| Al-Noor Sugar Mills Limited |
|
|
|
|
|
|
|
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| Annual
Report 1998 |
|
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| CONTENTS |
|
|
| COMPANY INFORMATION |
|
| NOTICE
OF MEETING |
|
| DIRECTORS'
REPORT |
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
| BALANCE SHEET |
|
| PROFIT AND LOSS ACCOUNT |
|
| CASH FLOW STATEMENT |
|
| NOTES ON ACCOUNTS |
|
| PATTERN
OF SHARE HOLDING |
|
|
|
| COMPANY
INFORMATIONS |
|
|
| BOARD
OF DIRECTORS |
|
| MR.
ELLIAS H. ZAKARIA |
|
Chairman |
|
| MR.
ISMAIL H. ZAKARIA |
|
Managing Director |
|
| MR.
SULEMAN AYOOB |
|
Resident Director |
|
| MR.
YUSUF AYOOB |
|
| MR.
A. AZIZ AYOOB |
|
Marketing Director |
|
| MR.
A. WAHAB JAFFAR |
|
| MR.
NOOR MOHAMMAD ELLIAS |
|
| MR.
ZIA. I. ZAKARIA |
|
| MR.
SALIM AYOOB |
|
| MR.
S. QAMAR ALI ZAIDI |
|
(N.I.T. Nominee) |
|
| MR.
SAIFULLAH KHAN |
|
(PICIC Nominee) |
|
|
| COMPANY
SECRETARY |
|
| MR.
M. YAKOOB ADMANEY |
|
| FCIS, FCMA. |
|
|
| AUDITORS |
|
| DAUDALLY
LALANI & COMPANY |
|
| Chartered
Accountants |
|
|
| LEGAL
ADVISOR |
|
| MOHAMMAD
JAMEEL CHOUDRY |
|
| Bar at Law |
|
|
| REGISTERED
OFFICE |
|
| 96-A
SINDHI MUSLIM SOCIETY, |
|
| KARACHI-74400 |
|
|
| FACTORY |
|
| SHAHPUR
JAHANIA, P.O. NOOR JAHANIA, |
|
| TALUKA
MORO, DISTT. NAWABSHAH. |
|
|
| STATEMENT
UNDER SECTION 160 OF THE |
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| COMPANIES
ORDINANCE, 1984 RELATING TO DIRECTORS' REMUNERATION |
|
|
| This
statement set out material facts concerning the approval of remuneration of
Directors to be transacted |
|
| at
the meeting. |
|
|
| Shareholders
approval will be sought for the payment of remuneration and provision of
certain facilities to |
|
| the
Managing Director, Resident Director and Marketing Director as approved by
the Board in their meeting |
|
| held
on 13th February, 1999. For this purpose, it is proposed to move the
following resolution at the meeting: |
|
|
| Resolved
that the Company hereby approve and authorize payment as remuneration to the
Working Directors |
|
| as follow: |
|
|
| CHIEF
EXECUTIVE: |
|
|
| a)
Monthly Salary - Rs. 50,000/= with an increment not exceeding 20% per annum. |
|
| b)
All fringe benefits and perquisites as are allowed to senior executives of
the Company. |
|
| c)
Travelling for self and family after every two years for recreation. |
|
|
| RESIDENT
DIRECTOR AND MARKETING DIRECTOR: |
|
|
| a)
Monthly Salary - Rs. 40,000/= each with an increment not exceeding 20% per
annum. |
|
| b)
All fringe benefits and perquisites as are allowed to senior executives of
the Company. |
|
| c)
Travelling for self and family after every two years for recreation. |
|
|
|
|
|
(M. YAKOOB ADMANEY) |
|
| Karachi:
February 13, 1999 |
|
|
COMPANY SECRETARY |
|
|
|
| NOTICE
OF MEETING |
|
|
| Notice
is hereby given that the 29th Annual General Meeting of AL-NOOR SUGAR MILLS
LIMITED will be held at |
|
| the
Registered Office of the Company at 96-A, Sindhi Muslim Society, Karachi on
Wednesday, March 31, 1999 at |
|
| 12.00
noon to transact the following business: |
|
|
| 1.
