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Pakistan Cables Limited
	(Annual Report 1995-96)
	CONTENTS
Company Information				2
Notice of Meeting				3
Highlights				4
Ten-Year Review				5
Chairman's Review				6
Report of the Directors				8
Pattern of Shareholdings				9
Graphic Illustrations				10
Auditors' Report to the Members				11
Balance Sheet				12
Profit and Loss Account				14
Cash Flow Statement				15
Notes to and Forming Part of the Accounts				16
	COMPANY INFORMATION
BOARD OF DIRECTORS
Amir Sultan Chinoy (Chairman)
Mohammad Hanif Adamjee
Mustapha A. Chinoy
Razi-ur-Rahman Khan
Sadruddin I. Saleh
Haroun Rashid
S. Gulrez Yazdani
Towfiq H. Chinoy
Shahpur Channah
Kamal A. Chinoy (Chief Executive)
COMPANY SECRETARY
Aslam Sadruddin
AUDITORS
A.F. Ferguson & Co,
Chartered Accountants
LEGAL ADVISERS
Orr. Dignam & Co,
BANKERS
ANZ Grindlays Bank
Bank of America N.T. & S.A.
Banque Indosuez
Deutsche Bank
Muslim Commercial Bank Limited
Oman International Bank
Societe Generale, The French and International Bank
Standard Chartered Bank
Registered Office, Factory and Marketing Office
B/21 Sindh Industrial Trading Estates
Manghopir Road, P.O. Box 5050 Karachi-75700
Telephone Nos: 2561170-5, Telex: 29132 PCL PK, Fax: 92-21-2564614
Regional Office
Lahore		Co-operative Insurance Building, Shahra-e-Quaid-e-Azam
		Telephone Nos: 7355783, 7120790 - 91, 353520, Fax: 7355480
Branch Offices
Multan		Shershah Road, Telephone No, 33132,
Rawalpindi		445-A, Adamjee Street, Telephone No, 568895, Fax: 051-512797
	NOTICE OF ANNUAL GENERAL MEETING
NOTICE IS HEREBY GIVEN THAT the Forty-third Annual General Meeting of the shareholders
of Pakistan Cables Limited will be held on Monday the 4th November, 1996 at 11,00 a.m.
at the Council Hall of the Overseas Investors Chamber of Commerce and Industry, Chamber
of Commerce Building, Talpur Road, Karachi, to transact the following business:
Ordinary Business
1. To receive and consider the Statement of Accounts for the 18 months period ended
June 30, 1996 together with the Reports of the Directors and Auditors thereon.
2. To approve the payment of Dividend as recommended by the Directors, (The Directors
have recommended a final dividend of 32.5% in addition for an interim dividend
of 15% which has already been paid to the shareholders).
3. To approve the Auditors' remuneration for January 1995 - June 1996, to appoint
Auditors for the ensuing year, and to fix their remuneration, (Messrs, A. F. Ferguson
& Co, Chartered Accountants, retire, and being eligible, have offered themselves
for re-appointment).
4. To transact any other business which may legally be transacted of an Annual General
Meeting.
NOTES:
The Shares Transfer Books of the Company will remain closed from 22nd October,
1996 to 4th November, 1996, (both days inclusive) No transfer will be accepted
for registration during this period.
A member entitled to attend and vote at this Meeting is entitled to appoint a
proxy to attend and vote instead of him. A proxy need not be a member of the
Company.
The instrument appointing the proxy and the Power of Attorney or other authority
under which it is signed, or a notarially certified copy thereof, must be lodged
at the Company's Registered Office not later than 48 hours before the time of
the Meeting.
HIGHLIGHTS
			Eighteen
			months	Year
			ended	ended
			June	December
			30, 1996	31, 1994
			Rs. Million	Rs. Million
Sales			964.65	438.24
Profit after tax			19.73	9.16
Dividend			14.83	8.58
Net asssets employed			159.62	128.85
Shareholders' fund			112.04	107.14
Net earning per share		Rs.	6.32	2.93
Net earning per rupee sales Rs.			0.02	0.02
	TEN-YEAR REVIEW
			* 1995-96	1994	1993	1992	1991	1990	1989	1988	1987	1986
			Rs.	Rs.	Rs.	Rs.	Rs.	Rs.	Rs.	Rs.	Rs.	Rs.
