| Bannu Woollen Mills Limited |
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| Annual
Report 2000 |
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| CONTENTS |
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| Company's
Profile |
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| Notice
of Annual General Meeting |
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| Directors'
Report to the Members |
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| Decade
at a Glance |
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| Graphic
Illustrations |
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| Auditors'
Report |
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| Balance Sheet |
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| Profit
& Loss Account |
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| Cash
Flow Statement |
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| Statement
of Changes in Equity |
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| Notes
to the Accounts |
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| Pattern
of Shareholding |
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| COMPANY'S
PROFILE |
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| BOARD
OF DIRECTORS |
RAZA KULI KHAN KHATTAK |
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Chairman |
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MUHAMMAD AZHAR KHAN |
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Chief Executive |
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LT. GEN. (RETD.) ALI KULI
KHAN KHATTAK |
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AHMED KULI KHAN KHATTAK |
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MUSHTAQ AHMAD KHAN FCA |
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MRS. ZEB GOHAR AYUB KHAN |
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MRS. SHAHNAZ SAJJAD AHMAD |
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MRS. SHAHEEN TARIQ KHALIL |
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MANZOOR AHMED SHEIKH
(NIT) |
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MS. FARZANA MUNAF (NIT) |
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| SECRETARY |
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AMIN-UR-RASHEED |
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(Secretary & Sr.
Manager, Corporate Affairs) |
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| AUDITORS |
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HAMEED CHAUDHRI &
CO., |
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Chartered Accountants |
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| BANKERS |
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National Bank of Pakistan |
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Bank of Khyber |
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Pakistan Industrial
Credit |
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& Investment
Corporation |
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| MILLS |
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D.I. KHAN ROAD, BANNU |
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Phone: (0928)
613151-613250 |
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Fax: (0928) 611450 |
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| REGISTERED
OFFICE |
Bannu Woollen Mills
Limited |
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| &
SHARE OFFICE |
Habibabad, |
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Kohat |
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Phone: (0922) 510063 -
512930, |
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Fax: (0922) 510474 |
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| NOTICE
OF ANNUAL GENERAL MEETING |
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| Notice
is hereby given that 40th Annual General Meeting of BANNU WOOLLEN MILLS
LIMITED |
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| will
be held at Registered Office, Habibabad - Kohat on Saturday the 31st March,
2001 at 11:45 A.M. to transact |
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| the
following business:- |
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| A.
ORDINARY BUSINESS |
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| 1.
To confirm minutes of the 39th Annual General Meeting held on 30th March,
2000. |
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| 2.
To receive, consider and adopt the annual audited accounts of the company for
the year ended |
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| 30
September, 2000 together with the Director's and Auditors' reports there on. |
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| 3.
To consider and approve the payment of final cash dividend for the year ended
30th September, |
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| 2000,
as recommended by the Board of Directors of the company. The Directors have |
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| recommended
the final dividend @ 30% in addition to the interim dividend already declared
and |
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| paid
@ 20%, making total dividend @ 50% i.e. Rs. 5/- per share for the year ended
30th |
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| September,
2000. |
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| 4.
To appoint auditors for the year ending 30 September, 2001 and fix their
remuneration. |
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| 5.
To consider any other business which may be placed before the Shareholders
with the |
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| permission
of the chair. |
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| B.
SPECIAL RESOLUTIONS |
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| To
consider and if thought fit, to pass the following resolutions and special
resolutions with or |
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| without
amendments. |
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| (i)
Resolved that the consent of the company is hereby granted under section 208
of the |
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| Companies
Ordinance, 1984 to the Chief Executive of the company for advancing loans/ |
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| amounts
in cash or otherwise to the tune of Rs. 5.00 million to its associated
companies |
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| namely
Babri Cotton Mills Limited, Janana De Malucho Textile Mill Limited and |
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| Rahman
Cotton Mills Limited to meet the business transactions involving |
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| payments/reimbursement
of the branch offices expenses, for purchase and sale of raw |
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| materials,
stores & spares and for sharing other expenses incurred on behalf of the |
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| company,
subject to the conditions that the company will charge mark up at the rates
not |
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| less
then the borrowing cost of the company on such advances and all such |
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| loans/advances
shall be repaid/adjusted after every five years & shall be renewable for |
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| the
next five years again. |
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| (ii)
Further resolved that the words "Rs. 500' in clause 67 of the Articles
of Association of |
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| the
Company shall be replaced with the words "Rs. 3000". |
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By order of the Board |
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AMIN-UR-RASHEED |
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Company Secretary |
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& |
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| Dated
9th March, 2001 |
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Manager Corporate Affairs |
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| NOTES: |
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| 1.
The shares Transfer Books of the company shall remain closed from 23rd March,
to 29th March, 2001 |
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| both
days inclusive. |
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| 2.
Shares received in the Company's Registered Office before close of business
on 22 March, 2001 will be |
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| considered
in order for registration in the names of the transferees to receive the
dividend. |
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| 3.
Any member eligible to attend and vote at this meeting, shall be entitled to
appoint any other person as |
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| his/her
proxy to attend and vote in respect of him/her and proxy instrument dully
completed in all respect |
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| shall
be received by the company not later than 48 hours before the meeting. |
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| 4.
