Welcome to PakSearch.com Pakistan's Premier Business Information Service


For business information, annual reports, laws, ordinances, regulations and articles.




Google
 
Web Paksearch.com
Al-Abbas Sugar Mills Limited
Annual Report 1997 
CONTENTS
Company Information
Notice of Annual General Meeting 
Directors' Report
Pattern of Share Holding 
Auditors' Report
Balance Sheet
Profit & Loss Account
Cash Flow Statement
Notes to the Accounts 
COMPANY INFORMATION
BOARD OF DIRECTORS
HAJI ABDUL GHANI
Chairman
MR. SHUNAID QURESHI
Chief Executive
MR. MUHAMMAD IQBAL USMAN
MR. TARIQ USMAN BHATTI
MR. MUHAMMAD AYOUB
MR. KHALID USMAN BHATTI
MR. ABDUL SATTAR RAJA
COMPANY SECRETARY
MR. MUHAMMAD SULEMAN KANJIANI
AUDITORS
HAROON ZAKARIA & CO.
Chartered Accountants
LEGAL ADVISOR
MR. MUHAMMAD MAZHAR ALl
Advocate
REGISTERED OFFICE
4th Floor, P.N.S.C. Building,
Moulvi Tamizuddin Khan Road,
Karachi.
Tel    : 5611895-96 & 5611724
Fax : (92-21) 5610778
MILL
Mirwah Gorchani,
Distt. Mirpurkhas.
NOTICE OF THE SEVENTH ANNUAL GENERAL MEETING
NOTICE is hereby given that the Seventh Annual General Meeting will be held on Tuesday, the 3rd
February 1998 at 1500 hours at Raffia Choudri Memorial Centre, Ground Floor, Sidco Avenue Centre,
Karachi to transact the following business:
1. to confirm the minutes of the last Annual General Meeting, held on 22nd March, 1997.
2. to receive and adopt the Audited Accounts for the year ended 30th September, 1997 together
with the Directors' and Auditors' Reports thereon.
3. to appoint Auditors of the Company for the year 1997-98 and to fix their remuneration. The
retiring Auditors Messrs. Haroon Zakaria & Co., Chartered Accountants being eligible, have
offered themselves for re-appointment.
4. to transact any other matter with the permission of the Chair.
NOTE:
1. The Share Transfer Books of the Company will remain closed and no transfer of shares will be
accepted for registration from 25th January, 1998 to 3rd February, 1998 (both days inclusive).
2. A Member entitled to attend and vote at the General Meeting is entitled to appoint a proxy to
attend and vote on his behalf. Proxies in order to be valid must be received at the Registered
Office of the Company not less than 48 hours before the time of the Meeting. A proxy must be
a member of the Company.
3. Share holders are advised to notify the Company of any change in their address immediately to
ensure prompt delivery of mails.
DIRECTORS' REPORT
Dear Share Holders,
We feel pleasure in placing before you the annual report and audited accounts for the year ended
September 30, 1997.
During the year under review your company has earned pre-tax profit of Rs. 41,145,768
(1996: Rs: 49,794,411). The appropriation of available profit is recommended as under:
1997 1996
Net Profit before taxation: Rs. 41,145,768 Rs. 49,794,411
Provision for taxation: Rs. 22,830,790 Rs. 3,164,336
----------- -----------
Profit after taxation Rs. 18,314,978 Rs. 46,630,075
Un-appropriated profit brought forward Rs. 13,081,526 Rs. 1,451,451
----------- -----------
Profit available for appropriation Rs. 31,396,504 Rs. 48,081,526
----------- -----------
Appropriations:
Transfer to General Reserve Rs. 30,000,000 Rs. 35,000,000
----------- -----------
Un-appropriated profit carried forward .Rs. 1,396,504 Rs. 13,081,526
========== ==========
OPERATING RESULTS
During the crushing season 1996-97 your Company managed to crush 384,875 M/Tons of sugar-
cane whereas last year the total crushing was 401,058 M/Tons, however due to higher recovery i.¢.
10.70~/~ (1996: 10.00~/~) the production has increased from 39~977 M/Tons to 41,284 M/Tons.
