| MOONLITE (PAK) LTD |
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| 27TH
ANNUAL REPORT 1996-97 |
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|
| CONTENTS |
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| COMPANY
INFORMATION |
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|
|
| NOTICE
OF MEETING |
|
|
|
| DIRECTORS'
REPORT |
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|
|
| AUDITORS'
REPORT |
|
|
|
| BALANCE
SHEET |
|
|
|
| PROFIT
& LOSS ACCOUNT |
|
|
|
| CASH
FLOW STATEMENT |
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|
|
| NOTES
TO THE ACCOUNTS |
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|
|
| PATTERN
OF SHARE HOLDING |
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| COMPANY
INFORMATION |
|
| BOARD
OF DIRECTORS |
|
| TAR
H. ISMAlL |
(Chairman & Chief
Executive) |
|
| ABDUL
AZIZ T. ISMAlL |
|
| ASHRAF
T. ISMAlL |
|
| M.
SOHAIL UMER |
|
| SHAHID
UMER |
|
| ZUBEDA
TAR MUHAMMAD |
|
| AQUIL
AHMED KHAN |
(N.I.T. Nominee) |
|
|
| AUDITORS |
|
|
| RAHIM
IQBAL RAFIQ & CO. |
|
| Chartered
Accountants |
|
| BANKERS |
|
|
| MUSLIM
COMMERCIAL BANK LIMITED |
|
| BANK
AL- HABIB LIMITED |
|
| UNITED
BANK LIMITED |
|
| REGISTERED |
|
|
| F-120,
Hub River Road, |
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| OFFICE
& MILLS |
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| S.I.T.E.
Karachi - 75730 |
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|
|
|
| NOTICE
OF MEETING |
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| Notice
is hereby given that the 27th Annual General Meeting of the Shareholders of |
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| MOONLITE
(PAK) LIMITED, will be held at Registered office of the company F-120, |
|
| Hub
River Road, S.I.T.E., Karachi-75730, on Thursday December 18, 1997 at 11.30 |
|
| A.M.
to transact the following business: |
|
| 1.
To confirm the minutes of 26th Annual General Meeting held on December 18,
1996. |
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| 2.
To receive and adopt the directors report and audited accounts of the Company |
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| for
the year ended June 30, 1997. |
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| 3.
To approve Cash Dividend at the rate of 10% as recommended by the Directors. |
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| 4.
To appoint Auditors and fix their remuneration. |
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| 5.
To transact any other business with the permission of the Chairman. |
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|
By Order of the Board |
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|
TAR H. ISMAlL |
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| Karachi:
November 11, 1997 |
CHAIRMAN & CHIEF
EXECUTIVE |
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|
|
| NOTES: |
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| 1.
The share transfer books of the Company will be closed from December 11, 1997 |
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| to
December 18, 1997 (both days inclusive). |
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|
|
|
| 2.
A member of the Company entitled to attend and vote at meeting may appoint |
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| a
proxy and vote for him/her. A proxy must be a member of the Company and |
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| in
order to be effective must be received by the Company not less than 48 hours |
|
| before
the time of holding the meeting. |
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|
| DIRECTORS'
REPORT |
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| Your
Directors present before you 27th Annual Report together with .the |
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| Audited
Accounts for the year ended June 30, 1997. |
|
|
| 1.
FINANCIAL RESULTS: |
|
|
|
RUPEES |
|
| Profit
Before Taxation |
|
|
5,792,196 |
|
| Deduct
Taxation: |
|
|
| Current |
|
|
|
1,680,980 |
|
| Prior
Years |
|
|
|
381,996 |
|
| Deferred |
|
|
|
1,000,000 |
|
|
|
---------- |
|
|
|
|
3,062,976 |
|
|
---------- |
|
| Profit
After Taxation |
|
|
2,729,2 20 |
|
| Accumulated
Loss Brought Forward |
|
|
(1,844,403) |
|
|
|
|
|
---------- |
|
|
|
|
|
884,817 |
|
| Transfer
from General Reserve |
|
|
1,500,000 |
|
|
|
---------- |
|
| Available
for Appropriation |
|
|
2,384,817 |
|
| Dividend
Recommended @ 10% (Re. 1/= Per Share) |
2,159,586 |
|
|
---------- |
|
| Unappropriated
Profit Carried Forward |
|
225,231 |
|
|
|
|
========== |
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|
|
|
|
| 2.