Statement of material facts u/s 160/1 (b) of the Companies Ordinance, 1984
regarding special business |
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| vide
paras (b) (i) and (ii) above is detailed here in below:- |
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| (B)
(i) (a) In order to run the business of the company efficiently and
economically, the Board of |
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| Directors
of the Company have decided that all the group companies of the textile
division |
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| will
share the branch offices expenses and instead of investing huge amounts in
the stores |
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| spares
and stocks of the company, the company shall be buying the required items as
and |
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| when
required from the sister companies and in order to meet the share office
expenses who |
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| is
conducting and looking after the affairs of the other companies of the
textile division and |
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| for
the proportionate reimbursement of branch offices expenses and for sharing
other |
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| expenses
on behalf of the company. This resolution is being proposed to reduce the |
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| overheads
of the company, instead of engaging individuals and independent
office/offices in |
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| major
cities of the country. |
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| b)
It is further stated that the financial position of the associated companies
is very sound in |
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| accordance
with the results of their published balance sheets as on 30th September,
2000. |
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| c)
Mark up shall be charged on these advances at the rates not less then the
company's own |
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| borrowing cost. |
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| d)
Keeping in view the sound financial position of the companies, the Board of
Directors have |
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| not
asked for any collateral security to be obtained from the above referred
companies. |
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| e)
The amount shall be advanced from the surplus funds available with the
company. |
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| f)
These loans shall be adjustable after every five years & these shall be
renewable for next five |
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| years again. |
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| g)
The purpose of such advances is to reduce the overhead expenses of the
company in order to |
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| run
the affairs of the company economically instead of hiring individuals/offices
in all major |
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| cities
of the country. |
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| h)
The total advances to the associated companies shall be within 30% of the
paid up capital |
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| plus
free reserve of the company |
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| B)
(ii) The Directors of the company have increased their meeting fee from Rs
500 to Rs. 3000 per |
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| meeting
which is necessitated to make amendments in Article 67 of the Articles of
Association |
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| of
the company. The meeting fee has been enhanced keeping in view the
depreciated value of |
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| Pak
rupee. The Directors are only interested to the extent of receiving this
meeting fee as and |
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| when
they will attend the Board meeting. |
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| DIRECTORS'
REPORT TO THE SHAREHOLDERS |
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| Dear
Shareholders, |
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| The
Directors of your-Company are pleased to present to you, the 40th Annual
Report with the |
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| Annual
Audited Accounts. These include Balance Sheet as on 30 September, 2000,
Profit and Loss |
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| Account
for the year ended 30 September, 2000 and the Auditors' Report to
Shareholders on these |
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| Accounts.
We are pleased to inform you that the operating performance of your Company
has further |
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| improved
as compared to the previous year 1999, as it has earned a Net Profit before
Taxation |
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| Rs.
51.501 million (Net Profit 1999-Rs 37.654 million) The Net profit for the
year has considerably |
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| increased
by 36.77% over the last year. This has been achieved due to increase in gross
sales, by |
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| Rs.
24.520 million, despite the payment of sale Tax increased by the Government
from 15% to 16.5% |
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| on
Gross Sales and your Company had to pay Rs. 4.300 million (Rs. 43. Lac)
additional amount of |
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| Sales
Tax during the year under Report. However, these commendable results were
achieved in the |
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| Woollen
Industry due to increased demand of Mills quality products, reasonable sales
prices and sound |
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| planning
of your professional management team. |
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| FINANCIAL
RESULTS |
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| Gross
Sales for the year 2000 amounted to Rs. 244.164 million (1999- Rs. 219.645
million). |
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| The
Net Sales revenue (after payment of Sales Tax, Commission and Trade Discounts
Rs. 39.832 |
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| million)
amounted to Rs. 204.332 million (1999 - Rs. 184.949 million after Sales Tax
etc. Rs. 34.696 |
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| million).
The cost of sales increased to Rs. 132.250 million (1999 - Rs. 128.012
million) an increase of |
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| only
4.238 million against this sales increased by Rs. 19.383 million. The Gross
Profit for the year |
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| amounted
to Rs. 72.082 million as compared to Rs. 56.936 million of the last year
1999. The Gross |
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| Profit
percentage works out to 35.28% of the sales against 30.78% of the previous
year. |
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| The
Company during the year earned an operating Profit (with other income) of Rs.
59.255 |
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| million
(1999 - Rs. 43. 147 million) and after adjustment/deduction of Rs. 7.753
million on account of |
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| other
charges (1999 - Rs. 5.493 million) and provision of Tax Rs. 14.900 million
(1999-Rs. 9.063 |
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| million),
the current year net profit available for appropriation amounted to Rs.
36.601 million (1999- |
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| Rs.
28.591 million). |
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| OPERATING
PERFORMANCE |
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| The
Company's Plant Capacity is 2338 Woollen Spindles and 44 Shuttle-less Looms.
The |
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| production
of Woollen yarn for Fabrics and Blankets was 1295046 Kgs (1999 - 1150707 Kgs)
and |
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| production
of Woollen greasy cloth was 1330429 meters (of 30 picks) (1999 - 1,224,019
meters). This |
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| increase
in production was due to improved attendance of workers and increase in
shifts worked/lower |
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| stoppage
of the machines during the year under review. |
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| NEW
INVESTMENT IN PLANT & MACHINERY-Rs. 40.00 million (Rs. 4.00 crore) |
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| Your
Directors are pleased to report that letters of Credit have been established
in 2000, for |
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| import
of One Ring Frame, One Woollen Card and Four Shuttle-Less Looms amounting to
Rs. 38.000 |
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| million
in order to enhance the production of fine Fabrics by about 25% of the
existing capacity. Four |
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| Shuttle-Less
looms have already stated commercial production during the month of November,
2000 |
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| and
the commercial production of Woollen Card and Ring Frame shall commence from
April 2001 |
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| Another
Rs. 2.5 million will be invested in the new factory building during the year
2001-2002. This |
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| investment
in Plant & Machinery is being financed from our own Cash Resources and
shall improve |
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| the
profitability by about 20% of current year's profit. |
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| DIVIDEND |
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| Your
Directors feel pleasure to inform you as under: |
|
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| i)
We approved the payment of interim dividend @ 20% during September, 2000 for
the |
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| first
time in the history of the Company. This interim dividend has already been
paid to |
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| all
the Shareholders of the Company. |
|
|
| ii)
We are further pleased to recommend to you to approve payment of final cash
dividend |
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| @
30% of the current year profit of the Company. |
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| The
total provision for cash dividend shall amount to Rs. 19.500 million i.e.
53.28% of the |
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| current
year Net Profit after taxation against statutory requirement of 40% under
Section 12(9A) of the |
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| Income
Tax Ordinance, 1979. The Directors have also recommended to approve the
transfer of |
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| Rs.
17.900 million to General Reserve of the Company. This will improve the
Shareholders Equity to |
|
| Rs.
