| ALLAWASAYA TEXTILE & FINISHING MILLS LIMITED |
|
|
|
|
|
|
|
|
|
| ANNUAL
REPORT 1997 |
|
|
|
| CONTENTS |
|
| BOARD
OF DIRECTORS |
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
| DIRECTORS'
REPORT |
|
| PATTERN
OF SHAREHOLDING |
|
| PERFORMANCE
OF PAST FIVE YEARS AT A GLANCE |
|
| COMPOSITION
OF TOTAL REVENUE & EXPENSES |
|
| FINANCIAL
RATIOS |
|
| PROFIT
AND LOSS ACCOUNT COMPARISON |
|
| AS
PERCENTAGE OF SALES |
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
| BALANCE
SHEET AS AT 30 SEPTEMBER, 1997 |
|
| PROFIT
AND LOSS ACCOUNT |
|
| CASH
FLOW STATEMENT |
|
| NOTES
TO THE ACCOUNTS |
|
|
|
|
|
|
| BOARD
OF DIRECTORS |
|
Mian Mohammad Jamil, |
|
|
|
|
- Chairman |
|
|
|
|
|
|
|
|
Mian Maqbool Ahmad Sheikh |
|
|
|
|
- Chief Executive |
|
|
|
|
Mrs. Nusrat Jamil |
|
|
|
|
Mian Sarfraz Ahmad Sheikh |
|
|
|
Mian Tanvir Ahmad Sheikh |
|
|
|
Mian Tauqir Ahmad Sheikh |
|
|
|
|
|
Mian Farooq Ahmad Sheikh |
|
|
|
|
|
Miss. Zahra Fatima Jamil
Mughal |
|
|
| SECRETARY |
|
Muhammad Habeeb |
|
|
|
|
|
|
| AUDITORS |
|
Hameed Chaudhri & Co; |
|
|
|
|
Chartered Accountants |
|
|
|
|
H.M. House, 7-Bank
Square, |
|
|
|
|
Lahore. |
|
|
|
| BANKERS |
|
|
M/s Habib Bank Limited |
|
|
|
|
M/s Bank A1-Habib Limited |
|
|
|
|
M/s Industrial
Development Bank of Pakistan |
|
|
|
|
| REGISTERED
OFFICE & MILLS |
Mumtazabad Industrial
Area, |
|
|
|
|
Vehari Road, Multan. |
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|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
|
| Notice
is hereby given that the 40th Annual General Meeting of the Company will be
held on |
|
| Wednesday
the 25th day of March, 1998 at 9.00 A.M. at the Registered Office of the
Company, Vehari |
|
| Road,
Multan to transact the following business: |
|
|
| 1.
To confirm the Minutes of the 39th Annual General Meeting held on 31st day of
March, 1997. |
|
|
|
|
| 2.
To receive, consider and approve the Directors' Report, Auditors' Report and
audited |
|
| accounts
of the Company for the year ended 30~ September, 1997. |
|
|
| 3.
To appoint Auditors for the year 1997-98 and to fix their remuneration. |
|
|
| 4.
To transact any other business with the permission of the Chair. |
|
|
| NOTES: |
|
|
| 1.
The Share Transfer Books of the Company will remain closed from 18.03.1998 to |
|
| 25.03.1998
(both dates inclusive). |
|
|
|
|
| 2.
A Member entitled to attend and vote at the meeting is entitled to appoint a
Proxy |
|
| to
attend, speak and vote instead of him / her. A proxy must be a member.
Proxies |
|
| in
order to be valid must be received at the Company's Registered Office not
less than |
|
| 48
hours before the time of meeting. |
|
|
|
|
| 3.
The Share holders are requested to communicate to the Company immediately,
any |
|
| change
in their addresses. |
|
|
|
| DIRECTORS'
REPORT |
|
|
| In
the name of Allah the Beneficent the Merciful |
|
|
| Dear
Shareholders |
|
|
| Your
Directors are pleased to present before you their 40th Annual Report on the
affairs |
|
| of
your Company and its Financial results for the year ending 30.09. 1997. |
|
|
| FINANCIAL
RESULTS |
|
|
| The
1st half of the Financial Year of your Company was quite good. The prices of
yarn in the |
|
| International
as well as Local Market remained stable. The prices of cotton also did not
increase in the |
|
| hope
of having a good cotton crop to meet the target of 9.00 Million Bales.
