Notes To Accounts

DIRECTORS’ REPORT TO THE SHAREHOLDERS

Your Board of Directors is pleased to present un-audited accounts for the 1^st quarter ended September 30, 2007

The operations have resulted in a loss before taxation of Rs. (4.161) million as compared to Rs. 5.583 million in corresponding period of last year. This is mainly due to recent increase in prices of raw cotton up to Rs. 3400/md in average, while yarn prices did not increase proportionately.

Sales slightly decreased during the period as compared to corresponding period whereas cost of sales has increased by 8.29 % in the same period.

There is no material change in position of on going litigation and other matters related to court as reported in the Directors’ report to the shareholders for the year ended June 30, 2007.

Earning per share (Basic) for the quarter under review is Rs. 0.38 negative in comparison to Rs. 0.40 positive in the corresponding period of last year.

Transactions with related parties are carried out at arms length. The prices are determined in accordance with comparable uncontrolled price method.

We would like to express our appreciation for the dedication and hard work put in by the entire team at J A Textile Mills Ltd and all its partners within the country and all across the world.

For and on behalf of the Board.

Chief Executive Officer                                                                           Faisalabad

Imran Zahid                                                                                              29-10-2007