| A.A. Textile Limited |
|
|
|
|
|
|
|
|
|
| Annual
Report 1998 |
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|
|
| Contents |
|
|
| Company
Information |
|
| Notice
of Meeting |
|
| Directors'
Report |
|
| Pattern
of Shareholding |
|
| Auditors'
Report |
|
| Balance
Sheet |
|
| Profit
and Loss Account |
|
| Cash
Flow Statement |
|
| Notes
to the Accounts |
|
|
|
| Company
Information |
|
|
| Board
of Directors |
|
| Sheikh
Mukhtar Ahmed |
|
| (Chairman) |
|
| Sheikh
Mohammad Yaseen |
|
| Mr.
Mohammad Naeem Mukhtar |
|
| (Chief
Executive) |
|
| Mr.
Mohammad Waseem Mukhtar |
|
| Mr.
Atif Yaseen |
|
| Mrs.
Iqbal Begum |
|
| Mrs.
Ghazala Naeem |
|
| Mr.
Mohammad Farooq |
|
| (ICP
Nominee) |
|
|
| Secretary |
|
| S.
M. Hashain Rizvi |
|
|
| Auditors |
|
| Rahman
Sarfaraz & Co., |
|
| Chartered
Accountants, |
|
| Lahore,
Pakistan. |
|
|
| Tax
Consultants |
|
| E
R. Merchant & Co., |
|
| Chartered
Accountants, |
|
| Karachi,
Pakistan. |
|
|
| System
Consultants |
|
|
|
| KPMG
Peat Marwick Associates (Pvt) Ltd. |
|
| Karachi,
Pakistan. |
|
|
|
|
|
|
|
|
| Bankers |
|
|
|
|
| Emirates
Bank International PJSC |
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|
|
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|
|
| Registered
Office |
|
|
|
| Ibrahim
Centre |
|
|
|
| i-A,
Ahmed Block, |
|
|
|
| New
Garden Town, |
|
| Lahore,
Pakistan. |
|
|
|
|
| Head Office |
|
|
| Ibrahim
Centre |
|
| 1S
Club Road, |
|
| Faisalabad,
Pakistan. |
|
|
| Shares
Department |
|
| Ibrahim
Centre |
|
| GK-7/59,
Bagh-e-Zehra Street, |
|
| Kharadar, |
|
|
| Karachi,
Pakistan. |
|
|
|
|
| Mills |
|
|
| 40
- Kilometre, |
|
| Faisalabad,
Sheikhupura Road, |
|
| Tehsil
Jaranwala, |
|
| District
Faisalabad, Pakistan. |
|
|
|
| Notice
of Meeting |
|
|
| Notice
is hereby given that the 16th Annual General Meeting of the shareholders of
the Company will be held |
|
| on
26-03-1999 at 9:00 A.M. at Avari Hotel, Shahrah-e-Quaid-e-Azam, Lahore to
transact the following business:- |
|
|
| 1.
To confirm the minutes of the preceding meeting of the shareholders of the
Company. |
|
|
|
|
| 2.
To consider, approve and adopt the Annual Audited Accounts of the Company for
the year |
|
| ending
30-09-1998. |
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|
|
|
|
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| 3.
To approve Cash Dividend @ 20% as recommended by the Board of Directors. |
|
|
|
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| 4.
To appoint Auditors for the next year 1998-99 and to fix their remuneration.
The present auditors M/s |
|
| Rahman
Sarfaraz & Co., Chartered Accountants, Lahore being eligible for
appointment, offer themselves |
|
| for
re-appointment. |
|
|
|
|
|
|
| 5.