Comparative figures of crushing and production are given below:
1996-97 1995-96
Season Started on 08-11-96 16-10-95
Season Closed on 31-03-97 14-03-96
Days worked 144 151
Cane Crushed (Tons) 384,875 401,058
Sugar Recovery (%) 10.70 10.00
Sugar Production (Tons) 41,284 39,977
FUTURE OUT LOOK
Your Mill has started crushing season 1997-98 on November 6, 1997 and the crushing / production
figures upto 6th January 1998 are given below:
Cane Crushed (Tons) 225,431
Sugar Recovery (%) 9.78
Sugar Production (Tons) 21,358
As reported in last year balance sheet Government has further increased the cane price from Rs. 27/
Md to Rs. 36/Md and also increased the quality premium rate from paisas 27 to paisas 32 per 0.1
recovery over and above 8.7~)/o, but unfortunately the above increase did not satisfy cane growers and
they are still demanding higher price for their crop. The situation has further aggravated due to start of
commercial production of new sugar mills in our district which increased crushing capacity of mills in
our district from 9000 to 17000 M/Tons per clay whereas area under cultivation has hardly increased
by 10~)/0 consequently the available cane in the area is only 40% of the crushing capacity. Not only this
but sale of sugar has also become a problem because of the estimated excess production in the
country. Further as you know last year Government had imported huge quantity of cheap sugar which
is still lying in Sindh Province, therefore the production of sugar in Pakistan generally and in Sindh
Province specially not finding its market. The situation has deteriorated further because some sugar
mills having weak financial position and after failing to mobilize sufficient cash resources are selling
their sugar at throw-away prices. As a result the selling price of sugar has gone much below the cost
price. But the management of your mill with the help of Almighty Allah hopes to save your mill from
financial hardships.
PATTERN OF SHARE HOLDING
The pattern of share Holding is provided on page No. 6.
AUDITORS:
Messers, Haroon Zakaria & Co. Chartered Accountant retiring auditors of the Company offer them-
selves for re-appointment for the year 1997-98.
At the end the management pay thanks to all workers and non-management staff, banks and financial
institutions for their cooperation.
PATTERN OF SHARE HOLDING
AS AT SEPTEMBER 30, 1997
Number of       Share Holdings Total Shares
Share-holders From         To Held
454 1 -- 100 45400
10256 101 -- 500 5013900
66 501 -- 1000 64500
58 1001 -- 5000 148000
10 5001 -- 10000 81500
10 10001 -- 15000 132400
9 15001 -- 20000 170900
3 20001 -- 25000 75000
2 25001 -- 30000 60000
2 30001 -- 35000 63800
6 35001 -- 40000 234400
3 40001 -- 45000 128400
3 45001 -- 50000 148400
1 60001 -- 65000 64500
2 65001 -- 70000 134100
1 90001 -- 95000 90500
3 95001 -- 100000 300000
1 100001 -- 105000 101200
1 105001 -- 110000 107500
1 110001 -- 115000 114000
1 115001 -- 120000 116000
1 125001 -- 130000 129200
1 555001 -- 560000 556182
1 1040001 -- 1045000 1041750
2 1395001 -- 1400000 2799336
1 2545001 -- 2550000 2546232
1 2895001 -- 2900000 2895200
---------- ----------
10900 17362300
========= =========
Categories of Shareholders Number Shares Held Percentage
Individuals 10888 14197700 81.77
Insurance Company 1 1500 0.01
Joint Stock Companies 3 33500 0.19
Financial Institutions 5 2977100 17.15
Modaraba Companies 2 52500 0.30
Charitable 1 100000 0.58
---------- ---------- ----------
10900 17362300 100
========= ========= =========
AUDITORS' REPORT
We have audited the annexed Balance Sheet of AL-ABBAS SUGAR MILLS LIMITED as at Septem-
ber 30, 1997 and related Profit and Loss Account and Cash Flow Statement, 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 purpose of our
audit and, after due verification thereof, we report that:
in our opinion, proper books of account have been kept by the company as required by the
Co .mpanies Ordinance, 1984;
in our opinion:
the balance sheet and profit & loss account together with the notes thereof 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 purpose of the Company's business;
and
(iii) the business conducted, investment 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 the explanations given to us,
the .balance sheet, profit & loss account and 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 September 30, 1997 and of the Profit and the cash flow statement for the year then
ended; and
(d) in our opinion no Zakat was deductible at source under the Zakat an Ushr Ordinance, 1980.