130.925 million against paid up capital of Rs. 39.000 million only in
addition to surplus on |
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| revaluation
of fixed assets of Rs. 201.013 million. |
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|
| AUDITORS |
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| The
auditors of your company M/s Hameed Chaudhri & Co., Chartered
Accountants, H.M. |
|
| House,
7-Bank Square, Lahore retire and offer their services for re-appointment for
the next financial |
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| year. |
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| ACKNOWLEDGEMENT |
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| The
board of directors acknowledge with thanks the efforts and cooperation of the
team of |
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| management
and the labour. It also appreciates the tradition of good relations between
them going back |
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| to 40 years. |
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| For
the future the directors expect that with good quality raw material and
investment in |
|
| machinery
despite increase in wool prices in the following year, the company will keep
on making |
|
| progress
and earn higher profits. |
|
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| The
board of directors also expresses gratitude to the financial institutions,
i.e. National bank |
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| of
Pakistan, The Bank of Khyber and PICIC for their cooperation and financial
help to the Company. |
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|
For & on behalf of the Board of Directors |
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|
RAZA KULI KHAN KHATTAK |
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| Dated:
March 01,2001 |
|
Chairman |
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| DECADE
PERFORMANCE AT A GLANCE |
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| 1991 to 2000 |
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|
2000 |
1999 |
1998 |
1997 |
1996 |
1995 |
1994 |
1993 |
1992 |
1991 |
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| Sales - net |
|
204 |
185 |
178 |
164 |
143 |
135 |
118 |
121 |
113 |
84 |
| Profit before tax |
|
52 |
38 |
31 |
25 |
26 |
21 |
22 |
24 |
22 |
15 |
| Wages
to employees |
34 |
38 |
27 |
25 |
23 |
23 |
20 |
17 |
15 |
14 |
| Taxes
& duties to Govt. |
46 |
42 |
37 |
40 |
37 |
30 |
27 |
29 |
25 |
22 |
| Dividend to |
|
20 |
16 |
12 |
12 |
12 |
12 |
12 |
10 |
10 |
5 |
| Shareholders |
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|
|
| Rate-% |
|
50% |
40% |
30% |
30% |
30% |
30% |
30% |
30% |
10% |
30% |
|
|
|
& 30% |
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| Continuous
since 1981 |
|
Bonus |
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|
|
|
| SHARE
HOLDERS' EQUITY:- |
|
| Share Capital |
|
39 |
39 |
39 |
39 |
39 |
39 |
39 |
33 |
25 |
16 |
|
|
|
| Reserves & |
|
|
| Unappropriated |
|
92 |
75 |
62 |
50 |
46 |
38 |
36 |
20 |
23 |
6 |
| Fixed
Assets-cost |
354 |
352 |
158 |
139 |
137 |
121 |
88 |
82 |
74 |
71 |
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|
|
Rupees |
|
|
|
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|
| Break-up
value-per |
|
| share
of Rs. 10 each |
33.57 |
30.18 |
25.85 |
22.91 |
21.74 |
19.76 |
19.37 |
16.28 |
19.23 |
13.66 |
|
|
|
| Earning
per share of |
|
| Rs. 10 each |
|
9.38 |
7.33 |
5.95 |
4.16 |
4.98 |
3.39 |
3.80 |
4.48 |
5.23 |
3.47 |
|
|
|
|
|
PERCENTAGE |
|
| Profit before tax |
|
|
| % to sales |
|
25.20 |
20.36 |
17.68 |
15.36 |
18.32 |
15.45 |
19.02 |
19.68 |
18.57 |
17.97 |
|
|
|
| Return
on equity-% |
27.95 |
25.12 |
23.00 |
18.17 |
22.92 |
17.17 |
19.65 |
27.54 |
27.29 |
29.29 |
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|
| AUDITOR'S
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of BANNU WOOLLEN MILLS LIMITED as at
30 September, |
|
| 2000
and the related profit and loss account, cash flow statement and statement of
changes in equity together |
|
| with
the notes foxing 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 |
|
| supposing
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)
our opinion and to the best of our information and according to the
explanations given to us, |
|
| the
balance sheet, profit and loss accounts 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 30 September, 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. |
|
|
|
| LAHORE |
|
|
HAMEED CHAUDHRI & CO., |
|
| February
20, 2001 |
|
CHARTERED ACCOUNTANTS. |
|
|
|
| BALANCE
SHEET AS AT 30 SEPTEMBER, 2000 |
|
|
|
|
2000 |
1999 |
|
|
Note |
Rupees |
Rupees |
|
| CAPITAL
AND RESERVES |
|
| Authorised
capital |
|
| 5,000,000
ordinary shares of |
|
|
| Rs. 10 each |
|
|
|
50,000,000 |
50,000,000 |
|
|
|
|
========== |
========== |
|
| Issued
subscribed and |
|
| Paid-up-capital |
|
|
3 |
39,000,000 |
39,000,000 |
|
| Reserves |
|
4 |
91,900,000 |