To transact any other business with the permission of the chair. |
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|
|
|
By order of the Board |
|
|
|
|
|
|
| Dated:
8 February, 1999 |
|
S.M. Hashain Rizvi |
|
| Lahore |
|
|
Company Secretary |
|
|
| Note: |
|
|
| i)
The share transfer books of the Company shall remain closed from 20-03-1999
to 26-03-1999 (both days |
|
| inclusive)
to determine the names of members entitled to Dividend payment and to attend
the meeting, |
|
| transfers
received in order at the Shares Registration office of the Company at the
close of business on |
|
| 19-03-1999
will be treated in time. |
|
|
| ii)
A member entitled to attend and vote at the meeting may appoint another
member as his/her proxy to |
|
| attend
and Vote on his/her behalf. |
|
|
| (iii)
The proxies, in order to be effective, must be received by the Company at
least 48 hours before the |
|
| meeting
at the registered office of the Company at 1-A Ahmad Block, New Garden Town,
Lahore. |
|
|
|
| Directors'
Report to the Shareholders |
|
|
| Your
Directors are pleased to present before you the ]6th Audited Financial
Results of the company for the |
|
| year
ended September 30, 1998. |
|
|
| OPERATING
RESULTS |
|
| The
operating results of the mills are satisfactory. The mills has produced
6,865,508 Kgs. of blended yarn of |
|
| different
count as compared to production of 6,782,091 Kgs. of yarn in the
corresponding period of last year. |
|
| The
different count manufactured during the year ranging from 30/S to 45/S count
of blended yarn. |
|
|
| The
summarized production results are as under: |
|
|
| Type
of Yarn Produced |
|
Production |
|
|
|
|
Kgs |
|
|
| Polyester
cotton yarn |
|
3,785,972 |
|
| Acrylic
Viscose Yarn |
|
2,218,603 |
|
| Acrylic
Yarn |
|
860,933 |
|
|
|
|
---------- |
|
|
|
|
6,865,508 |
|
|
========== |
|
|
| You
will appreciate that your mills are doing its best to maintain the constant
level of production from year to |
|
| year
with optimum level of capacity utilization. |
|
|
| The
pattern of production with different counts of yarn is based on the market
demand and also to achieve best selling |
|
| rates.
A variety of product mix of blended yam are offered to customers which gives
them satisfactory weaving results. |
|
|
| FINANCIAL
RESULTS |
|
| The
financial results of your company are also satisfactory. The after tax net
profit of the company is |
|
| Rs.
29,317,864/- as compared to previous year's net profit of Rs. 27,397,703/-.
The summarized position of |
|
| financial
results of your company for the year ended 30 September, 1998, are as
follows: |
|
|
|
Rupees |
|
|
|
|
| Gross
Profit |
|
108,999,225 |
|
| Other
Income |
|
1,629,220 |
|
|
|
|
---------- |
|
|
|
|
110,628,445 |
|
| Operating
Expenses |
|
35,812,558 |
|
|
|
|
---------- |
|
| Operating
Profit |
|
74,815,887 |
|
| Financial
and Other Charges |
|
32,473,927 |
|
|
---------- |
|
| Profit
before Taxation |
|
42,341,960 |
|
| Provision
for Taxation |
|
13,024,096 |
|
|
|
|
---------- |
|
| Profit
after Taxation |
|
29,317,864 |
|
| Unappropriated
Profit Brought Forward |
|
11,565 |
|
|
|
|
---------- |
|
| Surplus
Available for Appropriation |
|
29,329,429 |
|
|
========== |
|
|
|
| CASH
DIVIDEND |
|
| The
Board of Directors has recommended payment of Cash Dividend @ 20% i.e. Rupees
2/- per share of |
|
| Rupees
10/- each. |
|
|
| The
Profit has been appropriated as follow |
|
|
|
|
Rupees |
|
|
| Surplus
available for appropriation |
|
29,317,864 |
|
| Appropriations |
|
| Proposed
Dividend @ 20% (1997 - @ 20%) |
|
20,625,000 |
|
| Transfer
to general reserve |
|
87,000,000 |
|
|
|
|
---------- |
|
|
|
|
29,325,000 |
|
|
|
|
---------- |
|
| Unappropriated
Profit Carried Forward |
|
4,429 |
|
|
|
|
========== |
|
|
| GENERAL
OVERVIEW |
|
| The
overall position of industrial activity in general and textile industry in
particular is not satisfactory. |
|
| There
is no respite in continuous recession from last many years. It has further
aggravated with the currency |
|
| debacle
in the South East Asian Countries. |
|
|
| The
exports to Far East Countries has declined drastically which has ultimately
affected the domestic yarn |
|
| market
in particular and other textile products in general.
i- |
|
|
| We
hope that once the currency crises are over in the South East Asian Countries
then there is a possibility ~~ |
|
| of
some improvement in the exports business as well as in local sales.
