Crescent Textile Mills Limited - Annual Reports 2003

THE CRESCENT TEXTILE MILLS LIMITED.

Annual Reports 2003

CONTENTS

COMPANY INFORMATION

Board of Directors

Bankers

Mr. Muhammad Anwar

Chairman &

Al Baraka Investment Bank B.S.C (E.C)

Chief Executive

Allied Bank of Pakistan Limited

Mr. Anjum M. Saleem

Director

Bank AI-Falah Limited

Mr. Asif Jameel (Nominee: NIT)

Director

Faysal Bank Limited

Mr. Humayun Mazhar

Director

Habib Bank Limited

Mr. Javed Omer Vohra

Director

Industrial Development Bank of Pakistan

Mr. Khalid Bashir

Director

Meezan Bank Limited

Mr. Muhammad Arshad

Director

National Bank of Pakistan

Mr. Nasir Shafi

Director

Pakistan Industrial Credit & Investment

Corporation Limited

Audit Committee

Saudi Pak Industrial & Agricultural Investment

Mr. Khalid Bashir

Chairman

Company (Private) Limited

Mr. Anjum M. Saleem Mr. Nasir Shafi

Member Member

Saudi Pak Commercial Bank Limited Union Bank Limited

United Bank Limited

Chief Financial Officer

Mr. Saeed Ahmad Jabal

Registered Office & Share Department

40-A, Off: Zafar Ali Road, Gulberg-V,

Head of Internal Audit

Lahore. Pakistan

Mr. Sadiq Saleem

T+ 92-42-111-245-245

F + 92-42-111-222-245

Corporate Secretary

E-mail: mailho@crescentbahuman.com

Mr. Ghulam Muhammad

Mills

Auditors

Sargodha Road,

Riaz Ahmad & Company

Faisalabad. Pakistan

Chartered Accountants

T + 92-41-111-105-105

F + 92-41-111-103-104

Legal Advisor

E-mail: crestex@ctm.com.pk

Mr. Fazal Din Faiz

Advocate

Web Site: www.ctm.com.pk

Hassan & Hassan

Advocates

Liaison Office

8th Floor, Sidco Avenue Centre,

Stratchen Road,

Karachi. Pakistan

Stock Exchange Listing

T + 92-21-111-105-105 F + 92-21-111-103-104

The Crescent Textile Mills Limited is a listed Company

E-mail: ctmkhi@fascom.com

and its shares are traded on all three stock Exchanges

in Pakistan.

The Company's shares are quoted in leading dailies

under textile composite sector.

NOTICE OF ANNUAL GENERAL MEETING

Notice is hereby given that the 54th Annual General Meeting of the shareholders of The Crescent

Textile Mills Limited will be held on Saturday the January 31, 2004 at 11:00 a.m. at the Registered

Office of the Company, 40-A, Off: Zafar Ali Road, Gulberg-V, Lahore to transact the following business:-

1. To receive, consider and adopt the Audited Accounts and Consolidated Accounts of the

Company for the year ended September 30, 2003 together with the Directors' and Auditors'

Reports thereon.

2. To approve, as recommended by the Directors, the payment of cash dividend @ 10% i.e.

Rs. 1.00 per share for the year ended September 30, 2003.

3. To appoint Auditors for the year ending September 2004 and fix their remuneration.

The present Auditors M/S Riaz Ahmad and Company, Chartered Accountants retire. The

Board of Directors on recommendation of audit Committee have recommended their

reappointment after rotating the partner incharge of the Riaz .Ahmad & Company Chartered

Accountants subject to the approval by Securities and Exchange Commission of Pakistan.

By order of the Board

Ghulam Muhammad

Corporate Secretary

Registered Office:

40-A, Off: Zafar Ali Road, Gulberg-V,

Lahore. Pakistan

T + 92-42-111-245-245

F + 92-42-111-222-245

E-mail: mailho@crescentbahuman.com

Dated: 30 December 2003

Note: l. The Member's Register will remain closed from January 16, 2004 to January 31, 2004

(both days inclusive). Transfers received at the Registered Office of the Company by the

close of business on January 15, 2004 will be treated in time for the purpose of payment

of cash dividend to the transferees.

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.

4. CDC account holders will further have to follow the guidelines as laid down in circular Mo. 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 original National Identity Card (NIC) 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 signatures 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 name, address and NIC

numbers shall be mentioned on the form.

iii) Attested copies of NIC or the passport of the beneficial owners and the proxy

shall be furnished with the proxy form.

iv) The proxy shall produce his original NIC 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 signatures shall be submitted (unless it has been provided earlier)

along with proxy form to the company.

MISSION, VISION AND VALUES

Vision Statement

We, at Crescent Textile, will continue forever to excel in producing quality textile products while

maintaining our position as industry leaders in setting standards for Professional, Human and

Structural Capital.

Mission Statements

Our Mission as team of The Crescent Textile Mills Limited is to accomplish our vision through:

• Investment in new technologies for increase in production resources and consequently the

profitability of the company for the benefit of the shareholders

• Creating new and exciting textile based products

• Training and retaining of Professionals to uphold a strong and healthy organizational set up

• Retaining of traditional customer base while exploring and expanding into new markets

• Helping the community to keep the environment clean and healthy, and

• Improving the quality of life of the community.

Directors' Report to the Shareholders

The Directors of your Company feel pleasure in presenting the annual report and audited financia

statements along with auditors' report thereon for the year ended 30 September 2003.

1. Financial Results

Your Company's operations for the year resulted in post tax profit of Rupees 81.596 million

after charging Rupees. 43.030 million for current year's taxation. Earning per share after

tax is Rupees 2.01 (Rs. 4.56 last year).

The Directors recommend appropriation of profits as follows:

(Rupees in Thousand)

Profit available for appropriation

86,279

Appropriations:

Transfer to general reserve

40,000

Proposed dividend

40,669

80,669

Unappropriated profit

5,610

Your Directors recommended cash dividend at the rate of 10% which is Rs. 1.00 per share.

2. Auditors

The present auditors M/s. Riaz Ahmad and Company, Chartered Accountants retire. The

Audit Committee has recommended their reappointment after rotating the partner incharge

of the Riaz Ahmad & Company Chartered Accountants subject to the approval by Securities

and Exchange Commission of Pakistan.

3. Review of Financial Affairs and Future Prospects

The Chairman's Review provides details of the financial affairs and the future prospects of

the Company.

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 statements and accounting estimates are based on reasonable and prudent

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.

Directors' Report to the Shareholders

f) There are no significant doubts upon the Company ability to continue as going concern.

g) There has been no material departure form the best practices of Corporate Governance

as detailed in listing regulations.

h) Details of reduction in operating results of the Company compared to last year have

been explained in Chairman's review.

I) The key operating and financial data for the last six year is annexed.

j) Value of investments of provident fund was Rupees 103.706 million as on September

30, 2001 per its audited accounts,

k) Attendance at 5 meetings of the Board of Directors held during the year under review

were as under:

Name of Director

Meetings attended