| GADOON TEXTILE MILLS LIMITED |
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| Annual
Report 1997 |
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| CONTENTS |
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| Company
Information |
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| Notice
of Meeting |
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| Highlights |
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| Directors
Report |
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| Pattern
of Shareholding |
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| Auditors
Report |
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| Balance
Sheet |
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| Profit
& Loss Account |
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| Cash
Flow Statement |
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| Notes
to the Accounts |
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| COMPANY
INFORMATION |
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|
| BOARD
OF DIRECTORS |
|
| A.
RAZZAK A. AZIZ |
(Chief Executive) |
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| M.
YUNUS A. AZIZ |
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| M.
SOHAIL M. YUNUS |
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| MUHAMMAD
ALl A. RAZZAK |
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| M.
IMRAN M. YUNUS |
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| M.
JAVED M. YUNUS |
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| ILYAS
ISMAlL MOTON |
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| COMPANY
SECRETARY |
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| A.
RAUF KHANANI |
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| REGISTERED
OFFICE |
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| APTMA
HOUSE, |
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| TEHKAL
PAYAN, JAMARUD ROAD, |
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| PESHAWAR. |
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| TELEPHONE:
841496 |
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| FAX
NO: 091-840273 |
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| TELEX
NO: 52379 SAIF PK. |
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| FACTORY |
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| GADOON
AMAZAI INDUSTRIAL ESTATE, |
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| GADOON,
DIS1-F. SWABI. |
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| KARACHI
OFFICE |
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| 6-A,
MUHAMMAD ALl HOUSING SOCIETY, |
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| ABDUL
AZIZ HAJI HASHIM TABBA STREET, |
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| KARACHI-75350. |
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| PHONES:
111-786-555 |
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| FAX
NO: 021-4534302 |
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| TELEX
NO.: 29520 LUCKY PK |
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| EMAIL:
gad-rex@cyber. net. pk |
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| AUDITORS |
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| HAMEED
CHAUDHRI & CO. |
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| CHARTERED
ACCOUNTANTS |
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| KARACHI
CHAMBERS, HASRAT MOHANI ROAD, |
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| KARACHI. |
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| PHONES:
2412754- 2411474 |
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| FAX
NO: 021-2424835 |
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| SHARES
REGISTRAR |
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| C
& K MANAGEMENT ASSOCIATES (PVT) LTD. |
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| 404,
TRADE TOWER, |
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| OPP:
HOTEL METROPOLE, |
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| ABDULLAH
HAROON ROAD, KARACHI. |
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| PHONES:
568-5930, 568-7839 |
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| FAX:
021-568-7839 |
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| NOTICE
OF MEETING |
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|
Notes: |
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| Notice
is hereby given that 10th Annual General |
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The Share Transfer Book
of the Company will re- |
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| Meeting
of the Members of GADOON TEXTILE |
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main closed from March
14, 1998 to March 21, |
|
| MILLS
LIMITED will be held on 21st March 1998 |
|
1998. (both days
inclusive) |
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| at
09.30 a.m. at the Registered office of the Com- |
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| pany
APTMA House, Tehkal Payan, Jamarud Road, |
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A member eligible to
attend and vote at this meet- |
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| Peshawar
to transact the following agenda · |
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ing may appoint another
member as his/her proxy |
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to attend and vote
instead of him/her. Proxies in |
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| -:
AGENDA :- |
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order to be effective
must be received by the Com- |
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pany at the Registered
office not less than 48 hours |
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| - To confirm the
Minutes of 9th Annual General |
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before the time for
holding the meeting. |
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| Meeting
held on January 07, 1997. |
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A Corporation which is a
member of the Company |
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| - To receive,
consider and adopt the audited Ac- |
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may by resolution of its
Board of Directors or Gov- |
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| counts
of the Company for the year ended Sep- |
|
erning Body authorize a
person to act as its repre- |
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| tember
30, 1997 together with the Auditors and |
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sentative at the meeting. |
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| Directors
Report thereon. |
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Members are requested to
kindly contact for all |
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| - To approve Cash
dividend for the year ended |
|
matters pertaining to
Shares department including |
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| September
30, 1997 as recommended by the |
|
transfer of shares,
change of address etc. to our |
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| Board. |
|
Registrar, M/s C & K
Management Associates (Pvt) |
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| - To elect 7 (seven)
directors, as fixed by the |
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Ltd. 404, Trade Tower,
Near Metropole Hotel, |
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| Board
in accordance with the provision of the |
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Abdullah Haroon Road,
Karachi. |
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| Companies
Ordinance 1984, for a period of |
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| three
years in place of the following retiring |
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All retiring directors
shall be eligible to offer them- |
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| directors: |
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selves for re-election.
