| NATIONAL FOODS (PVT) LIMITED |
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| ANNUAL
REPORT 1997 |
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| CONTENTS |
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| Board
of Directors |
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| Notice
of Meeting |
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| Chairman's
Review |
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| Report
of the Directors |
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| Auditors'
Report to the Members |
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| Balance
Sheet |
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| Profit
and Loss Account |
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| Statement
of Changes in Financial Position |
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| (Cash Flow Statement |
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| Notes
to the Accounts |
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| Pattern
of Share Holdings |
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| Board
of Directors |
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| MR. A. MAJEED |
|
Chairman |
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| MR.
WAQAR HASAN |
|
Managing Director |
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Chief Executive |
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| MR.
KHAWAR M. BUTT |
|
Director |
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| MR.
ABRAR HASAN |
|
Director |
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| MR.
SIRAJUDDIN AHMAD |
|
Director (I.C.P. Nominee) |
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| MR.
ZAHID MAJEED |
|
Director |
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| MS.
JAMILA WAQAR |
|
Director |
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| MS.
M. E. MAJEED |
|
Director |
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| MR.
HABIB A. ISMAlL KHAIRANI |
Company Secretary |
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| REGISTERED
OFFICE |
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12/CL-6, Claremont Road,
Civil Lines, Karachi-75530. |
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Phones: 515564, 515740,
515981,5662687 |
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P.O. Box No. 15509 Fax
No. 5684870 |
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TIx: 20191 CATEL PK. |
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| AUDITORS |
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Riaz Ahmad, Saqib, Gohar
& Company |
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Chartered Accountants, |
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5-Nasim Cooperative
Housing Society Ltd, |
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Major Nazir Bhatti Road, |
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Off Shahid-e-Millat Road, |
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Karachi. |
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Phones: 4945427 - 4946112 |
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Fax: 4932629 |
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| REGISTRAR |
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Noble Computer Services
(Pvt.) Limited |
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1st FIoor, AI-Manzoor
Building, |
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Dr. Ziauddin Ahmad Road,
Karachi. |
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Phones: 2635511-14 |
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| BANKERS |
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Muslim Commercial Bank
Limited, |
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Clifton Corporate Branch, |
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Kulsom Court, Clifton,
Karachi. |
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Phones: 5872286 - 5831835 |
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Fax :5872058 |
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Bank Al-Habib Limited |
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Mackvolk Building, |
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I. I. Chundrigar Road,
Karachi. |
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Phones: 2412986 (10
lines) |
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Fax : 2419752 |
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| Notice
of Meeting |
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| Notice
is hereby given that the 26th Annual General Meeting of National Foods
Limited |
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| will
be held at the Registered Office situated at 12/CL-6, Claremont Road, Civil
Lines |
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| Karachi,
on Saturday the 27th December 1997, at 4.00 p.m.
to transact the following |
FOOD |
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| business: |
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| 1.
To read and confirm the minutes of the Last Annual General Meeting held on |
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| 22nd
December 1996. |
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| 2.
To Receive, consider and approve the Audited Accounts for the year ended 30th |
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| June 1997. |
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| 3.
To Approve issue of bonus shares @ 12.5% to such shareholders whose names |
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| appear
on the members' book on 27th December 1997. |
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| 4.
To elect Directors for a period of 3 years. The Board of Directors has fixed
number |
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| of
Directors to be elected as 7 (seven) excluding any director(s) nominated |
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| by
Development Financial Institutions.. Following are the retiring directors who |
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| are
also eligible to offer themselves for re-election: |
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| ·
Mr. A. Majeed |
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| ·
Mr. Waqar Hasan |
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| ·
Mr. Khawar M. Butt |
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| ·
Mr. Abrar Hasan |
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| ·
Mr. Zahid Majeed |
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| ·
Ms. Jamila Waqar |
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| ·
Ms. M. E. Majeed |
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| Any
person who seeks to contest the election of directors may file his (her)
consent |
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| to
the company in accordance with Companies Ordinance, 1984. |
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| 5.
To appoint Auditors for the year 1997-1998 and fix their remuneration. The
present |
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| auditors
Messrs. Riaz Ahmad, Saqib, Gohar & Company, Chartered Accountants |
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| retire,
being eligible, have offered themselves for re-appointment as Auditors. |
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| Special
Business: |
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| 6.
To approve the remuneration payable to the full time working Directors of the |
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| Company. |
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| 7.
To transact any other business with the permission of the Chairman. |
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| NOTES: |
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| 1.
The share transfer books of the Company will remain closed from 20th December |
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| 1997
to 27th December 1997. (Both days inclusive). |
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| 2.
All members are entitled to attend and vote at the meeting. |
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| 3.
A member entitled to attend and vote at the meeting may appoint a proxy to |
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| attend,
speak and vote for him/her. A proxy needs to be a member of Company. |
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| 4.
In order to be valid, an instrument of proxy and the power of Attorney or
other |
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| authority
(if any) under which it is signed, or a notarially certified copy of such |
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| power
of authority, must be deposited at the Registered Office of the Company |
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| not
less than 48 hours before the time of the meeting. |
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| 5.
Shareholders are requested to notify immediately, any change in their
Registered |
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| address. |
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| 6.
Statement under section 160 of the Companies Ordinance1984 pertaining to the |
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| Special
Business are being sent to the shareholders with this Notice. |
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| STATEMENT
OF MATERIAL FACTS UNDER SECTION 160 OF THE COMPANIES ORDINANCE 1984. |
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| To
pass the following special resolutions with or without modification: |
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| The
Company requires the approval of the shareholders of the remuneration |
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| payable
to the Chief Executive and Directors of the Company. For this purpose, |
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| it
is intended to pass the following Resolutions:- |
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| "RESOLVED
THAT the company hereby approves and authorizes the payment |
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| consisting
of salary and allowances to the Directors, namely Messrs. Waqar Hasan. |
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| A.
Majeed, Abrar Hasan, Zahid Majeed and Mrs. Jamila Waqar, not exceeding |
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| Rs.
2,242,800/= (Rupees twenty two lacs fourty two thousands eight hundred only) |
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| per
annum exclusive of perquisites, bonus and retirement benefits paid in |
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| accordance
with the Company's policy. |
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| ALSO
RESOLVED THAT the Chief Executive of the Company be and is hereby |
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| authorized
to increase the above remuneration in future not exceeding 20% per |
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| annum. |
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| FURTHER
RESOLVED THAT in the event of any of the aforesaid offices falling vacant, |
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| the
approval hereby given shall equally applicable to any other person appointed |
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| to
fill such vacancy." |
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| Chairman's
Review |
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| Moving
Towards HI-TECH and Value Addition |
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| National
Foods Limited., like other Companies in Pakistan is passing through a phase
of |
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| restructuring.
The year under review has many bright features such as: |
|
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| (a)
Quality Standards throughout have improved. |
|
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| (b)
The new Pickle Plant went into production and our pickles are rated in top
bracket |
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| locally
as well as in export markets. Further improvements in storage and preparatory |
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| methods
are under study which will yield better profitability by reducing wastage |
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| of
materials and efficient use of space available. |
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| (c)
The new Processing Plant to produce Wet Products such as Tomato Ketchup,
Pastes |
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| Table
& Cooking sauces has just gone into production and the first launch of
Tomato |
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| Ketchup
is underway. This will open up new avenues to bring into the market |
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| INNOVATIVE
Products. We hope that new range of products will enhance Company's |
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| Profitability. |
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| (d)
Human Resource department is in place and working, Each and every job is
being |
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| defined,
Scales are being fixed, Training and Development Programs are underway. |
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| Hopefully
new talents will be attracted which will help the Company to move |
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| forward
into the next millennium. |
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| On
Financial side the Company is actively engaged to devise ways for efficient
use of |
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| Resources,
some Results are reflected in the Balance Sheet. The prominent features are: |
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| 1.
PICIC Long Terms Loan has been fully paid. The Company is availing the
Leasing |
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| Facilities
for capital expenditures where needed. |
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| 2.
Export Re-Finance Limit has increased from 21.4 millions to 28.5 millions
which will |
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| reduce
the cost of finances. |
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| 3.
There has been a net increase of 15.580 millions in the Fixed Assets through
self |
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| financing
and 2,393 millions through leasing. |
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| 4.
Inventory Control has improved. |
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| Sales
Tax Rates revised from 15% to 18% with effect from 1st. July 1996, in the
Federal |
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| Budget.