Karachi: 8th January, 1998 HAROON ZAKARIA & COMPANY
CHARTERED ACCOUNTANTS
BALANCE SHEET AS AT 30TH  SEPTEMBER, 1997
1997 1996
Notes Rupees Rupees
SHARES CAPITAL & RESERVES
AUTHORISED CAPITAL
17,500,000 Ordinary Shares 175,000,000 175,000,000
of Rs. 10/- each ========== ==========
ISSUED SUBSCRIBED AND PAID 3 173,623,000 173,623,000
UP CAPITAL
GENERAL RESERVE 4 130,000,000 100,000,000
UN-APPROPRIATED PROFIT 1,396,504 13,081,526
---------- ----------
305,019,504 286,704,526
REDEEMABLE CAPITAL 5 186,106,772 247,095,702
DEFERRED LIABILITIES 6 39,425,695 5,175,986
CURRENT LIABILITIES
Current Portion of Redeemable Capital 7 60,988,931 55,174,212
Short Term Running Finance 8 43,600,000 3,400,000
Creditors, Accrued & Other Liabilities 9 99,360,140 74,661,000
Provision for Taxation 293,756 6,258,025
---------- ----------
204,242,827 139,493,237
CONTINGENCIES & COMMITMENTS 10 -- --
---------- ----------
734,794,798 678,469,451
========== ==========
The annexed notes form an integral part of these accounts.
TANGIBLE FIXED ASSETS
Operating Fixed Assets 11 547,094,600 562,183,521
Capital Work-in-Progress 12 5,675,485 3,441,106
---------- ----------
552,770,085 565,624,627
LONG TERM LOANS & ADVANCES 13 1,673,192 1,499,297
LONG TERM DEPOSITS &
DEFERRED COST 14 2,532,966 3,535,022
CURRENT ASSETS
Stores and Spares 15 50,951,183 55,851,307
Stock-in-Trade 16 100,399,445 25,760.87
Trade Debts (Unsecured Considered Good) 1,032,134 8,821,723.00
Loans and Advances 17 7,404,968 7,861,387.00
Trade Deposits and Short Term Pre-payments 18 3,854,224 1,629,647
Other' Receivables 7,601,316 13,936
Cash and Bank Balances 19 6,575,285 7,871,636
---------- ----------
177,818,555 107,810,505
---------- ----------
734,794,798 678,469,451
=========== ===========
PROFIT & LOSS ACCOUNT
FOR THE YEAR ENDED SEPTEMBER 30, 1997
1997 1996
Notes Rupees Rupees
SALES 20 704,092,205 560,482,520
COST OF GOODS SOLD 21 605,862,434 449,483,836
---------- ----------
GROSS PROFIT 98,229,771 110,998,684
OPERATING EXPENSES
Administrative 22 10,204,545 8,928,741
Selling & Distribution 23 1,522,961 786,962
---------- ----------
11,727,506 9,715,703
---------- ----------
OPERATING PROFIT 86,502,265 101,282,981
Other Income 24 402,826 890,171
---------- ----------
86,905,091 102,173,152
FINANCIAL CHARGES 25 42,690,332 48,854,559
Other Charges 26 3,068,991 3,524,182
---------- ----------
45,759,323 52,378,741
---------- ----------
PROFIT BEFORE TAXATION 41,145,768 49,794,411
PROVISION FOR TAXATION 27 22,830,790 3,164,336
---------- ----------
PROFIT AFTER TAXATION 18,314,978 46,630,075
Unappropriated Profit brought forward 13,081,526 1,451,451
---------- ----------
PROFIT AVAILABLE FOR APPROPRIATION 31,396,504 48,081,526
Appropriations
Transfer to General Reserve 30,000,000 35,000,000
---------- ----------
1,396,504 13,081,526
========== ==========
The Annexed notes form an integral part of these accounts.
CASH FLOW STATEMENT
FOR THE YEAR ENDED SEPTEMBER 30, 1997
1997 1996
Rupees Rupees
A. CASH FROM OPERATING ACTIVITIES
Profit before taxation 41,145,768 49,794,411
Adjustment for depreciation 27,613,821 29,006,672
Provision for gratuity 2,393,889 2,245,260
Payment of gratuity (904,686) (946,236)
Financial charges 42,690,332 48,854,559
Gain on disposal of fixed assets (402,826) (863,547)
Deferred cost amortized 903,424 903,424
---------- ----------
Operating profit before working 113,439,722 128,994,543
capital changes ---------- ----------
Changes in working capital (Increase)/
decrease in current assets
Stores and spares 4,900,124 259,577
Stock in trade (74,638,576) (18,241,240)
Trade debts 7,789,589 (650,830)
Loans and advances (976,569) 933,366
Deposits and prepayments (2,224,577) 286,078.
