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| 18th
ANNUAL REPORT 1996 |
|
| TOYO
NASIC |
|
| Nasir
Siddiq Corporation (PAKISTAN) LTD. |
|
|
|
|
| CONTENTS |
|
| Company
Information |
|
| Notice
of Meeting |
|
| The
Report |
|
| Auditors'
Report |
|
| Balance
Sheet |
|
| Profit
& Loss Account |
|
| Statement
of Sources and |
|
| Application
of Funds |
|
| Notes |
|
| Pattern of Shareholding |
|
|
|
| COMPANY
INFORMATION |
|
|
| CHAIRMAN
& |
|
| MANAGING
DIRECTOR |
|
MR. TARIQ BAIG |
|
|
|
|
|
|
|
|
| DIRECTORS |
|
|
MR. OMER BAIG |
|
|
|
MRS. NAIMA TARIQ |
|
|
|
MR. MANSOOR IRFANI |
|
|
MR. M. SHAKEEL MALIK |
|
|
|
MR. EHSAN UL HAQUE |
|
|
MR. KHURRAM BAIG |
|
|
|
|
|
|
| NOMINEE
DIRECTOR |
ICP |
MR. HAROON ISMAlL KAYANI |
|
| NOMINEE
DIRECTOR |
IPI |
MR. MUJAHID ESHAI |
|
| NOMINEE
DIRECTOR |
NDFC |
MR. JAVAID SADIQ |
|
|
|
| COMPANY
SECRETARY |
|
MR. WAQAR ULLAH, FCA |
|
|
|
| AUDITORS |
|
|
SHAHID SAMI & CO. |
|
|
|
|
CHARTERED ACCOUNTANTS |
|
|
| REGISTERED
OFFICE |
|
85 - B/2, GULBERG III,
LAHORE. |
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|
TEL: 5755283, 5755284,
5755285 |
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|
|
|
FAX: (042) 5 711659 |
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|
|
|
|
| FACTORY |
|
|
33 - KM
LAHORE/SHEIKHUPURA ROAD, |
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|
|
|
TEL: (042) 7925652,
(04931) 55441-3 |
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|
|
FAX: (04931) 53912 |
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|
| NOTICE |
|
| Notice
is hereby given that the 18th Annual General Meeting of the members of the |
|
| Company
will be held on Saturday the December 28, 1996 at 11.00 A.M. at the
Registered |
|
| Office
of the Company at 85-B/2, Gulberg III, Lahore to transact the following
business:- |
|
|
| 1.
To confirm the minutes of the Extra Ordinary General Meeting of the members
held |
|
| on September 3, 1996. |
|
|
| 2.
To receive and adopt the audited accounts of the Company for the year ended
June |
|
| 30, 1996, comprising Balance Sheet, Profit
& Loss Account and the Report of the |
|
| Auditors and Directors thereon. |
|
|
| 3.
To appoint Auditors of the Company for the year ending June 30, 1997 and fix
their |
|
| remuneration. |
|
|
| 4.
To transact any other business with the permission of the chairman. |
|
|
| SPECIAL
BUSINESS |
|
| 5.