To read and confirm the Minutes of the 28th Annual General Meeting of the
Company held on May 29, |
|
| 1998. |
|
|
| 2.
To read and consider the Accounts for the year ended September 30, 1998 and
reports of Directors and |
|
| Auditors
thereon. |
|
|
| 3.
To appoint Auditors and to fix their remuneration. |
|
|
| 4.
To elect directors of the Company under section 178 of the Companies
Ordinance, 1984. The number of |
|
| directors
fixed by the Board is 10. The retiring directors are Mr. Ellias H. Zakaria,
Mr. Ismail H. Zakaria, Mr. |
|
| Yusuf
Ayoob, Mr. Suleman Ayoob, Mr. A. Aziz Ayoob, Mr. A. Wahab Jaffar, Mr. Noor
Mohammed Ellias, |
|
| Mr.
Zia I. Zakaria, Mr. Salim Ayoob and Mr. S. Qamar Ali Zaidi. |
|
|
| 5.
To consider and approve the remuneration of Chief Executive and Working
Directors of the Company for a |
|
| period
of three years. |
|
|
| 6.
To transact any other business with permission of the chair. |
|
|
| The
Shares Transfer Book of the Company will remain closed from March 15, 1999 to
March 31, 1999 (both |
|
| days
inclusive). |
|
|
|
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|
By Order of the Board |
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|
|
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| Karachi:
February 13, 1999 |
|
|
(M. YAKOOB ADMANEY) |
|
|
|
|
COMPANY SECRETARY |
|
|
| NOTE: |
|
|
| 1.
A member of the Company entitled to attend and vote may appoint any member as
his/her proxy to attend |
|
| and
vote on his/her behalf. PROXIES MUST BE RECEIVED AT THE REGISTERED OFFICE OF
THE |
|
| COMPANY
NOT LESS THAN 48 HOURS BEFORE THE MEETING. |
|
|
| 2.
Nomination for election for the office of directors should be received at the
Registered Office of the |
|
| Company
not less than 14 days before the Annual General Meeting. |
|
|
| 3.
Shareholders are requested to inform the Company of any change in their
address immediately. |
|
|
| 4.
A statement under section 160 of the Companies Ordinance, 1984 pertaining to
Directors' |
|
| Remuneration
is attached. |
|
|
|
| DIRECTORS'
REPORT |
|
|
| To: |
|
|
| The
Shareholders, |
|
|
| We
submit before you the 29th Annual Report together with the Audited Accounts
for the year ended September 30, |
|
| 1998.
Your Company incurred a loss of Rs.16.055 million. After adjusting last
year's unappropriated profit of |
|
| Rs.5.115
million, a loss of Rs. 10.940 million is carried over to the Balance Sheet. |
|
|
| SUGAR MILL: |
|
| Your
factory started crushing on November 22, 1997 and crushed 763,190 metric tons
(1997: 557,699 metric tons) of |
|
| sugarcane.
The sugar produced was 63,820 metric tons (1997:47,335 metric tons) with an
average recovery of 8.35% |
|
| (1997:
8.50%). Molasses produced was 42,361 metric tons (1997:26,696 metric tons).
