| First Tri-Star Modaraba |
|
|
|
|
|
|
|
| ANNUAL
REPORT 1998 |
|
|
|
| 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 & CO. |
|
|
|
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, 1998. |
|
|
| The
Board of Directors of AR.T. Modaraba Management (Pvt) Ltd., present the 8th
Annual Report of First Tri-Star |
| Modaraba
together with Audited Accounts for the year ended June 30, 1998. |
|
|
| 1.
FINANCIAL RESULTS |
|
|
| Financial
results are summarized as follows: |
|
|
|
|
1998 |
1997 |
|
|
|
|
|
(Rupees in 000's) |
|
|
|
|
| Total
Operating (Loss) |
|
|
|
(448) |
(2,367) |
|
| (Add):
Total Operating Expenses |
|
|
(1,125) |
(4,318) |
|
|
|
|
|
---------- |
---------- |
|
| Operating
(Loss) |
|
|
|
(1,573) |
(6,685) |
|
| Unappropriated
profit brought forward |
|
5,445 |
12,098 |
|
|
|
|
|
---------- |
---------- |
|
| Unappropriated
profit carried forward |
|
3,871 |
5,445 |
|
|
|
========== |
========== |
|
|
| 2. DIVIDEND |
|
| The
Board in its meeting held on December 26, 1998 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. 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, 1999. |
|
|
| 7.
ACKNOWLEDGMENTS |
|
|
|
|
| The
Board would like to place on record its appreciation of hard work of the
staff responsible for the |
|
| Modaraba's
affairs. |
|
|
|
|
On behalf of the Board |
|
|
|
|
|
|
|
ASAD AHMAD |
|
|
|
Executive Director |
|
| Karachi:
the December 26, 1998. |
|
|
|
| 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 [AR.T. MODARABA MANAGEMENT (PVT) LTD.] as at June 30, 1998 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 Modaraba. |
|
|
| (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, 1998 |
|
| 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. |
|
|
|
Chartered Accountants |
|
| Karachi:
the December 17, 1998. |
|
|
|
| Balance
Sheet As At June 30, 1998 |
|
|
|
|
|
|
Note |
1998 |
1997 |
|
|
|
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 |
|
|
3,871,949 |
5,445,041 |
|
|
|
|
---------- |
---------- |
|
|
|
|
22,001,949 |
23,575,041 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
162,801,949 |
164,375,041 |
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
| Short Term Borrowings |
|
4 |
2,071,278 |
4,883,456 |
|
| Creditors, Accrued and
Other Liabilities |
5 |
2,313,892 |
41,079 |
|
| Unclaimed Profit
Distribution |
|
815,439 |
821,303 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
5,200,609 |
5,745,838 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
168,002,558 |
170,120,879 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| TANGIBLE
FIXED ASSETS |
|
|
|
| Operating
Assets in own use |
|
6 |
449,585 |
531,687 |
|
|
|
|
| INVESTMENTS |
|
|
|
|
|
|
| In Shares |
|
7 |
127,965,869 |
139,023,473 |
|
| In
N.I.T. Units |
|
|
|
- |
582,868 |
|
|
|
|
---------- |
---------- |
|
|
|
127,965,869 |
139,606,341 |
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Trading
Stock |
|
8 |
36,062,345 |
2,092,228 |
|
| Trade
Debts (Unsecured considered good) |
|
- |
24,372,858 |
|
| Advances,
Pre-payments and other Receivables |
9 |
2,829,428 |
2,854,197 |
|
| Cash
and Bank Balances |
|
10 |
695,331 |
663,568 |
|
|
|
|
---------- |
---------- |
|
|
|
39,587,104 |
29,982,851 |
|
|
|
|
---------- |
---------- |
|
|
|
|
168,002,558 |
170,120,879 |
|
|
|
|
|
========== |
========== |
|
| Note:
The annexed notes form an integral part of these accounts. |
|
|
|
|
|
MOHAMMED AHMAD ISMAlL |
|
|
|
|
Chief Executive |
|
| Karachi:
the December 17, 1998. |
|
|
A.R.T. Modaraba Management (Pvt) Ltd. |
|
|
|
|
| ASAD AHMAD |
|
TAHIR AHMAD |
|
| Director |
|
Director |
|
| A.R.T.
