| Al-Noor Sugar Mills Limited |
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| Annual
Report 2000 |
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| CONTENTS |
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| COMPANY
INFORMATION |
|
| NOTICE
OF MEETING |
|
| DIRECTORS'
REPORT |
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
| BALANCE
SHEET |
|
| PROFIT AND LOSS ACCOUNT |
|
| CASH FLOW STATEMENT |
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| NOTES
ON ACCOUNTS |
|
| SHAREHOLDERS'
STATISTICS |
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|
| COMPANY
INFORMATION |
|
|
| BOARD
OF DIRECTORS |
|
| MR.
ISMAIL H. ZAKARIA |
|
Chairman & Managing Director |
|
| MR.
SULEMAN AYOOB |
|
Resident Director |
|
| MR.
YUSUF AYOOB |
|
|
|
| MR.
A. AZIZ AYOOB |
|
Marketing Director |
|
| MR.
ABDUL KARIM LODHI |
|
(NIT Nominee) |
|
| MR.
TARIQ KIRMANI |
|
(NIT Nominee) |
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| MR.
ZIA. I. ZAKARIA |
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|
| MR.
SALIM AYOOB |
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| MR.
ZOHAIR ZAKARIA |
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|
|
| MR.
SAIFULLAH KHAN |
|
(PICIC Nominee) |
|
| MR.
RANA AHMED KHAN |
|
(ICP Nominee) |
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|
| COMPANY
SECRETARY |
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| MR.
M. YAKOOB ADMANEY |
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| FCIS, FCMA. |
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|
| AUDITORS |
|
| DAUDALLY
LALANI & COMPANY |
|
| Chartered
Accountants |
|
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| LEGAL
ADVISOR |
|
| ABDUL
SATTAR PINGAR |
|
|
| REGISTERED
OFFICE |
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| 96-A
SINDHI MUSLIM SOCIETY, |
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| KARACHI-74400 |
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| FACTORY |
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| SHAHPUR
JAHANIA, P.O. NOOR JAHANIA, |
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| TALUKA
MORO, DISTT. NAWABSHAH. |
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| NOTICE
OF MEETING |
|
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| Notice
is hereby given that the 31st Annual General Meeting of AL-NOOR SUGAR MILLS
LIMITED will |
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| be
held at the Registered Office of the Company at 96-A, Sindhi Muslim Society,
Karachi on Friday, March |
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| 30,
2001 at 10:00 A.M. to transact the following business: |
|
|
| 1.
To read and confirm the Minutes of the 30th Annual General Meeting of the
Company held on |
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| March 30, 2000. |
|
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| 2.
To read and consider the Accounts for the year ended September 30, 2000 and
reports of Directors |
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| and
Auditors thereon. |
|
|
| 3.
To approve payment of cash dividend @ 10% i.e. Re. 1/- per ordinary share of
Rs. 10/= each for the |
|
| year
ended September 30, 2000 as recommended by the Board of Directors of the
Company. |
|
|
| 4.
To appoint Auditors and to fix their remuneration. |
|
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| 5.
To transact any other business with permission of the chair. |
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| The
Share Transfer Book of the Company will remain closed from March 21,2001 to
March 31, 2001 (both |
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| days inclusive) |
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|
By Order of the Board |
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|
( M. YAKOOB ADMANEY) |
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| Karachi:
March 01, 2001 |
|
COMPANY SECRETARY |
|
|
| NOTE: |
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| 1.
A member of the Company entitled to attend and vote may appoint any member as
his/her proxy |
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| to
attend and vote on his/her behalf. PROXIES MUST BE RECEIVED AT THE REGISTERED |
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| OFFICE
OF THE COMPANY NOT LESS THAN 48 HOURS BEFORE THE MEETING. |
|
|
| 2.
