Chenab : Transmission of Annual Report for the year ended June 30, 2023

CONTENTS

Company Information 04

About Us 05

Vision and Mission Statements 06

Global Certification 07

Chairman's review 08

Financial Highlights 09

Notice of Annual General Meeting 10

Director's Report to the Members 11

Director's Report in Urdu 14

Independent Auditor's Review Report to the Members on Statement of Compliance

with the Listed Companies (Code of Corporate Governance) Regulations, 2019 17

Statement of Compliance

with the Listed Companies (Code of Corporate Governance) Regulations, 2019 19

Independent Auditor's Report to the Members 22

Financial Position 30

Profit & Loss Account 32

Statement of Comprehensive Income 33

Cash Flow Statement 34

Statement of Changing in Equity 36

Notes to the Financial Statement 37

Pattern of Shareholding (Ordinary Shares) 74

Pattern of Share holding (Preference Shares) 76

Form of Proxy 77

COMPANY INFORMATIONBOARD OF DIRECTORS

Mian Muhammad Latif (Chairman) Mr. Muhammad Naeem (Chief Executive Officer) Mian Muhammad Javed Iqbal

Mr. Muhammad Faisal Latif Mr. Tariq Ayub Khan

Mr. Maqsood UI Hassan Mr. Muhammad Hashim

Mr. Muhammad Salman Javed

Mrs. Sobia Chughtai

CHIEF FINANCIAL OFFICER Mr. Faisal Ali Sarwar

COMPANY SECRETARY Mr. Muhammad Arshad

LEGAL ADVISOR

(Nominee Director)

Ch. Shahid Mehmood (Advocate)

SHARE REGISTRAR

F.D. Registrar Services (SMC-Pvt.) Limited Office # 1705, 17th Floor, Saima Trade Tower-A, I.I. Chundrigar Road, Karachi.

Tel :[phone]

REGISTERED OFFICE

Nishatabad, Faisalabad.

Tel:[phone]

Fax:[phone]

WEBSITE

Email:[e-mail] Website:-www.chenabgroup.com

WORKS

-Spinning Unit- Toba Tek Singh. (Non-Core Asset) -Weaving Unit- Kharianwala, Distt: Sheikhupura. (Non-Core Asset)

-Weaving Unit- Shahkot, Distt: Nankana Sahib. -Processing & Stitching Units - Nishatabad, Fsd.

BANKS

Allied Bank Limited. Askari Bank Limited.

Al Baraka Bank (Pakistan) Limited.

Citibank, N.A.

Faysal Bank Limited.

First Credit & Investment Bank Limited.

Habib Bank Limited.

Habib Metropolitan Bank Limited.

KASB Bank Limited.

National Bank of Pakistan.

NIB Bank Limited.

Orix Leasing (Pakistan) Limited.

Pak Oman Investment Company Limited.

Pak Kuwait Investment Company (Pvt.) Limited.

Pak Libya Holding Company (Pvt.) Limited.

Saudi Pak Industrial & Agricultural Investment Company (Pvt.) Ltd.

Silk Bank Limited.

Standard Chartered Bank (Pakistan) Limited. The Bank of Punjab.

United Bank Limited.

AUDIT COMMITTEE

Mr. Tariq Ayub Khab - Chairman Mr. Muhammad Hashim - Member Mr. Muhammad Salman Javed - Member

HUMAN RESORCE & REMUNERATION COMMITTEE

Mr. Maqsood ul Hassan Mr. Muhammad Naeem

- Chairman

- MemberMr. Muhammad Salman Javed - Member

AUDITORS

RSM Avais Hyder Liaquat Nauman Chartered Accountants.

ABOUT US

The Chenab Limited started its business as Private Limited Company in 1985 and subsequently converted into Public Limited Company. Thereafter in the year 2004 Preference Shares and in 2005 Ordinary Shares were listed on Pakistan Stock Exchange Limited.

Chenab Limited is amongst the largest vertically integrated Textile setups in Pakistan having production facilities in all sectors of Textile Industry from Processing, Printing, Finishing, Cut and Sewn process and provides employment opportunities to large number of families. Chenab is engaged in manufacturing and export of supreme quality of Home Textile and Garments. The company sells its products all over the world .Where it has become a leader in exporting high end quality Products.

