Transmission of Annual Report for the Year Ended 30 06 2024

ANNUAL REPORT 2024

KHALID SIRAJ

Textile Mills Limited

Contents

Company Information

Page 1

Vision & Mission Statement

Vision Statement

To accomplish, build up and sustain a good reputation of the project in textile sector locally and globally by manufacturing and marketing high quality of yarn through team work by means of honesty, integrity and commitment.

Mission Statement

To provide maximum satisfaction to customers by

Supplying fine quality yarn for knitting and Weaving for well Known textile Brands through effective utilization of men, Material and machines by encouraging, supporting and rewarding the employees and sharing profits with our shareholders.

We do have social responsibility towards our community in

which we operate and we are committed to safety,

health and environment in all our operations.

Page 2

Chairman's Review Report

The Board of Directors is performing its duties in accordance with law and in the best interest of company and its shareholders. As required under the Code of Corporate Governance, an annual evaluation of the Board of Directors of Khalid Siraj Textile Mills Limited is carried out. The purpose of this evaluation is to ensure that the Board's overall performance and effectiveness is measured and benchmarked against expectations in the context of objectives set for the Company.

Despite unprecedented challenges faced by the economy, the Board overall performance and effectiveness has been assessed satisfactory for the financial year ended June 30, 2024 as the Company is able to generate some revenue. The performance is based on evaluation of integral components including vision, mission and values; engagement in strategic planning; formulation of policies; monitoring the organization's business activities; monitor financial resource management and efficiency in carrying out the Board business. I would like to extend my acknowledgement and gratefulness towards the Board for its positive contribution and continuous commitments.

The Board has exercised all its power in accordance with relevant laws and regulations and all Board members are equally involved in important decision of the Company. Hope that their performance during coming years will improve further.

on behalf of the Board of Directors

Mian Tahir Iqbal

Director

Lahore: January 06, 2025

Page 3

Future outlook / Strategy

There have been uncertainties during the financial year, mainly due to abrupt devaluation which resulted in an increase in inflation. Electricity rates have been inflated to levels that the market is not absorbing. Regionally competitive rates are to re-instated for spinning sector to work efficiently. After the receipt of financial assistance from friendly countries, foreign direct investment and the approval of bailout package by the IMF, it is expected that the economy now finds its way to towards gaining momentum. To counter this challenging economic situation; the Pakistani textile sector shall have to be a cost effective niche marketing, product and customer development are the essential tools to remain competitive domestically and internationally. The management is confident that the company shall be able to improve its operational performance and going forward.

The management of the company is determined and optimist to turn the unit as viable, operational and profitable in future. We hope that the Change in Government Policies and facilitation to textile sector will bring fruitful results for the Company.

CORPORATE GOVERNANCE

The Board of Directors of Khalid Siraj Textile Mills Limited and its management are fully conversant with its responsibilities as formulated in Code of Corporate Governance as incorporated in the listing regulations of stock exchanges issued by the SECP.

In compliance with the Code of Corporate Governance, the Directors are pleased to state that:

1. The financial statements, prepared by the management of the company, fairly present its state of affairs, the results of its operations, cash flows and changes in equity;
2. The company has maintained proper books of Account;
3. Appropriate accounting policies have been consistently applied in preparation of financial statements and accounting estimates are based on reasonable and prudent judgment;
4. International Financial Reporting Standards, as applicable in Pakistan, have been followed in preparation of financial statements;
5. The system of internal control is sound in design and has been effectively implemented and monitored;
6. There are no significant doubts upon the company's ability to continue as a going concern, however, uncertain circumstances are discussed in note 4.4 of notes to the accounts. The company has sound potentials to continue as going concern;
7. There are no statutory payments due on account of taxes, duties, levies and charges which are outstanding except for those disclosed in attached financial statements;
8. Board of Directors, CEO, CFO, Company Secretary, Executives and their spouse and minor children have made no transaction of company's shares during the year except that mentioned in "Pattern of shareholding".
9. Key operating ratios and financial results of the company for the last six years are annexed.

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10. During the year under review, five (5) meeting of Board of Directors were held and the attendance of Directors were as under:-

Leave of absence was granted by the board to the non-attending directors.

Audit Committee

Board of Directors of your Company has established Audit Committee of the Board in compliance with the requirements the Listed Companies (Code of Corporate Governance), Regulations, 2019. Term of reference of the Committee was duly communicated to the members by the Board.

