notes forming part thereof, for the year then ended and we state
that we have obtained all the information and explanations which to the best of our knowledge
and belief, were necessary for the purposes of our audit.
It is the responsibility of the Company's management to establish and maintain a syi/°rn of internal
control, and prepare and present the above said statements in conformity with the approved accounting
standards and the requirements of the Co'mpanies Ordinance, 1984. Our responsibility is to express
an opinion on these statements based on our audit.
We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These
standards require that we plan and perform the audit to obtain reasonable assurance about whether
the above said statements are free of any material misstntement. An 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 presentation of the above said statements. We believe that our audit
provides a reasonable basis for our opinion and, after due verification, we report that:
a.    in our opinion, proper books of account have been kept by the Company as required by the
Companies Ordinance, 1984;
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 Companies Ordinance, 1934, 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
iii.   the expenditure incurred during the year was in accordance with the objects of the company;
c.    in our opinion and to the best of our information and according to the explanations given to us,
the balance sheet, profit and loss account, statement of changes in equity and cash flow statement
together with the notes forming part thereof confirm with approved accounting standards as
applicable in Pakistan, and, give the information required by the Companies Ordinance, 1984 in
the manner so required, except for the effects of the matter regarding claims of Sales Tax
Department (Refer Note No.8.1) and adjustments required, if any, on the ultimate outcome of the
matter, these respectively give a true and fair view of the state of the company's affairs as at
September 30, 2003 and of the loss, changes in equity and its cash flows for the year then ended;
and
d.    in our opinion, no zakat was deductible at source under the Zakat and Ushr   Ordinance,
1980
Without further qualifying our report, we draw attention of the members towards Note 1.2 to these
financial statements which indicates that the company has ceased all production activities since
September 1997 and disposed off all plant and machinery, portion of land and building and intends
to dispose off the remaining assets and have disclosed these as idle assets in note 10 to these financial
statements. Therefore, the company is no more considered as a going concern. Consequently, assets
are recorded at realizable value and liabilities at amount payable.
Date: December 08, 2003                                                               M. Yousuf Adil Saleem & Co.
Karachi.                                                                                         Chartered Accountants
Balance Sheet
					2003	2002
				Note	Rupees	Rupees
SHARE CAPITAL
Authorised
2,000,000 Ordinary shares
of Rs.lO/=each					20,000,000	20,000,000
Issued, subscribed and paid up				3	19,320,000	19,320,000
Accumulated loss					-172,305,047	-201,990,129
					-152,985,047	-182,670,129
SURPLUS ON REVALUATION
OF FIXED ASSETS				4	119,909,606	119,909,606
CURRENT LIABILITIES
Short term bank borrowings				5	-	24,776,854
Short term loans				6	114,522,174	116,668,437
Creditors, accrued and other
liabilities				7	46,625,732	51,501,244
Taxation					981,431	1,410,731
					162,129,337	194,357,266
CONTINGENCIES				8
					129,053,896	131,596,743
The annexed notes from 1 to 21 form
an integral part of these accounts.
					2003	2002
				Note	Rupees	Rupees
FIXED ASSET				9	167,541	209,426
IDLE ASSETS				10	128,488,065	128,488,065
LONG TERM DEPOSITS					283,900	968,900
CURRENT ASSETS
Advance income tax					-	783,871
Other receivables				11	-	1,006,428
Cash and bank balances				12	114,390	140,053
					114,390	1,930,352
					129,053,896	131,596,743
Profit & Loss Account
For the year ended September 30, 2003
					2003	2002
				Note	Rupees	Rupees
Storage income					102,929	264,000
Administration expenses				13	-1,656,594	-773,023
					-1,553,665	-509,023
Financial charges				14	-11,106,233	-18,219,247
Loss for the year					-12,659,898	-18,728,270
Provision for doubtful recoveries					.	3,000,000
Balances written back / written off - net					8,787,241	-
					8,787,241	-3,000,000
Loss before taxation					-3,872,657	-21,728,270
Provision for taxation
Current					-515	-1,320
Prior years'					-	-23,492
					-515	-24,812
Loss after taxation					-3,873,172	-21,753,082
Waiver by the bank				15	33,558,254	-
					29,685,082	-21,753,082
Accumulated loss brought forward					-201,990,129	-180,237,047
Accumulated loss carried forward					-172,305,047	-201,990,129
Earnings per share				16	-2	-11.26
The annexed notes from 1 to 21 form
an integral part of these accounts.
Cash Flow Statement