CDC Account Holders will further have to follow the undermentioned guidelines
as laid down in |
|
| Circular
1 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
person whose securities |
|
| are
in group account and their registration details are uploaded as per the
Regulations, shall |
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| 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, |
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| 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 number |
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| shall
be mentioned on the form. |
|
|
| iii)
Attested copies of NIC or the passport of the beneficial owners and the proxy
shall be furnished |
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| with
the proxy form. |
|
|
| iv)
The proxy shall produce his original NIC or original passport at the time of
the meeting. |
|
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| In
case of corporate entity, the Board of Directors' resolution/power of
attorney with specimen |
|
| signature
of the nominee shall be submitted (unless it has been provided earlier)
alongwith proxy |
|
| form
to the Company. |
|
|
| 3.
Shareholders are requested to inform the Company of any change in their
address immediately. |
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| DIRECTORS'
REPORT |
|
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| To: |
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| The
Shareholders: |
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| We
submit before you the 31st Annual Report together with Audited Accounts for
the year ended 30th |
|
| September,
2000. Your Company, A1-Hamdo-lillah, has earned a net profit of Rs.19.818
million. After |
|
| adjusting
last year's un-appropriated profit of Rs.0.618 million, a sum of Rs.20.436
million is available |
|
| for
appropriation which we propose to appropriate as follow: |
|
|
| 01.
Profit available for appropriation |
|
Rs.20.436 million |
|
| 02.
Proposed cash dividend @ 10% |
|
Rs.18.570 million |
|
| 03.
Un-appropriated profit carried over to Balance Sheet |
|
Rs. 1.866 million |
|
|
| Your
Company proposed to pay cash dividend @ 10% to the shareholders of the
Company. After tax |
|
| earning,
per share of the Company is Rs. 1.07. |
|
|
| SUGAR MILL: |
|
| During
the year under report, your Mill started crushing on 26th October, 1999 and
crushed 728,987 |
|
| Metric
Tons (1999:803,632 Metric Tons) of sugarcane. Sugar produced was 59,175
Metric Tons (1999: |
|
| 60,435
Metric Tons) with an average recovery of 8.13% (1999: 7.52%). |
|
|
| Molasses
produced was 36,074 Metric Tons (1999:45,485 Metric Tons). |
|
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| Sugarcane
crushing was 10% less as compared to last year. However, the recovery
improved 0.61% as |
|
| compared
to last year. |
|
|
| MEDIUM
DENSITY FIBRE (MDF) BOARD PLANT: |
|
| During
the year, 16,120 Metric Tons of Lasani Wood (1999:16,291 Metric Tons) in
various thicknesses |
|
| was
produced. The production almost maintained last year's level but still short
of 27% capacity |
|
| utilization.
Representations were made to concerned Government agencies regarding the
appropriate duty |
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| structure
since imports at dumping rates are constantly pushing down sales. Necessary
steps we hope are |
|
| being
taken soon, Insha Allah, by the Government to ensure full capacity
utilization and sales. |
|
|
| TFC ISSUE: |
|
| Your
Balance Sheet meets the Prudential Regulations requirements except current
ratio for which, TFC |
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| to
the extent of Rs.200 million with Green Shoe option of Rs.50 million were
issued to the general public |
|
| in
October 2000. A1-Hamdo-lillah, the TFCs were over-subscribed. Total
subscription to the extent of |
|
| Rs.203.66
million were subscribed which your Management retained in full. With this
issue of TFC, Al- |
|
| Hamdo-lillah,
now current ratio also meet the Prudential Regulations requirement. PACRA
conducted |
|
| the
Rating of the TFC and allocated BBB+. |
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|
| LABOUR
MANAGEMENT RELATIONS: |
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| We
are happy to report that labour management relations were good during the
year under report. Your |
|
| Directors
appreciate the spirit of co-operation shown by the workers and hope it will
continue. |
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|
| STAFF: |
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| Your
Directors also placed on record the deep appreciation and hard work and
devotion to duties shown |
|
| by
the officers and staff of the Company. |
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|
| AUDITORS: |
|
| M/s.
