| PIONEER CEMENT LIMITED |
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| ANNUAL
REVIEW 1997 |
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| Contents |
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| Corporate
Information |
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| Notice
of Meeting |
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| Chairman
s Review and Directors Report |
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| Pattern
of Shares Holding |
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| Auditors
Report |
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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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| Notes
to the Statement of Changes in Financial Position |
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| Notes
to the Accounts |
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| Form
of Proxy |
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| Corporate
Information |
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| BOARD
OF DIRECTORS |
|
| Malik
Manzoor Hayat Noon |
(Chairman) |
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| Javed
Ali Khan |
(Chief Executive) |
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| K.
Iqbal Talib |
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| Mohammad
Artwar Mir |
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| Dr.
Parvez Hassan |
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| Lt.
Col. (R) M. Bashir Ahmed |
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| Soren
Iversen (FLS) |
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| G.
M. Z. Khan (ADB) |
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| Khalid
A.Tanwri (NDFC) |
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| Rauf
Baksh Kadri (BE) |
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| MANAGEMENT |
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| Javed
Ali Khan |
Chief Executive |
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| Usman
Masud Khan |
Director Coordination |
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| Badruddin
Fakhri |
Director Finance |
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| 1.H. Shamsi |
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Financial Advisor |
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| Talat
Saeed Khan |
General Manager Marketing |
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| Javed Ellahi |
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General Manager Works |
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| Nurul lbad |
|
Deputy General Manager |
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| SECRETARY |
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| Syed
Anwar Ali |
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| AUDITORS |
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| Anjum
Asim Shahid & Company, Chartered Accountants |
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| LEGAL
ADVISERS |
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| Hassan
& Hassan (Advocates) |
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| BANKERS |
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| Bank
A1-Habib |
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| Habib
Bank Limited |
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| Citi Bank |
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| Habib
Bank AG Zurich |
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| National
Bank of Pakistan |
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| National
Development Finance Corporation |
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| Standard
Chartered Bank |
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| United
Bank Limited |
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| Muslim
Commercial Bank Ltd. |
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| Crescent
Investment Bank Ltd. |
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| REGISTERED
OFFICE |
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| 1st
Floor, Alfalah Building, Shahtab-e- Quaid-e-Azam, Lahore. |
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| SHARES
DEPARTMENT |
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| Registrars: |
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| Ford,
Rhodes, Robson, Morrow, |
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| 12-A,
First Floor, Writers Chamber, |
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| Mumtaz
Hassan Road, Karachi. |
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| Ph: 2427497. |
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| KARACHI
OFFICE |
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| Lakson
Square, Building No. 3, Satwar Shaheed Road, Karachi. Ph: 5685052-4. |
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| SALES
OFFICES |
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| Lahore
Office: |
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| 30-Baber
Block, New Garden Town. |
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| Telephone
No: 5867270-71 |
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| Faisalabad
Office: |
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| 103-C,
Peoples Colony. |
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| Telephone
No: 710051 |
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| Sargodha
Office: |
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| 66/9
Civil lines, Kutchery Road, |
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| Sargodha.
Telephone No: 724003 |
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| Factory |
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| Chenki,
District Khushab. Telephone No: 0454-720832 |
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| Notice
of Annual General Meeting |
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| Notice
is hereby given that the 11 th Annual General Meeting of the Members of
Pioneer Cement Limited will be |
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| held
at 66-67 Garden Block, New Garden Town, Lahore on Wednesday tile 31st
December, 1997 at 11.00 a.m |
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| to
transact the following business. |
|
|
| 1.
To confirm the minutes of the Annual General Meeting held on 31 st December,
1996. |
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| 2.
To receive, consider and adopt the audited accounts for the year ended 30th
June, 1997 and reports of the |
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| directors
and the auditors thereon. |
|
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| 3.
To appoint auditors for the ensuing period and fix their remunerations. |
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| 4.
To transact any other business as may be placed before the meeting with
permission of the Chairman. |
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| Notes: |
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| i)
The share transfer books of the Company shall remain closed on 30th December,
1997 and 31st |
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| December,
1997. |
|
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| ii)
A member entitled to attend, speak and vote at this meeting may appoint
another member as proxy to |
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| attend,
speak and vote on his/her behalf. Proxies in order to be effective must be
received at the |
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| Registered
Office of the Company not later than 48 hours before the meeting. |
|
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| iii)
The members are requested to notify change in their address, if any, to the
Company s Registrars, i.e. |
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| M/s.