To consider the change of name of the Company to TARIQ
GLASS INDUSTRIES |
|
| LTD and to pass the following resolution as a Special Resolution
with or without |
|
| amendment(s). |
|
|
|
|
| "Resolved
the name of the Company be and is hereby changed to TARIQ GLASS |
|
| INDUSTRIES
LIMITED". |
|
|
| STATEMENT
OF MATERIAL FACTS UNDER SECTION 160 OF THE ORDINANCE |
|
| The
name of the company depicts the names of the then Sponsoring Directors in |
|
| an
abbreviated form. The present Management took over the Company in 1993 |
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| and
it is now considered necessary to change the name to avoid any ambiguity in |
|
| the
names of business now conducted by the old Sponsors. |
|
|
|
|
| BY
ORDER OF THE BOARD |
|
| (WAQAR
ULLAH) |
|
| CORPORATE
SECRETARY |
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|
|
|
| NOTES: |
|
| a)
The share transfer books of the Company will remain closed from December 22, |
|
| 1996
to December 28, 1996 (both days inclusive). Transfers received in order upto |
|
| the
close of business on December 21, 1996 will be in time to effect the voting |
|
| rights
at the Annual General Meeting. |
|
|
| b)
A member entitled to attend and vote at the meeting may appoint another
member |
|
| as
his/her proxy to attend and vote. Votes may be given personally or by proxy
or |
|
| by
attorney or in case of a corporation by representative. The instrument of
proxy |
|
| duly
executed should be lodged at the Registered Office of the Company not later |
|
| than
48 hours before the time of meeting. |
|
|
| c)
The shareholders are requested to notify the Company of the change in their |
|
| address,
if any. |
|
|
|
| THF
REPORT |
|
| On
behalf of the Board of Directors I feel pleasure to welcome you to the 18th
Annual |
|
| General
Meeting and present to you the audited accounts together with report of the |
|
| Auditors
for the year ended June 30, 1996. |
|
|
| During
the year under report your Company made progress in achieving the highest
ever |
|
| net
sale of finished goods amounting to Rs. 272 million. The company after
providing for |
|
| administrative
and financial expenses and providing Rs. 36.570 million for depreciation and |
|
| amortisation
made a loss of Rs. 14.038 million. |
|
|
| As
reported in the last report the Company is manufacturing Moulds and with the |
|
| technology
gained in this respect we will be self sufficient in this account in the
years to |
|
| come. |
|
|
| Your
company made earnest and best efforts to pay the dividend but the re-payment
of |
|
| debts
and financial charges hampered in our way and we could not do so. However
your |
|
| company
is striving hard to achieve this end and with the passage of time Insha-Allah
the |
|
| liquidity
position of the company will improve and we will have surplus funds at our |
|
| disposal
to pay the dividend. |
|
|
| The
retiring Auditors M/S. Shahid Sami & Company Chartered Accountants retire
and |
|
| being
eligible offer them selves for reappointment. The Directors recommend their |
|
| appointment. |
|
|
| The
matter of change of name of the Company remained under consideration for
quite |
|
| some
time and finally your management has decided that as the previous owners of
the |
|
| company
are now active in their own business and names of the two companies i.e. this |
|
| company
and their company are inflicting and one considers this company as part of
the |
|
| previous
