NINA INDUSTRIES LIMITED
Annual Reports 2003
CONTENTS
MISSION STATEMENT
COMPANY INFORMATION
NOTICE OF ANNUAL GENERAL MEETING
CHAIRMANS' REVIEW
DIRECTORS' REPORT TO THE SHAREHOLDERS
STATEMENT OF COMPLIANCE OF CODE OF
CORPORATE GOVERNANCE
AUDITORS' REPORT TO THE MEMBERS
PATTERN OF SHAREHOLDING
FINANCIAL HIGHLIGHTS
BALANCE SHEET
PROFIT AND LOSS ACCOUNT
CASH FLOW STATEMENT
STATMENT OF CHANGES IN EQUITY
NOTES TO THE ACCOUNTS
Mission  Statement
Our mission is commercial success
with social and environmental responsibility
and to be a responsible corporate citizen
of the world.
COMPANY INFORMATION
BOARD OF DIRECTORS
Mr. Saeed A. Sattar			Chairman
Mr. Waqar A. Sattar			Chief Executive
Mr. Urooj Saeed			Director
Mr. Kashif Saeed Sattar			Director
Mr. Yasir Waqar			Director
Mrs. Saeeda Saeed			Director
Mr. Karim Hatim			Director (Nominee of National Bank of Pakistan)
Mr. M. Talib Ali			Director (Nominee of State Life Insurance Coporation)
COMPANY SECRETARY
Mr. Mehtab Saeed
AUDIT COMMITTEE
Mr. Saeed A. Sattar			Chairman
Mr. Kashif Saeed Sattar			Member
Mr. Yasir Waqar			Member
AUDITORS
Muniff Ziauddin & Co.
Chartered Accountants
BANKERS
Habib Bank Ltd.
Bank Al-Habib Ltd.
Habib Bank A.G. Zurich
Union Bank Ltd.
United Bank Ltd.
Askari Commercial Bank Ltd.
PICIC Commercial Bank Ltd.
Saudi Pak Commercial Bank Ltd.
LEGAL ADVISER
M/s. Nafees Siddiqui Law Associates,
205, Clifton Centre, Clifton, Karachi.
MILLS & REGISTERED OFFICE
A-29/A, S.I.T.E., Manghopir Road, Karachi
Tel : 2575043-46, 2575571-73
Fax : 2562315-2562319
SHARES OFFICE
M/s. Uni Corporate & Financial Services
West land Trade Centre, Opposite flyover			,
Shaheed-e-Millat Road, Karachi.
Tel : 4313205-6
Fax : 4313207
NOTICE OF 11TH ANNUAL GENERAL MEETING
Notice is hereby given that the llth Annual General Meeting of the Shareholders of Nina Industries Limited
will be held on Thursday, October 30, 2003 at 3.00 p.m. at Beach Luxury Hotel, Karachi to transact the
following business:
ORDINARY BUSINESS
1.    To confirm the minutes of 10th Annual General Meeting held on November 11, 2002.
2.    To receive, consider and adopt the Audited Accounts of the Company, for the year ended June 30, 2003
together with the Directors' and Auditors' report thereon.
3.    To appoint the Auditors for the year 2003-2004 and fix their remuneration. Existing auditors M/s Muniff
Ziauddin & Co. Chartered Accountants have retired. As Required by paragraph xxxix of the Code of
Corporate Governance and based on the recommendation of the Audit Committee the Board of Directors
has recommended the appointment of M/s Khalid Majid Rahman Sarfaraz Rahim Iqbal Rafiq Chartered
Accountants in place of retiring auditors.
4.    To transact any other business with the permission of the Chair.
BY ORDER OF THE BOARD
Karachi:- October 7, 2003.
(Mehtab Saeed)
Company Secretary
Notes:
1.    The Shares Transfer books of the Company will remain closed from October 17, 2003 to October 30,
2003 (both days inclusive).
2.    A member entitled to attend and vote at this General Meeting is entitled to appoint another member as
his / her proxy to attend and vote on his / her behalf.
