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Crescent Jute Products Ltd.
Annual  Reports 2002
CONTENTS
Company Information
Notice of Annual General Meeting
Director's Report to the Shareholders
Pattern of Share Holding
Statement of Compliance with Best Practices
of Corporate Governance
Auditor's Report
Balance Sheet
Profit and Loss Account
Cash Flow Statement
Statement of Changes in Equity
Notes to the Accounts
COMPANY INFORMATION
BOARD OF DIRECTORS
Mr. Zahid Hussain		(Chairman)
Mr. Mazhar Karim		(Chief Executive)
(In alphabetic order)
Mr. Amir Hasnain Zaidi
Mr. A. Rashid M. Hanif
Mr. Anis Wahab Zuberi		(Nominee NIT)
Mr. Khalid Bashir
Mr. Khurram Mazhar Karim
Mr. Riaz Masood
Mr. ShaukatShafi
Mr. Saif Ullah Khan		(Nominee PICIC)
AUDIT COMMITTEE
Mr. Khalid Bashir		Chairman
Mr. Riaz Masood
Mr. Khurram Mazhar Karim
SECRETARY:
Mr. Amir Hasnain Zaidi
AUDITORS
A.F. Ferguson & Co.,
Chartered Accountants
REGISTERED OFFICE
26-B, Aibak Block
New Garden Town, Lahore.
Tel: (042) 5837989
Fax: (042)5882022
WORKS
Jute Unit, Jaranwala
NOTICE OF ANNUAL GENERAL MEETING
Notice is here by given that 38th Annual General Meeting of CRESCENT JUTE PRODUCTS LIMITED will be held on
Monday the November 04,2002 at 11:00 a.m. at 26-B, Aibak Block New Garden Town Lahore, to transact the following
business:
1.      To receive, consider and adopt the Audited Accounts of the Company for the year ended June 30,2002
together with the Directors' and Auditors' Reports thereon,
2.     To appoint Auditors for the year 2002-2003 and fix their remuneration.
BOOK CLOSURE:
The share transfer books of the Company will remain closed from October 29,2002 to November 04,2002 (both days
inclusive).
By order of the Board
Amir Hasnain Zaidi
Corporate Secretary
REGISTERED OFFICE:
26-B, Aibak Block, New Garden Town Lahore.
Telephone No: (042) 5837989
Fax No: (042)) 5882022
Dated: September 30,2002
NOTE;
1.      A member eligible to attend and vote at this Meeting may appoint another member as his/her proxy to attend
and vote instead of him/her. Proxies in order to be effective must be received by the Company at the
Registered Office not later than 48 hours before the time for holding the Meeting.
2.      Shareholders are requested to immediately notify the change in address, if any.
DIRECTORS REPORT TO THE SHARE HOLDERS
Your directors have the pleasure in presenting their 38th Annual Report together with the Audited Accounts of the
Company forthe yearended 30th June 2002.
Accounts forthe yearended 30th June 2002 show loss of Rupees 112.840 million compared to loss of Rupees 158.499
million in the year ended 30th June 2001.
REASONS FOR INCURRING LOSS FROM OPERATIONS
The Mill is closed with effect from June 6,2001. There has been no production during the year. Part of the stock carried
forward from yearending 30th June 2001 has been sold during the year.
Problem with Crescent Jute lies in its accumulated losses and shortage of working capital. In the absence of LC Limit
company is unable to import raw jute for its consumption. Servicing of the loans has become impossible. Unpaid mark up
is building up resulting in excessive financial charges.
No production, excessive borrowing carried forwards from pervious years and higher cost of financial charges are the
reasonsforincurringlossfortheyear.
CORPORATE AND FINANCIAL REPORTING FRAMEWORK
The board is mindful of its responsibilities as established by the recently issued Code of Corporate Governance by the
SECP and confirms that:
1.      That the financial statements prepared by the management of the company, present fairly its state of
affairs, the results of its operations, cash flows and changes in equity.
2.      Proper books of accounts of the company have been maintained.
3.      Appropriate accounting policies have been consistently applied in preparation of financial statements
and accounting estimates are based on reasonable and prudent judgement.
4.      International Accounting Standards, as applicable in Pakistan have been followed in preparation of
financial statements and any departure therefrom has been adequately disclosed.
5.     Thesystemofintemalcontrolissoundindesignandhasbeeneffectivelyimplementedandmonitored.
6.      There has been no material departure from the best practices of corporate governance as detailed in
the listing regulations.
GOING CONCERN
The auditors in their report have raised doubts that the company will be able to continue as going concern. To enable the
company to continue as a going concern, the management has devised a plan, which involves;
1.      Restructuring of its outstanding debts to lenders
2.      Arrangement of alternative funding. This would result in reduction of financial charges and the debt
burden leading to the company attaining satisfactory levels of profitability and meeting its
operational requirements,
The management has proposed the plan to the Committee for Revival of Sick Industrial Units for restructuring of the
debts.
