| Al-Abid Silk Mills Limited |
|
|
|
|
|
|
|
|
| Annual
Report 2000 |
|
|
|
| BOARD
OF DIRECTORS |
|
|
| Mr.
Naseem A. Sattar |
Chairman & Chief
Executive |
|
| Mr.
Azim Ahmed |
Director |
|
| Mr.
Amir Naseem |
Director |
|
| Mrs.
Zarina Naseem |
Director |
|
| Mrs.
Sadaf Nadeem |
Director |
|
| Mrs.
Reena Azim |
Director |
|
| Mrs. Asra Amir |
|
Director |
|
| Mr. Nasim Beg |
|
Nominee Director (N.I.T.) |
|
| Mr.
Muhammad Shafi |
Nominee Director (N.I.T.) |
|
| Mr.
Muhammad Ashraf |
Nominee Director (N.I.T.) |
|
|
| SECRETARY |
|
| Mr.
S. M. Jawed Azam |
|
|
| AUDITORS |
|
| Muniff
Ziauddin & Company |
|
| Chartered
Accountants |
|
|
|
| REGISTRARS |
|
| (a)
Adam Patel & Co. (Pvt.) Ltd. |
|
| 34
/ 2 - F, Block - 5, Clifton, Karachi. |
|
|
| (b)
Gangjees Associates (For C.D.C. Purpose) |
|
| 516,
Clifton Centre, Khayaban-e-Roomi, |
|
| Kehkashan,
Block- 5, Clifton, Karachi. |
|
|
| BANKERS |
|
| Habib
Bank Limited |
|
| Habib
Bank A. G. Zurich |
|
| Citibank, N.A. |
|
| National
Bank of Pakistan |
|
| Deutsche Bank |
|
| Metropolitan
Bank Limited |
|
|
| REGISTERED
OFFICE |
|
| A - 39, S.I.T.E., |
|
| Manghopir
Road, Karachi. |
|
|
| MILLS |
|
| A - 39, |
|
| A-51 /B, |
|
| A- 34/A, |
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| D-14/C-1 |
|
| S.I.T.E., Karachi. |
|
|
|
| CONTENTS |
|
|
|
| Notice
of Annual General Meeting |
|
|
| Report
of Directors |
|
|
| Auditor's
Report to the Members |
|
|
| Balance Sheet |
|
|
|
| Profit
& Loss Account |
|
|
| Cash
Flow Statement |
|
|
| Notes
to the Accounts |
|
|
| Pattern
of Shareholdings |
|
|
|
|
| NOTICE
OF MEETING |
|
|
| Notice
is hereby given that the 32nd Annual General Meeting of the shareholders of
the Company will be held at the |
|
| Hotel
Regent Plaza, Karachi on Saturday, December 23, 2000 at 3.30 p.m. to transact
the following business: |
|
|
| 1.
To confirm the minutes of the 31st Annual General Meeting of the Company held
on December 28, 1999. |
|
|
| 2.
To receive, consider and adopt the audited accounts of the Company together
with the Directors' and Auditors' reports |
|
| thereon
for the year ended on June 30, 2000. |
|
|
| 3.
To approve payment of Final Cash Dividend at Rs. 3.00 per share to the
shareholders for the year ended on June |
|
| 30, 2000. |
|
|
| 4.
To appoint Auditors and fix their remuneration. |
|
|
| 5.
To approve remuneration of the Directors. |
|
|
| 6.
To elect eight Directors as fixed by the Board for a term of 3 years in
accordance with Section 178 of the Companies |
|
| Ordinance 1984. |
|
|
| The
names of retiring Directors are Messrs Naseem A. Sattar, Azim Ahmed, Amir
Naseem, Mrs. Zarina Naseem, |
|
| Mrs.
Sadaf Nadeem, Mrs. Reena Azim and Mrs. Asra Amir. |
|
|
| The
following persons being eligible offer themselves for election of Directors
U/S 178 of the Companies Ordinance |
|
| 1984. |
|
|
| i.
Mr. Naseem A. Sattar |
|
| ii.
Mr. Azim Ahmed |
|
| iii.
Mr. Amir Naseem |
|
| iv.
Mrs. Zarina Naseem |
|
| v.
Mst. Adia Naseem |
|
| vi.
Mrs. Sadaf Nadeem |
|
| vii.
Mrs. Reena Azim |
|
| viii.
Mrs. Asra Amir |
|
|
| The
nominee Directors of NIT appointed U/S 183 are not subject to retirement and
they continue to be the nominee |
|
| Directors
of NIT on the Board of the Company under Section 183 of the Companies
Ordinance 1984. |
|
|
| 7.
To consider any other business with the permission of the Chair. |
|
|
|
|
|
|
|
BY ORDER OF THE BOARD |
|
|
|
|
|
|
|
|
|
|
|
(S. M. JAWED AZAM) |
|
| Karachi:
27th November, 2000. |
|
|
|
Company Secretary |
|
|
|
|
|
|
|
|
| NOTES: |
|
|
| 1.
The Share Transfer Books of the Company will remain closed from December 19,
2000 to December 31, 2000 (both days |
|
| inclusive). |
|
|
| 2.
A member entitled to attend and vote at this meeting may appoint another
member as his/her proxy to attend and vote |
|
| instead
of him/her. Proxies, in order to be effective, must be received at the
Registered Office of the Company not less |
|
| than
48 hours before the time of meeting. |
|
|
| 3.
Members are requested to promptly notify the Company of any change in their
addresses. |
|
|
|
|
| CDC
Account Holders will further have to follow the under mentioned guidelines as
laid down in Circular I dated |
|
| January
26, 2000 issued by the Securities and Exchange Commission of Pakistan. |
|
|
|
| A.
For Attending the Meeting: |
|
|
| (i)
In case of individuals, the account holder or sub-account holder and / or the
person whose securities are in group |
|
| account
and their registration details are uploaded as per the Regulations, shall
authenticate his identity by showing |
|
| his
original National Identity Card (NIC) or, original passport at the time of
attending the meeting. |
|
|
|
| (ii)
In case of corporate entity, the Board of Directors' resolution / power of
attorney with specimen signature of the |
|
| nominee
shall be produced (unless it has been provided earlier) at the time of the
Meeting. |
|
|
| B.
For Appointing Proxies: |
|
|
|
| (i)
In case of individuals, the account holder or sub-account holder and / or the
person whose securities are in group |
|
| account
and their registration details are uploaded as per the Regulations, shall
submit the proxy form as per the |
|
| above
requirements. |
|
|
|
|
|
| (ii)
The proxy form shall be witnessed by two persons whose names, addresses and
NIC numbers shall be mentioned |
|
| on the form. |
|
|
|
|
| (iii)
Attested copies of NIC or the passport of the beneficial owners and the proxy
shall be furnished with the proxy form. |
|
|
| (iv)
The proxy shall produce his original NIC or original passport at the time of
the Meeting. |
|
|
|
|
| (v)
In case of corporate entity, the Board of Directors' resolution / power of
attorney with specimen signature shall be |
|
| submitted
(unless it has been provided earlier) alongwith proxy form to the Company. |
|
|
|
| THIRTY-SECOND
ANNUAL REPORT OF THE DIRECTORS |
|
|
| Dear
Shareholders, |
|
|
| WELCOME:
I welcome you to the 32nd Annual General Meeting of the Company. |
|
|
| PREAMBLE:
The accounts for the year are before you indicating the performance of the
Company |
|
| which
will be discussed further in the following. |
|
|
| PERFORMANCE:
You will note that the total sales of the Company compared to the preceding |
|
| year
have reduced by approximately 3.81%. In spite of growing competition in the
international |
|
| market,
we have been able to maintain the export sales. The decrease is attributed
mainly to local |
|
| processing
for outside parties which was reported to you already earlier. The profit for
the year |
|
| compared
to the preceding year indicates a drop which is largely attributed to the
exchange rate |
|
| between
European Currency and Pakistani Rupee. The European Currency has been
depleting |
|
| against
the Dollar, accordingly against Rupee continuously after October 1999. The
Deutsche Mark |
|
| was
giving Rupee yield in October 1999 of around Rs. 28.74 and in the subsequent
half year, it |
|
| touched
the bottom to around Rs. 23.40. This position of exchange rate had two
effects on the |
|
| business
activities of the Company. On one side the profit was reduced as yield in
Rupee vis-a-vis |
|
| European
currency kept on reducing continuously. On the other hand new inflow of
orders |
|
| which
would have helped in increasing the sales also retarded as due to the
exchange rate for new |
|
| orders,
prices appeared to be higher for the European buyers. However, things are now
gradually |
|
| settling
and we hope that the setback due to the rate of exchange in the preceding
year shall be |
|
| absorbed
to a sizeable extent in the months to come. As reported to you also earlier,
there is |
|
| hardly
any demand of fabric in the international market, practically everything is
exported in |
|
| the
form of made-ups, i.e. stitched articles. To be able to stay in the
international market, full |
|
| attention
was given and reported to you on providing stitching facilities to the
Company on modern |
|
| lines.