74,000,000 |
|
| Unappropriated
profit |
|
|
24,487 |
823,230 |
|
|
|
------------------ |
------------------ |
|
|
|
130,924,487 |
113,823,230 |
|
|
|
|
|
| SURPLUS
ON REVALUATION |
|
|
|
| OF
FIXED ASSETS |
|
5 |
201,012,962 |
201,021,420 |
|
|
|
|
|
| DEFERRED
LIABILITIES |
|
|
|
| Deferred
taxation |
|
6 |
2,700,000 |
3,800,000 |
|
| Provision
for gratuity |
|
|
13,679,947 |
12,851,361 |
|
|
|
|
------------------ |
------------------ |
|
|
|
16,379,947 |
16,651,361 |
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
| Current
portion of |
|
|
|
| long term loan |
|
7 |
0 |
1,252,443 |
|
| Short
term finances |
|
8 |
15,189,487 |
24,254,247 |
|
| Creditors,
accrued |
|
|
|
| and
other liabilities |
|
9 |
40,432,531 |
23,125,940 |
|
| Workers'
welfare fund |
|
|
1,598,319 |
1,605,244 |
|
| Provision
for taxation |
|
10 |
31,250,760 |
29,468,298 |
|
| Dividends |
|
|
11 |
18,190,762 |
16,133,539 |
|
|
|
------------------ |
------------------ |
|
|
106,661,859 |
95,839,711 |
|
| CONTINGENCIES
AND |
|
|
|
| COMMITMENTS |
|
12 |
|
|
------------------ |
------------------ |
|
|
|
454,979,255 |
427,335,722 |
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
|
MUSHTAQ AHMAD KHAN, FCA. |
|
|
|
Director |
|
|
|
|
|
| TANGIBLE
FIXED ASSETS |
|
|
|
| Operating
fixed assets |
|
13 |
263,733,953 |
268,369,173 |
|
| Capital
work-in-progress |
|
14 |
15,935,008 |
0 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
279,668,961 |
268,369,173 |
|
|
|
|
| LONG TERM |
|
|
|
| INVESTMENTS |
|
15 |
6,576,492 |
6,577,402 |
|
| LONG
TERM LOANS |
|
16 |
0 |
104,200 |
|
| LONG
TERM DEPOSITS |
|
|
205,205 |
205,205 |
|
|
| CURRENT
ASSETS |
|
| Stores
and spares |
|
17 |
16,117,306 |
15,943,073 |
|
|
| Stock-in-trade |
|
|
18 |
47,854,694 |
37,474,807 |
|
|
| Trade debtors |
|
|
19 |
57,416,854 |
57,992,417 |
|
|
| Advances,
deposits, |
|
|
|
|
|
| Prepayments
and |
|
|
|
|
|
| other
receivables |
|
20 |
46,155,886 |
39,745,586 |
|
|
| Cash
and bank balances |
|
21 |
983,857 |
923,859 |
|
|
|
|
------------------ |
------------------ |
|
|
|
168,528,597 |
152,079,742 |
|
|
|
------------------ |
------------------ |
|
|
|
454,979,255 |
427,335,722 |
|
|
|
========== |
========== |
|
|
|
|
MUHAMMAD AZHAR KHAN |
|
|
|
Chief Executive |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED 30 SEPTEMBER, 2000 |
|
|
|
|
|
2000 |
1999 |
|
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| SALES -Net |
|
|
22 |
204,332,246 |
184,948,955 |
|
| COST
OF SALES |
|
23 |
132,250,339 |
128,012,411 |
|
| GROSS
PROFIT |
|
|
72,081,907 |
56,936,544 |
|
| ADMINISTRATIVE
AND SELLING |
|
|
| EXPENSES |
|
24 |
14,915,553 |
14,209,555 |
|
| OPERATING
PROFIT |
|
|
57,166,354 |
42,726,989 |
|
| OTHER
INCOME |
|
25 |
2,088,337 |
419,677 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
59,254,691 |
43,146,666 |
|
|
|
|
|
|
|
| OTHER
CHARGES |
|
|
|
| Financial - Net |
|
26 |
2,131,227 |
1,444,528 |
|
| Miscellaneous |
|
27 |
480,236 |
359,721 |
|
| Donation
to Waqf-e-Kuli Khan Trust |
|
1,419,202 |
1,033,561 |
|
| Workers'
(profit) participation fund |
9.2 |
2,838,402 |
2,067,121 |
|
| Workers'
welfare fund - Net |
|
|
884,367 |
588,003 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
7,753,434 |
5,492,934 |
|
|
|
|
------------------ |
------------------ |
|
| PROFIT
BEFORE TAXATION |
|
|
51,501,257 |
37,653,732 |
|
|
|
|
|
|
| PROVISION
FOR TAXATION |
|
|
|
| Current |
|
10 |
16,000,000 |
11,500,000 |
|
| Refunds |
|
|
|
0 |
(637,302) |
|
| Deferred |
|
(1,100,000) |
(1,800,000) |
|
|
|
------------------ |
------------------ |
|
|
|
14,900,000 |
9,062,698 |
|
|
------------------ |
------------------ |
|
| PROFIT
AFTER TAXATION |
|
|
36,601,257 |
28,591,034 |
|
| UNAPPROPRIATED
PROFIT- Brought forward |
|
823,230 |
1,832,196 |
|
|
|
|
------------------ |
------------------ |
|
| PROFIT
AVAILABLE FOR APPROPRIATION |
|
37,424,487 |
30,423,230 |
|
|
|
|
|
|
| APPROPRIATIONS: |
|
| Interim
dividend @ 20% (1999: @ Nil) |
|
7,800,000 |
0 |
|
| Proposed
final dividend @ 30% (1999: @ 40%) |
|
11,700,000 |
15,600,000 |
|
| Transfer
to general reserve |
|
17,900,000 |
14,000,000 |
|
|
|
------------------ |
------------------ |
|
|
|
37,400,000 |
29,600,000 |
|
|
|
|
------------------ |
------------------ |
|
| UNAPPROPRIATED
PROFIT |
|
|
| -
Carried to Balance Sheet |
|
|
24,487 |
823,230 |
|
|
|
|
========== |
========== |
|
| EPS |
|
30 |
9.38 |
7.33 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
MUSHTAQ AHMAD KHAN, FCA. |
|
MUHAMMAD AZHAR KHAN |
|
|
Director |
|
Chief Executive |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED 30 SEPTEMBER, 2000 |
|
|
|
|
|
2000 |
1999 |
|
|
|
Note |
Rupees |
Rupees |
|
|
| CASH
INFLOW FROM OPERATING ACTIVITIES |
|
| (note "A") |
|
34,531,883 |
35,735,583 |
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
|
|
| Fixed
capital expenditure - net |
|
|
(5,096,266) |
(163,886) |
|
| Exchange
gain on retirement of |
|
|
|
|
| Foreign
bills payable |
|
0 |
1,051,406 |
|
| Dividend
received |
|
|
757,931 |
0 |
|
| Sale
