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AMIN SPINNING MILLS LIMITED.
Annual Reports 2003
CONTENTS
Company Profile
Vision & Mission Statement
Statement of Ethics And Business Practices
Notice of Annual General Meeting
Directors' Report
Six Years Operating and Financial Data
Pattern of Share Holding
Statement of Compliance With Best Practices of
Corporate Governance
Review report to the members on statement of compliance
with best practices of code of corporate governance
Auditors' Report
Balance Sheet
Profit & Loss Account
Cash Flow Statement
Statement of Changes in Equity
Notes to the Accounts
COMPANY PROFILE
Board of Directors
Chaudhury Muhammad Saeed	(Chief Executive)
Chaudhury Muhammad Euseff
Chaudhury Muhammad Yaqoob
Chaudhury Muhammad Naeem
Chaudhury Muhammad Sadiq
Chaudhury Khuda Dad
AUDIT COMMITTEE
Chaudhury Mohammad Sadiq	(Chairman)
Chaudhury Mohammad Yaqoob	(Member)
Chaudhury Mohammad Naeem	(Member)
CORPORATE SECRETARY
CHIEF FINANCIAL OFFICER ( CFO)
Rao Anees - Ur -Rehman
MANAGER INTERNAL AUDIT
Syed Shafqat Altaf
BANKERS
Habib Bank Limited
National Bank of Pakistan
Faysal Bank Limited
AUDITORS
M. Hussain Chaudhury & Co.
Chartered Accountants
CORPORATE & SHARES DEPARTMENT
24 / D-l Industrial Estate Mirpur (A.K)
Tel : (058610)   44308 - 43921    Fax 43921
REGISTERED OFFICE
24 /D-l Industrial Estate Mirpur (A.K)
Tel : (058610) 44308-  43921    Fax 43921
MILLS
24 /D-l Industrial Estate Mirpur (A.K)
Tel : (058610) 44308 - 43921    Fax 43921
Website : www.asmazad.com
E-mail : anees642003@yahoo.com
Vision Statement
To attain a leadership position in the textile sector in Pakistan through commitment, Integrity,
honesty and team work.
Mission Statement
The company will conduct its operations prudently assuring customer's satisfaction and to
provide profits as well as growth to its shareholders through.
•   Acquiring   sophisticated   technology   by   continuously   balancing,   modernization   and
replacement (BMR) of plant and machinery.
•   Manufacturing of cotton and blended yarn in accordance with the customer's requirement
and market demand.
•   Providing quality products to our customers mainly engaged in the manufacturing of
textile products.
•   Striving hard to develop new markets for the sale of our products.
•   Enhancing the profitability of the mill by improved efficiency and cost controls ensuring a
fair return to the investors, shareholders and employees of the company.
•   Making comprehensive arrangement for the training of our workers as well as technician
and providing them good working conditions.
•   Protecting the environment and contributing towards the economic growth of the country
as a good corporate citizen.
STATEMENT OF ETHICS AND BUSINESS PRACTICES
Amin Spinning Mills Ltd has laid the following business ethics and principles, the observance of
which is compulsory for all the directors and staff member of the company in the conduct of
company's business in order to protect and safeguard the reputation and integrity of the
company at all levels of its operations. Any contravention of these ethics is regarded as
misconduct. The company will ensure that all the executives and subordinate staff are fully aware
of these standards and principles.
1.   Conflict of Interest
All staff members are expected not to engage in any activity which can cause conflict
between their personal interest and company's interest, such as:
a.    In effecting the purchases for the company and selling its products the directors
and the staff members are forbidden from holding any personal interest in any
organization supplying goods or services to the company or buying its products.
b.   The staff members should not engage in any outside business while serving the
company.
c.    Staff members are not permitted to conduct personal business in company's
premises or use the company's facilities for the same.
d.   If  a   staff  member  has  a  direct  or  indirect  relationship  with  an  outside
organization dealing with the company he must disclose the same to the
management.
2.   Confidentiality
All members are required not to divulge any secrets / information's of the company to
any outsider even after leaving the service of the company unless it is so required by
court of law. During the course of service in the company not disseminate any
information relating to the company without the consent of the management.
3.   Kickbacks
All members are strictly forbidden not to accept any favor, gifts or kickbacks from any
organization dealing with the company. In case if such a favor is considered, in the
interest of the company, the same should be disclosed clearly to the management.
4.   Proper accounts keeping
All fund's receipts and disbursements should be properly recorded in the account books
of the company. No false or fictitious entries should be made or misleading statement
pertaining to the company or its operation should be issued. All arrangement s with
agents, dealers and consultants should be made in writing supported with the required
evidence.
5.   Relationship with government officials suppliers, agents etc
The dealings of the company with the government officials, suppliers, buyers, agents,
and consultants of the company should always be such that the integrity of the company
and reputation is not damaged. Members having queries in connection with how to deal
with their requirements should consult the management.
6.   Health and safety
Every staff member is required to take care of his health and safety and of those working
with him. Company management is responsible for medical treatment of its staff
members as per government and regulations.
