| IDEAL ENERGY LTD. |
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| Annual
Reports 2002 |
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| CONTENTS |
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| COMPANY INFORMATION |
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| NOTICE OF MEETING |
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| DIRECTOR'S REPORT |
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| AUDITOR'S REPORT |
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| BALANCE SHEET |
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| PROFIT AND LOSS ACCOUNT |
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| STATEMENT OF CHANGES IN EQUITY |
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| CASH FLOW STATEMENT |
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| NOTES
TO THE ACCOUNTS |
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| PATTERN OF SHAREHOLDING |
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| LIST
OF DIRECTORS |
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| CHAIRMAN: |
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| NISAR AHMED SHEIKH |
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| CHIEF
EXECUTIVE: |
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| MUHAMMAD ARSHAD SHEIKH |
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| DIRECTORS: |
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| MUHAMMAD SAEED |
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| MUHAMMAD ANWAR SAJJAD |
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| AMJAD
SAEED |
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| SHAHZAD AHMAD |
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| NAUREEN
SHAZAD |
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| |
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| SECRETARY: |
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| JAVED ABBAS NAQVI |
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| AUDITORS: |
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| M. YOUSAF ADIL SALEEM &
CO. |
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| CHARTERED
ACCOUNTANTS |
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| BANKERS: |
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| FAYSAL BANK LIMITED |
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| HABIB
BANK LIMITED |
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| REGISTERED
OFFICE AND SHARES DEPARTMENT: |
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| 404,
4™ FLOOR |
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| BUSINESS CENTRE |
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| DUNALLY ROAD, |
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| KARACHI-
PAKISTAN. |
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| PLANT: |
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| SHEIKHUPURA ROAD, |
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| TEHSIL JARANWALA, |
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| DISTRICT
FAISALABAD. |
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| NOTICE
OF MEETING |
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| Notice
is hereby given that the 8th Annual General Meeting of IDEAL ENERGY |
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| LIMITED
will be held at 404, 4th Floor Business center, Dunally road, Karachi on |
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| Saturday,
October 05, 2002. At 12.a.m. to transact the following business: |
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| |
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| 1.
To confirm the minutes of the last Annual General Meeting held at December
29, |
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| 2001 |
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| |
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| 2.
To receive, consider and adopt the audited accounts for the year ended June
30, |
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| 2002
together with the Auditor's and Directors report thereon. |
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| 3.
To approve the payment of cash dividend @ 20% ( Rs. 2.00 per share) in
the |
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| ordinary
share Capital of the Company as recommended by the beard of Directors |
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| 4.
To appoint auditors for the current year and to fix their remuneration. The
present |
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| auditors
M/s M. Yousaf Adil Saleem & Co; Chartered Accountants, being |
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| eligible,
have offered themselves for re-appointment. |
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| |
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| 5.
To transact any other ordinary business of the Company with the permission
of |
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| the chair. |
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BY ORDER OF THE BOARD |
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| KARACHI |
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JAVED ABBAS NAQVI |
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| 10-Sep-02 |
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COMPANY SECRETARY |
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| NOTES: |
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| 1.
The share transfer book of the company remains closed from 27th September
2002 |
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| to
5th October 2002 (both days inclusive). Transfers received in order at
the |
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| registered
office of the Company at the close of business hours on 26th September |
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| 2002
will be treated in time for the purposes of the dividend to transferees. |
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| |
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| 2.
A member entitle to attend and vote this meeting may appoint another
members |
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| as
proxy, proxies in order to be effective must be received at the Registered
office |
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| of
the Company not less than 48 hours before the time of the meeting. |
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| |
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| 3.
Shareholders who have deposited share into Central Depository Company
are |
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| being
advised to bring their National Identify Card alongwith CDC account |
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| number
at the meeting Venue. |
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| |
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| 4.
