| First Tri-Star Modaraba |
|
|
|
|
|
|
| (Annual
Report 1997) |
|
|
|
| Contents |
|
|
| Board
of Directors |
|
| Directors' Report |
|
| Auditors' Report |
|
| Balance
Sheet |
|
|
| Profit
& Loss Account |
|
|
| Cash Flow Statement |
|
| Notes
to the Accounts |
|
| Pattern
of Certificate Holdings |
|
|
|
|
|
| Board
of Directors |
|
|
| DIRECTORS
OF MODARABA COMPANY |
|
|
| MR.
MOHAMMED AHMAD ISMAlL |
|
| Chairman
& Chief Executive |
|
|
| MR.
RASHID AHMAD |
|
| MR.
TAHIR AHMAD |
|
| MR.
ASAD AHMAD |
|
|
| AUDITORS |
|
| HYDER
BHIMJI & CQ |
|
| CHARTERED
ACCOUNTANTS |
|
|
| BANKERS |
|
| BANK
AL-HABIB LTD. |
|
| CITIBANK
N.A. |
|
| HABIB
BANK LTD. |
|
|
| REGISTERED
OFFICE |
|
| F/498,
S.I.T.E., |
|
| P.O.
Box 3683, |
|
| Karachi-75700. |
|
|
| MANAGEMENT
COMPANY |
|
| A.R.T.
Modaraba Management (Pvt) Ltd. |
|
|
|
|
|
Report of the Directors |
|
|
of |
|
|
A.R.T. Modaraba Management (Pvt) Ltd. |
|
|
For the year ended June 30, 1997. |
|
|
| The
Board of Directors of A.R.T.. Modaraba Management (Pvt) Ltd., present the 7th
Annual Report of First Tri-Star |
| Modaraba
together with Audited Accounts for the year ended June 30, 1997. |
|
|
| 1.
FINANCIAL RESULTS |
|
|
| Financial
results are summarized as follows: |
|
|
|
1997 |
1996 |
|
|
|
(Rupees in 000's) |
|
|
| Total
Operating (Loss)/Income |
|
|
(2,367) |
17,447 |
|
| Less:
Total Operating Expenses |
|
|
(4,318) |
4,300 |
|
|
|
|
---------- |
---------- |
|
| Operating
(Loss)/Profit |
|
|
(6,685) |
13,147 |
|
| Less:
Modaraba Company's Management Fee |
|
-- |
626 |
|
|
|
|
---------- |
---------- |
|
| (Loss)/Profit
before Taxation |
|
|
(6,653) |
12,521 |
|
| Provision
for Taxation |
|
|
-- |
(309) |
|
|
|
|
---------- |
---------- |
|
| (Loss)/Profit
after Taxation |
|
|
(6,653) |
12,830 |
|
| Unappropriated
profit brought forward |
|
12,098 |
1,843 |
|
|
|
|
---------- |
---------- |
|
|
|
|
5,445 |
14,673 |
|
| Appropriation: |
|
|
|
|
| Transfer
to Statutory Reserve |
|
|
-- |
2,575 |
|
|
|
|
---------- |
---------- |
|
| Un-appropriated
Profit carried forward |
|
5,445 |
12,098 |
|
|
========== |
========== |
|
|
|
|
| 2.
DIVIDEND |
|
|
|
|
|
| The
Board in its meeting held on December 31, 1997 has not recommended any
Dividend this year. |
|
| 3.
BUSINESS |
|
| Your
Modaraba has continued business in Trading and Investment. The business as a
whole is reducing |
|
| in
all segments and its difficult to predict when it will pick up again |
|
|
| 4.
FUTURE PROSPECTS |
|
|
| Future
prospects are very much uncertain. The general economic conditions do not
permit to forecast |
|
| anything
accurately. There are no indications for optimism. We can only hope any pray
that the situation |
|
| will
change for the better. |
|
|
| 5.
BOARD OF DIRECTORS |
|
|
| The
present Board of Directors assumed their office with effect from February 16,
1997 for 3 years. |
|
|
| 6.
AUDITORS |
|
|
| The
present auditors M/s. Hyder Bhimji & Co., are due for retirement and
being eligible offer themselves |
|
| for
reappointment for the year ending June 30, 1998. |
|
|
| 7.
