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Data Textiles Limited 
Annual Reports 2003
CONTENTS
Company Information
Notice Of Annual General Meeting
Director's Report Including Corporate Governance
Key Operating & Financial Data
Statement Of Ethics& Business Practices
Auditor's Compliance Review Report
Auditor's Report
Balance Sheet
Profit And Loss Account
Cash Flow Statement
Statement Of Changes In Equity
Notes To The Accounts
Pattern Of Share Holding
COMPANY INFORMATION
Chief Executive Mr. Faaiz Rahim Khan
Directors Mr. Nadeem Zar
Mr. Misbah-ul-Hassan Siddiqui
Mr. Umar Sadik
Mr. Asif Rahim Khan
Mr. Shamim Ahmad Khan
Mr. Muhammad Ayub Khan
Company Secretary: Mr.Usman Khalil
Audit Committee: Mr.Faaiz Rahim Khan (Chairman)
Mr.Misbah-ul-Hassan Siddiqui (Member)
Mr.Muhammad Ayub Khan (Member)
Auditors M /s. Mansha Mohsin Dossani Khan & Co.
Chartered Accountants
3rd Floor, Shahrjah Centre,
62-Shadman Market, Lahore
Bankers Prime Commercial Bank Limited
Al-baraka Islamic Bank B.S.C.(E.C)
National Bank Of Pakistan
PICIC Commercial Bank Limited
Legal Advisor Ashtar Ali & Associates
Registered Office 3-A, Race View, Jail Road, Lahore
Mills 56-Kilometer, Multan Road,
Bhai Pheru, Distt. Kasur.
Notice is hereby given that the 16th Annual General Meeting of the Shareholders of Data
Textiles Limited will be held on Saturday, January 31, 2004 at 11:00 a.m. at the registered
office of the Company, 3-A, Race View, Jail Road, Lahore to transact the following
business.
1.    To confirm the minutes of the Annual General Meeting of the Shareholders 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 Director's and Auditor's Reports thereon.
3.   To elect Seven Directors in accordance with the provisions of section 178 of the
Companies Ordinance, 1984. The Directors have fixed the number of Directors to be
elected at seven.
The Following are the retiring Directors.
1-   Mr. Faaiz Rahim Khan 2-   Mr. Shamim Ahmad Khan
3-   Mr. Asif Rahim Khan 4-   Mr. UmarSadik
5-   Mr. Nadeem Zar 6-   Mr. Misbah-ul-Hassan Siddiqui
7-   Mr. M.Ayub Khan
To appoint Auditors of the Company for the year ending September 30, 2004 and
to fix their remuneration. The retiring Auditors, M/s. Mansha Mohsin Dossani
Khan & Co., Chartered Accountants being eligible have offered themselves for
Re-appointment.
5.    To transact any other business of the Company with the permission of the Chair.
BY ORDER OF THE BOARD
Lahore                                                                                              (USMAN KHALIL)
January 04, 2004                                                                       COMPANY SECRETARY
NOTES:
a)    The share transfer books of the company will remain closed from 31-01-2004 to
07-02-2004, (Both days inclusive).
b)    A member entitled to attend and vote at the meeting may appoint another
member as his/her proxy to attend and vote. Votes may be given personally   or   by
proxy or by attorney or in case of a corporation by representative. Proxies, in order to
be effective, must be received at the Registered Office of the Company duly
stamped, signed and witnessed at least 48 hours before the time of Meeting.
On behalf of the Board of Directors of Data Textiles Limited, I am pleased to present the
Audited Financial Accounts along with the auditor's report for the year ending September
302,003.00
PRODUCTION PERFORMANCE:
Type of Yarn Produced Production Production
2003 2002
Kgs. Kgs.
Cotton Yarn 2,929,303 2,441,457
Cotton Yarn Converted into 20/1 Count 2,548,726 2,102,295
As you are well aware our business is heavily dependent on the supply of good quality
cotton. The early season problems of low quality and high trash were less than in the
previous year. The yarn market of fine as well as of coarse counts was also on the
comparatively high side. We took full advantage of this and have increased our production.
FINANCIAL RESULTS:
The summary of the financial results is being furnished hereunder for a quick glance.
2003 2002
(Rs. In millions) (Rs. In millions)
Sale 275.551 211.301
Gross Profit/ (Loss) 3.208 -1.903
Profit / (Loss) after Tax 123.296 -25.907
Earning per Share 12.44 -2.61
The year under review was a better year in terms of the performance of the company. The
sales for the year have gone up by 30% and the company has earned a gross profit of Rs.
3.208 million as compared to the gross loss of Rs. 1.903 million incurred in the previous year.
The company continues to produce good quality cotton yarn for weaving and has managed
to keep its production and spin-plan in line with the market requirements. Cotton purchasing
has also been done more effectively which has translated into handsome cost savings for
the company without compromising on quality or yield in production. As always, the
administrative costs and the operational overheads have been kept in check. During the
year the management relied on its own resources as well as on the market credits to meet
the working capital requirements, which resulted in savings of Rs. 11 million in shape of
reduction in financial costs.
CODE OF CORPORATE GOVERNANCE
The Board has adopted the Code of Corporate Governance, which is required by the listing regulations
of the Stock Exchanges as directed by the Securities & Exchange Commission of Pakistan. As required
by the Code, it is stated that:
1.   The financial statements prepared by the management present fairly the company's state of
affairs, the result of its operations, cash flows and changes in equity.
2.   Proper books of accounts have been maintained.
3.   Appropriate accounting policies have been consistently applied in preparation of financial
statements.
4.    International Accounting Standards, as applicable in Pakistan have been followed in
preparation of financial statements.