Other receivables 13,936 115,184
Increase in current liabilities
Creditors, accrued and other liabilities
including short term advances 28,209,753 3,745,619
---------- ----------
(36,926,320) (13,552,246)
---------- ----------
Cash generated from operation 76,513,402 115,442,297
Financial charges paid (46,200,945) (55,949, 980)
Tax Paid (2,202,881) (3,965,447)
---------- ----------
(48,403,826) (59,915,427)
---------- ----------
Net, cash from operating activities 28,109,576 55,526,870
========== ==========
B. CASH FROM INVESTING ACTIVITIES
Fixed Capital expenditure (14,958,453) (9,740,431)
Proceeds from disposal of fixed Assets 602,000 1,420,501
Long term loans & advances (173,895) (39,610)
Long term deposits and deferred cost 98,632 366,032
---------- ----------
Net cash used in investing activities (14,431,716) (7,993,508)
========== ==========
C. CASH FROM FINANCING ACTIVITIES
Redemption of redeemable capital (55,174,211) (49,929,443)
Repayment of long term loans -- --
Decrease)/Increase in short term
borrowings 40,200,000 3,400,000
---------- ----------
Net cash from finance activities (14,974,211) (46,529,443)
========== ==========
Net (Decrease)/Increase in cash and
cash equivalents (A+B+C) (1,296,351) 1,003,919
Cash and cash equivalents at beginning of
the year 7,871,636 6,867,717
---------- ----------
Cash and cash equivalents at end of the year 65,757,285 7,871,636
========== ==========
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1997
1. STATUS AND NATURE OF BUSINESS
The Company was incorporated in Pakistan on 2nd May, 1991, as a Public Limited Company
and its shares are quoted on Karachi Stock Exchange. The principle activity of the Company is
manufacturing and sale of Sugar.
2. SIGNIFICANT ACCOUNTING POLICIES
2.1 Accounting Convention:
These accounts have been prepared under historical cost convention without any adjust-
ment for the effect of inflation or current values.
2.2 Taxation:
Current:
Provision for current taxation is based on taxable income at current rates of taxation after
taking into account tax credits and tax rebates available, if any.
Deferred:
Deferred taxation is provided on timing differences using the liability method, excluding
the tax effect of those timing differences which are not likely to reverse in the foreseeable
future. (See Note 27.1)
2.3 Employees' Retirement Benefits:
The Company operates unfunded gratuity scheme for all its employees eligible under the
scheme. Provision is made annually to cover the obligations.
2.4 Fixed Assets:
These are stated at cost less accumulated depreciation except free hold land and capital
work-in-progress which are stated at cost.
Depreciation is charged to income applying reducing balance method whereby the cost
of an asset is written off over its estimated useful life. Full year's depreciation is charged
on all assets, including additions during the year, except for Plant & Machinery on which
depreciation is charged on the basis of actual operating days.
No depreciation is charged on assets disposed off during the year.
Maintenance and normal repairs are charged to income, when incurred. Major renewals
and improvements are capitalized and assets so replaced, if any, are retired. Gains or
Losses on disposal of operating assets are included in current year's income or expenses
respectively.
2.5 Deferred Cost:
Deferred Cost will be written off to profit and loss account over a period of five years
beginning from the date of commencement of commercial production.
2.6 Inventories:
These are valued as follows:
Stores and Spares in Stock At average cost.
in Transit At actual cost.
Stock-in-Trade:
Sugar Lower of average
manufacturing
cost and net
realisable value.
Sugar in process At average
manufacturing
cost.
Molasses Net realisable
value.
2.7 Trade Debts:
Debts considered irrecoverable will be written off and provision will be made for debts consid-
ered doubtful, if any.
2.8 Assets subject to lease:
Lease rentals under the operating lease for the year are charged as revenue expenditures of the
company.
2.9 Revenue Recognition:
Sales are recorded on despatch of goods to customers. Income/profit on deposits is recorded
when received.