~~ |
|
|
| YEAR
2000 COMPLIANCE OF COMPUTER SYSTEM |
|
| The
company has assigned the work of year 2000 compliance of the existing
computer system to its consultants |
|
| and
they have confirmed that the work will be completed by September 1999 and all
our applications will be |
|
| made
year 2 K compliant. |
|
|
| AUDITORS |
|
| The
present auditors M/s Rahman Sarfaraz & Co., Chartered Accountants, Lahore
retire and are being |
|
| eligible,
consented for re-appointment for the next financial year 1998-99. |
|
|
| PATTERN
OF SHAREHOLDING |
|
| Pattern
of shareholding of the company is annexed. |
|
|
| ACKNOWLEDGMENT |
|
| The
management is happy and wishes to place on record its deep appreciation for
their hard work and |
|
| positive
efforts made by the workers and staff. The management would also like to
thank valued Customers, |
|
| Bankers,
Financial Institutions and shareholders for their whole hearted support and
hopes to get the same |
|
| cooperation
in the future. |
|
|
|
|
On behalf of the Board |
|
|
|
|
|
|
| Dated:
8 February, 1999 |
|
(MOHAMMAD NAEEM MUKHTAR) |
|
| Lahore |
|
|
Chief Executive |
|
|
|
| Pattern
of Shareholding |
|
| as
at 30 September , 1998 |
|
|
| No. of |
Having Shares |
Shares |
Percentage |
|
|
| Shareholders |
From |
To |
held |
|
|
|
|
| 37 |
1 |
100 |
2,050 |
0.02 |
|
| 317 |
101 |
500 |
52,975 |
0.51 |
|
| 45 |
501 |
1000 |
35,025 |
0.34 |
|
| 88 |
1001 |
5000 |
189,675 |
1.84 |
|
| 8 |
5001 |
10000 |
58,750 |
0.57 |
|
| 2 |
10001 |
15000 |
25,000 |
0.24 |
|
| 1 |
15001 |
20000 |
18,750 |
0.18 |
|
| 1 |
20001 |
25000 |
24,500 |
0.24 |
|
| 1 |
50001 |
55000 |
51,562 |
0.50 |
|
| 5 |
60001 |
65000 |
310,000 |
3.01 |
|
| 1 |
125001 |
130000 |
128,875 |
1.25 |
|
| 2 |
150001 |
155000 |
309,374 |
2.10 |
|
| 1 |
195001 |
200000 |
195,937 |
1.90 |
|
| 2 |
205001 |
210000 |
412,500 |
4.00 |
|
| 1 |
215001 |
220000 |
216,562 |
2.10 |
|
| 3 |
235001 |
240000 |
711,561 |
6.90 |
|
| 2 |
390001 |
395000 |
783,754 |
7.60 |
|
| 1 |
585001 |
590000 |
587,275 |
5.70 |
|
| 2 |
1110001 |
1115000 |
2,227,500 |
21.60 |
|
| 1 |
1245001 |
1250000 |
1,250,000 |
12.12 |
|
| 1 |
2720001 |
2725000 |
2,720,875 |
26.38 |
|
| ---------- |
|
---------- |
---------- |
|
| 522 |
|
10,312,500 |
100.00 |
|
| ========== |
|
========== |
========== |
|
|
| Categories
of Shareholders |
|
|
| Particulars |
|
Shareholders |
Shareholding |
Percentage |
|
|
| Individuals |
|
505 |
5,519,200 |
53.52 |
|
| Investment
bank/companies |
5 |
614,500 |
5.96 |
|
| Private
companies |
|
3 |
128,925 |
1.25 |
|
| Insurance
companies |
|
2 |
63,125 |
0.61 |
|
| Non-resident
companies |
|
2 |
1,250,275 |
12.12 |
|
| Financial
institution/companies |
3 |
273,475 |
26.52 |
|
| Mutual
fund/brokerage house |
2 |
2,000 |
0.02 |
|
|
|
---------- |
---------- |
---------- |
|
|
522 |
10,312,500 |
100.00 |
|
|
========== |
========== |
========== |
|
|
|
| Auditors'
Report to the Members |
|
|
| We
have audited the annexed balance sheet of A. A. Textiles Limited as at
September 30, 1998 and the related |
|
| profit
and loss account and cash flow statement (statement of changes in financial
position) together with the |