However subsequent to |
|
| 31.03.1997
the prices of yarn started dwindling while the prices of cotton rose as the
total size of crop |
|
| had
fallen short of the target. These factors caused decline in gross margin of
your Company resulting |
|
| into
its lesser net profit before tax during the year under report. |
|
|
| The
Supreme Court of Pakistan decided all the Appeals filed in respect of minimum
tax under |
|
| section
80oD against the Appellants including your Company. Therefore the provision
for tax under section |
|
| 80oD
for the prior year as well as the year under report was made in the accounts
which converted the |
|
| pre-tax
profit of the Company into after tax loss for the year. |
|
|
| ACCOUNTS: |
|
|
| The
position of the Accounts of the Company for the year under report is
summarized as under: |
|
|
|
|
Rupees |
|
|
| Sales
(Net) |
|
|
585,536,032 |
|
| Cost
of Sales |
|
|
531,986,406 |
|
| Gross
Profit |
|
|
53,549,626 |
|
| Administrative
and Selling Expenses |
|
(20,017,492) |
|
| Operating
Profit |
|
|
33,532,134 |
|
| Other
Income |
|
|
702,524 |
|
| Financial
and other miscellaneous charges |
|
(30,249,853) |
|
| Additional
Surcharge on electricity (prior year) |
|
(10,508,030) |
|
| Worker's
(Profit) Participation Fund |
|
(214,000) |
|
| Worker's
Welfare Fund |
|
(193,650) |
|
| Profit
for the year (Before Tax) |
|
3,577,155 |
|
| Provision
for Taxation |
|
(6,552,183) |
|
| Profit
for the year (After Tax) |
|
(2,975,028) |
|
| Unappropriated
Profit (Brought Forward) |
|
25,904,770 |
|
| Unappropriated
Profit (Carried to Balance Sheet) |
|
22,929,742 |
|
|
| Various
financial charts giving the Company's performance for the last five years in |
|
| comparative
form are also appended as Annexures ], II, Ill and IV to this report. |
|
|
| OPERATIONS: |
|
| The
operational performance of your Mills remained satisfactory during the year.
It was |
|
| operated
for 1,086 shifts (1996: 1,031 Shifts). The overall actual production when
converted to Z0's |
|
| count
came to 8,083,818 kgs. The Plant was run at optimum level and 101.74%
efficiency of the installed |
|
| capacity
was achieved. The best possible efforts have been put in by all concerned to
achieve the optimum |
|
| operational
output of the Mills. |
|
|
| The
export performance of your Company was satisfactory. The total exports were |
|
| 2,425,740
Kgs. of cotton yarn valuing Rs. 254.983 million compared to 2,668,293 Kgs.
Valuing |
|
| Rs.251.880
Million last year which is almost 9.09 percent less in quantity and 1.26
percent higher in |
|
| value. |
|
|
| DIVIDEND |
|
| Due
to net loss after Tax for the year, your Directors have decided to pass over
the dividend |
|
| for
this year. |
|
|
| AUDITORS |
|
| Your
Company's Auditors M/s Hameed Chaudhri & Company, Chartered Accountants,
Lahore |
|
| retire
and being eligible offer themselves for re-appointment for the next year. |
|
|
| PATTERN
OF SHAREHOLDING |
|
| Pattern
of holding of the Shares by the Shareholders of the Company as on 30.09.1997
as required |
|
| under
Section 236 (2) (d) of the Companies Ordinance, 1984 is enclosed. |
|
|
| RELATIONS
WITH LABOUR AND STAFF |
|
| Your
