Nishat Chunian Limitednishat Chunian Limited 1 2 Nishat Chunian Limited CONTENTS

Interim Financial Information Quarter Ended September 30, 2017 (Unaudited)

Nishat Chunian LimitedNishat Chunian Limited 1 2 Nishat Chunian Limited CONTENTS

02 Company Information 04 Directors’ Report 06 Condensed Interim Balance Sheet 08 Condensed Interim Profit and Loss Account 09 Condensed Interim Statement of Comprehensive Income 10 Condensed Interim Cash Flow Statement 11 Condensed Interim Statement of Changes in Equity 12 Notes to the Condensed Interim Financial Information 22 Consolidated Condensed Interim Balance Sheet 24 Consolidated Condensed Interim Profit and Loss Account 25 Consolidated Condensed Interim Statement Of Comprehensive Income 26 Consolidated Condensed Interim Cash Flow Statement 27 Consolidated Condensed Interim Statement Of Changes In Equity 28 Notes to the Consolidated Condensed Interim Financial Information

Nishat Chunian Limited 1 Company Information

Board of Directors: Bankers to the Company: Mrs. Farhat Saleem (Chairperson) Allied Bank Limited Mr. Shahzad Saleem (Chief Executive) Askari Bank Limited Mr. Zain Shahzad Al Barka Bank (Pakistan) Limited Mr. M. Imran Rafiq (Nominee NIT) Bank Alfalah Limited Mr. Aftab Ahmad Khan Bank Islami Pakistan Limited Mr. Muhammad Ali Zeb Burj Bank Limited Mr. Kamran Rasool Dubai Islamic Bank Pakistan Limited Industrial and Commercial Bank of China Audit Committee: (ICBC) Mr. M. Imran Rafiq (Chairman) Faysal Bank Limited Mr. Zain Shahzad (Member) Habib Bank Limited Mr. Muhammad Ali Zeb (Member) Habib Metropolitan Bank Limited Meezan Bank Limited HR & Remuneration Committee: National Bank of Pakistan Mr. Shahzad Saleem (Chairman) NIB Bank Limited Mr. Zain Shahzad (Member) Pak Kuwait Investment Company (Private) Mr. Kamran Rasool (Member) Limited Standard Chartered Bank Pakistan Limited CFO / Company Secretary: SAMBA Bank Limited Mr. Babar Ali Khan Soneri Bank Limited The Bank of Punjab Head of Internal Audit: United Bank Limited Mr. Faqir Syed Ameer Abbas Auditors: Mills: Riaz Ahmad & Company Spinning 1, 4, 5, 7 & 8 Chartered Accountants 49th Kilometre, Multan Road, Bhai Pheru, Tehsil Chunian, Registered & Head Office: District Kasur. 31-Q, Gulberg-II, Lahore, Pakistan. Dyeing & Printing Phone : 35761730-39 4th Kilometre, Manga Road, Fax : 35878696-97 Raiwind. Web : www.nishat.net

Spinning 2, 3, 6 & Weaving Share Registrar: 49th Kilometre, Multan Road, Hameed Majeed Associates (Pvt) Limited Kamogal, Tehsil Pattoki, 1st Floor, H.M. House District Kasur. 7-Bank Square, Lahore Ph: 042 37235081-2 Fax: 042-37358817

2 Nishat Chunian Limited THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK

Nishat Chunian Limited 3 Directors’ Report

Dear Shareholders The Board of Directors is pleased to announce the unaudited results of Nishat (Chunian) Limited (“the Company”) for the quarter ended on September 30, 2017.

Opera�ng Financial Results Revenues earned during these three months period are Rs. 8.37 billion as compared to Rs. 6.90 billion during the corresponding three months of previous fiscal year, registering an increase of 21.33%. The increase in turnover is mainly driven by Yarn sales in local market. Export duty drawback of Rs. 99 million is booked in current quarter which is expected to be realized in future periods. Obstacles in growth are ever increasing cost of produc�on and s�ff compe��on in interna�onal market. Gross profit has decreased to 6.35% from 11.53% resul�ng into loss a�er tax of -1.14% as compared to profit a�er tax of 8.19% in the corresponding three months.

Quarter ended September 30 Financial Highlights Increase / Decrease % 2017 2016 Sales (Rs.) 8,368,040,197 6,896,728,008 21.33% Gross Profit (Rs.) 531,186,317 795,451,947 -33.22% (Loss) / Profit A�er Taxa�on (Rs.) (95,139,346) 564,697,781 -116.85% Gross Profit % 6.35% 11.53% (Loss) / Profit A�er Tax % -1.14% 8.19% (Loss) / Earnings Per Share (Rs.) (0.40) 2.35

Future Prospects The management is devoted to value crea�on through adop�on of advance technology and further diversifica�on in business. Last year spinning division has seen major investment, as one of its non-opera�onal units has started its commercial opera�ons. The company has also started opera�ng the 99 looms that were acquired last year. Dyeing & Prin�ng unit has also seen an investment of Rs. 340 million. All this and company’s constant focus on replacement and upgrada�on of exis�ng machinery to improvise the overall eﬃciency will posi�vely impact the bo�om line in the coming periods.

“The Linen Company (TLC)”, has setup two more stores one each in Lahore and Islamabad and intends to further enlarge the retail network by opening more stores in various ci�es. “NC Entertainment (Private) Limited”, is successfully running its commercial opera�ons both in Multan and Lahore.

Subsidiary Companies and Consolidated Financial Statements The Company’s por�olio of subsidiary companies include Nishat Chunian Power Limited, NC Electric Company Limited, Nishat Chunian USA Inc. and NC Entertainment (Pvt.) Limited. Therefore, the Company has annexed consolidated condensed interim ﬁnancial informa�on in addi�on to its separate condensed interim ﬁnancial informa�on, in accordance with the requirements of Interna�onal Financial Repor�ng Standards and applicable provisions of the Companies Ordinance 1984.

Acknowledgement The Directors wish to express their apprecia�on to the dedicated employees who con�nue to play a pivotal role in the opera�ons of company.

On behalf of the Board Directors’ 26 October 2017

______Director Director

4 Nishat Chunian Limited Directors’ Report

______

Nishat Chunian Limited 5 UNCONSOLIDATED CONDENSED INTERIM balance sheet

As at SEPTEMBER 30, 2017 Un-audited Audited September 30, June 30, Note 2017 2017 Rupees Rupees EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorized share capital 5 3,000,000,000 3,000,000,000

Issued, subscribed and paid up share capital6 2,402,215,560 2,402,215,560 Reserves 9,510,619,877 9,605,759,223 Total equity 11, 912,835,437 12,007,974,783

LIABILITIES

NON-CURRENT LIABILITIES

Long term ﬁnancing 7 5,813,481,250 4,302,681,600

CURRENT LIABILITIES

Trade and other payables 2,599,735,072 1,531,941,212 Accrued mark-up 139, 496,692 194,237,156 Short term borrowings8 12, 593,012,393 15,236,786,649 Current poron of non-current liabilies 1,710,361,400 1,348,981,400 17, 042,605,557 18,311,946,417 TOTAL LIABILITIES 22, 856,086,807 22,614,628,017

CONTINGENCIES AND COMMITMENTS 9

TOTAL EQUITY AND LIABILITIES 34, 768,922,244 34,622,602,800

The annexed notes form an integral part of these ﬁnancial statements.

______Director As per reference to section 232 of companies act 2017, this condensed interim financial information has been signed by two directors instead of chief executive and one director, as the chief executive is for the time being not in Pakistan.

6 Nishat Chunian Limited UNCONSOLIDATED CONDENSED INTERIM balance sheet

As at SEPTEMBER 30, 2017 Un-audited Audited September 30, June 30, Note 2017 2017 Rupees Rupees ASSETS

NON-CURRENT ASSETS

Fixed assets 10 11,891,716,159 11 ,974,956,779 Investment in subsidiary companies 3,837,808,299 3,902,230,516 Long term loans to employees 17,641,020 15,885,959 Long term security deposits 22,234,440 22,234,440 15,769,399,918 15 ,915,307,694

CURRENT ASSETS

Stores, spare parts and loose tools 868,002,972 580,064,718 Stock-in-trade 8,615,721,398 8,650,117,999 Trade debts 5,619,914,051 5,173,332,632 Loans and advances 1,298,561,251 1,627,217,961 Short term prepayments 30,047,423 8,091,017 Other receivables 2,472,265,381 2,597,671,046 Accrued Interest 10,825,127 4,483,425 Short term investments 20,815,902 21,766,947 Cash and bank balances 63,368,821 44,549,361 18,999,522,326 18 ,707,295,106

TOTAL ASSETS 34,768,922,244 34 ,622,602,800

______Chief Financial Oﬃcer Director Nishat Chunian Limited 7 UNCONSOLIDATED CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UN-AUDITED)

For the quarter ended September 30, 2017

Quarter Ended September 30, September 30, Note 2017 2016 Rupees Rupees

SALES8 ,368,040,197 6,896,728,008 COST OF SALES 11 (7,836,853,880) (6,101,276,061) GROSS PROFIT 531,186,317 795,451,947 DISTRIBUTION COST (201,774,738) (185,506,098) ADMINISTRATIVE EXPENSES (53,063,232) (44,694,973) OTHER OPERATING EXPENSES (5,284,489) (35,243,724) (260,122,459) (265,444,795) 271,063,858 530,007,152

OTHER OPERATING INCOME 18,963,371 364,890,844

PROFIT FROM OPERATIONS 290,027,229 894,897,996 FINANCE COST (307,723,849) (226,756,033) PROFIT BEFORE TAXATION (17,696,620) 668,141,963

TAXATION (77,442,726) (103,444,182) PROFIT AFTER TAXATION (95,139,346) 564,697,781

(Restated) EARNINGS PER SHARE - BASIC & DILUTED( 0.40) 2.35

The annexed notes form an integral part of these ﬁnancial statements.

______Director Chief Financial Oﬃcer Director As per reference to section 232 of companies act 2017, this condensed interim financial information has been signed by two directors instead of chief executive and one director, as the chief executive is for the time being not in Pakistan.