ACKNOWLEDGMENTS |
|
|
|
|
| The
Board would like to place on record its appreciation of hard work of the
staff responsible for the |
|
| Modaraba's
affairs. |
|
|
| Karachi:
the December 31, 1997. |
|
|
|
| Auditors'
Report to the Certificate Holders |
|
|
| We
have audited the annexed Balance Sheet of FIRST TRI-STAR MODARABA which are
representation of |
|
| Modaraba
Company's [A.R.T. MODARABA MANAGEMENT (PVT) LTD.] as at June 30, 1997 and the
related profit |
|
| and
loss account and cash flow statement together with the notes forming part
thereof, for the year then ended |
| and
we state that we have obtained all the information and explanations which to
the best of our knowledge and |
| belief
were necessary for the purpose of our audit and after due verification
thereof, we report that: |
|
|
| (a)
in our opinion proper books of accounts have been kept by the Modaraba
Company in respect of First Tri- |
| Star
Modaraba as required by the Modaraba Companies and Modaraba (Floatation and
Control) Ordinance, |
|
| 1980
and Modaraba Companies and Modaraba Rules, 1981. |
|
|
|
|
| (b) in our opinion: |
|
|
| (i)
the Balance Sheet and the Profit and Loss Account together with the notes
thereon have been drawn |
|
| up
in conformity with the Modaraba Companies and Modaraba (Floatation and
Control) Ordinance, |
|
| 1980
and Modaraba Companies and Modaraba Rules, 1981; and |
|
|
| (ii)
the expenditure incurred during the year was for the purpose of the
Modaraba's business; and |
|
|
| (iii)
the business conducted, investments made and expenditure incurred by the
Modaraba are in |
|
| accordance
with the objects, terms and conditions of the Modarabra. |
|
|
| (c)
in our opinion and to the best of our information and according to the
explanations given to us, the Balance |
| Sheet
and the related Profit and Loss Account and Cash Flow Statement, together
with the notes give the |
|
| information
required by the Modaraba Ordinance, 1980 and Modaraba Rules, 1981 in the
manner so |
|
| required
and respectively give a true and fair view of the state of Modaraba's affairs
as at June 30, 1997 |
|
| and
of the loss and the cash flow statement for the year then ended; and |
|
|
| (d)
in our opinion no Zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
|
|
|
|
Sd/- |
|
|
|
HYDER BHIMJI & CO. |
|
| Karachi:
the December 3, 1997. |
|
Chartered Accountants |
|
|
|
| Balance
Sheet As At June 30,1997 |
|
|
|
|
|
|
Note |
1997 |
1996 |
|
|
|
|
No. |
Rupees |
Rupees |
|
| AUTHORISED
FUND |
|
| 20,000,000
Modaraba Certificates |
|
| of Rs.10/- each |
|
|
200,000,000 |
200,000,000 |
|
|
|
========== |
========== |
|
| ISSUED,
SUBSCRIBED AND PAID-UP FUND |
|
| 14,080,000
Modaraba Certificates |
|
| of Rs. 10/- each |
|
|
3 |
140,800,000 |
140,800,000 |
|
| RESERVE
AND SURPLUS |
|
| General
Reserve |
|
|
10,000,000 |
10,000,000 |
|
| Statutory
Reserve |
|
|
8,130,000 |
8,130,000 |
|
| Unappropriated
profit |
|
|
5,445,041 |
12,098,066 |
|
|
|
|
----------- |
----------- |
|
|
|
|
23,575,041 |
30,228,066 |
|
|
|
|
----------- |
----------- |
|
|
|
|
164,375,041 |
171,028,066 |
|
| LONG
TERM LIABILITY |
|
|
|
| Lease Security Deposits |
|
-- |
261,068 |
|
| CURRENT
LIABILITIES |
|
| Short
Term Borrowings |
|
4 |
4,883,456 |
37,079,041 |
|
| Creditors, Accrued and
Other Liabilities |
5 |
41,079 |
1,643,550 |
|
|
| Unclaimed Profit Distribution |
|
821,303 |
1,941,285 |
|
|
----------- |
----------- |
|
|
|
5,745,838 |
40,663,876 |
|
|
|
---------- |
---------- |
|
|
|
170,120,879 |
211,953,010 |
|
|
========== |
========== |
|
| TANGIBLE
FIXED ASSETS |
|
|
| Leased
out Assets |
|
6 |
-- |
733,981 |
|
| Operating
Assets in own use |
|
7 |
531,687 |
630,949 |
|
|
---------- |
---------- |
|
|
|
531,687 |
1,364,930 |
|
|
========== |
========== |
|
| INVESTMENTS |
|
|
| In Shares |
|
|
8 |
139,023,473 |
156,895,420 |
|
| in
N.I.T. Units |
|
|
|
582,868 |
582,868 |
|
|
|
|
|
|
|
|
|
|
139,606,341 |
157,478,288 |
|
| CURRENT
ASSETS |
|
| Trading
Stock |
|
|
9 |
2,092,228 |
28,841,357 |