Directors are pleased to report that relations with labour and staff of the
Company |
|
| remained
cordial throughout the year. |
|
|
| ACKNOWLEDGMENT |
|
| Your
Directors acknowledge the best cooperation as usual enjoyed by your Company |
|
| from
M/s HABIB BANK LIMITED, M/s BANK AL-HABIB LIMITED, M/s INDUSTRIAL |
|
| DEVELOPMENT
BANK OF PAKISTAN and M/S METROPOLITAN BANK LIMITED and wish to record |
|
| their
sincere appreciation for the same and hope they will continue their support
to the |
|
| Company
in future also. |
|
|
|
| PATTERN
OF HOLDING OF THE SHARES BY THE |
|
| SHAREHOLDERS
AS AT 30th SEPTEMBER, 1997 |
|
|
| Number of |
|
Shareholders |
|
Total |
|
| Shareholders |
|
From |
To |
|
Shares held |
|
|
|
|
| 113 |
|
1 |
100 |
|
6,608 |
|
| 35 |
|
101 |
500 |
|
10,149 |
|
| 7 |
|
501 |
1,000 |
|
5,550 |
|
| 24 |
|
1,001 |
5,000 |
|
64,393 |
|
| 17 |
|
5,001 |
10,000 |
|
153,241 |
|
| 8 |
|
10,001 |
15,000 |
|
104,496 |
|
| 6 |
|
15,001 |
20,000 |
|
99,271 |
|
| 2 |
|
20,001 |
25,000 |
|
45,048 |
|
| 3 |
|
25,001 |
30,000 |
|
87,307 |
|
| 2 |
|
30,001 |
35,000 |
|
64,630 |
|
| 1 |
|
35,001 |
40,000 |
|
37,209 |
|
| 1 |
|
40,001 |
45,000 |
|
43,228 |
|
| - |
|
45,001 |
50,000 |
|
0 |
|
| - |
|
50,001 |
75,000 |
|
0 |
|
| 1 |
|
75,001 |
80,000 |
|
78,870 |
|
| ---------- |
|
|
|
---------- |
|
| 220 |
|
|
|
800,000 |
|
| ========== |
|
|
|
========== |
|
|
| Categories
of |
|
|
Shares |
|
|
| Shareholders |
|
Number |
held |
Percentage |
|
|
| Individuals |
|
213 |
798,750 |
99.84 |
|
| Financial
Institutions |
|
4 |
774 |
0.I0 |
|
| Others |
|
|
|
|
| Corporate
Law Authority |
|
1 |
1 |
0.00 |
|
| Deputy
Administrator |
|
|
|
| Abandoned
Properties |
|
1 |
425 |
0.05 |
|
| Limited
Company |
|
1 |
50 |
0.01 |
|
|
|
---------- |
---------- |
---------- |
|
|
|
|
220 |
800,000 |
100.00 |
|
|
|
========== |
========== |
========== |
|
|
|
|
|
|
(ANNEXURE 1) |
|
| PERFORMANCE
OF PAST FIVE YEARS |
|
|
|
| AT
A GLANCE |
|
|
|
|
|
|
|
|
|
(RUPEE IN 000) |
|
|
| Income |
|
1997 |
1996 |
1995 |
1994 |
1993 |
|
|
|
|
|
| Net
Sales and Misc. Income |
586,238 |
568,837 |
536,840 |
408,395 |
295,838 |
|
|
|
========== |
========== |
========== |
========== |
========== |
|
| Profit
Before Tax |
|
3,577 |
10,898 |
(20,759) |
2,662 |
677 |
|
| Prior
Period Items |
|
0 |
(10,508) |
0 |
0 |
0 |
|
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
|
3,577 |
390 |
(20,759) |
2,662 |
677 |
|
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
|
|
|
|
|
|
|
| Taxation |
|
6,552 |
0 |
2,562 |
4,019 |
(1,397) |
|
| Cash
Dividend |
|
0 |
0 |
0 |
0 |
1,000 |
|
| Transferred
(From)/to Reserves |
0 |
1,552 |
0 |
0 |
0 |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
|
6,552 |
1,552 |
2,562 |
4,019 |
(397) |
|
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
|
| Carried
to Unappropriated Profit |
(2,975) |
1,942 |
(23,321) |
(1,357) |
1,074 |
|
|
|
========== |
========== |
========== |
========== |
========== |
|
| FINANCIAL
INFORMATION |
|
| TOTAL
ASSETS |
|
| Fixed
Assets (Net) |
|
84,924 |
90,247 |
96,242 |
87,939 |
93,560 |
|
| Investments |
|
- |
- |
- |
- |
- |
|
|
| Other
Assets |
|
369 |
369 |
67 |
67 |
67 |
|
| Current
Assets |
|
87,109 |
62,494 |
60,227 |
56,065 |
42,347 |
|
|