8 Nishat Chunian Limited UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)

For the quarter ended September 30, 2017

Quarter Ended September 30, September 30, 2017 2016 Rupees Rupees

PROFIT AFTER TAXATION (95,139,346) 564,697,781

OTHER COMPREHENSIVE INCOME - -

TOTAL COMPREHENSIVE INCOME FOR THE YEAR (95,139,346) 564,697,781

The annexed notes form an integral part of these ﬁnancial statements.

For the quarter ended September 30, 2017

Quarter Ended September 30, September 30, Note 2017 2016 Rupees Rupees CASH FLOWS FROM OPERATING ACTIVITIES Cash generated from operaons 12 691,488,185 1,099,544,703 Net decrease in long term security deposits - 50,000 Net increase in long term loans to employees( 1,755,061) (374,177) Finance cost paid (362,464,313) (260,640,632) Income tax paid (50,964,498) 98,426,848 Net cash generated from operang acvies 276,304,313 937,006,742

CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditure on property, plant and equipment( 163,269,526) (54,219,248) Capital expenditure on intangible assets (212,849) - Proceeds from sale of property, plant and equipment 980,700 (36,083,198) Short term loans made to subsidiary company( 1,463,107,000) - Repayment of short term loans by subsidiary company2 ,073,099,328 - Short term investments1 ,106,721 (20,921,964) Investment in subsidiary companies 64,422,217 (115,004,641) Dividend received from subsidiary company- 328,275,185 Interest income received from subsidiary companies1 ,038,783 - Proﬁt on bank deposits received 52,779 292,344 Net cash generated from invesng acvies 514,111,153 102,338,478

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from long term financing 2,076,300,000 41,414,992 Repayment of long term financing ( 204,120,350) (306,304,500) Short term borrowings - net( 2,643,774,256) (737,301,933) Dividend paid (1,400) (5 5,999) Net cash used in financing acvies ( 771,596,006) (1,002,247,440) NET INCREASE IN CASH AND CASH EQUIVALENTS 18, 819,460 37 ,097,780

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 44, 549,361 48 ,667,523

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 63, 368,821 85 ,765,303

The annexed notes form an integral part of these ﬁnancial statements.

______Director Chief Financial Oﬃcer Director

As per reference to section 232 of companies act 2017, this condensed interim financial information has been signed by two directors instead of chief executive and one director, as the chief executive is for the time being not in Pakistan. 10 Nishat Chunian Limited UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)

For the quarter ended September 30, 2017 81 46) 821 437 602 890) 071 783 3 ,7 TY 53, 34, 196, 835, 697 894, 974, 139, ,5 ,6 5, 87, 12, 64, 51, 07, L EQ UI (9 600 056 (

1, TA 10 ,9 11 ,9 11 ,5 12 ,0 Director TO

) ______90 ) 371 987 78 15 152 071 333 346 ,8 l ta 427, 065, 697, 125, 553 634, 205, 139, To 00, 95, ( 984, 910, 564, 549, 056, 005, (6 7, 8, 8, 1, 9,

ed 93 81 09 74 71 55 890) 346) at ,7 ES t 06 ,0 44 ,7 53, 03 ,8 34 ,0 84 ,0 697 139, RV op ri oﬁ ,2 ,8 ,5 ,9 ,6 ,9 5, SE pr (9 ppr 355 564, 280 600 919 056 375 RE ( a 6, 7, 6, 1, 7,

Un ------

es - - - - 27 8 27 8 l 27 8 27 8 pe e ra rv Ru

221, 221, 221, 221, ne se re Ge 629, 629, 629, 629, 1, 1, 1, 1,

c tors instead of chief executive and one director, as the is for time being _ - - - - 890 890 890 890 L M ES E IU TA 53, 53, 53, 53, RV AR 5 5 5 5 SE EM SH CAPI 600, 600, 600, 600, RE PR

t ------y posi De Chief Financial Oﬃcer ______e . Mone ar ts Sh en

em e at ar - - - 56 0 56 0 56 0 56 0 l st

ta al 215, 215, 215, 215, ry pi ci na Ca an 402, 402, 402, 402, di 2, 2, 2, 2, ﬁn

Or ------e h es d) d) th 016

te te er er mont

2 di di of rt rt

ne rt au au une qua ni qua J n- n- pa

e e e d) d) (u (u al 30 th th th - te - te d gr r r r e- te udi udi fo fo de fo

in 2017 2016 (a (a

en sh r r - -

me me me an

ar ry be be co co co ye na rm in in in 2016 2017 2016 2017

em em e r r di e e e fo pt pt s th iv iv iv or be be r r Se June Se June ns ns ns 2017 fo

em em pe note 30 30 30 30 he he he

5 pt pt d nd re re re 2. une at at at at

Se J Se xe de as as as as mp mp mp es vi 30 30 30 e e e e co co co nne di d d d Director l l l nc a nc nc l nc upe la e ta la ta la ta la na nde nde nde s per reference to section 232 of companies act 2017, this condensed interim financial information has been signed by two dire not in Pakistan. Ba Th ______A To e Ba Fi @ R To e Ba To e Ba Nishat Chunian Limited 11 SELECTED NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL INFORMATION (UN-AUDITED)

For the quarter ended September 30, 2017

1. THE COMPANY AND ITS OPERATIONS

Nishat (Chunian) Limited(“the Company”) is apubliclimited companyincorporatedinPakistan underthe CompaniesOrdinance, 1984 andislistedonthe Pakistan StockExchangeLimited.Its registered oﬃce is situated at 31-Q, Gulberg II, Lahore.The Companyisengaged in business of spinning,weaving,dyeing, prinng, stching,processing, doubling, sizing,buying, sellingand otherwisedealing in yarn,fabricand made- upsmadefromraw coon, synthec ﬁber andcloth andtogenerate, accumulate,distribute, supplyand sell electricity.

2. BASIS OF PREPARATION

This unconsolidated condensed interimfinancialinformaonis un-auditedand is beingsubmied to shareholders as required by secon 245 of theCompanies Ordinance, 1984.Thisunconsolidatedcondensed interimfinancialinformaonofthe Companyfor the quarter ended30September 2017 hasbeenpreparedin accordance with therequirementsofthe Internaonal Accounng Standard (IAS) 34 "Interim Financial Reporng"and provisions of anddirecves issued underthe CompaniesOrdinance,1984. In case where requirements differ, theprovisionsofordirecves issued underthe CompaniesOrdinance,1984 have been followed. This unconsolidated condensedinterim financial informaon should be read in conjunconwiththe preceding audited annual published financial statements of the Company for the year ended 30 June 2017.

3. ACCOUNTING POLICIES

Theaccounng policiesand methodsofcomputaons adoptedfor thepreparaonofthis unconsolidated condensedinterim ﬁnancial informaon arethe same as appliedinthe preparaon of thepreceding audited annual published ﬁnancial statements of the Company for the year ended 30 June 2017.

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

Thepreparaonofthisunconsolidated condensed interimﬁnancialinformaoninconformitywiththe approved accounng standardsrequiresthe useofcertain cricalaccounng esmates.Italsorequiresthe management to exercise itsjudgment in theprocess of applying theCompany's accounngpolicies. Esmates andjudgments areconnuallyevaluated andare basedonhistoricalexperienceand otherfactors,including expectaons of future events that are believed to be reasonable under the circumstances.

During preparaon of this unconsolidated condensedinterim financial informaon,the significant judgments made by themanagementinapplying theCompany’s accounng policies andthe keysources of esmaon anduncertainty were thesameasthose that appliedinthe precedingauditedannual published financial statements of the Company for the year ended 30 June 2017.

5. AUTHORIZED SHARE CAPITAL Un-audited Audited Un-audited Audited September 30, June 30, September 30, June 30, 2017 2017 2017 2017 (Number of shares) Rupees Rupees 12 Nishat Chunian Limited 280,000,000 280, O000,000 rdinary shares of Rupees 10 each 2, 2800,000,000 ,800,000,000

20,000,000 20, 000,000 15 %non-vong cumulaveconverble preference shares of Rupees 10 each 200, 2000,000 00,000,000 300, 000,000 300, 3000,000 3,000,000,000 ,000,000,000 1. THE COMPANY AND ITS OPERATIONS

2. BASIS OF PREPARATION

3. ACCOUNTING POLICIES

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

During preparaon of this unconsolidated condensedinterim financial informaon,the significant judgments made by themanagementinapplying theCompany’s accounng policies andthe keysources of esmaon SELECTED NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL INFORMATION anduncer tainty were thesameast hose that appliedint he precedin gauditedannu al pub (UN-lishAedUDITED)financial statements of the Company for the year ended 30 June 2017. For the quarter ended September 30, 2017

5. AUTHORIZED SHARE CAPITAL Un-audited Audited Un-audited Audited September 30, June 30, September 30, June 30, 2017 2017 2017 2017 (Number of shares) Rupees Rupees

280,000,000 280, O000,000 rdinary shares of Rupees 10 each 2,2800,000,000 ,800,000,000

20,000,000 20, 000,000 15 %non-vong cumulaveconverble preference shares of Rupees 10 each 200,2000,000 00,000,000 300, 000,000 300, 3000,000 3,000,000,000 ,000,000,000

6. ISSUED, SUBSCRIBED AND PAID UP SHARE CAPITAL

Un-audited Audited Un-audited Audited September 30, June 30, September 30, June 30, 2017 2017 2017 2017 (Number of shares) Rupees Rupees

134,757,848 134,757,848 Ordinary shares of Rupees 10 each fully paid in cash 1,347,578,4801,347,578,480

104,239,443 104,239,443 Ordinary shares of Rupees 10 each issued as fully paid bonus shares 1,042,394,4301,042,394,430

1, 224,265 1,224,265 Ordinary shares of Rupees 10 each issued as fullypaidfor consideraon otherthan cash to members of Umer Fabrics Limited as perthe Scheme of arrangementas approved by theHonourableLahoreHigh Court, Lahore 12,242,650 12,242,650