BUSINESS OPERATION: |
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| 2.1
Depressed Condition featured favourably decreasing in the cost of raw
material. |
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| Gross
Profit therefore, increased from 12.56% to 18.65% enabling the company to |
|
| wipe
of the accumulated losses. |
|
| 2.2
Free Import of Blankets & Carpets is still affecting the sales of
company's identicals products. |
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| 2.3
It is very relevant to mention here that under the situation, we have been
able to |
|
| reduce
receivables to a sizeable extent. |
|
| 2.4
Earning per share computes to Rs. 1.26. |
|
| 2.5
Pattern of Shareholding as at June 30, 1997 annexed. |
|
|
| 3.
FUTURE OUTLOOK: |
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| Sluggish
Conditions are not over and raw meterial cost advantage continue to accruing. |
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| Sales
revenue is not upto the mark due to visible economic condition, however
efforts are |
|
| directed
to increase sales revenue. |
|
|
|
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| 4.
AUDITORS: |
|
|
| M/S.
RAHIM IQBAL RAFIQ & CO., Chartered Accountants retire and offer
themselves |
|
| for
reappointment as auditor for the ensuing year. |
|
|
| 5.
ACKNOWLEDGMENT: |
|
|
| Under
the highly depressed and recessionary conditions, we appreciate the
commitment |
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| of
our workforce at all levels. The response of our esteemed clients and dealers
never let |
|
| us
down despite sluggish market conditions. We have been always louding the
contribution |
|
| of
MCB and PICIC as banker and lender in our growth over the years. |
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|
|
|
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|
On Behalf of Board of
Directors |
|
|
|
TAR H. ISMAIL |
|
| Karachi:
November 10, 1997 |
|
CHAIRMAN & CHIEF
EXECUTIVE |
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|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
| We
have audited the annexed Balance Sheet of MOONLITE (PAK) LIMITED as at |
|
| June
30, 1997 and the related Profit and Loss account and statement of changes |
|
| in
financial position together with the notes forming part thereof, for the year
then |
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| 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 |
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| our
audit and, after due varification thereof, we report that: |
|
|
| (a)
in our opinion, proper books of account have been kept by the company |
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| 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 accounts |
|
| and
are further in accordance with accounting policies consistently |
|
| applied; |
|
|
|
|
|
|
| (ii)
the expenditure incurred during the year was for the purpose of the |
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| company's
business; and |
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|
|
|
| (iii)
the business conducted, investments made and the expenditure |
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| incurred
during the year were in accordance with the objects of the |
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| company; |
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|
|
|
|