proceeds of fixed assets |
|
|
234,749 |
125,879 |
|
| Interest
received on bank deposit/ |
|
|
|
| Associated
Undertakings' balances |
|
1,467,112 |
2,999,159 |
|
|
|
------------------ |
------------------ |
|
| NET
CASH (OUTFLOW)/INFLOW FROM |
|
| INVESTING
ACTIVITIES |
|
|
(2,636,474) |
4,012,558 |
|
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
| Long
term loan installments repaid |
|
(1,252,443) |
(3,289,000) |
|
| Short
term finances - net |
|
|
(9,064,760) |
(19,997,190) |
|
| Dividend paid |
|
|
(17,441,867) |
(11,684,319) |
|
| Financial
charges paid |
|
|
(4,076,341) |
(4,753,850) |
|
|
|
|
------------------ |
------------------ |
|
| NET
CASH OUTFLOW FROM FINANCING ACTIVITIES |
(31,835,411) |
(39,724,359) |
|
|
|
|
------------------ |
------------------ |
|
| NET
INCREASE IN CASH AND CASH EQUIVALENTS |
59,998 |
23,782 |
|
|
|
|
| CASH
AND CASH EQUIVALENTS |
|
| -
At the beginning of the year |
|
|
923,859 |
900,077 |
|
|
|
|
| CASH
AND CASH EQUIVALENTS |
|
------------------ |
------------------ |
|
| -
At the end of the year |
|
|
983,857 |
923,859 |
|
|
========== |
========== |
|
|
| The
annexed note 'A' forms an integral part of this Statement. |
|
|
|
MUSHTAQ AHMAD KHAN, FCA. |
|
|
MUHAMMAD AZHAR KHAN |
|
|
Director |
|
|
Chief Executive |
|
|
|
|
|
|
|
| NOTE 'A' |
|
|
|
|
|
|
|
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| Profit
for the year-Before taxation |
|
|
51,501,257 |
37,653,732 |
|
|
| Adjustments
for: |
|
| Depreciation |
|
|
|
7,725,412 |
7,916,581 |
|
| Dividend
income |
|
|
(757,931) |
0 |
|
| Loss/(Gain)
on disposals of fixed assets |
|
124,865 |
(36,433) |
|
| Revaluation
surplus credited |
|
|
(8,458) |
(6,047) |
|
| Financial
charges |
|
|
3,541,756 |
4,677,330 |
|
| Provision
for gravity - net |
|
|
828,586 |
5,801,778 |
|
| Provision
for slow moving stores |
|
|
0 |
147,000 |
|
| Interest
on bank deposit Associated |
|
|
|
| Undertakings'
balances |
|
(1,467,112) |
(2,999,159) |
|
| Workers'
Welfare Fund |
|
|
884,367 |
588,003 |
|
|
------------------ |
------------------ |
|
|
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| -
Before working capital changes |
|
|
62,372,742 |
53,742,785 |
|
|
| (Increase)/decrease
in current assets |
|
|
|
| Stores
and spares |
|
|
(174,233) |
(1,252,672) |
|
| Stock-in-trade |
|
|
|
(10,379,887) |
13,897,939 |
|
| Trade debtors |
|
|
|
575,563 |
1,238,026 |
|
| Advances,
deposits, prepayments and |
|
|
|
| other
receivables (excluding income tax |
|
|
|
| and
current portion of long term loans) |
|
(12,947,131) |
(3,735,972) |
|
|
|
|
|
|
| Increase/Decrease)
in creditors, accrued and other |
|
|
|
| Liabilities
(excluding accrued financial charges) |
|
3,552,628 |
(18,958,203) |
|
|
|
------------------ |
------------------ |
|
|
|
(19,373,060) |
(8,810,882) |
|
|
------------------ |
------------------ |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| - Before taxation |
|
|
42,999,682 |
44,931,903 |
|
|
|
|
|
| Taxes paid |
|
|
(8,927,999) |
(9,562,320) |
|
|
------------------ |
------------------ |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| - After taxation |
|
34,071,683 |
35,369,583 |
|
| Long
term loans - net |
|
460,200 |
366,000 |
|
|
|
------------------ |
------------------ |
|
| NET
CASH INFLOW FROM OPERATING ACTIVITIES |
34,531,883 |
35,735,583 |
|
|
|
|
========== |
========== |
|
|
|
MUSHTAQ AHMAD KHAN, FCA. |
|
MUHAMMAD AZHAR KHAN |
|
|
Director |
|
Chief Executive |
|
|
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| FOR
THE YEAR ENDED 30 SEPTEMBER, 2000 |
|
|
|
Share |
Share |
General |
Total |
Unappropriated |
Total |
|
|
Capital |
Premium |
Reserve |
Reserve |
Profit |
|
|
|
|
|
|
|
(Rupees) |
|
|
|
|
|
| Balance as at |
|
|
| 30 September, |
|
39,000,000 |
19,445,313 |
40,554,687 |
60,000,000 |
1,832,196 |
100,832,196 |
|
| 1998 |
|
|
|
|
|
| Net
profit for the year |
0 |
0 |
0 |
0 |
28,591,034 |
28,591,034 |
|
| Proposed
dividend |
0 |
0 |
0 |
0 |
(15,600,000) |
(15,600,000) |
|
| Transfer
to general |
|
|
|
| Reserve |
|
0 |
0 |
14,000,000 |
14,000,000 |
(14,000,000) |
0 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Balance as at |
|
|
| 30 September, |
|
|
| 1999 |
|
39,000,000 |
19,445,313 |
54,554,687 |
74,000,000 |
823,230 |
113,823,230 |
|
|
|
|
| Net
profit for the |
|
| year |
|
0 |
0 |
0 |
0 |
36,601,257 |
36,601,257 |
|
|
|
|
|
|
| Interim dividend |
|
0 |
0 |
0 |
0 |
(7,800,000) |
(7,800,000) |
|
| Proposed
final dividend |
0 |
0 |
0 |
0 |
(11,700,000) |
(11,700,000) |
|
| Transfer
to general |
0 |
0 |
17,900,000 |
17,900,000 |
(17,900,000) |
0 |
|
| reserve |
|
|
|
|
|
|
|
| Balance as at |
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| 30 September, |
|
39,000,000 |
19,445,313 |
72,454,687 |
91,900,000 |
24,487 |
130,924,487 |
|
| 2000 |
|
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
MUSHTAQ AHMAD KHAN, FCA. |
|
MUHAMMAD AZHAR KHAN |
|
|
Director |
|
Chief Executive |
|
|
|
|
|
| NOTES
TO THE ACCOUNTS |
|
| FOR
THE YEAR ENDED 30 SEPTEMBER, 2000 |
|
|
| 1.
