| MAPLE LEAF ELECTRONIC COMPANY LIMITED |
|
|
|
|
|
|
| KOHINOOR
MAPLE LEAF GROUP |
|
| ANNUAL
REPORT 1997 |
|
|
|
|
| CONTENTS |
|
| COMPANY
INFORMATION |
|
|
| NOTICE
OF MEETING |
|
|
| DIRECTORS'
REPORT |
|
|
| PATTERN
OF SHARE HOLDING |
|
| AUDITORS'
REPORT |
|
|
| BALANCE
SHEET |
|
|
| PROFIT
& LOSS ACCOUNT |
|
|
| THE
STATEMENT OF CHANGES IN FINANCIAL POSITION |
|
| NOTES
TO THE STATEMENT OF CHANGES IN FINANCIAL POSITION |
|
| NOTES
TO THE ACCOUNTS |
|
|
|
|
| COMPANY
INFORMATION |
|
|
| BOARD
OF DIRECTORS |
|
|
| MR.
TARIQ SAYEED SAIGOL |
Chairman |
|
| MR.
MASUD-UL-AZIZ |
|
Chief Executive |
|
| MR.
TAUFIQUE SAYEED SAIGOL |
|
| MR.
SARMAD Arv11N |
|
| MR.
AAMIR FAYYAZ SHEIKH |
|
| MR.
USMAN SAID |
|
| MR.
ASAD FAYYAZ SHEIKH |
|
|
| COMPANY
SECRETARY |
|
| MR.
MUHAMMAD ASHRAF |
|
|
|
| AUDITORS |
|
| M/s.
AMIN, MUDASSAR & CO. |
|
| Chartered
Accountants |
|
|
| BANKERS |
|
| UNION
BANK LIMITED |
|
| SCHON
BANK LIMITED |
|
| THE
BANK OF PUNJAB |
|
| MUSLIM
COMMERCIAL BANK LIMITED |
|
| PRIME
COMMERCIAL BANK LIMITED |
|
|
| REGISTERED
OFFICE |
|
| &
SHARES DEPARTMENT |
|
| 42-LAWRENCE
ROAD, |
|
| LAHORE
- 54000 |
|
| Tel:
6302261 - 6302262 |
|
| Fax:
92 - 42 - 6368721 |
|
|
| PROJECTS |
|
| ISKENDERABAD,
DISTT. MIANWALI |
|
| TEL:
0459 - 392323 - 392561 |
|
|
| RAWALPINDI,
PESHAWAR ROAD |
|
| TEL:
051 -476153-4 |
|
|
|
| NOTICE
OF MEETING |
|
|
| Notice
is hereby given that the 5th Annual General Meeting of the members of MAPLE
LEAF |
|
| ELECTRIC
COMPANY LIMITED will be held on Monday, December 29, 1997 at 03.00 p.m. at
its |
|
| Registered
Office, 42-Lawrence Road, Lahore, to transact the following business:- |
|
|
| 1.
To confirm the minutes of the Extra-Ordinary General Meeting held on August
08, 1997. |
|
|
|
|
| 2.
To receive, consider and adopt the audited accounts of the Company for the
year ended |
|
| June
30, 1997 together with the Directors' and Auditors' reports thereon. |
|
|
| 3.
To appoint Auditors and fix their remuneration. M/s. Amin, Mudassar &
Co., Chartered |
|
| Accountants,
the retiring auditors, being eligible, offer themselves for re-appointment. |
|
|
| 4.
To transact any other business with the permission of the Chair. |
|
|
| NOTES. |
|
|
| 1.
The share transfer books of the Company shall remain closed from December 27,
1997 |
|
| to
January 02, 1998 (both days inclusive). Transfers received in order at the
Registered |
|
| Office
of the Company by the close of business on December 26, 1997 will be treated
in |
|
| time. |
|
|
|
|
|
| 2.
A member entitled to vote at this meeting is entitled to appoint another
member as |
|
| proxy.
Proxies in order to be effective must be received at 42-Lawrence Road,
Lahore, |
|
| the
Registered Office of the Company not less than 48 hours before the meeting
and |
|
| must
be duly stamped, signed and witnessed. |
|
|
| 3.