|
| Trade
Debts (Unsecured considered good) |
|
24,372,858 |
23,883,308 |
|
| Advances,
Pre-payments and other Receivables |
10 |
2,854,197 |
38,394 |
|
| Cash
and Bank Balances |
|
|
11 |
663,568 |
346,733 |
|
|
---------- |
---------- |
|
|
|
|
29,982,851 |
53,109,792 |
|
|
|
|
---------- |
---------- |
|
|
|
|
169,589,192 |
210,588,080 |
|
|
---------- |
---------- |
|
|
|
|
170,120,879 |
211,953,010 |
|
|
|
========== |
========== |
|
| Note:
The annexed notes form an integral part of these accounts. |
|
|
|
|
|
|
| Profit
and Loss Account |
|
| For
the year ended June 30, 1997 |
|
|
|
1997 |
1996 |
|
|
|
Note |
Rupees |
Rupees |
|
|
|
|
|
|
| Operating
(Loss)/Income |
|
12 |
(2,367,418) |
17,447,551 |
|
| (Add)/Less:
Operating Expenses |
|
13 |
1,277,716 |
2,245,476 |
|
| Financial
charges |
|
14 |
3,040,491 |
2,054,287 |
|
|
|
(4,318,207) |
4,299,763 |
|
|
|
---------- |
---------- |
|
|
|
(6,685,625) |
13,147,788 |
|
| Modaraba
Company's Management Fee |
|
|
-- |
(626,085) |
|
|
|
---------- |
---------- |
|
|
|
(6,685,625) |
12,521,703 |
|
| Prior
Year Adjustment |
|
|
32,600 |
-- |
|
|
|
---------- |
---------- |
|
| (Loss)/Profit
before Taxation |
|
(6,653,025) |
12,521,703 |
|
| Provision
for Taxation |
|
|
-- |
(308,746) |
|
|
|
---------- |
---------- |
|
| (Loss)/Profit
after Taxation |
|
(6,653,025) |
12,830,449 |
|
| Un-appropriated
profit brought forward |
|
12,098,066 |
1,842,617 |
|
|
|
---------- |
---------- |
|
| Profit
available for appropriation |
|
5,445,041 |
14,673,066 |
|
| Appropriation: |
|
|
|
|
| Transfer
to Statutory Reserve |
|
-- |
2,575,000 |
|
|
|
---------- |
---------- |
|
| Un-appropriated
profit carried forward |
|
5,445,041 |
12,098,066 |
|
|
|
========== |
========== |
|
|
| Note:
The annexed notes form an integral part of these accounts. |
|
|
| MOHAMMED
AHMAD ISMAlL |
|
ASAD AHMAD |
|
TAHIR AHMAD |
|
| Chief
Executive |
|
Director |
|
Director |
|
| ART.
Modaraba |
|
A.R.T. Modaraba |
|
A.R.T. Modaraba |
|
| Management
(Pvt) Ltd. |
|
Management (Pvt) Ltd. |
Management (Pvt) Ltd. |
|
|
|
| Cash
Flow Statement |
|
| For
the year ended June 30, 1997 |
|
|
|
|
|
1997 |
1996 |
|
|
|
Note |
Rupees |
Rupees |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
|
| Profit
before Taxation |
|
|
(6,653,025) |
12,521,703 |
|
| Add:
Items not involving movement of cash: |
|
|
| Amortization
of leased assets |
|
|
508,463 |
879,078 |
|
| Depreciation |
|
|
99,262 |
120,339 |
|
| Amortization
of deferred cost |
|
|
-- |
526,600 |
|
|
---------- |
---------- |
|
|
|
|
(6,045,300) |
14,047,720 |
|
| Less:
Income Tax paid |
|
|
-- |
146,254 |
|
| Operating
cash before working capital changes |
|
(6,045,300) |
13,901,466 |
|
| CHANGES
OF WORKING CAPITAL |
|
15 |
|
| (Increase)/Decrease
in Current Assets |
|
23,443,777 |
(51,272,690) |
|
| Increase/(Decrease)
in Current Liabilities |
|
(1,602,471) |
(462,206) |
|
|
| Net
changes in Working Capital |
|
21,841,306 |
(51,698,896) |
|
|
|
|
---------- |
---------- |
|
| Net
Cash Flow from Operating Activities |
|
15,796,006 |
(37,797,430) |
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
| Purchase
of investments |
|
|
(156,300) |
(1,831,734) |
|
| Sale
of investments |
|
|
|
18,028,247 |
21,055,634 |
|
|
| Net
Cash Flow from Investing Activities |
|
17,871,947 |
19,223,900 |
|
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
| Lease
Security Deposit |
|
(35,550) |
-- |
|
| Profit
distributed |
|
|
(1,119,983) |
(8,833,843) |
|
|
|
|
---------- |
---------- |
|
| Net
Cash Flow from Financing Activities |
|
(1,155,533) |
(8,833,843) |
|
|
|
| Net
Increase/(Decrease) in cash & cash equivalent |
|
32,512,420 |
(27,407,373) |
|
| Cash and cash equivalent
at the beginning |
|
|
|
| of
the year |
|
(36,732,308) |
(9,324,935) |
|
|
---------- |
---------- |
|
| Cash and cash equivalent at
the end of |
|
|
| June 30 |
|
16 |
(4,219,888) |
(36,732,308) |
|
|
|
========== |
========== |
|
|
|
|
|
|
| Notes
to the Accounts |
|
| For
the year ended June 30, 1997 |
|
|
| 1.