240,221,556 240,221,556 2,402,215,5602,402,215,560

Un-audited Audited September 30, June 30, 2017 2017 Rupees Rupees 7. LONG TERM FINANCING

From Banking Companies / ﬁnancial instuons -Secured Long Term Loans 6,983,842,650 5,071,663,000 Long Term Musharaka 540,000,000 580,000,000 7,523,842,650 5,651,663,000 Less: Current poron shown under current liabilies 1,710,361,400 1,348,981,400 Non-current poron 5,813,481,250 4,302,681,600

UnNishat-aud itChunianed LimitedAudited 13 September 30, June 30, 2017 2017 Rupees Rupees 8. SHORT TERM BORROWINGS Short term running finances7 52,173,394 2,143,226,773 Export finances-preshipment/SBP refinance 4,650,838,999 4,360,059,876 Other short term finances7 ,190,000,000 8,733,500,000 12,593,012,393 15 ,236,786,649 6. ISSUED, SUBSCRIBED AND PAID UP SHARE CAPITAL

Un-audited Audited Un-audited Audited September 30, June 30, September 30, June 30, 2017 2017 2017 2017 (Number of shares) Rupees Rupees

134,757,848 134,757,848 Ordinary shares of Rupees 10 each fully paid in cash 1,347,578,4801,347,578,480

104,239,443 104,239,443 Ordinary shares of Rupees 10 each issued as fully paid bonus shares 1,042,394,4301,042,394,430

240,221,556 240,221,556 2,402,215,5602,402,215,560

Un-audited Audited September 30, June 30, 2017 2017 Rupees Rupees 7. LONG TERM FINANCING

From Banking Companies / ﬁnancial instuons -Secured Long Term Loans 6,983,842,650 5,071,663,000 Long Term Musharaka 540,000,000 580,000,000 SELECTED NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL INFORMATION 7,523,842, 650 (UN- 5,A651,UDITED)663,000 Less: Current poron shown under current liabilies 1,710,361,400 1,348,981,400 ForNo thn-ecu qrruenartte porr endedon September 30, 2017 5,813,481,250 4,302,681,600

Un-audited Audited September 30, June 30, 2017 2017 Rupees Rupees 8. SHORT TERM BORROWINGS Short term running finances7 52,173,394 2,143,226,773 Export finances-preshipment/SBP refinance 4,650,838,999 4,360,059,876 Other short term finances7 ,190,000,000 8,733,500,000 12,593,012,393 15 ,236,786,649

9. CONTINGENCIES AND COMMITMENTS Conngencies

There is no signiﬁcant change in the status of conngencies as disclosed in the preceding audited annual ﬁnancial statements of the Company for the year ended 30 June 2017 except for the following:

i) Guarantees of Rupees 196 million (30 June 2017: Rupees 196 million) have been issued by the banks of the company to Director, Excise and Taxaon, Karachi against disputed amount of infrastructure cess.

ii) Post dated cheques have been issued to custom authories in respect of dues amounng to Rupees 2511.104 million (30 June 2017: Rupees 2,328.471 million) on imported material availed on the basis of consumpon and export plans. In the event the documents of exports are not provided on due dates, cheque issued as security shall be encashable.

iii) Guarantees of Rupees 332.333 million (30 June 2017: Rupees 329.388 million) have been issued by the banks of the company to Sui Northern Gas Pipelines Limited against gas connecons, Shell Pakistan Limited against purchase of furnace oil, Lahore Electric Supply Company Limited against electricity connecons and Nazir (The Honorable High Court of Sindh).

iv) The Company has issued cross corporate guarantees of Rupees 14.19 billion (2017: Rupees 14.12 billion) on behalf of NC Electric Company Limited - wholly owned subsidiary company to secure the obligaons of subsidiary company towards its lenders.

Commitments

i) Commitments in respect of capital expenditure are Rupees 161.970 million (30 June 2017: Rupees 49.228 million).

ii) Leers of credit other than for capital expenditure are Rupees 579.451 million (30 June 2017: Rupees 1,318.171 million).

iii) Outstanding foreign currency forward contracts of Rupees 1,919.018 million (30 June 2017: Rupees 4,940.270 million).

Un-audited Audited September 30, June 30, 2017 2017 10. OPERATING FIXED ASSETS Rupees Rupees

Property, plant and equipment Operang assets (10.1) 11,557,184,831 11,719,057,304 Capital work in progress 332,929,365 253,210,935 11,890,114,196 11,972,268,239 Intangible asset: Computer so ware 1,601,963 2,688,540 11,891,716,159 11,974,956,779 14 Nishat Chunian Limited 10.1Operang Assets

Opening book value1 1,719,057,304 9,417,927,801 Addions during the period / year (10.1.1) 88,544,899 3,352,255,352

11,807,602,203 12, 770,183,153 Book value of deleons during the period / year (10.1.2) 6,004,206 232,810,909 Less: Depreciaon charged during the period / year 244,413,166 818,314,940

Closing book value1 1,557,184,831 11, 719,057,304 9. CONTINGENCIES AND COMMITMENTS Conngencies

Commitments

i) Commitments in respect of capital expenditure are Rupees 161.970 million (30 June 2017: Rupees 49.228 million).

ii) Leers of credit other than for capital expenditure are Rupees 579.451 million (30 June 2017: Rupees 1,318.171 million).

iii) Outstanding foreign currency forward contracts of Rupees 1,919.018 million (30 June 2017: Rupees 4,940.270 million).

Un-audited Audited September 30, June 30, 2017 2017 10. OPERATING FIXED ASSETS Rupees Rupees

Property, plant and equipment Operang assets (10.1) 11,557,184,831 11,719,057,304 Capital work in progress 332,929,365 253,210,935 SELECTED NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FIN A 11NCI,890,AL114, INF196ORMA 11TION,972,268,239 (UN-AUDITED) Intangible asset: Computer so ware 1,601,963 2,688,540 For the quarter ended September 30, 2017 11,891,716,159 11,974,956,779

10.1Operang Assets

Opening book value1 1,719,057,304 9,417,927,801 Addions during the period / year (10.1.1) 88,544,899 3,352,255,352

11,807,602,203 12, 770,183,153 Book value of deleons during the period / year (10.1.2) 6,004,206 232,810,909 Less: Depreciaon charged during the period / year 244,413,166 818,314,940

Closing book value1 1,557,184,831 11, 719,057,304

10.1.1 Cost of addions during the period / year Land - 81,893,956 Building on freehold land 1,070,696 129,112,396 Plant and machinery6 7,022,224 3,017,136,527 Electric installaons 1,445,205 43,933,009 Factory equipment5 ,554,607 16,913,161 Furniture and ﬁxtures 9,089,360 23,537,322 Oﬃce equipment 1,689,269 10,926,853 Motor vehicles 2,673,538 28,802,128 88,544,899 3,352,255,352

10.1.2 Book Value of deleons during the period / year Building on freehold land - 12,237,028 Plant and machinery7 ,386,892 590,180,000 Electric installaons 917,116 - Factory equipment - 270,000 Furniture and ﬁxtures 42,000 6,000 Oﬃce equipment5 1,232 2,041,104 Motor vehicles 925,000 19,268,774 Total Cost of Deleons 9,322,240 624,002,906 Less: Accumulated Depreciaon( 3,318,034) (381,466,261) Less: Accumulated Impairment - (9,725,736) 6,004,206 232,810,909 10.2 Capital work-in-progress

Civil works on freehold land 43,521,014 2,542,345 Advances for capital expenditures2 ,607,236 12,287,452 Leers of credit 16,758,508 11,932,043 Mobilizaon advances 270,042,607 10,501,512 332,929,365 37,263,352 10.3 Intangible asset - Computer so ware

Opening book value2 ,688,540 5,019,748 Add: Cost of addions during the period / year 212,849 3,868,748 Less: Amorzaon charged during the period / year 1,299,426 6,199,956 Closing book value1 ,601,963 2,688,540

Nishat Chunian Limited 15 SELECTED NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL INFORMATION (UN-AUDITED)

For the quarter ended September 30, 2017

Un-audited Quarter Ended September 30, September 30, 2017 2016 …………… Rupees …………… 11. COST OF GOODS SOLD Raw material consumed 5,698,355,659 4,675,328,967 Packing materials consumed 205,487,967 195,229,013 Stores, spare parts and loose tools 234,641,635 212,419,454 Commercial Processing Stching etc. 19,951,647 55,935,507 Salaries, wages and other beneﬁts 606,743,774 547,177,489 Fuel and power 749,967,268 569,341,360 Insurance 9,068,919 10,407,229 Postage and telephone 164,555 252,113 Travelling and conveyance 832,863 4,745,535 Vehicles running and maintenance 5,402,746 4,201,038 Entertainment 2,567,697 2,233,229 Depreciaon 242,801,510 188,550,264 Repair and maintenance 77,134,950 68,042,396 Other factory overheads 17,821,245 21,788,891 7,870,942,435 6,555,652,485 Work-in-process

Opening stock 681,950,465 664,745,190 Closing stock (718,394,071) (679,165,076) (36,443,606) (14,419,886) Cost of goods manufactured 7, 834,498,829 6,541,232,599

Finished goods and waste-opening stocks Finished goods 1,058,655,750 581,318,344 Waste 78,504,641 45,165,814 1,137,160,391 626,484,158 8,971,659,220 7,167,716,757 Finished goods and waste-closing stocks Finished goods (1,057,530,842) (1,008,408,863) Waste (77,274,498) (58,031,833) (1,134,805,340) (1,066,440,696) Cost of goods sold 7,836,853,880 6,101,276,061

Cost of goods sold 7,836,853,880 6,101,276,061

16 Nishat Chunian Limited SELECTED NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL INFORMATION (UN-AUDITED)

For the quarter ended September 30, 2017

Un-audited Quarter Ended September 30, September 30, 2017 2016 Rupees Rupees 12. CASH GENERATED FROM OPERATIONS

