GLOBE TEXTILE MILLS (OE) LTD.
Annual Reports 2003
BOARD OF DIRECTORS
	MR. AHMED HAJI HABIB
	MST. GUL BANO HAJI HABIB
	MR. M. HANIF AHMED
	MR. ARSHAD ARIF
	MR. ZEESHAN ZAFAR
	MR. PIR MOHAMMED A. KALIYA
	MR. ARIF HAJI HABIB - Chief Executive
AUDIT COMMITTEE
	MR. AHMED HAJI HABIB - Chairman
	MR. PIR MOHAMMED A. KALIYA
	MR. ARSHAD ARIF
COMPANY SECRETARY
	MR. ABDUL RAUF MOHAMMED
BANKERS
	MUSLIM COMMERCIAL BANK LIMITED
	METROPOLITAN BANK LIMITED
AUDITORS
	HYDER BHIMJI & CO.,
	Chartered Accountants
REGISTERED OFFICE
	KARACHI DOCK LABOUR BOARD BUILDING,
	4TH FLOOR, 58, WEST WHARF ROAD,
	KARACHI.
MILLS
	A/6, S.I.T.E.,
	KOTRI.
E-MAIL
	globeho@cyber.net.pk
MISSION STATEMENT OF
GLOBE TEXTILE MILLS (OE) LIMITED
To be one of the top quality manufacturers of
open - end cotton yarn of the country, ensuring
customers satisfaction using State-of-the-Art
Technology, with a view to improving share
holders' value.
VISION
Being one of the top quality manufacturers of
cotton yarn, Globe Textile Mills (OE) Limited has
the responsibility to treat all stakeholders
equitably, judiciously and transparently.
STATEMENT OF ETHICS
AND
BUSINESS PRACTICES
GTM (OE) LTD resolves to always place the Company's
interest first;
• GTM (OE) LTD resolves to excel through resource
managementnamelyf human (professional & technical both),
financial and other infrastructural facilities and to ensure
reasonable return to all the stakeholders;
GTM (OE) LTD conducts business as a responsible and
law abiding corporate member of society to achieve its
legitimate commercial objectives and supports
unconditionally the Compliance with the Best Practices of
Corporate Governance for the betterment of the corporate
culture;
GTM (OE) LTD expects from its employees full integrity,
total honesty, fair and impartial practices in all aspects of its
business;
GTM (OE) L TD resolves to adopt fair and ethical marketing
practices and to prepare itself to face the challenges of open
markets under WTO by supplying its customers quality Yarn
at competitive prices;
GTM (OE) LTD resolves not to compromise on principles.
SIX YEARS PERFORMANCE OF THE COMPANY AT A GLANCE
		1998	1999	2000	2001	2002            2003
				(Rupees in Thousand)
STATISTICAL SUMMARY
Gross sales		443,782	448,023	430,398	523,022	401,342        420,204
Profit before taxation		10,052	6,301	24,250	9,536	5,952            1,231
Taxation		4,331	4,400	10,940	2,740	992           (2,914)
Profit after taxation		5,721	1,901	13,310	6,796	4,960            4,144
Gross assets employed
(Including capital work-in-progress)		142,370	169,777	137,893	180,375	213,797        342,330
Paid-up capital		20,700	22,770	34,155	44,402	44,402          44,402
Shareholders' equity		47,783	45,586	58,896	65,692	70,652          74,796
EARNING AND PAY OUT		Rs. per share of Rs. 1 0 each
Earning per share after taxation		2.76	0.83	3.89	1.53	1.12              0.93
Break-up value		23.08	20.02	17.24	14.8	15.91             16.85
Bonus shares		10%	50%	30%	-	-
Cash dividend		5%	18%	-	-	-
FINANCIAL RATIOS
Current Assets: Current Liabilities		1.31:1	1.16:1	1.39:1	1.13:1	1.03:1            1.04:1
Long-term Debts : Equity		20:80	33:67	17:83	08:92	30:70            51:49
PRODUCTION
Cotton Yarn (000 Kgs)		5,384	5,175	5,634	5,942	5,453            5,192
Notice of Meeting
NOTICE is hereby given that the Twenty-Third Annual General Meeting of the Shareholders of Globe
Textile Mills (OE) Limited will be held on Friday, the 30th January, 2004 at 5:00 p.m. at the Registered Office of
the Company, at 4th Floor, Karachi Dock Labour Board Building, 58, West Wharf Road, Karachi,to transactthe
following business:
1.     To confirm the minutes of the Twenty-Second Annual General Meeting held on 22nd March,2003.
2.     To receive, consider and adopt the Audited Accounts of the Company together with Directors'
and Auditors' Reports for the year ended 30th September, 2003.
3.     To appoint Auditors and fix their remuneration for the year ending September 30,2004. Present
auditors of the Company M/s. Hyder Bhimji & Co., Chartered Accountants, retire and do not offer
themselves for re-appointment in view of rotation requirements of Code of Corporate Governance
being part of listing regulations of Karachi Stock Exchang. The Audit Committee has recommended
M/s- Gardezi & Co. Chartered Accountants for appointment in place of   retiring auditors for
consideration in the Annual General Meeting.
4.     To transact any other business with the permission of the Chair.
By orderofthe Board
Karachi: January 02, 2004                                                                                  (ABDUL RAUF MOHAMMED)
Company Secretary
NOTES:
1.      The Shares Transfer Book of the Company will remain closed from Friday, 23rd January 2004 to
Friday, 30th January 2004 (both days inclusive).