Ford, Rhodes, Robson, Morrow, 12-A, First Floor, Writers Chambers, Mumtaz
Hasan Road, Karachi. |
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| Chairman
s Review & Directors Report |
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| It
gives me great pleasure to present the annual report and the audited accounts
of the Company for the financial |
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| year
ended on 30th June 1997 on behalf of the Board of Directors. |
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|
| General |
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| The
year under review was a difficult year for the nation as the economy was
characterised by low output, |
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| inflationary
pressures, stagnation in exports, continued budget deficit of the government,
decline in investment |
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| and
balance of payment difficulties. The GDP growth of 4.6% achieved in the
preceding year could not be |
|
| sustained
and declined to 3.1%. If the population growth rate is taken into account,
the rate of growth in GDP is |
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| very
nominal and did not bring any improvement in per capita income. The sharp
decline in GDP growth rate |
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| occurred
mainly due to decline in agricultural and industrial production. The output
of all the major agricultural |
|
| crops
declined by 4.5%. Cotton output alone declined by 11.5% and that of sugar
cane and wheat by 7.2% and |
|
| 1.5%
respectively. Similarly, output in large scale manufacturing sector declined
by 1.4% while exports declined |
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| by
2.7%. The level of imports also declined by 5% due to slowing down of
economy. The investment activity in |
|
| the
private sector did not pick up as was expected with the change of a new
elected government in February |
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| 1997.
The stock exchange also remained depressed most of the year and the Karachi
Stock Exchange index |
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| came
down from 1677 in July 1996 to 1566 on 30th June 1997. The continued
budgetary gap induced the |
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| government
to curtail its development programmes which drastically affected the cement
sector. The per capita |
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| consumption
of cement in Pakistan continues to remain low at 70 kg as against 144 kg in
40 other countries |
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| with
a similar per capita income. |
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|
| Production |
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| The
Company was able to produce clinker amounting to 649,354 tons as against
634,823 tons in the preceding |
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| year.
The cement production however, increased marginally to 688,109 tons as
against 687,458 tons in the |
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| preceding
year. During the year under review, the plant operation remained satisfactory
and it operated at a |
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| capacity
of 108%. |
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|
1996-97 |
1995-96 |
Increase |
|
|
(Tons) |
(Tons) |
(Tons) |
|
|
|
|
| Clinker
Production |
|
649,354 |
634,823 |
14,531 |
|
| Cement
Production |
|
688,109 |
687,458 |
651 |
|
| Capacity
Utilisation |
|
108% |
106% |
2% |
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|
| Sales |
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| Due
to slow down of economic activity and the increase in the supply of cement,
the prices of cement remained |
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| under
pressure throughout the year. It came down from R8.3,900/- per ton in July
1996 to as low as Rs.3,140/- per |
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| ton
in June 1997. The Company was however, able to maintain its market share and
sold 678,528 tons as against |
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| 679,891
tons in the preceding year. The nominal drop in sales volume was mainly due
to holding of general elections |
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| unexpectedly
in February 1997 which caused uncertainty and dampened the investment climate
to a great extent. |
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|
| Sulphate
Resistant Cement |
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| During
the year under review, the company was able to launch Sulphate Resistant
Cement (SRC) in the market in |
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| the
month of March 1997. The initial response to SRC by the general consumers has
been quite encouraging and |
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| the
product leeds aggressive marketing to bring a change in consumer s
preferences. The problem of salinity in |
|
| Punjab
can I be overcome by the extensive use of SRC. PCL is the only company who
has launched SRC in Punjab |
|
| and
SRC will no longer be transported from South. The company intends to maximise
its revenues through |
|
| increased
sale of SRC. |
|
|
| Production
Cost |
|
| The
cement industry continued to remain a milking cow for the government in its
efforts to maximise its revenues. |
|
| The
industry remains the most heavily taxed industry in the whole Asian region.
Fuel Oil, Electricity and Paper |
|
| Bags
are the three main components which constitutes nearly 64% of production cost
of your company. Persistent |
|
| devaluation
of rupee during the year resulted in increasing the prices of these three
inputs exorbitantly as |
|
| explained
below: |
|
|
| Furnace Oil |
|
| As
against average landed price of Rs.3,488 recorded during 1995-96, the average
landed price escalated to |
|
| Rs.5,903
per ton, inflating cost of production from Rs.269 per ton to Rs.454 per ton
with additional impact as high |
|
| as
Rs. 127 million on the cost of production. |
|
|
| Electricity |
|
| Electricity
tariff also escalated heavily in as much as average rate/kwh increased from
Rs.2.51/kwh to |
|
| Rs.3.76/kwh.