In order to utilize Production capacity on maximum level it is engaged in toll manufacturing of fabrics in the local market.

Our HR philosophy is to provide a conductive environment with a special focus on career development and making our employees enable to deal with challenges of today and tomorrow.

Vision

To be a competitive and customer focused organization with continuing commitment to excellence and standards.

Mission Statement

•  To be the business house of first choice for customers.

•  To be a change leader.

•  To produce innovative, relevant and cost effective products.

•  Setting and maintaining high standards.

•  To earn profits by achieving optimum level of production by using stateof are technologies.

•  To provide ideal working conditions to employees and to take care in their career planning and reward them according to their skill and responsibility.

•  To meet social and cultural obligations towards society being a patriotic and conscientious corporate citizens.

Global Certification

Chairman's Review

It is my privilege to serve as Chairman of Board's of Directors of Chenab Ltd.

I am pleased to present a report on the overall performance of the Board of Directors and effectiveness of the role played by the Board in achieving the Company's Objectives.

For the financial year ended on June 30, 2023, the Board's overall performance and effectiveness has been assessed as Satisfactory. Improvements are an ongoing process leading to action plans. The above overall assessment is based on an evaluation of integral components, including vision, mission and values; engagement in strategic planning; formulation of policies; monitoring the organization's business activities; monitoring financial resource planning; effective fiscal oversight; equitable treatment of all employees and efficiency in carrying out the Board's responsibility.

The Board of Directors of your Company received agendas and supporting written material including follow up materials in sufficient time prior to the board and its committee meetings.

Mian Muhammad Latif

Chairman Board of Directors

Financial Highlights

Operational Performance

Sales

Cost of sales

Gross (loss)

Operating (loss)

(Loss) / profit before taxtion

(Loss) / profit after taxtion

Financial Position Property,Plant and equipments

Right-of-use assets

Investment property

Long term deposits

Fixed capital expenditure

Current assets

Store,spare parts and loose tools stocks in trade

Other current assets

Cash and cash equivalents

Non current assets held for sale

Total assets

Current liabilities

Short term bank borrowing

Currant portion of long term financing/lease liabilities

Other current liabilities

Net working capital

Non-current liabilities

Shareholder's equity

Profitability analysis

Gross profit / (loss) to sale (%)

Net (loss) / profit to sale (%)

Return on Investment (%)

Return on equity (%)

Earnings per share (Rupees)

Financial analysis

Current ratio (time)

Total Debt to Total Assets

Total Debt to Fixed Assets

NOTICE OF ANNUAL GENERAL MEETING

Notice is hereby given that 39th Annual General Meeting of the shareholders of the Company will be held at 11.30 A.M. on Monday the 15th April, 2024 at the Registered office of the Company at Nishatabad, Faisalabad to transact the following business:-

ORDINARY BUSINESS

• 1. To confirm the Minutes of the last meeting dated January 15, 2024.

• 2. To consider and approve the Annual Audited Financial Statements of the company for the year ended June 30, 2023 along with Directors and Auditors Reports thereon audited by M/s. RSM Avais Hyder Liaquat Nauman, Chartered Accountants, Faisalabad.

• 3. The External Auditors, M/s. RSM Avais Hyder Liaquat Nauman, Chartered Accountants, Faisalabad retire and being eligible offers themselves for re-appointment. The Audit Committee and the Board has also recommended their re-appointment as External Auditors of the Company for the next financial year 2024 and fix their remuneration.

• 4. To transact any other business with the permission of the Chair.

BY ORDER OF THE BOARDFAISALABAD MARCH 21, 2024

(MUHAMMAD ARSHA D) COMPANY SECRETARY

NOTES:

• 1. A member entitled to attend and vote at the meeting may appoint a proxy to attend and vote instead of him/her at the meeting. Proxies must be deposited at the Company's Registered Office not less than 48 hours before the time for holding the meeting. A proxy must be a member of the company.

• 2. Shareholders whose shares are deposited with Central Depository Company (CDC), or their Proxies are requested to bring their original National Identity Cards (CNICs) or Passports alongwith the Participants ID numbers and their account numbers at the time of attending the Annual General Meeting for verification.

• 3. All other members should bring their Original Computerized National Identity Cards for identification purpose.

• 4. The shareholders are requested to notify the company immediately the change in their address, if any.