In the present scenario, this has enabled us to stay with our turnover in the
international |
|
| market
but at the same time it has increased our stitching expenses as fabric export
practically has |
|
| been
replaced by made-ups. In pursuit of expanding export all efforts are being
made to open new |
|
| markets.
The Company has made entry in some new markets and it is hoped that with the
entry in |
|
| new
markets in the years to come, the export sales would increase substantially
provided nothing |
|
| of
extraordinary nature occurs internally or externally, having negative effect. |
|
|
| As
mentioned above, the Company will continue to pursue its export expanding
policy and in |
|
| keeping
with this policy also in the year under discussion wherever it was required
the stitching |
|
| facilities
have been expanded. |
|
|
| DIVIDEND:
Profit after tax for the year as you will note is Rs. 42.293 million. We
therefore propose |
|
| Cash
Dividend of Rs. 3.00 per share which works out to 42.13% cash distribution of
the profit after |
|
| tax for the year. |
|
|
| REMUNERATION:
The remuneration of Directors is proposed to be increased by 35%. |
|
|
| PATTERN
OF SHAREHOLDING: The pattern of shareholding as on June 30, 2000 is included
in this |
|
| Annual Report. |
|
|
| EARNING
PER SHARE: The earning per share has been given in note 32 to the accounts. |
|
|
| ACKNOWLEDGEMENT:
In the end your Directors express recognition for the efforts put in by the |
|
| workers,
staff and executives of the Company. We also acknowledge the cooperation
extended by |
|
| our
banks and financial institutions. At the same time, we also thank for the
well wishes of our |
|
| valued
shareholders. |
|
|
| Thanks
to all of you. |
|
For and on behalf of the Board of Directors |
|
|
|
|
|
|
|
|
|
NASEEM A. SATTER |
|
| Karachi:
27th November, 2000. |
|
Chairman & Managing Director |
|
|
|
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of AL-ABID SILK MILLS LIMITED as at 30
June 2000 |
|
| 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: |
|
|
| (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 and profit and loss account and cash flow statement
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 30 June 2000 and of the profit, its cash flows and changes in equity
for the year |
|
| then ended; and |
|
|
|
|
|
|
| (d)
in our opinion Zakat deductible at source under the Zakat and Ushr Ordinance,
1980 (XVIII of |
|
| 1980),
was deducted by the company and deposited in the Central Zakat Fund
established |
|
| under
section 7 of that Ordinance. |
|
|
|
|
|
|
MUNIFF ZIAUDDIN & CO. |
|
| KARACHI:
27th November, 2000. |
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 2000 |
|
|
|
Note |
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
|
| SHARE
CAPITAL AND RESERVES |
|
| Authorised
Capital |
|
| 10,000,000
Ordinary Shares of Rs. 10/- each |
|
100,000,000 |
100,000,000 |
|
|
|
========== |
========== |
|
|
|
|
| Issued,
subscribed and paid-up capital |
3 |
59,400,000 |
59,400,000 |
|
|
|
|
| Reserves |
|
|
|
| Capital reserve |
|
|
4 |
39,600,000 |
39,600,000 |
|
| Unappropriated
profit |
|
|
202,156,974 |
177,683,401 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
241,756,974 |
217,283,401 |
|
|
|
|
------------------ |
------------------ |
|
|
|
5 |
301,156,974 |
276,683,401 |
|
| LONG
TERM LOANS |
|
6 |
64,543,639 |
67,990,889 |
|
| LIABILITIES
AGAINST ASSETS SUBJECT |
|
|
| TO
FINANCE LEASE |
|
7 |
46,453,458 |
56,872,100 |
|
|
|
|
|
|
| DEFERRED
LIABILITIES |
|
8 |
15,536,013 |
14,426,470 |
|
|
| CURRENT
LIABILITIES AND PROVISIONS |
|
|
| Short
term finances |
|
9 |
692,901,199 |
644,434,723 |
|
| Current
maturity of long-term loans and finances |
10 |
19,151,063 |
24,692,859 |
|
| Creditors,
accrued charges and other liabilities |
11 |
374,065,360 |
357,698,018 |
|
| Dividends |
|
12 |
17,882,750 |
23,838,546 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,104,000,372 |
1,050,664,146 |
|
| CONTINGENCIES
AND COMMITMENTS |
13 |
-- |
-- |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,531,690,456 |
1,466,637,006 |
|
|
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
| Karachi:
27th November, 2000. |
|
|
|
| FIXED
CAPITAL EXPENDITURE |
|
| Operating
fixed assets |
|
14 |
459,192,215 |
451,281,212 |
|
| Capital
work-in-progress |
|
15 |
-- |
5,030,190 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
459,192,215 |
456,311,402 |
|
|
|
|
|
|
| ADVANCE
FOR SHARES |
|
16 |
1,028,745 |
1,027,545 |
|
|
|
| LONG
TERM DEPOSITS, PREPAYMENTS |
|
| AND
DEFERRED COST |
|
17 |
2,070,454 |
2,356,905 |
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Stores
and spares |
|
18 |
70,342,442 |
65,717,491 |
|
| Stock-in-trade |
|
19 |
804,514,728 |
760,089,635 |
|
| Trade debtors |
|
20 |
30,617,386 |
27,804,589 |
|
| Advances,
deposits and prepayments |
21 |
49,957,656 |
68,455,904 |
|
| Other
receivables |
|
22 |
76,732,648 |
59,968,156 |
|
| Cash
and bank balances |
|
23 |
37,234,182 |
24,905,379 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,069,399,042 |
1,006,941,154 |
|
|
------------------ |
------------------ |
|
|
|
1,531,690,456 |
1,466,637,006 |
|
|
|
========== |
========== |
|
|
|
NASEEM A. SATTAR |
|
AZIM AHMED |
|
|
Chairman & Chief Executive |
|
Director |
|
|
|
| PROFIT
AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2000 |
|
|
|
Note |
2000 |
1999 |
|
|
|
|
Rupees |
Rupees |
|
|
| Sales
and services |
|
24 |
1,601,685,525 |
1,665,150,607 |
|
| Cost of sales |
|
25 |
1,348,117,347 |
1,410,141,328 |
|
|
|
|
------------------ |
------------------ |
|
| GROSS
PROFIT |
|
|
253,568,178 |
255,009,279 |
|
|
|
|
|
|
| OPERATING
EXPENSES |
|
|
|
| Administrative |
|
26 |
63,909,066 |
60,042,482 |
|
| Selling
and distribution |
|
27 |
35,928,972 |
34,446,387 |
|
|
------------------ |
------------------ |
|
|
|
|
99,838,038 |
94,488,869 |
|
|
|
|
------------------ |
------------------ |
|
| OPERATING
PROFIT |
|
|
153,730,140 |
160,520,410 |
|
| Other income |
|
28 |
3,435,269 |
3,205,680 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
157,165,409 |
163,726,090 |
|
|
|
|
------------------ |
------------------ |
|
| Financial
charges |
|
29 |
102,746,205 |
94,786,242 |
|
| Other Charges |
|
30 |
2,720,960 |
3,446,992 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
105,467,165 |
98,233,234 |
|
|
|
|
------------------ |
------------------ |
|
| Profit
before taxation |
|
|
51,698,244 |
65,492,856 |
|
| Taxation |
|
31 |
(9,404,671) |
(10,020,931) |
|
|
|
|
------------------ |
------------------ |
|
| Profit
after taxation |
|
|
42,293,573 |
55,471,925 |
|
| Unappropriated
profit brought forward |
|
177,683,401 |
145,971,476 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
219,976,974 |
201,443,401 |
|
|
|
|
| APPROPRIATION |
|
| Proposed
dividend Rs. 3.00 per share |
|
17,820,000 |
23,760,000 |
|
| (1999:
Rs. 4.00 per share) |
|
|
|
|
------------------ |
------------------ |
|