Daudally Lalani and Company, Auditors of the Company, retired and offered
their services for the |
|
| ensuing year. |
|
|
| FUTURE
OUTLOOK: |
|
| For
the year 2000-2001, Government has not changed the sugarcane support price.
However, |
|
| Government
has allowed import of refined as well as raw sugar. Your Mill has imported
raw sugar. |
|
| Current
sugarcane crop is short and has badly been effected due to water shortage in
the area where your |
|
| Mill
is located. Recovery has also considerably gone down. |
|
|
| The
current crushing season started on 1st November, 2000 and crushing up to 27th
February, 2001 was |
|
| 538,194
Metric Tons of sugarcane. The average recovery is 7.48%. The sugar produced
up to 27th |
|
| February,
2001 was 38,973 Metric Tons from sugarcane and 14,259 Metric Tons from raw
sugar. The |
|
| production
of Lasani Wood up to 27th February, 2001 was 7,065 Metric Tons. Your
Management has |
|
| decided
for a BMR program of Lasani Wood to produce value-added products and to
utilize the capacity |
|
| which
is available and lying idle. It is expected that with this BMR program, Insha
Allah, capacity |
|
| utilization
as well as profitability will improve in the years to come. |
|
|
|
FOR AND ON BEHALF OF THE BOARD OF DIRECTORS |
|
|
|
(ISMAIL H. ZAKARIA) |
|
| Karachi:
March 1, 2001. |
|
MANAGING DIRECTOR |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed Balance Sheet of AI-Noor Sugar Mills Limited as at
September 30, 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 except
for the changes, as |
|
| explained
fully at note 1.5(a) and 1.7 to the financial statements, with which we
concur; |
|
|
| (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, 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 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 was deducted by the |
|
| Company
and deposited in the Central Zakat Fund established under section 7 of that
Ordinance. |
|
|
| Chartered
Accountants |
|
|
| Karachi:
March 1, 2001. |
|
|
|
| BALANCE
SHEET AS AT 30TH SEPTEMBER, 2000 |
|
|
|
|
2000 |
1999 |
|
|
Note |
(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 |
|
|
162,000 |
162,000 |
|
| Unappropriated
profit |
|
|
1,866 |
618 |
|
|
|
----------- |
----------- |
|
|
|
163,866 |
162,618 |
|
|
|
349,569 |
348,321 |
|
|
|
|
| REDEEMABLE
CAPITAL |
|
3 |
17,830 |
64,429 |
|
| OBLIGATIONS
UNDER FINANCE LEASE |
|
4 |
70,179 |
100,652 |
|
| DEFERRED
LIABILITIES |
|
5 |
112,490 |
106,264 |
|
|
|
| CURRENT
LIABILITIES AND PROVISIONS |
|
| Short
term running finance and borrowings |
|
6 |
417,456 |
396,144 |
|
| Current
maturity of redeemable capital and finance lease |
7 |
96,704 |
77,668 |
|
| Creditors,
accrued and other liabilities |
|
8 |
119,985 |
141,621 |
|
| Taxation |
|
|
-- |
1,283 |
|
| Proposed
dividend |
|
|
18,570 |
13,928 |
|
|
|
----------- |
----------- |
|
|
|
652,715 |
630,644 |
|
|
|
|
| CONTINGENCIES
AND COMMITMENTS |
|
9 |
-- |
-- |
|
|
----------- |
----------- |
|
|
1,202,783 |
1,250,310 |
|
|
========== |
========== |
|
|
| FIXED ASSETS - TANGIBLE |
|
| Operating assets |
|
10 |
789,259 |
702,414 |
|
| Capital