THE COMPANY AND ITS OPERATIONS |
|
|
| The
Company was incorporated in Pakistan as a Public Company in 1960 and its
shares are quoted on |
|
| Karachi
and Islamabad Stock Exchanges. It is principally engaged in manufacture and
sale of Woollen yarn, |
|
| cloth
and blankets. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
|
| 2.1
Basis of preparation |
|
| These
accounts have been prepared in accordance with the requirements Of the
Companies Ordinance, |
|
|
| 1984
and International Accounting Standards as applicable in Pakistan in all
material respects. |
|
|
|
|
| 2.2
Accounting convention |
|
| These
accounts have been prepared under the historical cost convention modified by |
|
| adjustments
of exchange rate fluctuations and revaluation of some of the fixed assets as |
|
| detailed
in notes 2.3 and 2.6 respectively. |
|
|
|
| 2.3
Foreign currency translations |
|
|
|
| Assets
and liabilities in foreign currencies are translated into Pak Rupees at the
exchange rates ruling |
|
| on
the balance sheet date except where forward exchange rates have been booked
which are translated |
|
| at
the contracted rates. |
|
|
|
|
|
|
| Exchange
gains/losses on principal loans are capitalized as pan of the cost of plant
and machinery |
|
| acquired
out of the proceeds of such loans. Other exchange gains/losses are included
in income |
|
| currently. |
|
|
|
|
|
|
| 2.4
Staff retirements benefits |
|
| The
Company operates a Provident Fund Scheme for its officers and supervisory
staff. Contribution to |
|
| the
Fund is made monthly to cover the obligation. The Company also operates an
un-funded Gratuity |
|
| Scheme
for employees not covered by the Provident Fund Scheme. Provision is made
annually to cover |
|
| the obligation. |
|
|
|
|
| 2.5 Taxation |
|
|
| Provision
for current taxation is made at the prevailing rates. Tax credits, rebates
and brought forward |
|
| losses
are recoginsed for arriving, at taxable income for the year. |
|
|
|
| The
Company accounts for deferred taxation, arising due to major timing
differences, using the liability |
|
| Method. |
|
|
|
|
| 2.6
Fixed assets and depreciation |
|
|
|
| Buildings
and plant & machinery are stated at reassessed replacement value less
accumulated |
|
| depreciation.
Freehold land is stated at reassessed replacement value. All other fixed
assets are stated at |
|
| cost
less accumulated depreciation. |
|
|
|
|
|
| All
additions, subsequent to the revaluation date, are stated at cost less
accumulated depreciation. |
|
| Exchange
rate fluctuations on foreign currency loans are incorporated in the cost of
plant and |
|
| machinery.
Borrowing costs pertaining to construction/erection period are also
capitalised as pan of the |
|
| historical cost. |
|
|
|
|
| Capital
work-in-progress is slated at cost. |
|
|
| Depreciation
is charged to income applying Reducing Balance Method to write-off the cost
and |
|
| revaluation
adjustments over estimated remaining useful life of assets at the rates
stated in note 13. |
|
|
| No.
depreciation is charged on assets in the year of disposal whereas full year's
depreciation is |
|
| charged
in the year of acquisition. |
|
|
|
|
|
|
| Gains/losses
on disposal of fixed assets are included in current income. |
|
|
|
|
| Minor
repairs and replacements are charged to income whereas major improvements and |
|
| modifications
are capitalised and assets replaced, other than those kept as stand-by, are
retired. |
|
|
| 2.7
Long term investments |
|
| These
are stated at cost. |
|
|
|
| 2.8
Deferred costs |
|
| Expenses,
the benefit of which is expected to spread over several years, are deferred
and amortised |
|
| over
their useful life not exceeding five years. |
|
|
|
| 2.9
Stores and spares |
|
|
|
| These
are valued at moving average cost except items-in transit which are valued at
cost |
|
| accumulated
to the balance sheet date. |
|
|
|
|
|
| 2.10
Stock in -trade |
|
|
|
| Basis
of valuation are as follows: |
|
|
|
|
|
|
| Particulars |
|
Mode of valuation |
|
|
|
|
| Raw materials |
|
|
| At warehouses |
|
- At lower of annual
average cost and net |
|
|
|
realisable value |
|
|
| In transit |
|
- At cost accumulated to
the balance sheet date. |
|
| Work-in-process |
- At cost. |
|
| Finished goods |
|
- At lower of cost and
net realisable value. |
|
| Usable waste |
|
- At estimated realisable
value. |
|
|
| -
Cost in relation to work-in-process and finished goods represents annual
average manufacturing |
|
| cost
which consists of prime cost and appropriate manufacturing overheads. |
|
|
| -
Net realisable value signifies the selling price in the ordinary course of
business less cost |
|
| necessary
to be incurred to bring the goods in saleable form. |
|
|
| 2.11
Revenue recognition |
|
|
|
| -
Revenue in respect of sales is recognised on despatch of goods. |
|
| -
Processing charges are accounted for on completion of jobs. |
|
| -
Return on deposits is accounted for on 'Receipt Basis' |
|
|
| 3.
ISSUED, SUBSCRIBED AND PAID-UP-CAPITAL |
|
|
|
|
2000 |
1999 |
|
|
Note |
Rupees |
Rupees |
|
|
| 2,259,375
ordinary shares of Rs. 10 each |
|
| issued
for cash |
|
|
22,593,750 |
22,593,750 |
|
| 1,640,625
ordinary shares of Rs. 10 each |
|
|
| issued as bonus shares |
|
|
16,406,250 |
16,406,250 |
|
|
|
------------------ |
------------------ |
|
|
|
|
39,000,000 |
39,000,000 |
|
|
|
========== |
========== |
|
|
| 4. RESERVES |
|
|
|
CAPITAL |
REVENUE |
2000 |
1999 |
|
|
Shares |
General |
Total |
Total |
|
|
Premium |
reserve |
|
|
|
|
|
(RUPEES) |
|
|
|
| Opening balance |
19,445,313 |
54,554,687 |
74,000,000 |
60,000,000 |
|
| Transfer
during the year |
0 |
17,900,000 |
17,900,000 |
14,000,000 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
| Balance
as at 30 September |
19,445,313 |
72,454,687 |
91,900,000 |
74,000,000 |
|
|
========== |
========== |
========== |
========== |
|
|
| 4.1
Shares premium account represents premium received on: |
|
|
| a)
859,375 shares @ Rs. 7.50 per share issued during the Financial Year 1991-92 |
|
| b)
650,000 right shares @ Rs. 20.00 per share issued during the Financial Year
1993-94 |
|
|
| 5.