Profit / Loss before taxaon (1 67,696,620) 68,141,963 Adjustment for non cash charges and other items: Depreciaon on operang fixed assets 244, 1413,166 89,907,465 Amorzaon on intangible assets1 1,299,426 ,075,660 Loss/Gain on sale of operang fixed assets 29 3 ,703 6,083,198 Interest income on loan to subsidiary company (7 -,380,485) Interest on bank deposits( 208, 455) ( 292,344) Finance cost 307, 2723,849 26,756,033 Dividend Income - ( 328,275,185) Working capital changes (Note 12.1) 163, 3307,601 06,147,913

Cash generated from operaons 691, 1488,185 ,099,544,703

12.1 Working capital changes (Increase) / decrease in current assets - Stores, spare parts and loose tools( 287,938,254) (1 48,342,065) - Stock in trade3 4,396,601 6 21,199,707 - Trade debts ( 446,581,419) (1 07,707,153) - Loans and advances ( 281,335,618) (6 74,786,566) - Short term deposits and prepayments (2 (1,956,406) 24,255,799) - Other receivables 98, 927,437 1 32,750,268 Increase in current liabilies - Trade and other payables1 ,067,795,260 5 07,289,521

163, 3307,601 06,147,913

Nishat Chunian Limited 17 SELECTED NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL INFORMATION (UN-AUDITED)

FOR THE QUARTER ENDED SEPTEMBER 30, 2017 ) ) ) ) ) ) ) 5 -

1 8 3 8 7 4 9 4 0 9 2 3 9 2

6 0 8 3 0 4 4 1 2 8 9 7 7 8

, 0 0 1 0 0 9 8 1 7 7 0 0 9 8

, , , , , , , , , , , , , , 6 9 1 0 0 1 8 6 4 6 9 7

6 8 0 4 6 8 1 0 5 3 7 6 1 4 2

6 0 4 1 0 6 6 5 4 8 4 4 1 5

7 2 4 5 2 5 9 0 4 9 0 0 9 2 0 1

0 4 0 1 8 4 6 5 6 0 5 3 2 - .

, 2 7 4 7 7 4 8 3 2 6 5 2 6 4 , , , , , , , , , , , ,

, , , , , , , , , , , , , ,

p 7 5

3 8 8 7 2 6 6 2 8 1 0 9 1 6 3 6 6 5 4 5 9 4 5 4 0 7

7 e

6 4 6 5 2 3 0 2 8 7 6 7 3 4

0 9 0 2 9 9 6 3 6 6 8 4 3 2 S 1

5 ( ( 9 -

1 6 3 8 6 2 6 0 7 5 3 6 2 5 1 2 8 7 3 6 5 1 2 2

, , , , , ,

( (

(

, , , , ,

, ,

, 0

6 6

4 2 3 6 3 d 4

( n un - )

1 2 6 3 4 a

76 6 d - p 65 1 39 3 19 4 36 0 6 6 2 6 17 1 59 7 90 2

n e ,

, , , , , , , , , n

1 a m E 5 1 4 6 5 2 1 2 3

3 d o 2

r p 3 2 1 2

u C

) ) ) ) ) ) ) )

a - t 7 -

- m

0 7 6 7 9 9 7 1 9 6 1 9 0 8

r l

8 9 2 1 4 8 9 7 4 4 5 a 1 7 4 a o

U , 8 1 7 3 8 4 1 3 4 3 0 u 9 9 7

, , , , , , , , , ( , , , , ,

C o t

Q 3 0

2 6 3 4 0 3 9 9 5 2 7 0

7 T

0 2 9 4 2 3 7 7 5 2 1 9 1 5 4 4 8 2 8 4 6 2 3 6 7 3 1 1

3 -

, 8 0 4 1 7 2 0 9 8 1 3 4 8 2 5 9 9 4 4 9 0 2 4 0 8 9 l 2

, , , , , , , , , , , , , ,

p 6

6 6 5 2 2 3 8 3 7 9 3 2 8 a 6 8 7 1 7 8 5 8 5 5 3 1 4

2 e , , , , , , , , , , , , ,

7 ( t

3 6 7 3 0 1 6 9 9 5 0 5 7 7 S

2 6 7 3 1 5 5 8 8 2 ( ( (

8 3 5 3 3 6 2 2 6

o 1

, , , , ,

(

4 9 0 2 1 1 6 0 6

0 -

7 8

T 3 8 4 7 92 2 95 6 01 2 08 6 6 1 2 8 8 3

( p

, , , , , , , , , , , ,

e 0 3

2 6 S

52 3 13 9 49 5 76 8 87 8 59 3 85 6 40 4 19 5 47 2 83 7 , , , , , , , , , 4 6 2 2 7 1 2 2 3 30 - ) )

3 2 1 2 s 0 0 0 n 8 8 8 ------

o 5 5 5

, , ,

5 5 5

c 6

6 6 a 6 1

8 9 s -

9 9 9

, , ,

n 6 p 0

8 8 8

a e

3 1

0 0 0 , S -

t -

3 3

5 3 7

, , ,

0 t -

1 1

3 3 3

d 3 n

( ) ( 9

77 1 - e

e d ,

- un - e

5 m

2 J i g

E - -

on 6 d e

3 , r i 0 s - u t - e 1

) 3 ) a r t a - - 7 7 7 r e r

n a t 1 1 1 ------U

n 7 7 7 (

i , , , ne

f 1 1 7 1

- o 3 3 1 3

G 0 0 0 7 0

n , , , -

r 0 o 3 8 8 8 e

8 8 S 8

e 3 1

, - , a

6 6 6 -

7 , , , w 0 3

i 2 2 2 1

- 8 o

(

4 84 2 - P

, p ,

e -

3 S - 3 -

26 9 , ) - ) ) ) 0 1 1 1

6 7 5 0 7 0 3 1 7 - 4 5 1 0 5 4

7 1 . - - -

, , 7 4 8 4 5 -

, , , 5 , ,

6 3 6

6 3 1 2 3 3

- 0 8

9 0 2 7 0 2 -

6 1 , ( -

, , 7 4 4 4 p

, , 1 , (

6 6

- e 8 5 4 1 0

0 1 4 1 n - -

(

5 5 8 3 5 o

d ,

(

, - )

7 6 5

a -

e 0

- 2

E ,

n e d - 7 r un - e

u e 2 - ) J a G 4 4 t

- - 3 9 3 3 r 25 5 r - , 9 9 n 0 6 6 6 a

e 6 6 … 2 ------

- , , U 3 4 1 1 u

, , ( ,

g w 0 0

Q - 3 4 4

…

o 1 1

1 n

8 9 9 - P i

- 3 3

, , 8 1

1 p

, , ,

h - 6 6

e 7 4

S c -

4 5 5 -

2 6

6 6 6 i

(

3 4 t

3 e

- 2 0

, S

, i

- t 7

1 3 x - -

8 38 5 e - , p , )

) ) ) 5 3 6 T e - 0 6 1 1 1 9 3 2 0

8 7 3 6 6 5 5 7 5 5 1 8 S - e 9 9 - 3

, , 5 5 5 8 4 5 0 6 2

, , , , , , , , ,

- 0 1 8 6

2 m 8 0 0 6 7 5 3 3

7 3

3 1 -

1 9 9 6 6 6 3 2 -

o 7 4

, , 8 5 5 7 9 3 3 8 - p

, , , , , , , ,

8 1 H

e 3 2 2 0 6 0 7 1

4 5

5 0 0 8 1 8 9 2 -

2 1 - ( ( ( d

5 8 8 7

, , , ,

e 3

1 1

l 8 8

( -

2 7

- 5 7

, g e , - ……………………………… … T 7 9

n i - 1 3 ) ) ) e )

0 5 5 9 … - 0 5 8 s 5 6 0 6 . - 70 8 9 4 2 0 , m n

. , 7 1 1 4 9 3 s 6 4 1 4 - - o 0

u , , , , 7 9 9 1 3 5

, , , , , , e

4 H … 7 1 3 J 4 -

2 5 5 3 2 5

c 4 9 5 7 8

e 1 38 3 - ,

l 6 3 3 7 0 7 - 0

3 7 9 0

o , , , , 8 8 3 8 6 9 5 p

- 3 , , , , , ,

1 x 6 3 0

e 2 6 6 8 3 2

- 1 e 0 0 7

P g

7 7 7 1 7 9 - T

1 - ( ( (

, 3 4 4

n , , , d

e i 1 - )

1 1

( d e -

o y

9 0 - t

E H 4 7

- D d

8 5 d u , - , e ) ) ) ) n

a 7 9 9 t - - 7 6 1 3 6 a 4 5 8 0 r 7 7

n 4 2 7 4 8 1 5 2 0 - a - g 7 8 , ,

25 5 4 3 0 5 6 U 4 2 5 1 57 7 u n , p , , , , , , , , , ( - i , 2 7 6

3 1 7 4 4 Q 0 4 2 5 s e 3 7 - 1 s 0 8 8 1 8 6 9 7 4

- 7 1 S e , - , 3 4 7 3 9 4 6 4 4 p 50 5 - , , ,

, , , , , , 39 0 , 5 0 e - 3 3 2 5 7 6 0 7 4 o c 0

6 9 3 S ( r

8 7 9 9 1 8 9 2 - 3 -

( (

6 7 3 2 3

- , , ,

1 1

(

- n i

8 - e

5 4 ) ) y ) ) ) - 0 2 7 7

0 7 7 9 9 1 0 8 8 D 6 2 2 - ,

2 6 4 0 4 1 0 2 5

1 4 8 , 7 - , , , 3 2 4 2 4 1 5 1

, , , , , , , , 9 1 0 1 9 7 - - 3 6 6 1 3 0 3 5

3 3 1 5 17 8 1 , - 5 1 4 7 4 4 8 7 n - 7 4 4 0

………………………………………… … , , , 5 4 8 4 6 3 9 3 , p

u - , , , , , , , ,

6 3 0 e 5 J 0 4 7 6 8 5 3 1 - 4 0 s - S (

51 4 1

2 6 6 4 1 2 2 -

3 1 ( ( ( e 0

4 4 4 0 s

, , ,

3 e

1 1

(

upe p 2

- u R t

i R . - . ) ) ) ) )

n 3 1 4 8 9 0 - 1 1 1 6 9

0 … 1 3 9 3 7 1 1 4 0 U - - - 3

8 4 8 2 3 3 8 8 4 9

, , , , , , , , , , -

6 6

7 4 2 5 , 9 1 4 4 3 6

1 2 7 8 3 7 2 2 5 6 -

- -

6 1 3 9 0 6 6 5 7 p

54 3 , , , , , , , ( (

- , p

e 62 5

3 3 3 0 3

3 3

( , ( S - e

1 1 1 1 -

- 2 2 2 2

0 S

(

52 5 5

- 3

- i

) ) ) ) ) t 7 i - v 5 1 7 4 9 8 1 7

7 n - 2 0 7 1 3 3 5 7 a

8 - - U

9 4 , 2 3 - 8 4 6 3 6 8

e , , , , , , , ,

6 3 7

3 3 3 7 6 3 4 7

8 3 8 7

7 - W 2 8 9 6 4 1 8 , ,

, 4 6 1 9 4 8 7 1

7 - - , , , , , , ,

(

p 1

3 - 4 2 1 5 8 2

3 -

( ( (

3 2 3 43 8 72 2 -

2 n

, ,

- -

( u 5

J 8

d 3

- )

