1:INTRODUCTION

Nishat (Chunian) Limited was incorporated in 1990 as a public limited company with an equity investment of Rupees100 million. A spinning mill having a capacity of 14,400 spindles was established at Bhai Pheru, Tehsil Chunian. It started commercial production on 10 March 1991. The capacity was enhanced to 19,200 spindles in 1998. In 1998, the Company diversified its business interest by venturing into a weaving project with the installation of 99 air jet looms. A new state of art spinning unit started production in November 2000, increasing the total spinning capacity to about 40,872 spindles. Subsequently weaving capacity was increased to 212 air jet looms while the spinning capacity was increased to 50,952 spindles. During the period ended 30 June 2005, the Company enhanced its spinning capacity substantially by acquiring the operating assets of Umer Fabrics Limited comprising of 38,544 spindles and by addition of a new spinning unit with 40,128 spindles. In 2006, the Company also diversified into Home Textile Business. The Company is currently operating with 149,948 spindles, 293 looms, a modern dyeing and finishing plant having capacity of 101,370 meters per day and captive power plants with a total capacity of 29MW.Nishat Chunian Power Limited (NCPL) incorporated on 23

February 2007, is a subsidiary of Nishat (Chunian) Limited. The gross capacity of the NCPL is 200MW and is operating as an independent power producer, selling its electricity to National Transmission & Dispatch Company Limited. The Company successfully commenced commercial operations on 21 July 2010.

Vision Statement
To transform the Company into a modern and dynamic yarn, cloth and processed cloth and finished product manufacturing Company that is fully equipped to play a meaningful role on sustainable basis in the economy of Pakistan. To transform the Company into a modern and dynamic power generating Company that is fully equipped to play a meaningful role on sustainable basis in the economy of Pakistan.

Mission Statement

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.

Objective of Study in the Organization

The objective of this project is to conduct investment management of Nishat Chunian Ltd in order to know the current position of Nishat Chunian Ltd for investment purpose and to suggest the following persons in taking their decisions. Investors Creditors

Corporate Overview:
Nishat Chunian Group has an enviable business history of over two decades. From a modest start in 1990 with a spinning mill of only 14,400 spindles, the group today has a vertically integrated textile company which prides itself of being the fourth largest textile company in Pakistan (in terms of turnover). In 2007, the group diversified into the power sector by setting up a 200 MW Independent Power Producer. Today, Nishat Chunian Group contains two companies Nishat Chunian Limited (a textile company) and Nishat Chunian Power Limited (a power generation company).

Brief History 1990 Nishat Chunian Limited (NCL) incorporated as a public limited company 1991 First spinning unit started commercial production 1998 Diversified into Weaving Business 2005 Acquired operating assets of Umer Fabrics Limited 2006 Diversified into Home Textiles Business 2007 Diversified into Power Business with the incorporation of Nishat Chunian Power Limited (NCPL) 2010 NCPL started commercial operations Nishat Chunian Group is strongly committed to minimizing the adverse processing effects on the environment. Nishat Chunian has the first dyeing unit in Pakistan to have all Size recovery, Caustic recovery as well as a Waste Water Treatment System.

Size recovery Reduces the overall environment impact by recycling the sizing agents from waste water thus reducing effluent generation. This also reduces the need to manufacture these chemicals, which further reduces emissions. Caustic recovery Reduces the overall environmental impact by recycling the caustic material used in fabric processing. This set up not only reduces the emission of pollutants in waste water but also provides cost savings in chemical and water recovery as well as energy savings through the recovery of hot water. It reduces water usage and the need to manufacture these chemicals, which further reduces emissions. Waste Water Treatment System In our efforts to make the lives of our employees safe and more enriching, we have set up a Water Effluent Plant at our Dyeing & Printing unit. This plant recycles the water to reduce the effluent load in to the drainage system, thereby not only ensuring security for our employees but also for the society at large.

Corporate Governance

Proper books of financial accounts are kept by the group.

Appropriate accounting policies are consistently applied in preparation of annual, half yearly and quarterly financial statements. Accounting estimates used in the preparation of these financial statements are based on reasonable and prudent judgment.

The international accounting standards, as applicable in Pakistan are followed by the group companies in the preparation of published financial statements.

The system of internal controls at the group companies is sound in design and is effectively implemented and monitored regularly.

The group companies are in compliance with the best practices of corporate governance as detailed in the listing regulations of the stock exchanges in Pakistan.