SURPLUS ON REVALUATION OF FIXED ASSETS |
|
| Surplus
on revaluation of fixed assets |
|
| on 01 October, 1978 |
|
5,321,420 |
5,327,467 |
|
| Surplus
on revaluation of freehold land |
|
|
| on 15 May, 1999 |
|
13.2 |
195,700,000 |
195,700,000 |
|
|
|
------------------ |
------------------ |
|
|
|
|
201,021,420 |
201,027,467 |
|
| Less:
Credited to profit and loss account on |
|
|
| disposal of revalued asset |
|
25 |
8,458 |
6,047 |
|
|
|
------------------ |
------------------ |
|
|
|
201,012,962 |
201,021,420 |
|
|
========== |
========== |
|
|
| 5.1
Revaluation of freehold land, buildings and plant & machinery on 01
October, 1978 and |
|
| revaluation
of Freehold land on 15 May, 1999 resulted in a surplus of Rs. 6,680,309 and |
|
| Rs.
195,700,000 respectively over the book values which were credited to this
Account. However, |
|
| surplus
out of revaluation of fixed assets on 01 October, 1978, aggregating |
|
| Rs.
1,376,347 on disposal of revalued assets up to 30 September, 2000 has been
transferred to |
|
| profit
and loss account in the relevant years. |
|
|
| 6.
DEFERRED TAXATION |
|
| Credit
on account of accelerated tax |
|
| depreciation allowances |
|
7,300,000 |
7,800,000 |
|
| Debits
in respect of provisions for |
|
| Gratuity,
obsolete stores, etc. |
|
(4,600,000) |
(4,000,000) |
|
|
------------------ |
------------------ |
|
|
|
2,700,000 |
3,800,000 |
|
|
========== |
========== |
|
|
| 7.
CURRENT PORTION OF LONG TERM LOAN |
|
|
| (a)
This represented loan obtained from Pakistan Industrial credit and Investment
Corporation Limited |
|
| (PICIC)
in terms of Pak. Rupees equivalent to U.S. $ 69:2,792 converted into Pak.
Rupees at the |
|
| exchange
rates prevailing on the disbursements dates. It was repayable in 20 half
yearly un-equal |
|
| installments
commencing 01 January, 1991. |
|
|
| (b)
It was secured by an equitable mortgage of all the immovable properties,
hypothecation of plant & |
|
| machinery,
first floating charge on all other assets and demand promissory note and
carried interest |
|
| @ 14% per annum
calculated on daily product basis. |
|
|
| This
long term loan was fully repaid during the year. |
|
|
| 8.
SHORT TERM FINANCES - Secured |
|
| National
Bank of Pakistan (NBP) |
|
8.1 |
2,128,185 |
11,154,494 |
|
| The
Bank of Khyber (BOK) |
|
8.2 |
13,061,302 |
13,099,753 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
15,189,487 |
24,254,247 |
|
|
========== |
========== |
|
|
| 8.1
Cash finance facilities available from NBP under mark-up arrangements
aggregate Rs. 55.0 million |
|
| (1999:
Rs. 55.0 million). These are secured by pledge/hypothecation of stock
in-trade, 2nd |
|
| registered
collateral mortgage of fixed assets of the Company, demand bills, registered
charge on |
|
| stock-in-trade,
book debts and other assets of the Company and personal guarantees of the |
|
| Company's
Directors. These carry mark-up @ Re. 0.44 per thousand rupees calculated on
daily |
|
| products.
Facilities for opening letters of credit aggregate Rs. 25.0 million (1999: |
|
| Rs.
25.0 million) and are secured against documents of title to goods imported
under the letters of |
|
| credit.
These facilities are available till 30 September, 2001. |
|
|
| 8.2
The running finance facility available from BOK under mark-up arrangements
amounts to Rs. 15.0 |
|
| (1999:
Rs. 15.0 million). It is secured by way of registered hypothecation of stocks
and demand |
|
| promissory
note of Rs. 18.615 million. It carries mark-up @ Re.0.42 per thousand .rupees |
|
| calculated
on daily products. This facility will expire on 04 August, 2001. |
|
|
| 9.
CREDITORS, ACCRUED AND OTHER LIABILITIES |
|
| Due
to Associated Undertakings |
|
20.1 |
3,241,302 |
1,940,767 |
|
| Creditors |
|
|
|
1,225,449 |
827,485 |
|
| Bills payable |
|
|
9.1 |
14,288,548 |
0 |
|
| Advance
payments |
|
|
1,214,324 |
453,216 |
|
| Accrued
expenses |
|
|
10,399,031 |
10,599,106 |
|
| Interest
accrued on secured long |
|
|
|
|
| term loan |
|
|
|
0 |
55,395 |
|
| Mark-up
accrued on secured short |
|
|
|
| term finances |
|
|
|
168,504 |
647,694 |
|
| Sales
tax payable |
|
|
3,849,661 |
3,788,946 |
|
| Customs duty |
|
|
|
|
|
| Income
tax deducted at source |
|
|
0 |
2,667 |
|
| Workers'
(profit) participation fund |
9.2 |
3,198,280 |
2,348,819 |
|
| Waqf-e-Kuli
Khan Trust |
|
|
1,556,014 |
1,882,837 |
|
| Others |
|
|
11,114 |
12,494 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
40,432,531 |
23,125,940 |
|
|
|
========== |
========== |
|
|
|
| 9.1
These are secured against import documents |
|
|
|
| 9.2
Workers' (profit) participation fund |
|
| Opening
balance |
|
|
2,348,819 |
1,916,646 |
|
| Interest
for the year |
|
|
391,874 |
247,359 |
|
|
|
------------------ |
------------------ |
|
|
|
2,740,693 |
2,191,005 |
|
| Less:
Payments made during the year |
|
2,380,815 |
1,909,307 |
|
|
|
------------------ |
------------------ |
|
| Undistributed
amount |
|
359,878 |
281,698 |
|
| Contribution
for the year |
|
2,838,402 |
2,067,121 |
|
|
|
------------------ |
------------------ |
|
|
|
3,198,280 |
2,348,819 |
|
|
|
========== |
========== |
|
|
| 10.
