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DIRECTOR'S REPORT TO THE SHAREHOLDERS

ASIM TEXTILE MILLS LTD.

DIRECTORS’ REPORT TO THE SHAREHOLDERS

Your directors are pleased to present unaudited  accounts for the first quarter ended on December 31,   2004.  

Company has incurred a gross loss of Rs.5.523 million and net loss of Rs. 13.751 million as compared to gross profit of Rs. 5.542 million and net loss of Rs. 4.071 million  of corresponding quarter of last year. 

It is mainly due to huge increase in prices of polyester staple fibre (PSF) and depressed selling prices. 

Now conditions are improving. Prices of PSF are going down and management expects improvement in results in future. 

Earning per share (EPS) for this quarter is in negative at Rs. 0.91 as compared to negative EPS of Rs. 0.27 in the corresponding quarter of last year.

 There has been no significant change in the position of on going court cases with the bank, as reported in the director’s report of the financial statements for the year ended 30.09.2004.

 Transactions with related parties are carried out at arms length. The prices are determined in accordance with comparable un-controlled price method. The power is purchased from related parties at WAPDA power tariff.

 As CBR has directed a change in the close of accounting year of ‘Cotton textile units’ from September to June vide its SRO 684(1)/2004 dated 10.08.2004, so the current financial year will be closed for nine months ended on 30.06.2005.

 The management would like to place on record its appreciation for the continuous support of its shareholders, customers and employees and expect to receive same cooperation in future.

                                                 for and on behalf of the Board

Faisalabad.                                                                               Zahid Anwar

29.01.2005                                                                   Chief Executive