			Million	Million	Million	Million	Million	Million	Million	Million	Million	Million
Sales			964.65	438.24	380.36	302.15	346,808	360,201	320,656	197,001	196,389	142,122
Profit after tax			19.73	9,157	7,868	4,173	8,331	16,557	14,197	9,443	17,073	10,962
Dividend			14.83	8,585	7,805	2,178	8,580	8,580	7,920	3,960	6.60	6.60
Bonus Issue			-	_	_	2,178	2.640	_	_	_	_	_
Capital expenditure			64.76	3,145	741	1.14	1,376	2,096	17,214	70,270	6,298	12,308
Fixed assets at cost			244.13	179,055	175,979	175,420	180,772	180.38	179.67	162,583	94.79	89,473
Current assets less
current liabilities			37.833	41,609	48.63	61.23	55,085	61,849	54.68	59,393	50,895	52,722
Current Assets:
Current Liabilities			1.1:1	1.2:1	1.3:1	1.4:1	1.4:1	1.4:1	1.5:1	1.7:1	1.8:1	2.5:1
Shareholders' funds
Issued capital			31.22	31.22	31.22	29,040	26.40	26,400	26,400	26,400	26,400	26,400
Reserve & retained
earnings			80.82	75,919	75.35	77,462	78,107	78.36	70.38	64.10	58,619	48,146
Total Shareholders' fund			112.04	107,137	106.57	106.50	104,507	104,756	96,779	90,502	85,019	74.55
Long term Loans & Liabilities			47.58	21.71	37.57	47,105	55,413	67,563	76,712	82,006	21.32	26,684
Net Assets employed			159.62	128,845	144,133	153,607	159,920	172,319	173,491	172,508	106,336	101.23
Net Earnings as percentage
of net assets employed %			12	7	5	3	5	10	8	5	16	11
Earning per rupee of sales Rs.			0.02	2	2	1	2	0.05	0.04	0.05	0.09	8
Earning per share         Rs.			6.32	293	252	144	316	627	5.38	3.58	647	415
Cash Dividend per share    Rs.			4.75	275	250	75	325	3.25	300	150	250	250
Bonus Issue             %			-	-	-	750	10.00	-	-	-	-	-
Cash Dividend as a % of
shareholders funds     %			13.20	8.00	7.30	2.00	8.20	8.20	82	44	78	89
Break-up value per share    Rs.			35.89	34.32	34.14	36.67	3,959	39.68	3,666	34.28	3,220	28.24
		* Eighteen months ended June 30, 1996
	CHAIRMAN'S REVIEW
On behalf of your Board of Directors, I am pleased to present you the report for the 18
months period ended on 30th June, 1996,
BOARD CHANGES
The following directors were elected unopposed effective from May 17, 1996 in the
Extraordinary General Meeting of the Company held on 5th May, 1996:
Mr. Amir S. Chinoy			Mr. Sadruddin I. Saleh
Mr. M, Hanif Adamjee			Mr. Haroun Rashid
Mr. M Asadullah Sheikh			Mr. Towfiq H. Chinoy
Mr. Mustapha A. Chinoy			Mr. Shahpur Channah
Mr. S. Gulrez Yazdani			Mr. Kamal A. Chinoy
Subsequently on 15th September, 1996 Mr. M. Asadullah Sheikh, nominee director of National
Investment Trust Limited (NIT) has been replaced by Mr. Razi-ur-Rahman Khan, the new
Managing Director of NIT, as director of the Company.
The Board wishes to place on record its appreciation of the contributions made by the
outgoing Director and takes great pleasure in welcoming the new Director.
CHANGE OF ACCOUNTING PERIOD
Pursuant to the amendment made in the Income Tax Ordinance 1979 by the Finance Act
1995, the Company changed its accounting year from calendar year to fiscal year. Hence
this year instead of closing the books on December 31, 1995, they were closed on June
30, 1996 as a result of which the present accounts are for a period of 18 months.
OPERATING PERFORMANCE
The period under review shows encouraging results in spite of the fact that one has been
faced with high inflation, a deteriorating Rupee, regular strikes, power breakdowns and severe
competition, Sales of Rs. 964.7 M for the 18 months ended June 30, 1996 is more than double
of 1994 sales, Gross profit of Rs. 142.4 M for the 18 months is higher by 92% over 1994,
Percentage wise, there is a drop of 2.1% mainly due to the higher cost of imported raw
material due to the deteriorating value of Pak rupee and the high metal prices during the
period, the whole of which could not be passed on to the customers.