In addition to this few more products previously exempt from Sales Tax were |
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| included
in the Tax Bracket. Although the present Government reduced the Sales Tax |
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| Rates
from 18% to 12.5% from the month April 1997, however, the adverse impact of
almost |
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| 7.2
millions for the first 9 months, is reflected in the results for the year
under report. |
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| Despite
our entire efforts, we have not been able to check increase in costs of |
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| infrastructures,
utilities, promotional and payroll costs etc. Unfortunately we have to |
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| live
with these Inflationary fluctuations, we can only minimize the effects by
increasing |
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| efficiency. |
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| The
Net Sale has increased by 17.2% only which is one of the lowest for many
years but |
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| fortunately
we are able to maintain the Gross Profit. The young and energetic management |
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| must
be complemented for preparing the company to face future challenges and |
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| moving
fast towards new innovative products. |
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|
| Managing
Director's Write Up |
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| for
Annual Report 1996-97 |
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| It
gives me great pleasure to present the audited results of National Foods
Limited for |
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| the
year 1996-97 |
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| RESULTS
AND PERFORMANCE |
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| A
summary of the key financial indicators along with the profit and
appropriations are |
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| presented
below:- |
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| PROFIT
AND APPROPRIATIONS |
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|
1997 |
1996 |
|
|
| Profit
after taxation |
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|
8,463,413 |
7,790,939 |
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| Un-appropriated
profit |
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|
18,845,139 |
17,027,728 |
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|
---------- |
---------- |
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|
27,308,552 |
24,818,667 |
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| Appropriations: |
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| Proposed
Cash Dividend |
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|
- |
2,986,764 |
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| Reserve
for issue of Bonus Shares |
|
4,106,800 |
2,986,764 |
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|
---------- |
---------- |
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|
4,106,800 |
5,973,528 |
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|
---------- |
---------- |
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|
23,201,752 |
18,845,139 |
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|
========== |
========== |
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| BONUS |
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| The
company has generated a profit of Rs.8,463,413 after tax and after adding to
the un- |
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| appropriated
Profit of Rs. 18,845,139 brought forward from last year, the Board of
Directors |
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| have
announced 12.5% Bonus Shares to be issued in the ratios of 125 Bonus Shares
for every |
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| 1000
Ordinary Shares held by the members whose names appear in the members
register |
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| on
27-12-1997. |
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|
| PERFORMANCE |
|
|
|
| NFL
has registered a growth of 17.17% and the profit registered has increased
from last |
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| tear
at a rate of 2.97% before tax. |
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| The
reason of this somewhat |
|
| stagnant
performance has |
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| been
mostly attributed to |
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| the
rampant growth in |
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| inflation
that had persisted |
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| in
the market with the then |
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|
|
| present
government. The |
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|
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| major
increase has been |
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|
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| witnessed
in the material |
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|
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| inputs
like Raw Material and |
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|
| Packaging
material. Adjust- |
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|
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| ment
for this haphazard |
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|
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| inflationary trend
was |
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|
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| accounted
for through price |
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|
|
| increase,
control of input |
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|
|
| costs
and wastage control |
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|
|
| exercises.
Also work on making the organization lean and efficient is underway. |
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| However
due to the above mentioned factor, the growth in profit could not be
sustained. |
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| overall
the trend has 'dissipated to an extent and expenses have been controlled. |
|
| Inflationary
prices were responsible for the slow growth of the company compared to |
|
| last
year. The market witnessed a decrease in consumer spending due to this factor |
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| and
people switched over to the unbranded Market to maximize their spending on |
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| household
items. |
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| Further,
due to liquidity |
|
| crunch
that prevailed during |
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| the
period, the shopkeeper |
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| witnessed less buying |
|
|
|
| strength,
which forced the |
|
|
| distributors
to keep the stocks |
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| at
minimum at their |
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| warehouses. |
|
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| On
the other hand, efforts |
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| to
increase exports were |
|
| fruitful
and we registered a |
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| growth
of 92.95%. Our primary |
|
| efforts
were to establish a |
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| distribution
network with the |
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| help
of our present distributors |
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|
|
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| in
the various parts of the |
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| world,
To an extent, |
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| performance
has greatly improved in the Middle East and North American markets. |
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| As
far as bulk exports are concerned, Red Chillies continued to be a problem.
The |
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| government,
however in the latter part of the year allowed Exports of Red Chillies once |
|
| again.
However, due to extremely low prices offered by the Indians in the global |
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| market,
their domination still continues and no favourable outcome can be expected |
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| till
the local market prices come down. However, we still managed to export two |
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| containers
of Red Chillies in the last quarter of the year to our bulk customers in the
North |
|
| American
market. |
|
|
| Salt
and Pickles continue to be leading brands in the market today and have shown |
