SALLY TEXTILE MILLS LIMITED
PROFIT AND LOSS ACCOUNT (UN-AUDITED)
3RD QUARTER ENDED JUNE 30,2003
(Figures in thousand)
3rd Quarter 3rd Quarter
1-04-2003 to Upto 1-04-2002 to Upto
30-06-2003 30-06-2003 30-06-2002 30-06-2002
Sales      134,480     401,786       116,309     345,411
Cost of Sales      129,119     380,804       113,838     323,423
Gross Profit         5,361      20,982          2,471      21,988
OPERATING EXPENSES
Administrative         3,576      12,449          5,116      15,021
Selling            855        3,130          1,613        4,308
        4,431      15,579          6,729      19,329
Operating Profit            930        5,403         (4,258)        2,659
Financial Expenses         7,321      25,032        10,214      32,635
       (6,391)     (19,629)       (14,472)     (29,976)
Other Charge/(Income)             (24)       (2,799)            (144)       (5,041)
Net Profit (Loss ) Before Taxation        (6,367)     (16,830)       (14,328)     (24,935)
TAXATION
Turn Over Tax            672        2,009             582        1,727
Profit/(Loss) After Taxation        (7,039)     (18,839)       (14,910)     (26,662)
Profit & (Loss) Appropriation Accounts:
Profit & (Loss) for the period 30 June 2003        (7,039)     (18,839)       (14,910)     (26,662)
Accumulated Loss     (405,249)    (393,449)      (380,854)    (369,102)
Accumulated Loss
Carried to Balance Sheet     (412,288)    (412,288)      (395,764)    (395,764)
Earning / (Loss) per share        (0.080)       (0.215)         (0.170)       (0.304)
NOTES :
1. These accounts are unaudited and are being submitted to the shareholders as required
under section 245 of the Companies Ordinance,1984.
2. Accounting policies adopted for the preparation of these accounts are the same as
those applied in the preparation of the preceding annual published accounts of the Company
3. There are no extra ordinary expenses or income during the period under review.
4. Provision for Taxation is not made due to previous accumulated losses. Provision for
turnover tax being the minimum tax liability has been made.
5. Figures have been rounded off to the nearest thousand rupees.
MIAN IQBAL SALAH-UD-DIN MIAN YOUSAF SALAH-UD-DIN
CHIEF EXECUTIVE DIRECTOR
Date: July 25,2003 MIAN TAHIR KHALIL
Place: LAHORE C.F.O

SALLY TEXTILE MILLS LIMITED
BALANCE SHEET (UN-AUDITED) AS AT JUNE 30,2003
(Figures in Thousand)
June 30 September 30
       2003              2002
OPERATING FIXED ASSETS
Fixed Assets          177,776         176,954
Capital work in progress             3,087            3,084
         180,863         180,038
Loans and advances             2,012            1,511
Long Term Deposits and Prepayments             6,132            4,147
CURRENT ASSETS
Stores & Spares             5,490            4,836
Stocks           61,102           62,633
Trade Debtors                175               198
Advances,Prepayments & Other Receivable           12,211            6,987
Cash and bank balances                896               771
          79,874           75,425
CURRENT LIABILITIES
Bank borrowing           95,126           88,103
Current portion of long term finances           16,394           18,772
Creditors, accruals & Other liabilites          214,513         187,413
Dividend Payable             5,597            5,750
Tax Payable             4,365            2,356
         335,995         302,394
NET CURRENT ASSETS         (256,121)        (226,969)
TOTAL ASSETS LESS CURRENT LIABILITIES          (67,114)          (41,273)
LESS LONG TERM LIABILITIES
Bank Liabilities          137,826         147,474
Gratuity payable           24,439           21,792
         162,265         169,266
NET TOTAL ASSETS         (229,379)        (210,539)
REPRESENTED BY
CAPITAL & RESERVE
Share Capital issued & paid up           87,750           87,750
Accumulated Loss         (412,288)        (393,448)
        (324,538)        (305,698)
Revaluation Surplus           95,159           95,159
        (229,379)        (210,539)
MIAN IQBAL SALAH-UD-DIN MIAN YOUSAF SALAH-UD-DIN
CHIEF EXECUTIVE DIRECTOR
Date: July 25,2003 MIAN TAHIR KHALIL
Place: LAHORE C.F.O

SALLY TEXTILE MILLS LIMITED
CASH FLOW STATEMENT FOR THE NINE MONTHS ENDED
JUNE 30, 2003
2003 2002
(Thousand) (Thousand)
Cash Flow From Operating Activities
     Net Profit / (Loss) Before Taxation    (18,839)  (24,935)
     Adjustments For:
                 Depreciation      12,303    13,558
                 Interest Expense      25,032    32,635
                 Gratuity Provision        4,826      2,942
     Operating Profit Before Working Capital Changes 23,322 24,200
     (Increase) / Decrease in Stores and Spares         (654)         975
     (Increase) / Decrease in Stock in Trade        1,531  (12,539)
     (Increase) / Decrease in Trade Debtors             23         (27)
     (Increase) / Decrease in Advances, Deposits, Prepayments & Other Receivables      (5,224)         (69)
     Increase / (Decrease) in Creditors, Accruals & Other Liabilities      12,907    (6,155)
     Gratuity Paid      (2,302)    (2,197)
     Cash Generated From Operations 6,281 (20,012)
     Interest Paid      (6,452)  (16,495)
      Tax Paid        (3,116)            -  
     Net Cash (Used in) / Generated From Operating Activities (3,287) (36,507)
Cash Flow From Investing Activities
     Addition to Fixed Assets    (13,777)    (4,930)
     (Increase) / Decrease in Long Term Loans & Advances         (501)       (520)
     (Increase) / Decrease in Long Term Deposits      (1,985)            -  
     Sale Proceeds on Disposal of Fixed Assets        1,510      9,984
     Net Cash (Used in) / Generated From Investing Activities (14,753) 4,534
Cash Flow From Financing Activities
     Increase / (Decrease) in Long Term Finances    (12,026)    (1,573)
     Increase / (Decrease) in Short Term Finances        7,023      9,995
     Dividend paid         (154)       (902)
     Net Cash Generated >From Financing Activities      (5,157)      7,520
   
Net Increase / (Decrease) in Cash & Cash Equivalents 125 (253)
Cash & Cash Equivalents at Beginning of the Period           771         404
   
Cash & Cash Equivalents at Close of the Period 896 151
                                          MIAN IQBAL SALAH-UD-DIN  MIAN YOUSAF SALAH-UD-DIN
                                        Chief Executive  Director
 Date: July 25,2003
 Mian Tahir Khalil
Place: LAHORE.                                                             C.F.O

STATEMENT OF CHANGES IN EQUITY
FOR THE NINE MONTHS ENDED JUNE 30, 2003
Share        Profit/     Total
Capital Loss
(Thousand) (Thousand) (Thousand)
Balance as at June 30,2002       87,750 (395,764) (308,014)
     Net Profit / (Loss)              -   2,315 2,315
Balance as at Sep 30,2002       87,750 (393,449) (305,699)
     Net Profit / (Loss) (18,839) (18,839)
Balance as at June 30,2003       87,750 (412,288) (324,538)
MIAN IQBAL SALAH-UD-DIN MIAN YOUSAF SALAH-UD-DIN
Chief Executive Director