| Burma Oil Mills Limited |
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| Annual
Report 1998 |
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| CONTENTS |
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| Board
of Directors |
|
| Notice
of Meeting |
|
| Directors'
Report |
|
| Pattern
of Shareholding |
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| Auditors'
Report |
|
| Balance
Sheet |
|
| Profit
and Loss Account |
|
| Statement
of Sources and Application of Funds |
|
| Operating
Results |
|
| Notes
to the Accounts |
|
|
|
| BOARD
OF DIRECTORS |
|
|
| Chairman |
|
| Major
General (Retd.) Ijaz Amjad |
|
|
| Chief
Executive |
|
| Mr.
Muhammad Islam Munawar. |
|
|
|
| Directors |
|
| Brig.
(Retd.) Pervez Zaka |
|
| Mr.
Mumtaz Hussain Baloch |
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| Mr.
Behram Hasan |
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| Mr.
Asif M. Rangoonwala |
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| Mr.
Tariq M. Rangoonwala |
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|
| Secretary |
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| Mr.
Abdullah Haji Ahmed |
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|
| Auditors |
|
| Messrs.
Ebrahim & Co. |
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| Chartered
Accountants |
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| Legal
Adviser |
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| Mr.
Samiuddin Sami |
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| Bar-at-Law |
|
|
| Bankers |
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| National
Development Finance Corporation |
|
| United
Bank Ltd. |
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|
| Registered
Office |
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| V. M. Plaza |
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| 13,
West Wharf |
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| Karachi. |
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| NOTICE
OF MEETING |
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| NOTICE
is hereby given that the 43rd Annual General Meeting of the Shareholders of |
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| BURMA
OIL MILLS LIMITED will be held on Thursday, the 31st December, 1998 at 03.00
P.M. at |
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| the
Registered Office of the Company situated at V.M. Plaza, 13, West Wharf,
Karachi to |
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| transact
the following business. |
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| AGENDA |
|
|
| 1.
To confirm the minutes of the last Annual General Meeting of the Company held |
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| on
30th December, 1997 |
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|
|
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| 2.
To receive and adopt the Audited Balance Sheet and Profit and Loss Account of |
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| the
Company for the year ended 30th June, 1998 together with Directors' and |
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| Auditors'
Reports thereon. |
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| 3.
To appoint Auditors for the year 1998-99 and to fix their remuneration. The
retiring |
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| Auditors
M/s. Ebrahim & Co. Chartered Accountants, Karachi, being eligible offer |
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| themselves
for reappointment. |
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| 4.
To transact any other business that may be placed before the meeting with the |
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| permission
of the Chairman. |
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| V.M. Plaza, |
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|
By Order of the Board |
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| 13-West
Wharf |
|
ABDULLAH HAJI AHMED |
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| Karachi: |
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|
Secretary |
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| 3rd
December, 1998. |
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| NOTES: |
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|
| 1.
The Share Transfer Books of the Company will remain closed from25th December.
1998 |
|
| to
31st December, 1998 .(Both days inclusive). |
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| 2.
A member entitled to attend and vote at the Annual General Meeting is
entitled to |
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| appoint
member as proxy to attend and vote instead of him. Proxies must be received |
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| at
the Registered Office of the Company not less than 48 hours before the
meeting. |
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| 3.
Shareholders are requested to immediately notify the change in their
addresses, if |
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| any. |
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| DIRECTOR'S
REPORT |
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| FOR
THE YEAR ENDED 30TH JUNE, 1998 |
|
|
| Dear Member |
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|
| Asalam-mu-Alaikum, |
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| Your
Directors have the honour in presenting 42nd Annual Report alongwith Audited
Accounts |
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| and
Auditor's Report for the financial year 1997-98. |
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| The
financial position of your Company for the year 1997-98 was further
deteriorated due to |
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| heavy
financial expenses incurred on account of mark-up on previous liabilities.
Since our unit was |
|
| completely
closed down therefore production was NIL during the year. However, stock of
553 M. Tons of |
|
| Vanaspati
which was brought forward from last year was sold during the year. |
|
|
| The
company has incurred huge loss of Rs: 158.541 Millions in the year 1997-98 as
compared to |
|
| Rs.