7.   Environment
To preserve and protect the environment all staff members are required to operate the
company's facilities and processes so as to ensure maximum safety of the adjoining
communities, and strive continuously to improve environmental awareness and
protections.
8.   Alcohol, drugs
All types of gambling and betting at company's working places are strictly forbidden, also
taking of any alcohol or drugs inside the work places is not allowed and any member of
the staff, not abiding by the prohibitions will attract disciplinary and penal action under
the law.
9.   Coordinating among the staff members to maintain discipline
All staff members will work in close co-ordination with their co-workers, superiors and
colleagues, every member will co-operate with other members so that the company's
work is carried out effectively and efficiently. All cases of non co-operation among staff
members should be reported to the management for necessary and suitable action. Strict
disciplinary action will be taken against those staff members who violate the rules and
regulations of the company.
10.10.Workplace harassment
All members of the staff will provide an environment that is free from harassment and in
which all employees are equally respected. Work place harassment means any action
that creates an intimidating, hostile or offensive environment which may include sexual
harassment, disparaging remarks based on gender, religious, race or ethnicity.
NOTICE OF ANNUAL GENERAL MEETING
Notice is herby given that the 20th Annual General Meeting of Amin Spinning Mills Limited Mirpur
(A.K) Will be held on Saturday January 31st 2004 at 11.30 A.M. at Registered Office 24/D-l
industrial Area Mirpur (A.K) to transact the following business:-
1.    To confirm the minutes of the last Annual general Meeting held on March 31, 2003.
2.    To  receive and  adopt the audited accounts of the Company for the year ended
September 30, 2003 together with the reports of directors and auditors thereon.
3.    To appoint auditors of the company for the year ending September 30, 2004 and to fix
their remuneration.
4.    To transact any other business which may be brought forward with the permission of the
Chair.
Notes :
The share transfer books of the company are closed since take over by the present
management and will remain closed till availability of records / statutory books at
registered office of the company from previous management.
A member entitled to attend and vote at the Annual General Meeting may appoint
another member as his/her proxy to attend and vote on his/her behalf, Proxies to
be effective must be received by the company not less than 48 hours before the
meeting.
Members are requested to notify immediately changes in their address, if any.
Directors' Report
The Directors present before you the annual report along with the audited financial statements for the year
ended September 30, 2003.
Presently, management is striving hard on one side for economic and profitable operation and on other side
doing its best effort in settling and defending the cases with the Income Tax / Sales Tax and other legal
cases along with loan settlement with our banker (NBP) under SBP circular No.29 of 2002.
Financial Results
The company suffered heavy losses of Rs. 33.766 millions as compared to loss of Rs. 51.414 million in the
previous year. The loss is mainly attributable to increase in prices of raw cotton and staple fiber and
decrease selling prices of yarn. The prices of blended yarn generally remained depressed during the year.
The market of yarn is also under pressure because of recession in global market of yarn. These factors
along with the uncertain economic and political conditions and the global events (Iraq War) added to the
economic difficulties of the country.
Dividend
The company could not declare any dividend due to loss during the year and accumulated losses brought
forward.
Accounting Policies
Appropriate accounting policies has been consistently applied in the preparation of financial statements and
accounting estimates are based on reasonable and prudent judgement except for change in accounting
policy regarding deferred taxation. It was changed due to the application of IAS—12. The impact of change
in policy is disclosed in note No. 2.6 and 28.2 to the financial statements as per alternative treatment.
Compliance with International Accounting Standards
International Accounting standard, made applicable by the SECP from time to time has been followed in the
preparation of financial statement and there has been no departure from them, except the applicability of
IAS -19, having no material impact on account of its minor amount involved.
Going Concern
Doubt upon the ability of the company to continue as going concern has ostracized, as the company has
made down payment to bank for settling the NBP loans under SBP circular No. 29 and hopefully the
company will succeed in settling the NBP loans as requested by the company management to pay the
liabilities determined with in period of five years instead of three years. Further the financial assistant from
present directors as well as from other financial institution for BMR and expansion of unit may strengthen
the financial position of company.
Corporate and Financial Reporting Framework
a.     The financial statements prepared by the management of the company, present fairly its state of
affairs the results of its operations, cash flow and changes in equity.
b.     Proper books of accounts of the company have been maintained.
c.     Appropriate   accounting   policies   have   been   consistently  applied   on   preparation   of  financial
statement.
d.     International Accounting standards, as applicable in Pakistan have been followed in preparation of
financial statements and any departure there from has been adequately disclosed.
e.     The system of internal control is sound in design and has been effectively implemented and
monitored. The process of review will continue and any weakness in controls will be removed.
f.     There has been no material departure from the best practices of corporate governance as detailed
in listing regulation except the availability of statutory record.
g.     Key operating and financial data for the last six years in summarized form is annexed.
h. We have filed application to company Registrar Muzzaffar Abad under section 263 of Companies
Ordinance 1984 for investigation of accounts as the present management do not agree with the