Transmission of Annual Report for the Year Ended 30 06 2024

32nd

Annual Report 2024

w w w . a r u j . c o m

ARUJ INDUSTRIES LTD.

CONTENTS

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Annual Report 2024

VISION AND MISSION STATEMENT

THE VISION

To be the leader in interlining industry by building companies image through

Quality improvement, Customer satisfaction and by maintaining a high level of

ethical and professional standards through Optimum use of resources.

MISSION STATEMENT

1. Endeavoring to be the Market leader and international player by enhancing market share and to conduct business in the best possible manner by using high level of ethical professionalism.

1. Seeking long term and good trading relation with customers an d suppliers with fair, honest and mutually profitable dealings.
2. Building an excellent repute of our organization and to maintain high professional and ethical standards with eyes on the future.
3. Offering high quality products according to the highest international standards.
4. Continuous enhancement in shareholders' value through team work and constant improvement in performance in all operating areas in competitive business
5. Providing congenial work environment, where employees are treated with respect and dignity and work as a team of common goals.
6. Contributing to the national economy by uplifting and skills diversification of the people through fulfillment of our social responsibility

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Annual Report 2024

ARUJ INDUSTRIES LTD.

COMPANY PROFILE

BOARD OF DIRECTORS

CHIEF FINANCIAL OFFICER

Mrs. Durray Zara Butt

Fax: (92 - 42) 35393127

E-mail: info@aruj.com

Website: www.aruj.com

BANKERS

Bank Alfalah Limited.

Habib Bank Limited.

Bank of Punjab.

JS Bank Limited.

Habib Metropolitan Bank Ltd.

Faysal Bank Limited.

Meezan Bank

Bank Al Habib

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Annual Report 2024

NOTICE OF 32ndANNUAL GENERAL MEETING.

Notice is hereby given that 32nd Annual General Meeting of Aruj Industries Limited will be held on Saturday, December 28, 2024 at 9:00 AM at the Registered Office of the Company at 2-KM, Off: Raiwind Manga Road, Raiwind, Lahore to transact the following business:-

ORDINARY BUSINESS:

1. To Confirm the Minutes of last Extra Ordinary General Meeting held on 30th March, 2024.
2. To receive and adopt the Annual Audited Accounts for the year ended June 30, 20 24 along with Directors and Auditors report thereon.
3. To appoint Auditors of the Company to hold office till the conclusion of next Annual General Meeting and to fix their remuneration.

Any Other Business

1. Share Transfer Books of the Company will remain closed from December 21, 2024 to December 28, 2024 (both days inclusive). Transfers received in order at company's Shares Registrar Office at the close of business on December 20, 2024 will be treated as in time.
2. A member eligible to attend and vote at this meeting may appoint another member as his / her proxy to attend and vote instead of him / her. Proxies in order to be effective must be received at the Company's Registered Office, not less than 48 hours before the time for holding the meeting and must be duly stamped, signed and witnessed.
3. In accordance with the provision of section 223 and 237 of the Companies Act, 2017 the audited financial statement of the Company for the year, which ended of June 30, 2024 are available on the company's website: www.aruj.com
4. Shareholders/investors and analysts who are interested in attending the AGM through zoom Link virtually are requested to register themselves by Thursday, December 26, 2024 at sajjad@aruj.com
5. Shareholders are requested to immediately notify the change in address, if any to Company Shares Registrar i.e. M/s Corplink (Pvt.) Limited Wings Arcade, 1-K, Commercial, Model Town, Lahore Tel: 042-35916714-35916719

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Annual Report 2024

ARUJ INDUSTRIES LTD.

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Annual Report 2024

CHAIRPERSON'S REVIEW

As required under the Code of Corporate Governance, an annual evaluation of the Board of

Directors of ARUJ INDUSTRIES LIMITED is carried out. The objective of this evaluation is to ensure

that the Board's overall performance and effectiveness is measured and benchmarked against

expectations in the context of goals set for the Company.

For the financial year ended June 30, 2024,the Board's overall performance and effectiveness has

been assessed as satisfactory. The Board also identifies areas of improvement in line with the best

practices.