Shareholders are requested to promptly notify the company of change in
their |
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| addresses. |
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| DIRECTORS
REPORT TO THE MEMBER |
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| In
the name of Allah the Most Merciful and Most Benevolent. |
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| The
Director's feel pleasure in submitting their Annual report together with the
company |
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| Financial
statement for the year ended June 30, 2002 and Auditor's report thereon. |
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| |
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| Operating
result during 01-07-2001 to 30-06-2002 are given bellow: |
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| Operating
profit |
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15,809,949 |
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| Other
Income |
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503,490 |
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16,313,439 |
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| Less: Financial Charges |
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4,157,733 |
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| Provision for W.P.P.F |
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611,609 |
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4,769,342 |
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| Profit for the year before
taxation |
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11,544,097 |
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| Taxation
Current |
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17,880 |
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| Profit for the year after Tax |
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11,526,217 |
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| Un-appropriated
Profit B/F |
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59,493,527 |
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| Profit available
appropriations |
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71,019,744 |
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| Proposed
Cash Dividend @ 20 % |
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16,000,000 |
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| Un-appropriated
profit C/F |
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55,019,744 |
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| As
reported in the last annual report installation of new waste heat economizer
is |
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| completed
and started supply of steam to M/s Ishaq Textile Mills Ltd and M/s
Arshad |
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| Corporation
(pvt) Ltd, in February 2002. Which will fetch additional revenue. |
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| This
year as expected the better result could not achieve. Due to rapid increase
of Furnace |
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| oil
prices which increased in every fortnight. Highest rate was in October 2001,
which |
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| comes
to Rs. 12450.58. If the prices of Furnace oil will be stable, profitability
will be |
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| increase
in next year. |
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| Inspite
of increase of Furnace Oil prices, this condition your company has enmed
net |
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| profit
Rs. 11,526,217 and Board of Director's pleased to approve 20% cash dividend
as |
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| compared
last year dividend (10%). Sales revenue during the year decrease by 5.38
% |
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| due
to disconnection of one client M/s Zahidjee Textile Mills Ltd. in December
2001. |
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| Inshallah
next year sale revenue will be increase due to sale of steam. |
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| Pattern
of share holding: |
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| A
statement showing the pattern of shareholding as at June 30,2002 is attached. |
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| I
would like to express my appreciation for the continued interest and support
of all the |
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| shareholders. |
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| I
also express my appreciation to the workers, staff and officers of your
company for their |
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| hard
work. Zeal and dedication. |
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| NISAR
AHMAD SHEIKH |
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| CHAIRMAN |
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| AUDITORS
REPORT TO THE MEMBERS |
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| We
have audited the annexed balance sheet of Ideal Energy Limited as at June 30,
2002 and the |
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| related
profit and loss account, statement of changes in equity and cash flow
statement together |
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| with
the notes forming part thereof, for the year then ended and we state that we
have obtained all |
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| the
information and explanations which, to the best of our knowledge and belief,
were necessary |
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| for
the purposes of our audit. |
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| It
is the responsibility of the company's management to establish and maintain a
system of |
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| internal
control, and prepare and present the above said statements in conformity with
the |
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| approved
accounting standards and the requirements of the Companies Ordinance, 1984.
Our |
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| responsibility
is to express an opinion on these statements based on our audit. |
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| We
conducted our audit in accordance with the auditing standards as applicable
in Pakistan. |
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| These
standards require that we plan and perform the audit to obtain reasonable
assurance about |
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| whether
the above said statements are free of any material misstatement. An audit
includes |
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| examining,
on a test basis, evidence supporting the amounts and disclosures in the above
said |
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| statements.
An audit also include'^ assessing the accounting policies and significant
estimates |
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| made
by management, as well as, evaluating the overall presentation of the above
said statements. |
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| We
b;lieve that our audit provides a reasonable basis for our opinion and; after
due verification, |
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| we report that: |
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| (a)
in our opinion, proper books of account have been kept by the company as |
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| required
by the Companies Ordinance, 1984; |
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| (b) in our opinion: |
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| (i)
the balance sheet and profit and loss account together with the notes |
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| thereon
have been drawn up in conformity with the Companies |
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| Ordinance,
1984, and are in agreement with the books of account and are |
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| further
in accordance with accounting policies consistently applied; |
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| (ii)
the expenditure incurred during the year was for the purpose of the |
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| company's
business; and |
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| (iii)
the business conducted, investments made ard the expenditure incurred |
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| during
the year were in accordance with the objects of the company; |
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| (c)
in our opinion and to the best of our information and according to the |
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| explanations
given to us, the balance sheet, profit and loss account, statement of |
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| changes
in equity and cash flow statement together with the notes forming part |
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| thereof
conform with approved accounting standards as applicable in Pakistan, |
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| and,
give the inf-wmatnn required by the Companies Oldinance, 1984, in the |
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| manner
so required and respectively give a true and fair view of the state of the
- |
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| company's
affairs as at June 30, 2002 and of the profit, its changes in equity and |
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| cash
flows for the year then ended; and |
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| (d)