220.802 Millions during the previous year. |
|
|
| FINANCIAL
RESULTS: |
|
(Rs. in Million) |
|
| Loss:
for the year before Taxation |
|
158,541 |
|
| Provision
for the Turn Over Tax as per Section 80(D) |
0,118 |
|
| of
Income Tax Ordinance 1979 |
|
---------- |
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|
| Loss
for the year after Taxation |
|
|
158,659 |
|
| Accumulated
losses brought forward |
|
833,474 |
|
|
|
|
|
---------- |
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| Accumulated
losses carried forward to Balance Sheet |
992,133 |
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|
|
========== |
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|
| CLOSURE
OF THE PLANT & RELIEVING OF STAFF & WORKERS UNDER GHS/VSS: |
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| As
per decision of CCOP/GCP, the operations of the unit were closed down from
16th June, 1997 |
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| and
entire staff and workers have been relieved under GHS/VSS on 9th October,
1997 except few skel- |
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| eton
staff. The Privatization .process of Unit is under active consideration of
Privatisation Commission. |
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|
| DIVIDEND: |
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| The
Directors of your Company have decided to pass over-the Dividend due to poor
financial results and |
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| huge
accumulated losses. |
|
|
| BOARD
OF DIRECTORS: |
|
| Since
the last Annual General Meeting held on 30th December, 1997 there have been
changes in the |
|
| composition
of the Board of the Company Managing Director Mr. Muhammad Islam Munawar,
Brig. (Retd.) |
|
| Pervez
Zaka and Mr. Mumtaz Hussain Baloch were nominated by the Federal Government
in place of Mr. |
|
| Muhammad
Abid Abbasi, Mr. B.A. Lakho and Mr. Shamim Raza. The services rendered by the
out going |
|
| Directors
were appreciated by the Board, and Board also well come the new Directors. |
|
|
| AUDITORS
OBSERVATION: |
|
| The
Auditors of the Company while qualifying their report under review had
observed that Accounts have |
|
| been
prepared on going basis the validity of which depends on the support of Ghee
Corporation of Paki- |
|
| stan
(Pvt) Ltd towards providing funds to the Company. Your Directors fully
endorse the view point of the |
|
| Auditors
of the Company. |
|
|
| The
Auditors have also qualified in their report under review in respect of the
provision has not been made |
|
| for
debts amounting to Rs: 9,16,825/- in the opinion of Auditors its recovery are
doubtful. However Man- |
|
| agement
is consider to get recovery under H.O.V.I. Act. |
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| AUDITORS: |
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| M/s.
Ebrahim & Company, Chartered Accountant, Karachi, retire and offer
themselves for re-appointment |
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| as
Auditors of the Company for the year 1998-99 also. |
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|
| PATTERN
OF SHAREHOLDING: |
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| The
pattern of Share holding as on 30th June, 1998 is annexed to this report. |
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| APPRECIATION: |
|
| We
would like to thanks for valuable advice and assistance provided by GCP,
Ministry of Industries, other |
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| Government
Agencies-and Employees in respect of Company's matter as and when required. |
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|
ON BEHALF OF THE BOARD |
|
|
|
MUHAMMAD ISLAM MUNAWAR |
|
| Karachi:
the 3rd December, 1998. |
|
CHIEF EXECUTIVE. |
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|
| PATTERN
OF SHAREHOLDING |
|
| AS
AT 30TH JUNE 1998 |
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| Number of |
Shareholdings |
Total |
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| Shareholders |
From |
To |
Shares held |
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| 1925 |
1 |
100 |
42,370 |
|
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| 171 |
101 |
500 |
35,448 |
|
|
| 29 |
501 |
1000 |
22,896 |
|
|
| 33 |
1001 |
5000 |
69,943 |
|
|
| 2 |
5001 |
10000 |
13,316 |
|
|
| 4 |
10001 |
15000 |
44,364 |
|
|
| 1 |
45001 |
50000 |
46,630 |
|
|
| 1 |
90001 |
95000 |
94,221 |
|
|
| 1 |
235001 |
240000 |
237,207 |
|
|
| 1 |
370001 |
375000 |
372,152 |
|
|
| 1 |
520001 |
525000 |
521,493 |
|
|
| ---------- |
|
---------- |
|
| 2169 |
|
1,500,000 |
|
|
| ========== |
|
========== |
|
|
|
| CATEGORIES
OF SHAREHOLDERS |
NUMBER |
SHARES HELD |
PERCENTAGE |
|
|
|
|
| Individuals |
|
2142 |
151,378 |
10.09 |
|
| Investment
Companies |
|
2 |
758,700 |
50.59 |
|
| Insurance
Companies |
|
5 |
384,812 |
25.65 |
|
| Joint
Stock Companies |
|
16 |
201,818 |
13.45 |
|
| Financial
Institutions |
|
2 |
2,333 |
0.16 |
|
|
|
|
|
|
| OTHERS: |
|
|
| Administrator
Abandoned Properties |
1 |
958 |
0.06 |
|
| Corporate
Law Authority |
1 |
1 |
- |
|
|
|
---------- |
---------- |
---------- |
|
|
2169 |
1,500,000 |
100.00 |
|
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|
========== |
========== |
========== |
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| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of BURMA OIL MILLS LIMITED as at June
30, 1998 |
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| and
the related profit and loss account and statement of sources and application
of funds, to- |
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| gether
with the notes forming part thereof, for the year then ended. |
|
|
| 1.
