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JUBILEE SPINNING & WEAVING MILLS LTD
ANNUAL REPORT 1997
IN THE NAME OF ALLAH, THE BENEFICENT, THE MERCIFUL
CONTENTS
Board of Directors 
Notice of Meeting
Director's Report to the Shareholders 
Chief Executive's Review 
Selected Financial and Operational Data
Sales Figures by Major Product Groups
Financial Ratios 
Breakup of Salaries & Benefits 
Auditor's Report to the Members 
Balance Sheet
Profit and Loss Accounts 
Cash flow Statement 
Notes to the Accounts
Pattern of Shareholdings 
BOARD OF DIRECTORS
Ahsan M. Saleem
Mazhar Karim (Chairman).
Mohammad Arshad
Mohammad Rafi (Chief Executive)
Shams Rafi
Shaukat Shafi
Zahid Bashir
Secretaries
Zaheer A. Shaikh
Rashid Sadiq
Auditors
Rahim Jan & Company
Chartered Accountants
Internal Auditors
M. Yousuf Adil & Co.
Chartered Accountants
Legal Advisers
A. K. Brohi & Co.
Ghani Law Associates
Bankers
Bank of America NT & SA
Habib Bank Limited
Citibank N.A.
Habib Credit & Exchange Bank Limited
Muslim Commercial Bank Limited
National Bank of Pakistan
Registered Office
83-Babar Block, New Garden Town, Lahore.
Mills
8-28, S.I.T.E., Karachi.
Head Office
3rd Floor, Finlay House,
I. I. Chundrigar Road, Karachi.
NOTICE OF ANNUAL GENERAL MEETING
NOTICE IS HEREBY GIVEN THAT the Twenty Third Annual General Meeting of the shareholders of JUBILEE
SPINNING & WEAVING MILLS LIMITED will be held on Monday the March 30, 1997 at 9:00 a.m. at Registered
Office. 83-Babar Block, New Garden Town, Lahore to transact the following business.
1. To receive and adopt the Audited Accounts of the Company for the year ended September 30, 1997
together with the Director's and Auditor's Reports thereon.
2. To approve as recommended by the Directors, the issue of Bonus shares in the ratio of one Bonus share
for every ten existing shares (i.e.@ 10%)
3. To appoint Auditors of the Company for the next financial year and fix their remuneration. The present
Auditors M/s. Rahim Jan & Company. Chartered Accountants retire and being eligible, offer themselves
for reappointment.
PARTICIPATION IN THE ANNUAL GENERAL MEETING :
A member eligible to attend and vote at this Meeting may appoint another member as his/her proxy to attend
and vote instead of him/her behalf. Proxies in order to be effective must be received by the Company at the
Registered Office not later than 48 hours before the time of holding the meeting.
BOOK CLOSURE:
The Share Transfer Books of the Company will remain closed from March 25, 1998 to March 31, 1998 (both
days inclusive). Transfers received at the Registered Office, 83-Babar Block. New Garden Town, Lahore at the
close of business on March 24, 1998 will be treated in time for the purpose of issue of Bonus shares to the
transferees.
ON BEHALF OF THE BOARD
ZAHEER A. SHAIKH
CORPORATE SECRETARY
REGISTERED OFFICE:
83-Babar Block, New Garden Town,
LAHORE:
Phone No. (042) 5881974-75
Fax No. (042) 5881976
Dated March 06, 1998
DIRECTOR'S REPORT TO THE SHAREHOLDERS
Your Directors have pleasure in placing before you the 24rd Annual Report together with the audited
accounts of the Company for the year ended September 30,1997.
Your company's trading for the year resulted in pre-tax profit of Rs. 653,145 after meeting all operational,
administrative, financial and other expenses. After charging Taxation, Profit available for appropriation
comes to Rs. 14,102,599. Your Directors recommended appropriation of profit as follows:
Rupees
Profit before taxation 653,145
Provision for taxation 3,825,897
----------
4,479,042
Add : Unappropriated profit brought forward 9,623,557
----------
14,102,599
APPROPRIATION:
Reserve for proposed issue of 1 Bonus share
against 10 existing ordinary shares i.e. (10%) 6,378,970
----------
Unappropriated Profit carried forward 7,723,629
==========
The present Auditors Messrs Rahim Jan & Co. retire and eligible, offer themselves for reappointment.
Information required under section 236(2) of the Companies Ordinance 1984 follows as "Review" on
the next page.
Management express their appreciation to all categories of employees for their deligent performance, display
of harmony and their continued efforts to improve the efficiency all round.
CHIEF EXECUTIVE'S REVIEW
It gives me pleasure to welcome you to the 24th Annual General Meeting of the Company.