80 0

0 d ,

d e

g e 3

2 -

t n

i i

d v r 1 - a u

e - - a e ) ) ) ) ) t t

5 - 4 4 r i - 2 8 7 0 5 0 2 9 4 n 9 6

W a 4 8 3 3 5 0 6 4 - n 0 7 0 U 9 4

u , , , 2 4 4 7 5 6 1 7 ( - , , , , , , , , 1 5

0 1 0 U Q …………………………………………… … 3 8 6 7 1 7 1 - 1 6 3 4 6 5 3

0 1 0 6 2 9 9 3 , , 1 - 9 4 5

- 7 , , , … 4 7 5 4 1 3 8 6 - , , , , , , , , . p

1 8 1 9 . 0 0 8 1 3 - 5 6 7 - e 3 4 1

( ( 1 6 2 7 3 8 33 3 17 5 - S p 7 9 ( (

, , - … ,

6 1 8 - ,

, e 0

- 1 1

3 …

( S

86 2 28 1

- , 0

- 2 3

- t

i -

n ) ) ) ) ) - 4 6 3 7 0 6

5 0 4 9 U 3 - 6 4 1 9 1 5

3 7 3 9 9 5 - 9 3 7 1 0 , , , , ,

, 8 2 8 9 4 , , 0 , , , 6 - 7 1 8 8 7 9

7 5 9 6 0 1 0 0 - 9 3 4 3 8 1 1

3 3 3 0 2 - - 1 3 5 0 3 5 8 9

, , , , , , , , 7 8 4 7 3 p - , , , , ,

7 2 1 1 2 1 4 e - 6 5 3 6 7 7 2 7 3 4 7

4 7 ( S 3 1 4 1 - 1 - 5 5 7 2 8

( ( ( 9 - 26 2 , , 8 - , 0 , ,

1 1 n 3 - 3 1

( u - 6

J - 2

- 10 0 , -

0 5 -

3 - ) ) ) )

1 6 9 3 - 3 0 3 7 2 5 5

8 3 9 3 2 - 7 7 5 4 4 9 1 -

9 0 1 4 , , - , , 6 8 5 8 8 9 1

, , , , , , , e 2 6 8 3 - 6

2 0 7 2 4 6 3 4 6 0 4 - 1

2 8 6 7 3 5 2 - 1 5 2 1 - , , , ,

4 8 2 6 9 2 4 p 7 0 , , , , , , , - 2 7 0 7

e 5 Zo n 8 0 7 9 8 1 3 5 - 0 8 8 2

( S

8 6 0 1 1 2 7 0 - -

1 3 2 , (

( ,

, , 2 1 5 7

- 0

7 ,

6 ……………………………………… … 1 1

3 - 1

( - -

1 83 5

- p ,

, 3

5 e -

8 S e ) 3 - ) ) ) 37 9 3 7 4 6 5 9 9 , n 3 8 6 4 0 0 7 3 0 9 3 2 o 5 0 9 6 6 3 2 6 6 1 7 6 4 Z , , , , , , , 9 3 1 5 , , , , 7 0 7 4 5 9 3 6 2 5 7 7 4 4 8 0 7 3 6 5 9 1 0 1 4 4 6 7 5 8 2 - , , , , , , , 2 4 1 6 , , , , p 9 8 7 1 5 0 3 2 3 5 8 e 0 0 5 2 5 8 1 ( 7 4 1 2 2 S 1 1 2 9 5 8 ( ( - , , , 8 2 1 , 0 1 1 1 6 6 1 , 3 , ( 7 5 1 8 - 8 03 2 , n , 6 u 2 0 ) J ) ) ) 8 0 0 6 2 - 3 0 8 3 3 9 1 4 9 4 , 9 9 0

5 4 5 6 3 3 9 3 5 3 6 4 , , 3 , , 1 8 4 9 2 0 9 g , , , , , , , 2 2 2 8 0 3 5 7 3 2 9 n 6 9 1 8 2 6 3 i 0 5 2 3 2 4 - 1 9 4 9 1 , , , , 8 0 9 5 0 2 7 - , , , n , , , , e 8 7 9 6 p 9 1 8 4 8 4 8 2 7 n 1 9 ( ( ( e

4 8 5 3 i

2 9 2 5 S 0 4

7 3 5

(

1 8

Zo n

7 S 8 3

, ,

7 )

2 - g

9 n - 77 4 t

n p ,

i , i E

e 5 d e n 0 r n u 0 n 1 ) ) e ) ) S i 4 9 6 1 6 5 2 a o t 4 - 7 8 1 9 3 p , Z 7 4 7 5 2 1 0 r 0 7 8 n - 7 5 S 4 9 9 4 2 8 3 3 , , , , , , , 2 3 7 8 6 U u a , , , , ( 4 7 2 2 1 2 4 7 9 2 2 7 Q 8 9 4 9 5 7 9 0 8 2 1 1 9 0 4 1 6 0 0 - , , , , , , , 2 4 4 9 , , , , p 8 9 8 9 1 7 0 0 5 6 1 e 9 4 4 5 6 8 1 ( ( 6 1 S 2 1 8 9 8 0 ( - , 0 , 1 8 0 1 1 3 8 2 ( , , 7 1 1 7 - 5 52 9 , n , 0 u 1 ) ) ) ) 5 8 3 0 0 J 2 8 3 6 9 1 9 5 - 1 1 7 3 3 1 9 8 2 2 0 1 4 , 0 5 0 8 7 , , , , 4 2 7 3 4 9 6 6 , , , , , , , 3 6 3 8 1 6 1 3 9 2 3 7 0 7 2 7 6 6 0 9 5 1 8 7 1 1 4 1 4 1 , , , , - 3 0 3 3 1 5 9 - , , , , , , , 4 9 6 2 p e 5 7 3 2 0 4 7 8 1 4 9 ( e

3 2 3 0 9 3

6 4 ( ( S

, , 5 1 3 1

8 0 , ,

1 1

0 1 7 1

( Zo n 3

9 3

- -

4 40 6 p , e , s n 7 e 0 ) ) o ) ) 2 2 4 7 8 9 4 5 6 S Z 7 8 0 8 5 - 5 2 3 7 3 3 1 4 , 8 3 8 1 3 8 2 0 1 1 3 0 , , , , , , , 6 7 2 9 2 , , , , i 3 9 1 0 0 2 4 0 7 2 1 3 5 6 b 9 0 0 9 1 0 1 2 8 7 5 - 9 8 0 3 1 1 3 a , , , , , , , 2 7 0 8 i p , , , , l 7 2 3 3 9 9 6 e

1 1 7 8 7 8 7 4 9 2 1 ( S 2 4 4 d - 1 8 3 2 1 2 ( ( , , , 1 0 , n 1 2 2 3 2 a ( s t e s s s t a n

d t t s e e t t e n a n m e e c e g o h l m l t s e

a m g s e n

e g e e u e c s N e

l h s n s s e

b O

n d l a e I a e a l s e b l T n c a n a b e t n b A o s : a

p r t a port s r x e l ts o a n ts M c e e e e a x

e p s s i e r : n a b n t p d R b s

e g t e

port s i

a r a e n s s t l r r m g n i l s s

a e i s O i n e a l o t

e e f e n r

a r f m a e i s e b n F ) e

s w s

o p l s p o p e e b s r o c n f

e a s s s

o s t x t m t u N b i e r e s n o - v k e n l a o e e s I a a r o f

a l a v p

i b e i a s a c k

r r ( o n n e x

o t t

x r v e i n t c n n d s d T i i )

v a e s

o i o a /

i i b i e s t l l t s a s

n t f

e e i i

n s t s n

p e p b e e m d N a e t t d r

m l a e r r o e o m b c o b t o e m m s l n r r e m E

a a a s m d c r p ( r o ﬁ t l c t o o r e il i s a a

a r g s n l r

s x d c c a o s i i

a u n n c r c e e c e / i e

te l o a f l c a e i a p t e a e p c c b

M o o

s t

r r r n n o o n i

l l

x - r r t t

l l t l s o l

t u n l i s l l r r m r l t E e L e e e e r r r a G ﬁ ﬁ o g t g h e a

a a a a e e o s m o s a a x l - h - h t s o t c t t c o o t h h h t s n c E n n t t r n a o d r r a x a i t t t n n h c n e o o o n o o S o G C T I E S D i O U F O A i P P L T U O Sh o U S O Ca R L O T T A T . . 1 . 3 3 1 1 18 Nishat Chunian Limited SELECTED NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL INFORMATION (UN-AUDITED)

For the quarter ended September 30, 2017

14. TRANSACTIONS WITH RELATED PARTIES

The related pares comprise subsidiary companies, associated undertakings, other related companies, key management personnel and post employment benefit plan. The Company in the normal course of business carried out transacons with various related pares. Details of transacons with related pares, other than those which have been specifically disclosed elsewhere in these financial statements are as follows:

Un-audited Un-audited Quarter Ended Quarter Ended September 30, September 30, 2017 2016 Rupees Rupees Subsidiary companies Sale of Goods 249, 5641,049 30,169,686 Purchase of Goods 643,-857,517 Dividend income -3 28,275,185 Common facilies cost charged 4,4800,000 ,800,000 Disbursement of loans 1,463,107,000 600,000,000 Repayment of loans 2,073,099,238 - Mark-up on short term loans 7, 380,485 262,951 Associated company Insurance premium paid 29,422,022 30,150,911 Insurance claims received 1, 3324,875 ,921,205 Donaon paid 396,241 3,357 Other related pares Purchase of goods 710,175 27,248,287 Sale of goods 379,2312,392 31,832,335 Contribuon to employees' provident fund 26,308,074 24,168,278

Period end balances Un-audited Audited Quarter Ended Year Ended September 30, June 30, 2017 2017 Rupees Rupees

Due to subsidiary company 482,571 33,655,628 Due from subsidiary company 501,454,961 507,035,834 Short term loan receivable from subsidiary company 173,500,000 783,492,238 Mark-up receivable on loans made to subsidiary company 10,4825,128 ,483,425 Bank balances with related party 15,036,853 12,379,012 Due from related pares other than subsidiary company 60,271,874 69,615,588 Due to related pares other than subsidiary company 15,901,769 -

15. FINANCIAL RISK MANAGEMENT

The Company's ﬁnancial risk management objecves and polices are consistent with those disclosed in the preceding audited annual published ﬁnancial statements of the Company for the year ended 30 June 2017.