work-in-progress |
|
11 |
529 |
106,474 |
|
|
|
----------- |
----------- |
|
|
|
789,788 |
808,888 |
|
| LONG
TERM INVESTMENTS |
|
12 |
26,631 |
26,631 |
|
| LONG
TERM LOANS AND ADVANCES |
|
13 |
171 |
371 |
|
| LONG
TERM DEPOSITS |
|
14 |
11,891 |
10,888 |
|
| DEFERRED
COST |
|
15 |
4,441 |
-- |
|
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
|
| Stores
and spares |
|
16 |
110,797 |
109,298 |
|
| Stock-in-trade |
|
17 |
105,096 |
165,528 |
|
| Trade
debts (unsecured and considered good) |
|
11,844 |
1,931 |
|
| Loans,
advances, prepayments and |
|
|
|
|
| other
receivables |
|
18 |
81,350 |
70,285 |
|
| Bank
and cash balances |
|
19 |
60,774 |
56,490 |
|
|
|
----------- |
----------- |
|
|
369,861 |
403,532 |
|
|
----------- |
----------- |
|
|
1,202,783 |
1,250,310 |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
ISMAIL H. ZAKARIA |
|
YUSUF AYOOB |
|
SULEMAN AYOOB |
|
| Karachi:
March 1, 2001. |
|
Chief Executive |
|
Director |
|
Director |
|
|
|
| PROFIT
AND LOSS ACCOUNT FOR THE YEAR |
|
| ENDED
30TH SEPTEMBER, 2000 |
|
|
|
|
|
|
|
2000 |
1999 |
|
|
Note |
(Rupees in
thousand |
|
| Sales |
|
20 |
1,360,333 |
1,347,975 |
|
| Cost of sales |
|
21 |
1,114,482 |
1,094,909 |
|
|
|
----------- |
----------- |
|
| Gross profit |
|
|
245,851 |
253,066 |
|
|
|
|
| Administration
and selling expenses |
|
22 |
76,381 |
96,062 |
|
|
|
----------- |
----------- |
|
| Operating profit |
|
|
169,470 |
157,004 |
|
| Other income |
|
23 |
29,427 |
32,887 |
|
|
|
----------- |
----------- |
|
|
|
198,897 |
189,891 |
|
|
|
|
| Financial
charges |
|
|
241,139,996 |
154,045 |
|
| Other charges |
|
25 |
9,609 |
3,248 |
|
|
|
----------- |
----------- |
|
|
149,605 |
157,293 |
|
|
----------- |
----------- |
|
| Profit
before taxation |
|
49,292 |
32,598 |
|
|
| Taxation |
|
26 |
29,474 |
15,112 |
|
|
|
----------- |
----------- |
|
| Profit
after taxation |
|
19,818 |
17,486 |
|
| Unappropriated
profit/(loss) brought forward |
|
618 |
(10,940) |
|
|
----------- |
----------- |
|
|
20,436 |
6,546 |
|
| Appropriations: |
|
|
|
| Transfer
from general reserve |
|
-- |
8,000 |
|
| Proposed
cash dividend @ 10% (1999: @ 7.50%) |
|
(18,570) |
(13,928) |
|
|
----------- |
----------- |
|
| Unappropriated
profit carried forward |
|
1,866 |
618 |
|
|
========== |
========== |
|
|
| Earning
per share - Basic and diluted |
|
33 |
1.07 |
0.94 |
|
|
|
========== |
========== |
|
| 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, 2000 |
|
|
|
|
2000 |
1999 |
|
|
(Rupees in
thousand) |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
|
|
| Profit
before taxation |
|
49,292 |
32,598 |
|
| Adjustment
for non cash charges and other items: |
|
|
|
| Depreciation |
|
42,165 |
39,583 |
|
| Provision
for obsolete spare items |
|
5,000 |
|
|
| Profit
on sale of operating assets |
|
(604) |
(405) |
|
| Provision
for staff gratuity |
|
4,415 |
2,338 |
|
| Other
deferred liabilities (excluding interest) |
|
1,367 |
(10,459) |
|
| Financial
charges |
|
139,996 |
154,045 |
|
|
----------- |
----------- |
|
| Cash
generated before working capital changes |
|
241,631 |
217,700 |
|
| Decrease/(Increase)