3.    The Instrument Appointing a proxy and the power of attorney or other authority under which it is signed
or a notarially attested copy of the power of attorney must be deposited at the Registered Office of the
Company at least 48 hours before time of meeting.
4.    Members are requested to notify any change in their addresses immediately.
CHAIRMAN'S REVIEW
The year 2002-2003 under review for stakeholders in the company, I am pleased to inform
you that the company as per commitment has been able to surpass the targeted sales figure
of Pak Rs. 1.6bn by an amount of Pak Rs. 116,436,013. It is a happy note to achieve a
sales figure of Pak Rs. 1,716,436,013.00. In spite of this achievement, company has failed
to register substantial profit as compared with its sales growth.
It is pertinent to point out that the company felt that by achieving sales of Rs. 1.7bn along
with the additional capacities of BMR of about 500m which by the grace of God completed
but it had its own draw backs as some of the suppliers delayed the machine and most of the
engineers delayed their arrivals due to internal situation of the country. Hence, the committed
sales were sent outside processing units at a heavy cost. Plus the US$ rate came down
considerably affecting overall profitability of the company.
In any event the company is now fully geared up to meet all challenges world wide. Here I
must point out that WTO talks in Cancun have presently failed between the Governments
and we sincerely hope that a positive outcome will emerge with the support of the world
community.
We expect this impasse shall resolve between the Governments and our sales shall continue
to grow with profits.
(Saeed A. Sattar)
Chairman
Karachi :- October 7, 2003.
DIRECTORS' REPORT
The Directors feel pleasure in presenting the financial results of the Company for the year ended June 30,
2003
OVERVIEW:
Your management during the concluded fiscal year largely engaged in BMR activities and consolidation of its
export market to book new customers and export orders especially in USA and EU markets. The efforts of the
management and the entire team resulted in surpassing sales & export sales targets though but profitability
results have not been achieved as expected due to many reasons which largely remained beyond the company's
control.
Despite achieving below the expected profitability margins, the efforts of the management despite working
under tremendous pressure are commendable by looking at the export sales figure alone which has increased
from Pak Rs. 1,009,313,710.00 to Pak Rs. 1,627,492,144.00 during the ensuing year. A jump of 61.25%
during the current year as compared to last year's corresponding figure of 33.99%.
International market remained completely buyers' dominant market during the ensuing year that has forced
the company to operate on thin profitability margins. On the other hand, your management continued to face
the blur of abnormal high cost of inputs and other indigenous raw materials including utilities charges. All these
factors coupled with others including payment of air freight charges have deprived the company to further
increase its bottom line revenue figure.
Overall, the position during the year remained depressed but your management has been able to achieved
satisfactory results.
ACCOUNTS:					Rupees
Net profit before taxation					8,037,083
Less: Provision for taxation					14,477,054
Profit (Loss) after taxation					-6,439,971
Add:  Un-appropriated profit brought forward					120,711,570
Add: Transfer from surplus on revaluation of fixed assets					52,294,023
Profit available for appropriation					166,565,622
Less: Proposed cash dividend					NIL
Un-appropriated profit carried forward					166,565,622
COMPANY'S PERFORMANCE AT A GLANCE:
During this year, over all sales has been increased by 49.76% as compared to corresponding last year figure of
28.44%. Out of total sales, export sales alone have been increased drastically by 61.25% as compared to
corresponding last year figure of 33.99%. During the current year, contribution of export sales in the overall
company's sales figure has been marvelous that consititute around 94.818% as compared to corresponding
last year figure of 88.063%.
COGS figure have been increased due to various factors including increase in cost of raw materials procured
from local as well from international market, increase in utilities and other tariff charges etc. This also includes
high cost of processing charges paid to various out side processing units for their various services acquired by
the Company during BMR. During the year 2002-2003, the financial charges have been increased by 6.80%
as compared to corresponding last year figure of 16.99%. The profitability margins during the current year
remained under pressure due to above factors and could not manage to improve its bottom line revenue figure.