16. CORRESPONDING FIGURES

In order to comply with the requirements of Internaonal Accounng Standard (IAS) 34 'Interim Financial Reporng', the unconsolidated condensed interim balance sheet and unconsolidated condensed interim statement of changes in equity have been compared with the balances of annual audited financial statements of preceding financial year, whereas the unconsolidated condensed interim profit and loss account, unconsolidated condensed interim statement of comprehensive income and unconsolidated condensed interim cashflow statement have been compared with the balances of comparable period of immediately preceding financial year. Corresponding figures have been rearranged / regrouped wherever necessary forNishat the purp Chunianose of compa Limitedrison. 19 However, no significant rearrangements / regroupings have been made.

17. DATE OF AUTHORIZATION FOR ISSUE

This unconsolidated condensed interim ﬁnancial informaon was approved by the Board of Directors and authorized for issue on October 26, 2017.

______Director Chief Financial Oﬃcer Director 14. TRANSACTIONS WITH RELATED PARTIES

Un-audited Un-audited Quarter Ended Quarter Ended September 30, September 30, 2017 2016 Rupees Rupees Subsidiary companies Sale of Goods 249,5641,049 30,169,686 Purchase of Goods 643,-857,517 Dividend income -3 28,275,185 Common facilies cost charged 4, 4800,000 ,800,000 Disbursement of loans 1,463,107,000 600,000,000 Repayment of loans 2,073,099,238 - Mark-up on short term loans 7, 380,485 262,951 Associated company Insurance premium paid 29,422,022 30,150,911 Insurance claims received 1, 3324,875 ,921,205 Donaon paid 39 6,241 3,357 Other related pares Purchase of goods 710,175 27,248,287 Sale of goods 379,2312,392 31,832,335 Contribuon to employees' provident fund 26,308,074 24,168,278

Period end balances Un-audited Audited Quarter Ended Year Ended September 30, June 30, 2017 2017 Rupees Rupees

Due to subsidiary company 482,571 33,655,628 Due from subsidiary company 501,454,961 507,035,834 SELECTED NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL INFORMATION Short term loan receivable from subsidiary company 173,500,000 783,492,238 (UN-AUDITED) Mark-up receivable on loans made to subsidiary company 10,4825,128 ,483,425 Bank balances with related party 15,036,853 12,379,012 For tDuhee q fruomar rteelatr edended pare Sse otheptembr theanr 30,subs 2017idiary company 60,271,874 69,615,588 Due to related pares other than subsidiary company 15,901,769 -

15. FINANCIAL RISK MANAGEMENT

16. CORRESPONDING FIGURES

In order to comply with the requirements of Internaonal Accounng Standard (IAS) 34 'Interim Financial Reporng', the unconsolidated condensed interim balance sheet and unconsolidated condensed interim statement of changes in equity have been compared with the balances of annual audited financial statements of preceding financial year, whereas the unconsolidated condensed interim profit and loss account, unconsolidated condensed interim statement of comprehensive income and unconsolidated condensed interim cashflow statement have been compared with the balances of comparable period of immediately preceding financial year. Corresponding figures have been rearranged / regrouped wherever necessary for the purpose of comparison. However, no significant rearrangements / regroupings have been made.

17. DATE OF AUTHORIZATION FOR ISSUE

This unconsolidated condensed interim ﬁnancial informaon was approved by the Board of Directors and authorized for issue on October 26, 2017.

______Director Chief Financial Oﬃcer Director

20 Nishat Chunian Limited NISHAT (CHUNIAN) LIMITED AND ITS SUBSIDIARY COMPANIES

CONSOLIDATED CONDENSED INTERIM FINANCIAL INFORMATION

FOR THE QUARTER Ended SEPTEMBER 30, 2017 (UN-AUDITED)

Nishat Chunian Limited 21 Consolidated Condensed Interim Balance Sheet as at SEPTEMBER 30, 2017

Un-audited Audited September 30, June 30, Note 2017 2017 Rupees Rupees EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES

Authorized share capital 3,000,000,000 3,000,000,000

Issued, subscribed and paid-up share capital2 ,402,215,560 2, 402,215,560 Reserves 121,854,463,307 2,541,748,839 Equity aributable to equity holders of the Holding Company 151,256,678,867 4,943,964,399 Non-controlling interest 4,4927,835,471 ,489,481,958 Total equity 201,184,514,338 9,433,446,357

LIABILITIES

NON-CURRENT LIABILITIES

Long term ﬁnancing 131,818,729,595 3,518,998,245 Deferred Income Tax liability 29, 687,846 29,687,845 131,848,417,441 3,548,686,090 CURRENT LIABILITIES

Trade and other payables 3,2160,510,389 ,190,189,285 Accrued mark-up 458, 292,682 506 ,797,544 Short term borrowings1 29,450,985,671 1,474,756,918 Current poron of long term ﬁnancing4 4,698,346,918 ,174,666,224 272,768,135,660 8,346,409,971 TOTAL LIABILITIES 414,616,553,101 1,895,096,061

CONTINGENCIES AND COMMITMENTS

TOTAL EQUITY AND LIABILITIES 616,801,067,439 1,328,542,418

The annexed notes form an integral part of this consolidated condens ed i nt er im -ﬁ - nancia l in fo rm a on .

______Director Chief Financial Oﬃcer Director As per reference to section 232 of companies act 2017, this consolidated condensed interim financial information has been signed by two directors instead of chief executive and one director, as the chief executive is for the time being not in Pakistan.

22 Nishat Chunian Limited Consolidated Condensed Interim Balance Sheet as at SEPTEMBER 30, 2017

Un-audited Audited September 30, June 30, Note 2017 2017 Rupees Rupees ASSETS NON-CURRENT ASSETS

Fixed assets 29,594,219,216 29,850,096,142 Long term loans to employees 22,470,453 20,847,814 Long term security deposits 22,339,440 22,339,440 29,639,029,109 29,893,283,396

CURRENT ASSETS

Stores, spare parts and loose tools1 ,402,983,190 1,222,827,106 Stock-in-trade 10,200,209,555 10,083,409,106 Trade debts 14,990,361,561 13,916,760,930 Loans and advances 1,327,639,983 1,320,638,807 Short term deposit and prepayments5 2,093,882 32,099,574 Other receivables4 ,048,587,203 4,580,174,905 Short term investments3 1,343,115 32,294,160 Cash and bank balances 108,819,841 247,054,434

32,162,038,330 31,435,259,022

TOTAL ASSETS 61,801,067,439 61,328,542,418 -

______Chief Financial Oﬃcer Director Nishat Chunian Limited 23 Consolidated Condensed Interim Profit and Loss Account (UN-AUDITED)

For the quarter ended September 30, 2017

Quarter Ended September 30, September 30, 2017 2016 Rupees Rupees SALES1 13,330,345,558 0,700,269,696 COST OF SALES( 11,510,403,563) (8 ,822,242,729) GROSS PROFIT 1, 1819,941,995 ,878,026,967

DISTRIBUTION COST( (246,485,692) 228,382,811) ADMINISTRATIVE EXPENSES ( (105,563,837) 88,466,150) OTHER OPERATING EXPENSES (1 (0,326,127) 44,891,585) ( (362,375,656) 361,740,546) 1, 1457,566,339 ,516,286,421 OTHER OPERATING INCOME 27, 881,408 61, 097,025 PROFIT FROM OPERATIONS 1, 1485,447,747 ,577,383,446

FINANCE COST ( (655,105,677) 498,935,747) PROFIT BEFORE TAXATION 830, 342,070 1,078,447,699 TAXATION (7 (9,347,117) 103,609,154)

PROFIT AFTER TAXATION7 50,994,953 974, 838,545

PROFIT ATTRIBUTABLE TO:

EQUITY HOLDERS OF THE HOLDING COMPANY 312, 641,440 614, 823,206 NON-CONTROLLING INTEREST 438, 353,513 360, 015,339 750, 994,953 974, 838,545

EARNINGS PER SHARE - BASIC & DILUTED 1. 2 30 .5 6

The annexed notes form an integral part of this consolidated condensed interim ﬁnancial informaon.

24 Nishat Chunian Limited Consolidated Condensed Interim Statement Of Comprehensive Income (UN-AUDITED)

For the quarter ended September 30, 2017

Quarter Ended September 30, September 30, 2017 2016 Rupees Rupees

PROFIT AFTER TAXATION 750,994,953 974,838,545

OTHER COMPREHENSIVE INCOME 73,028 13,347

TOTAL COMPREHENSIVE INCOME FOR THE YEAR 751,067,981 974,851,892

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:

EQUITY HOLDERS OF THE HOLDING COMPANY 312,714,468 614,836,553 NON-CONTROLLING INTEREST 438,353,513 360,015,339 751,067,981 974,851,892

The annexed notes form an integral part of this consolidated condensed interim ﬁnancial informaon.