3. ISSUED, SUBSCRIBED & PAID-UP CAPITAL
1997 1996
17,362,300 (1996-17,362,300)
Ordinary Shares of Rs. 10/- each
fully paid up in cash. 173,623,000 173,623,000
========== ==========
The Financial Institutions have option to
acquire Shares as stated in note No. 5
4. GENERAL RESERVE
Balance from previous balance sheet 100,000,000 65,000,000
Transfer from Profit & Loss Account 30,000,000 35,000,000
---------- ----------
130,000,000 100,000,000
========== ==========
5. REDEEMABLE CAPITAL - SECURED
5.1 Long Term Finance Certificates (LT-TFCs) 66,584,692 86,296,190
5.2 Long Term Finance Utilized Under
Mark-up arrangements 119,522,080 160,799,512
---------- ----------
186,106,772 247,095,702
========== ==========
5.1 Long Term Finance Certificates (LT-TFCs)
LT-TFCs - Local a)
Currency 6,237,496 7,441,981
LT-TFCs - Foreign b)
Currency 80,058,695 95,518,288
---------- ----------
86,296,191 102,960,269
Current Portion shown under
Current Liabilities 19,711,499 16,664,079
---------- ----------
66,584,692 86,296,190
a) The Company arranged financing against issue of LT-TFCs with Bankers Equity Limited
for purchase of machinery not eligible under LMM financing. The sale price of such
machinery is Rs.9,700,000/- whereas the company agreed to buy the same machinery
at the purchase price of Rs. 18,322,574/-. The above purchase price will be reduced by
Rs.1,116,164/, if all LT-TFCs are redeemed on due dates.
In the event of the rate of return falling below the agreed rate of return and non-payment
of purchase price on due dates Bankers Equity Limited, shall have the option to convert
20% of the outstanding LT-TFCs into Ordinary Shares of the Company.
Repayment
The LT-TFCs are redeemed in 14 half yearly equal installments commenced from 15th
June, 1994.
Security
The LT-TFCs are secured by registered mortgage of land, building, plant and machinery
which will rank pari-passu with charge created under LMM financing.
b) Bankers Equity Limited Syndicate has provided financing against LT-TFCs of the value of
Rs. 124,500,000/- to the Company (which is sale price) for the purchase of Imported
Machinery. The purchase price of the LT-TFCs is Rs. 235,171,179/-. However, if pur-
chase price is paid within due dates a rebate of Rs. 14,326,027/will be available to the
Company. In case the LT-TFCs are not redeemed according to the repayment schedule,
the BEL shall have the option to convert 20% of the outstanding LT-TFCs into ordinary
shares of the Company.
Repayment
The LT-TFCs are redeemed in 14 half yearly equal installments commenced from 15th
June, 1994.
Security
The LT-TFCs are secured by way of registered mortgage/charge over all its assets mov-
able as well as immovable including book debts and the INVESTMENT PROPERTY to
secure payment of PURCHASE PRICE and redemption of the LT-TFCs and all other
dues payable thereunder.
1997 1996
Rupees Rupees
5.2 Long Term Financing under
Mark-up arrangement 160,799,512 199,309,645
Current Portion shown under
Current Liabilities 41,277,432 38,510,133
---------- ----------
119,522,080 160,799,512
========== ==========
The Company entered into an agreement dated 19th June, 1991 with Bankers Equity
Limited for procurement of Locally Manufactured Machinery under concessionary credit
for Locally Manufactured Machinery, for Rs. 279,921,000/- being the sale price of ma-
chinery. The sale price was reduced to Rs. 279,800,000/- by supplementary agreement
with Bankers Equity Limited. The price at which the company agreed to buy such ma-
chinery from BEL is Rs. 360,215,990/- which is calculated at a 7% mark-up. This will
increase upto 21% in case of default in repayment.
Repayment
The above financing is repayable in 28 equal quarterly installments, commenced from
15th June, 1994.
Security
The above financing is secured by:
-- Mortgage of all immovable properties of the company.
-- Floating charge on all properties of the company both present and future.
6. DEFERRED LIABILITIES
Taxation 32,760,506 --
Gratuity 6,665,189 5,175,986
--------- ---------
39,425,695 5,175,986
========== ==========
7. CURRENT PORTION OF REDEEMABLE CAPITAL
-- LT-TFCs 19,711,499 16,664,079
-- LT-Financing under Mark-up arrangement 41,277,432 38,510,133
--------- ---------
60,988,931 55,174,212
========== ==========
8. SHORT TERM RUNNING FINANCE- SECURED
(Utilized under Mark-up arrangement)
From Commercial Bank 43,600,000 3,400,000
========== ==========
8.1 The above financing was secured against Hypothecation of Stock-in-Trade and Personal
Guarantees of Directors.