| (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 the 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, 1996 |
|
| and of the profit and the changes in
financial position for the year then |
|
| ended; and |
|
|
|
| (d)
in our opinion, "No Zakat was deductible at source under the Zakat and |
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| Ushr
ordinance, 1980." |
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|
RAHIM IQBAL RAFIQ &
COMPANY |
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| Karachi:
November 11, 1997 |
Chartered Accountants |
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|
|
|
| BALANCE
SHEET AS AT JUNE 30, 1997 |
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|
|
|
1997 |
1996 |
|
|
NOTE |
RUPEES |
RUPEES |
|
| SHARE
CAPITAL AND RESERVES |
|
| Authorised
Capital |
|
| 4,000,000
Ordinary Shares of Rs. 10/= each |
|
40,000,000 |
40,000,000 |
|
|
========== |
========== |
|
| Issued,
subscribed and paid up capital |
3 |
21,595,860 |
215,958,601 |
|
| Reserves |
|
4 |
399,305 |
1,899,305 |
|
| Unappropriated
Profit/(Loss) |
|
|
225,231 |
(1,844,403) |
|
|
---------- |
---------- |
|
|
22,220,396 |
21,650,762 |
|
| LONG
TERM LOANS |
|
5 |
18,151,901 |
25,302,901 |
|
|
| LIABILITIES
AGAINST ASSETS |
|
| SUBJECT
TO FINANCE LEASE |
|
6 |
11,931,276 |
6,842,593 |
|
|
| DEFERRED
LIABILITIES |
|
| Taxation |
|
|
1,800,000 |
800,000 |
|
| Gratuity |
|
7 |
- |
13,225,705 |
|
|
---------- |
---------- |
|
|
|
|
1,800,000 |
14,025,705 |
|
| CURRENT
LIABILITIES |
|
| Short
term finances |
|
8 |
115,043,366 |
111,304,267 |
|
| Current
portion of long term liabilities |
9 |
10,048,502 |
8,252,607 |
|
| Creditors,
accrued and other liabilities |
10 |
123,881,898 |
100,795,263 |
|
| Proposed
Dividend |
|
|
2,159,586 |
- |
|
| Taxation |
|
|
|
1,300,409 |
1,631,904 |
|
|
---------- |
---------- |
|
|
|
|
252,433,761 |
221,984,041 |
|
| CONTINGENCY
AND COMMITMENTS |
|
11 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
306,537,334 289,806,002 |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these financial statements. |
|
|
| FIXED
CAPITAL EXPENDITURE |
|
|
|
|
| Operating
assets |
|
12 |
59,962,527 |
62,501,954 |
|
| Capital
Work-in-progress |
|
13 |
16,808,218 |
2,386,544 |
|
|
---------- |
---------- |
|
|
76,770,745 |
64,888,498 |
|
|
|
|
| LONG
TERM INVESTMENTS |
|
14 |
25,000 |
25,000 |
|
| LONG TERM LOANS |
|
15 |
- |
7,051,032 |
|
| LONG
TERM DEPOSITS |
|
16 |
2,144,130 |
1,440,530 |
|
|
|
| CURRENT
ASSETS |
|
| Stores,
spares and loose tools |
|
17 |
6,043,682 |
7,524,435 |
|
| Stock-in-trade |
|
18 |
128,829,405 |
105,061,419 |
|
| Trade
debts |
|
19 |
69,184,304 |
95,296,589 |
|
| Loans,
advances, deposits, prepayments |
|
| and
other receivables |
|
20 |
15,171,799 |
7,735,938 |
|
| Cash
and bank balances |
|
21 |
8,368,269 |
782,561 |
|
|
|
---------- |
---------- |
|
|
|
227,597,459 |
216,400,942 |
|
|
---------- |
---------- |
|
|
306,537,334 |
289,806,002 |
|
|
|
|
========== |
========== |
|
|
|
|
| PROFIT
AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE, 30 1997 |
|
|
|
|
|
1997 |
1996 |
|
|
|
|
NOTE |
RUPEES |
RUPEES |
|
|
|
|
| Sales |
|
|
22 |
248,560,144 |
316,010,523 |
|
| Cost
of goods sold |
|
23 |
(202,217,236) |
(276,318,081) |
|
|
---------- |
---------- |
|
| Gross
profit |
|
46,342,908 |
39,692,442 |
|
| Processing
receipts |
|
|
24 |
9,964,817 |
9,379,905 |
|
|
|
|
|
---------- |
---------- |
|
|
56,307,725 |
49,072,347 |
|
