This report is written on The Kohinoor Textile Mills Ltd(KTML) which is a part of The Kohinoor Mills Ltd (KML). From a cotton export house, the KML has grown into a premier business group of Pakistan with 5 listed companies, concentrating on 3 core businesses; Textiles, Cement and Power Generation.

1. THE KOHINOOR
TEXTILE MILLS
LIMITED (KTML)
March’2015 Long Report

2. 1
PREPARED FOR:
BUSINESS COMMUNICATION,
DEPARTMENT OF MANAGEMENT SCIENCES,
THE TEXTILE INSTITUTE OF PAKISTAN
PREPARED BY:
HAMZA KHALID
DATED:
March 15th, 2015

3. 2
LETTER
March 15th, 2015
TO: Department Of Management Sciences (TIP)
FROM: Falah Shaikh
SUBJECT: Report on The Kohinoor Textile Mills Ltd.
Following is the report on The Kohinoor Textile Mills Limited as per the requirement of our
course, Business Communication, at The Textile Institute of Pakistan.
The report includes details on various areas including performance, production, core values, and
financial analysis.
The company’s aim is to become and then remain the most progressive and profitable company
in Pakistan in terms of industry standards and stakeholders interest.
Thank you for allowing me the opportunity to participate in this worthwhile study of one of the
leading textile mills of Pakistan. I hope the report fulfils all the desired requirements and meets
your satisfaction.
Regards,
Falah Shaikh

4. 3
LETTER OF AUTHORIZATION
This report is required by The Textile Institute of Pakistan for the course Business
Communication.
To compile this report, I went through annual reports and articles. I have also benefitted from the
company’s website and other sites on the internet.
It is my duty to acknowledge the assistance and support extended to me by Sir Abdur Rehman
along with the aid I received from the above listed sources.
I have concluded that The Kohinoor Textile Mills Ltd (KTML)is one of the most successful and
leading textile mills of Pakistan. KTML encourages team work.
Falah Shaikh

5. 4
TABLE OF CONTENTS
Letter.............................................................................................................. 2
Letter of Authorization............................................................................... 3
Executive Summary..................................................................................... 6
Introduction .................................................................................................. 7
History; Vision; Mission..........................................................................7-8
Board of Directors ..................................................................................9-11
Introduction to the Code .................................................................... 12-14
-Core Values ...............................................................................................12
-Business Culture ................................................................................. 12-13
 Operations .........................................................................................12
 Abidance of Law...............................................................................12
 Corporate Reporting and Internal Controls ..............................13
 Integrity and Confidentiality .........................................................13
-Responsibilities.................................................................................... 13-14

6. 5
 Shareholders......................................................................................13
 Customers ..........................................................................................13
 Employees..........................................................................................14
 Environment and Social Responsibility.......................................14
Objectives....................................................................................................15
Products/Services................................................................................. 16-18
 Kohinoor Weaving Division...........................................................16
 Kohinoor Dyeing Division ..............................................................17
 Kohinoor Genertek Divion.............................................................17
Future outlook............................................................................................19
Appendix
 FY14 Post Result Analysis by Pearl Securities Ltd...................20
 Kohinoor Textile Mills record textile earnings
& rising Portfolio – Sherman Research................................. 21-22
Index.............................................................................................................23
Glossary ................................................................................................. 24-28
Bibliography ...............................................................................................29

7. 6
EXCECUTIVE SUMMARY
This report is written on The Kohinoor Textile Mills Ltd(KTML) which is a part of The
Kohinoor Mills Ltd (KML). From a cotton export house, the KML has grown into a premier
business group of Pakistan with 5 listed companies, concentrating on 3 core businesses; Textiles,
Cement and Power Generation.
This report provides detailed information about the leading textile company,which includes its
history, company profile, mission and vision statement, aims and objectives, values and an
analysis of the current and future outlook.
The report finds the prospectus of the company in its current position to be positive. The
company not only tries to fulfil its mission and vision i.e. to become and then remain as the most
progressive and profitable company in Pakistan in terms of industry standards and stakeholders
interest but also fulfils its social responsibilities.
Pakistan is one of the countries that are known for its textiles. Pakistan has a huge number of
huge textile mills that produce great quality products, amongst which The Kohinoor Textile
Mills Ltd is listed in the top ten best textile mills of Pakistan. The Kohinoor Textile Mills Ltd has
been serving its customers since 1987and today, KT.M.L is considered to be at par with
multinationals operating locally in terms of its quality products and management skills.
Furthermore, the report includes an article ….