Social responsibility
We are committed to contributing and caring for the community in which we operate. In this regard, Nishat is well aware of its social responsibility for employee welfare and development. The group covers housing and medical expenses for its employees and also provides schooling for their children. The group also provides recreational and sports facilities for the resident employees at production premises.

Nishat has also established a school and a hospital under the Mian Mohammad Yahya Trust, at a cost of around US$ 700,000. The trust is sponsored by Nishat Chunian Limited and members of the sponsors family.

The high school opened in 2000 for the employees children and general public of the area; has a staff of around 40 teachers and offers education to 400 students.

The hospital has also been constructed in the vicinity of the plant; enabling local population to get immediate medical attention instead of traveling to the nearest city. Around 80 patients are treated daily in the hospital by a staff of around 30 people which includes 6 qualified doctors.

In 2009, our employees set up a fund of US $ 35,000 with their donations for setting up a relief camp for about 500 internally displaced people of Swat. The camp was managed with the help of Pakistan Army and locals of the area. We provided tents, water supplies, washrooms, food storage and all basic necessities of life. The camp continued for almost 3 months and was regarded one of the best managed facilities for the internally displaced people.

After the floods of 2010 in Pakistan, our employees took active part in the relief efforts for the rehabilitation of flood victims. The relief efforts included a medical camp at Kot Adhu plus a months supply of basic necessity goods for about 100 families. These goods were distributed in the areas that were cut off from other parts of the country due to excessive flooding and the aid was flown into those areas through helicopters provided by the Pakistan Army. Bedding Supplies were also provided for about 80 families. Total donations amounted to approximately US $ 25,000.

Spinning Profile
Nishat Chunian Limited has a Ring-spinning capacity of 150,000 spindles producing 50,000 tons of greige yarn per annum. Our state of the art machinery, technical expertise and careful selection of best available raw material result in the finest quality of yarn. NCL has a wide range of brand loyal customers all over the world which comes as a result of consistency in quality, reliability and diversity of the yarns that we produce. We make yarns for multiple end-uses including Denim, Apparel, Shirting, Home Textile and Technical Fabrics. Our major markets include Hong Kong, Mainland China and Europe. Our focus is to maintain consistent quality, on time delivery, after sale service and prompt response to all customer needs.

Spinning Products
NCL covers a broad range of Ring-spun yarns from Ne 6/1 135/1 for multiple end products & applications. We are a market leader in coarse yarns including plain, Slub, Siro and Core-spun stretch yarns for denim and bottom weight fabrics. Our fine Compact Yarns cater to high thread count Sheeting and fine quality Shirting Fabrics. We also produce yarn for work wear, technical fabrics, towels and knitted fabrics. Depending on count and customer requirement, yarns are available in a wide range of local and imported cottons including US Pima, Egyptian, CIS ELS, Australian, Indian, Brazilian & US cottons. We are Supima and Cotton USA certified and Lycra accredited.

Spinning Machinery

The spinning facility consists of five mills with a capacity of 150,000 spindles producing 50,000 tons of yarn per annum. It includes 42,000 spindles with compact attachments from Toyota and Sussen; 26,000 spindles producing Amsler slub yarns and 14,000 spindles equipped with core-spun stretch yarn attachments from Pinter. All mills are equipped with modern Japanese and European machinery, which is regularly upgraded to make use of the latest available technology. Each mill is specially designed to produce its specific count range resulting in unmatched control over yarn quality.

Weaving Profile
Established in 1998, the weaving department consists of 293 air jet looms producing 3 million yards of greige fabric per month. With a combination of state of the art weaving equipment, technical know-how and managerial expertise, NCL Weaving has developed a reputation for quality service and products worldwide.

Our in-house spinning helps maintain a better control over quality and facilitates innovative product development, greater product flexibility and shorter lead times. At NCL we cater to the demands of both the local and the international markets. Apparel fabric is exported to the Far East , Europe and North America , whereas the sheeting fabric is mainly exported to high-end US and European buyers. In terms of sales, Nishat Chunian is one of the largest Pakistani exporters of sheeting products to the US.

Weaving Machinery

The weaving mill consists of state of the art Picanol Omni Plus, Picanol Omni Plus 800 and Toyota jet 710 Air jet in various widths ranging from 110 150 inches, providing greater flexibility in catering to customer needs. The Sizing and Warping machinery is manufactured by the renowned European company Benninger-Zell.