Four (4) meeting of audit committee were held during the year. Attendance by each member was as follows:-

HR Committee Meetings

Four (4) meetings of HR & Remuneration Committee were held during the year. Attendance by each member was as follows:-

Quality Control

To ensure implementation of the Management System, Internal Quality Audits, Surveillance Audits and Management Review Meetings are conducted regularly.

Communication

Communication with the shareholders is given high priority. Annual, Half Yearly and Quarterly Accounts are distributed to them within the time specified in the Companies Act 2017. Every opportunity is given to the individual shareholders to attend and freely ask questions about the company operations at the Annual General Meeting.

Contingencies and Commitments

No material changes and commitments affecting the financial position of the Company have occurred between the end of the financial year to which this balance sheet relates and the date of the Directors' Report.

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Dividend

Due to the circumstances already discussed the Board of Directors does not recommend any dividend for the year ended 30 June 2024.

Auditors

On the suggestion of Audit Committee, the Board of Directors of the Company has recommended the reappointment of M/s Sheikh & Chaudhri, Chartered Accountants, as the auditors of the Company for the year ending June 30, 2025.

Pattern of Shareholding and Information Under Clause XVI (J) Of The Code Of Corporate Governance

The information under this head as on June 30, 2024 is annexed.

Corporate Social Responsibility

The company is fully aware of corporate social responsibilities and is supporting social sector organizations in the fields of educations, health and environment. The company gives donations as a financial assistance to charitable organizations as well as also offers internships all around the year to student form colleges and universities.

Acknowledgement

The Board is pleased and appreciates continued support of its bankers, dedication and hard work of all the employees of the company.

On behalf of the Board of Directors

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Notice of Annual General Meeting

Notice is hereby given that the 37th Annual General Meeting of the shareholders of Khalid Siraj Textile Mills Limited (the "Company") will be held on Friday, January 31, 2025 at 10:00 a.m. at the registered office of the Company, 135-Upper Mall, Lahore, to transact the following business:

Ordinary Business:

1. To confirm the minutes of 36th Annual General Meeting held on October 24, 2023.
   To receive, consider and adopt the audited financial statements of the Company together with the
   Chairman's Report, Directors' and Auditors' Reports thereon for the year ended June 30, 2024.
   In accordance with the Section 223 of the Companies Act 2017 and in terms of S.R.O No. 389(I)/2023 dated March 21, 2023 issued by (The SECP), Financial Statements of the Company can be accessed through the following web link: https://kstml.com.pk/annual-reportsand QR enabled code:
2. Auditors:
   To appoint auditors of the Company and fix their remuneration for the year ending June 30, 2025. The retiring Auditors, M/S. Sheikh & Chaudhri, Chartered Accountants, are being eligible, have offered themselves for re-appointment and the Board of Directors recommended their appointment.
3. Any Other Business:
   To consider any other business of the Company with the permission of the Chair.

By order of the Board

Haji Tariq Samad

Company Secretary

Lahore: January 06, 2025

NOTES:

1. Closure of The Transfer Books: The share transfer books of the Company will remain closed from January 24, 2025 to January 31, 2025 (both days inclusive) to establish the right to attend the Annual
   General Meeting and to receive the dividend declared. Transfers received at the Company's Share Registrar, M/s. Corplink (Pvt.) Limited, Wing Arcade 1-K Commercial Model Town, Lahore, at the close of business on January 23, 2025 will be treated in time for the purpose to attend and vote at the AGM.
2. Participation in AGM: An Individual beneficial owner of share must bring his/her original CNIC or
   Passport, Account and Participant's I.D numbers to prove his/her identity. A representative of corporate members must bring the Board of Director's Resolution and/or Attorney and the specimen signature of the nominee. CDC account holders will further have to follow the guidelines as laid down in Circular No. 1 dated January 26, 2000 issued by the Securities and Exchange Commission of Pakistan.
   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 by the Company at the registered office not less than 48 hours before the time of holding the meeting. A proxy must be a member.
3. Participation in AGM Through Video Link: Pursuant to circular 4 of 2021 issued by the SECP, Members who wish to participate virtually in the AGM are requested to share below in formation at kstmlspinning@outlook.comat least 07 days prior to date the meeting.

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