Transmission of Annual Report for the Year Ended 30.06.2024

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MAQBOOL TEXTILE MILLS LIMITED

35th

Annual Report

&

Financial Statements (Audited)

For the year ended June 30, 2024

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MISSION STATEMENT

The mission of Maqbool Textile Mills Limited is to contribute positively to the Socio-Economic growth of Pakistan through business and industrial pursuits endeavoring to achieve excellence in all spheres of such activity with effective and efficient management.

VISION STATEMENT

Maqbool Textile Mills Limited become a truly Professional Organization, achieve higher quality standards, utilize maximum capacity, capture expansion opportunities and become a least cost operator amongst its competitors.

We will strive to continue as a successful Company, make profit and thus create value for our shareholders without high risk to them, our Customers or employees.

QUALITY AND ENVIRONMENTAL POLICY

Our aim is to achieve the leadership of textile and spinning industry through quality products according to customer satisfaction. We thrive to achieve the above through the following measures:

1. Acquisition of quality raw material.
2. Manufacturing of high quality yarn as per customer satisfaction.
3. Continuous training and guidance to employees regarding quality and environment.
4. Continuous improvement, close watch and control in production process and environment.
5. Follow up of the system, regarding international quality and environmental laws.
6. Control of pollution discharge from industrial process.

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NOTICE OF ANNUAL GENERAL MEETING

Notice is hereby given that the 35th Annual General Meeting of the Company will be held on Wednesday November 27, 2024 at 11:30 AM at its registered office, 2-Industrial Estate, Multan, to transact the following business:

ORDINARY BUSINESS

1. To confirm the minutes of the Annual General Meeting of the Company held on March 29, 2024.
2. To receive, consider and adopt the Annual audited financial statements of the Company together with the
   Directors', Auditors' Reports and Chairman Review thereon for the year ended June 30, 2024.
3. To appoint Auditors of the Company and fix there remuneration for the Financial Year ending June 30, 2025.
4. To transact any other business with the permission of the Chair.

BY THEORDER OF THEBOARD

Sd/-

(M.Irfan Siddique)

COMPANY SECRETARY

Multan, November 07, 2024

NOTES:

1. The Shares Transfer Books of the Company will remain closed from 21-11-2024 to 27-11-2024 (both days inclusive). Shares transfer received at the Company's Shares Registrar's Office, M/s Hameed Majeed Associates (Pvt.) Limited, H.M. House, 7-Bank Square, Lahore by the close of business on November 20, 2024wil be treated in time.

1. A member entitled to attend and vote at this meeting is entitled to appoint any other member as a proxy to attend, speak and vote instead of him/her. A proxy must be a member. Proxy Forms duly stamped with Rs.5/- revenue stamp, signed and witnessed by two persons, in order to be valid must be received at the Registered Office of the Company not later than 48 hours before the time of holding the meeting.
2. Any individual beneficial owners of CDC, entitled to attend and vote at this meeting must bring his/her CNIC or passport to prove his/her identity and in case of proxy must enclose an attested copy of his/ her CNIC or passport. In case of corporate members, the Boards' resolution or power of attorney with specimen signatures of the nominee shall require to be produced at the time of meeting.
3. For the convenience of Members, a Standard Request Form with appropriate details has been posted on the Company's website. Those Members who opt to receive the annual audited financial statements through CD/DVD/USB instead in the form of hardcopies may apply to the Company Secretary at his postal or email address irfan@maqboolgroup.com
4. Members are requested to submit an attested photocopy of their valid Computerized National Identity Cards (CNICs) as per SECP's direction, if not provided earlier and also communicate to the Company immediately of any change in their addresses.

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6. Postal Ballet Facility: In accordance with the Companies (Postal Ballet) Regulation, 2018 the right to vote through Electronic Voting Facility and voting by Post shall be provided to members of the Company for all business classified as special business under the Companies act, 2017 in the manner and subject to completions contained in the Regulations. The schedule and procedure of Postal Ballot/ Electronic Voting shall be placed on the Company's website i.e.,www.maqboolgroup.comwithin seven (7) days before the meeting:

I/We, _______________________________________ of ________________________________, being a member of MAQBOOL TEXTILE MILLS LIMITED, holder of _______________________ ordinary shares as per Register Folio No./CDC A/C No. _______________ hereby opt for Video conference Facility at

________________.

_________________

Signature of Member

If the Company receives consent from members holding an aggregate 10% or more shareholding residing at a geographical location, to participate in the meeting through Video Conference at least 10 days prior to the date of meeting, the Company will arrange Video Conference facility in that city subject to availability of such facility in that city. The Company will intimate members regarding venue of the Video Conference facility at least five (05) days before the date of general meeting along with complete information necessary to enable them to access such facility.

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CHAIRPERSON'S REVIEW REPORT U/S 192 OF THE COMPANIES ACT 2017 ON OVERALL BOARD PERFORMANCE AND BOARD'S ROLE IN ACHIEVING THE COMPANY'S OBJECTIVES FOR YEAR ENDED JUNE 30, 2024

I take this opportunity toexpress my views on overall performanceand effectiveness ofthe Board of Directors in leading the Companytowards achieving its objectives..