| OPERATING
EXPENSES |
|
| Administration
and general |
|
25 |
12,796,050 |
12,523,431 |
|
| Selling
and distribution |
|
26 |
5,775,830 |
5,443,935 |
|
| Financial |
|
|
27 |
31,993,163 |
30,055,521 |
|
|
---------- |
---------- |
|
|
(50,565,043) |
(48,022,887) |
|
|
|
---------- |
---------- |
|
| Operating
profit |
|
5,742,682 |
1,049,460 |
|
| Other
income |
|
28 |
462,937 |
216,035 |
|
|
|
|
|
---------- |
---------- |
|
|
|
6,205,619 |
1,265,495 |
|
|
|
|
|
| Workers'
profit participation fund |
|
310,281 |
63,275 |
|
| Workers'
welfare fund |
|
|
103,142 |
145,449 |
|
|
|
|
---------- |
---------- |
|
|
|
(413,423) |
(208,724) |
|
|
|
|
|
---------- |
---------- |
|
| Profit
Before Taxation |
|
|
5,792,196 |
1,056,771 |
|
| Taxation: |
|
|
|
| Current |
|
29 |
(1,680,980) |
(1,631,904) |
|
| Prior
years |
|
|
(381,996) |
38,494 |
|
| Deferred |
|
|
(1,000,000) |
1,500,000 |
|
|
---------- |
---------- |
|
|
|
(3,062,976) |
(93,410) |
|
|
---------- |
---------- |
|
| Profit
After Taxation |
|
|
|
2,729,220 |
963,361 |
|
| Accumulated
loss brought forward |
|
(1,844,403) |
(2,807,764) |
|
| Transferred
from Revenue Reserves |
|
|
1,500,000 |
- |
|
|
---------- |
---------- |
|
| Available
for appropriation |
|
|
2,384,817 |
(1,844,403) |
|
| Proposed
Dividend @ 10% (1996: NIL) |
|
(2,159,586) |
- |
|
|
| Unappropriated
Profit/(Loss) Carried forward |
|
225,231 |
(1,844,403) |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these financial statements. |
|
|
|
| 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 |
|
| Profit
before taxation |
|
|
5,792,196 |
1,056,771 |
|
|
| ADJUSTMENTS
FOR: |
|
| Depreciation |
|
|
7,111,594 |
7,507,315 |
|
| Provision
for Gratuity |
|
851,864 |
2,309,133 |
|
| Gain
on Disposal of fixed assets |
|
(462,937) |
(216,035) |
|
| Financial
Charges |
|
|
31,993,163 |
30,055 521 |
|
| Decrease/(Increase)
in working capital |
32 |
12,739,332 |
(4,152,019) |
|
|
|
---------- |
---------- |
|
| Cash
Generated from operation |
|
58,025,212 |
36,560,686 |
|
|
| Financial
Charges paid |
|
(32,057,867) |
(22,673,380) |
|
| Taxes paid |
|
|
|
(2,394,471) |
(1,193,506) |
|
| Gratuity
paid |
|
|
|
(3,647,719) |
(251,304) |
|
| Long
term loan employees (net) |
|
2,356,807 |
(1,554,865) |
|
|
|
---------- |
---------- |
|
| Net
cash inflow from operating activities |
|
22,281,962 |
10,887,631 |
|
|
|
| CASH
FLOWS FROM INVESTING ACTIVITIES |
|
| Fixed
capital Expenditure |
|
(10,709,904) |
(4,090,947) |
|
| Proceeds
from disposal of fixed assets |
|
965,000 |
384,000 |
|
|
---------- |
---------- |
|
| Net
cash (out flow) from investing activities |
|
(9,744,904) |
(3,706,947) |
|
|
|
|
|
| CASH
FLOWS FROM FINANCING ACTIVITIES |
|
| Repayment
of long term loans |
|
|
(6,229,000) |
(5,427,000) |
|
| Payment
of lease liabilities |
|
|
(2,823,422) |
(1,787,981) |
|
| Long
term deposits (net) |
|
|
(703,600) |
(117,230) |
|
|
|
|
---------- |
---------- |
|
| Net
cash (out flow) from financing activities |
|
(9,756,022) |
(7,332,211) |
|
|
---------- |
---------- |
|
| Increase/(Decrease)
in cash and cash equivalents |
2,781,036 |
(151,527) |
|
|
| Cash
and Cash equivalents at beginning |
|
| of
the year |
|
(9,424,936) |
(9,273,409) |
|
|
|
| Cash
and Cash equivalents at end of |
|
| the year |
|
33 |
|
|
|
---------- |
---------- |
|
|
|
|
|
(6,643,900) |
(9,424,936) |
|
|
========== |
========== |
|
|
|
|
| NOTES
TO THE ACCOUNTS FOR THE YEAR ENDED JUNE 30, 1997 |
|
|
| 1.
