Ideal Spinning Mills Limited — Proxy Solicitation & Information Statement 2025

Jul 21, 2025

Ideal Spinning Mills [td. IdealGroup

Dated: July 21,2025 The General Manager Pakistan Stock Exchange Limited Stock Exchange Building Stock exchange Road Karachi

Dear Sir,

Cutti ofN of tna n Sub:

Please find enclosed herewith Newspaper cuttings of Notice of Extra ordinary General Meeting which is going to be held on 1'1 August 2025, Published in the Daity " The Nation" ( Engtish ) and the Daity ,, Nai Baat ', ( Urdu ) on July 19, 202s. For your information perusar and record.

,OEAT SPfiTTGffiLtS IIIJ.

1o-c Comprny &erctary

[/UHAMIMAD NADEEM COMPANY SECRETARY

b

Head Office: '1088-Jail Road, Fa isa Ia ba d- Pa kista n Ph: +92 412632301-s

Mills:

35 Km, Sheikhupura Road, Faisalabad-pakista ⁿ Ph :+92 41 4589 183-84 Ph :+92 41 4689 251-52

Lahore Office:

506-D, sth Floor, City Tower, 6-K, Main Boulevard Gulberg ll, Lahore Ph :+92 42 3578 8655 +92 42 3iBS 1011_2 +92 423575 A4A4

Karachi Office:

Room # 404-405, 4th Floor Business Centre, [,,lumtaz Hassan Road, Karachi-paksitan Ph :+9221 3241 2814-5 Fax:+92 21 32419911

NOTICE OF EXTRAORDINARY GENERAL MEETING IDEAL SPINNING MILLS LIMITED

Notice is hereby given that an Extraordinary General Meeting (EOGM) of members of Ideal Spinning Mills Limited (the Company) will be held on Monday, 11 August 2025 at 11:00 a.m. at Room Number 404 & 405, 4th Floor, Business Centre, Mumtaz Hassan Road, Karachi, Pakistan and through video-link to transact the following business:

Ordinary Business:

1. To confirm the minutes of the Thirty Sixth Annual General Meeting of the Company held on 28 October 2024,

Special Business:

1. To consider and, if thought fit, to pass, with or without modifications, the ordinary resolutions, as provided in the statement of material facts, for disposal / sale of Company's spinning segment's major portion of plant and machinery including stand-by equipment in terms of Section 183(3)(a) of the Companies Act, 2017.

(Attached to this Notice is a Statement of Material Facts concerning the above-mentioned special business and draft ordinary resolutions, as required under Section 134(3) and Section 140 of the Companies Act, 2017).

Karachi 18 July 2025

NOTES:

1. Closure of Share Transfer Books

The share transfer books of the Company will remain closed from 05 August 2025 to 11 August 2025 (both days inclusive). Transfers received in order at the office of the Company's Share Registrar, F.D.

By Order of the Board Mr. Muhammad Nadeem Company Secretary

Registrar Services (SMC-Pvt.) Limited, 1705, 17th Floor, Saima Trade Tower-A, I.I. Chundrigar Road, Karachi at the close of business on 04 August 2025 will be treated in time for purposes of attending and voting at the EOGM.

2. Appointment of Proxy

A Member entitled to attend and vote at the Meeting is entitled to appoint a proxy to attend and vote on his/her behalf, provided such proxy is also a member.

Attested copies of valid CNIC or the passport of the beneficial owners and the proxy shall be furnished with the proxy form.

An instrument of proxy and the Power of Attorney or other authority (if any) under which it is signed, or a Notary Public certified copy of such Power of Attorney, in order to be valid, must be received at the Registered Office of the Company not later than (48) forty-eight hours before the time of holding the EOGM.

Proxy form shall be witnessed by two persons whose names, addresses and valid CNIC numbers shall be mentioned on the form.

The proxy shall produce his / her original CNIC or original Passport at the time of EOGM.

Form of Proxy in Urdu and English language is herewith enclosed.