8.2 Mark-up:
The rate of Mark-up is 57 paisas (48 Paisas: 1996) Per 1000 rupees per day.
8.3 Extent of Facility 75,000,000 75,000,000
========== ==========
9. CREDITORS, ACCRUED AND
OTHER LIABILITIES
Creditors 45,673,042 24,821,844
Accrued Liabilities 41,005,634 32,792,632
Mark-up/Charges payable on Secured
Redeemable Capital 10,718,712 12,066,259
Mark-up payable on Secured Running Finance 745,278 2,911,344
Advances from Customers 155,603 733,487
Deposits and Retentions 708,482 1,114,687
Others 350,389 220,747
---------- ----------
99,360,140 74,661,000
========== ==========
10. CONTINGENCIES AND COMMITMENTS
10.1 Contingencies:
To the extent of Rs.70.000 million in respect of guarantee given by the Company to
Bank against loan given by them to Cane Growers (1996: 70.000 million)
10.2 Commitments:
a) The rentals under lease agreement in respect of vehicles and equipments amounted to
Rs.1,476,624/- payable in the year 1997-98.
b) Commitment in respect of Letter of Credit for import of Stores & Spares : Nil
(1996: 3.00 million)
c) Committed Capital Expenditure for Civil Works is Rs. 16.00 Million.
11. SCHEDULE OF OPERATING FIXED ASSETS WRITTEN
        C O S T D E P R E C I A T I O N DOWN
PARTICULARS AS ON ADDITION/ AS AT RATE AS AT  ADDITION/ FOR THE AS AT  VALUE AS AT
01-10-1996 (DELETION) 30-9-1997 % 01-10-1996 (DELETION) YEAR 30-9-1997 30-9-1997
LAND 8,135,188 -- 8,135,188 -- -- -- -- -- 8,135,188
BUILDING:
Main Factory Building 67,651,303 460,315 68,111,618 10 15,977,497 -- 5,213,414 21,190,893 46,920,725
Non Factory Building 13,521,015 2,201,255 15,722,270 10 2,733,191 -- 1,298,908 4,032,099 11,690,171
PLANT & MACHINERY 544,137,981 3,821,667 547,959,648 10 58,801,854 -- 19,297,925 78,108,779 469,850,869
TOOLS & TACKLE 781,986 263,960 1,045,946 20 189,905 -- 171,208 361,113 684,833
FURNITURE & FIXTURES 1,523,656 76,820 1,600,476 10 495,938 -- 110,454 606,392 994,084
OFFICE EQUIPMENTS 3,041,178 3,301,822 6,343,000 10 880,838 -- 546,216 1,427,054 4,915,946
MOTOR VEHICLES 3,749,853 2,598,235 5,740,262 20 1,270,434 (408,652) 975,696 1,837,478 3,902,784
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Rupees- 1997 642,542,160 12,724,074 654,658,408 80,358,639 (408,652) 27,613,821 ########## 547,094,600
Rupees- 1996 (607,826)
========== ========== ========== ========== ========== ========== ========== ========== ==========
621,807,126 22,548,034 642,542,160 52,608,013 (1,256,046) 29,006,672 80,358,639 562,183,521
(1,813,000)
========== ========== ========== ========== ========== ========== ========== ========== ==========
11.2 Detail of disposal of operating assets
Accumulated Written Sale  Gain Mode of  Particular of 
Description cost Depreciation  Down Value Proceeds  sale Buyers
Motor Vehicle 576,026 387,273 188,753 570,000 381,247 Negotiation M/s. Fatima Motors
Karachi
Motor Bike 31,800 21,379 10,421 32,000 21,579 Insurance M/s. EFU General
Insurance Ltd
Kashif Centre
---------- ---------- ---------- ---------- ---------- Karachi
607,826 408,652 199,174 602,000 402,826
========== ========== ========== ========== ==========
1997 1996
Rupees Rupees
12. CAPITAL WORK IN PROGRESS
Machinery - Local 24,487 24,487
Civil Work 5,650,998 3,416,619
---------- ----------
5,675,485 3,441,106
13. LONG TERM LOAN ADVANCES-
UNSECURED CONSIDERED GOOD
Loan to Employees 13.1 783,792 576,717
Loan to Executives 13.2 1,250,000 1,464,000
---------- ----------
Long Term Loan & Advances 2,033,792 2,040,717
Less: Re-payable within the following 1'2 months (360,600) (541,420)
---------- ----------
1,673,192 1,499,297
========== ==========
13.1 Recoverable within 3 years. 783,792 576,717
========== ==========
13.2 Recoverable within 3 years 1,088,000 1,152,000
Recoverable after 3 years 162,000 312,000
---------- ----------
1,250,000 1,464,000
========== ==========
14. LONG TERM DEPOSITS & DEFERRED COST
Long Term Deposits 1,629,542 1,728,174
Deferred Cost 1,806,848 2,710,272
Less: Amortization during the year (903,424) (903,424)