During the year, Government |
|
| increased
the support price of sugarcane from Rs.24.50 to Rs.36/= per 40 kg. Quality
premium was also raised from |
|
| paisa
27 to paisa 32 for 0.1% recovery over and above the 8.7% recovery benchmark
set by the Government. The |
|
| increase
in support price, therefore raised the cost of production tremendously. The
surplus production of sugar in the |
|
| country
and the late announcement by the Government allowing the export of sugar,
resulted in heavy inventory and |
|
| financial
costs. Both the factors mentioned above effected the profitability of the
Company adversely and your |
|
| Company
incurred a loss. |
|
|
| During
the year, your Company exported 29,012 metric tons of sugar and earned US$
8,236,600/= dollars Foreign |
|
| Exchange
for the country. |
|
|
| During
the year, the matter relating to excise duty benefit corresponding to year
1988-89 was decided by the |
|
| Honorable
Sindh High Court and the verdict has been given in the favour of your
Company. Accordingly, your |
|
| Company
has moved an application for the release of the Bank Guarantee from Collector
Central Excise and Land |
|
| Custom
Hyderabad. |
|
|
| During
the year, the new boiler purchased from Ittefaq Foundries (Pvt) Limited has
still not given the desired results |
|
| and
was running at low pressure instead of high pressure. This reduced efficiency
thereby effecting production. The |
|
| management
has taken great measures to improve and streamline the boiler and machinery,
thus improving efficiency |
|
| during
the season 1998-99. |
|
|
| MEDIUM
DENSITY FIBRE BOARD (MDFB) PLANT: |
|
| During
the year, 14,608 metric tons of Lasani Wood (1997:12,638 metric tons) in
various thicknesses were produced. |
|
| The
Company, after hard work and dedication had developed a large local market.
Unfortunately, foreign countries |
|
| such
as Malaysia and Indonesia, due to their currency devaluation dumped large
quantities of MDF in the local |
|
| market.
This adversely effected sales. However, the management has taken aggressive
measures to compete with |
|
| imported
MDF. We are pleased to inform you that Lasani Wood made through new processes
has given very |
|
| favourable
results. Your management feels, the steps taken to increase quality, improved
production methods and |
|
| aggressive
marketing will allow Lasani Wood to regain and increase its share in the
local market. Inshallah. |
|
|
| ELECTION
OF DIRECTORS: |
|
| As
the term of existing directors expires, election of directors for fresh term
of three years will be held in the Annual |
|
| General
Meeting under section 178(1) of the Companies Ordinance, 1984. The number of
elected directors fixed by |
|
| the
Board of Directors is 10. The retiring directors are Mr. Ellias H. Zakaria,
Mr. Ismail H. Zakaria, Mr. Yusuf Ayoob, |
|
| Mr.
Suleman Ayoob, Mr. A. Aziz Ayoob, Mr. A. Wahab Jaffer, Mr. Noor Mohammed
Ellias, Mr. Zia I. Zakaria, Mr. |
|
| Salim
Ayoob and Mr. S. Qamar Ali Zaidi. Mr. Saifullah Khan, PICIC nominee appointed
under section 182 of the |
|
| Companies
Ordinance, 1984 being a 1oanee director need not to be retired. |
|
|
| COMPUTER
& Y2K: |
|
| The
management has taken necessary corrective actions for the computer problem
for the Y2K. It is expected that by |
|
| the
end of 1999, majority of the computers will be replaced with new versions.
This involves a capital outlay of Rs. 1.5 |
|
| million. |
|
|
| LABOUR
MANAGEMENT RELATIONS: |
|
| We
are happy to report that labour management relations has improved
considerably during the year under report. |
|
| Your
directors appreciate the spirit of cooperation shown by the workers and hope
it will continue. |
|
|
| STAFF: |
|
| Your
directors also place on record the deep appreciation of hard work, loyalty
and devotion to duty shown by the |
|
| officers
and staff of the Company. |
|
|
| AUDITORS: |
|
| M/s.
Daudally Lalani and Company, Chartered Accountants, Auditors of the Company,
retire and offer their services |
|
| for
the ensuing year. |
|
|
| FUTURE
OUTLOOK: |
|
| For
the year 1998-99, the Government has not changed the sugarcane support price.