The accounts have been prepared on a going concern basis the validity of
which |
|
| depends
on the support from Ghee Corporation of Pakistan (Private) Limited towards |
|
| preserving
the equity of the company, re-commencing commercial production and |
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| arranging
for working capital and other resources in the absence of which the basis |
|
| would
not be valid and adjustment would have to be made for any gain or loss
arising |
|
| on
realisation of the company's assets. |
|
|
|
|
| 2.
Provision has not been made for debts amounting to Rs. 916,825 which are, in
our |
|
| opinion,
doubtful of recovery. |
|
|
| Except
for the effects of the foregoing paras 1 and 2 above, we state that we have
obtained all |
|
| the
information and explanation 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 company as
required by |
|
| the
Companies Ordinance, 1 984; |
|
|
|
|
| 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 agree- |
|
| ment
with the books of accounts and are further in accordance with the 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, investments made and the expenditure incurred during |
|
| the
year were in accordance with the objects of the company; |
|
|
| c)
Except for the effects of the foregoing paras 1 and 2 above, in our opinion,
and to the |
|
| best
of our information and according to the explanation given to us, the balance
sheet, |
|
| profit
and loss account and the statement of sources and application of funds,
together with |
|
| the
notes forming part thereof, give the information required by the Companies
Ordi- |
|
| nance,
1984 in the manner so required and respectively give a true and fair view of |
|
| the
state of the Company's affairs as at June 30, 1998 and of the loss and the
changes |
|
| in
financial position for the year then ended; and |
|
|
| d)
in our opinion no zakat was deductible at source under the Zakat and Ushr
Ordinance, |
|
| 1980. |
|
|
|
|
|
|
EBRAHIM & CO. |
|
| Karachi:
the 3rd December, 1998. |
|
Chartered Accountants. |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 1998 |
|
|
|
|
|
1998 |
1997 |
|
|
|
Notes |
Rupees |
Rupees |
|
| SHARE
CAPITAL AND RESERVES |
|
|
|
|
|
| Authorised
Capital |
|
|
|
| 2,000,000
ordinary shares of Rs. 10/- each |
|
20,000,000 |
20,000,000 |
|
|
|
|
========== |
========== |
|
| Issued,
subscribed and paid-up capital |
3 |
15,000,000 |
15,000,000 |
|
|
|
|
|
|
| Reserves |
|
|
|
|
| Capital
reserves |
|
|
1,188,932 |
1,188,932 |
|
| General
reserves |
|
|
16,125,000 |
16,125,000 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
17,313,932 |
17,313,932 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
32,313,932 |
32,313,932 |
|
| Profit
& loss account |
|
|
|
| (Adverse
balance) |
|
|
(992,133,268) |
(833,474,481) |
|
|
|
|
---------- |
---------- |
|
|
|
|
(959,819,336) |
(801,160,549) |
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
|
|
|
| Accrued
and other liabilities |
|
4 |
1,562,910 |
5,145,927 |
|
| Payable
to Ghee Corp. of Pak (Pvt) Ltd. |
5 |
986,391,749 |
854,945,038 |
|
| Provision
for taxation - Income tax |
|
11,864,468 |
11,746,468 |
|
|
|
|
---------- |