|
| notes
forming part thereof, for the year then ended and we state that we have
obtained all the information and |
|
| explanations
which to the best of our knowledge and belief were necessary for the purpose
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 expenditures were incurred during the year were for the purpose of
company's |
|
| business;
and |
|
|
|
|
|
|
| (iii)
the business conducted, investments made and 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 (statement
of changes in |
|
| financial
position) together with the notes forming part thereof, give the information
required |
|
| by
the Companies Ordinance, 1984 in the manner so required and respectively give
a true and |
|
| fair
view of the state of the company's affairs as at September 30, 1998 and of
the profit and |
|
| changes
in financial position for the year then ended; and |
|
|
|
|
| (d)
In our opinion Zakat deductible at source under Zakat and Ushr Ordinance,
1980 was deducted |
|
| by
the company and deposited in central Zakat Fund established u/s 7 of that
Ordinance. |
|
|
| Dated:
8 February, 1999 |
|
(RAHMAN SARFARAZ & CO.) |
|
| Lahore |
|
|
Chartered Accountants |
|
|
|
| Balance
Sheet |
|
| as
at 30 September, 1998 |
|
|
|
Note |
1998 |
1997 |
|
|
|
Rupees |
Rupees |
|
|
|
|
| SHARE
CAPITAL AND RESERVES |
|
|
|
|
|
| Authorised
capital |
|
|
|
| 20,000,000
ordinary shares of Rs. 10/- each |
|
200,000,000 |
200,000,000 |
|
|
|
|
========== |
========== |
|
| Issued,
subscribed and paid-up capital |
3 |
103,125,000 |
103,125,000 |
|
| General
reserve |
|
4 |
68,000,000 |
59,300,000 |
|
| Unappropriated
profit |
|
|
4,429 |
115,651 |
|
|
|
|
---------- |
---------- |
|
|
|
|
171,129,429 |
162,436,565 |
|
| LONG
TERM LOANS |
|
5 |
23,000,000 |
79,200,000 |
|
| LIABILITIES
AGAINST ASSETS SUBJECT |
|
|
|
| TO
FINANCE LEASE |
|
6 |
2,155,522 |
4,599,228 |
|
|
|
|
|
|
| DEFERRED
LIABILITY |
|
|
|
|
|
|
|
|
| customs
Debentures |
|
7 |
838,858 |
1,258,287 |
|
| Gratuity
Payable |
|
8 |
8,228,206 |
6,185,422 |
|
|
|
|
---------- |
---------- |
|
|
|
|
9,067,064 |
7,443,709 |
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
|
| Short
term borrowings |
|
9 |
149,476,555 |
166,376,029 |
|
| Current
portion of long term liabilities |
10 |
2,863,135 |
2,998,095 |
|
| Creditors,
provisions and accrued liabilities |
11 |
69,492,603 |
51,813,216 |
|
| Provision
for taxation |
|
|
23,394,461 |
16,908,655 |
|
| Unclaimed
dividend |
|
12 |
202,663 |
170,479 |
|
| Proposed
dividend |
|
|
20,625,000 |
20,625,000 |
|
|
|
|
---------- |
---------- |
|
|
|
|
266,054,417 |
258,891,474 |
|
| CONTINGENCIES
AND COMMITMENTS |
|
13 |
- |
- |
|
|
|
|
---------- |
---------- |
|
|
|
|
471,406,432 |
512,570,976 |
|
|
|
|
========== |
========== |
|
|
|
|
| FIXED
ASSETS |
|
14 |
204,655,522 |
218,923,373 |
|
|
|
|
|
| LONG
TERM INVESTMENTS |
|
15 |
5,000,000 |
5,000,000 |
|
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
|
|
|
|
|
| Stores,
spares and loose tools |
|
16 |
11,528,816 |
18,552,010 |
|
| Stock
in trade |
|
17 |
146,958,766 |
191,416,652 |
|
| Trade debts |
|
18 |
4,234,253 |
4,408,177 |
|
