Fateh Sports Wear Limited
Annual Reports 2003
CONTENTS
Notice of Annual General Meeting
Company Profile
Directors' Report to the Members
Statement of Compliance
Auditors' Report to the Members
Review Report to the Members
Balance Sheet
Profit & Loss Account
Statement of Changes in Financial Position
Statement of Changes in Equity
Notes to the Accounts
Pattern of Shareholdings
Details of Pattern of Shareholdings
Notice of Annual General Meeting
Notice is hereby given that the 20th Annual General Meeting of the Shareholders df
FATEH SPORTS WEAR LIMITED, will be held on Monday the 20th October, 2003 at 8:00 a.m.
at the registered office of the Company at Mirpurkhas Road, Hyderabad for the purpose of
transacting the following business:-
1.    To confirm the minutes of  the last Extraordinary General Meeting of the Company held
on 9th June, 2003.
2.    To receive and adopt the Directors' Report and Audited Balance Sheet together with the Profit
& Loss Account of the Company for the year ended 30th June, 2003.
3.    To appoint Auditors for the year 2003-2004 and fix their remuneration.
4.    Any other business with the permission of the chair.
By order of the Board
FATEH SPORTS WEAR LIMITED
Hyderabad                                                                           MUHAMMAD NISAR
29th September, 2003                                                                    Company Secretary
NOTES:
1.    The Share transfer books of the Company will remain closed for 7 days from 14th to 20th
October, 2003 (both days inclusive).
2.    Any member of the Company who is entitled to attend and vote may appoint any other member
of the Company as his/her Proxy to attend and vote in his / her stead.
3.    Proxies in order to be effective must be received by the Company at the Registered Office
not later than 48 hours before the time of holding the meeting.
4.    Shareholders are required to notify the change of their address, if any, immediately.
BOARD:
CHAIRMAN / CHIEF EXECUTIVE
Mr. Rauf Alam
DIRECTORS
Mr. Aftab Alam
Mr. Saeed Alam
Mr. Muhammad Mohsin
Mr. Muhammad Naveed
Mr. Faraz Alam
Mrs. Najma Roshan
SECRETARY
Mr. Muhammad Nisar
CHIEF FINANCIAL OFFICER
Mr. Muhammad Ishaque Essani
AUDIT COMMITTEE
Mr. Saeed Alam                           (Chairman)
Mr. Muhammad Mohsin              (Member)
Mr. Muhammad Naveed              (Member)
AUDITORS
M/s. Shahid Hussain & Co.
Chartered Accountant,
Karachi.
BANKERS
Muslim Commercial Bank Limited.
Askari Commercial Bank Limited.
Allied Bank of Pakistan Limited.
REGISTERED OFFICE
Mirpurkhas Road,
Hyderabad.
BRANCH OFFICE
7th Floori Suit #. 706,,
Business & Finance Centre,
I.I. Chundrigar Road,
Karachi.
PLANT
Kali Mori,
Hyderabad.
Company Profile
Directors" Report to the Members
On behalf of the Board of Directors, I welcome you on the 20th Annual General Meeting of your
company and present before you the audited accounts and Auditors' Report for the year ended on
June 30, 2003.
Management is making all out efforts to receive stuck-up funds from abroad so that it could come
out of financial constraints and to start production activities.The company intends to revive its
production activities soon after realization of funds and efforts are being made to receive the funds
in forthcoming year. •
During the year under review company sales were Rs. 0.565 million and incurred loss of Rs.1.723
million, mainly due to write off finished goods of Rs. 5.512 million. Accumulated Loss of Rs. 64.634
million has been transferred to Balance Sheet.
The company accounted for up-to-date mark-up received and paid to its associated companies.
Deferred Taxation Policy has been framed according to International Accounting Standards. The
management of the company has prepared these accounts on a going concern basis and.will
financially support the company.
Audit committee, which was approved by the Board of Directors in September last year, comprise of
three members from the Board. The Audit Committee reviews the annual, half yearly and quarterly
financial statements and other matters of significant nature. A total of five meetings of Audit
Committee were held during period under review.
During the year four (04) meetings of the Board of Directors were held, the attendance of Board
members was as follows;
S.NO.	NAME OF DIRECTOR		MEETING ATTENDED
1	Mr. Rauf Alam		4
2	Mr. Aftab Alam		4
3	Mr. Saeed Alam		4
4	Mr. Muhammad Mohsin		4
5	Mr. Muhammad Naveed		4
6	Mr. Faraz Alam		- (appointed in June, 2003)
7	Mrs. Najma Roshan		-
In compliance with the provisions of the code, the Board members are to place following statement
on record.
•     The financial statements presents fairly its state of affairs.
•     The Company maintain proper books of accounts and accounting policies constantly applied
except policy of depreciation due to non production.
•     The International Accounting Standards, as applicable in Pakistan, have been followed in
preparation of Financial Statements and any departure therefrom has been adequately
disclosed.
•     The System of Internal Control, which was in place, is being continuously reviewed by internal
audit and other such procedures. The process of review will continue with the objective to
further improve.
•     There are no significant doubts upon the company's ability to continue as a going concern .