The net sale of the Company rose by 16% to Rs. 577.9 million as compared to 497.0 million
in the previous year. Export sale were Rs. 58.0 million as compared to Rs. 31.0 million in the previous
year their by registering an increase of 87%.
The Company had installed high speed looms in the last quarter of the year under review in line
with its policy towards value addition. This results in increase in value added export by 6 times as compared
to previous year. The achievements encouraged us to continue our efforts and in subsequent financial year
further investment in this regard will be done. We hope that the coming year will be the year of realisation
of Company's efforts. Sales in the domestic market rose by 8.6% to reach 530 million as compared to
487 million in the previous year.
Operating expenses are in line with enhanced operating activities of the Company. As a percentage
of sale operating expenses work out to 3~8% in the current year as compared to 3.0% in the previous
year. Liquidity problem in the domestic market and the high interest rates resulted in sharp increase
in financial expenses.
Our pre tax profit for the year under review shows a decline over the previous year. The earning
per share has increased from Rs. 0.05 to Rs. 0.70.
We are confident that inshallah despite adverse circumstances prevailing in the domestic and
international market our Company will come out of the crises in the coming year.
SELECTED FINANCIAL AND
OPERATIONAL DATA
Application of Revenue Earned:
1997 1996 1995 1994 1993
SALE (Rupees in thousand) 577,916 497,059 496,138 405,868 367,541
========== ========== ========== ========== ==========
% % % % %
(IN TERM OF PERCENTAGE) 100.00 100.00 100.00 100.00 100.00
Cost of Sales 84.42 88.32 84.38 82.40 80.62
---------- ---------- ---------- ---------- ----------
GROSS PROFIT 15.58 11.68 15.62 17.60 19.38
---------- ---------- ---------- ---------- ----------
Administrative expenses 2.67 2.15 2.75 2.25 3.61
Selling & Distribution expenses 1.13 0.83 3.17 3.02 4.34
---------- ---------- ---------- ---------- ----------
3.80 2.98 5.92 5.27 7.95
---------- ---------- ---------- ---------- ----------
OPERATING PROFIT 11.78 8.70 9.70 12.33 11.43
Other Income 1.23 2.34 6.55 2.10 1.57
---------- ---------- ---------- ---------- ----------
13.01 11.04 16.25 14.43 13.00
---------- ---------- ---------- ---------- ----------
Financial expenses 12.84 10.43 11.13 9.39 11.69
Non-operating expenses O.06 0 0.06 0.47 0.14
---------- ---------- ---------- ---------- ----------
12.90 10.43 11.19 986 11.83
---------- ---------- ---------- ---------- ----------
PROFIT BEFORE TAXATION O. 11 0.61 5.06 4.57 1.17
Taxation 0.66 (0.55) (0.74) (0.72) (0.77)
---------- ---------- ---------- ---------- ----------
PROFIT AFTER TAXATION 0.77 0.06 4.32 3.85 0.40
SALES FIGURES BY MAJOR PRODUCT GROUPS
COTTON Quantities in thousands - KGs. Amount in thousands - Rupees
YARN Coarse Medium Fine Total Coarse Medium Fine Total
1992-93
Local Sales - 977 - 977 - 45,173 - 45,173
Export - 3,286 - 3,286 - 172,817 - 172,817
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total - 4,263 - 4,263 - 217,990 - 217,990
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
1993-94
Local Sales - 1,468 - 1,468 - 96,219 - 96,219
Export - 2,096 - 2,096 - 146,237 - 146,237
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total - 3,564 - 3,564 - 242,456 - 242,456
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
1994-95
Local Sales 258 887 7 1,152 17,094 78,772 1,128 96,994
Export - 2,010 108 2,118 - 201,258 10,671 211,929
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total 258 2,897 115 3,270 17,094 280,030 11,799 308,923
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
1995-96
Local Sales 545 2,554 46 3,145 30,509 240,280 6,502 277,291
Export - 166 110 276 - 16,105 12,226 28,331
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total 545 2,720 156 3,421 30,509 256,385 18,728 305,622
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
1996-97
Local Sales 244 3,001 297 3,542 13,170 315,673 66,492 395,335
Export - 284 47 331 - 31,458 6,280 37,738
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total 244 3,285 344 3,873 13,170 347,131 72,772 433,073
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Quantities in thousands Amount in thousands
------------------------------------------------------------------- -------------------------------
COTTON L. METERS SQ. METERS RUPEES
FABRICS Grey Finished Total Grey Finished Total Grey Finished Total