| Unappropriated
profit carried forward |
|
202,156,974 |
177,683,401 |
|
|
========== |
========== |
|
|
| Basic
Earning Per Share |
|
32 |
7.12 |
9.34 |
|
|
|
|
========== |
========== |
|
|
|
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
NASEEM A. SATTAR |
|
AZIM AHMED |
|
|
Chairman & Chief Executive |
|
Director |
|
|
|
|
|
| CASH
FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
|
|
| FUNDS
PROVIDED FROM OPERATION |
|
| Profit
after taxation |
|
42,293,573 |
55,471,925 |
|
|
|
|
|
| Adjustment
of items not involving movement of funds |
|
| Depreciation |
|
50,756,030 |
49,879,635 |
|
| Provision
for gratuity - net |
|
172,416 |
2,310,083 |
|
| Provision
for deferred tax |
|
937,127 |
-- |
|
| Profit
on disposal of fixed assets |
|
(1,896,872) |
(896,193) |
|
|
|
------------------ |
------------------ |
|
|
|
92,262,274 |
106,765,450 |
|
|
|
|
| (INCREASE)
/ DECREASE IN CURRENT ASSETS |
|
| Stores
and spares |
|
(4,624,951) |
(16,866,809) |
|
| Stock-in-trade |
|
(44,425,093) |
(158,543,345) |
|
| Trade debtors |
|
(2,812,797) |
15,617,519 |
|
| Advances,
deposits and prepayments |
|
18,498,248 |
(16,852,303) |
|
| Other
receivables |
|
(16,764,492) |
39,665,944 |
|
|
|
------------------ |
------------------ |
|
|
|
(50,129,085) |
(136,978,994) |
|
|
| INCREASE
/ (DECREASE) IN CURRENT LIABILITIES |
|
| Short
term finances |
|
48,466,476 |
168,998,148 |
|
| Creditors,
accrued charges and other liabilities |
|
16,367,342 |
(18,549,963) |
|
|
|
------------------ |
------------------ |
|
|
|
64,833,818 |
150,448,185 |
|
|
|
------------------ |
------------------ |
|
| NET
CASH INFLOW FROM OPERATING ACTIVITIES |
106,967,007 |
120,234,641 |
|
|
|
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
| Advance
for shares |
|
(1,200) |
(3,000) |
|
| Capital
expenditure |
|
(54,911,956) |
(151,291,901) |
|
| Proceeds
from disposal of fixed assets |
|
3,171,985 |
2,136,254 |
|
| Long
term deposits and deferred cost |
|
286,451 |
(721,450) |
|
|
|
------------------ |
------------------ |
|
| NET
CASH (OUTFLOW) FROM INVESTING ACTIVITIES |
(51,454,720) |
(149,880,097) |
|
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
| Proceeds
from obligation under finance lease |
|
11,451,176 |
72,845,450 |
|
| Payments
of obligation under finance lease |
|
(27,411,614) |
(27,148,482) |
|
| Long
term loans acquired |
|
(3,447,250) |
(652,018) |
|
| Dividends paid |
|
(23,775,796) |
(4,628,867) |
|
|
|
------------------ |
------------------ |
|
| NET
CASH (OUTFLOW)/INFLOW FROM FINANCING ACTIVITIES |
(43,183,484) |
40,416,083 |
|
|
|
|
------------------ |
------------------ |
|
| NET
INCREASE IN CASH AND CASH EQUIVALENTS |
12,328,803 |
10,770,627 |
|
| CASH
AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR |
24,905,379 |
14,134,752 |
|
|
|
|
------------------ |
------------------ |
|
| CASH
AND CASH EQUIVALENTS AT THE END OF THE YEAR |
37,234,182 |
24,905,379 |
|
|
|
========== |
========== |
|
|
|
NASEEM A. SATTAR |
|
AZIM AHMED |
|
|
Chairman & Chief Executive |
|
Director |
|
|
|
| NOTES
TO THE ACCOUNTS FOR THE YEAR ENDED JUNE 30, 2000 |
|
|
| 1.
COMPANY AND ITS BUSINESS |
|
| The
company was incorporated in the year 1968 as a Private Limited Company and
was converted |
|
| into
Public Limited Company on 24th December, 1987 under the Companies Ordinance,
1984. The |
|
| Company
is listed on the Karachi and Lahore Stock Exchanges. The principal activity
of the |
|
| Company
is manufacturing and processing of various kinds of fabrics and export of
printed and dyed |
|
| cloth,
bed sets and garments made-up. |
|
|
| 2.
ACCOUNTING POLICIES |
|
|
| 2.1
ACCOUNTING CONVENTION |
|
| These
accounts have been prepared on the basis of "historical cost"
convention. |
|
|
|
| 2.2
STAFF GRATUITY |
|
| The
Company operates an unfunded gratuity scheme covering all employees
(excluding |
|
| managerial
staff). Full provision is made in these accounts for gratuity payable to
employees |
|
| as per law. |
|
|
|
|
|
|
| 2.3 TAXATION |
|
|
|
|
|
|
|
| Current |
|
|
|
| Provision
for the year is based on taxable income at the current rates of taxation
after taking |
|
| into
account tax credit and rebates, if any. |
|
|
| Deferred |
|
|
| The
Company accounts for deferred taxation on all major timing differences using
the liability |
|
| method.
However, deferred tax is not provided if it can be established with
reasonable |
|
| probability
that the timing differences will not reverse in the foreseeable future. |
|
|
| 2.4
FIXED CAPITAL EXPENDITURE AND DEPRECIATION |
|
|
|
| a.
Operating fixed assets are stated at cost less accumulated depreciation
except land |
|
| and
capital work-in-progress which are stated at cost. |
|
|
|
|
|
| b.
Depreciation is charged to income applying the reducing balance method
without |
|
| considering
extra shifts worked. |
|
|
|
|
| c.
No depreciation is charged on assets disposed off during the year while
charge for the |
|
| full
year is made on additions during the year. |
|
|
| d.
Minor renewals, replacements, maintenance and repairs are charged to expense. |
|
| Major
renewals and betterments are capitalized. Gains and losses on deleted assets |
|
| are
reflected in the accounts. |
|
|
|
|
| 2.5
ACCOUNTING FOR LEASES |
|
| The
Company records assets acquired under finance lease and related liabilities
at lower of |
|
| present
value of minimum lease payments under the lease agreement and the fair value
of |
|
| assets.
Finance charges are allocated to accounting period in a manner so as to
produce |
|
| a
constant periodic rate of charge on the outstanding liability. Depreciation
is provided at the |
|
| rates
applicable to operating fixed assets. |
|
|
| 2.6
CAPITALIZATION OF BORROWING COST |
|
| Borrowing
cost on loans obtained for acquisition of plant and machinery for the period
till |
|
| commissioning
of production is capitalized. |
|
|
| 2.7
STORES AND SPARES |
|
| These
are valued at cost using the moving average method. |
|
|
|
| 2.8
STOCK-IN-TRADE |
|
| Stock
of raw materials, work-in-process and finished goods are valued at lower of
moving |
|
| average
cost and net realizable value. Cost in relation to work-in-process and
finished goods |
|
| represents
direct cost of materials, direct wages and an appropriate portion of
production |
|
| overheads. |
|
|
|
|
|
|
| Items
in transit are valued at cost comprising invoice values plus other charges
paid thereon. |
|
|
| 2.9
INVESTMENTS |
|
|
| These
are valued at cost. |
|
|
|
|
| 2.10
FOREIGN CURRENCY TRANSACTIONS |
|
| Transactions
in foreign currencies are converted into rupees at the rates of exchange |
|
| prevailing
on the date of transaction. Exchange gains and losses are included in income |
|
| currently. |
|
|
|
|
|
|
| 2.11
REVENUE RECOGNITION |
|
|
|
| Sale
of goods and services are recognized on despatch of goods to customers or on
the |
|
| performance
of services. |
|
|
|
|
|
|
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
|
| 3.
