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A.A. Textiles Limited
Annual Report 2000
Contents
Company Information
Notice of Meeting
Directors' Report to the shareholders
Pattern of Shareholding
Auditors' Report to the Members
Balance Sheet
Profit and Loss Account
Cash Flow Statement
Statement of Changes in Equity
Notes to the Accounts
Company Information
Board of Directors
Sheikh Mukhtar Ahmed
(Chairman)
Mohammad Naeem Mukhtar
(Chief Executive)
Sheikh Mohammad Yaseen
Mohammad Waseem Mukhtar
Atif Yaseen
Ghazala Naeem
Bina Sheikh
Mumtaz Ali Memon
(ICP Nominee)
Secretary
Anwar-ul-Haque
B.Com. F.C.A.,
Auditors
Rahman Sarfaraz & Co.,
Chartered Accountants,
Lahore, Pakistan.
Tax Consultants			Registered Office
F. R. Merchant & Co.,			Ibrahim Centre
Chartered Accountants,			1 -A, Ahmed Block,
Karachi, Pakistan.			New Garden Town,
			Lahore, Pakistan.
Information Technology Consultants			Head Office
KPMG Peat Marwick Associates (Pvt) Ltd.			Ibrahim Centre
Karachi, Pakistan.			15 Club Road,
			Faisalabad, Pakistan.
Bankers
Emirates Bank International pjsc			Shares Department
			Ibrahim Centre
			GK-7/59, Bagh-e-Zehra Street,
			Kharadar,
			Karachi, Pakistan.
			Mills
			40 - Kilometre,
			Faisalabad - Sheikhupura Road,
			Faisalabad, Pakistan.
Notice of Meeting
Notice is hereby given that the 18th Annual General Meeting of the shareholders of the Company will be
held on March 31, 2001 at 11:00 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 September 30, 2000 together with Directors' and Auditors' reports thereon.
3. To consider and approve declaration of cash dividend @ 21% and issue of stock dividend @ 50% as
recommended by the Board of Directors.
4. To appoint Auditors for the next year 2000-2001 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. SPECIAL BUSINESS:
To approve the following special business:
"Resolved that the total monthly remuneration of Rs. 310,000/= which was being paid to the out going
Chief Executive be and is hereby approved to be paid to the new Chief Executive with the following
breakup.
1. Basic		Rs. 200,000.00 per month
2. House Rent Allowance		Rs. 90,000.00 per month
3. Utilities		Rs. 20,000.00 per month
		Rs. 310,000.00 per month
6. To transact any other business with the permission of the chair.
					By order of the Board
Dated: February 15, 2001					Anwar-ul-Haque
Lahore					Company Secretary
Notes:
i) The share transfer books of the Company shall remain closed from 22-03-2001 to 31-03-2001 (both days
inclusive) to determine the names of members entitled to receive cash dividend, stock dividend and to
attend the meeting. Transfers received in order at the Shares Registration office of the Company at the
close of business on 21-03-2001 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 time
for holding 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 18th Audited Financial Results of the company for
the year ended September 30, 2000.
PRODUCTION RESULTS
During the year under review the company has achieved production level of 6,902 tons of different type
of blended yarns as compared to 6,616 tons of blended yarns during the previous year - thus showing
an increase of 4.32%.The range of product mix produced during the year under review consist of Polyester
Cotton yarns from 20/s to 45/s, Acrylic yarns 20/s to 50/s, Polyester Viscose and Polyester Acrylic yarns
30/s to 36/s, attaining an average count of 37.23 during the year.
Your company always try to conform its production policies with the market demand to fetch better selling rates.
Comparative figures of production are as follows:-
Types of Yarns				Production
				2000	1999
				Kgs.	Kgs.
Polyester Cotton Yarn				3,535,993	3,522,703
Acrylic Viscose Yarn				1,151,373	2,508,181
Pure Acrylic Yarn				1,328,684	585,099
Polyester Viscose Yarn				882,615	--
Polyester Acrylic Triloble				3,266	--
				------------------	------------------
				6,901,931	6,615,983
				==========	==========
FINANCIAL RESULTS
The achievement of your company during the current financial year in terms of sales and profit has improved
significantly. Revenue generated from sales of yarn is Rupees 822 million as against Rupees 772 million during
the previous year. The gross profit increased to Rupees 198 million from Rupees131 million showing an increase
of 51% over the previous year. The company earned a profit after tax of Rupees 54 million as against the profit
of 35 million earned during the previous year thus showing an improvement of profit of 53%.