Shareholders are requested to promptly notify the Company of any change in
their |
|
| addresses. |
|
|
|
|
|
| DIRECTORS'
REPORT TO THE MEMBERS |
|
| The
Directors of your Company are pleased to present their 5th Annual Report
together with the |
|
| accounts
for the year ended June 30, 1997 and the auditors report thereon. |
|
|
| Financial
Results |
|
| During
the first complete year of operation. we are pleased to inform that the
Company made net profit |
|
| of
Rs. 36.880 million. After adding un-appropriated profit from previous year of
Rs. 21.890 million, the |
|
| total
amount of Rs. 58.771 million has been carried to the balance sheet. |
|
|
| Your
Company could not achieve the desired level of profitability mainly due to
increase in prices of |
|
| inputs
as a result of Government policies. The prices of fuel oils and lubricants
increased by 49% |
|
| whereas
the electricity tariff increased by 11% only. As you are already aware, we
are licensed to supply |
|
| electricity
at the rates fixed by WAPDA and since WAPDA did not revise the tariff of
electricity to the |
|
| desired
extent, your management was unable to recoup the losses on this account and
hence low |
|
| profits
for the year. |
|
|
| Pay-Out |
|
| In
view of low profitability, your directors have not recommended any dividend
for the year. However, as |
|
| per
commitment, 30% bonus shares have already been distributed to the members out
of share |
|
| premium
account. |
|
|
| Operation |
|
| You
will be glad to know that both the plants operated successfully during the
first year of operation. At |
|
| Rawalpindi;
your management was able to supply electricity to some other parties also,
apart from |
|
| Kohinoor
Textile Mills Ltd. and as a result, the plant achieved better utilization.
Presently, the plant is |
|
| operating
at optimum capacity and we hope to maintain this level in future. |
|
|
| The
plant at Iskanderabad remained under utilized during the year under review
due to limited demand |
|
| at
the expansion project of Maple Leaf Cement Factory Ltd. The new cement plant
is complete now and |
|
| is
expected to come into full production during December, 1997. Accordingly your
plant shall be |
|
| achieving
optimum utilization simultaneously. |
|
|
| By
achieving the optimum utilization, considerably better results are expected
for the year 1997-98. |
|
|
| Expansion |
|
| A
new engine, of the same make and capacity as already installed, has arrived
at site and is presently |
|
| under
installation. It is expected to be commissioned during December, 1997 and in
production |
|
| simultaneously
with the new cement plant of Maple Leaf Cement Factory Limited. With the
addition of |
|
| the
new engine, the installed capacity will be enhanced to 35.56 MW. (1996: 29.60
M.w.). |
|
|
| Directors |
|
| There
has been no change in the board since the previous report. |
|
|
| Auditors |
|
| The
retiring auditors M/s. Amin, Mudassar & Co., being eligible, have offered
themselves for |
|
| reappointment
for the ensuing period. |
|
|
| Pattern
of Shareholding |
|
| Statement
showing pattern of share holding is annexed separately to the report. |
|
|
| Appreciation |
|
| Your
directors take the opportunity to thank the bankers, especially The Bank of
Punjab, who rendered |
|
| full
support towards completion of the project. Equal appreciation is due to the
suppliers of the |
|
| machinery
and the contractors who met the target dates assigned to them. |
|
|
| The
employees of the Company deserve the full appreciation of the board for their
cooperation, |
|
| dedication
and hard work during the year. We look forward to their continued support. |
