Notes To The Financial Statement

NOTES TO THE FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED MARCH 31, 2003

1. The Company is limited by shares incorporated in Pakistan under the companies ordinance, 1984 and listed

on Stock Exchanges in Pakistan. The principal business of the Company is manufacture and sale of yarn. The

mills is located at Tehsil Jaranwala, District Faisalabad, in the Province of Punjab.

2. These financial statements have been prepared under "historical cost convention" except that certain fixed

assets have been included at valuation. These financial statements are prepared in compliance with the

international Accounting Standard (IAS) 34 interim Financial Reporting and section 245 of the Companies

Ordinance, 1984.

3. The accounting policies and methods of computation followed in the preparation of the half yearly financial

statements are the same as those of the published annual financial statements for the year ended September

30, 2002 except that the incremental depreciation on revalued assets has been transferred from surplus on

revaluation of fixed assets to accumulated loss through statement of changes in equity as per Notification No

S.R.O. 45(1) 2003 of Securities and Exchange Commission of Pakistan.

4. These financial statements are un-audited. However, a limited scope review of these interim financial

statements has been performed by the external auditors of the company in accordance with the requirements

of clause (xxi) of the code of Corporate Governance and they have issued their review report there on.

5. There is no unusual item included in these financial statements which is affecting assets, equity, loss or cash

flow of the company except that incremental depreciation arising out of revalued assets has been transferred

from surplus on revaluation of fixed assets to accumulated loss through statement of changes in equity and

deferred tax liability on surplus on revaluation of fixed assets have been provided in these financial statements.

March 31, 2003 September 30, 2002

Rupees Rupees

6. SURPLUS ON REVALUATION OF FIXED ASSETS

Opening balance 126,661,282 126,661,282

Incremental depreciation on revalued assets relating to

previous period transferred to accumulated loss 30,739,256 --

Un-depreciation portion of surplus on revaluation of

fixed assets as at October 01, 2002 95,922,026 --

Deferred tax liability as at October 01, 2002 30,179,415 --

Surplus on revaluation of fixed assets at

October 01, 2002 - net of deferred tax 65,742,611 --

Incremental depreciation arising out of revaluation

of fixed assets for the period transferred 2,315,767 --

to accumulated loss

63,426,844 126,661,282

7. CONTINGENCY

Tax demand not acknowledged due

to pending legal appeal. 1,708,686

Quarter Half year Quarter Half year

Jan-Mar 03 Oct 02-Mar 03 Jan-Mar 02 Oct 01-Mar 02

Rupees Rupees Rupees Rupees

8. Cost of goods sold

Cost of goods manufactured (8,1) 92,713,011 169,549,222 68,389,601 143,474,338

Yarn Purchases -- 623,500 11,079,815 11,079,815

Finished good

Opening Stock

Closing Stock

(2,340,884) (423,342) 4,052,133 11,332,470

90,372,127 169,749,380 83,521,549 165,886,623

8.1 Cost of goods manufactured

Raw material (8.1.1) 69,684,147 124,657,434 50,394,596 103,769,234

Stores and spares 954,024 1,877,776 397,729 1,017,648

Packing material 1,145,995 1,892,813 1,226,661 2,852,899

Salaries and wages 5,487,310 10,846,589 2,300,677 6,873,319

Retirement benefits 107,000 582,000 210,000 425,000

Fuel and power 10,654,570 21,138,952 9,166,765 18,445,066

Repair and maintenance 44,535 128,763 415,516 57,169

Postage and telecommunication 24,433 51,230 31,173 70,978

Vehicle running and maintenance 60,578 124,295 57,199 93,126

Insurance 399,817 664,319 342,959 685,918

Depreciation 4,510,895 8,110,895 3,802,936 7,941,880

Other 148,790 214,426 223,349 725,322

93,222,094 170,289,492 68,569,560 142,957,559

Work in process stock

Opening stock 2,080,203 1,849,016 2,23,848 2,820,586

Closing stock (2,589,286) (2,589,286) 2,303,807) (2,303,807)

(509,083) (740,270) (179,959) 516,779 92,713,011 169,549,222 68,389,601 143,474,338

8.1.1 Raw material

Opening stock 22,101,692 11,376,572 22,101,692 4,273,346

Purchases including

Purchases expenses-net 116,128,595 181,827,002 37,993,536 109,196,520

138,230,287 193,203,574 60,095,228 113,469,866

Closing stock (68,546,140) (68,546,140) (9,700,632) (9,700,632)

69,684,147 124,657,434 50,394,596 103,769,234

March 31, 2003 March 31, 2002

Rupees Rupees

9. AGGREGATE TRANSACTIONS

WITH ASSOCIATED

UNDERTAKINGS

Purchases 1,139,789 1,291,045

Energy purchases 23,440,057 20,478,712

10. DATE OF AUTHORIZATION

These financial statements were authorized for issue on by the board of directors

of the company.

11. FIGURES

-have been rounded off to the nearest Rupee.

-of prior year have been rearranged and regrouped wherever necessary for the purpose of comparison.

CHIEF EXECUTIVE DIRECTOR

J.A. Textile Mills Ltd.

16 C, People's Colony

Faisalabad 38090, PAKISTAN

Tel: 92-41-721953-6

Fax: 92-41-712399

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