ISSUED, SUBSCRIBED AND PAID-UP CAPITAL |
|
| Ordinary
Shares of Rs. 10/- each |
|
|
| 3,160,000 |
Issued for cash |
|
31,600,000 |
31,600,000 |
|
|
|
|
| 2,780,000 |
Issued as bonus shares |
|
27,800,000 |
27,800,000 |
|
| ------------------ |
|
|
------------------ |
------------------ |
|
| 5,940,000 |
|
|
59,400,000 |
59,400,000 |
|
| ========== |
|
========== |
========== |
|
|
| 4.
CAPITAL RESERVE |
|
| Premium
on Right Shares |
|
|
39,600,000 |
39,600,000 |
|
|
========== |
========== |
|
|
| 5.
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED JUNE 30, 2000 |
|
|
|
Share |
Share |
Unappropriated |
Total |
|
|
Capital |
Premium |
Profit |
|
|
|
| Balance
as at June 30, 1998 |
59,400,000 |
39,600,000 |
145,971,476 |
244,971,476 |
|
|
|
|
| Profit
after tax for the year |
|
|
| ended
June 30, 1999 |
-- |
-- |
55,471,925 |
55,471,925 |
|
|
|
|
|
| Dividend |
|
-- |
-- |
(23,760,000) |
(23,760,000) |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
| Balance
as at June 30, 1999 |
59,400,000 |
39,600,000 |
177,683,401 |
276,683,401 |
|
|
|
|
|
| Profit
after tax for the year |
|
|
| ended
June 30, 2000 |
-- |
-- |
42,293,573 |
42,293,573 |
|
| Dividend |
|
-- |
-- |
(17,820,000) |
(17,820,000) |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
| Balance
as at June 30, 2000 |
59,400,000 |
39,600,000 |
202,156,974 |
301,156,974 |
|
|
========== |
========== |
========== |
========== |
|
|
|
|
|
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
|
| 6.
LONG TERM LOANS |
|
| Director's Loan |
|
|
| Mr.
Naseem A. Sattar |
|
|
64,543,639 |
67,990,889 |
|
|
========== |
========== |
|
|
| No
mark-up has been charged on the above loan. |
|
|
| 7.
LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE |
|
|
| Balance
as at 30-06-2000 (1999: 30-06-1999) |
|
65,604,521 |
81,564,959 |
|
| Payable
within the following twelve months |
|
(19,151,063) |
(24,692,859) |
|
|
|
------------------ |
------------------ |
|
|
46,453,458 |
56,872,100 |
|
|
|
|
========== |
========== |
|
|
| 7.1
The amounts of future payments and the periods during which they will fall
due are: |
|
|
| Year
ending 30th June |
|
| 2000-2001
(1999: 1999-2000) |
|
|
30,826,215 |
39,358,157 |
|
| 2001
- 2004 (1999: 1999 - 2004) |
|
|
59,537,501 |
79,056,676 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
90,363,716 |
118,414,833 |
|
| Less:
Finance charges not yet due |
|
|
24,759,195 |
36,849,874 |
|
|
|
|
------------------ |
------------------ |
|
|
|
65,604,521 |
81,564,959 |
|
|
========== |
========== |
|
|
| Classified
as under: |
|
| Long
term obligation |
|
|
46,453,458 |
56,872,100 |
|
| Current
obligation |
|
|
19,151,063 |
24,692,859 |
|
|
|
|
------------------ |
------------------ |
|
|
|
65,604,521 |
81,564,959 |
|
|
========== |
========== |
|
|
| 7.2
Payments under leases includes financial charges at the rates ranging between
19.50% and |
|
| 21.50%
per annum. |
|
|
| Leases
carry renewal option at the end of the lease period. There are no financial
restrictions in |
|
| the
lease agreements. |
|
|
| 8.
DEFERRED LIABILITIES |
|
| Staff
and workers gratuity |
|
14,598,886 |
14,426,470 |
|
| Deferred
Taxation |
|
937,127 |
-- |
|
|
|
------------------ |
------------------ |
|
|
|
15,536,013 |
14,426,470 |
|
|
|
========== |
========== |
|
|
|
|
| 9.
SHORT TERM FINANCES |
|
|
|
| Finance
utilized under mark-up arrangement |
(9.1) |
23,176,978 |
-- |
|
| Export
Refinance I- H.B.L. |
|
(9.2) |
-- |
129,792,052 |
|
| Export
Refinance II - H.B.L. |
|
(9.2) |
485,000,000 |
305,000,000 |
|
| Export
Refinance I - Citi Bank |
|
(9.3) |
39,978,900 |
39,542,000 |
|
| Export
Refinance II - Citi Bank |
|
(9.3) |
50,000,000 |
50,000,000 |
|
| Export
Refinance I - H.B. AG Zurich |
(9.4) |
-- |
9,895,000 |
|
| Export
Refinance II- H.B. AG Zurich |
(9.4) |
60,000,000 |
50,000,000 |
|
| FIM account |
|
(9.5) |
22,744,685 |
30,505,974 |
|
| Cash
Finance Account |
|
(9.5) |
12,000,636 |
29,699,697 |
|
|
|
|
------------------ |
------------------ |
|
|
|
692,901,199 |
644,434,723 |
|
|
|
========== |
========== |
|
|
| 9.1
The finance has been obtained from Habib Bank Limited on mark-up basis at the
rate of 48 paisas |
|
| (1999:
at the rate of 48 Paisas) per thousand per day. |
|
|
| The
arrangement is secured against equitable mortgage of Plot No. A - 51 / B with
building and |
|
| machinery
thereon and hypothecation of stocks. |
|
|
| 9.2
The loan is secured against different contracts / LCs of Export and
hypothecation of Stocks. |
|
|
| 9.3
These loans are provided by banks on the basis of past Export performance
determined by State |
|
| Bank
of Pakistan and is secured against charge on Trade Debtors. |
|
|
| 9.4
These loans are provided by banks on the basis of past Export performance
determined by State |
|
| Bank
of Pakistan and is secured against legal and equitable mortgage of plot No. A
- 34/A with |
|
| building
and machinery installed thereon. |
|
|
| 9.5
These are secured against pledge of stocks and stores. |
|
|
| 10.
CURRENT MATURITY OF LONG-TERM LOANS AND FINANCES |
|
| Liabilities
against assets subject to finance lease |
|
19,151,063 |
24,692,859 |
|
|
========== |
========== |
|
|
| 11.
