Notes To Accounts

DIRECTORS’ REPORT TO THE SHAREHOLDERS

Your Board of Directors is pleased to present un-audited accounts for the 1st quarter ended September 30, 2008

The operations have resulted in a loss before taxation of Rs. (1.859) million as compared to Rs. (4.161) million in corresponding period of last year. This is mainly due to recent increase in prices of raw material and increase in the minimum salaries and wages of unskilled workers from Rs. 4,600/- to Rs. 6,000/- per month.

Sales slightly decreased during the period as compared to corresponding period whereas cost of sales has increased by 26.94% 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, 2008.

Earning per share (Basic) for the quarter under review is Rs. 0.15 negative in comparison to Rs. 0.38 negative 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.

Imran Zahid                                                                                                         Faisalabad
Chief Executive Officer                                                                                       October 29, 2008