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| a
steady growth over a last couple of years. Recipe range is also one of the
fastest |
|
| growing
categories at this time and the growth rate is being sustained. |
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|
| OUTLOOK
FOR THE FUTURE |
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| Due
to stagnant growth in plain spices, it has become evident that a move has to
be |
|
| made
towards more value added products. In this regard, the new range of Ketchup |
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| has
been launched in November 1997. This launch comprises of 3 varieties in
consumer |
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| bottles,
one variety in the economy bottle and also a bulk catering pack for the food |
|
| services.
Expansion and step-up of plant in this regard is also complete. |
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|
| By
start of ketchup or wet based products, NFL will become well placed in the
market |
|
| to
launch other similar products. |
|
|
| AUDITORS |
|
| The
present auditors M/s. Riaz Ahmad, Saqib, Gohar & Company, Chartered
Accountants |
|
| retire,
being eligible for re-appointment, have offered themselves, for
re-appointment |
|
| as
auditors for the year 1997-1998. |
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|
| PATTERN
OF SHARE HOLDING |
|
| The
Pattern of Share Holding as referred by Section 236 of the Companies
Ordinance |
|
| 1984,
is enclosed. |
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|
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| MANAGEMENT |
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| Special
thanks and appreciation to the marketing and operations staff of National |
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| Foods
is due. They have worked very hard to keep the company stable during the
tough |
|
| economic
conditions. This was possible through their coherent ability to work as a
team |
|
| and
generate effective and efficient results. They must be congratulated for a
job well |
|
| done. |
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| NATIONAL
FOODS LIMITED |
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| RATIO
ANALYSIS |
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|
1993 |
1994 |
1995 |
1996 |
1997 |
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| LIQUIDITY
RATIOS |
|
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|
|
|
| Current
Ratio |
|
1.21 |
1.24 |
1.07 |
1.02 |
1.01 |
|
|
| Acid
Test Ratio |
|
0.60 |
0.60 |
0.39 |
0.25 |
0.28 |
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|
| Super
Quick Ratio |
|
0.18 |
0.15 |
0.11 |
0.11 |
0.10 |
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| GEARING
RATIOS |
|
|
|
|
|
| Gearing
Ratio |
|
6.30% |
4.84% |
3.77% |
5.11% |
4.41% |
|
|
| Debt
/ Equity Ratio |
|
6.72% |
5.09% |
3.92% |
5.39% |
4.61% |
|
|
| Interest
Cover |
|
307.60% |
339.34% |
332.77% |
227.76% |
228.07% |
|
|
| OPERATING
RATIOS |
|
|
|
|
|
|
|
| Return
On Capital Employed |
18.50% |
25.76% |
26.41% |
27.41% |
24.55% |
|
|
| Return
On Shareholder's Equity |
13.96% |
15.71% |
18.74% |
13.48% |
12.77% |
|
|
| Gross
Profit- Margin |
|
20.85% |
23.4t% |
20.21% |
20.15% |
20.20% |
|
|
| Operating
Profit |
|
7.67% |
9.79% |
8.59% |
6.27% |
6.15% |
|
|
| Net
Profit Margin |
|
3.25% |
3.57% |
3.56% |
2.31% |
2.14% |
|
|
| TURNOVER
RATIO |
|
|
|
|
|
| Asset
Turnover |
|
1.99 |
1.91 |
1.99 |
2.07 |
2.31 |
|
|
| Invested
Capital Turnover |
4.02 |
4.19 |
5.07 |
5.54 |
5.70 |
|
|
| Equity
Turnover |
|
4.29 |
4.40 |
5.26 |
5.83 |
5.96 |
|
|
| Capital
Intensity |
|
5.20 |
5.95 |
5.76 |
5.83 |
6.09 |
|
|
| Receivable
Days |
|
39.69 |
46.78 |
31.18 |
15.32 |
17.61 |
|
|
| Days
Inventory |
|
70.89 |
87.46 |
95.07 |
106.08 |
85.05 |
|
|
| Inventory
Turnover |
|
5.15 |
4.17 |
3.84 |
3.44 |
4.29 |
|
|
| Working
Capital Turnover |
18.83 |
14.50 |
44.36 |
143.76 |
502.89 |
|
|
| OPERATING
EXPENSES (% OF SALES) |
|
| Admin. |
|
|
4.51% |
3.99% |
3.63% |
3.49% |
3.49% |
|
|
| Selling |
|
|
11.54% |
13.00% |
11.15% |
11.54% |
12.20% |
|
|
| Financial |
|
|
1.86% |
2.14% |
1.85% |
2.37% |
2.07% |
|
|
| COST |
|
|
|
|
|
| Materials |
|
|
83.02% |
83.62% |
84.87% |
84.80% |
84.94% |
|
|
| Direct
Labor |
|
3.70% |
4.43% |
4.65% |
4.93% |
4.59% |
|
|
| Overheads |
|
|
13.28% |
11.95% |
10.48% |
10.27% |
10.47% |
|
|
| Admin. |
|
|
21.61% |
17.04% |
17.95% |
17.33% |
17.25% |
|
|
| Selling |
|
|
55.35% |
55.55% |
55.14% |
57.29% |
60.42% |
|
|
| Financial |
|
|
8.92% |
9.16% |
9.17% |
11.74% |
10.27% |
|
|
| Earnings
Per Share |
|
2.62 |
3.18 |
3.66 |
2.61 |
2.58 |
|
|
|
|
|
| Auditors'
Report to the Members |
|
|
|
|
| We
have audited the annexed balance sheet of National Foods Limited as at 30 |
|
| June,
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's
business; and |
|
|
| iii)
the business conducted, investment 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 June 1997 and of the profit for the year then |
|
| ended; and |
|
|
| (d)
In our opinion, Zakat deductible at source under the Zakat and Ushr Ordi- |
|
| nance,
1980, was deducted by the company and deposited in the Central |
|
| Zakat
Fund established under section 7 of that ordinance. |
|
|
|
RIAZ AHMAD, SADIQ, GOHAR
& CO. |
|
| Karachi:
22nd Nov 1997 |
|
CHARTERED ACCOUNTANTS |
|
|
|
| Balance
Sheet as at 30th June 1997 |
|
|
|
|
|
NOTE |
1997 |
1996 |
|
|
|
|
Rupees |
Rupees |
|
| CAPITAL
AND LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
| Capital
and reserve |
|
|
|
|
|
|
| Authorised
Capital 5,000,000 |
|
|
| (1996:
5,000,000) Ordinary |
|
|
| Shares
of Rs.10/- each |
|
|
50,000,000 |
50,000,000 |
|
|
|
|
========== |
========== |
|
| Issued,
Subscribed and Paid-up Capital |
2 |
32,854,400 |
29,867,640 |
|
| Capital
Reserve - Share Premium |
|
|
6,102,100 |
6,102,100 |
|
| Reserve
for Issue of Bonus shares |
|
|
4,106,800 |
2,986,764 |
|
| Unappropriated
Profit |
|
|
23,201,752 |
18,845,139 |
|
|
|
|
---------- |
---------- |
|
|
|
|
66,265,052 |
57,801,643 |
|
|
|
|
| Long
Term liabilities - Secured |
|
|
| Long
term loans |
|
3 |
- |
3,332,681 |
|
| Liabilities
against assets subject finance lease |
4 |
1,605,027 |
1,330,141 |
|
| Deferred
Tax |
|
|
1,450,000 |
1,450,000 |
|
|
|
|
---------- |
---------- |
|
|
|
|
3,055,027 |
3,113,409 |
|
|
|
|
| Current
Liabilities and Provision |
|
|
| Current
portion of long term liabilities |
5 |
2,041,893 |
1,558,580 |
|
| Finances
utilized under mark-up |
|
|
|
| arrangements
- Secured |
|
6 |
65,928,944 |
61,674,985 |
|
| Creditors,
accrued & other liabilities |
7 |
33,430,005 |
35,412,368 |
|
| Proposed
dividend |
|
|
- |
2,986,764 |
|
|
|
|
---------- |
---------- |
|
|
|
|
101,400,842 |
101,632,697 |
|
| Contingencies
Commitments |
|
8 |
- |
- |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
170,720,921 |
162,547,749 |
|
|
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
| PROPERTY
AND ASSETS |
|
|
|
|
|
|
|
|
|
|
| Fixed
Capital Expenditure |
|
|
|
|
|
|
|
|
|
| Fixed
assets |
|
9 |
53,253,413 |
44,007,001 |
|
| Assets
subject to finance lease |
|
10 |
4,563,012 |
2,873,428 |
|
| Capital
work-in-progress |
|
11 |
7,094,511 |
10,970,239 |
|
|
|
|
---------- |
---------- |
|
|
|
|
64,910,936 |
57,850,668 |
|
|
|
|
|
| Long
Term Deposits |
|
|
823,496 |
718,851 |
|
| Deferred
Expenditure |
|
12 |
2,800,000 |
- |
|
|
|
|
| Current
Assets |
|
|
|
| Stock-in-trade |
|
13 |
73,462,638 |
78,251,712 |
|
| Trade
debts - Unsecured - |
|
|
| Considered
good |
|
|
19,057,254 |
14,154,820 |
|
|
|
|
| Advances,
deposits, prepayments, and |
|
| other
receivables |
|
14 |
8,974,134 |
10,507,876 |
|
|
|
|
| Cash
and bank balances |
|
15 |
692,463 |
1,063,822 |
|
|
|
|
---------- |
---------- |
|
|
|
|
102,186,489 |
103,978,230 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
170,720,921 |
162,547,749 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| Profit
and Loss Account |
|
| For
the year ended 30th June 1997 |
|
|
|
|
NOTE |
1997 |
1996 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
|
| Sales |
|
|
|
16 |
395,094,052 |
337,202,404 |
|
| Less:
Cost of sales |
|
|
17 |
315,279,604 |
269,257,624 |
|
|
|
|
|
|
---------- |
---------- |
|
| Gross
profit |
|
|
|
79,814,448 |
67,944,780 |
|
| Less:
Administrative expenses |
|
18 |
13,771,521 |
11,772,599 |
|
| Selling
and distribution expenses |
|
19 |
48,220,661 |
38,923,752 |
|
| Financial
expenses |
|
20 |
8,193,848 |
7,976,678 |
|
| Workers'
profit participation Fund |
|
|
481,421 |
551,000 |
|
| Workers'
welfare fund |
|
|
325,226 |
- |
|
|
|
|
---------- |
---------- |
|
|
|
|
70,992,677 |
59,224,029 |
|
|
|
|
---------- |
---------- |
|
| Operating
Profit |
|
|
|
8,821,771 |
8,720,751 |
|
| Add:
Other income |
|
|
21 |
1,672,078 |
1,470,188 |
|
|
|
|
---------- |
---------- |
|
| Profit
before taxation |
|
|
|
10,493,849 |
10,190,939 |
|
| Taxation |
|
|
|
22 |
2,030,436 |
2,400,000 |
|
|
|
|
|
|
---------- |
---------- |
|
| Profit
after taxation |
|
|
|
8,463,413 |
7,790,939 |
|
| Add:
Unappropriated profit brought |
|
|
| forward
from pervious year |
|
|
18,845,139 |
17,027,728 |
|
|
|
|
---------- |
---------- |