CREDITORS, ACCRUED CHARGES AND OTHER LIABILITIES |
|
| Trade creditors |
|
|
124,175,773 |
73,299,653 |
|
| Other creditors |
|
|
47,072,264 |
40,282,568 |
|
| Accrued
liabilities |
|
|
16,823,680 |
17,720,248 |
|
| Workers'
profit participation fund |
|
(11.1) |
6,267,251 |
6,840,185 |
|
| Workers'
welfare fund |
|
|
-- |
13,890 |
|
| Deposits
from contractors |
|
(11.2) |
1,799,335 |
882,485 |
|
| Due
to associated undertakings |
|
|
-- |
2,663,549 |
|
| Bills
payable under D/A |
|
|
162,306,953 |
210,385,536 |
|
| Mark-up
accrued on export refinance loan |
|
13,199,201 |
3,278,823 |
|
| Mark-up
accrued on Cash credit, FIM & Running Finance |
895,115 |
1,077,789 |
|
| Mark-up
accrued on Lease finance |
|
718,034 |
901,072 |
|
| Advance
from customers |
|
|
452,669 |
-- |
|
| Other liabilities |
|
|
355,085 |
352,220 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
374,065,360 |
357,698,018 |
|
|
|
========== |
========== |
|
|
|
|
| 11.1
Workers' profit participation fund |
|
| Opening
balance |
|
6,840,185 |
6,870,910 |
|
| Interest
on W.P.P.F. |
|
153,098 |
358,983 |
|
|
|
------------------ |
------------------ |
|
|
|
|
6,993,283 |
7,229,893 |
|
| Paid
during the year |
|
|
3,446,992 |
3,836,700 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
3,546,291 |
3,393,193 |
|
| Provision
for the year |
|
|
2,720,960 |
3,446,992 |
|
|
------------------ |
------------------ |
|
|
|
6,267,251 |
6,840,185 |
|
|
========== |
========== |
|
|
|
|
| Interest
is charged @ 10.50% (1999: 10.50%) per annum on outstanding balance. |
|
| 1i.2
This represents 7% security deposits retained from contractors bills. |
|
|
| 12. DIVIDENDS |
|
| Unclaimed |
|
|
62,750 |
78,546 |
|
| Proposed |
|
|
17,820,000 |
23,760,000 |
|
|
|
------------------ |
------------------ |
|
|
|
17,882,750 |
23,838,546 |
|
|
|
========== |
========== |
|
| 13.
CONTINGENCIES AND COMMITMENTS |
|
|
| 13.1
Outstanding liabilities under documentary credit |
9,876,100 |
23,646,700 |
|
|
========== |
========== |
|
|
| 13.2
Income tax demands relating to the assessment year 1997- 1998 to 1999- 2000
not accepted |
|
| by
the company, currently under appeal amounted to Rs. 6.37 million. The
management of the |
|
| company
is confident that on merits of the case the final outcome will be in favour
of the Company, |
|
| therefore
no provision has been made in these accounts. |
|
|
| 14.
STATEMENT OF OPERATING FIXED ASSETS |
|
|
|
|
|
|
COST AS AT |
ADDITIONS/ |
COST AS AT |
ACCUMULATED |
CHARGE |
ACCUMULATED |
WRITTEN |
RATE |
|
|
|
01-07-1999 |
(DELETIONS) |
30-06-2000 |
DEPRECIATION |
FOR THE |
DEPRECIATION |
DOWN VALUE |
% |
|
|
|
|
*ADJUSTMENTS |
|
AS AT |
YEAR/ |
AS AT |
AS AT |
|
|
|
|
|
01-07-1999 |
(DELETIONS)/ |
30-06-2000 |
30-06-2000 |
|
|
|
|
|
*ADJUSTMENTS |
|
|
|
|
|
|
|
|
|
|
|
Rs. |
Rs. |
Rs. |
Rs. |
Rs. |
Rs. |
Rs. |
|
|
|
|
|
|
|
|
|
| Land
- Leasehold |
16,408,214 |
-- |
16,408,214 |
-- |
-- |
-- |
16,408,214 |
-- |
|
| Buildings
on leasehold land |
135,455,559 |
18,132,411 |
153,587,970 |
51,763,031 |
10,182,494 |
61,945,525 |
91,642,445 |
10 |
|
| Plant,
machinery and |
|
|
|
|
| equipments |
|
401,620,116 |
13,964,367 |
444,199,989 |
221,672,116 |
21,426,161 |
251,364,544 |
192,835,445 |
10 |
|
|
|
|
(4,784,494) |
|
(3,952,638) |
|
|
|
|
|
*33,400,000 |
|
*12,218,905 |
|
|
|
|
|
|
|
| Furniture,
fixtures and |
|
|
|
| ancillary
equipments |
36,229,625 |
8,792,388 |
45,022,013 |
13,186,389 |
3,183,562 |
16,369,951 |
28,652,062 |
10 |
|
|
|
|
|
|
| Office
equipments |
14,370,226 |
2,077,723 |
16,407,949 |
5,359,734 |
1,106,696 |
6,447,688 |
9,960,261 |
10 |
|
|
|
|
(40,000) |
|
(18,742) |
|
|
|
|
|
| Electric,
gas and other |
|
| installations |
|
37,358,439 |
4,544,790 |
41,903,229 |
16,246,786 |
2,565,644 |
18,812,430 |
23,090,799 |
10 |
|
|
|
|
|
|
|
| Vehicles |
|
21,855,541 |
979,291 |
21,464,012 |
13,211,487 |
1,840,269 |
14,102,935 |
7,361,077 |
20 |
|
|
|
|
(1,370,820) |
|
|
(948,821) |
|
|
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Sub Total |
|
663,297,720 |
48,490,970 |
738,993,376 |
321,439,543 |
40,304,826 |
369,043,073 |
369,950,303 |
|
|
|
|
(6,195,314) |
|
|
(4,920,201) |
|
|
|
|
*33,400,000 |
|
|
*12,218,905 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
|
|
|
| ASSETS
UNDER FINANCE LEASE |
|
|
|
| Machinery |
|
137,050,000 |
9,223,176 |
112,873,176 |
30,217,885 |
9,487,420 |
27,486,400 |
85,386,776 |
10 |
|
|
|
|
*(33,400,000) |
|
*(12,218,905) |
|
|
|
|
|
|
|
|
| Vehicles |
|
3,404,450 |
2,228,000 |
5,632,450 |
813,530 |
963,784 |
1,777,314 |
3,855,136 |
20 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Sub Total |
|
140,454,450 |
11,451,176 |
118,505,626 |
31,031,415 |
10,451,204 |
29,263,714 |
89,241,912 |
|
|
|
|
|
*(33,400,000) |
|
*(12,218,905) |
|
|
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| TOTAL 2000 |
|
803,752,170 |
59,942,146 |
857,499,002 |
352,470,958 |
50,756,030 |
398,306,787 |
459,192,215 |
|
|
|
|
(6,195,314) |
|
(4,920,201) |
|
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
| TOTAL 1999 |
|
639,311,095 |
166,556,589 |
803,752,170 |
303,468,776 |
49,879,635 |
352,470,958 |
451,261,212 |
|
|
|
|
(2,117,514) |
|
(877,453) |
|
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
|
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
|
| 14.1
The depreciation charge for the year has been allocated as follows: |
|
| Factory
over head |
|
(25.2) |
44,924,805 |
44,697,663 |
|
| Administrative |
|
(26) |
5,831,225 |
5,181,972 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
50,756,030 |
49,879,635 |
|
|
|
========== |
========== |
|
|
|
|
| 14.2
DISPOSAL OF FIXED ASSETS |
|
|
|
|
Cost |
Accumulated |
Written |
Sale |
Profit/ |
Mode of |
Particulars of |
|
|
|
|
Depreciation |
Down Value |
Proceeds |
(Loss) |
Disposal |
Purchaser |
|
|
|
|
|
|
|
Rs. |
Rs. |
Rs. |
Rs. |
Rs. |
|
|
|
| VEHICLES |
|
|
| Suzuki Mehran |
|
170,000 |
147,183 |
22,817 |
125,000 |
102,183 |
Insurance |
EFU General insurance
Ltd. |
|
| (REGD.
NO. F - 8648) |
|
claim |
|
|
|
|
|
|
| Suzuki Mehran |
|
331,790 |
66,358 |
265,432 |
331,790 |
66,358 |
Insurance |
EFU General Insurance
Ltd. |
|
| (REGD.
NO. ACE - 582) |
|
claim |
|
|
|
|
|
|
| Toyota Corolla |
|
585,000 |
522,186 |
62,814 |
127,119 |
64,305 |
Negotiation |
Mr. Bilal A. Shaikh |
|
| (REGD.