Modaraba Management (Pvt) Ltd. |
A.R.T. Modaraba
Management (Pvt) Ltd. |
|
|
|
|
|
|
|
|
|
|
|
| Profit
and Loss Account |
|
| For
the year ended June 30, 1998 |
|
|
|
Note |
1998 |
1997 |
|
|
|
Rupees |
Rupees |
|
|
|
|
| Operating
(Loss) |
|
11 |
(447,876) |
2,367,418) |
|
|
|
|
| (Add)/Less: |
Operating Expenses |
|
12 |
443,162 |
1,277,716 |
|
|
Financial charges |
|
13 |
682,054 |
3,040,491 |
|
|
|
|
---------- |
---------- |
|
|
|
(1,125,216) |
(4,318,207) |
|
|
|
---------- |
---------- |
|
|
|
(1,573,092) |
(6,685,625) |
|
| Prior
Year Adjustment |
|
- |
32,600 |
|
|
|
---------- |
---------- |
|
|
|
(1,573,092) |
(6,653,025) |
|
| Un-appropriated
profit brought forward |
|
5,445,041 |
12,098,066 |
|
|
|
---------- |
---------- |
|
| Profit
available for appropriation |
|
3,871,949 |
5,445,041 |
|
|
|
========== |
========== |
|
|
| Note:
The annexed notes form an integral part of these accounts. |
|
|
| MOHAMMED
AHMAD ISMAlL |
ASAD AHMAD |
|
TAHIR AHMAD |
|
| Chief
Executive |
Director |
|
Director |
|
| A.R.T.
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, 1998. |
|
|
|
|
1998 |
1997 |
|
|
|
Note |
Rupees |
Rupees |
|
|
|
|
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
| Profit
before Taxation |
|
|
|
(1,573,092) |
(6,653,025) |
|
|
| Add:
Items not involving movement of cash: |
|
|
|
|
|
|
|
|
| Amortization
of leased assets |
|
|
- |
508,463 |
|
|
| Depreciation |
|
|
82,102 |
99,262 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
(1,490,990) |
(6,045,300) |
|
|
|
|
|
|
|
| CHANGES
OF WORKING CAPITAL |
|
14 |
|
|
|
| (Increase)/Decrease
in Current Assets |
|
(9,572,490) |
23,443,777 |
|
|
| Increase/(Decrease)
in Current Liabilities |
|
2,272,813 |
(1,602,471) |
|
|
|
|
|
---------- |
---------- |
|
|
| Net
changes in Working Capital |
|
|
(7,299,677) |
21,841,306 |
|
|
|
|
|
---------- |
---------- |
|
|
| Net
Cash Flow from Operating Activities |
|
15,796,006 |
(37,797,430) |
|
|
|
|
|
|
|
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
|
|
|
| Purchase
of investments |
|
(35,480) |
(156,300) |
|
|
| Sale
of investments |
|
11,675,952 |
18,028,247 |
|
|
|
|
---------- |
---------- |
|
|
| Net
Cash Flow from Investing Activities |
|
11,640,472 |
17,871,947 |
|
|
|
|
|
|
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
|
|
|
| Lease
Security Deposit |
|
|
- |
(35,550) |
|
|
| Profit
distributed |
|
|
(5,863) |
(1,119,983) |
|
|
|
|
|
---------- |
---------- |
|
|
| Net
Cash Flow from Financing Activities |
|
(5,863) |
(1,155,533) |
|
|
|
|
|
|
|
| Net
Increase/(Decrease)in cash & cash equivalent |
2,843,942 |
32,512,420 |
|
|
| Cash
and cash equivalent at the beginning of the year |
(4,219,888) |
(36,732,308) |
|
|
|
|
|
---------- |
---------- |
|
|
| Cash
and cash equivalent at the end of June 30 |
15 |
(1,375,946) |
(4,219,888) |
|
|
|
|
|
|
|
========== |
========== |
|
|
|
|
| Notes
to the Accounts |
|
| For
the year ended June 30, 1998 |
|
|
| 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. |
|
|
|
| (vii)
Deferred Cost: |
|
|
| Preliminary
expenses and incurred on the issue of Modaraba certificates will be written
off |
|
| over
the period of 5 years. |
|
|
|
|
|
1998 |
1997 |
|
|
|
|
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 |
|
|
|
| From
Commercial Bank (Secured) |
|
2,071,278 |
488,346 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
|
1997 |
1998 |
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| 5.
CREDITORS, ACCRUED AND OTHER LIABILITIES |
|
|
|
|
|
|
|
| Trade
Creditors |
|
2,206,509 |
- |
|
| Accrued
Expenses |
|
107,383 |
20,949 |
|
| Other
Liabilities |
|
- |
20,130 |
|
|
|
---------- |
---------- |
|
|
|
|
|
2,313,892 |
41,079 |
|
|
|
========== |
========== |
|
|
| 6. DEPRECIATION SCHEDULE OF ASSETS IN OWN
USE |
|
|
| PARTICULARS |
|
Cost |
Addition/ |
Cost |
Rate |
Depreciation |
Accumulated |
Written |
|
|
|
as on |
(Disposal) |
as on |
% |
Charged for |
Depreciation |
Down value |
|
|
|
01.07.97 |
during |
01.07.98 |
|
year |
as on |
on 30.06.98 |
|
|
|
|
the year |
|
30.06.98 |
|
|
|
| Motor Car |
|
896,150 |
- |
896,150 |
20% |
56,481 |
670,226 |
225,924 |
|
| Furniture & |
|
|
|
|
|
|
| Fixture |
|
107,900 |
- |
107,900 |
10% |
6,329 |
50,938 |
56,962 |
|
| Motorcycle |
|
29,400 |
- |
29,400 |
20% |
1,387 |
23,851 |
5,549 |
|
| Office
Equipment |
256,432 |
- |
256,432 |
10% |
15,555 |
116,436 |
139,996 |
|
| Computer |
|
43,700 |
- |
43,700 |
10% |
2,350 |
22,546 |
21,154 |
|
|
|
----------------------------------------------------------------------------------- |
|
| 1998 Rupees |
|
1,333,582 |
- |
1,333,582 |
|
82,102 |
883,997 |
449,585 |
|
|
|
=================================================================================== |
|
| 1997 Rupees |
|
1,333,582 |
- |
1,333,582 |
|
99,262 |
801,895 |
531,687 |
|
|
=================================================================================== |
|
|
|
|
| 7.
