ASIM TEXTILE MILLS LIMITED

DIRECTORS’ REPORT TO THE MEMBERS

Your directors are pleased to present 3^rd quarter and nine months accounts for the period ended March 31, 2008.

The company has incurred net profit of Rs. 5.932 million as compared to net loss of Rs. 16.035 million for the corresponding period of last year. The non provision of financial charges of Rs. 8.324 million on long term morabaha in current period has resulted in profit. The financial charges have not been accounted for due to litigation with bank. Had financial charges been accounted for, the loss for the period would be Rs. 2.392 million as compared to loss of Rs. 16.035 million for the corresponding period of last year. It is also due to better utilization of production facilities and better sale rates.

Earning per share (EPS) for the 3^rd quarter is Rs. 0.32 and Rs. 0.39 for nine months period as compared to negative (EPS) of Rs. 0.35 for 3^rd quarter and Rs. 1.06 for nine months corresponding period of last year.

There has been no 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 June 30, 2007.

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

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

for and on behalf of the Board

FAISALABAD                                                                        ZAHID ANWAR

29.04.2008                                                                         CHIEF EXECUTIVE