|
| Profit
available for appropriation |
|
|
27,308,552 |
24,818,667 |
|
|
|
|
|
|
| APPROPRIATION: |
|
|
|
| Proposed
cash dividend (1996: 10%) |
|
|
- |
2,986,764 |
|
| Reserve
for Issue of Bonus Share |
|
|
| (1996:10%) |
|
|
|
4,106,800 |
2,986,764 |
|
|
|
|
---------- |
---------- |
|
|
|
|
4,106,800 |
5,973,528 |
|
|
|
|
| Unappropriated
profit carried forward |
|
---------- |
---------- |
|
| to
balance sheet |
|
|
|
23,201,752 |
18,845,139 |
|
|
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
|
| Statement
of Changes in Financial Position (cash Flow Statement |
|
| For
the year ended 30th June 1997 |
|
|
|
1997 |
1996 |
|
|
|
Rupees |
Rupees |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
| Profit
before taxation |
|
|
10,493,849 |
10,190,939 |
|
| Adjustments
for non cash charges and other items |
---------- |
---------- |
|
| Depreciation |
|
|
7,037,602 |
5,838,804 |
|
| Amortization
of leased assets |
|
|
773,441 |
528,982 |
|
| Profit
on sale of fixed assets |
|
|
(407,657) |
(333,689) |
|
| Financial
charges |
|
|
8,193,848 |
7,976,678 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
15,597,234 |
14,010,775 |
|
|
|
|
|
---------- |
---------- |
|
| Operating
profit before working capital changes |
|
26,091,083 |
24,201,714 |
|
|
|
|
| (Increase)
/ decrease in current assets |
|
|
| Stock
in trade |
|
4,789,074 |
(20,283,191) |
|
| Trade debts |
|
|
(4,902,434) |
9,675,225 |
|
| Advances,
deposits, prepayments and other receivable |
2,060,803 |
(1,382,644) |
|
|
|
---------- |
---------- |
|
|
|
1,947,443 |
(11,990,610) |
|
| Decrease
in current liabilities |
|
|
|
| Creditors
accrued and other liabilities |
|
(157,670) |
(1,938,945) |
|
|
|
---------- |
---------- |
|
|
|
27,880,856 |
10,272,159 |
|
| Financial
charge paid |
|
(10,254,526) |
(6,944,625) |
|
| Taxation
paid |
|
(2,557,497) |
(2,627,966) |
|
|
|
---------- |
---------- |
|
|
|
(12,812,023) |
(9,572,591) |
|
|
|
---------- |
---------- |
|
| Net
cash from operating activities |
|
15,068,833 |
699,568 |
|
|
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
|
| Capital
expenditure |
|
|
|
(12,980,365) |
(13,278,893) |
|
| Sale
proceeds of fixed assets |
|
|
1,260,536 |
1,214,739 |
|
| Long
term deposits |
|
|
|
(104,645) |
(353,120) |
|
| Finance
leased assets |
|
|
|
(2,743,825) |
(3,402,410) |
|
| Deferred
expenses |
|
|
|
(2,800,000) |
- |
|
|
|
|
|
---------- |
---------- |
|
| Net
cash used in Investing activities |
|
(17,368,299) |
(15,819,684) |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
(2,299,466) |
( 15,120,116) |
|
|
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
|
| Repayment
of long term loan |
|
|
(484,268) |
(273,000) |
|
| Dividend
paid including fraction of bonus shares |
(2,750,783) |
(2,633,650) |
|
| Proceed
from finance lease |
|
|
909,199 |
2,737,721 |
|
|
|
|
|
---------- |
---------- |
|
| Net
cash used in financing activities |
|
(2,325,852) |
(168,929) |
|
|
|
|
|
---------- |
---------- |
|
| Net
decrease in cash & cash equivalent |
|
(4,625,318) |
(15,289,045) |
|
| Cash
& cash equivalent at the beginning of the year |
(60,611,163) |
(45,322,118) |
|
|
|
|
|
---------- |
---------- |
|
| Cash
& cash equivalent at the end of the year |
|
(65,236,481) |
(60,611,163) |
|
|
|
|
|
========== |
========== |
|
|
|
|
| CASH
& CASH EQUIVALENTS |
|
|
|
| Cash
& bank balance |
|
692,463 |
1,063,822 |
|
| Finance
utilized under mark-up arrangements |
|
(65,928,944) |
(61,674,985) |
|
|
|
---------- |
---------- |
|
|
|
(65,236,481) |
(60,611,163) |
|
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
| Notes
to the Accounts |
|
| For
the year ended 30th June 1997 |
|
|
|
| 1.
ACCOUNTING POLICIES |
|
|
|
|
|
| 1.1
Accounting Convention |
|
|
|
|
| These
accounts have been prepared on historical cost convention without |
|
| taking
into account the effect of inflation or current cost. |
|
|
| 1.2
Taxation |
|
|
|
| The
provision for current taxation is based on taxable income at the current |
|
| rates
of taxation after taking into account available tax rebates and credits. |
|
|
| The
company provides for deferred taxation, if any, using the liability method. |
|
| However,
no provision is made if it is estimated that this would not reverse in |
|
| the
foreseeable future. |
|
|
| 1.3
Staff Retirement Benefits |
|
|
|
|
| The
company operates a funded gratuity scheme covering all permanent |
|
| employees
and is calculated on the basis of 30 days of the last drawn salary |
|
| and
length of service of the employees as against 20 days in the previous |
|
| years.
Provision to cover this obligation is made annually. |
|
|
|
|
| The
company also operates a funded provident scheme, covering all permanent |
|
| employees.
Monthly contribution is made at the rate of 5 percent of the pay |
|
| of
employees to the fund. |
|
|
| 1.4
Fixed Assets and Depreciation |
|
|
| All
fixed assets except lease hold lands and capital work-in-progress are |
|
| stated
at written down value which is arrived at by deducting accumulated |
|
| depreciation
from cost. Lease hold lands aria capital work4n-progress are |
|
| stated
at cost. Cost in relation to certain fixed assets signifies historical cost |
|
| and
cost of borrowing during construction period in respect of loans taken |
|
| for
specific project. |
|
|
| Depreciation
is charged on reducing balance method whereby the cost of |
|
| asset
is written off over its expected useful life. Maintenance and normal |
|
| repairs
are charged to income. Major renewals and replacement are |
|
| capitalised
and the assets so replaced, if any, are retired. Full year's depreciation |
|
| is
charged on assets acquired during the year whereas no depreciation is |
|
| charged
on assets deleted. Gains and losses on disposal at assets are |
|
| included
in income currently. |
|
|
| 1.5
Assets subject to finance Lease |
|
|
| Assets
subject to finance lease are stated at the lower of present value of |
|
| minimum
lease payments under the lease agreement and the fair value of |
|
| the
assets. The related obligations of the lease are accounted for as
liabilities. |
|
| Assets
acquired under finance lease are amortized over the useful life of the |
|
| asset
on a reducing balance method at the rates given in the relevant note. |
|
| Amortization
of leased assets is charged to current year's income |
|
|
| 1.6
Stock-in- Trade |
|
| Raw
materials, work-in-progress and packing materials are valued at average |
|
| cost
whereas finished goods are valued at lower of cost and net realisable |
|
| value.
Appropriate manufacturing overheads are included in the cost of |
|
| finished
goods. Goods-in-transit are stated at cost. |
|
|
| 1.7
Foreign Currency Translation |
|
| Assets
and liabilities in foreign currencies are translated at the rates of |
|
| exchange
prevailing on the balance sheet date. The resulting gains and |
|
| losses
are charged to current year's income. |
|
|
|
|
| 1.8
Revenue Recognition |
|
| Revenue
is recognised on the basis of sales which are recorded at the time |
|
| of
despatch of goods. Returns are booked as and when advised. Goods are |
|
| sold
subject to reservation of title, as is customary in this trade. |
|
|
|
|
|
|
|
1997 |
1996 |
|
|
|
Rupees |
Rupees |
|
| 2.
ISSUED, SUBSCRIBED AND |
|
|
| PAID-UP
CAPITAL |
|
|
|
|
|
|
|
| 1,255,990
(1996: 1,255,990) Ordinary Shares |
|
| of
Rs. 10/- each fully paid in cash |
|
12,559,900 |
12,559,900 |
|
| 2,029,450
(1996: 1,730,774) Ordinary Shares |
|
|
| of
Rs. 10/- each issued as fully |
|
|
| paid
bonus shares |
|
|
20,294,500 |
17,307,740 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
32,854,400 |
29,867,640 |
|
|
|
|
========== |
========== |
|
| 3.
LONG TERM LOANS - SECURED |
|
|
|
|
|
| Pakistan
Industrial Credit and |
|
|
| Investment
Corporation Limited |
|
|
| Foreign
Currency Loan |
|
|
3.1 |
- |
484,268 |
|
|
| Less:
Installments due within one year |
|
|
|
|
|
| shown
under current portion of |
|
|
|
|
|
|
| long
term loans |
|
|
|
- |
151,000 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
- |
333,268 |
|
|
|
|
========== |
========== |
|
| 3.1
Foreign Currency Loan |
|
|
| Opening
Balance |
|
|
333,268 |
625,268 |
|
|
| Less:
Paid during the year |
|
|
333,268 |
141,000 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
- |
484,268 |
|
|
|
|
========== |
========== |
|
|
|
|
| This
represents liability in respect of machinery acquired under financing |
|
| arrangement
with PICIC and is repayable in sixteen biannually instalments |
|
| with
mark-up @ 14% per annum including 3% exchange fluctuation |
|
| coverage
fee. It is secured against the hypothecation of plant & machinery |
|
| and
floating charges on other assets of the company and a Demand |
|
| Promissory
Note. |
|
|
|
|
|
|
| 4.
LIABILITIES AGAINST ASSETS |
|
|
| SUBJECT
TO FINANCE LEASE |
|
|
|
|
|
| Present
value of minimum lease rental payments |
|
3,646,920 |
2,737,721 |
|
|
| Less:
Current portion shown under current |
|
|
|
| liabilities |
|
|
|
|
2,041,893 |
1,407,580 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
1,605,027 |
1,330,141 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
|
1997 |
1996 |
|
|
|
Rupees |
Rupees |
|
| 5.