owners and thus enquiries are made. Your Directors have therefore decided to |
|
| change
the name of the Company to TARIQ GLASS INDUSTRIES LIMITED this name is |
|
| also
available with the Joint Registrar of Companies Lahore. |
|
|
| The
pattern of shareholdings is annexed. |
|
|
| The
Management and workers relations remained cordial during the year and the |
|
| management
acknowledges the hardwork and devotion to duty put in by the staff and |
|
| workers
of your Company and we look forward for their continued support in future. |
|
|
| FOR
AND ON BEHALF OF THE BOARD |
|
| (TARIQ
BAIG) |
|
| CHAIRMAN
& |
|
| MANAGING
DIRECTOR |
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
| We
have audited the annexed balance sheet of NASIR SIDDIQ CORPORATION |
|
| (PAKISTAN)
LIMITED as at June 30, 1996 and the related profit and loss account and |
|
| statement
of source and application of funds, together with the notes forming part
thereof, |
|
| for
the year 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 year was for the purposes of the |
|
| company's
business; and |
|
|
|
|
| (iii)
the business conducted, investments made and the expenditure |
|
| incurred
during the year were in accordance with the objects of the |
|
| company; |
|
|
|
|
| (c)
in our opinion and to the best of our information and according to |
|
| explanations
given to us, the balance sheet, profit and loss account and the |
|
| statement
of source and application of funds, 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 loss and the changes in source and application of funds for the year |
|
| then
ended; and |
|
|
| (d)
in our opinion, no Zakat was deductible at source under the Zakat and Ushr |
|
| Ordinance,
1980. |
|
|
| SHAHID
SAMI & CO., |
|
| Chartered
Accountants |
|
|
| BALANCE
SHEET AS |
|
| AT
JUNE 30, 1996 |
|
|
|
1996 |
1995 |
|
|
|
|
Note |
RUPEES |
RUPEES |
|
|
|
|
|
| SHARE
CAPITAL AND RESERVES |
|
|
|
| Share
Capital |
|
3 |
100,000,000 |
100,000,000 |
|
|
| Accumulated
(Loss) |
|
|
(53,617,673) |
(53,579,282) |
|
|
|
|
|
----------- |
----------- |
|
|
|
|
|
46,382,327 |
46,420,718 |
|
|
|
|
|
|
|
| REDEEMABLE
CAPTIAL |
|
4 |
9,400,000 |
14,100,000 |
|
|
|
|
|
|
| DEBENTURES
AND LONG TERM LOANS |
|
|
|
| SECURED |
|
5 |
96,687,504 |
125,175,001 |
|
|
| UN
- SECURED |
|
6 |
120,000,000 |
134,000,000 |
|
|
|
|
|
|
|
| LIABILITIES
AGAINST ASSETS |
|
|
|
|
| SUBJECT
TO FINANCE LEASE |
|
7 |
21,001,623 |
20,826,504 |
|
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
| Short
Term Borrowings |
|
8 |
32,133,986 |
14,929,761 |
|
|
| Current
Maturity of Long Term |
|
|
|
|
| Loans
and Debentures |
|
9 |
63,674,672 |
31,977,311 |
|
|
| Creditors,
Provisions and Accrued |
|
|
|
| Expenses |
|
10 |
60,243,748 |
47,781,868 |
|
|
| Dividend
- Unclaimed |
|
|
7,966 |
7,966 |
|
|
|
|
|
----------- |
----------- |
|
|
|
|
|
156,060,372 |
94,696, 906 |
|
|
|
|
|
|
|
| CONTINGENCIES
AND COMMITMENTS |
|
11 |
- |
- |
|
|
|
|
|
----------- |
----------- |
|
|
|
|
|
449,531,826 |
435,219,129 |
|
|
|
|
|
=========== |
=========== |
|
|
|
| These
Account should be read in conjunction with the annexed notes which form an |
|
| integral
part thereof. |
|
|
| Auditor
report to the members is annexed. |
|
|
|
1996 |
1995 |
|
|
|
|
Note |
RUPEES |
RUPEES |
|
|
| FIXED
ASSETS - TANGIBLE |
|
|
|
| Operating
Assets |
|
12 |
258,865,835 |
286,211,319 |
|
|
|
|
|
|
|
|
| LEASED
ASSETS |
|
13 |
32,545,373 |
- |
|
|
|
|
|
|
|
|
|
|
| CAPITAL
WORK-IN-PROGRESS |
|
14 |
21,418,862 |
32,141,999 |
|
|
|