3. CDC Account Holders

CDC account holders are required to follow the guidelines of Circular No.1 dated January 26, 2000 of the SECP for attending the EOGM:

• In case of individuals: The account holder or sub account holder and / or the person whose securities are registered on CDS; and their registration details are uploaded as per the regulations, shall $\langle 1 \rangle$ authenticate his/her identity by showing his/her original CNIC or original passport at the time of attending the EOGM. Members are also required to bring their Participants' I.D. Number and Account Numbers in CDS.
• (ii) In case of a corporate entity: Board of Directors Resolution / Power of Attorney with specimen signature of nominee shall be produced (unless it has been provided earlier) at the time of the EOGM.

4. Procedure for E-Voting

• In accordance with the Companies (Postal Ballot) Regulation, 2018, (the "Regulations") the right to vote through electronic voting facility and voting by post shall be provided to members of every a. listed company for, inter alia, all businesses classified as special business under the Companies Act, 2017 in the manner and subject to conditions contained in the Regulations.
• Details of E-Voting facility will be shared through e-mail with those members of the Company who have valid cell numbers / e-mail addresses (Registered e-mail ID) available in the Register of b. Members of the Company by the end of business on 04 August 2025. Members who intend to exercise their right of vote through E-Voting shall provide their valid cell numbers and email addresses not later than 04 August 2025 (COB).
• Identity of the members intending to cast vote through E-Voting shall be authenticated through electronic signature or authentication for login. c.
• Members shall cast vote for Agenda Item No. 2 online from 08 August 2025 till 10 August 2025 before 5:00 p.m. Voting shall close on 10 August 2025 at 5:00 p.m. A vote once cast by a member shall d. not be allowed to be changed.

5. Procedure for Voting Through Postal Ballot

• Members may alternatively opt for voting through Postal Ballot. For the convenience of the members, Ballot Paper is annexed to this notice and the same is also available for downloading on the а. Company's website (www.idealsm.com).
• Members must ensure that a duly filled and signed Ballot Paper along with a copy of Computerized National Identity Card (CNIC) should reach the Chairman of the meeting through post at the ъ. Company's address, Room Number 404 & 405, 4th Floor, Business Centre, Mumtaz Hassan Road, Karachi or email at eogm2025@idealsm.com one day before the EOGM, that is on 10 August 2025 before 5:00 p.m. A postal ballot received after this time / date shall not be considered for voting. The signature on the Ballot Paper shall match with signature on the CNIC.

6. Appointment of Scrutinizer

The Company has appointed Messrs Riaz Ahmad & Company, Chartered Accountants, FS Tower, Outside Al-Fateh Garden, East Canal Road, Faisalabad as Scrutinizer in compliance with regulation 11 of the Companies (Postal Ballot) Regulations, 2018 for voting on the special business. Messrs Riaz Ahmad & Company, Chartered Accountants is a renowned firm with satisfactory QCR rating from ICAP and extensive experience in managing the voting process in terms of the Regulations.

7. Attending meeting Through Electronic Means

The Company, furthermore, has made arrangements to ensure that all participants, including shareholders, can now participate in the EOGM proceedings via Zoom video-link. To attend the meeting via Zoom video-link, members are requested to register themselves by providing the following information through email at eogm2025@idealsm.com on or before 10 August 2025, 5:00pm.

8. Change of Address

Members are requested to immediately notify change of address to the Company's Share Registrar at the following address: F.D. Registrar Services (SMC-Pvt.) Limited 1705, 17th Floor, Saima Trade Tower-A, I.I. Chundrigar Road, Karachi 74000, Pakistan

9. Prohibition of Gift

In view of prohibition under Section 185 of the Companies Act, 2017, the Company does not distribute gifts in any form to its members in the general meetings.

IDEAL SPINNING MILLS LIMITED, ROOM NO. 404 & 405, 4TH FLOOR, BUSINESS CENTRE, MUMTAZ HASSAN ROAD, KARACHI

Ballot Paper For Voting Through Post (for Poll to be held in the Extraordinary General Meeting to be held on Monday, 11 August 2025 at 11:00 a.m.)