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
|
172,402 |
153,110 |
156,536 |
144,071 |
135,974 |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
|
| TOTAL
LIABILITIES |
|
| long Term Liabilities |
5,939 |
14,544 |
24,750 |
17,201 |
26,500 |
|
| Current Liabilities |
131,779 |
100,907 |
94,517 |
66,280 |
47,527 |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
|
137,718 |
115,451 |
119,267 |
83,481 |
74,027 |
|
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
|
| SHARES
HOLDERS EQUITY |
34,684 |
37,659 |
37,269 |
60,590 |
61,947 |
|
|
|
|
========== |
========== |
========== |
========== |
========== |
|
| EQUITY
PRESENTED BY:- |
|
| Share
Capital |
|
8,000 |
8,000 |
8,000 |
8,000 |
8,000 |
|
| Tax
Holiday Reserves |
2,669 |
2,669 |
2,669 |
2,669 |
2,669 |
|
| Revenue
Reserves |
|
1,085 |
1,085 |
2,638 |
2,638 |
2,638 |
|
| Unappropriated
Profit |
22,930 |
25,905 |
23,962 |
47,283 |
48,640 |
|
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
|
34,684 |
37,659 |
37,269 |
60,590 |
61,947 |
|
|
========== |
========== |
========== |
========== |
========== |
|
|
|
|
|
|
(ANNEXURE II) |
|
|
|
| COMPOSITION
OF TOTAL |
|
|
|
|
|
| REVENUE
& EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(RUPEE IN OOO) |
|
|
|
|
1997 |
|
1996 |
|
1995 |
|
1994 |
|
1993 |
|
|
|
|
Rupees |
% |
Rupees |
% |
Rupees |
% |
Rupees |
% |
Rupees |
% |
|
|
|
| TOTAL
REVENUE |
|
| SALES
- (NET) |
|
|
|
|
| Yam |
|
581,543 |
99.20 |
563,891 |
99.13 |
532,222 |
99.14 |
406,054 |
99.43 |
292,812 |
98.98 |
|
|
|
|
| Waste |
|
3,993 |
0.68 |
4,795 |
0.84 |
3,667 |
0.68 |
1,793 |
0.44 |
2,353 |
0.79 |
|
| MISC.
INCOME |
|
102 |
0.12 |
150 |
0.03 |
950 |
0.18 |
528 |
0.13 |
673 |
0.23 |
|
|
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
|
|
586,238 |
100 |
568,836 |
100 |
536,839 |
100 |
408,375 |
100 |
295,838 |
100 |
|
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
| TOTAL
EXPENSES |
|
| Raw
Material |
|
425,630 |
72.60 |
407,018 |
71.55 |
436,314 |
8,127 |
308,187 |
75.46 |
205,273 |
69.39 |
|
| Conversion
Cost |
|
100,356 |
18.15 |
112,473 |
19.77 |
84,006 |
15.65 |
70,688 |
17.3 |
66,520 |
22.49 |
|
| Operating
expenses |
|
20,542 |
3.50 |
17,438 |
3.07 |
17,726 |
3.30 |
12,048 |
2.95 |
11,285 |
3.81 |
|
| Financial
Expenses |
|
29,725 |
5.07 |
20,973 |
3.69 |
19,409 |
3.62 |
14,616 |
3.58 |
12,040 |
4.07 |
|
| W.P.P.F. |
|
214 |
0.04 |
36 |
0.01 |
- |
- |
147 |
0.03 |
43 |
0.01 |
|
| Workers
Welfare Fund |
194 |
0.03 |
- |
- |
143 |
0.03 |
66 |
0.02 |
0 |
0.00 |
|
| Prior
Period Items |
|
- |
- |
10,508 |
0.85 |
- |
- |
- |
- |
- |
- |
|
| Net
Profit Before Tax |
3,577 |
0.61 |
390 |
0.07 |
(20,759) |
(3,87) |
2,662 |
0.66 |
677 |
0.23 |
|
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
|
586,238 |
100 |
568,836 |
100 |
536,839 |
100 |
408,394 |
100 |
295,838 |
100 |
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
(ANNEXURE III) |
|
| FINANCIAL
RATIOS |
|
|
|
|
|
|
|
1997 |
1996 |
1995 |
1994 |
1993 |
|
|
|
|
|
| Cost
of Sales as % of Sales |
|
% |
90.85 |
91.35 |
97.09 |
92.89 |
92.08 |
|
| Gross
Profit as % of Sales |
|
% |
9.15 |
8.65 |
2.91 |
7.1 |
7.92 |
|
| Operating
Profit as % of Sales |
|
% |
5.73 |
5.61 |
(0.37) |