CURRENT PORTION OF |
|
|
| LONG
TERM LOANS |
|
|
| Long
term loan |
|
|
- |
151,000 |
|
| Liabilities
against assets subject to finance lease |
2,041,893 |
1,407,580 |
|
|
|
|
---------- |
---------- |
|
|
|
2,041,893 |
1,558,580 |
|
|
|
|
|
========== |
========== |
|
|
|
|
| 6.
FINANCES UTILIZED UNDER MARK-UP |
|
|
| ARRANGEMENTS
- SECURED |
|
|
|
|
|
| Muslim
Commercial Bank Limited |
|
|
| Export:
refinance |
|
6.1 |
28,260,000 |
21,400,000 |
|
| Running
finance |
|
6.2 |
16,063,424 |
14,201,372 |
|
|
|
|
---------- |
---------- |
|
|
|
|
44,323,424 |
35,601,372 |
|
| Bank
AI Habib Limited |
|
|
|
| Running
finance |
|
6.3 |
21,605,520 |
26,073,613 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
65,928,944 |
61,674,985 |
|
|
|
|
========== |
========== |
|
|
|
|
|
LIMIT |
|
EXPIRY |
RATE OF |
|
SECURITY |
|
|
|
Rupees |
|
MARK-UP |
|
|
|
|
|
|
|
|
| 6.1 |
28,500,000 |
|
30 Sep |
13% per annum |
(i) Banks lien on export
L/Cs contract and |
|
|
(1996: 21,400,000) |
1997 |
on daily product |
hypothecation of stock. |
|
|
|
basis. |
|
|
|
|
|
(ii) Collaterally secured
against property |
|
|
|
mentioned in note 6,2
below, |
|
|
|
|
|
| 6.2 |
17,700,000 |
|
30 Sep |
45 paisa per |
(i) Hypothecation of raw,
packing materials |
|
|
(1996:17,720,000) |
1997 |
Rs. 1,000 on |
and finished goods,
Equitable mortgage |
|
|
daily product |
of factory premises
valued at Rs.8.6 |
|
|
basis. |
|
million. First charge on
fixed and current |
|
|
|
assets for Rs. 4.500
million, Registered |
|
|
|
charge of Rs. 50 million
with Registrar, |
|
|
|
Joint Stock Companies, |
|
|
|
|
| 6.3 |
22,000,000 |
|
31 Oct. |
in between 14 % |
(i) Hypothecation of
movables & book |
|
|
(1996: 27,000,000) |
1997 |
and 17.52 % |
|
debts, |
|
|
|
on daily product |
|
|
|
|
basis. |
|
(ii) Demand Promissory
note and personal |
|
|
|
|
guarantees of the
directors of the |
|
|
|
|
company. |
|
|
|
|
|
1997 |
1996 |
|
|
|
Rupees |
Rupees |
|
| 7.
CREDITORS, ACCRUED AND |
|
|
| OTHER
LIABILITIES |
|
|
|
| Creditors |
|
|
12,772,311 |
17,444,231 |
|
| Accrued
expenses |
|
|
3,730,997 |
1,680,037 |
|
| Advance
from customers |
|
|
3,247,930 |
1,630,020 |
|
| Mark-up
accrued on secured loans |
|
|
25,237 |
2,087,415 |
|
| Unclaimed
divided |
|
|
486,029 |
250,044 |
|
| Due
to associated undertakings |
|
|
366,181 |
35,048 |
|
| Due
to directors |
|
|
12,884 |
39,172 |
|
| Payable
to contractors |
|
|
- |
215,600 |
|
| Due
to gratuity trust |
|
|
7,795,696 |
7,333,509 |
|
| Payable
to employees provident trust |
|
81,338 |
27,013 |
|
| Sales
tax payable |
|
|
1,015,651 |
320,268 |
|
| Workers'
welfare fund |
|
|
575,891 |
250,665 |
|
| Workers'
profit participation fund |
|
7.1 |
536,579 |
604,609 |
|
| Other
liabilities |
|
|
2,783,281 |
3,494,737 |
|
|
|
---------- |
---------- |
|
|
|
|
33,430,005 |
35,412,368 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
|
1997 |
1996 |
|
| 7.1
Workers' Profit Participation Fund |
|
Rupees |
Rupees |
|
|
|
|
| Opening
balance |
|
|
|
604,609 |
687,226 |
|
| Allocation
for the year |
|
|
481,421 |
551,000 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
1,086,030 |
1,238,226 |
|
|
|
|
| Interest
on funds utilized in |
|
|
|
| company's
business |
|
|
|
35,000 |
33,500 |
|
| Payment
to beneficiaries |
|
|
(584,451) |
(667,117) |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
536,579 |
604,609 |
|
|
|
========== |
========== |
|
|
| 8.
CONTINGENCIES AND COMMITMENTS |
|
|
|
|
| There
were no capital commitment and contingent liability as at 30 June 1997 |
|
| (1996:
Rs. Nil). |
|
|
|
| 9.
FIXED ASSETS |
|
|
|
|
|
COST |
|
|
|
DEPRECIATION |
|
|
|
|
Written |
|
|
As on |
Additions/ |
As at |
RATE |
As on |
Charge |
As at |
Down value |
| PARTICULARS |
|
1 July |
(Deletions) |
30 June |
|
1 July |
for the |
30 June |
as at |
|
|
1996 |
During the |
1997 |
|
1996 |
Year |
1997 |
30 June 1997 |
|
|
|
Year |
|
(Adjustment) |
|
|
|
|
|
Rupees |
Rupees |
Rupees |
% |
Rupees |
Rupees |
Rupees |
Rupees |
|
| Lease
hold Land |
|
1,450,235 |
- |
1,450,235 |
- |
- |
- |
|
1,450,235 |
|
|
|
|
|
|
|
| Buildings
on Leasehold Land |
17,100,139 |
8,297,226 |
25,397,365 |
10 |
8,105,192 |
1,729,217 |
9,834,409 |
15,562,956 |
|
|
|
|
|
|
|
| Plant,
Machinery, |
|
|
|
|
|
|
| Equipments
& Generators |
30,795,500 |
2,489,340 |
33,284,840 |
10 |
12,416,746 |
2,086,809 |
14,503,555 |
18,781,285 |
|
|
|
|
|
|
|
|
| Office
and other Equipments |
11,035,126 |
2,330,909 |
13,356,035 |
15 |
5,187,290 |
1,226,146 |
6,407,873 |
6,948,162 |
|
|
|
(10,000) |
|
|
(5,563) |
|
|
| Laboratory
Equipments |
|
921,366 |
162,450 |
1,083,816 |
10 |
261,465 |
82,235 |
343,700 |
740,116 |
|
|
|
|
|
|
|
|
| Motor
Vehicles |
|
9,249,017 |
2,773,685 |
10,757,077 |
20 |
4,006,964 |
1,489,619 |
4,798,600 |
5,958,477 |
|
|
|
(1,265,625) |
|
|
(697,983) |
|
|
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
| Furniture
and Fixtures |
|
4,734,310 |
802,483 |
5,536,793 |
10 |
1,301,035 |
423,576 |
1,724,611 |
3,812,182 |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
| Total 1996: |
|
67,452,458 |
9,651,470 |
75,285,693 |
|
26,377,073 |
5,838,804 |
31,278,692 |
44,007,001 |
|
|
|
|
(1,818,235) |
|
(937,185) |
|
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
| 9.1 Depreciation has been allocated as
follows: |
|
|
|
|
1997 |
1996 |
|
|
|
Rupees |
Rupees |
|
|
|
|
| Cost
of sales |
|
4,739,382 |
3,798,676 |
|
| Administrative
expenses |
|
1,149,110 |
1,020,064 |
|
| Selling
and distribution expense |
|
1,149,110 |
1,020,064 |
|
|
|
---------- |
---------- |
|
|
|
7,037,602 |
5,838,804 |
|
|
========== |
========== |
|
|
|
|
| 9.2
Disposal of Fixed Assets |
|
|
| Particulars |
|
Cost |
Accumulated |
Book |
Sold |
Profit (Loss) |
Mode of |
|
|
|
|
Depreciation |
Value |
for |
|
Disposal |
|
|
|
|
Rs. |
Rs. |
Rs. |
Rs. |
Rs. |
|
| Motor
Vehicles |
|
|
| Yamaha
100 cc |
|
| Reg.