Designated email address of the Chairman at which the duly filled in ballot paper may be sent to eogm2025@idealsm.com

Name of member / joint member
Registered Address
Number of Shares held (as of 04 August 2025) and Folio No.
CNIC No. / Passport No. (in case of foreigner)(Copy to be attached)
Additional information and enclosures(In case of representative of body corporate, Corporation and Federal Government)

I/we hereby exercise my/our vote in respect of the following resolution through postal ballot by conveying my/ our assent or dissent to the following resolution by picking tick (") mark in the appropriate box below:

EOGM's Agenda	Resolution	No. of ordinary shares	I / We assent to	I / We dissent to
Item No.		for which votes cast	the resolution (FOR)	the resolution (AGAINST)
	RESOLVED that the approval of shareholders of Ideal Spinning Mills Limited (the "Company") be and is hereby accorded for sale / disposal of major portion of plant and machinery including stand-by equipment of Company's

(the "Company") be and is nereby accorded for sale / disposal of major portion of plant and machinery including stand-by equipment of Company's spinning segment.
RESOLVED FURTHER that, as part and parcel of the foregoing consent, the Board of Directors of the Company be and is hereby authorized and empowered for sale of major portion of plant and machinery including stand-by equipment of Company's spinning segment on behalf of the Company.
RESOLVED FURTHER that Chief Executive Officer Mr. Amjad Saeed and / or Mr. Omer Saeed, Mr. Ahsan Saeed and Mr. Khizer Saeed, directors of the Company be and are hereby singly authorized to dispose of the major portion of the plant and machinery including stand-by equipment of Company's spinning segment and to act on behalf of the Company in doing and performing all acts, matters, things and deeds to implement the disposal and the transaction contemplated by it, which shall include, but not limited to:
a) negotiations in such manner and on such terms and conditions as are in best interests of the Company and its shareholders for the assets to be disposed of;
b) entering into and executing agreement with the buyer(s), for selling the assets, receiving the sale consideration, executing, preparing and signing transfer documents in favor of the buyer(s) to affect the assets sale in favor of the buyer(s);
generally performing and executing in respect of the disposal, all lawful C) deeds, agreements, acts and things as they may think fit and proper in order to implement and complete the assets sale, and
d) to submit documents, make filing with SECP, PSX and other authorities and to undertake all necessary actions to give effect to this resolution.
Signature of Member(s) Date: http://www.com/communications/ Place: NOTES / PROCEDURE FOR SUBMISSION OF BALLOT PAPER 1. Duly filled and signed original postal ballot should be sent to the Chairman, Ideal Spinning Mills Limited, Room No. 404 & 405, 4th Floor Business Centre, Mumtaz Hassan Road, Karachi or a scanned copy of the original postal ballot to be emailed at: eogm2025@idealsm.com 2. Copy of CNIC/Passport (in case of foreigner) should be enclosed with the postal ballot form. 3. Postal Ballot forms should be received by the Chairman not later than 10 August 2025 by 5:00 p.m. Postal Ballot(s) received after the date and time stipulated shall not be considered for voting. 4. Signatures on Postal Ballot should match the signatures on CNIC/Passport (in case of foreigner).
5. Incomplete, unsigned, incorrect, defaced, torn, mutilated, overwritten ballot papers shall be rejected. 6. In case of representative of a body corporate and corporation, Postal Ballot must be accompanied with copy of CNIC of authorized person, along with a duly attested copy of Board Resolution, Power of Attorney, or Authorization Letter in accordance with Sections 138 or 139 of the Companies Act, as applicable, unless these have already been submitted along with Proxy Form. In case of foreign body corporate etc. all documents must be attested by the Pakistani Embassy having jurisdiction over the member. 7. Ballot paper has also been placed on the Company's website (www.idealsm.com) Members may download the ballot paper from the website or use original/photocopy published in newspapers.
STATEMENT OF MATERIAL FACTS UNDER SECTION 134(3) OF THE COMPANIES ACT, 2017 This statement sets out the material facts pertaining to the special business to be transacted at the extraordinary general meeting of members of Ideal Spinning Mills Limited (the Company) to be held
on 11 August 2025. The Board of Directors of the Company has approved the sale of major portion of the plant and machinery including stand-by equipment, related to the Company's spinning segment. This decision has been made due to continued challenges faced by the spinning business specially demand of yarn and costs of operation. As a result, the Company will discontinue its spinning operations but will continue to operate its weaving and socks units.
Overview of spinning segment's plant and machinery including stand-by equipment The Company's spinning segment comprises a range of various types of specific machineries, including the machineries of blow room, carding, drawing, comber, simplex, ring, compact and auto cone. Moreover, certain generators of different types are also included. These assets were acquired over an extended period, since the inception of the spinning business of the Company. The total installed capacity of the spinning unit, converted to 20s count, is approximately 18 million Kgs. However, the actual production for the year ended 30 June 2024 was 11,154,492 Kgs.
The information required under Section 134 of the Companies Act, 2017 read with S.R.O. 423(I)/2018 dated 03 April 2018 is as under:

a) Description / Name of assets A range of various types of specific machineries related to spinning business, including the machineries of blow room, carding, drawing, comber, simplex, ring, compact and auto cone departments. Moreover, certain generators of different types (MTU, Jenbacher) are also included. b)Acquisition date of the assets The machinery proposed for disposal was procured over an extended period starting from Year 1991. c) Cost The aggregate cost of the plant and machinery including stand-by equipment is Rupees 944.349 million. d) Revalued amount and date of revaluation (if applicable) Not Applicable e)Book value The aggregate net book value as at 30 June 2025 of the plant and machinery including stand-by equipment is Rupees 409.818 million. f) Approximate current market price / fair value The current market price / fair value is expected to be in line with the book value as stated above. The exact amount, however will be ascertained at the time of finalizing the transactions with the potential buyer(s).

*	باقاعده تصديق شدداشات ABC CERTIFIED
إيخ الوليندمى/اسلام آباد كوليتى يشكور كوينه يقيل آبادادر كريصا سے بيك فت شالع معيط الاقوى اخبا بنذى/اسلاً أآباد كركوحى يثاور كوسيشيل آباداور كركوها سے سك فت شائع ہونے الاقوى اخبار Daily Nai Baat Daily Nai Baat اوزنامة كاجى Satur Qay مطلقفة جديجبار محن حفايقاني بدئ بالرحمن $$ $$ $*$ 30 $ \frac{1}{2}$ 8 $\frac{1}{k^2}$ جلد 723 م الحرام 1447 و19 جولا بولا 4،2025 مارت2082 - 08 في 1447 مجموع الشركة المحمد بفته 23 تحرم الحرام 1447 ه 19 جولا في 2025 م4 ساون 2082 ب 202 www.naibaat.pk e-mail: nb@naibaat.com 119 www.naibaat.pk	اوزنامة $\frac{4}{14}$ 3202 e-mail: karachi a naibaat.com 14
آنیڈیل اسیننگ ملز لمیٹڈ نوٹس برائے غیر معمولی اجلاس عام
	(جي) فردخت کې صورت ميں،اگرفر دخت کې قيت ېک ديليو يامنصفانه قدرت کم ہوتي تين او است ان اس اس کې موقع قيت ان اثاشة جات کې مجموعي صافي بک ديليو سے کم نہيں،وگي۔
	کی جائیں گی (انکا)ا ثاثوں کی لیز،مدت،لیزرینٹل،اضافہ کی شرح،لیزرینٹل کے تعین کی بنیاد اطریقہ اورلیز سے حقلق دیگراہم قابل اطلاق تین ہے۔ شرائط وضوابط كى صورت ميس
لینی بات چیت پیشافروخت کے طریقہ کار کے ذریعے فدکورہ اثاث قروخت کرتے کااروشن کا اس کے اور اس کا تعدیش بداری کا عمل کینی کے بہترین مغادمیں ہا بھی رضامندی ملے شدہ شرائط کی بنیاد پر مکمل کیاجائے گا۔	( آنَ) مُدكوره! ثانون كَيْ فردخت كالجوزه طريقه كار