STATUS AND ACTIVITIES |
|
| Moonlite
(Pak) Limited was incorporated in Pakistan as a public limited company and is
quoted on Karachi Stock Exchange. The |
|
| company
is engaged in the manufacturing of woollen yarn, acrylic blankets, synthetic
tufted carpets and allied cotton and synthetic |
| products. |
|
|
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
| 2.1
ACCOUNTING CONVENTION |
|
| These
financial statements have been prepared under the 'historical cost
convention'. |
|
|
|
|
| 2.2
FOREIGN CURRENCIES |
|
| Assets
and liabilities in foreign currencies not covered by forward exchange risk
cover are translated into Pak rupees at |
|
| the
exchange rates prevailing at the balance sheet date excepts those covered by
forward exchange risk cover are converted |
|
| at
contracted rates. Exchange differences are charged to income. |
|
|
|
|
| 2.3
STAFF RETIREMENT BENEFIT |
|
| The
company operated an unfunded gratuity scheme upto March 31, 1997. Provision
is made to cover the obligation |
|
| under
the scheme upto that date. From April 1, 1997 company operates a contributory
provident fund scheme for all |
|
| eligible
employees. The scheme is administered by Trustees nominated under the
relevant Trust Deed. |
|
|
|
|
| 2.4
BORROWING COSTS |
|
| Borrowing
costs are recognized as an expense in the year in which they are incurred
except those that are directly |
|
| attributable
to the acquisition of a fixed asset. |
|
| The
Capitalization of borrowing costs as part of a fixed asset commences when
expenditure for the asset are being incurred; |
|
| borrowing
costs are being incurred and activity that are necessary to prepare asset for
their intended use are in progress. |
|
| Capitalization
of borrowing costs ceases when substantially all the activities necessary to
prepare the asset for their |
|
| intended
use are complete. |
|
|
|
|
|
| 2.5
TAXATION |
|
| Current |
|
|
|
| The
charge for current taxation is based on taxable income at the current rate of
taxation after taking into account tax |
|
| credits
and tax rebates available, if any, or on the basis of 0.5% of turnover
whichever is higher. |
|
| Deferred |
|
|
|
| The
company accounts for deferred taxation using the liability method on all
major timing differences. However, deferred |
|
| tax
is not provided if it is determined with reasonable probability that these
timing differences will not reverse in the |
|
| foreseeable
future. The deferred tax debits are not incorporated in the financial
statements. |
|
|
|
|
| 2.6
FIXED CAPITAL EXPENDITURE |
|
| OPERATING
ASSETS |
|
|
|
| These
are stated at cost less accumulated depreciation except lease hold land which
is stated at cost. |
|
| Depreciation
is charged to income applying the reducing balance method at the rates
specified in operating assets note. |
|
| Maintenance
and normal repairs are charged to income as and when incurred. Major renewals
and improvements are |
|
| capitalized
and assets so replaced, if any, are retired. Gain and loss on disposals of
operating assets is included in income |
|
| currently. |
|
|
|
| Additions
to fixed assets are depreciated for full year irrespecUve of date of