8. 7
INTRODUCTION
The Kohinoor Maple Leaf Group was born from the trifurcation of the Saigolgroup of companies
and is a reputable and leading manufacturer of textiles and cement. Both companies are
incorporated in Pakistan and are listed on three stock exchanges of the country.
KTML is principally engaged in the business of textile manufacturing covering weaving,
bleaching, dyeing, buying and selling and otherwise dealing in yarn, cloth and other goods and
fabrics made from raw cotton and synthetic fiber and to generate, distribute, supply and sell
electricity.
HISTORY
KTML was incorporated in 1987 at Manga Raiwindand is one of the oldest companies of
Pakistan with over 50 years’ experience in textile manufacturing.
It wasinitially set up as a weaving project with 256 looms. However, after decades of aggressive
expansion and modernization KML has emerged into a fully vertically integrated home textiles
company with state of the art capabilities for Weaving, Dyeing, Hosiery, Genertek, and
Hometex. The company has a diverse customer base with sales in both the local and export
markets. The main international markets include Asia, Europe, USA and Australia.
Kohinoor Mills Limited was incorporated as a Public limited Company on December 21st, 1987
and is located at 8th K.M., Manga Raiwind Road, and District Kasur. The Company produces
greige cloth from cotton, blended and synthetic yarns.

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VISION
To transform the company into a modern and dynamic yarn, cloth and processed cloth and
finished product manufacturing company with highly professionals and fully equipped to play a
meaningful role on sustain able basis in the economy of Pakistan.
To transform the company into a modern and dynamic power generating company with highly
professionals and fully equipped to play a meaningful role on sustainable basis in the economy
of Pakistan.
MISSION
TKTML stated mission is to become and then remain as the most progressive and profitable
company in Pakistan in terms of industry standards and stakeholders interest.
To provide quality products to customers and explore new markets to promote/expand sales of
the company through good governance and foster a sound and dynamic team, so as to achieve
optimum prices of products of the company for sustainable and equitable growth and prosperity
of the company.
The company shall achieve its mission through a continuous process of having sourced,
developed, implemented and managed the best leading edge technology, industry best practices,
human resources and innovative products and services and sold these to its customers, suppliers
and stakeholders.

10. 9
BOARD OF DIRECTORS
Mr. Aamir Fayyaz Sheikh
Chief Executive/Chairman – Kohinoor Mills Limited
With extensive experience of more than 28 years as a Chief Executive/Director of textile
industry, Mr. Aamir possesses diversified business skills and effective leadership qualities and is
dedicated towards effective policy decisions and corporate guidelines. He travels extensively and
occasionally accompanies trade missions abroad as an active representative of the business
community of Pakistan.
Mr. Asad Fayyaz Sheikh
Director – Kohinoor Mills Limited
With more than 19 years’ experience as a Director providing excellent services to the Company.
He is serving as Chief Operating Officer of the Weaving Division and providing valuable
services as a member of the Audit Committee. He is actively involved in negotiating the export
businesses of the Company. The Board commemorates his contribution and professional
dedication.
Mr. Ali Fayyaz Sheikh
Director – Kohinoor Mills Limited
Providing valuable services as Director of the Company from last 18 years. He is also a member

11. 10
of Audit Committee and is contributing remarkably on internal audit matters.
Mr. Rashid Ahmed
Director – Kohinoor Mills Limited
Mr. Rashid Ahmed contributed financial sector of Pakistan for more than four decades on key
management positions. He enjoys influential contacts especially within corporate and banking
community at domestic and international levels. Kohinoor Mills honours his valuable services
not only on its Board but also as Chairman of Audit Committee. His contribution extends to
corporate affairs guidelines, internal & external audit functions.
Mr. Aamir Amin
Director – Kohinoor Mills Limited (NIT Nominee)
Professionally a Chartered Accountant possesses experience of more than twelve years. The
professional profile of Mr. Aamir Amin reflects diligent contribution towards corporate affairs
and capital market of Pakistan. He has a diversified experience as representative of NIT at the
Board of various companies from different business sectors.
Mr. Riaz Ahmed
Mr. Riaz Ahmed joined Kohinoor Mills Limited as a Non-Executive Director of the Company on
March 31, 2013. He is a successful business executive contributed on key management positions
of business relating to footwear and hospital. Mr. Riaz Ahmed completed his Master’s in
Business Administration, from Institute of Business Administration, Karachi in 1964. His
professional synopsis started right after his Masters and depicts the zeal and commitment. He
served in the positions of sales & marketing manager, General Manager and as the Chief

