Auditor's Report To The Members

AUDITORS’ REPORT TO THE MEMBERS

We have audited the annexed balance of ASIM TEXTILE MILLS LIMITED as at September 30, 2002 and the related profit and loss account, statements of changes in equity and cash flow statement 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 conformity with the approved accounting standards and the requirement of the Companies Ordinance, 1984.Our responsibility is to express an opinion on these statements based on our audit.

We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These standards require that we plan an perform the audit to obtain reasonable assurance about whether the above said statements are free of 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 by the company as required by the Company Ordinance, 1984;

(b) In our opinion

(i) The balance sheet and profit and loss account together with the notes thereon have been drawn up in conformity with the Companies Ordinance, 1984 and are in agreement with the books of account and are further in accordance with accounting policies consistently applied.

(ii) The expenditure incurred during the year was for the purpose of the Company’s business; and

(iii) The business conducted, investment 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 explanation given to us, the balance sheet, profit and loss account, statement of changes in equity and cash flow statement together with the notes forming part thereof conform with approved counting standards as applicable in Pakistan, and , give the information required by the Companies Ordinance, 1984, in the manner so required and respectively give a true and fair view of the state of the Company’s affair as at September 30,2002 and of the profit, its changes in equity and cash flow for the year then ended; and

(d) In our opinion, no Zakat was deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980).

Dated: 30.01.2003 M.YOUSUF ADIL SALEEM & CO.

Faisalabad. Chartered Accountants

Asim Textile Mills Ltd.

16 C, Peoples Colony

Faisalabad 38090, PAKISTAN

Tel: 92-41-721953-6

Fax: 92-41-712399

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