|
|
|
|
|
|
| DEFERRED
COSTS |
|
15 |
14,995,529 |
19,279,965 |
|
|
|
|
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Stores
and Spares |
|
16 |
56,969,609 |
51,315,988 |
|
|
| Stocks |
|
17 |
37,801,516 |
26,565,493 |
|
|
| Trade
Debtors- Unsecured |
|
18 |
15,161,201 |
6,626,885 |
|
|
|
|
|
|
|
|
| Advances,
Deposits, Prepayments |
|
|
|
| and
Other Receivables |
|
19 |
10,315,128 |
12,073,245 |
|
|
| Cash
and Bank Balances |
|
20 |
1,458,773 |
1,004,235 |
|
|
|
----------- |
----------- |
|
|
|
|
|
121,706,227 |
97,585,846 |
|
|
|
|
|
|
----------- |
----------- |
|
|
|
449,531,826 |
435,219,129 |
|
|
|
|
=========== |
=========== |
|
|
| (MANSOOR
IRFANI) |
|
| Director |
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JLJNE :30, 1996 |
|
|
|
1996 |
1995 |
|
|
|
|
Note |
RUPEES |
RUPEES |
|
|
|
|
|
|
|
|
|
| SALES
- NET |
|
21 |
272,483,274 |
111,757,834 |
|
|
|
|
|
|
|
| COST
OF SALES EXCLUDING DEPRECIATION |
22 |
200,899,924 |
83,093,146 |
|
|
|
----------- |
----------- |
|
|
|
|
71,583,350 |
28,664,688 |
|
|
|
|
|
|
| OPERATING
EXPENSES |
|
|
|
| Administrative |
|
23 |
7,594,372 |
3,592,228 |
|
|
| Selling
and distribution |
|
24 |
9,910,157 |
3,265,644 |
|
|
|
----------- |
----------- |
|
|
|
|
|
17,504,529 |
6,857,872 |
|
|
|
|
|
|
|
|
|
----------- |
----------- |
|
|
| OPERATING
PROFIT/(LOSS) |
|
|
54,078,821 |
21,806,816 |
|
|
|
|
|
| Depreciation |
|
12 |
32,285,523 |
15,031,464 |
|
|
| Financial
expances |
|
25 |
31,402,501 |
14,401,135 |
|
|
| Amortisation |
|
15 |
4,284,436 |
2,142,218 |
|
|
|
----------- |
----------- |
|
|
|
|
|
67,972,460 |
31,574,817 |
|
|
|
|
|
|
|
|
|
----------- |
----------- |
|
|
|
|
|
(13,893,639) |
(9,768,001) |
|
|
|
|
|
| OTHER
INCOME |
|
26 |
1,217,664 |
1,712,995 |
|
|
|
----------- |
----------- |
|
|
| (LOSS)
FOR THE YEAR |
|
(12,675,975) |
(8,055,006) |
|
|
|
|
|
|
| TAXATION |
|
|
(1,362,416) |
(558,789) |
|
|
|
----------- |
----------- |
|
|
|
|
|
(14,038,391) |
(8,613,795) |
|
|
|
|
|
|
| BROUGHT FORWARD (LOSS) |
|
'(53,579,282) |
(44,965,487) |
|
|
|
|
|
|
| ADJUSTMENT |
|
27 |
14,000,000 |
- |
|
|
|
----------- |
----------- |
|
|
| ACCUMULATED
(LOSS) |
|
|
|
| CARRIED
FORWARD |
|
|
(53,617,673) |
(53,579,282) |
|
|
|
|
|
=========== |
=========== |
|
|
|
| (These
accounts should be read in conjunction with the annexed notes which form an |
|
| integral
part thereof.) |
|
|
| ANNUAL
REPORT 'i996 |
|
|
| STATEMENT
OF SOURCE AND APPLICATION OF FUNDS |
|
| FOR
THE YEAR ENDED JUNE 30, 1996 |
|
|
1996 |
1995 |
|
|
|
|
|
RUPEES |
RUPEES |
|
|
|
|
|
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
|
|
| Net
Loss after taxation |
|
|
(14,038,391) |
(8,613,795) |
|
|
| Adjustments
for : |
|
|
|
|
| Depreciation |
|
|
32,285,523 |
15,031,464 |
|
|
| Amortisation |
|
|
4,284,436 |
2,142,218 |
|
|
| Profit
on sale of fixed assets |
|
|
(246,427) |
- |
|
|
|
|
|
----------- |
----------- |
|
|
| Operating
profit before working |
|
|
|
| capital
changes |
|
|
22,285,141 |
8,559,887 |
|
|
|
|
|
|
|
|
|
| (Increase)/Decrease
in Current Assets |
|
|
|
| Stores
& Spares |
|
|
(5,653,622) |
(3,983,872) |
|
|
| Stocks |
|
|
(11,236,023) |
4,416,772 |
|
|
| Trade
Debtors |
|
|
(8,534,316) |
5,113,492 |
|
|
| Advances,
Deposits, Prepayments |
|
|
|
| and
other Receivables |
|
|
1,758,117 |
(6,473,551) |
|
|
|
|
|
----------- |
----------- |
|
|
|
(23,665,844) |
(92 7,159) |
|
|
|
|
|
|
|
| Increase/(Decrease)
in Current Liabilities |
|
|
|
| Creditors,
Provision and Accrued Expenses |
|