12. 11
Executive not limited to Pakistan but to Somalia, Tanzania, Gulf Countries, Europe and far
eastern countries.
Mr. Shahbaz Munir
A successful business executive with an extensive and rich experience in the field of Human
Resource and Administration. He possesses a professional experience of more than 30 years and
enjoys healthy contacts with businessmen, bureaucrat, Government departments and elite
corporate circle. Presently, serving as Non-Executive Director of the Company and the Board
considered his advice valuable and seeks guidance from his experience

13. 12
INTRODUCTION TO THE CODE
This code has been formulated to ensure that directors and employees of the Company
operate within acceptable standards of conduct and sound business principles which strive
for development and growth. The Company takes pride in adherence to its principles and
continues to serve its customers, stakeholders and society.
CORE VALUES
The credibility, goodwill and repute earned over the years can be maintained through continued
conviction in our corporate values of honesty, justice, integrity, and respect. The company
strongly believes in democratic leadership style with fair, transparent, ethical and high
professional standards of conduct in all areas of business activities.
BUSINESS CULTURE
Operations
The Company shall formulate and monitor its objectives, strategies and overall business plan of
the organization.
The Company shall be continuously involved in the research and development of new products
every stage of its operations. Creativity and innovation must prevail at all levels of hierarchy to
achieve organizational excellence.
Abidance of Law
It is Company’s prime object to comply with all applicable laws and regulations and to cooperate
with all governmental and regulatory bodies.

14. 13
Corporate Reporting and Internal Controls
The Company maintains effective, transparent and secure financial reporting and internal control
systems so as to ensure reliable performance measurement and compliance with local regulations
and international accounting standards as applicable.
The Company strictly adheres to the principles of good corporate governance and is committed
to high standards of corporate governance.
The Company regularly updates and upgrades manufacturing and reporting systems so as to keep
abreast with technological advancements and achieve economies of production.
Integrity and Confidentiality
The Company believes in uprightness and expects it to be a fundamental responsibility of
employees to act in Company’s best interest while holding confidential information and neither
to solicit internal information from others nor to disclose Company’s !gures, data or any material
information to any unauthorized person/body.
Inside information about the Company, its customers, vendors, employees shall not be used for
their own gain or for that of others directly or indirectly.
RESPONSIBLITIES
Shareholders
The Company believes in maximizing shareholders value by providing consistent growth and
fair return on their investment.
Customers
The Company considers it imperative to maintain cordial relationship with the customers as
integral to that conform to highest international standards.

15. 14
Employees
Gender, age, ethnicity and religious beliefs and its promotional policies are free of any
discrimination.
The Company ensures that employees work towards achievement of corporate objectives,
individuallyand collectively as a team and conduct themselves at work and in society as
respectable employees and good citizens.
The Company believes in continuous development and training of its employees.
The Company has set high standards of performance and recognizes employees’ contribution
towards its growth and rewards them based on their performance. The Company believes
development, growth and recognition result in motivated employees.
All employees of the Company are part of Kohinoor family and the families of all members are
also part and parcel of Kohinoor family. The Company believes that the sense of belonging to
Kohinoor fulfils an essential need of its employees and the organization and as such will always
be nurtured.
Environment and SocialResponsibility
Protecting the environment in which we live is an important element. The Company uses all
means to ensure a clean, safe, and healthy and pollution free environment not only for its
workers and employees but also for the well-being of all people who live in and around any of
the production and manufacturing facilities.
The Company will always employ such technology as may be beneficial in maintaining a healthy
and hygienic working environment. It also believes in community development without political
affiliations with any person or group of persons and contributes part of its resources for a better
environment with an unprejudiced approach