5.   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
reviewed.
6.   The company has followed the best practices of Corporate Governance, as detailed in the
listing regulations wherever possible.
7.   An Audit Committee has been formed consisting of one executive and two non- executive
directors. (1) Mr. Faaiz Rahim Khan (2) Mr. Misbah-ul-Hassan Siddiqui (3) Mr. Muhammad
Ayub Khan.
8.    Key operating and financial data of last six years is annexed.
9.    During the year Six board meetings were held. Attendance by each director is as follows:
Name of Director Number of Board Leave Granted
Meetings Attended
Mr. Faaiz Rahim Khan 6 -
Mr. UmarSadik 5 1
Mr. Asif Rahim Khan 3 3
Mr. Nadeem Zar 4 2
Mr. Misbah-ul-Hassan Siddiqui 2 4
Mr. Shamim Ahmad Khan 2 4
Mr. Muhammad Ayub Khan 6 -
10. The Company has not declared any dividend due to operational losses.
FUTURE PROSPECTS
Being a cotton textile spinning unit, the company's future prospects are dependent on the cotton crop
and its performance in the season. If the crop is healthy and abundant, the prices shall remain at an
affordable level and the performance shall be healthy. Your company is now poised to post profits and
God Willing distribute dividends in due course of time.
To compete global challenges like W.T.O and to counter the increasing overhead costs and to meet the
growing needs of local as well as international market the management has decide to increase and
enhance the production capacity. We are trying to arrange a long term loan from a bank and
management participation in the form of Director's loan to modernize and replace the existing
machinery. This BMR will ensure the competitiveness of your company in the future.
AUDITORS
The present Auditors Messrs.  Mansha Mohsin  Dossani  Khan & Company,  Chartered
Accountants, retired and being eligible, offer themselves for reappointment
PATTERN OF SHAREHOLDING
Astatement showing pattern of Shareholding in the company is attached.
ACKNOWLEDGMENT
The team spirit and the focus on the common interests of the affairs of the company can be
observed unequivocally at Data Textiles. The management and the workers including doffers,
jobbers, foremen, engineers, accountants, administrative personnel, middle managers and
the departmental heads need to be recognized for their excellent performance
KEY OPERATING AND FINANCIAL DATA FOR THE LAST SIX YEARS
BALANCE SHEET
CAPITAL & LIABILITIES 2003 2002 2001 2000 1999 1998
Share Capital & Reserves Rupees Rupees Rupees Rupees Rupees Rupees
Authorised Capital
12,000,000 ordinary shares of Rs.10 each 120,000,000 120,000,000 120,000,000 120,000,000 120,000,000 120,000,000
Issued, Subscribed and Paid up Capital
9,909,616 Ordinary Shares of Rs. 10 each
fully paid in cash 99,096,160 99,096,160 99,096,160 99,096,160 99,096,160 99,096,160
Accumulated profit/(loss) -21,938,496 -145,234,877 -119,327,007 -82,958,070 -97,142,619 -84,048,600
77,157,664 -46,138,717 -20,230,847 16,138,090 1,953,541 15,047,560
Redeemable Capital 9,979,506 14,820,433 14,254,570 24,944,368 31,352,456 38,968,273
Long Term Loans 800,000 33,405,132 44,813,982 47,428,132 33,759,096 11,600,000
Deferred Liabilities 53,266,754 4,446,272 4,297,824 3,280,230 2,394,231 2,339,031
Current Liabilities 55,192,138 97,815,849 115,306,315 50,703,282 62,300,704 53,075,381
Short term running finance 8,810,056 16,583,616 51,065,531 16,083,016 14,764,385 13,867,331
Current portion of 
Redeemable capital 8,153,884 9,434,020 10,356,464 3,689,796 22,517,347 20,106,224
Long term loans - 17,999,618 10,247,918 2,496,218 2,596,854 -
Creditors, accrued and other liabilities 33,020,239 48,660,356 38,243,055 22,474,015 19,601,222 13,947,196
Provision for taxation 5,207,959 5,138,239 5,393.35 5,960,237 2,820,896 5,154,630'
196,396,062 104,348,969 158,441,844 142,494,102 131,760,028 121,030,245
FIXED CAPITAL EXPENDITURES
Operating fixed assets-tangible 58,848,845 67,945,977 75,141,540 82,208,178 88,636,980 97,761,434
Long Term Deposits And
Deferred Costs 213,560 213,560 213,560 213,560 213,560 2,893,090
Deferred Tax 90,847,355 - - - - -
Current Assets 46,486,302 36,189,432 83,086,744 60,072,364 42,909,488 20,375,721
Stores, spares and loose tools 4,570,026 2,563,446 2,683,518 3,170,616 8,040,332 1 ,737,344
Stock in trade 19,410,449 20,201,338 51,031,498 14,626,703 19,070,628 12,710,661
Trade debts 10,579,405 6,426,053 19,898,701 19,965,043 4,590,769 1,902,063
Advances, Deposits. Prepayments & other receivables 10,314,018 5,549,127 7,503,984 6,227,948 849,514 2,897,878
Cash and bank balances 1,612,404 1,449,468 1,969,043 16,082,054 10,358,245 1,127,775
196,396,062 104,348,969 158,441,844 142,494,102 131,760,028 121,030,245
PROFIT AND LOSS ACCOUNT
2003 2002 2001 2000 1999 1998
Rupees Rupees Rupees Rupees Rupees Rupees
Sales 275,551,217 211,301,317 261,607,198 284,013,023 152,781,285 195,848,222
Cost of Sales 272,343,131 213,204,909 261,172,732 225,343,132 160,257,891