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SALLY TEXTILE MILLS LIMITED

     
CASH FLOW STATEMENT      
FOR THE YEAR ENDED SEPTEMBER 30, 2002      
    2002   2001
    (Rupees)   (Rupees)
Cash Flow From Operating Activities      
     Net Profit / (Loss) Before Taxation       (21,990,586)           (1,681,864)
     Adjustments For:        
                                     Prior Years' Adjustments           (5,114,728)   0
                 Depreciation          17,911,755          21,088,480
                 (Profit) / Loss on Sale of Fixed Assets         (3,740,118)                         -  
Balance Written Back         (1,143,837)                         -  
                 Interest Expense        35,745,372          50,403,075
                 Gratuity Provision          6,682,200            5,128,231
     Operating Profit Before Working Capital Changes 28,350,058   74,937,923
       
     (Increase) / Decrease in Stores and Spares             905,289              (297,701)
     (Increase) / Decrease in Stock in Trade         (9,340,948)            3,439,939
     (Increase) / Decrease in Trade Debtors              (95,329)                (64,095)
     (Increase) / Decrease in Advances, Deposits, Prepayments & Other Receivables          4,124,112            4,711,344
     Increase / (Decrease) in Creditors, Accruals & Other Liabilities            (296,715)          25,538,354
     Gratuity Paid           (3,086,180)           (1,684,159)
  (7,789,771)   31,643,682
     Cash Generated From Operations        20,560,287        106,581,605
     Interest Paid         (20,183,227)         (57,492,438)
     Tax Paid           (3,451,197)           (5,078,147)
     Net Cash (Used in) / Generated From Operating Activities (3,074,137)   44,011,020
       
Cash Flow From Investing Activities      
       
     Addition to Fixed Assets         (3,260,528)         (25,419,042)
     (Increase) / Decrease Capital work in progress            (820,542)            5,983,277
     (Increase) / Decrease in Long Term Loans & Advances            (706,642)              (374,372)
     (Increase) / Decrease in Long Term Deposits         (4,010,423)            2,542,220
     Sale Proceeds on Disposal of Fixed Assets        10,096,624                         -  
     Net Cash (Used in) / Generated From Investing Activities 1,298,489   (17,267,917)
       
Cash Flow From Financing Activities      
       
     Increase / (Decrease) in Long Term Finances         (1,484,936)           (9,805,317)
     Increase / (Decrease) in Short Term Finances          4,521,847         (16,195,963)
     Dividend paid              (894,529)           (2,384,153)
     Net Cash Generated From Financing Activities          2,142,382         (28,385,433)
       
Net Increase / (Decrease) in Cash & Cash Equivalents 366,734   (1,642,330)
       
Cash & Cash Equivalents at Beginning of the Period             404,271            2,046,601
       
Cash & Cash Equivalents at the end of the Period 771,005   404,271
       
       
       
MIAN IQBAL SALAH-UD-DIN MIAN YOUSAF SALAH-UD-DIN
      Chief Executive     Director
(AUDITORS REPORT)      
Date : January 28, 2003 (As per annexed)      
Place : LAHORE