NO. L - 3301) |
|
|
C-19, Nazir Bungalows,
Gulisten-e-Jauhar, |
|
|
|
|
Karachi. |
|
|
|
|
|
|
| Mazda |
|
92,500 |
90,834 |
1,666 |
112,288 |
110,622 |
Negotiation |
Mr. M. Aslam & Bros. |
|
| (REGD.
NO. JX - 0814) |
|
|
SC-3, Chandni Chowk, |
|
|
|
|
|
Main University Road,
Karachi. |
|
|
|
|
|
|
| Toyota Coaster |
|
72,330 |
71,796 |
534 |
112,288 |
111,754 |
Negotiation |
Mr. M. Aslam & Bros. |
|
| (REGD.
NO. JX - 0612) |
|
|
SC-3, Chandni Chowk, |
|
|
|
|
|
Main University Road,
Karachi. |
|
| Honda CD- 70 |
|
60,200 |
21,672 |
38,528 |
58,000 |
19,472 |
Insurance |
EFU General Insurance
Ltd. |
|
| (REGD.
NO. KAR - 3613) |
|
claim |
|
|
|
|
|
|
| Honda CD- 70 |
|
59,000 |
28,792 |
30,208 |
501000 |
19,792 |
Insurance |
EFU General Insurance
Ltd. |
|
| (REGD.
NO. KCC - 1656) |
|
claim |
|
|
|
|
| MACHINERY |
|
|
|
|
|
|
|
| Rotary
Printing Machine |
4,163,726 |
3,572,427 |
591,299 |
2,000,000 |
1,408,701 |
Negotiation |
M/s. Magna Textile
Industries (Pvt) Ltd. |
|
|
|
|
P-15, Rail Bazar,
Jaranwala, |
|
|
|
|
|
Faisalabad. |
|
|
|
|
|
|
| Steam Ager |
|
542,768 |
309,124 |
233,644 |
240,000 |
6,356 |
Negotiation |
Mr. Mohd Babar Khan |
|
|
|
|
|
AF 84 Al-Fateh Colony,
Bara Board, |
|
|
|
|
Karachi. |
|
|
|
|
|
|
| Steam Ager |
|
78,000 |
71,087 |
6,913 |
10,000 |
3,087 |
Negotiation |
Mr. Mohd Babar Khan |
|
|
|
|
AF 84 Al-Fateh Colony,
Bara Board, |
|
|
|
Karachi. |
|
| OFFICE
EQUIPMENT |
|
| Fax
Machine WE 150 |
40,000 |
18,742 |
21,258 |
5,500 |
(15,758) |
Negotiation |
M/s. Jaffer Brothers
(Pvt) Ltd. |
|
|
|
|
Jaffer Chambers, 27
Abdullah Road, |
|
|
|
Karachi. |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| TOTAL |
|
6,195,314 |
4,920,201 |
1,275,113 |
3,171,985 |
1,896,872 |
|
|
|
========== |
========== |
========== |
========== |
========== |
|
|
|
|
|
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
|
| 15.
CAPITAL WORK-IN-PROGRESS |
|
| Building
and civil works |
|
-- |
5,030,190 |
|
|
========== |
========== |
|
|
| 16.
ADVANCE FOR SHARES |
|
1,028,745 |
1,027,545 |
|
|
|
========== |
========== |
|
|
|
|
| This
represents advance for shares paid to Sattar Spinning Limited, an associated
company. However |
|
| no
shares were issued to the Company till the date of reporting the balance
sheet. |
|
|
|
|
| 17.
LONG TERM DEPOSITS, PREPAYMENTS AND DEFERRED COST |
|
| Deposits |
|
|
| Security
deposits |
|
2,070,454 |
1,676,905 |
|
| Deposits
against lease |
|
-- |
680,000 |
|
|
|
------------------ |
------------------ |
|
|
|
2,070,454 |
2,356,905 |
|
|
|
========== |
========== |
|
|
|
|
| 18.
STORES AND SPARES |
|
| Stores |
|
|
20,346,690 |
18,492,647 |
|
| Spares |
|
|
49,995,752 |
47,224,844 |
|
|
|
------------------ |
------------------ |
|
|
70,342,442 |
65,717,491 |
|
|
|
========== |
========== |
|
|
|
| 19.
STOCK-IN-TRADE |
|
| Raw materials |
|
379,012,515 |
285,767,272 |
|
| Work-in-process |
|
295,036,346 |
402,534,915 |
|
| Finished goods |
|
130,465,867 |
71,787,448 |
|
|
|
------------------ |
------------------ |
|
|
|
804,514,728 |
760,089,635 |
|
|
|
========== |
========== |
|
|
|
|
| 20.
TRADE DEBTORS |
|
| Secured |
|
8,957,278 |
20,400,532 |
|
| Unsecured-
considered good |
|
21,660,108 |
7,404,057 |
|
|
|
------------------ |
------------------ |
|
|
|
30,617,386 |
27,804,589 |
|
|
|
========== |
========== |
|
|
| Trade
debts includes due from associated undertakings amounting to Rs. 13.14
million (1999: Nil) |
|
|
| 21.
ADVANCES, DEPOSITS AND PREPAYMENTS |
|
| Advances |
|
|
| To
staff and workers |
|
1,777,756 |
1,781,713 |
|
| Income tax |
|
|
18,669,627 |
36,236,786 |
|
| Against
import expenses |
|
5,532,367 |
9,144,452 |
|
| For
supplies and expenses |
|
8,465,062 |
8,613,212 |
|
| Deposits |
|
|
5,657,685 |
4,893,995 |
|
| Prepayments |
|
|
9,855,159 |
7,785,746 |
|
|
|
------------------ |
------------------ |
|
|
|
49,957,656 |
68,455,904 |
|
|
|
========== |
========== |
|
|
| 22.
OTHER RECEIVABLES |
|
| Duty drawback |
|
|
46,140,093 |
28,673,856 |
|
| Sales tax |
|
|
28,724,640 |
28,845,571 |
|
| Export
Development Surcharge |
|
577,908 |
1,009,408 |
|
| Others |
|
|
1,290,007 |
1,439,321 |
|
|
|
------------------ |
------------------ |
|
|
|
76,732,648 |
59,968,156 |
|
|
|
========== |
========== |
|
|
|
|
| 23.
CASH AND BANK BALANCES |
|
| Cash in hand |
|
|
334,632 |
1,480,197 |
|
| Cash
with banks - saving account |
|
16,483,051 |
8,413,347 |
|
|
- current account |
|
19,411,851 |
14,007,187 |
|
| P.L.S. TDRs |
|
|
1,004,648 |
1,004,648 |
|
|
|
------------------ |
------------------ |
|
|
|
37,234,182 |
24,905,379 |
|
|
|
========== |
========== |
|
|
|
|
| 24.
SALES AND SERVICES |
|
| Sales |
|
| Export sales |
|
|
1,496,485,491 |
1,497,166,174 |
|
| Local sales |
|
|
53,256,037 |
48,238,645 |
|
|
|
------------------ |
------------------ |
|
|
|
1,549,741,528 |
1,545,404,819 |
|
|
| Services |
|
| Cloth
processing - Printing and dyeing |
|
63,301,659 |
137,292,074 |
|
| Stitching
- Bedsets, Curtains and Garments |
|
6,000,720 |
5,619,129 |
|
|
|
------------------ |
------------------ |
|
|
|
69,302,379 |
142,911,203 |
|
|
|
------------------ |
------------------ |
|
|
|
1,619,043,907 |
1,688,316,022 |
|
| Less:
Commission and brokerage |
|
17,358,382 |
23,165,415 |
|
|
|
------------------ |
------------------ |
|
|
|
1,601,685,525 |
1,665,150,607 |
|
|
========== |
========== |
|
|
| 25.