16. 15
OBJECTIVES
Following are the main principles constitute the strategic objectives of Kohinoor
Textile Mills Limited:
1. Effective use of available resources and improved capacity utilization of theCompany's
production facilities;
2. Modernization of production facilities in order to ensure the most effectiveproduction;
3. Effective marketing and innovative concepts;
4. Implementation of effective technical and human resource solutions;
5. Strengthening independence in terms of secure supply of low-cost services andresources,
including energy supply, transportation and logistics services;
6. Explore alternative energy resources;
7. Further improvements in corporate code governance through restructuring ofassets and
optimization of management processes;
8. Personnel development, creating proper environment for professional growthof highly skilled
professionals, ensuring safe labor environment, competitivestaff remuneration and social benefits
in accordance with scope and qualityof their work;
9. Compliance with local and international environmental and quality managementstandards,
implementation of technologies allowing to comply with the limitationsimposed on pollutant
emissions; and
10. Implementation of projects in social and economic development of communities.

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PRODUCTS/SERVICES
Followingare the productsandservicesprovidedbythe KohinoorTextile MillsLtdasperthe divisions.
KOHINOOR WEAVING DIVISION
The project was initially established with 48 Sulzer Ruti shuttles-less looms of 153"width from
Switzerland with modern ancillary machinery to produce high quality fabric for export markets.
Further expansions saw the installation of an additional 96 Tsudakoma air jet looms from Japan
in 1990 and a third shed comprising 60 state of the art Picanol Omni 340 cm wide looms was
installed in July 1998, twelve with batching motions. Another twelve Picanol Omni 340 cm wide
looms were installed in 1999.
In 2000-2001 old 48 Sulzer Ruti looms were replaced by 48 lated Picanol Omni Plus 380cm
looms. In addition to that latest Picanol Omni plus Jacquard Looms were also added as well as a
yarn conditioning machine from Zorella was alsoinstalled.
The entire manufacturing process from warping to fabric inspection is monitored through an
online process control system from Barco. The marketing strategy is to explore new markets
both in quota and non-quota countries.
Products:
Twills Jacquards
Dobbie sateen
Yarn dyes Herringbone
Poplin / Canvases
Broken twills
Sateen

18. 17
KOHINOOR DYEING DIVISION
Kohinoor Dyeing has state of the art Dyeing & Finishing plant producing, Dyed, White &
PFGD Fabrics with a capacity of 3.0 Million meters per month. Kohinoor Dyeing has a
diversified customer base spread over different continents. It has long-term professional
relationship with most of the High Street Labels and famous chain stores:
PRODUCTS
Reactive, Disperse, VAT, Sulpher and Pigment dyed fabrics for bottom wear in;
100% Cotton
Poly cotton blends
Stretch fabrics
KOHINOOR GENERTEK DIVISION
Kohinoor Genertek is a power generation plant, engaged in power generation and distribution
since 1995. It has the generation capacity of 29.28 MW and comprises of the following types of
Generation equipment.
Workforce
The company enjoys the services of professionals in its various departments with a total
workforce of 65 individuals.
Turnover
It has a total turnover of US$ 10 million

19. 18
EXPORTING COUNTRIES
U.S.A Europe Australia South Africa
Banana Republic Next Yakka King Gee Wools Worth
GAP Mango Charles Persons -
Target Zara - -
Tommy HF Carrefour - -
Arrow Brushka - -
Wal-Mart Rose by French
Connection
- -

20. 19
FUTURE OUTLOOK
Keeping in view a difficult macro-economic scenario and increasing competition in textiles
from China, India and other emerging markets, your management has devised a detailed counter-
strategy. For increased revenues
and better margins, the management is intensifying its marketing efforts, focusing on market
development and penetration, product development, especially niche products for famous brands
and technical textiles. For cost-savings, the management is ensuring better supply-chain
management for raw materials and increased reliance on alternate fuels for power-generation.
Therefore, the management is confident that the company shall be able to improve its
performance, going forward.
~