Highlights
Warping Sizing Looms No. Of Looms Model Widths Special Features Compressor Air Conditioning Bendirect-1000-2400-GV/OPTOSTOP-1152 Ben-Sizetec ZB32 MWKVDMW CTA4/4/6 PW BBe Picanol Omni Plus, Picanol Omni Plus 800 and Toyota jet 710 Air jet 293 2003-2010 280cm, 340cm, 380cm Dobby Attachments, Batching Motions, 4 Color Insertion, Multiple Pick insertion till 8PI. Atlas Copco, Cooper Air Compressor Luwa, Air Plus

Product Development At NCL, we believe in experimentation and exploration of new dimensions. Our product development team carries out extensive research to keep updated on new market trends and to stay one step ahead of the competition. We constantly work hard to translate our novel and creative ideas into attractive products. Usage of Special Fibers The flexibility in our product range allows us to use various types of fibers. Some of the fancy yarns we use include blends of Cool Max, Nylon, Modal, Tencel, Bamboo, Pearl, Soyabean Fiber, Milk Fiber, Silver, Cashmere and Amicor. Innovation in Fabric Construction Our innovations in fabric construction have resulted into several noteworthy products. High thread count sheeting fabrics of unmatched quality have been produced as far as 1000 thread count using single ply yarn till Ne 150. Fabrics can be produced using multiple pick insertion upto 8PI. Some fancy dobby fabrics with intricate designs have also been manufactured using 12-16 frames.

Home Textiles Profile

The dyeing and printing plant has a capacity of 4.0 million yards per month with an equivalent stitching capacity. These plants are equipped with state of the art machinery specially designed to cater to high thread count fabric.

During the dyeing, printing, finishing and stitching processes, several measures are taken to ensure timely delivery of high quality fabric. This includes special care in fabric handling, full width rail stitching, PVA based size recovery, various devices to avoid creases and band mark variation, special unwinding devices, efficient squeezers, a computerized dye dispensing system and an on-line measurement and storage of data at every machine.

We have implemented a wide range MIS system that efficiently links all the processes. This information system is installed to minimize idle machinery time, increase productivity and reduce costs, affirming our position as a leading and cost effective supplier.

Home Textiles Products

The dyed and printed Sheeting range comprises of high density fabrics of unmatched quality with widths up to 340 cm and yarn count range of Ne 20/1 100/1. This includes Percales up to 400 thread count and Sateens up to 1000 thread count. Other products in this range include fabrics with upto 6 pick insertion, dobby fabric with intricate designs using 12-14 frames and fabrics made using plied, slub and fancy yarns.

In addition to 100% cotton, a number of fibers in various blends are used including Polyester, Viscose, Modal, Tencel, Bamboo, Soyabean, Milk Fiber, Lycra, Cool Max, eVAP, Nylon, Amicor, and Pearl Fiber.

Dyes & Finishes We offer a wide range of dyes and finishes which can be adapted in accordance with customer requirements. The various dyeing options include Pigment, Vat, Reactive and Disperse. In printing we have the option of doing Pigment, Soft Pigment, and Reactive Prints.

Some of the various finishes we can do are Water Repellant, Soil and Stain Resistant, Wrinkle Free, Antimicrobial, Fragrance, Bleach Resistant, Ultra Soft Hand Feel, Anti-Dustmite and Fire Resistant.

Stitching Products

Bed Linen Products in this category include Flat Sheets, Fitted Sheets, Pillowcases, Pillow Shams, Dec Pillows, Bed Skirts, Duvet Covers and Comforter Shells.

Curtains The product range also includes 100% Cotton & Cotton Polyester Blended Window and Shower Curtains. Some of the different styles that we offer are Tab Top Curtains, Rod Pocket Curtains, Back Tab Curtains, Grommet Curtains and Tie Backs.

Table Linen We produce Table cloth, Table Runner, Napkins and Ruffles Round.

Home Textiles Machinery

The dyeing and finishing plant is equipped with the latest machinery from Kuesters and Monforts, market leaders in processing technology for wet and dry processes respectively.

Highlights
Singeing and Bleaching Mercerizing Pad Steam Range Thermosol Range Stenter Range Printing Machine Sanforizing Range Kuesters Kuesters Kuesters Monforts Monforts Reggiani Monforts

Highlights
Calender Kuesters