COST OF SALES |
|
| Cost
of materials consumed |
|
(25.1) |
1,054,983,331 |
1,240,787,514 |
|
| Salaries
and wages |
|
|
90,561,991 |
93,557,329 |
|
| Factory
overheads |
|
(25.2) |
258,876,582 |
270,299,820 |
|
|
------------------ |
------------------ |
|
|
|
1,404,421,904 |
1,604,644,663 |
|
|
| Work-in-process |
|
| Opening stock |
|
|
402,534,915 |
287,207,775 |
|
| Closing stock |
|
|
(295,036,346) |
(402,534,915) |
|
|
|
|
------------------ |
------------------ |
|
|
|
107,498,569 |
(115,327,140) |
|
|
|
|
------------------ |
------------------ |
|
| Cost
of goods manufactured |
|
|
1,511,920,473 |
1,489,317,523 |
|
|
|
|
| Finished goods |
|
| Opening stock |
|
|
71,787,448 |
69,756,125 |
|
| Closing stock |
|
|
(130,465,867) |
(71,787,448) |
|
|
|
------------------ |
------------------ |
|
|
|
(58,678,419) |
(2,031,323) |
|
|
|
------------------ |
------------------ |
|
|
|
1,453,242,054 |
1,487,286,200 |
|
| Less:
Duty Drawback |
|
105,124,707 |
77,144,872 |
|
|
|
------------------ |
------------------ |
|
|
|
1,348,117,347 |
1,410,141,328 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 25.1
Cost of Materials Consumed |
|
| Dyes
and chemicals |
|
186,545,265 |
260,337,567 |
|
| Production
stores and Packing material |
|
102,624,505 |
92,742,719 |
|
| Grey cloth |
|
|
765,157,112 |
884,320,020 |
|
| Finished cloth |
|
|
656,449 |
3,387,208 |
|
|
|
------------------ |
------------------ |
|
|
|
1,054,983,331 |
1,240,787,514 |
|
|
========== |
========== |
|
|
| 25.2
Factory Overheads |
|
| Insurance
premium |
|
5,947,748 |
5,071,313 |
|
| Repairs
and maintenance |
|
17,482,521 |
21,455,469 |
|
| Rent,
rates and taxes |
|
2,666,919 |
3,425,508 |
|
| Heat,
light and power |
|
88,916,991 |
99,629,027 |
|
| Water
consumption charges |
|
8,991,882 |
9,177,819 |
|
| Boiler expenses |
|
908,523 |
941,513 |
|
| Service charges |
|
2,318,673 |
6,820,779 |
|
| Checking,
mending, stitching and packing charges |
|
5,406,710 |
5,597,208 |
|
| Coolie,
cartage and freight |
|
39,993,733 |
40,676,062 |
|
| Cloth
cutting and stitching charges |
|
41,318,077 |
32,807,459 |
|
| Depreciation |
|
44,924,805 |
44,697,663 |
|
|
|
------------------ |
------------------ |
|
|
|
258,876,582 |
270,299,820 |
|
|
|
========== |
========== |
|
|
|
|
| 26.
ADMINISTRATIVE EXPENSES |
|
| Directors'
remuneration |
|
|
4,903,956 |
3,692,010 |
|
| Salaries
and benefits |
|
|
18,449,105 |
18,068,921 |
|
| Staff welfare |
|
|
1,245,804 |
1,518,881 |
|
| Electric charges |
|
|
4,634,913 |
4,955,333 |
|
| Travelling |
|
|
9,683,592 |
7,366,317 |
|
| Car maintenance |
|
|
5,913,237 |
5,441,692 |
|
| Conveyance |
|
|
170,071 |
191,343 |
|
| Entertainment |
|
|
1,083,976 |
1,064,750 |
|
| Printing
and stationery |
|
|
2,421,249 |
2,720,762 |
|
| Postage,
telegram, telephone and telex |
|
3,687,009 |
3,373,752 |
|
| Legal
and professional |
|
|
1,604,424 |
1,971,915 |
|
| Auditors'
remuneration |
|
(26.1) |
85,000 |
85,000 |
|
| Advertisement |
|
|
451,290 |
555,495 |
|
| Subscription
and fees |
|
|
1,214,776 |
1,219,953 |
|
| Charity
and donation |
|
(26.2) |
18,000 |
280,868 |
|
| Insurance
premium |
|
|
1,936,771 |
1,899,901 |
|
| Service
contracts |
|
|
385,656 |
204,352 |
|
| Miscellaneous |
|
|
189,012 |
249,265 |
|
| Depreciation |
|
|
5,831,225 |
5,181,972 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
63,909,066 |
60,042,482 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 26.1
Auditors' remuneration |
|
| Audit fee |
|
85,000 |
85,000 |
|
|
|
========== |
========== |
|
|
|
|
| 26.2
Charity and donation |
|
| None
of the Directors or their spouses had any interest in donee's fund. |
|
|
|
|
| 27.
SELLING AND DISTRIBUTION EXPENSES |
|
| Packing
and forwarding |
|
14,354,805 |
16,618,057 |
|
| Publicity |
|
7,888,634 |
7,957,766 |
|
| Samples
lab testing and other charges |
|
1,893,317 |
1,013,458 |
|
| Postage,
courier and stamps |
|
6,624,571 |
3,868,106 |
|
| Entertainment |
|
925,369 |
864,295 |
|
| Export
development tax |
|
4,242,276 |
4,124,705 |
|
|
|
------------------ |
------------------ |
|
|
|
35,928,972 |
34,446,387 |
|
|
|
========== |
========== |
|
|
|
|
|
| 28.
OTHER INCOME |
|
| Sales of scrap |
|
1,071,903 |
1,384,759 |
|
| Profit
/ (Loss) on Sale of Stocks |
|
(58,343) |
-- |
|
| Profit on TDRs |
|
524,837 |
924,728 |
|
| Profit
on disposal of fixed assets |
|
1,896,872 |
896,193 |
|
|
|
|
------------------ |
------------------ |
|
|
|
3,435,269 |
3,205,680 |
|
|
|
========== |
========== |
|
|
|
|
| 29.
FINANCIAL CHARGES |
|
| Bank
charges, mark-up and commission |
|
25,279,573 |
28,781,166 |
|
| Mark-up
on cash credit account |
|
4,563,795 |
4,807,460 |
|
| Mark-up
on F IM account |
|
4,072,281 |
6,372,510 |
|
| Mark-up
on short term running finance |
|
2,574,568 |
3,758,894 |
|
| Mark-up
on export refinance loans |
|
50,874,416 |
40,017,141 |
|
| Lease
finance charges |
|
15,228,474 |
10,690,088 |
|
| Interest
on W.P.P.F. |
|
153,098 |
358,983 |
|
|
|
------------------ |
------------------ |
|
|
|
102,746,205 |
94,786,242 |
|
|
|
========== |
========== |
|
|
|
|
| 30.
OTHER CHARGES |
|
| Workers'
profit participation fund |
|
2,720,960 |
3,446,992 |
|
|
|
========== |
========== |
|
|
|
|
| 31. TAXATION |
|
| Current |
|
|
8,418,828 |
8,619,001 |
|
| Prior |
|
|
48,716 |
1,401,930 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
8,467,544 |
10,020,931 |
|
| Deferred |
|
937,127 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
9,404,671 |
10,020,931 |
|
|
========== |
========== |
|
|
| 32.
BASIC EARNING PER SHARE |
|
| Profit
after tax |
|
42,293,573 |
55,471,925 |
|
|
========== |
========== |
|
| Number of Shares |
|
5,940,000 |
5,940,000 |
|
|
========== |
========== |
|
| Basic Earning Per Share |
|
7.12 |
9.34 |
|
|
========== |
========== |
|
|
| 33.
REMUNERATION OF DIRECTORS AND EXECUTIVES |
|
|
|
CHIEF
EXECUTIVE |
DIRECTORS |
EXECUTIVES |
|
|
|
2000 |
1999 |
2000 |
1999 |
2000 |
1999 |
|
|
|
|
| Remuneration |
|
2,126,184 |
1,600,722 |
1,255,860 |
945,492 |
12,163,336 |
8,373,322 |
|
| House rent |
|
956,784 |
720,330 |
565,128 |
425,466 |
4,607,069 |
3,474,646 |
|
| Utilities |
|
-- |
-- |
-- |
-- |
854,119 |
368,764 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Number
of persons |
1 |
1 |
2 |
2 |
68 |
57 |
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
|
| 33
(i) The Chief Executive and Directors are provided with free use of the
company maintained |
|
| cars
and residential telephones for business and personal use, certain executives
are also |
|
| provided
with free use of Company maintained cars. |
|
|
| 33
(ii) REMUNERATION TO OTHER DIRECTORS |
|
| Aggregate
amount charged in the accounts for Board Meeting fee to non - executive |
|
| Directors
was Rs. 38,000/- (1999: Rs. 36,500). |
|
|
| 33
(iii) Number of Employees as at June 30, 2000 were 1,159 (1999: No. 1,186) |
|
|
| 34.