------------------------------------------------------------------- ------------------------------
1992-93
Local Sales 2,413 2,763 5,176 3,843 2,777 6,620 31,788 95,798 127,586
Export 583 772 1,355 933 1,174 2,107 12,854 16,841 29,695
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total 2,996 3,535 6,531 4,776 3,951 8,727 44,642 112,639 157,281
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
1993-94
Local Sales  1,042 3,330 4,372 1,649 3,372 5,021 15,361 129,043 144,404
Export 15 650 665 18 1,242 1,260 297 21,479 21,776
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total 1,057 3,980 5,037 1,667 4,614 6,281 15,658 150,522 166,180
1994-95 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Local Sales 1,496 3,219 4,715 2,349 3,204 5,553 32,858 129,914 162,772
Export  533 512 1,045 989 826 1,815 14,534 14,731 29,265
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total 2,029 3,731 5,760 3,338 4,030 7,368 47,392 144,645 192,037
1995-96 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Local Sales 1,263 4,682 5,945 2,013 4,737 6,750 29,231 179,513 208,744
Export 55 54 109 88 80 168 1,493 1,582 3,075
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total  1,318 4,736 6,054 2,101 4,817 6,918 30,724 181,095 211,819
1996-97 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Local Sales 953 2,423 3,376 1,584 2,442 4,026 24,997 100,840 125,837
Export 132 241 373 179 552 731 5,592 13,587 19,179
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total 1,085 2,664 3,749 1,763 2,994 4,757 30,589 114,427 145,016
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
FINANCIAL RATIOS AT 30TH SEPTEMBER
1997 1996 1995 1994 1993
Gross Profit to Sales % 15.58 11.68 15.62 17.60 19.38
Operating Profit to Sales % 11.78 8.70 9.70 12.33 11.43
Pre-tax Profit to Sales % 0.11 0.61 5.06 457 1.17
Pre-tax Profit to Capital % 1.02 5~28 49.86 51.50 13.11
Pre-tax Profit to capital % 0.51 2.46 20.26 18.07 4.93
 employed
Earning per share Rs. 0.70 0.05 4.25 4.34 0.45
Dividend to capital % 0.00 0.00 0.00 0.00
Bonus issue to capital % 10.00 10.00 15 40.00 10.00
Break up value per share Rs. 20.21 21.46 24.61 28.50 26.58
Debt/Equity Ratio 20/80 20/80 22/78 18/82 25/75
---------- ---------- ---------- ---------- ----------
Current ratio 1.01:1 1.09:1 1.03:1 0.94:1 0.98:1
========== ========== ========== ========== ==========
BREAKUP OF SALARIES & BENEFITS
(RUPEES IN THOUSANDS)
1997 1996 1995 1994 1993
Salaries & Wages 1,271 46,050 42,359 38,860 32,242
Bonus 3,439 4,407 3,547 3,674 5,040
Gratuity provision 7,375 5,758 6,144 2,525 5,209
Social Security 1,792 1,823 1,724 1,611 1,367
Old Age Benefits 1,361 1,382 1,324 1,249 920
Education Cess 163 111 174 112 87
Group Insurance 582 305 634 620 280
Medical Expenses 4 400 320 256 173
Canteen subsidy 653 666 603 540 540
Other welfare charges 1,207 1056 1,101 974 396
---------- ---------- ---------- ---------- ----------
Total Benefits 17,076 15,908 15,571 11,561 14,012
========== ========== ========== ========== ==========
Total Salaries, Wages & benefits 68,347 61,958 57,930 50,421 46,254
========== ========== ========== ========== ==========
AUDITORS' REPORT TO THE MEMBERS
We have audited the annexed balance sheet of Jubilee Spinning & Weaving Mills Limited as at September
30, 1997 and the 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:
(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'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 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 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 and Usher Ordinance, 1980.
Rahim Jan & Company
KARACHI: March 06, 1998 Chartered Accountant
BALANCE SHEET AS AT SEPTEMBER 20, 1997 
1997 1996
CAPITAL & LIABILITIES Note Rupees Rupees
SHARE CAPITAL
AUTHORISED
10,000,000 Ordinary Shares of Rs. 10/- each 200,000,000 100,000,000
========== ==========
Issued, subscribed & Paid-up 3 63,789,700 57,990,640
RESERVES & SURPLUS
Reserves 4 57,390,970 56,811,060
Unappropriated Profit 7,723,629 9,623,557
---------- ----------
65,114,599 66,434,617
---------- ----------
SHARE HOLDERS' EQUITY 128,904,299 124,425,257
LONG TERM LOANS 5 0 4,905,262
LIABILITIES AGAINST ASSETS
ACQUIRED UNDER FINANCE LEASE 6 32,341,867 25,260,546
DEFERRED LIABILITIES
Gratuity 7 31,517,766 28,209,885
Taxation 8 12,976,944 19,972,000
---------- ----------
44,494,710 48,181,885
CURRENT LIABILITIES & PROVISIONS
Current portion of long term liabilities 9 21,237,834 18,999,744
Short-term running finance-secured 10 308,214,685 187,829,910
Creditors, accrued and other liab