| Advances,
deposits and other receivables |
19 |
55,639,786 |
54,013,631 |
|
| Cash
and bank balances |
|
20 |
43,389,289 |
20,257,133 |
|
|
|
|
---------- |
---------- |
|
|
|
|
261,750,910 |
288,647,603 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
471,406,432 |
512,570,976 |
|
|
|
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
|
|
|
|
|
| Profit
and Loss Account |
|
|
|
| for
the year ended 30 September, 1998 |
|
|
|
|
|
|
|
Note |
1998 |
1997 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
|
|
|
|
|
| SALES |
|
21 |
749,697,177 |
802,873,327 |
|
| COST
OF SALES |
|
22 |
640,697,952 |
676,996,613 |
|
|
|
|
---------- |
---------- |
|
| GROSS
PROFIT |
|
|
108,999,225 |
125,876,714 |
|
|
|
|
|
| OPERATING
EXPENSES |
|
|
|
| Administrative |
|
23 |
30,174,206 |
30,442,414 |
|
| Selling |
|
24 |
5,638,352 |
5,870,204 |
|
|
|
|
---------- |
---------- |
|
|
|
|
35,812,558 |
36,312,618 |
|
|
|
|
---------- |
---------- |
|
| OPERATING
PROFIT |
|
|
73,186,667 |
89,564,096 |
|
|
|
|
|
|
| OTHER
INCOME |
|
|
|
|
| Miscellaneous
revenue |
|
25 |
700,860 |
1,333,771 |
|
| Profit/(loss)
on trading |
|
26 |
928,360 |
(744,884) |
|
|
|
|
---------- |
---------- |
|
|
|
1,629,220 |
588,887 |
|
|
|
---------- |
---------- |
|
|
|
74,815,887 |
90,152,983 |
|
|
|
|
|
| OTHER
CHARGES |
|
|
|
|
| Financial |
|
27 |
30,232,686 |
48,935,355 |
|
| Zakat |
|
|
12,717 |
18,074 |
|
| Workers'
profit participation fund |
|
|
2,228,524 |
2,059,978 |
|
|
|
|
---------- |
---------- |
|
|
|
|
32,473,927 |
51,013,407 |
|
|
|
|
---------- |
---------- |
|
| PROFIT
FOR THE YEAR |
|
|
42,341,960 |
39,139,576 |
|
|
|
|
|
---------- |
---------- |
|
| PROVISION
FOR TAXATION - Current |
|
28 |
11,652,589 |
11,741,873 |
|
|
|
- Prior Y ears |
|
1,371,507 |
- |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
13,024,096 |
11,741,873 |
|
|
|
|
|
---------- |
---------- |
|
| PROFIT
AFTER TAXATION |
|
|
|
29,317,864 |
27,397,703 |
|
| UNAPPROPRIATED
PROFIT BROUGHT FORWARD |
|
11,565 |
38,862 |
|
|
|
|
|
---------- |
---------- |
|
| SURPLUS
AVAILABLE FOR APPROPRIATION |
|
29,329,429 |
27,436,565 |
|
|
|
|
|
|
| APPROPRIATIONS |
|
|
|
|
| Proposed
Dividend @ 20% (1997 - @ 20%) |
|
20,625,000 |
20,625,000 |
|
| Transferred
to general reserve |
|
|
8,700,000 |
6,800,000 |
|
|
|
|
---------- |
---------- |
|
|
|
|
29,325,000 |
27,425,000 |
|
|
|
|
---------- |
---------- |
|
| UNAPPROPRIATED
PROFIT RETAINED |
|
|
4,429 |
11,565 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
|
|
Chief Executive |
|
|
Director |
|
|
|
|
|
|
|
|
| Cash
Flow Statement |
|
|
|
| for
the year ended 30 September, 1998 |
|
|
|
|
|
|
|
|
1998 |
1997 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| a)
CASH FROM OPERATING ACTIVITIES |
|
|
|
| Profit/(Loss)
for the year before taxation |
|
42,341,960 |
39,139,576 |
|
| Adjustments
for: |
|
|
|
|
| Depreciation |
|
|
21,049,464 |
22,592,888 |
|
| (Profit)/loss
on disposal of fixed assets |
|
1,423,461 |
902,029 |
|
| Provision
for Gratuity |
|
|
2,797,195 |
2,240,272 |
|
| Gratuity
paid |
|
|
(754,411) |
(583,200) |
|
| Financial
charges |
|
|
30,232,686 |
48,935,355 |