The current crushing season |
|
| started
on November 13, 1998 and crushing upto February 12, 1999 was to the extent of
532,847 metric tons of |
|
| sugarcane
with an average recover of 7.59%. The sugar produced upto February 12, 1999
was to the extent of 39,250 |
|
| metric
tons. |
|
|
| The
new tandem has shown satisfactory results during the current season. We are
expecting that Insha Allah, more |
|
| crushing
will be done during the season as compared to last season. |
|
|
| Due
to climatic conditions, the recovery of sugarcane has decreased throughout
Pakistan. Al-Noor's recovery, |
|
| therefore
decreased as well in comparison to the previous year. |
|
|
| The
management has introduced a new variety of sugarcane with a higher sucrose
content and is trying to multiply the |
|
| seeds
for distribution amongst the growers. It is expected that with this scheme,
Insha Allah, the improved varieties of |
|
| sugarcane
will take the place of weak varieties grown in the vicinity of your mill and
give a higher recovery. |
|
|
| The
production of Lasani Wood started late due to high level of inventory because
of excess level of import and |
|
| dumping
of MDFB in the country. The production upto February 12, 1999 of Lasani Wood
was to the extent of 3,111 |
|
| metric
tons. All out efforts are being made to achieve higher levels of capacity
utilization. Representation to the |
|
| concerned
agencies has been made by the Company not to allow dumping of MDF by Far
Eastern countries in |
|
| Pakistan. |
|
|
|
|
|
|
FOR AND ON BEHALF OF THE BOARD OF DIRECTORS |
|
|
|
|
|
|
| Karachi:
February 13, 1999 |
|
|
(ISMAIL H. ZAKARIA) |
|
|
|
|
MANAGING DIRECTOR |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed Balance Sheet of Al-Noor Sugar Mills Limited as at
September 30, 1998 and the related |
|
| Profit
and Loss Account and Cash Flow Statement, together with the n6tes 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 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 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 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)
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, 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 loss and the cash flow |
|
| for
the year then ended; and |
|
|
| (d)
in our opinion, no Zakat was deductible at source under Zakat and Ushr
Ordinance, 1980. |
|
|
|
|
DAUDALLY LALANI & CO. |
|
| Karachi:
February 13, 1999. |
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET AS AT 30TH SEPTEMBER, 1998 |
|
|
|
|
Note |
1998 |
1997 |
|
|
|
|
|
(Rupees in
thousand) |
|
|
|
|
|
| SHARE
CAPITAL AND RESERVES |
|
|
| Authorised
Capital |
|
|
|
| 20,000,000
ordinary shares of Rs. 10.00 each |
|
200,000 |
200,000 |
|
|
|
|
========== |
========== |
|
| Issued,
subscribed and paid-up capital |
2 |
185,703 |
185,703 |
|
|
|
|
| Reserves: |
|
|
|
|
| General
reserve |
|
170,000 |
170,000 |
|
| Unappropriated
(loss)/profit |
|
(10,940) |
5,114 |
|
|
|
---------- |
---------- |
|
|
|
|
159,060 |
175,114 |
|
|
|
|
---------- |
---------- |
|
|
|
|
344,763 |
360,817 |
|
|
|
|
| REDEEMABLE
CAPITAL |
|
3 |
79,205 |
48,748 |
|
| LONG
TERM LOANS |
|
4 |
- |
10,355 |
|
| OBLIGATIONS
UNDER FINANCE LEASE |
|
5 |
103,915 |
120,993 |
|
|
|
|
|
| DEFERRED
LIABILITIES |
|
6 |
109,463 |
113,392 |
|
|
|
|
|
| CURRENT
LIABILITIES AND PROVISIONS |
|
|
| Short
term running finance and borrowings |
7 |
566,159 |
450,453 |
|
| Current
maturity of redeemable capital, |