---------- |
|
|
|
|
999,819,127 |
371,837,433 |
|
| CONTINGENCIES
AND COMMITMENTS |
|
6 |
- |
- |
|
|
|
|
---------- |
---------- |
|
|
|
|
39,999,791 |
70,676,884 |
|
|
|
|
|
========== |
========== |
|
|
| TANGIBLE
FIXED ASSETS |
|
7 |
4,980,635 |
5,828,182 |
|
| LONG
TERM INVESTMENTS |
|
8 |
21,718 |
21,718 |
|
| LONG
TERM LOANS AND ADVANCES |
|
9 |
- |
1,180,575 |
|
|
|
|
| LONG
TERM DEPOSITS |
|
|
|
| Security
deposits |
|
3,876,944 |
3,897,081 |
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Stores,
spares and loose tools |
|
10 |
2,929,792 |
2,932,981 |
|
| Stock
in trade |
|
11 |
728,274 |
23,641,096 |
|
| Trade debts |
|
12 |
2,465,738 |
2,723,591 |
|
| Advances,
prepayments and |
|
|
|
| other
receivables |
|
13 |
24,929,147 |
29,659,185 |
|
| Cash
and bank balances |
|
14 |
67,543 |
792,475 |
|
|
|
|
---------- |
---------- |
|
|
|
|
31,120,494 |
59,749,328 |
|
|
|
|
|
|
| ASSETS
IN BANGLADESH |
|
15 |
- |
- |
|
|
|
|
---------- |
---------- |
|
|
|
|
39,999,791 |
70,676,884 |
|
|
|
|
========== |
========== |
|
|
|
| NOTE:
The annexed notes form an integral part of these accounts. |
|
|
| Karachi:
the 3rd December, 1998. |
|
|
|
Muhammad Islam Munawar |
|
Brig. (Retd.) Pervez Zaka |
|
|
Chief Executive |
|
Director |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 1998 |
|
|
|
Vegetable |
|
|
|
|
Ghee |
By Products |
1998 |
1997 |
|
|
Notes |
Rupees |
Rupees |
Rupees |
Rupees |
|
|
|
|
| Sales |
|
|
22,265,260 |
641,565 |
22,906,825 |
269,315,817 |
|
|
| Less:
Sales tax |
|
|
- |
84,236 |
84,236 |
360,312 |
|
|
|
|
|
---------- |
---------- |
---------- |
---------- |
|
|
|
|
22,265,260 |
557,329 |
22,822,589 |
268,955,505 |
|
| Cost
of Sales |
|
16 |
22,254,702 |
658,900 |
22,913,602 |
335,295,969 |
|
|
|
|
---------- |
---------- |
---------- |
---------- |
|
| Gross
(loss)/profit |
|
10,558 |
(101,571) |
(91,013) |
(66,340,464) |
|
|
|
|
|
| Fixed
Factory Overhead |
|
17 |
15,679,579 |
83,020 |
15,762,599 |
- |
|
..._ |
|
| Administrative
expenses |
18 |
15,849,516 |
396,734 |
16,246,250 |
35,562,761 |
|
| Selling and distribution
expense |
19 |
83,900 |
2,100 |
86,000 |
2,377,265 |
|
|
|
|
---------- |
---------- |
---------- |
---------- |
|
|
|
|
31,612,995 |
481,854 |
32,094,849 |
37,940,026 |
|
|
|
|
---------- |
---------- |
---------- |
---------- |
|
| Operating
(loss) |
|
|
(31,602,437) |
(583,425) |
(32,185,862) |
(104,280,490) |
|
|
|
|
========== |
========== |
|
|
| Financial
charges |
|
20 |
|
126,788,024 |
118,335,267 |
|
|
|
|
---------- |
---------- |
|
|
|
(158,973,886) |
(222,615,757) |
|
| Other
income |
|
21 |
|
|
433,099 |
1,814,226 |
|
|
|
|
---------- |
---------- |
|
| Net
(loss) for the year |
|
|
(158,540,787) |
(220,801,531) |
|
|
|
|
|
|
| TAXATION |
|
|
| Current
year |
|
118,000 |
3,450,000 |
|
| Prior year |
|
|
|
- |
4,284,860 |
|
|
|
|
---------- |
---------- |
|
|
|
118,000 |
7,734,860 |
|
|
|
|
---------- |
---------- |
|
|
|
|
(158,658,787) |
(228,536,391) |
|
| Accumulated
(losses) brought forward |
|
|
(833,474,481) |
(604,938,090) |
|
| Accumulated
(losses) carried |
|
|
---------- |
---------- |
|
| Forward
to Balance Sheet |
|
|
(992,133,268) |
(833,474,481) |
|
|
========== |