---------- ----------
903,424 1,806,848
---------- ----------
2,532,966 3,535,022
========== ==========
15. STORES AND SPARES
Stores 12,988,294 15,556,280
Spares 37,838,869 36,225,085
Loose Tools 124,020 911,203
Stores & Spares in-transit -- 3,158,739
---------- ----------
50,951,183 55,851,307
STOCK IN TRADE
Sugar-in-Process 619,500 1,116,059
Finished Goods
-- Sugar 99,779,945 21,840,063
-- Molasses -- 2,804,747
---------- ----------
99,779,945 24,644,810
---------- ----------
100,399,445 25,760,869
========== ==========
17. LOANS AND ADVANCES - UNSECURED -CONSIDERED GOOD.
Loans
To Staff 1,437,711 764,244
Executives 17.1 262, 895 384,000
1,700,606 1,148,244
Advances
To Employees 624,007 663,197
Suppliers 3,120,076 3,186,171
Contractors I42,978 915,900
Advance Income Tax 293,756 1,726,744
Others 826,688 51,930
Against Rent 47,347 14,680
Expenses 679,510 154,521
---------- ----------
5,704,362 6,713,143
---------- ----------
7,404,968 7,861,387
========== ==========
17.1 The maximum aggregate amount due from
Executives at the end of any month during
the year was Rs. 2,010,667 (1996: 1,.926,082)
1997 1996
Rupees Rupees
18. TRADE DEPOSITS AND SHORT TERM PRE-PAYMENTS
Trade Deposits 956,232 2,139,455
Pre-payments 673,415 1,714,769
---------- ----------
3,854,224 1,629,647
========== ==========
19. CASH AND BANK BALANCE
Cash in hand 2,282,038 1,206,815
Balance with Bank
Current Accounts 3,293,247 1,364,821
Deposit Accounts 1,000,000 5,300,000
---------- ----------
4,293,247 6,664,821
---------- ----------
6,575,285 7,871,636
========== ==========
20. SALES
Local 704,092,205 561,626,140
Less: Brokerage & Commission -- 1,143,620
---------- ----------
704,092,205 560,482,520
========== ==========
1997 1996
Rupees Rupees
21. COST OF GOODS SOLD
Sugar Cane Crushed (including
Procurement & Development expenses) 510,238,445 292,728,409
Stores and Spares Consumed 15,141,093 18,217,603
Salaries, Wages & Other Benefits 37,989,868 34,903,143
Water, Fuel and Power 7,123,734 3,766,188
Repairs and Maintenance 2,388,977 1,136,328
Packing Material 8,686,814 8,025,335
Other Manufacturing Expenses 21.10 8,427,925 10,580,581
Lease Rental 4,060,716 5,493,794
Excise Duty 77,148,540 81,295,934
Depreciation 25,981,455 28,032,586
---------- ----------
697,187,567 484,179,901
Sugar-in-Process - Opening 1,116,059 --
Closing (619,500) (1,116,059)
---------- ----------
496,559 (1,116,059)
---------- ----------
697,684,126 483,063,842
Less: Sale of Molasses (16,686,557) (16,934,303)
---------- ----------
Cost of goods manufactured 680,997,569 466,129,539
Finished goods Opening Sugar 21,840,063 7,509,751
Opening Molasses 2,804,747 9,878
Closing Sugar (99,779,945) (21,840,063)
Closing Molasses -- (2,804,747)
---------- ----------
(75,135,135) (17,125,181)
---------- ----------
COST OF GOODS SOLD 605,862,434 449,004,358
========== ==========
21.1 OTHER MANUFACTURING EXPENSES
Security Services 2,028,194 1,890,079
Printing & Stationery 468,832 590,478
Vehicle Running Expenses 1,837,835 1,667,965
Insurance Expenses 1,389,084 2,666,364
Wastage Removal Expenses 646,800 1,051,850
Conveyance & Travelling 379,103 601,052
Rent, Rates & Taxes 175,000 119,800
Tel, Telex & Fax Charges 732,455 1,087,262
Fee & Subscription 108,527 42,625
Newspaper & Periodicals 57,378 140,404
Entertainment 369,722 511,425
Charity & Donation 21.1 (a) 110,328 89,970
Legal & Professional 109,250 112,040
Misc. Expenses 15,417 9,267
---------- ----------
8,427,925 10,580,581
========== ==========
21. l(a) CHARITY AND DONATION
None of the directors or their spouses have any interest in the donees' Fund.
