ShineWil1~PAKISTAN ~

SHINEWING HAMEED CHAUDHRI & CO.CHARTEREDACCOUNTANTS

HM House,7-Bank Square, Lahore.Tel: +924237235084-87Fax: +924237235083Email: Ihr@hccpk.comwww.hccpk.comOther Offices:Karachi & Multan

INDEPENDENT REASONABLE ASSURANCE REPORT ONSTATEMENT OF FREE FLOAT OF SHARES

To the Chief Executive of the Saif Textile Mills Limited

1. IntroductionWe have been engaged to perform a reasonable assurance engagement on the annexedStatement of Free Float of Shares (the Statement) of Saif Textile Mills Limited (theCompany) as of September 30,2017, December 31,2017, March 31, 2018 and June 30,2018.

2. Applicable Criteria

The criteria against which the Statement is assessed is Regulation No. 5.7.2(c)(ii) of PakistanStock Exchange Limited Regulations (PSX Regulations) which requires every Listed companyto submit directly to Pakistan Stock Exchange (PSX) an annual Free-Float Certificate dulyverified by the auditor along with the annual audited accounts as prescribed under regulation5.6.4(a) of the PSX Regulations.

3. Management's Responsibility for the StatementManagement is responsible for the preparation of the Statement as of September 30, 2017,December 31,2017, March 31, 2018 and June 30, 2018 in accordance with the applicablecriteria. This responsibility includes maintaining adequate records and internal controls asdetermined necessary to enable the preparation of the Statement such that it is free frommaterial misstatement, whether due to fraud or error.

4. Our Independence and Quality Control

We have complied with the independence and other ethical requirements of the Code ofEthics for Chartered Accountants issued by the Institute of Chartered Accountants ofPakistan, which is founded on fundamental principles of integrity, objectivity, professionalcompetence and due care, confidentiality and professional behaviour.The firm applies International Standard on Quality Control 1 "Quality Control for firms thatperform Audits and Reviews of Historical Financial Information, and Other Assurance andRelated Services Engagements" and accordingly maintains a comprehensive system ofquality control including documented policies and procedures regarding compliance withethical requirements, professional standards and applicable legal and regulatoryrequirements.

5. Our responsibility and summary of the work performedOur responsibility is to carry out an independent reasonable assurance engagement and toexpress an opinion as to whether the Statement is prepared in accordance with the applicablecriteria, based on the procedures we have performed and the evidence we have obtained.We conducted our reasonable assurance engagement in accordance with InternationalStandard on Assurance Engagements 3000 (Revised), 'Assurance Engagements other thanaudits or reviews of historical financial statements' (ISAE 3000) (Revised) issued by theInternational Auditing and Assurance Standards Board. That standard requires that we planand perform this engagement to obtain reasonable level of assurance about whether theStatement is free from material misstatement.

a memberfirm of ShineWin'j International GLOBAL ALLIANCE OFINDEPENDENT FIRMS

ShineWi111 SHINEWING HAMEED CHAUDHRI & CO.CHARTEREDACCOUNTANTS

PAKISTAN

A reasonable assurance engagement in accordance with ISAE 3000 (Revised) involvesperforming procedures to obtain evidence about the free float of shares and relatedinformation in the Statement. The nature, timing and extent of procedures selected depend onthe practitioner's judgment, including the assessment of the risks of material misstatement,whether due to fraud or error, in the Statement. In making those risk assessments, weconsidered internal control relevant to Saif Textile Mills Limited's preparation of theStatement. A reasonable assurance engagement also includes assessing the applicablecriteria used and significant estimates made by management, as well as, evaluating theoverall presentation of the Statement.

We have carried out the procedures considered necessary for the purpose of providingreasonable assurance on the Statement. Our assurance procedures performed includedverification of information in the Statement with the underlying data and record comprising ofCentral Depository Company statements, forms submitted by the Company with Securities &Exchange Commission of Pakistan relating to its pattern of shareholding and other relatedinformation. Verification that the computation of free float of shares is in accordance with thePSX regulation also forms part of our assurance procedures.

We believe that the evidence we have obtained is sufficient and appropriate to provide abasis for our opinion.

6. Opinion

In our opinion, the Statement as of September 30,2017, December 31,2017, March 31, 2018and June 30, 2018 is prepared, in all material respects, in accordance with the PSXRegulations.

7. Restriction on use and distribution

This report is issued in relation to the requirements as stipulated under Regulation No.5.7.2(c)(ii) of the PSX Regulations and is not to be used or distributed for any other purpose.This report is restricted to the facts stated herein and the attachments.

Lahore; 11 5 OCT 2018~~~~cw...~~~IC~SHINEWING HAMEED CHAUDHRI & CO.CHARTERED ACCOUNTANTS

...• •Prexitx: ..GLOBAL ALLIANCE OFINDEPENDENT FIRMS

SAIF TEXTILE MILLS LIMITED...........................................................................................................................................

•3rd Floor, City Centre, Plot # 40, Main Bank Road, Saddar Cantt., Rawalpindi.Voice: +92-51-5700824-8, Fax: +92-51-5700829, E-mail: strn@saifgroup.com

Website: www.saiftextile.com

SAIFGROUP

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

Sept. 30, 2017 Dec. 31, 2017 March 31, 2018 June 30, 2018

26,412,880 26,412,880 26,412,880 26,412,880Total Outstanding Shares

- -- -Less: Government Holdings

(25,808)Less: Shares held by Directors / Sponsors / Senior (37,808) (37,808) (25,308)Management Officers and their associates

(606,633) (605,000)Shares in Physical Form (608,133) (607,133)

Less:(13,097,000)Shares held by Associate Companies / Group (13,097,000) (13,097,000) (13,097,000)

Less Companies (Cross Holdings) .Shares issued under employees stock option - -schemes that can not be sold in the open - -

Less:market in normal course - -- -

Less: Treasury sharesAny other category that are barred from - -- -

Less: selling at the review date

12,669,939 12,670,939 12,683,939 12,685,072Free Float

STATEMENT OF FREE FLOAT OF SHARES

. . ts of Regulation No 5 7 2©(Ii) ofThis Statement is prepared in accordance Withthe rsquirernen .Basis of Preparation: Pakistan Stock Exchange Limited Regulations (PSX RegulatIOns).

•MILLS: Phase III, IndustrialEstate GadoonAmazai, Swabi,KPK. Voice:+92-938-270313,270429, Fax: +92-938-270514,E-mail: stm@saifgroup.com

PESHAWAR:APTMAHouse, JamrudRoad,Voice:+92-91-5843870,5702941,Fax: +92-91-5840273,E-mail: peshawar@saifgroup.comKARACm: SuitNo. 210, 2nd Floor,The Plaza, Block-9,CliftonKarachi,Voice:+92-21-5821238,Fax: +92-21-5821220,E-mail: karachi@saifgroup.com