21. 20
FY14 Post Result Analysis by
Pearl Securities Ltd

22. 21
Kohinoor Textile Mills record textile earnings
& rising Portfolio – Sherman Research
By: Sadiq Samin
sadiqsamin@shermansecurities.com
Sherman Securities (Pvt.) Ltd.
With lower cotton prices and declining interest rate scenario, textile companies are again in
limelight at local bourse. Amongst few textile companies, Kohinoor Textile Mills (KTML) is
one stock which has posted a gain of 33% in last two months, outperforming sector by 19%.
We believe the present rally is owing to its portfolio investment as the company hold 306mn
shares (58%) of Maple Leaf Cement (MLCF) whose stock price has rallied by 44% in last two
months amid better local cement demand, growing margins amid declining energy prices and
lower financial charges on declining interest rate scenario.

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Thus, despite recent rally in KTML, we believe that the stock is trading below its portfolio value
of Rs51. Thus, investors are completely ignoring its textile earnings, though textile earning of
KTML is record high.
Sep 2014 textile earning highest in decade
Interestingly, KTML posted record unconsolidated earnings of Rs207mn (EPS Rs0.84).This is so
far the highest quarterly textile earnings ever posted by the company in last decade, thanks to
better margin on yarn and home textile owing to record low cotton prices.
Company’s recent Sep 2014 results show that processing and home textile which is the largest
segment (48% share in revenue) posted strong results compared to last year. Moreover, this
segment contributed 45% in overall profits in 1QFY15 compared to 30% last year, thanks to
efficient supply of gas and better margins.
Similarly, yarn segment which is the second largest segment contributed 38% in revenue during
1QFY15 while its profit contribution stood at 38%.
Mid-size company but better textile profits
We analyzed Sep 2014 results of major textile composite companies. Our sample consists of top
ten textile composite companies in terms of revenue. Moreover these 10 companies contribute
around 40% of textile market capitalization. Interestingly, the Sep 2014 results show that 50% of
the sample companies posted losses in textile business as shown in table. We excluded dividend
income on investment to arrive textile profits.
Interestingly, where major companies like Nishat Mills (NML) and Gul Ahmed (GATM) whose
revenues are 2-3x better than KTML, their textile earnings remained in losses. This is due to
huge inventory losses owing to declining cotton prices.

24. 23
INDEX
Abidance of Law.............................................................................................12
Board of directors....................................................................................... 9-11
Business culture ........................................................................................ 12-13
Core values......................................................................................................12
Corporate Reporting and Internal Controls...................................................13
Customers.......................................................................................................13
Employees.......................................................................................................14
Environment and Social Responsibility ..........................................................14
Future outlook ................................................................................................19
History ..............................................................................................................7
Integrity and Confidentiality ..........................................................................13
Kohinoor Dyeing Division...............................................................................17
Kohinoor Genertek Division...........................................................................17
Kohinoor Weaving Division............................................................................16
Mission..............................................................................................................8
Objectives........................................................................................................15
Operations.......................................................................................................12
Production................................................................................................. 16-18
Shareholders...................................................................................................13
Vision................................................................................................................8

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GLOSSARY
Abidance
Accept or act in accordance with (a rule, decision, or recommendation)
Brokentwills
Compared to Left Hand Twill and Right Hand Twill, broken twill is when the diagonal weave of
the twill is intentionally reversed at every two warp ends to form a random design. As a result,
the natural torque characteristic of regular twill weaves is reduced, eliminating the leg twist
effect.
Business culture
Culture is a key component in business and has an impact on the strategic direction of business.
Culture influences management, decisions and all business functions from accounting to
production.
Compliance
Compliance means conforming to a rule, such as a specification, policy, standard or law.
Regulatory compliance describes the goal that organizations aspire to achieve in their efforts to
ensure that they are aware of and take steps to comply with relevant laws and regulations.
Confidentiality
Confidentiality is a set of rules or a promise that limits access or places restrictions on certain
types of information.
Core Values
A principle that guides an organization's internal conduct as well as its relationship with the
external world. Core values are usually summarized in the mission statement or in a statement of
core values.