LEGAL STATUS AND NATURE OF BUSINESS |
|
|
|
|
| First
Tri-Star Modaraba was formed under the Modaraba Companies and Modaraba
(Floatation and |
|
| Control)
Ordinance, 1980 and the Rules framed thereunder and is managed by A.R.T..
Modaraba |
|
| Management
(Pvt) Limited. |
|
|
|
|
| The
Modaraba is a perpetual, multipurpose, multidimensional Modaraba and is
primarily engaged in |
|
| leasing
of Plant and Machinery, Motor Vehicles ( both commercial and private),
Computer etc., providing |
|
| finance
on Morabaha and Musharika arrangements, purchases and sales of marketable
securities and |
|
| trading
of various items. |
|
|
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
|
|
|
| (a)
Overall Valuation Policies |
|
|
| These
accounts have been prepared under the historical cost convention. |
|
|
| (b)
Fixed Assets: |
|
|
| (i)
Assets Leased out and Amortization: |
|
|
| Leased
Assets are stated at cost less accumulated amortization. Amortization is
charged to |
|
| income
applying the straight-line method whereby the depreciable values of assets
are |
|
| amortized
over its lease period. |
|
|
| (ii) Assets in Own Use and
Depreciation: |
|
|
|
|
| Operating
assets are stated at cost less accumulated depreciation. Depreciation is
charged |
|
| to
income applying the reducing balance method whereby the cost of an asset is
written off |
|
| over
its estimated useful life. Full year's depreciation is charged on addition
while no |
|
| depreciation
is charged on assets disposed off during the year. |
|
|
| (c)
Trading Stock: |
|
|
| These
are stated at cost determined on the moving average basis except for
goods-in-transit which |
|
| are
stated at invoice value plus other charges paid thereon. ' |
|
|
| (d)
Investments: |
|
|
|
| (i)
Investments are valued at cost. |
|
| (ii)
Profit or loss on sale of investments is accounted for in the year in which
it arise. |
|
| (iii)
Full provision is made against permanent diminution in the value of
investments. |
|
|
| (e)
Revenue Recognition:. |
|
|
| (i)
Rental income is recognised as and when lease rentals become due on a
systematic basis |
|
| over
the lease period. |
|
|
|
|
| (ii)
Profit on Morabaha finance is recorded on accrual basis, calculated on number
of days funds |
|
| were
utilised. |
|
|
| (iii)
Dividend income is recognised on receipt basis. |
|
|
|
|
| (iv)
Sales of goods are recognised on despatch of goods to customers. |
|
|
|
|
| (v)
Deferred Cost: |
|
| Preliminary
expenses and incurred on the issue of Modaraba certificates will be written
off |
|
| over
the period of 5 years. |
|
|
|
|
1997 |
1996 |
|
|
|
Rupees |
Rupees |
|
|
| 3.
ISSUED, SUBSCRIBED AND PAID-UP CAPITAL |
|
|
| 11,900,000
Modaraba Certificates |
|
| of
Rs.10/- each fully paid in cash. |
|
|
119,000,000 |
119,000,000 |
|
|
| 2,180,000
Modaraba Certificates of Rs. 10/- |
|
| each
issued as fully paid bonus Certificates. |
|
21,800,000 |
21,800,000 |
|
|
---------- |
---------- |
|
|
|
|
|
140,800,000 |
140,800,000 |
|
|
|
|
|
========== |
========== |
|
| 4.