Nishat Chunian Limited 25 Consolidated Condensed Interim Cash Flow Statement (UN-AUDITED)

For the quarter ended September 30, 2017

Quarter Ended September 30, September 30, Note 2017 2016 Rupees Rupees

CASH FLOWS FROM OPERATING ACTIVITIES

Cash generated from operaons 62 ,148,269,285 2, 378,100,531 Net increase in long term security deposits - 50, 000 Finance cost paid (7 03,610,539) (5 01,372,976) Income tax paid ( 50,964,498) 92 ,130,732 Long term loans to employees( 1,622,639) (1 ,191,479) Net cash generated from operang acvies 1, 392,071,609 1, 967,716,808

CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditure on property, plant and equipment( 340,601,644) (7 20,630,554) Capital expenditure on intangible assets ( 700 ,049) (2 ,383,784) Proceeds from sale of property, plant and equipment2 ,484,434 ( 34,302,711) Short term investments made 951, 045 ( 10,401,142) Proﬁt on bank deposits received 7, 984,539 886, 828

Net cash used in invesng acvies (3 29,881,676) (7 66,831,363)

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from long term financing 2, 076,300,000 486,872,595 Repayment of long term financing (1 ,252,887,956) (6 99,275,943) Short term borrowings - net( 2,023,771,247) (6 44,933,158) Dividend paid to non-controlling interest ( 136,951) (3 00,923,597) Dividend paid (1 ,400) (5 5,999) Net cash used in financing acvies (1,200,497,554) (1,158,316,102)

Net (decrease) / increase in cash and cash equivalents (1 38,307,621) 42 ,569,343 Impact of exchange translaon 73, 028 13, 347 Cash and cash equivalents at the beginning of the year 247 ,054,434 76 ,113,994

Cash and cash equivalents at the end of the year 108 ,819,841 118,696,684

The annexed notes form an integral part of this consolidated condensed interim ﬁnancial informaon.

26 Nishat Chunian Limited Consolidated Condensed Interim Statement Of Changes In Equity (UN-AUDITED)

For the quarter ended September 30, 2017 90) 57) 35 7 981 12 8 892 33 8 02 0 584 TY ,8 ,3 67, 51, 446, 758, 514, 553 610, 283 673, ,0 ,8 L EQ UI 00, 39, 433, 751 654, 974 184, 629, 943, (6 (5 TA 2, Director 19, 16, 20, 17, TO

______

958 513 251 339 471 590 357) 725 NG ST 53, 15, 08, LLI 481, 941, 835, 956, 283, N- RO TERE 38 ,3 60 ,0 05 ,8 NO 489, 562, 927, 922, 539, ,1 NT IN 4, 3, 4, 3, CO

' 39 9 46 8 87 7 55 3 86 7 890) 43 0 85 9 DERS 14, 36, TY 964, 7 816, 8 678, 553, 653, 864, OL UI EH 943, 312, 091, 614, 256, 600, 706, 837, EQ 4, 3, 5, 3, 1, AR SH

( 1 40 06 38 953 199 393 890) 405 ,4 ,2 l 53, 30 ,4 230, 641 031, 823 872, 854, ta ,5 ,9 To 42, 12, 90, 14, 54, 04, 600 837 1, 11 ,9 10 ,0 12 ,2 10 ,7 1

1 ( 1 -

ES Y 40 21 06 27 38 ed RV 67 5 11 5 890) ,4 ,2 at SE t 09 ,9 53, 33 ,1 30 ,4 009, 641 823 651, ,8 ,5 ,6 ,9 MPAN op ri oﬁ E RE 13, 12, 14, 25, pr CO 3 460 6 600 075 837 ppr , , , NU a 0, 0, G VE IN

Un 3

(

RE LD 78 78 78 78 l e ra 21 ,2 21 ,2 21 ,2 21 ,2 rv THE HO ,2 ,2 ,2 ,2 ne se OF S Ge Re 629 629 629 629 1, 1, 1, 1, 1 3 8 6 1 ( 9 - 1 LDER HO m - - - 890 890 890 890 iu TY UI 53, 53, 53, 53, em ,5 ,5 ,5 ,5 Pr e EQ e rv 600 600 600 600 ar se Chief Financial Oﬃcer

- -

- - - LE TO Sh ______. Re l AB ) ) ) on by two directors instead of chief executive and one director, as the is for time being not in Pakistan. ta

UT pi a - - on 004) 772 02 8 34 7 976 425 579) e ge IB Ca 5, rv rm a 83, 73, 13, 62, 70, an TR (6 036, sl fo se , (9 (9 (9 ch AT in (1 Re l Ex Tran ia

- -

nc na t ﬁ ------y im posi er De nt e i Mone ar ed Sh

ns nde l ta - - - - - 56 0 56 0 56 0 56 0 co pi ed Ca 215, 215, 215, 215, at e lid ar 402, 402, 402, 402, 2, 2, 2, 2, Sh

onso c d) d) is h te te 016 t er er di di 2 of rt rt t st au au ar une re qua qua J p d) d) un- un- e e e te ( ( al 30 te te - -

in th th th gr r r r g ed udi udi te 017 016 fo fo fo 2017 (a (a nd llin

2 2 in e e e - - e n ro 30, 30, 30,

om om a om ar nt e r r nc nc nc 2016 2016 ye 2017 2016 ar rm co

be be i i i une e J sh fo ve ve 30, 30, ve 30, 30, d s th

y em em r r si si non- si r ar pt pt o be be fo en en en nde une une in t note Se Se h h h e J J

rd id d nd em em re re re at at at at O pa pt pt xe de as as as as mp mp 5/ mp vi Se Se onths e e e e nd 2. co co co nne di d d Director . m l l l nc nc nc a l nc de Rs la ta ta la la e la ta vi ne na nde nde Ba ______A s per reference to section 232 of companies act 2017, this consolidated condensed interim financial information has been signed To To e Ba e Ba Th @ Di Fi To ni Ba

Nishat Chunian Limited 27 Selected Notes to the Consolidated Condensed Interim Financial Information (UN-AUDITED)

For the quarter ended September 30, 2017

1. GROUP INFORMATION

The Group consists of:

Holding Company-Nishat (Chunian) Limited

Subsidiary Companies -Nishat Chunian Power Limited -Nishat Chunian USA Inc. -NC Electric Company Limited -NC Entertainment (Private) Limited

Nishat (Chunian) Limited

Nishat (Chunian)Limited (“theHolding Company”)isapublic limitedCompany incorporated in Pakistan under theCompanies Ordinance, 1984 andislistedonthe PakistanStock Exchange Limited. It's registered oﬃce is situated at 31-Q,Gulberg II, Lahore. TheCompany is engagedinbusinessofspinning, weaving, dyeing,prinng,stching, processing,doubling, sizing, buying, sellingand otherwisedealing in yarn,fabrics andmade-ups made from rawcoon,synthecﬁbre, clothand to generate, accumulate, distribute, supply and sell electricity.

Nishat Chunian Power Limited

Nishat Chunian Power Limited(“the Subsidiary Company”)isapublic limitedCompany incorporated in Pakistan underthe CompaniesOrdinance,1984 andlistedonthe PakistanStock Exchange (Guarantee) Limited. Theprincipal acvityofthe Subsidiary Companyisto build,own,operate andmaintainafuel fired powerstaonhavinggross capacity of 200MWand net capacity of 195.722 MW at Jamber Kalan, Tehsil Paoki, District Kasur, Punjab,Pakistan. Itsregisteredofficeissituatedat31-Q, GulbergII, Lahore.The Subsidiary Companyhas commencedcommercialoperaons from 21 July 2010 andthe twenty fiveyears term of the Power Purchase Agreement (PPA) with Naonal Transmission and Despatch Company Limited starts from this date.

Nishat Chunian USA Incorporaon Nishat Chunian USAInc.isaforeignsubsidiaryincorporated under theBusinessCorporaonLawsofthe StateofNew York.The registered oﬃce of Nishat Chunian USAInc.issituatedatSuite No.639, 7West, 34th Street NewYork, NY 10001, USA. The principal business of the Subsidiary Company is to import home texle products and distribute to local retailers.

NC Electric Company Limited NC Electric CompanyLimited is a public limited companyincporporated in Pakistanon18April 2014 underthe Companies Ordinance, 1984. TheCompany is awholly ownedsubsidiaryofNishat(Chunian) Limited. It's registered oﬃce is situated at 31- Q, Gulberg II, Lahore.The principalobjects of theCompany aretodevelop,design, construct, ownand acquire coal powered powergeneraon complexesand thermal,hydel, solarand wind energy projects in Pakistanand to carryonthe business of electricity generaon, transmission and distribuon in Pakistan.

NC Entertainment (Private) Limited NC Entertainment (Private) Limited is registered under the Companies Ordinance, 1984 as a company limited by shares on 31 January 2014. The registered oﬃce of NC Entertainment (Private) Limited is situated at 31-Q, Gulberg II, Lahore. The main objecve of NC Entertainment (Private) Limited is to construct and/or operate cinemas, theatres and studios.

2. BASIS OF PREPARATION

This consolidated condensedinterim financial informaon is un-auditedand is beingsubmied to shareholders as requiredby secon 245 of theCompanies Ordinance, 1984. This consolidated condensed interimfinancialinformaonofthe Groupfor the quarterended 30 September 2017 hasbeenpreparedinaccordance with therequirementsofthe Internaonal Accounng Standard (IAS)34"InterimFinancial Reporng"and provisions of anddirecves issued under theCompanies Ordinance, 1984.In case whererequirementsdiffer,the provisions of or direcvesissued under theCompanies Ordinance, 1984 have been followed. This consolidated condensedinterim financial informaon should be read in conjuncon with theaudited annual published financial statements of the Group for the year ended 30 June 2017.