Any person who seek to con- |
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| 1.
Mr. A. Razzak A. Aziz |
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test an election to the
office of director should file |
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| 2.
Mr. M. Yunus A. Aziz |
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with the Company at its
Registered Office not later |
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| 3.
Mr. M. Sohail M. Yunus |
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than 14 (fourteen) days
before the date of the |
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| 4.
Mr. Muhammad Ali A. Razzak |
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meeting a notice of
his/her intention to offer him- |
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| 5.
Mr. M. Imran M. Yunus |
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self/herself for election
as director along with their |
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| 6.
Mr. M. Javed M. Yunus |
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consent to act as
director. |
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| 7.
Mr. Ilyas Ismail Moton |
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| - To appoint Auditors
for the year ending Sep- |
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| tember
30, 1998 and to fix their remuneration. |
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By order of the Board |
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| - To transact any
other business with the permis- |
|
Karachi: |
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| sion
of the Chair. |
|
19th February, 1998 |
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|
|
| FINANCIAL
RATIOS AT SEPTEMBER 30 |
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| HIGHLIGHTS: |
|
1997 |
1996 |
1995 |
1994 |
1993 |
|
| Sales |
|
(Rs.000) |
1,598,965 |
1,486,244 |
1,289,029 |
991,674 |
674,201 |
|
| Gross
Profit |
|
(Rs.000) |
254,796 |
248,772 |
212,522 |
146,307 |
142,537 |
|
| Gross Profit |
|
(
% ) |
15.94% |
16.74% |
16.48% |
14.75% |
21.14% |
|
| Profit
before tax |
|
(Rs.000) |
205,026 |
202,077 |
183,827 |
119,569 |
111,973 |
|
| Profit
after tax |
|
(Rs.000) |
197,021 |
194,519 |
176,117 |
107,934 |
111,973 |
|
| Profit after tax |
|
(
% ) |
12.32% |
13.09% |
13.66% |
10.89% |
16.61% |
|
| Earning per share |
|
(Rs.
) |
8.41 |
8.30 |
7.51 |
5.76 |
11.20 |
|
| Pay out: |
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| * In the form of Bonus Shares |
|
(
% ) |
0.00% |
0.00% |
25.00% |
0.00% |
25.00% |
|
| * In the form of Cash
Dividend |
(
% ) |
40.00% |
50.00% |
15.00% |
30.00% |
0.00% |
|
| Total
pay out |
|
(
% ) |
40.00% |
50.00% |
40.00% |
30.00% |
25.00% |
|
| Total Assets employed |
|
(Rs.000) |
1,481,907 |
1,110,473 |
1,006,577 |
882,528 |
742,949 |
|
| Shareholders Equity |
|
(Rs.000) |
878,948 |
775,677 |
698,345 |
557,384 |
305,700 |
|
| Number
of shares |
|
- |
23,437,500 |
23,437,500 |
23,437,500 |
18,750,000 |
10,000,000 |
|
| Number
of Shareholders |
|
- |
3,724 |
3,754 |
3,822 |
3,944 |
16 |
|
| Number of Spindles Installed |
|
- |
79,200 |
64,800 |
64,800 |
64,800 |
64,800 |
|
| Yarn Produced |
|
(In Kgs) |
14,334,891 |
12,091,581 |
10,033,872 |
9,222,375 |
6,497,003 |
|
|
| PROFIT
& LOSS ACCOUNT COMPARISON AS PERCENTAGE OF SALES |
|
|
1997 |
1996 |
1995 |
1994 |
1993 |
|
| Net Sales (Rs.000) |
|
1,598,965 |
1,486,244 |
1,289,029 |
991,674 |
674,201 |
|
| (in
term of percentage) |
|
|
100.00 |
100.00 |
100.00 |
100.00 |
100.00 |
|
| Cost of Sales |
|
% |
84.06 |
83.26 |
83.52 |
85.25 |
78.86 |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
|
| GROSS PROFIT |
|
% |
15.94 |
16.74 |
16.48 |
13.75 |
21.14 |
|
| Administrative & Selling
Expense |
% |
0.56 |
0.82 |
1.32 |
0.96 |
1.06 |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
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| OPERATING PROFIT |
|
% |
15.38 |
15.92 |
15.16 |
13.79 |
20.08 |
|
| Other Income- Net |
|
% |
0.48 |
0.08 |
0.54 |
0.07 |
0.13 |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
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|
% |
15.86 |
16.00 |
15.7 |
13.86 |
20.21 |
|
| Other
Charges |
|
| Financial |
|
% |
0.30 |
0.08 |
0.54 |
0.07 |
0.13 |
|
| Miscellaneous |
|
% |
2.07 |
0.80 |
0.07 |
0.11 |
0.06 |
|
| Workers' (Profit) Participation
Fund |
% |
0.67 |
0.72 |
0.75 |
0.63 |
0.87 |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