Financial charges of Rs. 31.7 M for the 18 months are higher by Rs. 19.4 M compared to
12 months of 1994 mainly as a result of high receivables from KESC and WAPDA due to
their financial crisis. Financial charges has also increased due to the long term loan obtained
for the Copper Rod Plant. In spite of high financial charges, net profit after tax is Rs. 19.7
M which is 115% higher than 12 months profit of 1994.
DIVIDEND
Your directors recommend payment of final dividend of Rs. 3.25 per share (32.5%) in addition
to interim dividend of Rs. 1.50 (15%) per share already paid, This bring the total dividend
for the 18 months period at Rs. 4.75 per share (47,5%) compared with Rs. 2.75 per share
(27.5%) for the year ended December 31, 1994.
INDUSTRY OVERVIEW
In my review of 1994 accounts I had expressed my concern regarding the higher incidence
of excise duty and sales tax on cables amounting to over 25%, Unfortunately, the rate of
sales has been further increased from 15% to 18% bringing the total levy of excise duty and
sales tax to 29,8%. This is altogether too high and as mentioned earlier, it encourages tax
evasion, affecting Government revenue on the one hand and abbeting the supply
of substandard goods on the other.
The Copper Rod Plant which has supplied by Outokumpu in Finland, commenced production
on schedule in June 1996, By the grace of God, the plant has performed well so far, in
that the quality of the Copper Rod is excellent and the productivity of the plant is most
encouraging, The strategic and commercial benefits of this upstream investment should benefit
us in the coming year.
FUTURE PROSPECTS
We are encouraged by the fact that we are carrying forward a healthy order book, However,
a degree of uncertainty is introduced as a result of the financial difficulties being faced
by WAPDA and KESC, We hope that as a result of privatization and imposition of financial
discipline the situation will correct itself soon.
The Government needs to encourage industrial investment by lowering interest rates, freeing
liquidity for the commercial sector and providing reasonable protection to local industry. This
in turn will have a positive fallout on units like ours, which manufacture infrastructural items,
The deterioration of the Pak Rupee also needs to be maintained within reasonable limits.
STAFF
Relationship with employees at all levels remained warm and cordial. A new CBA was elected
by the workers in late 1995. A two year agreement which is valid upto December 1997 was
amicably negotiated with the CBA. On behalf of the Directors and employees of the company,
I express our gratitude to all our valued customers, distributors and banks for their confidence
and support.
	REPORT OF THE DIRECTORS
1. The Directors have pleasure in submitting their Report and Audited Accounts for the 18
months period ended June 30, 1996.
					Rs. '000
The net profit after tax amounted to					19,733
To this is added unappropriated profit
brought forward from last year					919
					--------
					20,652
					=========
The Directors recommend:
Payment of final dividend at the rate
of Rs. 3.25 per share (32.5%)					10,146
Interim Dividend of Rs. 1.50 per share
(15%) already paid					4,683
Transfer to General Reserve					5,000
Leaving unappropriated profit to be carried forward					823
					=========
					20,652
2. The following directors were elected unopposed effective from May 17, 1996 in the Extraordinary
General Meeting of the Company held on 5th May, 1996:
Mr. Amir S. Chinoy			Mr. Sadruddin I. Saleh
Mr. M. Hanif Adamjee			Mr. Haroun Rashid
Mr. M. Asadullah Sheikh			Mr. Towfiq H. Chinoy
Mr. Mustapha A. Chinoy			Mr. Shahput Channah
Mr. S. Gulrez Yazdani			Mr. Kamal A. Chinoy
Subsequently on 15th September, 1996 Mr. M. Asadullah Sheikh, nominee director of National
Investment Trust Limited (NIT) has been replaced by Mr. Razi-ur-Rahman Khan, the new
Managing Director of NIT, as director of the Company.