========== |
|
|
| Note:
The annexed notes form an integral part of these accounts. |
|
|
|
|
|
Muhammad Islam Munawar |
|
Brig. (Retd.) Pervez Zaka |
|
|
Chief Executive |
|
Director |
|
|
| Karachi:
the 3rd December, 1998. |
|
|
|
| STATEMENT
OF SOURCES AND APPLICATION OF FUNDS |
|
| (CASH
FLOW STATEMENT) |
|
|
| FOR
THE YEAR ENDED JUNE 30, 1998 |
|
|
|
|
|
1998 |
1997 |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
Rupees |
Rupees |
|
|
|
|
| Net
(loss) for the year |
|
(158,540,787) |
(220,801,531) |
|
| Adjustment
for items not involving |
|
| movement
of funds: |
|
|
|
| Depreciation |
|
|
545,147 |
681,995 |
|
| Profit
on sale of fixed assets |
|
- |
(539,089) |
|
|
|
|
---------- |
---------- |
|
|
|
(157,995,640) |
(220,658,625) |
|
| Decrease/(Increase)
in current assets |
|
|
|
| Stores,
spares and loose tools |
|
3,189 |
59,380 |
|
| Stock
in trade |
|
|
22,912,822 |
(897,182) |
|
| Trade debts |
|
|
|
257,853 |
9,409,084 |
|
| Advance,
deposits and prepayments |
|
5,062,204 |
(2,546,005) |
|
|
|
|
|
---------- |
---------- |
|
|
|
28,236,068 |
6,025,277 |
|
| Increase
in current liabilities accrued |
|
| and
other liabilities |
|
127,863,694 |
210,006,317 |
|
|
|
---------- |
---------- |
|
| Net
cash from operating activities before tax |
|
(1,895,878) |
(4,627,031) |
|
| Tax paid |
|
|
332,166 |
3,459,194 |
|
|
|
---------- |
---------- |
|
| Net
cash from operating activities |
|
(2,228,044) |
(8,086,225) |
|
|
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
| Addition
to fixed assets |
|
- |
(378,000) |
|
| Long
term advances |
|
|
1,180,575 |
841,006 |
|
| Long
term deposits |
|
|
20,137 |
1,256 |
|
| Transfer/proceeds
from sale of fixed assets |
|
302,400 |
599,319 |
|
|
|
|
---------- |
---------- |
|
| Net
cash from investing activities |
|
1,503,112 |
1,063,581 |
|
|
|
|
---------- |
---------- |
|
| Net
(decrease)in cash and cash equivalents |
|
(724,932) |
(7,022,644) |
|
|
|
|
| Cash
and cash equivalents at the beginning |
|
| of the year |
|
|
792,475 |
7,815,119 |
|
|
|
|
| Cash
and cash equivalents at the end |
|
---------- |
---------- |
|
| of the year |
|
|
67,543 |
792,475 |
|
|
|
|
|
========== |
========== |
|
|
|
Muhammad Islam Munawar |
|
|
Brig. (Retd.) Pervez Zaka |
|
|
Chief Executive |
|
|
Director |
|
|
| Karachi:
the 3rd December, 1998. |
|
|
|
| OPERATING
RESULT AS PER G.C.P. PROFORMA MA-1 |
|
| FOR
THE YEAR 1997 - 98: (Rs. in '000') |
|
|
|
|
|
TOTAL |
|
|
|
|
VEGETABLE |
|
|
| PARTICULARS |
|
GHEE |
BY-PRODUCT |
1997-98 |
1996-97 |
|
|
|
|
| Process
Loss % |
|
- |
- |
- |
0.88 |
|
| Production
- M. Tons |
|
- |
- |
- |
8.414 |
|
| Sales
- M. Tons |
|
553 |
- |
553 |
7.942 |
|
| Gross
Sales (Rs) |
|
22,265 |
642 |
22,907 |
269,315 |
|
| Less:
Sales Tax (Rs.) |
|
- |
84 |
84 |
360 |
|
|
|
--------------------------------------------------- |
|
| Net
Sales (Rs) |
|
22,265 |
558 |
22,823 |
268,955 |
|
|
|
|
--------------------------------------------------- |
|
|
|
|
|
|
|
| DIRECT
MATERIAL CONSUMED: |
|
| Raw
Material |
|
- |
- |
- |
253,806 |
|
| Chemicals |
|
- |
88 |
88 |
1,933 |
|
| Packing
Material |
|
- |
- |
- |
47,453 |
|
|
|
|
|
|
|
|
|
| VARIOUS
FACTORY OVERHEADS: |
|