124,618,801 |
1,685,280 |
|
|
| Short
Term Borrowings |
|
17,204,225 |
210,311 |
|
|
|
|
|
----------- |
----------- |
|
|
|
|
|
29,666,105 |
1,895,591 |
|
|
|
|
|
|
|
|
|
|
|
----------- |
----------- |
|
|
| Net
Cash from operating activities |
|
28,285,402 |
9,528,319 |
|
|
|
|
|
|
|
|
| CASH
FLOWS FROM INVESTING ACTIVITIES |
|
|
|
| Purchase
of Property, Plant & Equipment |
|
(37,653,984) |
(865,575) |
|
|
| Proceeds
from Sale of Fixed Assets |
|
- |
415,000 |
|
|
| Increase
in Capital Work-in-Progress |
|
10,723,136 |
(8,456,2 72) |
|
|
|
|
|
----------- |
----------- |
|
|
| Net
cash used in investing activities |
|
(26,515,848) |
(9,321,847) |
|
|
|
|
|
|
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
|
|
|
| Proceeds
from long-term Borrowings |
|
(5,617,888) |
1,696,258 |
|
|
| Payments
under Finance Lease |
|
4,302,872 |
(2,459,222) |
|
|
|
|
|
----------- |
----------- |
|
|
| Net
cash used in financing activities |
|
(1,315,016) |
(762,964) |
|
|
|
|
|
----------- |
----------- |
|
|
|
|
|
|
|
|
| NET
IN CREASE/(DECREASE) IN CASH |
|
|
|
|
| &
CASH EQUIVALENTS |
|
|
454,538 |
(556,492) |
|
|
|
|
|
|
|
|
| CASH
AND CASH EQUIVALENTS AT THE |
|
|
|
|
| BEGINNING
OF THE YEAR/PERIOD |
|
1,004,235 |
1,560,727 |
|
|
|
|
|
----------- |
----------- |
|
|
| CASH
AND CASH EQUIVALENTS AT THE |
|
|
|
| END
OF THE YEAR/PERIOD |
|
|
1,458,773 |
1,004,235 |
|
|
|
|
=========== |
=========== |
|
|
|
| NASIR
SIDDIQ CORPORATION (PAKISTAN) LTD. |
|
| NOTFS
TO THF ACCOUNTS |
|
| FOR
THE YEAR ENDED JUNE 30, 1996 |
|
|
| 1.
THE COMPANY AND ITS OPERATIONS |
|
| The
Company is a public limited listed Company engaged in the manufacture of |
|
| glass
bottles and tableware. |
|
|
| 2.
ACCOUNTING POLICIES |
|
|
| 2.1
Basis of Accounting |
|
| These
accounts are prepared under the historical cost convention. |
|
|
|
|
| 2.2
Operating Assets, Leased Assets and Depreciation: |
|
|
|
| 2.2.1
Operating Assets |
|
| Freehold
land is not depreciated. |
|
|
|
|
| The
Company provides depreciation on the "Reducing Balance Method," |
|
| without
considering extra shifts and initial allowances for its other fixed |
|
| assets |
|
|
|
|
| Full
year's depreciation is provided on additions and no depreciation is |
|
| provided
on deletions irrespective of the actual dates of additions or |
|
| deletions. |
|
|
|
| Minor
renewals or replacements and maintenance and repairs are |
|
| charged
to the Profit and Loss account. Major renewals and |
|
| improvements
are capitalised. Profits and Losses on disposal of assets |
|
| are
reflected in the Profit and Loss account for the year. |
|
|
| 2.2.2
Leased Assets |
|
|
| Assets
subject to finance lease are stated at the lower of present value of |
|
| minimum
lease payments under the lease agreements and the fair value |
|
| of
assets less depreciation at the rates applicable to the Company's own |
|
| assets.
The related obligations of lease are accounted for as liabilities. |
|
|
| 2.3
Capital work-in-progress is stated at cost. |
|
|
| 2.4
Deferred Costs |
|
| The
deferred costs are amortised over a period of five year. |
|
|
|
| 2.5
Foreign Currencies |
|
| a.
The unsecured foreign currency loan from Industrial Products Investment |
|
| Limited
has been frozen at the rate of exchange prevailing on December |
|
| 31,
1993. No exchange fluctuation is thereof to be accounted for. |
|
|
| b.
Cost of assets subject to foreign exchange fluctuation is capitalised |
|
| unless foreign forward risk cover is
obtained. |
|
|