Cost of production went up from Rs.274 per ton to Rs.389 per ton. The
management was however |
|
| able
to save on electricity consumption from 107.20 kwh per ton to 103.50 kwh per
ton resulting a saving of Rs. |
|
| 13.91
kwh per ton. The cost of production went up by Rs. 91 million during 1996-97
on account of increase in |
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| power
tariff inspire of saving of Rs.7 million achieved in electricity consumption. |
|
|
| Packing
Material |
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| The
average price of packing material increased from Rs. 11.57 per bag to
Rs.13.06 per bag, inflating cost of sales |
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| from
Rs.233 per ton to Rs.264 per ton with annual impact of Rs.20 million. |
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|
| Profitability |
|
| The
Profitability of the company remained under severe pressure due to declining
cement prices and the rising cost of |
|
| inputs.
During the year under review, the gross profit of the company declined
sharply to Rs.70.9 million as against |
|
| Rs.406.1
million in the preceding year. The administrative and general expenses
remained under control and declined to |
|
| 3.8%
of sales revenue from 4.5% sales in the preceding year. The selling and
distribution expenses also remained at the |
|
| level
of 2.2% of sales as against 1.8% in the preceding year. The company incurred
an operating loss of Rs.2.8 million |
|
| which
turned into a total loss of Rs.293.9 million after accounting for the
financial expenses of Rs.260.35 million. It |
|
| would
be pertinent to mention here that the loss was mainly due to the cumulative
effect of fall in prices of cement and |
|
| rise
in the price of furnace oil, electricity and paper bag respectively on which
the company had no control whatsoever. |
|
| The
incidence of these factors was as high as Rs.295 million on the profitability
of the company. |
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|
|
|
|
Financial Impact |
|
|
|
|
Rs./million |
|
| Fall
in Net Sales Revenue |
|
57 |
|
| Rise
in Furnace Oil Prices |
|
127 |
|
| Rise
in Power Tariff |
|
|
91 |
|
| Risc
in Packing Material Prices |
|
20 |
|
| Total |
|
|
295 |
|
|
| The
management has no control on external factors which affect profitability but
it is making all out efforts to |
|
| improve
the profitability of the Company by taking the following measures: |
|
|
| 1.
Promotion of Sulphate Resistant Cement in the Northern areas through
publicity. This will help the company in |
|
| improving its margins. |
|
| 2.
Reducing the overhead and other indirect manufacturing expenses. |
|
| 3.
Energy conservation measures by some modifications in the plant at nominal
cost. |
|
| 4.
Appeal to the Government to reduce the existing Excise Duty from 40% to 25%. |
|
| 5.
Stabilizing the cement prices with the active cooperation of all the cement
producers in the Central Punjab. |
|
|
| Financial
Restructuring |
|
| The
cash flow of the company remained under severe pressure despite that it was
able to make payments to Development |
|
| Financial
Institutions (DFI) to the extent of Rs. 131 million. Industrial Development
Bank of Pakistan (IDBP), Asian Finance |
|
| Investment
Corporation (AFIC) and Saudi Pal< Industrial and Agricultural Investment
Company (Pvt.) Limited (SAPICO) |
|
| have
agreed on a new rescheduling arrangement which gives some relief to the
company on the basis of monthly |
|
| repayments.