The financial results are being summarized as follows:
				2000	1999
				Rupees	Rupees
Gross Profit				197,917,073	130,802,208
Operating Expenses				53,471,941	49,976,342
				------------------	------------------
Operating Profit				144,445,132	80,825,866
Other Income				17,427,857	8,557,590
				------------------	------------------
				161,872,989	89,383,456
Financial & Other Charges				12,403,846	30,935,718
				------------------	------------------
Profit before Taxation				149,469,143	58,447,738
Provision for Taxation				95,585,448	23,174,807
				------------------	------------------
Profit after Taxation				53,883,695	35,272,931
Unappropriated Profit Brought Forward				8,610	4,429
				------------------	------------------
Surplus Available for Appropriation				53,892,305	35,277,360
Transfer from General Reserve				19,350,000	--
				------------------	------------------
Profit available for appropriation				73,242,305	35,277,360
				==========	==========
CASH DIVIDEND AND ISSUE OF STOCK DIVIDEND
The Board of Directors have recommended payment of cash dividend @ 21% and issue of stock divided @ 50%.
APPROPRIATIONS
				2000	1999
				Rupees	Rupees
Proposed Dividend @ 21% (1999 - @ 15%)				21,656,250	15,468,750
Transfer to capital reserve for issue of stock dividend @ 50% (1999- Nil)				51,562,500	--
Transfer to general reserve				--	19,800,000
				------------------	------------------
				73,218,750	35,268,750
Unappropriated Profit Carried Forward				23,555	8,610
				==========	==========
Earning per share				5.22	3.42
				==========	==========
GENERAL OVERVIEW
The improvements in market condition of the textile sector are apparent and we hope that the demand of
blended yarns and the selling prices will further improve.
AUDITORS
The present auditors M/s Rahman Sarfaraz & Co. Chartered Accountants, Lahore retire and being eligible,
consented for re-appointment for the next financial year 2000-2001.
PATTERN OF SHAREHOLDING
Pattern of shareholding of the company is annexed.
ACKNOWLEDGEMENT
The management wishes to place on record its appreciation for the hard work and positive efforts made by the
executives and employees. The management would also like to thank its valued Customers, Bankers, Financial
Institutions and Shareholders for their cooperation and support and hope to get the same in future.
					On behalf of the Board
February 15, 2001					MOHAMMAD NAEEM MUKHTAR
Lahore.					Chief Executive
Pattern of Shareholding as at 30 September, 2000
No. of	Having Shares		Shares	Percentage
Shareholders	From	To	held
57	1	100	3075	0.0298
309	101	500	52325	0.5074
41	501	1000	33150	0.3215
72	1001	5000	164700	1.5971
9	5001	10000	61425	0.5956
2	10001	15000	23500	0.2279
1	15001	20000	18750	0.1818
1	20001	25000	20250	0.1964
1	60001	65000	62500	0.6061
5	80001	85000	406000	3.9370
1	85001	90000	87500	0.8485
1	100001	105000	103750	1.0061
1	105001	110000	106250	1.0303
4	205001	210000	840000	8.1455
1	265001	270000	266000	2.5794
1	270001	275000	273750	2.6545
2	275001	280000	560000	5.4303
2	290001	295000	588400	5.7057
3	320001	325000	966600	9.3731
2	530001	535000	1065125	10.3285
1	795001	800000	799000	7.7479
1	1005001	1010000	1009000	9.7842
1	1040001	1045000	1042875	10.1127
1	1755001	1760000	1758575	17.0528
------------------			------------------	------------------
520			10312500	100.0000
==========			==========	==========
Categories of Shareholders
			Number of	Number of	Percentage of
PARTICULARS			Shareholders	Shares held	Shareholding
Individuals			498	7,316,900	70.952
Financial Institutions			4	1,062,175	10.300
Joint Stock Companies			6	1,763,925	17.105
Insurance Companies			2	63,125	0.612
Investment Bank/Companies			7	17,275	0.168
Financial Companies			3	89,100	0.864
			------------------	------------------	------------------
			520	10,312,500	100.0000
			==========	==========	==========
Auditors' Report to the Members
We have audited the annexed balance sheet of A.A. Textiles Limited as at 30 September, 2000 and the related
profit & 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 statement 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 --
(a) In our opinion, proper books of accounts 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 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 and statement of changes in equity
together with the notes forming part thereof conform with approved accounting standards as applicable
in Pakistan and 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, 2000 and of the profit, its cash flow and changes in equity 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.