	(ہے)اس صورت میں کہ کمپنی کسی ایسے ٹریدار کی نشاندی کرتی ہے جو متعلقہ فریق) تو اس حقیقت کو مادی حقائق کا تامل اطلاق کپیس کے بیان میں خاہر کیا جائے گا۔
(اے) کا تقرف فروشت ہے حاصل ہونیوالی رقم کپنی کی موجودہ مالی ذمہ داریوں ط ھوموس کریا یونا پارٹا کی استعمال کیا گیا ہے۔ استعمال کی ایک تک میں است کے است کے است کی ایک پارٹی میں است افسائلہ کی ایک پارٹ کرنے کے لیے کیا جار ہا ہے کہ پارٹی (پی)آپریشل صلاحیت پراژات مجوزه فروخت کے بعد ممینی کااسپنگ آپریشز مکمل طور پر بندہوجائے کے میں جونے والے سکسل نقصانات کی وجہ سے کیا گیا جس کی بنیادی وجہ خام مال اور فیول کی قینوں میں اضافہ ہے۔ (ی)ارا میں کوئیلنے والے متوجع فوائد سمینی کے سینگ سیکھنے ہے متعلق پلانٹ اور مشینری کے بینے ساسلے اس کے اس کے بار کے اس کے اس کے اس کے اس کے اس کے الادابقایات کی ادائیکی میں اس کا کہنا کہ اس کے بین کی ایک اس کے اس کے اس کے اس کے اس کی اس کی اس کے اس کے اس کے کاروباری منصوبے میں استعمال کی جائے گی۔توقع ہے پیافتدام مجموعی منافع میں اضاف اور حصص یافتگان کے لیے طویل المدتی قدر کا باعث بنے گا۔	(کے) اثاثوں کی فروخت، لیز کا مقصد معد تضیلات (a) یکن دین سے حاصل رقم کامعرف (c) سمینی کی آپریشنل صلاحیت پراثرات، اگرکوٹی ہے؛اور (d) اراکین کو پیچ والے مقداری اور معیاری فوائد
مزيدقرار بايا كەمندرە بالامتطورى كاجرولازم بىرنے يونى كے بول تاريخ بى بىل بىل سى سى سى سى سى سى سى سى سى سى تى تورك بالى تار بىل بىل بىل بىل بىل بىل بىل بىل بىل بىل حزيدقرار پايا كه چوند الموسين المراجو من المراسم المراسم المراسم المساسم المراسمين المراس الموارد والمراسم المراسم المراسم المناسك الدراس المن المعن وال جوزه ولين وين كيلة تمام كاروائيال انجام وسية ، معاملات ط كرنے اور معا	ڈائریکٹرز کی دیکھیں کمپنی کے ڈائر یکٹرزا ہے تھٹس پالکی کے علاوہ تصومتی امور میں بالواسطہ پابلاواسط کو ٹی دیکھی کیس رکھتے۔ قرار پایا کہ کمیٹی کے اسپڈنگ سیکھٹ کے پانٹ اور مشینری کے بڑے سینٹ پاسٹی آئی اسٹی ایک ایک اسپڈنگ لیکشن کے تصص یافتگان کی منظوری دی جاتی ہے۔ اختيارد يا جاتا ہے جس ميں مندرجہ ذيل امورشامل ہوں گے ليكن ان تك محد ودكيس: مجوز و اثالوں کی فروشت کیلئے ایسے طریقے سے اوراک شرائط دشوابط پر مذاکرات کرنا جو کمپنی اوراس کے حصص یافتظان کے بہترین مفادمیں ہوں۔ (a) اثاثول کی فروخت کیلئے خریدار کے ساتھ معاہد ویلے کرنا، فروشوں کرنا، خریدار کے ق میں اثاثوں کی فروش بنانے کیلئے متعلق میں اور است تیار کرنااوران پر پیچفا کرنا (b) فروشت کے حوالے سے تمام ضابط اور قانونی کارروائی،معاہدے،دستاویز کی کارروائی انہام دینا جوا ثانوں کی فروشت کوهمل کرنے اورموثر بنانے کیلئا ان کی نظر میں موز وں ہوں اور (c)