No. MNO- 4994 |
|
| Sold
to Mr, Ahmer Ajaz |
|
| EX-38/2
Madni ST-I |
|
| Near
Siddiga Masjid |
|
| New
Gulgusht Colony Multan. |
28,000 |
20,660 |
7,340 |
18,960 |
11,620 |
Company Scheme |
|
|
| Honda
CD 70 cc |
|
| Reg.
No, LDF- 5751 |
|
| Sold
to Mr. Malik Mohammad Shoaib |
|
| H.
No. 1174St. 12/B Makkah Colony |
|
| Gulberg-III,
Lahore |
|
27,350 |
20,180 |
7,170 |
17,260 |
10,090 |
Company Scheme |
|
|
| Suzuki
Swift |
|
| Reg
No, E - 7858 |
|
| Sold
to Ms Rukhsana Perveen |
|
| C-78,
9th Badar Comm. St. |
|
| D.H.A, |
|
| Karachi |
|
205,000 |
177,486 |
27,514 |
115,000 |
87,486 |
By Negotiation |
|
|
| Yamaha
100 cc |
|
| Reg.
No. KCM- 5083 |
|
| Sold
to Mr. Khalid Hashmi |
|
| H.No.
732/14 F.B. Area, |
|
| Karachi |
|
29,000 |
19,498 |
9,502 |
19,251 |
9,749 |
Company Scheme |
|
|
| Yamaha
100 cc |
|
| Reg.
No, LOG- 2817 |
|
| Sold
to Mr, Malik Ajmal Khan |
|
| H.
No. E-141/9 Gali No.3 Qadir Colony |
|
| Walton
Road Lahore. |
|
30,000 |
20,170 |
9,830 |
19,915 |
10,085 |
Company Scheme |
|
|
| Yamaha
100 cc |
|
| Reg.
No. KCS- 6042 |
|
| Sold
to Mr. Nasir Ahmed |
|
| H.No,
L-525 Sector 5C/2 |
|
| North
Karachi |
|
32,500 |
21,850 |
10,650 |
10,650 |
- |
Company Scheme |
|
|
| Honda
CD 70 cc |
|
| Reg.
No. KAK- 8738 |
|
| Claim
E.F.U. General Insurance Ltd. |
39,000 |
19,032 |
19,968 |
47,000 |
27,032 |
Insurance Claim |
|
|
|
|
|
| Particulars |
|
Cost |
Accumulated |
Book |
Said |
Profit (Loss) |
Mode of |
|
|
|
|
Depreciation |
Value |
for |
|
Disposal |
|
|
|
|
Rs. |
Rs. |
Rs. |
Rs. |
Rs. |
|
|
|
|
|
| Honda
CD 70 cc |
|
| Reg.
No, KCK- 5279 |
|
| Claim
E.F.U, General Insurance Ltd. |
40,500 |
19,764 |
20,736 |
48,500 |
27,764 |
Insurance Claim |
|
|
|
|
| Honda
CD 70 cc |
|
|
|
| Reg.
No. KCV- 2552 |
|
| Claim
E.F.U, General Insurance Ltd, |
50,800 |
18,288 |
32,512 |
51,000 |
18,488 |
insurance Claim |
|
|
|
|
| Suzuki
Pickup |
|
|
| Reg.
No. KB-0225 |
|
|
| Said
to M/s. Riaz Motors |
|
| Shahrah-e-Quaideen |
|
|
| Karachi |
|
106,500 |
88,633 |
17,867 |
32,000 |
14,133 |
By Negotiation |
|
|
|
|
| Diahatsu
Charade |
|
|
| Reg.
No. C - 6695 |
|
|
| Said
to Dr. Arjumand Bono |
|
| 64/C/7
D.C.H.S. |
|
|
| Karachi |
|
100,475 |
94,952 |
5,523 |
25,000 |
19,477 |
By Negotiation |
|
|
| Yamaha
100 cc |
|
| Reg.
No. Lax-5496 |
|
| Claim
E.F.U. General Insurance Ltd. |
51,500 |
10,300 |
41,200 |
52,000 |
10,800 |
Insurance Claim |
|
|
| Diahutsu
Charade |
|
| Reg,
No, T- 1946 |
|
| Said
to Mrs. Mohsina Hafiz |
|
| 149-B
Block 5 Karachi |
|
| Administration
Society Karachi |
140,000 |
28,000 |
112,000 |
115,000 |
3,000 |
By Negotiation |
|
|
| Suzuki
Khyber |
|
| Reg.
No, T- 7572 |
|
| Said
to Major Wasif All Mahmud |
|
| 9-B
3rd North Street |
|
| Defence
Phase ~, Karachi. |
207,000 |
139,170 |
67,830 |
130,000 |
62,170 |
By negotiation |
|
|
| Yamaha
100 cc |
|
| Reg.
No. KCC- 235 |
|
| Claim
E.F.U. General Insurance Ltd. |
58,000 |
- |
58,000 |
58,000 |
- |
insurance Claim |
|
|
| Honda
CD 70 cc |
|
| Reg
No. KCC * 993 |
|
| Claim
E.F.U, General Insurance Ltd, |
59,000 |
- |
59,000 |
60,000 |
1,000 |
Insurance Claim |
|
|
|
|
|
| Honda
CD 70 cc |
|
|
|
| Reg.
No. KCC- 4475 |
|
|
|
| Claim
E.F.U. General Insurance Ltd. |
61,000 |
- |
61,000 |
61,000 |
- |
Insurance Clam |
|
|
| Car
Airconditioner |
|
| Disposed
with car |
|
| Reg.
No. C - 6695 |
|
10,000 |
5,563 |
4,437 |
5,000 |
563 |
By Negotiation |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
1,275,625 |
703,546 |
572,079 |
885,536 |
313,457 |
|
|
========== |
========== |
========== |
========== |
========== |
|
|
|
|
| 10.
ASSETS SUBJECT TO FINANCE LEASE |
|
|
|
|
COST |
|
|
|
DEPRECIATION |
|
|
|
----------------------------------- |
|
----------------------------------- |
Written |
|
|
|
As on |
Additions/ |
As at |
RATE |
As on |
Charge |
As at |
Down value |
|
|
|
1 July |
(Deletions) |
30 June |
|
1 July |
for the |
30 June |
as at |
|
|
|
1996 |
During the |
1997 |
|
1996 |
Year |
1997 |
30 June 1997 |
|
|
|
|
Year |
|
|
|
Rupees |
Rupees |
Rupees |
% |
Rupees |
Rupees |
Rupees |
Rupees |
|
|
| Machinery |
|
1,515,000 |
1,575,000 |
3,090,000 |
10 |
151,500 |
293,850 |
445,350 |
2,644,650 |
|
| Motor
Vehicles |
1,887,410 |
1,168,825 |
2,705,235 |
20 |
377,482 |
479,591 |
786,873 |
1,918,362 |
|
|
|
(351,000) |
|
|
(70,200) |
|
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| Total 1997: |
|
3,402,410 |
2,743,825 |
5,795,235 |
|
528,982 |
773,441 |
1,232,223 |
4,563,012 |
|
|
|
|
(351,000) |
|
|
(70,200) |
|
|
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| Total 1996: |
|
- |
3,402,410 |
3,402,410 |
30 |
- |
528,982 |
528,982 |
2,873,428 |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
| 10.
1 The amortization has been allocated as follow: |
|
|
|
|
|
|
1997 |
1996 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| Cost of sales |
|
506,896 |
324,782 |
|
| Administrative
expenses |
|
149,395 |
134,200 |
|
| Selling and
distribution expense |
117,150 |
70,000 |
|
|
|
---------- |
---------- |
|
|
|
|
773,441 |
528,982 |
|
|
|
========== |
========== |
|
|
| 10.2
Disposal of Leased Assets |
|
|
|
| Particulars |
|
Cost |
Accumulated |
Book |
Sold |
Profit |
Mode of |
|
|
|
Depreciation |
Value |
for |
/(Loss) |
Disposal |
|
|
Rs. |
Rs. |
|
Rs. |
Rs. |
|
|
|
|
|
| Suzuki
Khyber (Lease) |
|
| Reg.
No, AB-6706 |
|
| Claim
E.F.U. General |
|
| Insurance Ltd. |
|
351,000 |
70,200 |
280,800 |
375,000 |
94,200 |
Insurance Claim |
|
|
| 11.
CAPITAL WORK-IN-PROGRESS |
|
| Building |
|
6,537,792 |
9,338,793 |
|
| Plant
& Machinery |
|
556,719 |
1,631,446 |
|
|
|
---------- |
---------- |
|
|
|
7,094,511 |
10,970,239 |
|
|
|
========== |
========== |
|
| 12.