BMR ACTIVITIES:
During the ensuing year, the management of your company largely & dedicatedly engaged in the BMR activities
to ensure availability of additional production capacities in hand to meet large export commitments. The
management of your company had to face many un-foreseen & un-thinkable challenges while executing BMR
strategy. On top of it; refusal of Erecters' to visit Pakistan for security reason further delayed timely commissioning
of various machines.
Despite above and other factors did not stopped your management and with the Grace of Allah, all machines
have now been taken into production while writing this report excluding gas generator which is under full swing
of installation and hopefully it will commisson very soon. For gas generator, M/s. Sui Southern Gas Company
Ltd. is already in process of laying down additional gas supply line and work is still going on and hopefully the
generator shall also be available for smooth supplies of desired power at low cost.
FUTURE OUTLOOK:
The management of your company is fully geared up to meet future demands of its buyers' and compliance
with regulations of individual importing countries that will be implemented in near future in the light of WTO
regime dictated terms. Your company has sufficient production capacities in hand and professional & very high
skilled man power inventory-to face any challenges that will come across once post non-quota arena starts.
The situation of textile industry in general and your company in particular is very bright in view of availability of
complete in house door-to-door production & finishing capacities. However, threat from China and other
emerging exporting countries shall remain hovering on the heads of Pakistani Bed linen exporting companies.
The outcome of on going anti-dumping duties proceedings against Pakistani Bed Linen industry shall also
remain a matter of grave concern and its impact on the overall economy of the country in general.
BOARD OF DIRECTORS;
There has been no change in the pattern of Board of Directors.
STATEMENT OF COMPLIANCE WITH CODE OF CORPORATE GOVERNANCE:
The management of your company has always tried to follow & comply with the regulations being received
from various regulatory authorities from time to time in later & spirit and following with this professional &
business ethics, the management of your Company is pleased to inform you that as per directives of SECP,
necessary steps have taken to ensure compliance with the provision of the Code of Corporate Governance.
The Accounts for the year ended June 30, 2003 have been prepared and are presented in accordance
with Companies Ordinance, 1984.
The Company has maintained proper books of accounts as required by the law.
The Accounting Policies and disclosures are in accordance with the International Accounting Standards
applicable in Pakistan.
There are no significant doubts upon the Company's ability to continue as a going concern.
The Company has paid all taxes, duties and there are no unpaid disputed balances.
There has been no material deviation in observing the code of corporate governance.
During the year, 7 meetings of the BODs of the Company held. Attendance by each director is as
follows:
Name of Director				No. of Meetinqs Attended
Mr. Saeed A. Sattar				6
Mr. Waqar A. Sattar				7
Mr.  Urooj Saeed				5
Mr.  Kashif Sattar				2
Mr. Yasir Waqar				7
Mrs. Saeeda Saeed				4
Mr.  M. Talib Ali (Nominee-State Life)				4
Mr.  Karim Hatim (Nominee-NBP)				2
Mr. Ansar Hussain (Out going Director-State life)				1
Leave of absence was granted to Directors who could not attend some of the Board meetings. All
meetings of board are presided over by the Chairman.
In the present Board of Directors, only 3 are executive Directors.
Directors of the Company are not serving as a Director of 10 other listed Companies; they have filed a
declaration to this.
Directors are borne on the register of National Tax Payers.
Directors of the Company have not been convicted by a court of competent jurisdiction as a defaulter in
payment of any loan to Banking Company, a Development Financial Institution or a Non-Banking
Financial Innstitution or he/she, being a member of a Stock Exchange has not been declared as a
defaulter by such Stock Exchange.
None of the Directors of the Company or their spouse are engaged in the business of stock brokerage.
Mr. Saeed A. Sattar-Director and Mr. Waqar A. Sattar-Director have purchased 430,500 shares each of
Nina Industries Limited. Mrs. Saeeda A. Saeed, Mr. Yasir Waqar and Mr. Kashif Saeed Sattar-Directors
have purchased 3,850 shares, 2,000 shares and 1,500 shares respectively of Nina Industries Limited.