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 |
|
|
|
|
| 1998 |
1997 |
|
|
1998 |
1997 |
|
|
|
|
| 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 |
5,000 |
12th ICP Mutual Fund Ltd. |
160,640 |
160,640 |
|
| 302 |
302 |
First Crescent Modaraba |
|
4,545 |
4,545 |
|
| 1,599 |
37,537 |
First Grindlays Modaraba |
32,381 |
820,551 |
|
| 70 |
25,570 |
First IBL Modaraba |
|
1,860 |
681,180 |
|
| 1,280 |
1,280 |
Orix Leasing Pakistan
Ltd. |
72,893 |
72,893 |
|
| 9,136 |
35,533 |
Saudi Pak Leasin9 Ltd. |
|
215,904 |
923,304 |
|
| 244 |
13,733 |
Askari Commercial Bank
Ltd. |
4,215 |
462,649 |
|
| 1,368 |
93,690 |
Bank AI-Habib Ltd. |
|
49,777 |
3,918,127 |
|
| - |
10,000 |
Crescent Investment Bank
Ltd. |
- |
469,390 |
|
| 400 |
400 |
Islamic Investment Bank
Ltd. |
2,757 |
2,757 |
|
| 49 |
4,549 |
Muslim Commercial Bank
Ltd. |
1,986 |
185,496 |
|
| 285 |
63,238 |
Soneri Bank Ltd. |
|
9,470 |
2,526,950 |
|
| 500 |
500 |
Business & Ind.
Insurance Co. Ltd. |
5,000 |
5,000 |
|
| 40,750 |
40,750 |
Azam Textile Mills Ltd. |
|
741,875 |
741,875 |
|
| 2,600 |
33,100 |
Faisal Spinning Mills
Ltd. |
81,013 |
1,032,003 |
|
| 17,671 |
17,671 |
Mohib Textile Mills Ltd. |
897,530 |
897,530 |
|
| 10,000 |
10,000 |
Sana Industries Ltd. |
|
953,375 |
953,375 |
|
| 25,000 |
25,000 |
Umer Fabrics Ltd. |
|
538,075 |
538,075 |
|
| 102,350 |
102,350 |
Mohib Exports Ltd. |
|
2,436,070 |
2,436,070 |
|
| 25,151 |
27,654 |
Crescent Textile Mills
Ltd. |
1,265,165 |
1,451,275 |
|
| 21,758 |
21,758 |
Gul Ahmed Textile Mills
Ltd. |
670,019 |
670,019 |
|
| 9,127 |
8,298 |
Jubilee Spinning &
Weaving Mills Ltd. |
141,414 |
141,414 |
|
| 15,525 |
15,525 |
Kohinoor Industries Ltd. |
610,100 |
610,100 |
|
| 49,230 |
49,230 |
Mohd. Farooq Textile
Mills Ltd. |
1,667,083 |
1,667,083 |
|
| 10,000 |
10,000 |
Sunshine Cloth Ltd. |
|
160,900 |
160,900 |
|
| 6,600 |
6,600 |
Dewan Sugar Mills Ltd. |
|
431,036 |
431,036 |
|
| 600 |
600 |
Mian Mohd. Sugar Mills
Ltd. |
6,000 |
6,000 |
|
| 5,520 |
5,520 |
Hino Pak Motors Ltd. |
|
455,850 |
455,850 |
|
| 7,216 |
8,275 |
Engro Chemical (Pakistan)
Ltd. |
305,854 |
403,334 |
|
| 10,000 |
10,000 |
Hoechst Pakistan Ltd |
|
1,606,400 |
1,606,400 |
|
| 112 |
100 |
Packages Ltd. |
|
7,816 |
7,816 |
|
| 2,000 |
2,000 |
Cherat Cement Ltd. |
|
83,600 |
83,600 |
|
| 5,000 |
5,000 |
Tri-Pack Films Ltd. |
|
101,000 |
101,000 |