TRANSACTIONS WITH ASSOCIATED UNDERTAKINGS |
|
| The
maximum aggregate amount due from associated undertakings at the end of any
month during the |
|
| year
was Rs. 21,577,176/- (1999: Rs. 10,578,188). |
|
|
|
|
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
|
| Sales,
processing charges, services and charges recovered |
64,408,893 |
60,329,764 |
|
| Purchases,
services and charges |
|
656,449 |
3,387,208 |
|
|
| 35.
FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES |
|
|
|
|
|
| Interest/mark-up
rate risk exposure |
|
| The
company's exposure to interest / mark-up rate risk and the effective rates on
its financial assets and liabilities as at June 30, 2000 are |
|
| summarized
as follows: |
|
|
| (i)
Financial assets and liabilities |
|
|
|
|
|
|
|
Interest/Mark-up bearing |
|
Non-Interest/Mark-up bearing |
|
Total |
|
|
|
|
|
|
Maturity |
Maturity |
Sub-total |
Maturity |
Maturity |
Sub-total |
|
|
|
upto |
after |
|
upto |
after |
|
|
|
|
one year |
one year |
|
one year |
one year |
|
|
| Financial assets |
|
|
| Advance
for Shares |
-- |
-- |
-- |
-- |
1,028,745 |
1,028,745 |
1,028,745 |
|
| Long
term deposits |
-- |
-- |
-- |
-- |
2,070,454 |
2,070,454 |
2,070,454 |
|
| Trade Debtors |
|
-- |
-- |
-- |
30,617,386 |
-- |
30,617,386 |
30,617,386 |
|
| Advance
and Deposits |
|
|
| (excluding
income tax) |
-- |
-- |
-- |
21,432,870 |
-- |
21,432,870 |
21,432,870 |
|
| Other receivable |
|
|
|
| (excluding
duties & taxes) |
-- |
-- |
-- |
1,867,915 |
-- |
1,867,915 |
1,867,915 |
|
| Cash
and bank balances |
16,483,051 |
1,004,648 |
17,487,699 |
19,746,483 |
-- |
19,746,483 |
37,234,182 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
16,483,051 |
1,004,648 |
17,487,699 |
73,664,654 |
3,099,199 |
76,763,853 |
94,251,552 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
|
| Financial
liabilities |
|
| Long term loans |
|
-- |
-- |
-- |
-- |
64,543,639 |
64,543,639 |
64,543,639 |
|
| Liabilities
against assets |
|
|
| subject
to finance lease |
19,151,063 |
46,453,458 |
65,604,521 |
-- |
-- |
-- |
65,604,521 |
|
| Short-term
Finances |
692,901,199 |
-- |
692,901,199 |
-- |
-- |
-- |
692,901,199 |
|
| Creditors
accrued and |
|
|
| other Liabilities |
|
-- |
-- |
-- |
374,065,360 |
-- |
374,065,360 |
374,065,360 |
|
| Dividends |
|
-- |
-- |
-- |
17,882,750 |
-- |
17,882,750 |
17,882,750 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
712,052,262 |
46,453,458 |
758,505,720 |
391,948,110 |
64,543,639 |
456,491,749 |
1,214,997,469 |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
| Interest
/ mark-up Rates Risk |
|
| The
effective Interest Rates as at June 30, 2000 for the financial instruments
are as follows |
|
|
| Assets |
|
| Bank Balances |
|
8.00 - 13.00 |
per cent |
|
|
|
|
|
|
| Liabilities |
|
|
|
|
| Running finance |
|
17.50 |
per cent |
|
| Export refinance |
|
8.00 |
per cent |
|
| Liability
against assets subject to finance lease |
19.50 - 21.50 |
per cent |
|
|
|
|
|
|
| (ii)
Concentration of Credit risk |
|
| Credit
Risk represents the Accounting loss that would be recognized at the reporting
date if counterparts failed to perform as contracted. |
|
| The
company believes that it is not exposed to major concentration of credit
risk. |
|
|
| (iii)
Foreign exchange risk management |
|
| Foreign
currency arises mainly when receivables and payables exists due to sales and
purchase transaction with foreign undertakings. |
|
| As
at June 30, 2000 the total foreign currency risk exposure was Rs. 18.84
million of which Rs. 9.88 million relates to liabilities under |
|
| documentary
credit and Rs. 8.96 million relates to trade debtors. |
|
|
| (iv)
Fair value of the financial instruments |
|
| The
carrying value of all the financial instruments in the financial statements
approximates their fair value. |
|
|
| 36.
PLANT CAPACITY AND PRODUCTION |
|
| The
production capacity of the plant cannot be determined as it depends upon the
process, the quality |
|
| of
cloth used for printing and dyeing, which may compose of different kinds of
fabrics and texture |
|
| having
different construction and weights. |
|
|
| 37. GENERAL |
|
| Previous
year's figures have been re-arranged wherever necessary for the purpose of
comparison. |
|
|
|
NASEEM A. SATTAR |
|
AZIM AHMED |
|
|
Chairman & Chief Executive |
|
Director |
|
|
|
| PATTERN
OF SHARE HOLDINGS |
|
| AS
AT JUNE 30, 2000 |
|
|
| NUMBER OF |
|
SHARE HOLDERS |
|
TOTAL |
|
| SHARE HOLDERS |
|
|
|
SHARES |
|
|
|
|
|
From |
|
To |
|
|
|
| 92 |
1 |
-- |
100 |
4,005 |
|
| 67 |
101 |
-- |
500 |
13,470 |
|
| 51 |
501 |
-- |
1,000 |
32,330 |
|
| 2 |
1,001 |
-- |
5,000 |
4,725 |
|
| 4 |
5,001 |
-- |
10,000 |
31,850 |
|
| 4 |
10,001 |
-- |
15,000 |
53,000 |
|
| 4 |
15,001 |
-- |
20,000 |
70,000 |
|
| 1 |
20,001 |
-- |
25,000 |
22,120 |
|
| 2 |
45,001 |
-- |
50,000 |
100,000 |
|
| 1 |
90,001 |
-- |
95,000 |
90,450 |
|
| 1 |
185,001 |
-- |
190,000 |
187,110 |
|
| 1 |
195,001 |
-- |
200,000 |
197,495 |
|
| 1 |
340,001 |
-- |
345,000 |
341,550 |
|
| 1 |
480,001 |
-- |
485,000 |
482,627 |
|
| 1 |
1,100,001 |
-- |
1,105,000 |
1,100,675 |
|
| 1 |
1,270,001 |
-- |
1,275,000 |
1,271,173 |
|
| 1 |
1,935,001 |
-- |
1,940,000 |
1,937,420 |
|
| ------------------ |
|
------------------ |
|
| 235 |
|
TOTAL |
|
5,940,000 |
|
| ========== |
|
========== |
|
|
|
|
|
Number of |
Shares Held |
Percentage |
|
| Categories
of Shareholders |
|
Shareholders |
|
|
|
| 1. Individuals |
|
229 |
3,781,690 |
63.67 |
|
| 2.
Joint Stock Companies |
|
3 |
1,275 |
0.02 |
|
| 3.
Financial Institutions |
|
3 |
2,157,035 |
36.31 |
|
|
|
------------------ |
------------------ |
------------------ |
|
| Total |
|
235 |
5,940,000 |
100.00 |
|
|
========== |
========== |
========== |
|
|
|
|
|
|
|
|
|
|
|
|