DEFERRED EXPENDITURE: |
|
|
|
| Gratuity |
|
1,800,000 |
- |
|
| Advertisement |
|
1,000,000 |
- |
|
|
|
---------- |
---------- |
|
|
|
|
2,800,000 |
- |
|
|
|
========== |
========== |
|
|
|
|
| 12.1
Gratuity have been provided on the basis of last drawn salary and length of |
|
| services
of employees and calculated on 30 days per annum basis. |
|
|
|
|
| 13.
STOCK IN TRADE |
|
|
|
| Raw
materials |
|
16,286,468 |
8,964,390 |
|
| Work
in process |
|
31,769,675 |
31,701,448 |
|
| Finished
goods |
|
11,468,939 |
15,085,404 |
|
| Packing
material |
|
12,362,042 |
18,241,802 |
|
| Goods
in transit |
|
1,575,514 |
4,258,668 |
|
|
|
---------- |
---------- |
|
|
|
73,462,638 |
78,251,712 |
|
|
|
========== |
========== |
|
|
|
|
|
|
1997 |
1996 |
|
|
|
|
Rupees |
Rupees |
|
| 14.
ADVANCES, DEPOSITS, PREPAYMENTS |
|
| AND
OTHER RECEIVABLES |
|
|
|
|
|
| Advance |
|
|
|
|
|
|
|
| Staff
-- Considered good |
|
2,977,440 |
3,400,756 |
|
| Income tax |
|
2,070,296 |
1,543,235 |
|
|
|
|
|
| Sales tax |
|
- |
33,132 |
|
| Others
-- Considered good |
|
1,423,076 |
2,799,194 |
|
|
|
---------- |
---------- |
|
|
|
6,470,812 |
7,776,317 |
|
|
|
|
| Prepayments |
|
|
360,085 |
552,350 |
|
| Deposits |
|
|
114,400 |
139,400 |
|
| Export
rebate receivable -- |
|
|
| considered
good |
|
632,036 |
913,511 |
|
| Due
from associated undertakings |
|
14.1 |
1,331,245 |
1,060,742 |
|
| Others
considered good |
|
65,556 |
65,556 |
|
|
|
---------- |
---------- |
|
|
|
8,974,134 |
10,507,876 |
|
|
|
|
========== |
========== |
|
|
|
|
| 14.1
Maximum aggregate balance due from associated undertaking at the |
|
| end
of any month during the year was Rs. 1,331,245 (1996: 1,060,742). |
|
|
|
|
|
|
| 15.
CASH AND BANK BALANCES |
|
|
|
|
|
| In hand |
|
|
70,500 |
66,500 |
|
| With
banks in current accounts |
|
621,963 |
997,322 |
|
|
|
---------- |
---------- |
|
|
|
692,463 |
1,063,822 |
|
|
|
|
========== |
========== |
|
| 16. SALES |
|
|
|
|
| Local Sales |
|
|
|
|
| Gross sales |
|
404,120,699 |
373,415,936 |
|
|
|
---------- |
---------- |
|
| Less: |
Discount to distributors |
|
45,022,647 |
43,982,430 |
|
|
Cartage/Freight |
|
10,532,554 |
11,569,161 |
|
|
Sales tax |
|
27,615,325 |
18,889,829 |
|
|
Sales returns |
|
8,092,938 |
4,393,056 |
|
|
|
---------- |
---------- |
|
|
|
91,263,464 |
78,834,476 |
|
|
|
---------- |
---------- |
|
|
|
312,857,235 |
294,581,460 |
|
| Export
Sales |
|
|
| Gross Sales |
|
|
88,709,788 |
46,073,564 |
|
|
|
---------- |
---------- |
|
| Less: |
Freight |
|
4,459,788 |
2,348,566 |
|
|
Forwarding charges |
|
1,709,331 |
1,104,054 |
|
|
Commission |
|
303,852 |
- |
|
|
|
---------- |
---------- |
|
|
|
6,472,971 |
3,452,620 |
|
|
|
---------- |
---------- |
|
|
|
82,236,817 |
42,620,944 |
|
|
|
---------- |
---------- |
|
|
|
395,094,052 |
337,202,404 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
|
1997 |
1996 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| 17.
COST OF SALES |
|
|
| Opening
stock of work in process |
|
31,701,448 |
20,802,681 |
|
|
|
|
|
---------- |
---------- |
|
| Add:
Material consumed |
|
17.1 |
264,251,741 |
247,058,327 |
|
| Direct
wages |
|
|
14,483,688 |
13,280,335 |
|
| Factory
overheads |
|
17.2 |
32,995,937 |
27,640,965 |
|
|
|
|
---------- |
---------- |
|
|
|
|
311,731,366 |
287,979,627 |
|
|
|
|
---------- |
---------- |
|
|
|
|
343,432,814 |
308,782,308 |
|
| Less:
Closing stock of work in process |
|
(31,769,675) |
(31,701,448) |
|
|
|
---------- |
---------- |
|
| Cost
of goods manufactured |
|
311,663,139 |
277,080,860 |
|
| Add:
Opening stock of finished goods |
|
15,085,404 |
7,262,168 |
|
|
|
|
---------- |
---------- |
|
| Cost
of goods available for sale |
|
326,748,543 |
284,343,028 |
|
| Less:
Closing stock of finished goods |
|
(11,468,939) |
(15,085,404) |
|
|
|
---------- |
---------- |
|
|
|
|
315,279,604 |
269,257,624 |
|
|
|
|
========== |
========== |
|
|
|
|
| 17.1
Material Consumed |
|
|
|
|
|
|
| Opening
stock |
|
|
27,206,192 |
28,103,275 |
|
| Purchases
during the year |
|
|
265,694,059 |
246,161,244 |
|
| Less:
Closing stock |
|
|
(28,648,510) |
(27,206,192) |
|
|
|
|
---------- |
---------- |
|
|
|
264,251,741 |
247,058,327 |
|
|
|
========== |
========== |
|
|
|
|
| 17.2
Factory Overheads |
|
|
|
|
|
|
| Salaries
Allowances & benefits |
|
|
9,537,845 |
8,741,722 |
|
| Bonus |
|
|
2,461,776 |
1,800,248 |
|
| Gratuity |
|
|
1,728,285 |
1,216,110 |
|
| Rent,
rates & taxes |
|
|
1,354,335 |
783,317 |
|
| Insurance |
|
|
679,853 |
580,672 |
|
| Power,
electricity, gas and water |
|
|
6,735,911 |
5,669,787 |
|
| Depreciation |
|
|
4,739,382 |
3,798,676 |
|
| Amortization |
|
|
506,896 |
324,782 |
|
| Repairs
& maintenance |
|
|
4,680,495 |
4,015,776 |
|
| Laboratory
expenses, research & |
|
|
| development |
|
|
571,159 |
709,875 |
|
|
|
|
---------- |
---------- |
|
|
|
|
32,995,937 |
27,640,965 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
1997 |
1996 |
|
|
|
|
Rupees |
Rupees |
|
| 18.
ADMINISTRATIVE EXPENSES |
|
|
|
|
|
| Salaries
Allowances & benefits |
|
|
7,346,598 |
6,323,592 |
|
| Bonus |
|
|
1,279,011 |
783,825 |
|
| Gratuity |
|
|
810,262 |
564,815 |
|
| Scholarship
and donations |
|
18.1 |
- |
40,000 |
|
|
|
|
|
| Travelling |
|
|
126,048 |
199,900 |
|
| Rent,
rates & taxes |
|
185,000 |
210,800 |
|
| Insurance |
|
|
247,656 |
288,770 |
|
| Depreciation |
|
1,149,110 |
1,020,064 |
|
| Amortisation |
|
149,395 |
134,200 |
|
| Entertainment |
|
50,442 |
42,097 |
|
| Legal
& professional |
|
202,950 |
239,900 |
|
| Printing,
stationery, books & periodicals |
|
411,382 |
236,049 |
|
| Postage,
telephone & telegraph |
|
215,005 |
273,083 |
|
| Repairs
& maintenance |
|
313,277 |
340,079 |
|
| Motor
vehicles expenses |
|
592,253 |
455,279 |
|
| Electricity |
|
|
258,199 |
272,004 |
|
| Auditors'
remuneration |
|
18.2 |
70,000 |
69,398 |
|
| Annual
general meeting expenses |
|
364,933 |
278,744 |
|
|
|
---------- |
---------- |
|
|
|
13,771,521 |
11,772,599 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
| 18.1
The directors or their spouses did not have any interest in the donee's fund. |
|
|
|
|
| 18.2
Auditors' Remuneration |
|
|
|
|
|
| Audit fee |
|
|
45,000 |
45,000 |
|
| Out
of pocket expenses & |
|
|
| Central
Excise duty |
|
|
25,000 |
24,398 |
|
|
|
|
---------- |
---------- |
|
|
|
70,000 |
69,398 |
|
|
|
========== |
========== |
|
| 19.