% |
3.04 |
2.40 |
1.44 |
1.80 |
3.60 |
|
| NET
PRETAX PROFIT |
|
% |
12.82 |
13.60 |
14.26 |
12.06 |
16.61 |
|
| Taxation |
|
% |
0.05 |
0.51 |
0.60 |
1.17 |
0.00 |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
|
| NET
PROFIT AFTER TAX |
|
% |
12.32 |
13.09 |
13.66 |
10.89 |
16.61 |
|
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|
| DIRECTORS
REPORT |
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| TO
THE MEMBERS: |
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| It
is a matter of great pleasure for your Board of |
|
| Directors
to welcome you at the 10th Annual |
|
| General
Meeting of the Members which has |
|
| assumed
significant importance as its being held |
|
| when
Pakistan celebrating 50th Anniversary. I |
|
| attribute
this report to the Golden Jubilee of Pakistan. |
|
|
| We
are pleased to report as under: |
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|
| AN
OVERVIEW OF PERFORMANCE: |
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| Pakistan's
textile industry is emerging from a three |
|
| year
recession. The turnaround has been brought |
|
| about by; |
|
| 1.
an increase in demand for textiles, especially |
|
| yarn,
in the international markets; and |
|
|
| 2.
relatively low raw materials cost. |
|
|
| By
the grace of the Almighty Allah your |
|
| management
has been extremely successful in |
|
| identifying
changing trends in the industry and |
|
| shifting
production towards more profitable yarn |
|
| varieties.
This proactive style of management has |
|
| helped
us to maintain profitability even during |
|
| recessionary
years and this fact can be analyzed |
|
| from
the following operational results of the |
|
| Company
for the period ended 30th September |
|
| 1997: |
|
|
(Rs.000) |
|
|
| Net
pre-tax profit for the year |
|
205,026 |
|
| Provision
for taxation |
|
8,005 |
|
|
--------- |
|
| Profit
after tax |
|
197,021 |
|
| Un-appropriated
profit |
|
438,177 |
|
|
--------- |
|
| Profit
available for appropriation |
635,198 |
|
|
| Appropriation: |
|
| Cash
dividend @ 40% |
|
93,750 |
|
| (Including
Interim @ 20% |
|
| already
paid) |
|
|
--------- |
|
| Un-appropriated
profit |
|
541,448 |
|
| carried
forward |
|
========= |
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|
|
| By
the grace of Almighty Allah now there is no |
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| any
Long term loan liability on the face of the |
|
| company's
Balance sheet Inspite of the major |
|
| expansion
being carried out by the Company. As |
|
| evident
from the enclosed financial statement the |
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| main
financial parameters showed an improvement |
|
| over
the previous year and there is a growth of |
|
| about
8% in the sales figure as compared to last |
|
| year
but the rate of GP is slightly on the down side |
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| due
to the increase of input cost of manpower |
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| and
the electricity. Net Pretax profit of the company |
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| after
meeting all the operational, administrative, |
|
| financial
and other expenses improves slightly and |
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| this
is due to tight control over the financial, |
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| administrative
and selling expenses. The Board of |
|
| Directors
of your company keeping in view the |
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| continuous
slump in the stock market and making |
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| conservative
approach has provided a sum of |
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| Rs.30.811
million towards the diminution in the |
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| value
of the investment held by the Company. |
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|
| PROFIT
DISTRIBUTION: |
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| As
our commitment to members; the company |
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| generated
.a quite reasonable profits not only to |
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| finance
continued growth/expansion but also to |
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| provide
members an excellent return on their |
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| investment.