|
|
|
| PATTERN
OF SHARES HELD BY THE SHAREHOLDERS |
|
| AS
AT JUNE 30, 1997 |
|
|
|
| SR. |
NO. OF |
SHAREHOLDINGS |
TOTAL |
|
|
|
| NO. |
SHAREHOLDERS |
FROM |
TO |
SHARES HELD |
|
|
|
|
|
|
|
| 1 |
6 |
1 |
100 |
112 |
|
|
| 2 |
891 |
101 |
500 |
445,050 |
|
|
| 3 |
44 |
501 |
1,000 |
43,600 |
|
|
| 4 |
52 |
1,001 |
5,000 |
163,200 |
|
|
| 5 |
27 |
5,001 |
10,000 |
262,000 |
|
|
| 6 |
7 |
10,001 |
15,000 |
99,200 |
|
|
| 7 |
5 |
15,001 |
20,000 |
100,000 |
|
|
| 8 |
9 |
20,001 |
25,000 |
212,500 |
|
|
| 9 |
4 |
25,001 |
30,000 |
116,300 |
|
|
| 10 |
3 |
30,001 |
35,000 |
105,000 |
|
|
| 11 |
1 |
35,001 |
40,000 |
40,000 |
|
|
| 12 |
1 |
40,001 |
45,000 |
45,000 |
|
|
| 13 |
8 |
45,001 |
50,000 |
396,000 |
|
|
| 14 |
1 |
50,001 |
55,000 |
50,500 |
|
|
| 15 |
1 |
70,001 |
75,000 |
75,000 |
|
|
| 16 |
1 |
95,001 |
100,000 |
100,000 |
|
|
| 17 |
1 |
120,001 |
125,000 |
125,000 |
|
|
| 18 |
1 |
140,001 |
145,000 |
142,500 |
|
|
| 19 |
1 |
155,001 |
160,000 |
160,000 |
|
|
| 20 |
1 |
280001 |
285,000 |
281,100 |
|
|
| 21 |
1 |
285001 |
290,000 |
290,000 |
|
|
| 22 |
3 |
295001 |
300,000 |
900,000 |
|
|
| 23 |
1 |
375001 |
380,000 |
379,500 |
|
|
| 24 |
1 |
385001 |
390,000 |
390,000 |
|
|
| 25 |
3 |
395001 |
400,000 |
1,200,000 |
|
|
| 26 |
1 |
540001 |
545,000 |
543,656 |
|
|
| 27 |
1 |
1,705,001 |
1,710,000 |
1,706,500 |
|
|
| 28 |
3 |
1,995,001 |
2,000,000 |
6,000,000 |
|
|
| 29 |
1 |
2,320,001 |
2,325,000 |
2,322,761 |
|
|
| 30 |
1 |
2,785,001 |
2,790,000 |
2,787,300 |
|
|
| 31 |
1 |
3,015,001 |
3,020,000 |
3,016,700 |
|
|
| 32 |
1 |
3,855,001 |
3,860,000 |
3,856,000 |
|
|
| 33 |
1 |
4,645,001 |
4,650,000 |
4,645,521 |
|
|
| 34 |
1 |
8,995,001 |
9,000,000 |
9,000,000 |
|
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
|
|
| Total |
1,085 |
|
40,000,000 |
|
|
| ========== |
========== |
========== |
========== |
========== |
|
|
|
|
| Note:
The slabs not applicable, have not been shown. |
|
|
| SR. |
CATEGORIES OF |
|
NUMBER OF |
SHARES |
PERCENTAGE OF |
|
| NO. |
SHAREHOLDERS |
|
SHAREHOLDERS |
HELD |
CAPITAL |
|
| 1 |
Individuals |
|
1,052 |
2,123,462 |
5.309 |
|
| 2 |
Investment Companies |
|
8 |
11,087,077 |
27.718 |
|
| 3 |
Insurance Companies |
|
1 |
25,000 |
0.063 |
|
| 4 |
Joint Stock Companies |
|
10 |
17,608,500 |
44.021 |
|
| 5 |
Financial Institutions |
|
3 |
2,837,761 |
7.094 |
|
| 6 |
Foreign Companies |
|
5 |
5,233,200 |
13.083 |
|
| 7 |
Modaraba Companies |
|
6 |
1,085,000 |
2.712 |
|
|
|
|
---------- |
---------- |
---------- |
|
|
Grand Total |
|
1,085 |
40,000,000 |
100.000 |
|
|
|
|
========== |
========== |
========== |
|
|
|
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of MAPLE LEAF ELECTRIC COMPANY LIMITED
as at |
|
| June
30, 1997 and the related profit and loss account and the statement of changes
in financial position, |
|
| 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'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 statement of changes in
financial |
|
| position,
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, 1997 and of the profit
and the |
|
| changes
in the financial position for the year then ended; and |
|
|
| (d)
in our opinion, no Zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
|
|
|
AMIN MUDASSAR & CO |
|
| Lahore:
Nov. 26, 1997 |
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 1997 |
|
|
|
|
1997 |
1996 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| Share
Capital and Reserves |
|
|
|
|
|
| Authorised
capital |
|
|
|
| 75,000,000
Ordinary shares of Rs. 10 each |
|
750,000,000 |
750,000,000 |
|
|
|
|
========== |
========== |
|
| Issued,
subscribed and paid-up capital: |
|
| 40,000,000
ordinary shares of |
|
|
| Rs.