Following the replacement of one of the Independent Directors, the Board reconstituted its two Committees:

1. The Audit Committee which ensures effectiveness of internal controls and review the financial statements in order to ensure that the accounts fairly represent the financial position of the Company.
2. The HR Committee which overviews HR Policy framework and recommends selection and

compensation of senior management team.

In order to engage in strategic planning, set leadership direction, and ensure the highest standards of ethical, moral, and legal conducts, the Board and its Committees are made up of members who have an appropriate mix of core competence, diversity, necessary skills, knowledge, qualification and experience. As required by the Listed Companies (Code of Corporate Governance) Regulations 2019, the Board has developed a mechanism for annual evaluation of the Board's performance. The performance evaluation ensures that all the statutory and legal requirements are fulfilled with regard to meeting, procedure and role of the Board. During the financial year 2023-2024 the Board successfully achieved targets and objects set for the growth of the Company keeping in view of the following:-

1. Performedeffectiveand robust oversight.

1. Reviewed and approved overall corporate strategy, annual business plan, key financial indicators and other budgetary targets.
2. Ensured the quality and appropriateness of financial reporting and the transparency of disclosures in Annual and Quarterly Financial statements.
3. Carried out risk assessment especially regulatory legal requirements, market trends. Cotton supply and price, energy availability and cost, foreign exchange and fluctuations, interest rate and liquidity risk.
4. Reviewed the effectiveness of internal control system.

The contribution and commitment of each member of the Board and the employees of the Company, who ensured the Company's sustained growth is sincerely acknowledged.

Sd/-

Chairperson

Ms. Romana Tanvir Sheikh

Multan,

November 6,2024

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DIRECTORS' REPORT

In the name of Allah the Most Beneficent and the Merciful

Dear Shareholders,

On behalf of the Board of Directors of the Company, I am pleased to present before you the 35th Annual Report on the affairs of your Company along with the Audited Financial Statements of the Company for theyear ended June 30,2024.

PERFORMANCE OVERVIEW:

During the period under report, the Pakistan textile industry was adversely affected due to multiple reasons, including but not limited to : (i) increase in finance cost due to unprecedented increase in markup rates consequent to hike in State Bank of Pakistan policy rates (ii) withdrawal of subsidy on energy prices resulting into more than double increase in electricity cost (iii) general recession and slow down of economy and resultant decline in the production capacity utilization of Company (iv) scarce availability of foreign exchange for import of raw materials, spare parts and machinery (v) insufficient availability of raw materials i.e. Cotton, Polyester Staple Fiber and Viscose Staple Fiber (vi) inconsistent policies of government. Due to the above factors, lesser production, lesser sales with higher cost of production caused decline in Gross Profit and resultant Net Loss for the year.

OPERATIONAL PERFORMANCE:

The main reason for the loss during the year under review was the substantial increase in cost of fuel and power which increased by Rs.1,103,217,225 from Rs.1,324,524,253 in 2023 to Rs.2,427,741,478 in 2024 which is 83.29% increase as compare to last year. Similarly the finance cost was also increased by Rs.132,210,847 from Rs.632,648,197 in 2023 to Rs.766,859,044 in 2024 which is 21.21% increase as compare to last year. The total effect of increase in cost of energy and finance is Rs.1,235,428,072 due to which the net loss has been incurred by the Company in the current year.

Had that the energy tariff been as per regionally competitive rates, and the markup rates in

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line with regional competitors, the Company would have been in net profit.

ACCOUNTS:

The financial results for the year ended June 30, 2024 along with the comparative figures of the last year are summarized under the respective heads of Accounts below:

FUTURE OUTLOOK

The future outlook of the textile sector is expected to remain tough. In this scenario, the whole industry is looking towards the Government to support the textile industry of Pakistan and help it to be competitive globally by providing electricity at regionally competitive rates. Good corporate Governance, marketing quality, production efficiency and financial discipline will remain in top focus of the management but optimal results from the textile industry are not possible unless the Government addresses all confronted issues positively including high increasing energy prices and the still high markup rates. The future performance depends upon the response of local and international markets along with business friendly policies of the Government for the textile sector which must, among others, ensure provision of regionally competitive energy rates and sustainable markup rates.

The Company faced with these multifaceted and mounting challenges has planned to implement major cost cutting measures and is aligning itself to tackle the current market threats. Your Company is committed to maintain optimum quality, product diversification, exploring new markets and achieving higher production efficiencies.

INSTALLATION OF SOLAR ENERGY SYSTEM:

To meet the challenge of unusually increased highest ever energy tariff, the Company has arranged installation of the cheap energy sources i-e generation of electricity through Solar System. In this regard, your Company is pleased to report that in first phase a Solar Energy System of 3.3 MW has been imported & installation of said system will be completed in the current quarter leading to reduction in energy cost. Endeavour for generation through Gas Engines are also underway which will help reduce the energy cost during peak hours.