February 15, 2001					(RAHMAN SARFARAZ & CO.)
Lahore					Chartered Accountants
Balance Sheet as at 30 September, 2000
			Note	2000	1999
				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
Capital reserve			4	51,562,500	--
General reserve			5	68,450,000	87,800,000
Unappropriated profit				23,555	8,610
				------------------	------------------
				223,161,055	190,933,610
DEFERRED LIABILITY
Deferred Taxation				36,337,000	--
Staff retirement gratuity			6	19,437,380	15,147,050
				------------------	------------------
				55,774,380	15,147,050
CURRENT LIABILITIES
Short term borrowings			7	99,370,413	97,566,620
Current portion of long term liabilities			8	--	2,155,522
Creditors, provisions and accrued liabilities			9	27,494,531	22,715,681
Provision for taxation				68,433,756	30,940,343
Dividend unclaimed			10	292,950	246,788
Proposed dividend				21,656,250	15,468,750
				------------------	------------------
				217,247,900	169,093,704
CONTINGENT LIABILITIES/COMMITMENTS			11	--	--
				------------------	------------------
				496,183,335	375,174,364
				==========	==========
The annexed notes form an integral part of these accounts.
					Chief Executive
FIXED ASSETS			12	235,294,054	190,398,502
CAPITAL WORK IN PROGRESS				--	4,442,150
LONG TERM INVESTMENTS			13	5,000,000	5,000,000
CURRENT ASSETS
Stores, spares and loose tools			14	51,392,171	5,043,416
Stock in trade			15	135,778,623	94,136,901
Trade debts			16	5,437,724	4,134,150
Advances, deposits and other receivables			17	33,168,457	41,293,062
Cash and bank balances			18	76,365,260	30,726,183
				------------------	------------------
				255,889,281	175,333,712
				------------------	------------------
				496,183,335	375,174,364
				==========	==========
					Director
Profit and Loss Account
for the year ended 30 September, 2000
			Note	2000	1999
				Rupees	Rupees
SALES - Net			19	822,255,916	772,083,885
COST OF SALES			20	624,338,843	641,281,677
				------------------	------------------
GROSS PROFIT				197,917,073	130,802,208
OPERATING EXPENSES
Administrative			21	50,057,326	45,400,968
Selling			22	3,414,615	4,575,374
				------------------	------------------
				53,471,941	49,976,342
				------------------	------------------
OPERATING PROFIT				144,445,132	80,825,866
OTHER INCOME
Miscellaneous revenue			23	14,220,090	2,713,278
Profit/(loss) on trading			24	3,207,767	5,844,312
				------------------	------------------
				17,427,857	8,557,590
				------------------	------------------
				161,872,989	89,383,456
OTHER CHARGES
Financial				4,463,827	27,846,503
Zakat				73,222	13,018
Workers' profit participation fund				7,866,797	3,076,197
				------------------	------------------
				12,403,846	30,935,718
				------------------	------------------
PROFIT FOR THE YEAR				149,469,143	58,447,738
PROVISION FOR TAXATION
Current - this year			26	(47,900,000)	(19,287,754)
- prior year				(11,348,448)	(3,887,053)
Deferred - this year				(2,549,000)	--
- prior year				(33,788,000)	--
				------------------	------------------
				(95,585,448)	(23,174,807)
				------------------	------------------
PROFIT AFTER TAXATION				53,883,695	35,272,931
UNAPPROPRIATED PROFIT BROUGHT FORWARD				8,610	4,429
				------------------	------------------
				53,892,305	35,277,360