•     There has been no material departure from the best practices of corporate governance, as
detailed in the listing regulations.
Pattern of Shareholding required under section 236 of the Companies Ordinance, 1984 is annexed.
AUDITORS OBSERVATION
1.    The'company has charged depreciation at half the rate on fixed assets due to non-production.
2.    No provision has been made for receivables amounting to Rs.25.323 million because these
amount is recoverable soon after realization of outstanding debts.
The retiring Auditors M/s. Shahid Hussain & Company, Chartered Accountants, being eligible offer
themselves for reappointment.
		1997-98	1998-99	1999-00	2000-01	2001-02	2002-03
Sales		308,882	297,525	291,646	150,650	10,413	0,565
Gross Profit / (Loss)		76,498	76,562	75,672	35,970	-9,335	-1,596
Selling & Administration Expenses		36,399	40,827	38,087	28,091	7,290	6,603
Profit / (Loss) before Taxation		7,464	5,833	3,330	-11,605	-50,655	-2,007
Statement of Compliance with Code of Corporate Governance
This statement is being presented to comply with the Code of Corporate Governance in the listing
regulations of Karachi Stock Exchanges for the purpose of establishing a framework of good
governance, whereby a listed company is managed in compliance with the best practices of
corporate governance.
The company has applied the principles contained in the Code in the following manner:
1.    The company encourages the presentation of independent non-executive directors on its Board
of Directors. However there is no representation of non-executive independent directors and
minority shareholders on the Board.
2.    The directors have confirmed that none of them is serving as a director in more than ten listed
companies, including this company.
3.    All the resident directors of the company are registered as taxpayers and none of them has
defaulted in payment of any loan to a banking company, a DPI or an NBFI or, being a member
of stock exchange, has been declared as a defaulter by that stock exchange.
4.    No casual vacancy occurred in the Board till June 30, 2003.
5.    The company has prepared a 'Statement of Ethics and Business Practices' which has been
signed by all the directors.
6.    The Board has developed a vision statement, overall corporate strategy and significant policies
of the company. A complete record of particulars of significant policies alongwith date on which
they were approved or amended has been maintained.
7.    All the power of the Board have been duly exercise and decisions on material transactions,
including appointment and determination of remuneration and terms and conditions of
employment of the Chief Executive Officer (CEO) and other executive directors, have been
taken by the Board.
8.    The meeting of the Board were presided over by the Chairman and the Board met at least once
in every quarter. Written notices of the Board Meeting, alognwith agenda and working papers,
were circulated at least seven days before the meetings. The minutes of the meetings were
appropriately recorded and circulated.
9.    The board attended one orientation course during the year and intends to holds such sessions
in future also.
10. The Board has already approved appointment of Chief Financial Officer (CFO), Company
Secretary and Head of Internal Audit.
11. The directors' report for the period ended June 30, 2003 has prepared in compliance with the
requirements of the Code and fully describes the salient matters required to be disclosed.
12. The financial statements of the company were duly endorsed by CEO and CFO before approval
of the Board.
13. The directors, CEO and executive do not hold any interest in the shares of the company other
than that disclosed in the pattern of shareholding.
14. The company has complied with all the corporate and financial reporting requirements of the
Code.
15.  The Board has formed and Audit Committee in September of the last year. It comprises three
non executive members including the Chairman of the Committee.
16. The meeting of the Audit Committee were held at least once every quarter prior to approval of
interim and final results of the Company and as required by the Code. The terms of references
of the committee have been formed and advised to the committee for compliance.
17.  The Board has set up an effective internal audit function manned by suitably qualified and
experienced personnel who are conversant with the policies and procedures of the company
and are involved in the internal audit function on a full time basis.
18.  The statutory auditors of the company have confirmed their intention to obtain satisfactory
rating of quality control review program from the Institute of Chartered Accountant of Pakistan,
that they or any of the partners of the firm, their spouses and minor children do not hold shares
of the company and that the firm and all its partners are in compliance with International
Federation of Accountants (IFAC) guidelines on code of ethics as adopted by Institute of
Chartered Accountants of Pakistan.
19.  The statutory auditors or the persons associated with them have not been appointed to provide
other services except in accordance with the listing regulations and the auditors have confirmed
that they have observed IFAC guidelines in this regard.
26. We confirm that all other material principles contained in the Code have been compiled with.
Auditors' Report to the Members
We have audited the annexed balance sheet of Fateh Sports Wear Limited as at 30th June,
2003 and the related profit and loss account, cash flow statement and statement of changes in
equity 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 purposes of our audit.
It is the responsibility of the company's management to establish and maintain a system of internal
control, and prepare and present the above said statements in conformity with the approved
accounting standards and the requirements of the Companies Ordinance, 1984. Our responsibility
is to express an opinion on these statements based on our audit.
We conducted our audit in accordance with the auditing standards as applicable in Pakistan.
These standards require that we plan and perform the audit to obtain reasonable assurance about
whether the above said statements are free of any material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the above said
statements. An audit also includes assessing the accounting policies and significant estimates
made by management, as well as, evaluating the overall presentation of the above said
statements. We believe that our audit provides a reasonable basis for our opinion and, after due
verification, we report that;