3. The Chairman's Review on page 6 covers significant activities of your Company.
4. The pattern of shareholding is provided on page 9.
5. The present Auditors M/s. A.F. Ferguson & Co, retire and offer themselves for re-appointment.
	PATTERN OF SHAREHOLDING As AT JUNE 30, 1996
No. of Shareholders		Shareholding			Total Shares held
357		1	to	100	14,343
418		101	to	500	101,408
109		501	to	1,000	79,469
118		1,001	to	5,000	249,242
10		5,001	to	10,000	74,296
7		10,001	to	15,000	87,323
2		15,001	to	20,000	34,220
1		20,001	to	25,000	21,500
2		25,001	to	30,000	54,212
-		30,001	to	40,000	-
1		40,001	to	45,000	44,343
1		45,001	to	50,000	46,310
-		50,001	to	85,000	-
1		85,001	to	90,000	85,815
1		90,001	to	95,000	90,552
-		95,001	to	105,000	-
1		105,001	to	110,000	109,869
-		110,001	to	135,000	-
1		135,001	to	140,000	135,553
-		140,001	to	200,000	-
I		200,001	to	205,000	201,379
-		205,001	to	290,000	-
1		290,001	to	295,000	292,230
-		295,001	to	365,000	-
1		365,001	to	370,000	369,609
1		370,001	to	375,000	373,021
-		375,001	to	655,000	-
1		655,001	to	660,000	657,106
-		660,001	to	31,218,000	-
-------					-------
1,035					3,121,800
-------					-------
Category of shareholders			Number		Shares held	Percentage
Individuals			1,005		1,896,123	6,074
investment Companies			2		742,921	2,380
insurance Companies			6		334,676	1,072
Joint Stock Companies			12		45,186	145
Financial Institutions			5		81,257	260
Modaraba Companies			-		-	-
Others			5		21,637	69
			-------		-------	-------
			1,035		3,121,800	10,000
			-------		-------	-------
OTHERS
Amina Muslim Girls School Trust					11,304
Pakistan Masonic Institution					1,135
The Pakistan Memon Educational & Welfare Society					8,460
Government of Pakistan, Corporate Law Authority					1
Administration Abandoned Properties Organization					737
					-------
					21,637
					========
	AUDITORS' REPORT TO THE MEMBERS
We have audited the annexed balance sheet of Pakistan Cables Limited as at June 30, 1996
and the related profit and loss account and the cash flow statement, together with the notes
forming part thereof, for the eighteen months period then ended and we state that we have
obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit and, after due verification thereof, we report that:
a) in our opinion, proper books of account have been kept by the company as required by
the Companies Ordinance, 1984;
b) in our opinion:
i) the balance sheet and profit and loss account together with the notes thereon
have been drawn up in conformity with the Companies Ordinance, 1984 and are in
agreement with the books of account and are further in accordance with accounting
policies consistently applied;
ii) the expenditure incurred during the period was for the purposes of the company's
business; and
iii) the business conducted, investments made and the expenditure incurred during the
period were in accordance with the objects of the company;
c) in our opinion and to the best of our information and according to the explanations given
to us the balance sheet, profit and loss account and the cash flow statement, together
with the notes forming part thereof, give the information required by the Companies
Ordinance, 1984 in the manner so required and respectively give a true and fair view of
the state of the company's affairs as at June 30, 1996 and of the profit and the cash
flows for the eighteen months period then ended; and
d) in our opinion zakat deductible at source under the Zakat and Ushr Ordinance, 1980 was
deducted by the company and deposited in the Central Zakat Fund established under
Section 7 of that Ordinance.
	BALANCE SHEET As AT JUNE 30, 1996
				Note	June	December
					30, 1996	31, 1994
					Rs.'000	Rs.'000
SHARE CAPITAL AND RESERVES
Authorised share capital
5,000,000 ordinary shares of Rs. 10 each					50,000	50,000
					=========	=========
Issued, subscribed and paid-up share capital
3,121,800 (December 31, 1994: 3, 121,800)
ordinary shares of Rs. 10 each				3	31,218	31,218
Reserves				4	80,000	75,000
Unappropriated profit					823	919
					----------	----------
					112,041	107,137
CUSTOMS DEBENTURES				5	1,970	-
LONG-TERM LOANS				6	28,000	5,180
DEFERRED LIABILITY
Staff retirement benefits					17,612	16,528
CURRENT LIABILITIES AND PROVISIONS
Running finances under mark-up
arrangements				7	148,639	39,313
Current maturity of - redeemable capital					-	1,571
long-term loans					7,000	15,290
Creditors, accrued expenses and other
liabilities				8	199,665	161,614
Workers' profits participation fund				9	1,875	1,588