28 Nishat Chunian Limited Selected Notes to the Consolidated Condensed Interim Financial Information (UN-AUDITED)

For the quarter ended September 30, 2017

3. ACCOUNTING POLICIES

Theaccounng policiesand methodsofcomputaons adoptedfor thepreparaonofthisconsolidatedcondensed interim ﬁnancial informaon are the same as applied in the preparaon of the preceding audited annual published ﬁnancial statements of the Group for the year ended 30 June 2017.

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS Thepreparaonofthisconsolidatedcondensed interimﬁnancialinformaoninconformitywiththe approved accounng standardsrequiresthe useofcertain cricalaccounng esmates.Italsorequiresthe management to exercise itsjudgment in theprocess of applying theGroup's accounng policies.Esmatesand judgmentsare connually evaluatedand arebased on historical experience andother factors, including expectaonsoffutureeventsthatare believed to be reasonable underthe circumstances.

During preparaon of this consolidated condensedinterim financial informaon,the significantjudgmentsmadebythe management in applying theGroup’saccounng policies andthe keysources of esmaon and uncertainty were thesameas thosethatappliedinthe precedingauditedannualpublished financial statements of theGroup forthe year ended30June 2017.

5. CONTINGENCIES AND COMMITMENTS

Holding Company

Conngencies

Thereisnosigniﬁcantchangeinthe status of conngencies as disclosedinthe precedingauditedannualﬁnancialstatementsof the Company for the year ended 30 June 2017 except for the following:

i) Guarantees of Rupees 196 million(30 June 2017: Rupees 196million) have been issued by thebanks of thecompany to Director, Excise and Taxaon, Karachi against disputed amount of infrastructure cess.

ii) Guarantees of Rupees 332.333 million(30 June 2017: Rupees 329.388million) have been issued by thebanks of thecompany to SuiNorthernGas Pipelines Limitedagainst gasconnecons, ShellPakistanLimited against purchaseoffurnace oil, Lahore Electric Supply Company Limited against electricity connecons and Nazir (The Honorable High Court of Sindh).

iii) Post datedcheques have been issued to custom authories in respectof dues amounng to Rupees 2511.104 million(30 June 2017: Rupees 2,328.471 million) on imported material availedonthe basisofconsumponand export plans. In theevent the documents of exports are not provided on due dates, cheque issued as security shall be encashable.

Commitments

i) Commitments in respect of capital expenditure are Rupees 161.970 million (30 June 2017: Rupees 49.228 million).

ii) Leers of credit other than for capital expenditure are Rupees 579.451 million (30 June 2017: Rupees 1,318.171 million). iii) Outstanding foreign currency forward contracts of Rupees 1,919.018 million (30 June 2017: Rupees 4,940.270 million).

Subsidiary Company

Conngencies

There is no significant change in conngencies from the preceding annual published financial statements of the company for the year ended June 30, 2017 except a leer of guarantee of Rs. 500,000 issued in favour of Punjab Revenue Authority, Lahore under direcon of Lahore High Court in respect of suit filed for levy of infrastructure cess. Un-audited Audited Quarter endedYear ended September 30,June 30, 2017 2017 Commitments Rupees Rupees Nishat Chunian Limited 29 Leer of credit other than for capital expenditure 262,010,211 38,068,101

Un-audited Un-audited Quarter endedQuarter ended September 30,September 30, 2017 2016 Rupees Rupees 6. CASH (USED IN) / GENERATED FROM OPERATIONS

5. CONTINGENCIES AND COMMITMENTS

Holding Company

Conngencies

Thereisnosigniﬁcantchangeinthe status of conngencies as disclosedinthe precedingauditedannualﬁnancialstatementsof the Company for the year ended 30 June 2017 except for the following:

i) Guarantees of Rupees 196 million(30 June 2017: Rupees 196million) have been issued by thebanks of thecompany to Director, Excise and Taxaon, Karachi against disputed amount of infrastructure cess.

Commitments

i) Commitments in respect of capital expenditure are Rupees 161.970 million (30 June 2017: Rupees 49.228 million).

Subsidiary Company

SelectedConngenci esNotes to the Consolidated Condensed Interim Financial Information (UN-AUDITED) There is no significant change in conngencies from the preceding annual published financial statements of the company for For ththe eye qaru earndeted Jrune ended 30, 2017 Se expteceptmb a elere 30,r of 2017 guarantee of Rs. 500,000 issued in favour of Punjab Revenue Authority, Lahore under direcon of Lahore High Court in respect of suit filed for levy of infrastructure cess. Un-audited Audited Quarter endedYear ended September 30,June 30, 2017 2017 Commitments Rupees Rupees

Leer of credit other than for capital expenditure 262,010,211 38,068,101

Un-audited Un-audited Quarter endedQuarter ended September 30,September 30, 2017 2016 Rupees Rupees 6. CASH (USED IN) / GENERATED FROM OPERATIONS

Profit before taxaon 830,342,070 1,078,447,699 Adjustment for non cash charges and other items: Provision for employee rerement1 ,838,490 1,784,907 Depreciaon on operang assets 590,883,211 488,977,321 Amorzaon on intangible assets 2,377,776 1, 551,777 (Gain) / loss on sale of operang fixed assets (1,217,985) 44,545,771 Interest on bank deposits (7,984,539) (886,828) Unrealised gain on derivave financial instrument - (1,713,049) Finance costs 655,105,677 498,935,747 (Increase) / decrease in current assets -Ca Sshto reflos,ws spa frreom p opartser aandng loose acv tiesools before working capital changes 2, (1 (071,80,156344,,070841) 2, 103 111,,8643,22,633345) - Stock in trade( 3116,800,449) 41,634,117 - Trade debts (1(,073,600,631) 852 ,799,564) - Loans and advances (7 ,001,176) 108, 210,690 - Short term deposits and prepayments( (19,043,263) 183 ,846,098) - Other receivables 5 03,205,083 45, 528,502 Increase in current liabilies - Trade and other payables 9 970,321,104 11,552,172 76 2,924,584 66,457,186 Net cash generated from operaons 2, 2148,269,285 ,378,100,531

7. TRANSACTIONS WITH RELATED PARTIES

Therelated pares comprise of associated undertakings,other relatedcompanies,key management personneland post employment benefit plan.The Groupinthe normal course of business carried outtransacons with variousrelated pares. Detailsoftransacons with relatedpares, otherthanthose whichhavebeenspecifically disclosedelsewhere in these consolidated financial statements are as follows:

Un-audited Un-audited Quarter endedQuarter ended September 30, September 30, 2017 2016 Rupees Rupees

Associated company Insurance premium paid 80 ,873,275 30, 150,911 Insurance claims received1 ,3324,875 ,921,205

Other related pares Purchase of goods7 10, 175 27, 248,287 30 SaNishatle of good Chunians Limited 3 79,2312,392 31,832,335 Contribuon to employees' provident fund 28 ,146,074 25, 843,237

Un-audited Audited Quarter endedYear ended September 30, June 30, 2017 2017 Rupees Rupees Period end balances

Bank balances with related party 17 ,003,283 31, 379,010 Due from related pares6 0,271,874 69, 615,588 Due to related pares1 5,-901,769

8. CORRESPONDING FIGURES

Corresponding ﬁgures have been rearranged /regroupedwherevernecessary forthe purposeofcomparison. However, no signiﬁcant rearrangements / regroupings have been made.

9. DATE OF AUTHORIZATION FOR ISSUE This consolidated condensed interim ﬁnancial informaon was approved by the Board of Directors and authorized for issue on October 26, 2017.

______Director Chief Financial Oﬃcer Director (Increase) / decrease in current assets - Stores, spare parts and loose tools (1 (80,156,084) 103 ,822,633) - Stock in trade( 116,3800,449) 41,634,117 - Trade debts (1 (,073,600,631) 852 ,799,564) - Loans and advances (7 ,001,176) 108, 210,690 - Short term deposits and prepayments( 19,(043,263) 183 ,846,098) - Other receivables 5 03,205,083 45, 528,502 Increase in current liabilies - Trade and other payables 9 70,9321,104 11,552,172 76 2,924,584 66,457,186 Net cash generated from operaons 2, 2148,269,285 ,378,100,531

7. TRANSACTIONS WITH RELATED PARTIES Selected Notes to the Consolidated Condensed Interim Financial Information Therelated pares comp rise of associ ated undertak ings,other re latedcompani es,key mana ge me nt pe rs(UN-onneAUDITED)land post employment benefit plan.The Groupinthe normal course of business carried outtransacons with variousrelated pares. Detailsoftransacons with relatedpares, otherthanthose whichhavebeenspecifically disclosedelsewhere in these For the quarter ended September 30, 2017 consolidated financial statements are as follows:

Un-audited Un-audited Quarter endedQuarter ended September 30, September 30, 2017 2016 Rupees Rupees

Associated company Insurance premium paid 80 ,873,275 30, 150,911 Insurance claims received1 3 ,324,875 ,921,205

Other related pares Purchase of goods7 10, 175 27, 248,287 Sale of goods 3 279,312,392 31,832,335 Contribuon to employees' provident fund 28 ,146,074 25, 843,237

Un-audited Audited Quarter endedYear ended September 30, June 30, 2017 2017 Rupees Rupees Period end balances

Bank balances with related party 17 ,003,283 31, 379,010 Due from related pares6 0,271,874 69, 615,588 Due to related pares1 -5,901,769

8. CORRESPONDING FIGURES

Corresponding ﬁgures have been rearranged /regroupedwherevernecessary forthe purposeofcomparison. However, no signiﬁcant rearrangements / regroupings have been made.

9. DATE OF AUTHORIZATION FOR ISSUE This consolidated condensed interim ﬁnancial informaon was approved by the Board of Directors and authorized for issue on October 26, 2017.

______Director Chief Financial Oﬃcer Director

Nishat Chunian Limited 31 INVESTORS’ EDUCATION In pursuance of SRO 924(1)/2015 dated September 9th, 2015 issued by the Securities and Exchange Commission of Pakistan (SECP), the following informational message has been reproduced to educate investors:

32 Nishat Chunian Limited Nishat Chunian Limited 33 CrossMedia | 0333 4501684 34 Nishat Chunian Limited