in our opinion Zakat deductible at source under the Zakat and Ushr
Ordinance, |
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| 1980
was deducted by the company and deposited in the Central ZaKat Fund |
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| established
under Section 7 of that Ordinance. |
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| Date: September 10, 2002 |
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M. YOUSUF ADIL SALEEM &
CO., |
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| Faisalabad. |
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CHARTERED ACCOUNTANTS |
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| Note |
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| BALANCE
SHEET AS AT JUNE 30 2002 |
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| SHARE
CAPITAL AND RESERVES |
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2002 |
2001 |
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|
Rupees |
Rupees |
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| Authorised capital |
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| 10,000,000 Ordinary |
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| shares
ofRs. 10/= each |
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100,000,000 |
100,000,000 |
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| |
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| Issued subscribed and Paid up
capital |
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| 8,000,000 Ordinary shares
ofRs. 10A= |
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| each fully paid in cash |
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80,000,000 |
80,000,000 |
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| Capital reserve-share premium |
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80,000,000 |
80,000,000 |
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| Revenue reserves |
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3 |
70,019,744 |
74,493,527 |
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| LONG
TERM LOANS |
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4 |
- |
18,300,000 |
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| DEFERRED
LIABILITY |
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| Staff
retirement gratuity |
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3,466,639 |
2,522,594 |
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| CURRENT
LIABILITIES |
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| Short term bank borrowing |
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5 |
30,000,000 |
20,000,000 |
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| Current portion of long term
loans |
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12,800,000 |
- |
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| Creditors, accrued and
other liabilities |
6 |
16,810,046 |
5,725,132 |
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| Taxation |
|
17,880 |
- |
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| Dividends |
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7 |
16,014,188 |
8,023,513 |
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| COMMITMENT |
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8 |
- |
- |
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| |
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309,128,497 |
289,064,766 |
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| The
annexed notes from 1 to 30 form an integral part of these accounts. |
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| |
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|
| MUHAMMAD
ARSHAD SHEIKH |
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| CHIEF
EXECUTIVE |
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| FIXED
CAPITAL EXPENDITURE |
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| Operating Assets |
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9 |
193,277,742 |
194,710,814 |
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10 |
- |
10,162,059 |
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| |
193,277,742 |
204,872,873 |
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| CURRENT
ASSETS |
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| |
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| Stores,
spares and loose tools |
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11 |
14,687,374 |
18,327,060 |
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| Stock
of oil and lubricants |
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16,534,146 |
12,782,190 |
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| Debtors |
|
75,116,980 |
46,688,527 |
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| Advances,
deposits prepayments |
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|
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| and
other receivables |
|
7,770,838 |
5,074,863 |
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| Cash
and bank balances |
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1,741,417 |
1,319,253 |
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| |
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| |
115,850,755 |
84,191,893 |
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309,128,497 |
289,064,766 |
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| NISARAHMAD
SHEIKH |
|
| DIRECTOR |
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| |
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| PROFIT AND LOSS ACCOUNT |
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| FOR
THE YEAR ENDED JUNE 30, 2002 |
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| |
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2002 |
2001 |
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|
Rupees |
Rupees |
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| |
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| Sales |
|
16 |
289,430,272 |
292,091,321 |
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| Cost
of generation |
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17 |
269,192,872 |
271,407,803 |
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| |
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| Gross
profit |
|
20,237,400 |
20,683,518 |
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| Operating
expenses |
|
18 |
4,427,451 |
4,028,187 |
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| |
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|
|
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| Operating
profit |
|
15,809,949 |
16,655,331 |
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| Other Income |
|
19 |
503,490 |
610,800 |
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| |
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16,313,439 |
17,266,131 |
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| Other Charges |
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| Financial |
|
20 |
4,157,733 |
5,241,508 |
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| Workers'
profit participation fund |
|
611,609 |
611,705 |
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| |
|
4,769,342 |
5,853,213 |
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| Net
profit for the year before taxation |
|
11,544,097 |
11,412,918 |
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| |
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|
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| Taxation |
|
|
|
| Current |
|
21 |
17,880 |
- |
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| |
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|
|
| Net profit for the year
after taxation |
|
11,526,217 |
11,412,918 |
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| Unappropriated
profit brought forward |
|
59,493,527 |
56,080,609 |
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| |
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|
|
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| Profit
available for appropriations |
|
71,019,744 |
67,493,527 |
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| |
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|
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| Appropriation |
|
|
|
| Proposed cash dividend @ 20% |
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|
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| (2001 @ 10%) |
|
16,000,000 |
8,000,000 |
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| |
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|
|
|
| Unappropriated profit Carried
forward |
|
55,019,744 |
59,493,527 |
|
| Earings
per share - Basic |
|
22 |
1 |
1 |
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| |
|
| The
annexed notes from 1 to 30 from an integral part of these accounts. |
|
| |
|
| MUHAMMAD
ARSHAD SHEIKH |
|
NISAR AHMAD SHEIKH |
|
| CHIEF
EXECUTIVE |
|
DIRECTOR |
|
| |
|
| STATEMENT OF CHANGES IN EQUITY |
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| FOR
THE YEAR ENDED JUNE 30, 2002 |
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| |
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| |
|
Share Capital |
Capital Reserve |
Revenue Reserve |
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Total |
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| |
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| |
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|
Share Premium |
General Reserve |
Unappropirate |
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| |
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|
Profit |
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| |
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|
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
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| |