|
| long
term loans and finance lease |
|
8 |
84,315 |
100,775 |
|
| Creditors
accrued and other liabilities |
9 |
112,623 |
110,798 |
|
| Taxation |
|
|
2,363 |
7,658 |
|
|
|
|
---------- |
---------- |
|
|
|
|
765,460 |
669,684 |
|
| CONTINGENCIES
AND COMMITMENTS |
|
10 |
- |
- |
|
|
|
|
---------- |
---------- |
|
|
|
|
1,402,806 |
1,323,989 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
Note |
1998 |
1997 |
|
|
|
|
|
(Rupees in
thousand) |
|
| FIXED
ASSETS |
|
|
|
| Operating
assets |
|
11 |
524,466 |
541,542 |
|
| Capital
work-in-progress |
|
12 |
286,880 |
254,476 |
|
|
|
|
---------- |
---------- |
|
|
|
|
811,346 |
796,018 |
|
|
|
|
|
|
| LONG
TERM INVESTMENT |
|
13 |
26,631 |
26,631 |
|
| LONG
TERM LOANS AND ADVANCES |
|
14 |
206 |
404 |
|
| LONG
TERM DEPOSITS |
|
15 |
10,033 |
11,765 |
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Stores
and spares |
|
16 |
110,129 |
117,605 |
|
| Stock-in-trade |
|
17 |
212,406 |
269,576 |
|
| Trade debts |
|
18 |
87,004 |
7,007 |
|
| Loans,
advances, prepayments and |
|
|
| other
receivables |
|
19 |
51,188 |
53,849 |
|
| Duty
draw back receivables |
|
|
78,804 |
- |
|
| Bank
and cash balances |
|
20 |
15,059 |
41,134 |
|
|
|
|
---------- |
---------- |
|
|
|
|
554,590 |
489,171 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
1,402,806 |
1,323,989 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
|
|
|
|
|
|
|
ISMAIL H. ZAKARIA |
|
|
|
|
|
Chief Executive |
|
|
|
|
|
YUSUF AYOOB |
|
|
SULEMAN AYOOB |
|
|
Director |
|
|
Director |
|
|
|
|
|
|
| Karachi:
February 13, 1999. |
|
|
|
|
|
|
|
|
|
| PROFIT
AND LOSS ACCOUNT FOR THE YEAR |
|
| ENDED
30TH SEPTEMBER, 1998 |
|
|
|
Note |
1998 |
1997 |
|
|
|
|
|
(Rupees in
thousand) |
|
|
|
|
| Sales |
|
21 |
1,332,797 |
854,852 |
|
| Cost
of sales |
|
22 |
1,100,463 |
689,571 |
|
|
|
|
---------- |
---------- |
|
| Gross
profit |
|
|
232,334 |
165,281 |
|
|
|
|
| Administration
and selling expenses |
|
23 |
106,587 |
65,250 |
|
|
|
|
---------- |
---------- |
|
| Operating
profit |
|
|
125,747 |
100,031 |
|
| Other
income |
|
24 |
4,740 |
6,056 |
|
|
|
|
---------- |
---------- |
|
|
|
|
130,487 |
106,087 |
|
|
|
|
| Financial
charges |
|
25 |
145,593 |
106,883 |
|
| Other
charges |
|
26 |
739 |
1,041 |
|
|
|
|
---------- |
---------- |
|
|
|
146,332 |
107,924 |
|
|
|
|
---------- |
---------- |
|
| Loss
before taxation |
|
|
(15,845) |
(1,837) |
|
| Taxation |
|
27 |
209 |
- |
|
|
|
|
---------- |
---------- |
|
| Loss
after taxation |
|
(16,054) |
(1,837) |
|
| Unappropriated
profit brought forward |
|
5,114 |
6,951 |
|
|
|
|
---------- |
---------- |
|
| Unappropriated
(loss)/profit carried forward |
|
(10,940) |
5,114 |
|
|
|
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
ISMAIL H. ZAKARIA |
|
YUSUF AYOOB |
|
SULEMAN AYOOB |
|
|
Chief Executive |
|
Director |
|
Director |
|
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED 30TH SEPTEMBER, 1998 |
|
|
|
|
|
1998 |
1997 |
|
|
|
|
|
(Rupees in
thousand) |
|
|
|
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
|
| Cash
(used in)/generated from operations |
33 |
64,603 |
(140,108) |
|
| Taxes paid |
|
|
(9,287) |
(3,194) |
|
| Payment
for staff retirement benefits |
|
(909) |
(185) |
|
| Financial
charges paid |
|
|
(137,224) |
(95,568) |
|
| Long
term loans and advances |
|
198 |
264 |
|
| Long
term deposits |
|
1,732 |
2,397 |
|
|
|
---------- |
---------- |
|
| Net
cash outflow from operating activities |
|
(80,887) |