in current assets |
|
|
|
| Stores
and spares |
|
(6,499) |
831 |
|
| Stock in-trade |
|
60,432 |
46,878 |
|
| Trade debts |
|
(9,913) |
85,073 |
|
| Duty draw back |
|
-- |
78,804 |
|
| Loans,
advances, prepayments and |
|
|
|
| other
receivables (excluding income tax) |
|
(8,875) |
(21,470) |
|
|
----------- |
----------- |
|
|
35,145 |
190,116 |
|
| Increase/(decrease)
in current liabilities |
|
|
|
| Creditors
accrued and other liabilities |
|
|
|
| (excluding
financial charges & unclaimed dividend) |
|
(20,143) |
32,214 |
|
| Cash
generated from operation |
|
256,633 |
440,030 |
|
|
| Taxes paid |
|
(22,948) |
( 13,819) |
|
| Payment
for staff gratuity |
|
(1,543) |
(637) |
|
| Deferred
liabilities paid (excise duty and sales tax) |
|
(12,631) |
|
|
| Financial
charges paid |
|
(136,960) |
(151,701) |
|
| Long
term loans and advances |
|
200 |
(165) |
|
|
----------- |
----------- |
|
| Net
cash inflow from operating activities |
|
82,751 |
273,708 |
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
| Fixed
capital expenditure |
|
(23,454) |
(37,411) |
|
| Sale
proceed of operating assets (net off sales tax) |
|
993 |
691 |
|
|
----------- |
----------- |
|
| Net
cash outflow from investing activities |
|
(22,461) |
(36,720) |
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
|
|
| Redeemable
capital |
|
-- |
20,000 |
|
| Obligation
under finance lease |
|
20,000 |
38,082 |
|
| Long
term deposits |
|
(1,003) |
(855) |
|
| Deferred cost |
|
(4,441) |
|
|
| Repayment
of redeemable capital, long |
|
|
|
| term
loans and finance lease |
|
(78,035) |
(82,769) |
|
| Short
term running finance and borrowings |
|
21,312 |
(170,015) |
|
| Dividends paid |
|
(13,839) |
|
|
|
----------- |
----------- |
|
| Net
cash outflow from financing activities |
|
(56,006) |
(195,557) |
|
|
----------- |
----------- |
|
| Net
increase in cash and cash equivalents |
|
4,284 |
41,431 |
|
| Cash
and bank balance at the beginning of the year |
|
56,490 |
15,059 |
|
|
----------- |
----------- |
|
| Cash
and bank balance at the end of the year |
|
60,774 |
56,490 |
|
|
========== |
========== |
|
|
|
ISMAIL H. ZAKARIA |
|
YUSUF AYOOB |
|
SULEMAN AYOOB |
|
|
Chief Executive |
|
Director |
|
Director |
|
|
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| FOR
THE YEAR ENDED 30TH SEPTEMBER, 2000 |
|
|
|
2000 |
1999 |
|
|
RUPEES |
RUPEES |
|
| Share Capital |
|
185,703 |
185,703 |
|
|
----------- |
----------- |
|
| General
Reserve |
|
| Beginning
balance |
|
162,000 |
170,000 |
|
| Transfer
during the year |
|
-- |
(8,000) |
|
|
| Ending balance |
|
162,000 |
162,000 |
|
|
----------- |
----------- |
|
| Unappropriated
profit |
|
| Beginning
balance |
|
618 |
(10,940) |
|
| Net
profit for the year |
|
19,818 |
17,486 |
|
| Transfer
from general reserve |
|
-- |
8,000 |
|
| Dividend |
|
(18,570) |
(13,928) |
|
|
----------- |
----------- |
|
| Ending balance |
|
1,866 |
618 |
|
|
----------- |
----------- |
|
| Total
shareholder's equity |
|
| Beginning
balance |
|
348,321 |
344,763 |
|
| Increase - net |
|
1,248 |
3,558 |
|
|
----------- |
----------- |
|
| Ending balance |
|