Asian Development Bank (ADB) had already approved rescheduling which is
awaiting documentation. Bankers |
|
| Equity
(BE) and National Development Finance Corporation (NDFC) have also been
approached with the request to accept |
|
| monthly
repayment plan in line with the cash flows of the company. The auditors in
their report have indicated that despite |
|
| achieving
optimum operational efficiency the funds generated for operations are not
sufficient to cover financial charges. |
|
|
| The
Company is confident that like IDBP which have reduced mark-up to 10% per
annum from 18%, other DFIs will |
|
| also
consider reducing their mark-up while finalising restructuring of loans. |
|
|
| Capitalisation
of Exchange Cover Fee |
|
| The
auditors are of the opinion that in the light of a technical release issued
by the Institute of Chartered Accountants |
|
| of
Pakistan, the foreign exchange cover fee should be charged to Profit &
Loss Account. 1towever, as per the legal |
|
| opinion
sought by the company with reference to the International Accounting Standard
No.23, the company can |
|
| continue
to capitalize foreign exchange cover fee payable to State Bank of Pakistan
against foreign currency loans. |
|
|
| Additional
Mark-up |
|
| The
auditors are of the opinion that since financial restructuring with the DFIs
is still in process and the original |
|
| schedules
of loans have not been revised, additional mark up (penal interest) provided
in the loan agreements with |
|
| the
DFIs for late payment of instalments should be charged to the accounts. The
contention of the management is |
|
| that
since it was in principle agreed with all the DFIs that no penal
interest/additional mark-up will be charged on |
|
| restructuring
of loans, the same has not been charged in the accounts. |
|
|
| The
contention of the management has been further strengthened by the fact that
no penal interest has been taken |
|
| into
account by ADB and AFIC and no additional mark-up has been taken into account
by IDBE while restructuring |
|
| their
respective loans. |
|
|
| Future
Outlook |
|
| The
much awaited relief package for the cement industry could not bail it out
from its financial crisis as the |
|
| resultant
benefit of Rs.50/- per bag was taken away by a persistent reduction in cement
prices. Cement is a basic |
|
| input
to the development of infrastructure and the incidence of 40% excise duty is
very high in Pakistan which |
|
| discourages
extensive use of cement in rural areas. The All Pakistan Cement Manufacturers
Association and the |
|
| management
of your company has appealed to the Government to reduce excise duty and
bring it par with other |
|
| neighbouring
countries and rationalise the import duty structure on the import of paper
bags and furnace oil. |
|
|
| The
over supply situation in the cement industry is likely to persist for another
two to three years. During this period, the |
|
| Company
intends to maximise its revenues by sale of SRC and adopting cost saving
devices in its plant operations. The |
|
| new
investment policy announced by the Government has paved the way for increased
foreign private investment in the |
|
| country.
The domestic private sector has also been extended a new deal in the shape of
various reforms packages. The |
|
| physical
investment which has remained shy for the last three successive years is
likely to pick up and accelerate in the |
|
| coming
year. The recession in cement sector is a temporary phenomenon and once the
GNP shows distinct signs of |
|
| acceleration
and uplift, then equilibrium will prevail and bring about stable economic
conditions. The company is hopeful |
|
| that
it will tide over its current difficulties and will be able to provide a good
return to its shareholders. |
|
|
| Acknowledgment |
|
| The
Directors would like to express heartiest thanks to the Directors of Asian
Development Bank, Asian Finance & |
|
| Investment
Corporation Limited and Industrial Development Bank of Pakistan who have
restructured their loans. |
|
| The
Directors would also like to express sincere thanks to National Development
Finance Corporation, Bankers |