26. 25
Customers
A customer (sometimes known as a client, buyer, or purchaser) is the recipient of a good,
service, product, or idea, obtained from a seller, vendor, or supplier for a monetary or other
valuable consideration.
Disperse dye
Disperse dyes are the only water insoluble dyes that dye polyester and acetate fibers. Disperse
dye molecules are the smallest dye molecules among all dyes.
Employee
A person working for another person or a business firm for pay.
Herringbone
Herringbone describes a distinctive V-shaped weaving pattern usually found in twill fabric. It is
distinguished from a plain chevron by the break at reversal, which makes it resemble a broken
zigzag. The pattern is called herringbone because it resembles the skeleton of a herring fish.
History
Deals with the history of business organizations, methods, government regulation, labor
relations, and impact on society. It also includes biographies of individual companies,
executives, and entrepreneurs.
Implementation
The process of putting a decision or plan into effect; execution.

27. 26
Integrity
It is the ability to act with honesty and be consistent in whatever it is you are doing based on the
particular moral, value or belief compass you have
Internal Control
Internal control, as defined in accounting and auditing, is a process for assuring achievement of
an organization's objectives in operational effectiveness and efficiency, reliable financial
reporting, and compliance with laws, regulations and policies.
Jacquard
An apparatus with perforated cards, fitted to a loom to facilitate the weaving of figured
andbrocaded fabrics.
-A fabric made on a loom fitted with a jacquard, with an intricate variegated pattern.
Macro-economic
the part of economics concerned with large-scale or general economic factors, such as interest
rates and national productivity.
Mission
A sentence describing a company's function, markets and competitive advantages; a short written
statement of your business goals and philosophies. A mission statement defines what an
organization is, why it exists, and its reason for being.
Operations
Operations management refers to the administration of business practices to create the highest
level of efficiency possible within an organization.

28. 27
Penetration
The activity or fact of increasing the market share of an existing product, or promoting a new
product, through strategies such as bundling, advertising, lower prices, or volume discounts.
Portfolio
Pool of investments, collection of samples of an artist or other creative person, or group of
complementary or supplementary products marketed together.
Quota
1.Proportionate share or part, such as a sales quota.
2.Limitation on the quantity that must not be exceeded, such as an import quota.
Shareholders
An individual, group, or organization that owns one or more shares in a company, and in whose
name the share certificate is issued.
Strategy
A method or plan chosen to bring about a desired future, such as achievement of a goal or
solution to a problem.
Turnover
1. Accounting: (1) The annual sales volume net of all discounts and sales taxes.
(2) The number of times an asset (such as cash, inventory, raw materials) is replaced or revolves

29. 28
during an accounting period.
2. Human resource management: The number of employees hired to replace those who left or
were fired during a 12 month period.
3. Finance: The volume or value of shares traded on a stock exchange during a day, month, or
year.
Vision
An aspirational description of what an organization would like to achieve or accomplish in the
mid-term or long-term future. It is intended to serves as a clear guide for choosing current and
future courses of action. See also mission statement.
Workforce
1.Total number of a country's population employed in the armed forces and civilian jobs, plus
those unemployed people who are actually seeking paying work.
2.Total number of employee (usually excluding the management) on an employer's payroll.

30. 29
BIBLIOGRAPHY
KTML . (2014). RetrievedMarch3rd, 2015, from Annual Report:
http://www.kohinoormills.com/financial/2014/KMLAnnualReport2014.pdf
PearSecurities Ltd. (2014, September22).RetrievedMarch10, 2015, from KohinoorTextile Mills:
http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0Cwww.pearlsec
urities.com%2FReport.aspx
BusinessDictionary.(n.d.).RetrievedMarch11, 2015, fromwww.businessdictionary.com/definition/
KTML ANALYSIS.(n.d.).RetrievedMarch1st, 2015, fromhttp://www.scribd.com/doc/46746555/Ratio-
Analysis-of-Kohinoor-Textile-Mills-compare-with-pakistan-s-textile-industry#scribd
Scribd.(n.d.).RetrievedMarch7, 2015, fromKohinootTextileMillsAnalysis:
http://www.scribd.com/doc/46746555/Ratio-Analysis-of-Kohinoor-Textile-Mills-compare-with-
pakistan-s-textile-industry#scribd
TearsheetsSummary.(n.d.).RetrievedMarch5th, 2015, from(KTML):
http://markets.ft.com/Research/Markets/Tearsheets/Summary?s=KTML:KAR