SHORT TERM BORROWING |
|
|
|
| 4.1
From Commercial Bank (Secured) |
|
|
4,883,456 |
35,879,041 |
|
| 4.2
From Associated Undertaking (Unsecured) |
|
-- |
1,200,000 |
|
|
---------- |
---------- |
|
|
|
|
|
4,883,456 |
37,079,041 |
|
|
|
|
|
========== |
========== |
|
|
| 4.1 i) Secured by pledge over shares of public
limited companies. |
|
| ii)
Carries mark-up @50 paisas thousand per day, |
|
| 4.2
Represents interest free current account balance repayable on demand. |
|
|
|
|
|
1997 |
1996 |
|
|
|
Rupees |
Rupees |
|
|
| 5.
CREDITORS, ACCRUED AND OTHER LIABILITIES |
|
|
| Accrued
Expenses |
|
|
20,949 |
1,003,067 |
|
| Modaraba
Management Fee |
|
|
-- |
626,085 |
|
| Other
Liabilities |
|
|
20,130 |
14,398 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
41,079 |
1,643,550 |
|
|
========== |
========== |
|
| 6.
LEASED OUT ASSETS |
|
|
|
|
Cost |
Addition/ |
Cost |
Amortization |
Accumulated |
Written Down |
|
|
|
as on |
(Disposal) |
as on |
during the |
Amortization |
Value as on |
|
| Particulars |
01.07.96 |
during the year |
30.06.97 |
year |
as on 30.06.97 |
30.06.97 |
|
|
|
|
|
| Vehicle |
|
6,450,423 |
(225,518) |
6,224,905 |
508,463 |
6,224,905 |
-- |
|
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| 1997 |
|
6,450,423 |
(225,518) |
6,224,905 |
508,463 |
6,224,905 |
-- |
|
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| 1996 |
|
7,024,677 |
(150,000) |
6,874,677 |
879,078 |
6,140,696 |
733,981 |
|
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
| 7.
DEPRECIATION SCHEDULE OF ASSETS IN OWN USE |
|
|
| PARTICULARS |
Cost |
Addition/ |
Cost |
Rate |
Depreciation |
Accumulated |
Written Down |
|
|
as on |
(Disposal) |
as on |
% |
Charged for |
Depreciation |
value as on |
|
|
01.07.96 |
during the year |
30.06.97 |
|
year |
as on 30.06.97 |
30.06.97 |
|
|
|
| Motor Car |
|
896,150 |
-- |
896,150 |
20% |
70,601 |
613,745 |
282,405 |
|
|
|
|
|
|
|
| Furniture
& Fixture |
107,900 |
-- |
107,900 |
10% |
7,032 |
44,609 |
63,291 |
| Motorcycle |
|
29,400 |
-- |
29,400 |
20% |
1,734 |
22,464 |
6,936 |
| Office
Equipment |
256,432 |
-- |
256,432 |
10% |
17,283 |
100,881 |
155,551 |
| Computer |
|
43,700 |
-- |
43,700 |
10% |
2,612 |
20,196 |
23,504 |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
| 1997
Rupees |
1,333,582 |
-- |
1,333,582 |
|
99,262 |
801,895 |
531,687 |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
| 1996
Rupees |
1,333,582 |
-- |
1,333,582 |
|
120,339 |
702,633 |
630,949 |
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
| 8.
INVESTMENT IN SHARES |
|
|
|
|
| The
holdings are in ordinary shares/certificates of the face value of Rs. 10/-
each. |
|
|
|
|
| No. of |
|
Q U O T E D: |
|
| Shares/Certificates |
Associated Undertakings |
|
Cost |
|
|
| 1997 |
1996 |
|
|
1997 |
1996 |
|
|
| 4,001,455 |
4,001,455 |
Second Tri-Star Modaraba |
|
28,057,681 |
28,057,681 |
|
| 1,799,081 |
1,799,081 |
Tri-Star Polyester Ltd. |
|
25,224,133 |
25,224,133 |
|
| 1,214,900 |
1,214,900 |
Tri-Star Power Ltd. |
|
23,557,122 |
23,557,122 |
|
| 3,740,000 |
3,740,000 |
Tri-Star Energy Ltd.
(Un-quoted) |
37,400,000 |
37,400,000 |
|
|
---------- |
---------- |
|
|
|
114,238,936 |
114,238,936 |
|
|
========== |
========== |
|
|
|
OTHERS |
|
|
| 5,000 |
1,000 |
12th ICP Mutual Fund Ltd. |
|
160,640 |
120,640 |
|
| 302 |
15,802 |
First Crescent Modaraba |
|
4,545 |
235,650 |
|
| 37,537 |
37,537 |
First Grindlays Modaraba |
|
820,551 |
820,55i |
|
| 25,570 |
25,570 |
First IBL Modaraba |
|
681,180 |
681,180 |
|