Keeping in view the liquidity requirement |
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| for
the on going expansion, the Board of directors |
|
| of
the Company, are pleased to recommend a Final |
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| payment
of Cash dividend @ 20% in addition to |
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| 20%
interim already paid making total 40% for |
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| the
year under review. |
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|
| OUR
CONTRIBUTION TO THE NATIONAL |
|
| EXCHEQUER: |
|
|
| By
the Grace of God, we proud to inform you that |
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| your
company had contributed Rs. 285.826 Million |
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| to
the national exchequer during the year under |
|
| review
in the form of sales tax, income tax, import |
|
| duties
and other statutory levies as its share in the |
|
| building
a strong Pakistan. |
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|
|
| EXPANSION
OF THE PROJECT: |
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| By
the grace of Almighty Allah our expansion |
|
| program
as given in our Half yearly report has |
|
| successfully
is in progress except small change; that |
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| the
1st batch of 28800 spindles will now |
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| commence
the production tentatively by Mid March |
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| this
year instead of December 1997, and the 2nd |
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| batch
of 20160 spindles will now commence |
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| production
tentatively by end of June instead of end |
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| March
this year Inshallah. With the available |
|
| additional
capacity, we have now fully enter into |
|
| the
export market during the current year and are |
|
| hopeful
of getting export orders for the considerable |
|
| additional
available production facility. |
|
|
| The
cost of electricity from WAPDA is going to be |
|
| out
of reach after the withdrawal of concession in |
|
| the
rates for the industries located in Gadoon |
|
| Amazai
Industrial Estate w.e.f. 3rd June 1997. The |
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| company
had filed a writ petition before the |
|
| Peshawar
High Court Peshawar challenging the |
|
| earlier
withdrawal, however full provision is made |
|
| in
these account against the price hike for which |
|
| bank
guarantees is furnished by the company. To |
|
| keep
your company's product available in the local |
|
| as
well as in the international market at the |
|
| competitive
rates, Board of Directors of your |
|
| company
feel pleasure to inform you the |
|
| establishment
of letter of credit for the import of |
|
| Sang
Yong Diesel Power Generating sets to be |
|
| acquired
.from Ssang Yong Heavy Industries Co., |
|
| Ltd.
Korea under the lease arrangements with |
|
| National
Leasing. The addition of these Gansets |
|
| will
help us in undisturbed and smooth production |
|
| of
quality yarn. The increased productivity, reduced |
|
| production
losses and saving in the electricity cost |
|
| will
definitely lead for the better return on investment |
|
| to
the members. We sincerely hope that the said |
|
| Gensets
will start the production tentatively by end |
|
| of
October, 98. Inshallah. |
|
|
| FUTURE
OUT-LOOK: |
|
|
| With
the additional production capacity and |
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| uninterrupted
power supply we hope to supply the |
|
| quality
product to our local industry as well as to |
|
| our
overseas customers. |
|
|
| We
look to the future with confidence and hope |
|
| for
the better results for the year in progress subject |
|
| to
any change in the policy of the government in |
|
| next
budget. |
|
|
| EARNING
PER SHARE: |
|
|
| The
earning per share during the year under report |
|
| was
Rs. 8.41 (1996-Rs.8.30) |
|
|
| AUDITORS: |
|
|