4.20 |
4.16 |
|
| Net
Profit Before Tax as % of Sales |
% |
0.61 |
0.07 |
(3.87) |
0.65 |
0.07 |
|
| Net
Profit as % of Sales |
|
% |
(0.51) |
0.07 |
(4.35) |
(0.33) |
0.70 |
|
| Stock
as % of Sales |
|
% |
8.93 |
5.53 |
7.39 |
7.42 |
7.66 |
|
| Debtors
as % of Sales |
|
% |
3.52 |
1.62 |
1.68 |
2.18 |
2.00 |
|
| Current
Ratio |
|
: |
66:34 |
62:38 |
61:39:00 |
54:46 |
53:47 |
|
| Debt
Equity Ratio |
|
: |
25:75 |
41:59 |
53:47 |
30:70 |
37:63 |
|
| Total
Debt Asset Ratio |
|
: |
44:56 |
43:57 |
37:63 |
37:63 |
35:65 |
|
| Earning
Per Share |
|
Rs. |
(3.72) |
0.48 |
(29.15) |
(1.70) |
2.59 |
|
| Break
Up Value of Share |
|
Rs. |
43.35 |
47.07 |
46.59 |
75.74 |
77.43 |
|
|
|
|
|
|
|
|
|
|
|
(ANNEXURE IV) |
|
|
| PROFIT
AND LOSS ACCOUNT COMPARISON |
|
| AS
PERCENTAGE OF SALES |
|
|
|
|
|
1997 |
1996 |
1995 |
1994 |
1993 |
|
|
|
|
|
|
|
| Net
Sales |
|
|
585,536 |
568,686 |
535,889 |
407,847 |
295,165 |
|
|
|
|
|
========== |
========== |
========== |
========== |
========== |
|
|
| In
Terms of Percentage |
|
% |
100 |
100 |
100 |
100 |
100 |
|
|
| Cost
of Sales |
|
% |
90.85 |
91.35 |
97.09 |
92.89 |
92.08 |
|
|
|
|
|
========== |
========== |
========== |
========== |
========== |
|
|
| Gross
Profit |
|
% |
9.15 |
8.65 |
2.91 |
7.11 |
7.92 |
|
|
|
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
| Administrative
& Selling |
|
|
|
|
|
| Expenses |
|
% |
3.42 |
3.04 |
3.27 |
2.91 |
3.76 |
|
|
|
|
|
|
|
|
| Financial
Expenses |
|
% |
5.08 |
3.68 |
3.62 |
3.58 |
4.08 |
|
|
| Misc.
Expenses |
|
% |
0.09 |
0.03 |
0.03 |
0.04 |
0.07 |
|
|
| W.P.P.F. |
|
% |
0.04 |
0.01 |
- |
0.04 |
0.01 |
|
|
| Workers'
Welfare Fund |
|
% |
0.03 |
- |
0.03 |
0.02 |
0.00 |
|
|
|
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
|
|
|
8.66 |
6.76 |
6.95 |
6.59 |
7.92 |
|
|
|
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
|
|
|
|
|
|
| Operating
profit |
|
% |
0.49 |
1.89 |
(4.04) |
0.52 |
0.00 |
|
|
| Other
Income |
|
% |
0.12 |
0.03 |
0.18 |
0.13 |
0.23 |
|
|
| Prior
Period items |
|
% |
0.00 |
(1.85) |
0.00 |
0.00 |
(0.08) |
|
|
|
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
| Net
Profit Before Tax |
|
% |
0.61 |
0.07 |
(3.86) |
0.65 |
0.23 |
|
|
| Taxation |
|
% |
1.12 |
0 |
0.49 |
0.98 |
(0.47) |
|
|
|
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
| Net
Profit After Tax |
|
% |
(0.51) |
0.07 |
(4.35) |
(0.33) |
0.70 |
|
|
|
|
|
========== |
========== |
========== |
========== |
========== |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of ALLAWASAYA TEXTILE & FINISHING
MILLS LIMITED as |
|
| at
30 September, 1997 and the related profit and loss account and the 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 |
|
| 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 purpose of the Company' |
|
| 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 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 30 September, 1997 and of
the loss |
|
| and
the cash flows for the year then ended; and |
|
|
|
|
| (d)
in our opinion, no Zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
|
|
|
|
|
|
|
Hameed Chaudhari &
Co. |
|
| Lahore:
28.02.1998 |
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET AS AT 30th September, 1997 |
|
|
|