10/- each fully paid in cash |
|
|
400,000,000 |
400,000,000 |
|
| Capital
reserve |
|
3 |
240,000,000 |
240,000,000 |
|
| Un-appropriated
profit |
|
|
58,770,749 |
21,890,310 |
|
|
|
|
---------- |
---------- |
|
|
|
|
698,770,749 |
661,890,310 |
|
|
|
|
| Liability
Against Assets |
|
|
|
| Subject
to Finance Lease |
|
4 |
1,114,443 |
- |
|
|
|
|
|
| Current
Liabilities |
|
|
|
|
|
|
|
| Current
portion of liabilities against |
|
---------- |
---------- |
|
| assets
subject to finance lease |
|
4 |
693,021 |
- |
|
| Short
term finances |
|
5 |
72,949,900 |
30,000,000 |
|
| Creditors,
accrued and other liabilities |
6 |
36,263,075 |
20,797,723 |
|
|
|
|
---------- |
---------- |
|
|
|
109,905,996 |
50,797,723 |
|
| Contingencies
and Commitments |
|
7 |
- |
- |
|
|
|
|
---------- |
---------- |
|
|
|
809,791,188 |
712,688,033 |
|
|
|
|
========== |
========== |
|
|
|
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
| Tangible
Fixed Assets |
|
|
|
| Operating
assets |
|
8 |
551,678,479 |
597,476,646 |
|
| Assets
subject of finance lease |
|
9 |
1,918,431 |
- |
|
| Capital
work in progress |
|
10 |
24,263,860 |
50,000 |
|
|
|
|
---------- |
---------- |
|
|
|
|
577,860,770 |
597,526,646 |
|
| Long
Term Investments |
|
11 |
75,283,840 |
- |
|
| Long
Term Deposits and Deferred Cost |
12 |
14,172,171 |
17,474,373 |
|
| Current
Assets |
|
|
|
|
|
|
---------- |
---------- |
|
| Stores,
spares and loose tools |
|
13 |
19,990,217 |
12,382,061 |
|
| Trade
debts |
|
14 |
48,876,499 |
10,395,964 |
|
| Advances,
deposits, prepayments |
|
|
|
| and
other receivables |
|
15 |
7,457,053 |
7,282,942 |
|
| Short
term investments |
|
16 |
60,900,000 |
- |
|
| Cash
and bank balances |
|
17 |
5,250,638 |
67,626,047 |
|
|
|
|
---------- |
---------- |
|
|
|
142,474,407 |
97,687,014 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
809,791,188 |
712,688,033 |
|
|
|
|
========== |
========== |
|
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 1997 |
|
|
|
|
|
|
July 01, 1996 |
June 01, 1996 |
|
|
|
|
to June 30, |
to June 30, |
|
|
|
|
1997 |
1996 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| Sales |
|
18 |
290,737,436 |
19,995,532 |
|
|
|
|
| Cost of
sales |
19 |
233,262,900 |
15,262,526 |
|
|
|
|
---------- |
---------- |
|
| Gross
Profit |
|
|
57,474,536 |
4,733,006 |
|
| Administrative
and general expenses |
20 |
10,380,994 |
1,627,544 |
|
|
|
|
---------- |
---------- |
|
| Operating
profit |
|
|
47,093,542 |
3,105,462 |
|
|
|
|
|
| Other
income |
|
21 |
5,121,521 |
874,251 |
|
|
|
|
---------- |
---------- |
|
|
|
|
52,215,063 |
3,979,713 |
|
|
|
|
---------- |
---------- |
|
| Financial
charges |
|
22 |
13,654,384 |
598,476 |
|
| Workers'
profit participation fund |
|
|
1,680,240 |
169,062 |
|
|
|
|
---------- |
---------- |
|
|
|
|
15,334,624 |
767,538 |
|
|
|
|
---------- |
---------- |
|
| Profit
for the year/period |
|
|
36,880,439 |
3,212,175 |
|
|
|
|
| Accumulated
profit on bank deposits (net) |
|
| pre-commencement
of operations |
|
|
- |
18,678,135 |
|
|
|
|
---------- |
---------- |
|
|
|
|
36,880,439 |
21,890,310 |
|
| Unappropriated
profit brought forward |
|
21,890,310 |
- |
|
|
|
|
---------- |
---------- |
|
| Unappropriated
profit carried forward |
|
58,770,749 |
21,890,310 |
|
|
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
| THE
STATEMENT OF CHANGES IN FINANCIAL POSITION |
|
| (CASH