| The
retiring auditors M/s. Hameed Chaudhri & |
|
| Company
Chartered Accountants being eligible, |
|
| offer
themselves for re appointment. |
|
|
| PATTERN
OF SHAREHOLDING: |
|
|
|
| A
statement reflecting the pattern of shareholding |
|
| is
annexed to this report. |
|
|
| ACKNOWLEDGMENT: |
|
| On
behalf of the Board, I wish to thank; |
|
|
| - All the banks,
financial institutions, and the |
|
| Government
agencies in general for the cooperation |
|
| extended
by them during the course of business |
|
| activities. |
|
| - All our valued
customers for their patronage, |
|
| trust
and confidence in our quality products. |
|
| - All workers,
Staff and executives of the company |
|
| for
their hard work and commitment displayed in |
|
| achieving
the targets set by Board. |
|
| - May Almighty
Allah reward us with his bounties |
|
| as
did in the past. |
|
|
| for
and on behalf of the Board |
|
|
| Karachi: |
|
A. Razzak A. Aziz |
|
| 19th
February, 1998 |
|
Chairman/Chief Executive |
|
|
|
| PATTERN
OF HOLDING OF SHARES |
|
| HELD
BY THE SHAREHOLDERS AS AT SEPTEMBER 30, 1997 |
|
|
| No. of Share Holders |
Total
|
Share
Holding |
Shares Held |
|
|
| 684 |
From |
1 |
to |
100 |
Shares |
32,617 |
|
| 842 |
From |
101 |
to |
500 |
Shares |
209,659 |
|
| 1,530 |
From |
501 |
to |
1,000 |
Shares |
1,169,091 |
|
| 472 |
From |
1,001 |
to |
5,000 |
Shares |
1,085,071 |
|
| 103 |
From |
5,001 |
to |
10,000 |
Shares |
748,861 |
|
| 20 |
From |
10,001 |
to |
15,000 |
Shares |
241,066 |
|
| 14 |
From |
15,001 |
to |
20,000 |
Shares |
242,368 |
|
| 7 |
From |
20,001 |
to |
25,000 |
Shares |
155,849 |
|
| 8 |
From |
25,001 |
to |
30,000 |
Shares |
224,412 |
|
| 4 |
From |
30,001 |
to |
35,000 |
Shares |
127,100 |
|
| 4 |
From |
35,001 |
to |
40,000 |
Shares |
154,812 |
|
| 3 |
From |
40,001 |
to |
45,000 |
Shares |
128,125 |
|
| 3 |
From |
45,001 |
to |
50,000 |
Shares |
143,275 |
|
| 4 |
From |
60,001 |
to |
65,000 |
Shares |
247,700 |
|
| 1 |
From |
65,001 |
to |
70,000 |
Shares |
66,875 |
|
| 1 |
From |
70,001 |
to |
75,000 |
Shares |
75,000 |
|
| 2 |
From |
85,001 |
to |
90,000 |
Shares |
177,200 |
|
| 1 |
From |
90,001 |
to |
95,000 |
Shares |
93,750 |
|
| 1 |
From |
110,001 |
to |
115,000 |
Shares |
112,000 |
|
| 1 |
From |
115,001 |
to |
120,000 |
Shares |
117,187 |
|
| 1 |
From |
135,001 |
to |
140,000 |
Shares |
140,000 |
|
| 4 |
From |
140,001 |
to |
145,000 |
Shares |
565,375 |
|
| 1 |
From |
145,001 |
to |
150,000 |
Shares |
150,000 |
|
| 1 |
From |
235,001 |
to |
240,000 |
Shares |
238,000 |
|
| 1 |
From |
265,001 |
to |
270,000 |
Shares |
266,875 |
|
| 1 |
From |
270,001 |
to |
275,000 |
Shares |
273,750 |
|
| 1 |
From |
275,001 |
to |
280,000 |
Shares |
280,000 |
|
| 1 |
From |
295,001 |
to |
300,000 |
Shares |
296,875 |
|
| 1 |
From |
495,001 |
to |
500,000 |
Shares |
497,600 |
|
| 1 |
From |
665,001 |
to |
670,000 |
Shares |
670,000 |
|
| 1 |
From |
1,245,001 |
to |
1,250,000 |
Shares |
1,247,606 |
|
| 1 |
From |
1,510,001 |
to |
1,515,000 |
Shares |
1,514,948 |
|
| 1 |
From |
1,545,001 |
to |
1,550,000 |
Shares |
1,550,000 |
|
| 1 |
From |
1,775,001 |
to |
1,780,000 |
Shares |
1,779,948 |
|
| 1 |
From |
2,630,001 |
to |
2,635,000 |
Shares |
2,634,075 |
|
| 1 |
From |
5,780,001 |
to |
5,785,000 |
Shares |
5,780,430 |
|
| --------- |
--------- |
--------- |
--------- |
--------- |
--------- |
--------- |
|
| 3,724 |
|
23,437,500 |
|
| ========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
| Categories of Shareholders |
Numbers |
Shares |
Percentage |
|
|
|
Held |
|
|
| INDIVIDUALS |
|
3,663 |
11,463,713 |
48.91% |
|
| INVESTMENT
COMPANIES |
|
10 |
931,505 |
3.97% |
|
| INSURANCE
COMPANIES |
|
1 |
497,600 |
2.12% |
|
| JOINT
STOCK COMPANIES |
23 |
6,832,690 |
29.15% |
|
| FINANCIAL
INSTITUTIONS |
16 |
3,610,037 |
15.40% |
|
| MODARABA
COMPANIES |
|
8 |
88,580 |
0.38% |
|
| LEASING
COMPANIES |
|
3 |
13,375 |
0.06% |
|
|
--------- |
--------- |
--------- |
|
|
3,724 |
23,437,500 |
100.00% |
|
|
|
========== |
========== |
========== |
|
|
|
|
|
|
|
|
|
| AUDITORS'
REPORT |
|
|
|
| TO
THE MEMBERS |
|
| We
have audited the annexed balance sheet of |
|
| GADOON
TEXTILE MILLS LIMITED as at 30 |
|