2.      A member of the Company entitled to attend and to vote at this meeting may appoint any other
member as his/her proxy to attend, speak and vote atthe meeting on his/her behalf. Instruments
appointing proxies, in order to be effective, must be received at the Registered Office of the
Company, at 4th Floor, Karachi Dock Labour Board Building, 58-West Wharf Road, Karachi, duly
stamped, signed and witnessed not less than 48 hours before the time of holding the meeting.
3.      Shareholders are requested to communicate immediately to the company any change in their
addresses.
AUDITORS' REPORT TO THE MEMBERS
We have audited the annexed Balance Sheet of GLOBE TEXTILE MILLS (OE) LIMITED, as at September
30,2003 and the related Profit and Loss Account, Cash Flow Statement and Statement of Changes in Equity,
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 purpose of
our audit.
It is the responsibility of the Company's management to establish and maintain a system of internal
control and prepare and present the above said statements in confirmity with the approved accounting
standards and the requirements of the Companies Ordinance, 1984. Our responsibility is to express an opinion
on these statements based on our audit.
We conducted ourauditinaccordancewith the auditing standardsasapplicable in Pakistan.These standards
require thatwe plan and perform the auditto obtain reasonable assurance aboutwhetherthe above said statements
arefree of any material misstatement. 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 bythe Company as required by the Companies
Ordinance,1984.
(b)    inouropinion,
(i) theBalanceSheetand Profitand LossAccounttogetherwith the notesthereon have been drawn
up in conformity with the Companies Ordinance, I984 and are in agreement with the Books of
Account and are further in accordance with accounting policies consistently applied;
(ii)    the expenditure incurred duringtheyearwasforthe purpose of the Company's business; and
(iii) the business conducted, investments made and the expenditure incurred during the year were 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 & Loss Account, Cash Flow Statement and the Statement of Changes in
Equity together with the notesformingpartthereof conform with approved accounting standards
as applicable in Pakistan, and give the information required bythe Company Ordinance 1984 in the
manner so required and respectively give a true and fair view of the state of the Company's affairs
as at September 30,2003 and of the Profit, its Cash Flow and Changes in Equity for the year
then ended; and
(d)    inouropinion, no Zakat was deductible at source, undertheZakat&Ushr Ordinance, 1980 (XVIII
of 1980).
HYDERBHIMJI&CO.,
Chartered Accountants
Karachi: January 02,2004
Directors' Report
Your Directors have pleasure in presenting Twenty-Third Annual Report alongwith the Audited
Accounts of the Company for the year ended 30th September, 2003
BOARD OF DIRECTORS
In the last Annual General Meeting, elections for the Directors were held and the following directors
were elected for a period of three years with effect from 22nd March, 2003.
Mr. Ahmed Haji Habib
Mr.ArifHajiHabib
Mst. Gul BanoHaji Habib
Mr. Muhammad Hanif Ahmed
Mr. Arshad Arif
Mr. Pir Mohammad A. Kaliya
Mr. ZeeshanZafar
FINANCIAL RESULTS:
The operating profitforthe year under review was Rs. 9.188 million as against Rs. 15.821 million in
the lastyear. Decrease in the profitability of the company has been attributed on a numbers of following
reasons:-
-  Cost of local raw material increased considerably.
-  Increase in the cost of imported cotton
-  Cost of fuel and power increased
-  Selling price decreased.
The net profit after taxation was Rs. 4.144 million as against Rs. 4.960 million in the proceeding year.
The production of yarn of various counts decreased from 5.543 million kgs in the preceeding year
to 5.192 million kg in the year under review. Decrease in yarn production was due to production of higher
counts this year as against last year.
APPROPRIATION
				(Rupees)
Profit after taxation				4,144,121
Add: Un-appropriated Profit brought forward				1,250,509
Amount available for appropriations				5,394,630
Unappropriated Profit to be carried forward				5,394,630
FUTURE OUTLOOK
The prices of cotton for open end units in the first quarter ranged from Rs. 2,600 per maund to Rs. 3,500
permaund depending upon the quality of cotton. The prices of yarn, though increased, on a minor scale, do
not offset increase in the cost of raw material. The cost of other inputs has alos increased.
However, your directors are striving their best to increase the yarn production and contain the cost.
GLOBE TEXTILE MILLS (OE) LTD.
BREAK-UP VALUE OF THE SHARE
The break-up value of your shares as on September 30, 2003 was Rs. 16.85 as compared to Rs. 15.91
of last year.
EARNING PER SHARE
The earning per share, after providing for taxation, was Re. 0.93 for the year under review as against
Rs. 1.12 in the last year.
CORPORATE GOVERNANCE
Statement of Corporate and Financial Reporting Framework
*    The financial statements, prepared by the management of the Company, present fairly its state of
affairs, the result of its operations, cash flows and changes in equity.
*    Proper books of account of the Company have been maintained.
*    Appropriate accounting polices have been consistently applied in preparation of the financial
statements and accounting estimates are based on reasonable and prudent judgement.
*    International Accounting Standards, as applicable in Pakistan, have been followed in preparation
of financial statements.
*    The system of internal control is sound in design and has been effectively implemented
andmonitored.
*    There are no significant doubts upon the Company's ability to continues as a going concern.
*    There has been no material departure from the best practices of corporate governance, as detailed
in th