We have been informed by our consultants that the Committee for Revival of Sick Industrial Units have
restructured/rescheduled bank loans along with the approval of short term pledge limit of Rupees 150.000 million in their
meeting held on August 29,2002. Formal approval is awaited.
KEY OPERATING AND FINANCIAL DATA
Key operating and financial data of the company forthe last six years is attached with this report.
DIVIDEND
Due to continued losses accumulated to over Rupees 818,365 million it was not possible forthe company to declare and
pay any dividend to its shareholders after 1992.
STATUTORY PAYMENTS
No statutory payments on account of taxes, duties, levies and charges otherthan those underappeals areoutstanding.
SIGNIFICANT PLANSAND DECISIONS
The management has devised a plan which involves restructuring of its outstanding debts to lenders and arrangement of
alternative funding which would result in reduction of financial charges and the debts burden leading to the company
attaining satisfactory levels of profitability and meeting its operational requirements. The management has proposed the
plan to the Committee for Revival of Sick Industrial Units for restructuring of the debts.
VALUE OF INVESTMENTS OF PROVIDENT AND PENSION FUNDS
			Rupees in million
Provident Fund			20.803
Pension Fund			2.207
BOARDS MEETING AND ATTENDANCE BY DIRECTORS
Date of Meeting		Attended by the Directors
January 31,2002		Mr. Zahid Hussain (Chairman)
		Mr. Mazhar Karim (Chief Executive)
		Mr.AmirHasnainZaidi
		Mr.AnisWahabZuberi
		Mr. Khalid Bashir
		Mr. Khurram Mazhar Karim
		Mr. Riaz Masood
		Mr.SaifullahKhan
February 21,2002		Mr. Zahid Hussain(Chairman)
		Mr. Mazhar Karim (Chief Executive)
		Mr. Amir Hasnain Zaidi
		Mr. Anis Wahab Zuberi
		Mr. Khurram Mazhar Karim
		Mr. Riaz Masood
April 27,2002		Mr. Mazhar Karim (Chief Executive)
		Mr.AmirHasnainZaidi
		Mr. Khalid Bashir
		Mr. Khurram Mazhar Karim
PATTERN OF SHAREHOLDING
Pattern of Shareholding is attached to the report.
TRADES IN THE SHARES OF THE COMPANY
All trades in the shares of the company carried out by its directors, CEO, CFO, Company Secretary and their spouses and
minor children have been disclosed in the report.
DEFAULT IN DEBTS. IFANY
Overdue of Rupees 23.772 million and Default of Rupees 226.060 million are reported in Credit Information Bureau
Report as on 30th June 2002. CJP has moved its case to the Committee for Revival of Sick Industrial Units (CRSIU) for
restructuring/rescheduling of the bank's loans and waiver/reduction of rate of mark up.
M/s Faysal Bank Limited filed a suit before the Judge Banking Court No. 11 Faisalabad against Directors and two
Guarantors of loan for recovery of Rupees 16.101 million. The case has been decided in favour of the Bank.
DEBTS DOUBTFUL OF RECOVERY
Amount receivable from Crescent Group Services (Pvt.) Limited (CGSL) aggregating Rupees 243.668 million. CGSL is
projecting an approximate loss of Rupees 100 million subject to favorable settlement of legal suits and claim field against
WAPDA Rupees 157.540 million and realizable value of the assets Rupees 47.400 million. The recoverability of the
amount due from CGSL is dependent upon its ability to successfully reliaze the claim and sale proceeds of its assets.
Further Monopoly Control Authority (MCA) in its order dated November 20,2000 has directed the company to recoverthe
amount due from CGSL along with interest by December 31,2002. The company had stopped charging interest on the
advance since 1995.
The Company is contesting the decision and has filed a writ petition in the Lahore High Court that has not yet been
admitted.
Management is of the view that:
•  Order of MCA is contrary to law or the usage having the force of Law.
•  Order has failed to determine material issue of law and usage having force of law.
•  There has been substantial error / defect in following the procedure provided in the Ordinance.
•  The writ will be admitted and favorably decided.
•  On the other hand:
1.     The Company has taken possession of machinery and stores worth Rupees 44 million subsequent to Balance
Sheet date.
2.      Crescent Group Services (Pvt.) Limited is being pressurized to raise additional capital for repayment of loan due
to Crescent Jute Products Limited.
AUDITORS
The present Auditors Messrs. A.F. Ferguson & Company, Chartered Accountants retire and being eligible offer them for
re-appointment.
The Directors thank the Shareholders, Bankers and Customers, who continue to extend their cooperation in days of our
crisis.
