REVIEW REPORT TO THE MEMBERS

We have reviewed the annexed balance sheet of Asim Textile Mills Limited as at
December 31, 2005 and the related profit and loss account, cash flow statement and statement of changes in equity together with the notes forming part thereof (here-in-after referred as the “financial Statements”) for the period then ended. These financial statements are the responsibility of the company’s management. Our responsibility is to issue a report on those financial statements based on our review. The figures of the profit and loss account for the quarters ended December 31, 2004 and 2005 and half year ended December 31, 2004 have not been reviewed as we are required to review only the cumulative figures for the half year ended December 31, 2005.

We conducted our review in accordance with the International Standard on Review Engagements 2400. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatements. A review is limited primarily to inquiries of company’s personnel and analytical procedure applied to financial data and thus provides less assurance than an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the annexed financial statements are not presented fairly, in all material respects, in accordance with approved accounting standards as applicable in Pakistan.

The financial statements of the company for the period ended June 30, 2005 were audited by another firm of Chartered Accountants whose report dated October 08, 2005, expressed qualified opinion on those financial statements.

Without qualifying our report we draw attention to the Note 1 of the financial statements.

LAHORE :                                                                 (ARSHAD RAHEEM & CO.)        27-02-2006                                                              CHARTERED ACCOUNTANTS