purchase. No depreciation is charged on fixed |
|
| assets
in the year of their disposal. |
|
| CAPITAL
WORK IN PROGRESS |
|
|
| All
cost/expenditure connected with specific assets incurred during the project
implementation period is carried under |
|
| this
head. These are transferred to specific assets as and when assets are
available for use. |
|
|
|
|
| 2.7
ACCOUNTING FOR LEASE |
|
| The
company accounts for the assets acquired under finance lease by recording the
assets and related liability. Financial |
|
| charges
are allocated to accounting period in a manner so as to provide a constant
periodic rate of charge on the |
|
| outstanding
liability. Depreciation is charged at the rates specified in the related note
to write off the assets over its |
|
| estimated
useful life in view of the certainty of ownership of the assets at the end of
the lease period. |
|
|
|
|
| 2.8
LONG TERM INVESTMENTS |
|
| These
are valued at cost. |
|
|
|
|
| 2.9
STORES, SPARES AND LOOSE TOOLS |
|
| Stores,
spares and loose tools are valued at average cost. |
|
|
|
|
| 2.10
STOCK IN TRADE |
|
| These
are valued at lower of cost and net realizable value Cost is determined by
applying the following basis. |
|
|
|
|
| a.
Raw and packing material |
|
: |
at average cost. |
|
| b.
Work-in-process |
|
: |
at prime cost. |
|
| c.
Finished goods |
|
: |
at average manufacturing
cost. |
|
| d.
Raw material in bonded warehouse |
: |
at actual cost. |
|
| e.
Raw material in transit |
|
: |
at actual cost. |
|
|
| 2.11
TRADE DEBTS |
|
| Debts
if considered irrecoverable are written off and provision is made for the
amount considered doubtful. |
|
|
| 2.12
REVENUE RECOGNITION |
|
| Sales
are recorded on despatch of goods, |
|
| Income
on investments are recorded when received, |
|
| Export
rebate is recorded when received. |
|
|
|
|
1997 |
1996 |
|
|
RUPEES |
RUPEES |
|
| 3.
ISSUED, SUBSCRIBED AND PAID-UP CAPITAL |
|
| 1,234,050
(1996: 1,234,050) ordinary |
|
| shares of Rs. 10/= each
fully paid in cash |
|
12,340,500 |
12,340,500 |
|
| 925,536
(1996: 925,536) ordinary shares of |
|
| Rs.
10/= each issued as fully |
|
| paid bonus shares |
|
9,255,360 |
9,255,360 |
|
|
|
---------- |
---------- |
|
|
|
21,595,860 |
21,595,860 |
|
|
|
========== |
========== |
|
|
| 4.
RESERVES |
|
| Revenue |
|
- |
1,500,000 |
|
| Capital |
|
399,305 |
399,305 |
|
|
|
---------- |
---------- |
|
|
399,305 |
1,899,305 |
|
|
========== |
========== |
|
| 5.
LONG TERM LOANS - SECURED |
|
| From
Pakistan Industrial Credit and Investment Corporation Limited. |
|
|
|
|
|
TOTAL |
TOTAL |
|
| Particulars |
|
Loan-I |
Loan-II |
Loan-III |
Loan-IV |
1997 |
1996 |
|
|
|
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
|
|
|
|
| Opening
Balance |
|
13,427,243 |
4,262,015 |
8,786,967 |
5,055,676 |
31,531,901 |
36,958,901 |
|
| Less: |
|
|
| - Paid during the year |
3,212,000 |
859,000 |
1,316,000 |
842,000 |
6,229,000 |
5,427,000 |
|
| - Current portion shown |
|
| under
Current liabilities |
3,677,000 |
985,000 |
1,507,000 |
982,000 |
7,151,000 |
6,229,000 |
|
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
|
6,889,000 |
1,844,000 |
2,823,000 |
1,824,000 |
13,380,000 |
11,656,000 |