FLOW STATEMENT) |
|
| FOR
THE YEAR ENDED JUNE 30, 1997 |
|
|
|
|
1997 |
1996 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| Cash
flows from operating activities |
|
|
|
|
| Cash
generated from operations |
|
A |
71,800,412 |
13,795,552 |
|
| Interest
paid on short term finances |
|
(9,312,212) |
(13,674,419) |
|
| Long
term security deposits |
|
|
(251,908) |
- |
|
|
|
|
---------- |
---------- |
|
| Net
cash inflow from operating activities |
|
62,236,292 |
121,133 |
|
| Cash
flows from investing activities |
|
---------- |
---------- |
|
| Fixed
assets purchased |
|
(13,471,828) |
587,835,339) |
|
| Capital
work in progress |
|
(24,213,860) |
(50,000) |
|
| Proceeds
from sales of fixed assets |
|
1,260,000 |
- |
|
| Investments
purchased |
|
(136,183,840) |
- |
|
| Profit
received on bank deposits |
|
5,638,502 |
22,503,925 |
|
|
|
---------- |
---------- |
|
| Net
cash outflow from investing activities |
|
166,971,026) |
565,381,414) |
|
| Cash
flows from financing activities |
|
---------- |
---------- |
|
| Issue
of shares |
|
- |
120,000,000 |
|
| Share
premium |
|
- |
120,000,000 |
|
| Repayment
of liability under finance lease |
|
(590,575) |
- |
|
| Public
issue expenses |
|
- |
(13,587,649) |
|
|
|
---------- |
---------- |
|
| Net
cash (outflow)/inflow from financing activities |
(590,575) |
226,412,351 |
|
|
|
|
---------- |
---------- |
|
| Net
decrease in cash and cash equivalents |
|
(105,325,309) |
(338,847,930) |
|
| Cash
and cash equivalents at beginning of the year |
B |
37,626,047 |
376,473,977 |
|
|
|
|
---------- |
---------- |
|
| Cash
and cash equivalents at end of the year |
B |
(67,699,262) |
37,626,047 |
|
|
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of this statement. |
|
|
|
| NOTES
TO THE STATEMENT OF CHANGES IN FINANCIAL POSITION |
|
| FOR
THE YEAR ENDED JUNE 30, 1997 |
|
|
|
|
|
1997 |
1996 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| A.
Cash flows from operating activities |
|
|
| Profit
for the year/period |
|
36,880,439 |
3,212,175 |
|
| Add:
Adjustment for non cash charges |
|
|
|
| Depreciation |
|
|
|
58,175,645 |
5,632,256 |
|
| Amortization
of leased assets |
|
|
479,608 |
- |
|
| Deferred
costs amortised |
|
|
3,554,110 |
296,176 |
|
| Interest
on short term finances |
|
12,617,545 |
14,262,226 |
|
| Profit
on sale of fixed assets |
|
|
(165,650) |
- |
|
| Profit
of bank deposits |
|
|
(4,955,871) |
- |
|
|
|
---------- |
---------- |
|
| Profit
before working capital changes |
|
106,585,826 |
23,402,833 |
|
| Movement
in working capital |
|
|
|
| Increase
in current assets |
|
|
|
|
|
---------- |
---------- |
|
| Stores,
spares and loose tools |
|
(7,608,156) |
(12,382,061 |
|
| Trade
debts |
|
(38,480,535) |
(10,395,964 |
|
| Advances,
deposits, prepayments |
|
|
|
| and
other receivables (net) |
|
(856,742) |
(4,850,064 |
|
|
|
---------- |
---------- |
|
|
|
(46,945,433) |
(27,628,089) |
|
| Increase
in current liabilities |
|
|
|
| Creditors,
accrued and other liabilities (net) |
|
12,160,019 |
18,020,808 |
|
|
|
---------- |
---------- |
|
| Cash
generated from operations |
|
71,800,412 |
13,795,552 |
|
|
|
========== |
========== |
|
| B.
Cash and cash equivalents |
|
|
|
| Cash
and bank balances |
|
5,250,638 |
67,626,047 |
|
| Short
term finances |
|
(72,949,900) |
(30,000,000) |
|
|
|
---------- |
---------- |
|
|
|
(67,699,262) |
37,626,047 |
|