SELLING AND DISTRIBUTION EXPENSES |
|
| Salaries
Allowances & benefits |
|
4,924,642 |
4,037,759 |
|
| Bonus |
|
|
1,015,529 |
599,466 |
|
| Gratuity |
|
|
602,468 |
361,531 |
|
| Travelling
& daily allowances |
|
4,425,254 |
3,108,477 |
|
| Rent,
rates & taxes |
|
99,160 |
98,794 |
|
| Insurance |
|
|
633,742 |
394,936 |
|
| Depreciation |
|
1,149,110 |
1,020,064 |
|
| Amortisation |
|
117,150 |
70,000 |
|
| Entertainment |
|
119,978 |
90,054 |
|
| Postage,
telephone & telegraph |
|
1,368,604 |
1,137,695 |
|
| Printing,
stationery, books & periodicals |
|
646,011 |
527,514 |
|
| Repairs
& maintenance |
|
249,873 |
167,278 |
|
| Motor
vehicles expenses |
|
736,375 |
650,021 |
|
| Bank
charges |
|
191,259 |
86,260 |
|
| Sales
promotion, meeting & conferences |
|
2,034,722 |
2,002,683 |
|
| Legal
& professional |
|
1,283,252 |
885,211 |
|
| Scholarship
and donations |
|
21,514 |
117,300 |
|
|
|
|
---------- |
---------- |
|
|
|
|
19,618,643 |
15,355,043 |
|
| Advertisement
and artwork |
|
|
28,602,018 |
23,568,709 |
|
|
|
|
---------- |
---------- |
|
|
|
48,220,661 |
38,923,752 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
1997 |
1996 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| 20.
FINANCIAL EXPENSES |
|
|
|
|
|
|
| Mark-up
and interest on long term loans |
|
977,402 |
372,584 |
|
| Mark-up
and interest on short term loans |
|
6,851,338 |
7,194,551 |
|
| Excise
duty on loans |
|
335,068 |
387,526 |
|
| Bank
charges |
|
30,040 |
22,017 |
|
|
|
---------- |
---------- |
|
|
|
8,193,848 |
7,976,678 |
|
|
|
========== |
========== |
|
| 21.
OTHER INCOME |
|
|
|
|
|
|
| Export
rebate |
|
1,264,421 |
1,136,499 |
|
| Profit
on sale of fixed assets |
|
407,657 |
333,689 |
|
|
|
---------- |
---------- |
|
|
|
1,672,078 |
1,470,188 |
|
|
|
========== |
========== |
|
| 22.
TAXATION |
|
|
|
| Current
year |
|
2,030,436 |
1,900,000 |
|
| Last year |
|
- |
500,000 |
|
|
|
---------- |
---------- |
|
|
|
2,030,436 |
2,400,000 |
|
|
|
========== |
========== |
|
|
| The
company's income tax assessment upto the assessment year 1996-97 have been |
|
| finalised.
Appeals relating to assessment years 1990-91 to 1996-97 are pending for |
|
| hearing
before the concern appellate authorities. |
|
|
| 23.
REMUNERATION OF CHIEF EXECUTIVE, |
|
| DIRECTORS
AND OTHER EXECUTIVES |
|
|
|
CHIEF EXECUTIVE |
DIRECTORS |
EXECUTIVES |
|
|
|
1997 |
1996 |
1997 |
1996 |
1997 |
1996 |
|
|
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
|
|
| Basic
Salary |
282,600 |
267,230 |
972,000 |
883,295 |
1,977,780 |
1,163,850 |
|
|
|
|
|
| House rent |
|
127,200 |
120,t25 |
437,460 |
397,100 |
889,960 |
522,455 |
|
| Utilities |
|
28,200 |
26,645 |
97,020 |
88,085 |
197,510 |
125,519 |
|
| Bonus |
|
73,015 |
69,015 |
251,140 |
228,130 |
515,095 |
261,380 |
|
| Conveyance |
|
- |
- |
- |
- |
28,015 |
65,022 |
|
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
|
511,015 |
483,015 |
1,757,620 |
1,596,610 |
3,608,360 |
2,138,226 |
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
| Number
of persons |
1 |
1 |
4 |
4 |
14 |
8 |
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
|
|
| 23.1
In addition the Chief Executive and one Director are also provided with |
|
| the
free use of the company cars and residential telephones. A few |
|
| Executives
are also provided with free use of motor vehicles. |
|
|
|
|
| 24.
PLANT CAPACITY AND ACTUAL PRODUCTION (IN METRIC TONS) |
|
|
|
1997 |
|
1996 |
|
|
|
|
|
|
Installed |
Utilised |
Installed |
Utilised |
|
|
| On
Single Shift Basis |
|
|
|
|
|
|
|
|
|
| Spices |
3,900 |
3,210 |
3,500 |
2,940 |
|
|
|
|
| Pickles |
|
1,800 |
1,360 |
1,200 |
1,180 |
|
| On
Three Shift Basis |
|
| Salt |
|
15,000 |
11,150 |
15,000 |
13,590 |
|
|
| Production
capacity of spices have been increased due to the addition of one small |
|
| grinding
unit whereas increase in production capacity of pickles is because of |
|
| shifting
of plant from factory premises to the rented premises which has more space. |
|
|
| 25. GENERAL |
|
|
| 25.1
Figures have been rounded off to the nearest rupee. |
|
| 25.2
Corresponding figures of the previous year have been rearranged, where |
|
| necessary,
for the purpose of comparison. |
|
|
|
|
| Pattern
of Share Holding |
|
| as
at 30th June 1997 |
|
| FORM 34 |
|
|
| THE
COMPANIES ORDINANCE 1984 |
|
| (SECTION
236) |
|
|
|
|
| Number of |
Share Holdings |
Total |
|
|
| Shareholders |
From |
To |
Shares Held |
|
|
|
| 843 |
1 |
100 |
13,449 |
|
| 275 |
101 |
500 |
61,275 |
|
| 65 |
501 |
1,000 |
47,372 |
|
| 114 |
1,001 |
5,000 |
213,156 |
|
| 10 |
5,001 |
10,000 |
64,231 |
|
| 3 |
10,001 |
15,000 |
33,938 |
|
| 1 |
15,001 |
20,000 |
15,413 |
|
| 3 |
20,001 |
25,000 |
64,575 |
|
| 2 |
40,001 |
45,000 |
81,171 |
|
| 2 |
55,001 |
60,000 |
112,429 |
|
| 1 |
90,001 |
95,000 |
94,260 |
|
| 1 |
95,001 |
100,000 |
96,936 |
|
| 1 |
100,001 |
105,000 |
100,009 |
|
| 1 |
135,001 |
140,000 |
135,705 |
|
| 1 |
145,001 |
150,000 |
147,756 |
|
| 1 |
245,001 |
250,000 |
248,064 |
|
| 1 |
7551001 |
760,000 |
759,921 |
|
| 1 |
995,001 |
1,000,000 |
995,780 |
|
| ---------- |
|
---------- |
|
|
| 1,326 |
|
3,285,440 |
|
|
| ========== |
|
========== |
|
|
|
| CATEGORIES
OF |
|
NUMBER OF |
SHARES |
|
|
| SHAREHOLDERS |
|
SHARE HOLDERS |
HELD |
PERCENTAGE |
|
|
| 1.
INDIVIDUALS |
|
1,314 |
1,329,123 |
40.46 |
|
| 2.
INVESTMENT COMPANIES |
1 |
15,413 |
0.47 |
|
| 3.
INSURANCE COMPANIES |
|
1 |
135,705 |
4,130 |
|
| 4.
JOINT STOCK COMPANIES |
4 |
760,375 |
23,144 |
|
| 5.
FINANCIAL INSTITUTIONS |
1 |
995,780 |
30.31 |
|
| 6. MODARABA |
|
3 |
5,941 |
0.18 |
|
| 7.
FOREIGN INVESTORS |
|
- |
- |
- |
|
| 8.
CO-OPERATIVE SOCIETIES |
1 |
40,118 |
1.22 |
|
| 9.
CHARITABLE TRUSTS |
|
1 |
2,985 |
0.09 |
|
| 10. OTHERS |
|
- |
- |
- |
|
|
---------- |
---------- |
---------- |
|
|
1,326 |
3,285,440 |
100.00 |
|
|
========== |
========== |
========== |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