(236,394) |
|
|
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
|
| Fixed
capital expenditure |
|
(48,084) |
(44,135) |
|
| Sale
proceeds of operating assets |
|
626 |
672 |
|
|
|
---------- |
---------- |
|
| Net
cash outflow from investing activities |
|
(47,458) |
(43,463) |
|
|
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
|
| Redeemable
capital |
|
75,000 |
- |
|
| Obligation
under finance lease |
|
12,460 |
46,776 |
|
| Repayment
of redeemable capital, long |
|
|
|
| term
loans and finance lease |
|
(100,895) |
(113,576) |
|
| Short
term running finance and borrowings |
|
115,706 |
353,937 |
|
| Dividend |
|
|
(1) |
(4) |
|
|
|
|
---------- |
---------- |
|
| Net
cash inflow from financing activities |
|
102,270 |
287,133 |
|
|
|
|
---------- |
---------- |
|
| Net
(decrease)/increase in cash and cash equivalents |
(26,075) |
7,276 |
|
| Cash
and bank balance at the beginning of the year |
41,134 |
33,858 |
|
|
|
---------- |
---------- |
|
| Cash
and bank balance at the end of the year |
|
15,059 |
41,134 |
|
|
|
|
|
|
========== |
========== |
|
|
|
ISMAlL H. ZAKARIA |
|
YUSUF AYOOB |
|
SULEMAN AYOOB |
|
|
Chief Executive |
|
Director |
|
Director |
|
|
|
|
|
|
|
| NOTES
TO THE ACCOUNTS FOR THE YEAR |
|
| ENDED
SEPTEMBER 30, 1998 |
|
|
|
|
|
| LEGAL
STATUS AND OPERATIONS |
|
|
| The
Company is a public company incorporated in Pakistan under the Companies Act,
1913 (now Companies |
|
| Ordinance,
1984). Its shares are quoted on Karachi and Lahore Stock Exchange in Pakistan
and is principally |
|
| engaged
in the production and sale of sugar and medium density fibre board. |
|
|
|
|
| Summary
of Significant accounting policies: |
|
|
|
|
|
| 1.1
Accounting convention: |
|
|
| These
accounts have been prepared under the historical cost convention except that
certain exchange |
|
| differences
have been included in fixed assets referred to in Note 1.8. |
|
|
|
|
| 1.2
Taxation: |
|
|
|
| Provision
for current taxation for the year is based on taxable income at the current
rate of taxation after |
|
| taking
into account tax credits available, if any. |
|
|
|
|
| The
company accounts for deferred taxation on all material timing differences
using the liability method. |
|
| However,
deferred tax to certain extent is not provided if it can be established with
reasonable probability |
|
| that
these timing differences will not reverse in the foreseeable future. |
|
|
|
|
| 1.3
Fixed assets: |
|
|
|
|
|
|
| (a) OWN |
|
|
|
| Operating
assets except freehold land are stated at cost less accumulated depreciation.
Freehold |
|
| land
and capital work in progress are stated at cost. Cost in relation to certain
fixed assets |
|
| including
capital work in progress signifies historical cost and exchange differences
referred to in |
|
| Note 1.8. |
|
|
|
|
|
|
| Depreciation
is charged to income at normal tax rates on the written down value of the
assets as |
|
| affected
on account of exchange differences referred to in Note 1.8. Full year's
depreciation is |
|
| charged
on all assets in the year of acquisition, except for sugar unit plant and
machinery on which |
|
| depreciation
is charged on the basis of actual operating days of factory. No depreciation
is charged |
|
| on
assets in the year of disposal. |
|
|
|
|
|
| Maintenance
and normal repairs are charged to income as and when incurred, major renewals
and |
|
| improvements
are capitalized and the assets so replaced, if any, are retired. |
|
|
|
|