|
| Equity
Limited and Saudi Pak Agricultural and Investment Co. (Pvt.) Limited, who
have been considering the |
|
| financial
restructuring facility and hope to approve the same in the near future. |
|
|
| Thanks
are also due to Nissho Iwai Corporation who have extended full cooperation to
the company. Thanks are |
|
| also
due to Crescent Investment Bank Limited and Pak Libya Holding Co. Ltd., for
their cooperation and continued |
|
| financial
support to the company. |
|
|
| The
Directors also appreciate the strenuous efforts made by the distributors and
employees of the company for |
|
| producing
best possible results remaining within the crisis situation prevailing in the
cement sector. It is hoped |
|
| that
they will continue to work with the same zeal and spirit witnessed so far. |
|
|
| Pattern
of Shareholdings as at 3une 30, 1997 |
|
|
|
Number |
of |
Shares |
Number of |
Number of |
Percentage of |
|
|
From |
|
To |
Share Holders |
Shares Held |
Issued Capital |
|
|
|
1 |
|
100 |
659 |
41,157 |
0.04 |
|
|
101 |
|
500 |
3028 |
1,166,230 |
1.22 |
|
|
501 |
|
1000 |
3699 |
2,859,522 |
3.00 |
|
|
1001 |
|
5000 |
3056 |
6,825,990 |
7.15 |
|
|
5001 |
|
10000 |
426 |
3,045,895 |
3.19 |
|
|
10001 |
|
15000 |
113 |
1,382,245 |
1.13 |
|
|
15001 |
|
20000 |
52 |
926,974 |
0.97 |
|
|
20001 |
|
25000 |
35 |
801,054 |
0.84 |
|
|
25001 |
|
30000 |
16 |
441,171 |
0.46 |
|
|
30001 |
|
35000 |
8 |
255,242 |
0.27 |
|
|
35001 |
|
40000 |
9 |
338,854 |
0.36 |
|
|
40001 |
|
45000 |
3 |
130,422 |
0.14 |
|
|
45001 |
|
50000 |
8 |
392,994 |
0.41 |
|
|
50001 |
|
55000 |
3 |
160,113 |
0.17 |
|
|
55001 |
|
60000 |
3 |
168,650 |
0.18 |
|
|
60001 |
|
65000 |
8 |
489,114 |
0.51 |
|
|
65001 |
|
70000 |
1 |
67,500 |
0.07 |
|
|
70001 |
|
75000 |
1 |
72,500 |
0.08 |
|
|
75001 |
|
80000 |
1 |
77,000 |
0.08 |
|
|
80001 |
|
85000 |
3 |
247,121 |
0.26 |
|
|
85001 |
|
90000 |
1 |
89,960 |
0.09 |
|
|
90001 |
|
95000 |
1 |
90,620 |
0.09 |
|
|
95001 |
|
100000 |
1 |
97,800 |
0.10 |
|
|
105001 |
|
110000 |
1 |
108,744 |
0.11 |
|
|
110001 |
|
115000 |
1 |
112,154 |
0.12 |
|
|
115001 |
|
120000 |
1 |
117,818 |
0.12 |
|
|
120001 |
|
125000 |
3 |
365,902 |
0.38 |
|
|
125001 |
|
130000 |
1 |
126,220 |
0.13 |
|
|
165001 |
|
170000 |
1 |
166,995 |
0.17 |
|
|
195001 |
|
200000 |
1 |
200,000 |
0.21 |
|
|
210001 |
|
215000 |
1 |
214,288 |
0.22 |
|
|
260001 |
|
265000 |
1 |
263,700 |
0.28 |
|
|
300001 |
|
305000 |
1 |
303,435 |
0.32 |
|
|
330001 |
|
335000 |
1 |
334,500 |
0.35 |
|
|
335001 |
|
340000 |
1 |
337,997 |
0.35 |
|
|
395001 |
|
400000 |
1 |
398,900 |
0.12 |
|
|
560001 |
|
565000 |
1 |
560,445 |
0.59 |
|
|
590001 |
|
595000 |
1 |
590,831 |
0.62 |
|
|
600001 |
|
605000 |
4 |
2,416,540 |
2.53 |
|
|
910001 |
|
915000 |
1 |
910,641 |
0.95 |
|
|
1520001 |
|
1525000 |
1 |
1,520,694 |
1.59 |
|
|
1630001 |
|
1635000 |
1 |
1,631,981 |
1.71 |
|
|
1870001 |
|
1875000 |
1 |
1,872,486 |
1.96 |
|
|
2415001 |
|
2420000 |
1 |
2,416,791 |
2.5:5 |
|
|
3830001 |
|
3835000 |
1 |
3,832,636 |
4.02 |
|
|
4090001 |
|
4095000 |
1 |
4,090,145 |
4.29 |
|
|
4145001 |
|
4150000 |
1 |
4,148,996 |
4.35 |
|
|
6125001 |
|
6130000 |
1 |
6,129,098 |
6.42 |
|
|
7695001 |
|
7700000 |
1 |
7,700,000 |
8.07 |
|
|
34395001 |
|
34400000 |
1 |
34,397,035 |
36.04 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| Total:- |
|
|
11,167 |
95,437,100 |
100.00 |
|
| ========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
| Categories
of Shareholders as at June 30, 1997 |
|
|
| Categories
of Shareholders |
Number |
Shares Held |
Percentage |
|
| Individuals |
|
11105 |
59,808,139 |
62.67 |
|
| Modaraba
Companies |
|
12 |
177,130 |
0.19 |
|
| Investment
Companies |
|
9 |
12,434,428 |
13.03 |
|
| Banks |
|
24 |
11,748,374 |
12.31 |
|
| Joint
Stock Companies |
|
14 |
11,141,136 |
11.67 |
|
| Insurance
Companies |
|
3 |
127,893 |
0.13 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| Total:- |
|
11,167 |
95,437,100 |
100.00 |
|
| ========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
| Auditors
Report to the Members |
|
| We
have audited the annexed balance sheet of Pioneer Cement 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: |
|
|
| 1.