For and on behalf of the Board
Faisalabad:			MazharKarim
Dated: September30,2002			Chief Executive
KEY OPERATING AND FINANCIAL DATE OF LAST SIX YEARS
			Year ending 30th June
			2001	2000	1999	1998	1997	1996
PRODUCTION CAPACITY BASED ON SHIFT WORKING IN METRIC TONS
Jute Units			23,000	23,000	23,000	23,000	23,000	23,000
Cotton Unit			-	4,751	4,751	4,751	4,751	14,717
ACTUAL PRODUCTION IN METRIC TONS
Jute Unit			5,710	5,946	9,123	13,305	11,025	11,657
Cotton Unit			—	4,461	3,689	4,003	3,665	8,691
OPERATING RESULTS - RUPEES IN 000
Net Sales			227,960	649,253	747,721	917,759	699,606	1,041,512
Cost of Sales			236,295	575,579	653,273	761,166	640,189	961,791
Operating Expenses			47,061	59,078	63,369	72,910	59,237	60,979
Other Income			21,538	6,395	4,685	6,134	8,664	52,836
Financial Charges			121,884	125,276	162,465	169,643	166,734	161,748
Other Charges			-	-	-	11,463	24,825	73
Gain on Sale of Unit			-	161,713	-	-	-	164,616
Taxation			2,757	3,500	5,524	4,600	2,783	6,298
Deferred cost-changes in accounting policy								4,416
Net Income / (Loss)			(158,499)	53,928	(132,225)	(95,889)	(185,498)	63,660
Earning per share - Rupees			(11)	4	(9)	(6)	(12)	4
FINANCIAL POSITION • RUPEES IN000
Equity			(416,122)	(257,623)	(311,551)	(179,326)	(83,436)	102,062
Revaluation of Fixed Assets			177,241	177,241	348,569	348,568	348,568	348,568
Long Term Running Finance			14,907	35,324	35,256	132,951	-	-
Finance Lease			314	505	-	119	5,440	12,839
Debenture / Long Term Loans			-	30,433	173,508	70,206	101,041	102,641
Deferred Liabilities			15,154	12,109	9,200	-	-	-
Current Liabilities			698,573	619,299	590,057	854,490	902,024	827,415
			490,067	617,288	845,039	1,227,008	1,273,637	1,393,525
Fixed Capital Expenditure			147,485	161,108	418,904	461,059	506,282	562,594
Long Term Investment			2,570	2,570	2,570	4,625	5,050	7,250
Long Term Deposits			1,993	1,031	1,258	3,449	4,022	7,006
Current Assets			338,019	452,579	422,307	757,875	758,283	816,675
			490,067	617,288	845,039	1,227,008	1,273,637	1,393,525
FORM 34
PATTERN OF HOLDING OF SHARES
HELD BY SHAREHOLDERS AS AT JUNE 30,2002
SHAREHOLDERS	FROM	TO	TOTAL SHARES
581	1	100	19,018
512	101	500	132,876
219	501	1,100	153,940
214	1,001	5,000	505,617
62	5,001	10,000	452,609
25	10,001	15,000	314,031
12	15,001	20,000	215,798
11	20,001	25,000	251,527
6	25,001	30,000	174,692
9	30,001	35,000	289,491
2	35,001	40,000	74,764
4	40,001	45,000	167,180
2	45,001	50,000	96,901
3	50,001	55,000	154,788
1	55,001	60,000	55,345
3	60,001	65,000	184,877
2	65,001	70,000	132,715
2	75,001	80,000	160,000
1	90,001	95,000	92,812
1	95,001	100,000	97,152
1	145,001	150,000	149,724
1	150,001	155,000	151,420
2	155,001	160,000	312,335
3	200,001	205,000	606,453
1	260,001	265,000	263,366
1	275,001	280,000	278,266
1	305,001	310,000	309,375
1	365,001	370,000	367,224
1	535,001	540,000	538,417
1	685,001	690,000	686,489
1	1,715,001	1,720,000	1,716,683
1	2,745,001	2,750,000	2,747,211
1	3,210,001	3,215,000	3,210,372
1,688			15,063,468
SUMMARY OF SHAREHOLDERS
AS AT JUNE 30, 2002
Categories of shareholders		Number	Shares Held	Percentage
Individuals		1,628	3,603,237	24
Investment Companies		3	287,472	2
Insurance Companies		9	726,905	5
Joint Stock Companies		22	5,530,451	37
Financial Institutions		14	4,390,276	29
Others		12	525,127	3
TOTAL		1,688	15,063,468	100
Others
Abandand Property		1	1,106	0
Govt. Authorities (CLA)		1	1	-
Modarabas		5	176,302	1
Non-Resident		1	309,375	2
Trust		4	38,343	0