The Board received wide-ranging agendas and supporting papers in a timely manner for its

meetings. The Board was fully involved in the strategic planning process and in developing the vision

for the Company. All Directors, including Independent Director, fully took part in and made

contributions to the decision-making process of the Board. The Board has in place comprehensive

policies for all relevant areas of the Company's operation and these policies are reviewed and

updated from time to time.

The Audit Committee and Human Resources & Remuneration Committee met regularly to fortify the

functions of the board.

The company has an independent Internal Audit department, which leads the Internal Audit function

and follows a risk based Audit methodology. Audit reports are presented to the Board for review and

actions where necessary.

In the closing, on behalf of the Board I wish to acknowledge the contribution of all our employees in

the success of the Company. I would like to thank our shareholders, bankers, customers, suppliers

and other business partners for their confidence and support.

Mr.Ali Maqsood Butt

Chairperson

Dated: December 06, 2024

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Annual Report 2024

ARUJ INDUSTRIES LTD.

2024

2024 06

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Annual Report 2024

DIRECTOR'S REPORT

The Directors of your Company would like to present to you the 32nd Annual General Meeting of Aruj Industries Ltd. and would like to present their report along with the audited accounts for the year ended 30thJune, 2024.

SALIANT FEATURES:

Your company posted net sales of Rs 358.277 million for the year ended June 2024. This is a decrease of around 58% as from the years before.

Your company has sustained heavy losses and a decrease in sales in the last financial year. Suffering from the liquidity crunch, we were not able to process our orders as we had expected. Moreover, your Company had set it's sight on local processing business, which also did not see expected growth since the national economy is also stalled due to high interest rates and inflation.

We have had to halt production in of 2024, seeing as continuing with such heavy losses are not feasible. However, your Company is now considering new avenues to explore.

The cost of sales have increased tremendously during the last year. With the government's decision to take away utility subsidies along with the general inflationary pressure, this was an increase that was largely bourn by your company.

Furthermore, in order to execute some processing orders, we had to reprocess the fabric, which cost your company heavily. These factors meant that the sudden and abrupt changes in the cost of sales could not be avoided during the current financial year.

STATEMENT OF COMPLIANCE ON CORPORATE AND FINANCIAL FRAME WORK:

The management is fully aware of the compliance with code of corporate governance as incorporated in the additional listings regulations of the stock exchanges and necessary steps have been taken for their effective implementations which are as follows:

PRESENTATION OF FINANCIAL STATEMENTS:

The financial statements prepared by the management of the Company, present fairly its state of affairs, the results of its operations, cash flows and changes in equity.

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Annual Report 2024

ARUJ INDUSTRIES LTD.

BOOKS OF ACCOUNTS:

Proper books of account of the Company have been maintained.

ACCOUNTING POLICIES:

Appropriate accounting policies have been consistently applied in preparation of financial and accounting estimate are based on reasonable and prudent judgment.

COMPLIANCE WITH INTERNATIONAL ACCOUNTING STANDARDS:

International Accounting Standards as applicable in Pakistan have been followed in preparation of financial statements and any departure there from has been adequately disclosed.

INTERNAL CONTROL SYSTEM:

The system of internal control of the Company is sound and has been effectively implemented and is being monitored by the qualified internal auditors.

GOING CONCERN:

There are no significant doubts upon the Company's ability to continue as a going concern.

BEST PRACTICES OF CORPORATE GOVERNANCE:

There has been no material departure from the best practices of corporate governance, as described in the listing regulations of the stock exchanges.

FINANCIAL DATA OF LAST SIX YEARS:

Key operating and financial data of last six years is annexed.

OUTSTANDING STATUTORY DUES:

The Company is regular payer of all Government dues and previous record is quite evident and clear in this regard.

SIGNIFICANT PLANS AND DECISIONS:

As part of its balancing modernization and replacement plan, the Company has added certain machinery to increase the quality of its products.

MEETINGS OF BOARD OF DIRECTORS:

During the year Seven meetings of the board of Directors of the Company were held. Attendance by each Director in the meeting is as follows:

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Annual Report 2024