The company has recorded a loss of Rs.293,542,370 for the year before
taxation and its gross margin has reduced |
|
| substantially
during the year. As of the balance sheet date, the company s current
liabilities exceed its current assets |
|
| significantly
and its debt equity ratio has further deteriorated during the year. Despite
achieving optimum operational |
|
| efficiency,
the funds generated from operation are not even sufficient to cover the
financial charges for the year. These |
|
| accounts
have been prepared on going concern basis, the validity of which is largely
dependent on the ability of the |
|
| company
to generate enough funds to pay off its outstanding financial obligations,
restructure its short term and long term |
|
| liabilities
and to raise additional equity. The accounts do not include any adjustments
that might be necessary should the |
|
| company
not be able to continue as a going concern.' |
|
|
| 2.
The company has capitalized exchange risk fee amounting to Rs. 79,466,162
(1996: 77,637,375) as detailed in note 11.1 to |
|
| the
accounts. However, Technical Release No.24 of the Institute of Chartered
Accountant of Pakistan read with the |
|
| provisions
of International Accounting Standard No.23 requires such fee to be charged to
the profit and loss account after |
|
| the
commencement of commercial production. Had the fee been recognized as an
expense, the loss for the year would had |
|
| been
higher by Rs. 70,836,995 after taking into account depreciation of Rs
8,629,167(1996:5,443,779) and accumulated |
|
| losses
would have increased by Rs. 201,937,673 (1996:Rs. 131,100,682). |
|
|
| 3.
The company has incorporated financial charges without taking into account
certain additional markup/penal interest on |
|
| overdue
instalments of long term loans and redeemable capital aggregating Rs.
203,009,198 (1996: Rs. 70,000,000) as per |
|
| the
loan agreements on the plea that its proposals for restructuring of loans are
pending with banks and development |
|
| financial
institutions (DFI) and that these proposals are based on rebated instalments.
The company has further not |
|
| accounted
for liquidated damages amounting to Rs. 47,980,000 claimed by one DFI on
over-due instalments. Pending the |
|
| approval.
of the restructuring proposals by such financial institutions, we are of the
opinion that the company should have |
|
| accounted
for additional markup/penal interest amounting of Rs. 250,989,198 as per the
original loan agreements, which if |
|
| provided
would have the effects of increasing the loss by Rs. 250,989,198. These
financial institutions have also not |
|
| (confirmed
to us the outstanding balances as at the balance sheet date. |
|
|
|
|
| Except
for the financial effects of the foregoing paras 1 to 3 above and the extent
to which these may affect the financial |
|
| results
of the company, we report 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, profit & loss account and the statement of changes in
financial position 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 the accounting policies,
consistently applied; |
|
| ii.
the expenditure incprred 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)
subject to the matters stated in paras 1 to 3 above, in our opinion and to
the best of our information and according to |
|
| the
explanations given to us, the balance sheet, profit & 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
companies affairs as at June 30, |
|
| 1997
and of the loss and the changes in financial statement for the year then
ended; and |
|
| d)
in our opinion no Zakat was deductible at source under the zakat and Ushr
Ordinance, 1980. |
|
|
| Balance
Sheet |
|
| as
at June 30, 1997 |
|
|
|
|
1997 |
1996 |
|
|
Note |
Rupees |
Rupees |
|
|
| CAPITAL
AND LIABILITIES |
|
|
| SHARE
CAPITAL |
|
2 |
954,371,000 |
818,000,000 |
|
| RIGHT
SHARE MONEY DEPOSIT |
|
- |
93,181,630 |
|
| ACCUMULATED
PROFIT/(LOSS) |
|
(239,095,701) |
54,840,043 |
|
|
|
|
715,275,299 |
966,021,673 |
|
| REDEEMABLE
CAPITAL |
|
3 |
136,736,507 |
165,727,388 |
|
| LONG
TERM LOANS |
|
4 |
1,313,613,240 |
1,494,367,926 |
|
| LIABILITIES
AGAINST ASSETS |
|
|
| SUBJECT
TO FINANCE LEASE |
|
5 |
15,333,901 |
6,586,092 |
|
|
|
|
| DEFERRED
LIABILITIES |
|
6 |
120,497,551 |
199,903,003 |
|
| LONG
TERM DEPOSITS |
|
|
|