22. ADMINISTRATIVE EXPENSES
Salaries, Allowances and Other Benefits 3,984,033 3,805,023
Rent, Rates and Taxes 964,247 876,588
Postage, Telegrams and Telephones 1,000,758 867,605
Conveyance and Travelling 235,677 294,798
Printing & Stationery 192,734 210,266
Entertainment 160,964 167,448
Vehicle Expenses 762,863 818,219
Repair and Maintenance 158,512 176,510
Insurance 40,531 3,171
Fee & Subscription 192,742 176,386
Legal and Professional charges 220,150 347,800
Auditors' Remuneration 22.10 45,400 36,500
Charity and Donation 22.20 48,250 39,475
Annual General Meeting Expenses 367,670 391,841
News Paper and Periodicals 36,482 87,390
Utilities 72,747 74,838
Depreciation 1,632,366 974,086
Miscellaneous Expenses 88,419 60,275
---------- ----------
10,204,545 9,408,219
========== ==========
1997 1996
Rupees Rupees
22.1 Auditors' Remuneration:
Audit Fee 42,500 35,000
Out of Pocket Expenses 2,900 1,500
---------- ----------
45,400 36,500
========== ==========
22.2. Charity and Donation:
None of the directors or their spouses have any interest in the donees' Fund.
23. SELLING & DISTRIBUTION EXPENSES
Sugar Bags Handling Expenses 1,522,961 786,962
========== ==========
24. OTHER INCOME
Profit on disposal of Fixed Assets 402,826 863,547
Other Income -- 26,624
---------- ----------
402,826 890,171
========== ==========
25. FINANCIAL CHARGES
Mark-up on Redeemable Capital 29,325,930 34,712,570
Mark-up on Running Finance 10,866,914 10,010,010
Excise Duty on Bank Borrowing 1,524,931 3,418,521
Interest on W.P.P.E 254,609 162,082
Bank Charges 717,948 551,376
---------- ----------
42,690,332 48,854,559
26. OTHER CHARGES ========== ==========
Workers' Participation Fund 2,165,567 2,620,758
Amortization of Deferred Cost 903,424 903,424
---------- ----------
3,068,991 3,524,182
========== ==========
27. TAXATION
Turnover Tax - Prior Year (9,929,716) 3,164,336
Deferred:
Current 6,203,800 --
Prior Year 26,556,706 --
---------- ----------
22,830,790 3,164,336
========== ==========
27.1 Provision for Turnover Tax is reversed due to decision of Honourable Supreme Court in
favour of Company
28. CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES REMUNERATION
Particulars     Chief Executive      Directors Executives   Total
    1997 1996 1997 1996 1997 1996 1997 1996
Meeting fees  -- -- -- -- -- -- -- --
Remuneration. -- -- -- -- 3,301,968 2,955,275 3,301,968 2,955,275
Perquisites -- -- -- -- 1,650,984 1,477,638 1,650,984 1,477,638
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total
-- -- -- -- 4,952,952 4,432,913 4,952,952 4,432,913
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
No. of Persons  -- -- -- -- 14 12 14 12
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
28.1 Chief Executive is provided free use of Company's maintained Car and Telephone for the
business and personal use.
28.1 Some of the executives of the company are also provided company's maintained Cars for
Business and personal use.
29. CAPACITY AND PRODUCTION
PRODUCTION % OF CAPACITY
YEAR M.TONS DAYS M.TONS DAYS ATTAINED
1997 57,600 160 41,284 144 71.67
1996 57,600 160 39,977 151 69.40
30. GENERAL
Previous year's figures have been re-arranged/re-grouped wherever necessary to facilitate
comparison.
Figures have been rounded off to the nearest rupee.
Google
 
Web Paksearch.com




Home | About Us | Contact | Information Resources