PROVISION FOR TAXATION |
|
| Opening
balance |
|
|
29,468,298 |
25,013,678 |
|
| Add:
Transfer from Workers' Welfare Fund |
|
891,292 |
399,390 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
30,359,590 |
25,413,068 |
|
| Provision
for the year |
|
|
16,000,000 |
1,150,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
46,359,590 |
36,913,068 |
|
|
|
|
| Less:
Adjustments against completed assessments |
|
15,108,830 |
7,444,770 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
31,250,760 |
29,468,298 |
|
|
|
|
========== |
========== |
|
|
| 10.1
Income tax assessments of the Company have been completed upto the Income
Year ended 30 |
|
| September,
1998 (Assessment Year 1999-2000) |
|
|
| 10.2
a) The Company has filed a Reference Application against the orders of the
Income tax |
|
| Appellate
Tribunal (ITAT) for set-asiding the decisions of the Assessment Years |
|
|
| 1986-87
to 1988-89. |
|
|
|
|
|
|
| b)
The Assessing Officer has revised assessment order for the Assessment Year
1991-92 |
|
| U/S
156 of the Income Tax Ordinance, 1979 and has raised aggregate tax demand of |
|
|
| Rs.
1.968 million. On an appeal filed by the Company against the said revised
order, |
|
|
| ITAT
has remanded the case back to the Commissioner of Income Tax (Appeals) |
|
|
| [CIT(A)]. |
|
|
|
|
|
|
| c)
The Assessing Officer has also revised assessment order for the Assessment
Year |
|
|
| 1996-97
U/S 156 of the Income Tax Ordinance, 1979 and has raised aggregate tax |
|
|
| demand
of Rs. 3.269 million for interest on dealers outstanding balances. On an |
|
|
| appeal
filed by the Company against the said revised order, the CIT (Appeals) has
set |
|
|
| aside
the case for re-examination. |
|
|
|
|
| d)
The Company has also filed an appeal with the ITAT for certain add-backs made
by |
|
|
| the
Assessing Officer for the Assessment Year 1996-97.The appeal is pending for |
|
|
| decision. |
|
|
|
|
|
|
| e)
The Company has filed appeals with CIT (Appeals) against certain add backs
made |
|
|
| by
the Assessing officer lot' the Assessment Years 1997-98 to 1999-2000. The |
|
|
| appeals
are pending for decision. |
|
|
|
|
| 11. DIVIDENDS |
|
|
| Unclaimed |
|
728,428 |
533,539 |
|
| Interim |
|
5,762,334 |
0 |
|
| Proposed final |
|
11,700,000 |
15,600,000 |
|
|
|
------------------ |
------------------ |
|
|
|
18,190,762 |
16,133,539 |
|
|
|
========== |
========== |
|
|
|
|
| 12.
CONTINGENCIES AND COMMITMENTS |
|
|
|
|
|
|
| 12.1
Indemnity Bond given by the Company as at 30 September, 2000 was outstanding
for Rs. 8.0 |
|
| million
(1999: Rs. 8.0 million). |
|
|
|
|
| 12.2
Commitments against irrevocable letters of credit outstanding as |
|
| at
30 September were for |
|
|
|
|
|
|
|
(Rupees in
Millions) |
|
|
|
|
| -
Capital expenditure |
|
9.762 |
1.644 |
|
| - Others |
|
9.965 |
7.906 |
|
|
|
------------------ |
------------------ |
|
|
|
19.727 |
9.550 |
|
|
========== |
========== |
|
|
| 12.3
Refer contents of notes 10.2 |
|
|
| 13.
OPERATING FIXED ASSETS-Tangible |
|
|
|
|
COST/REVALUATION |
|
Rate |
|
DEPRECIATION |
|
BOOK |
|
|
VALUE |
| PARTICULARS |
As at 30 |
Additions |
Disposals/ |
As at 30 |
% |
To 30 |
For the |
On |
To 30 |
AS AT 30 |
|
September, |
|
Adjustments |
September, |
|
September, |
year |
disposals |
September, |
SEPTEMBER, |
|
2000 |
|
2000 |
|
1999 |
|
2000 |
2000 |
|
| Freehold
land cost |
152,223 |
0 |
0 |
152,223 |
0 |
0 |
0 |
0 |
0 |
152,223 |
| Revaluation |
|
197,847,777 |
0 |
0 |
197,847,777 |
0 |
0 |
0 |
0 |
0 |
197,847,777 |
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
198,000,000 |
0 |
0 |
198,000,000 |
0 |
0 |
0 |
0 |
0 |
198,000,000 |
|
| Buildings
on freehold land |
|
| Factory |
|
| Cost |
|
6,280,399 |
0 |
0 |
6,280,399 |
10 |
3,388,598 |
289,180 |
0 |
3,677,778 |
2,602,621 |
| Revaluation |
|
735,847 |
0 |
0 |
735,847 |
10 |
580,134 |
15,571 |
0 |
595,705 |
140,142 |
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
7,016,246 |
0 |
0 |
7,016,246 |
|
3,968,732 |
304,751 |
0 |
4,273,483 |
2,742,763 |
|
| Residential |
|
| Cost |
|
831,646 |
0 |
0 |
831,646 |
10 |
571,934 |
25,971 |
0 |
597,905 |
233,741 |
| Revaluation |
|
230,795 |
0 |
0 |
230,795 |
10 |
181,957 |
4,884 |
0 |
186,841 |
43,954 |
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
1,062,441 |
0 |
0 |
1,062,441 |
|
753,891 |
30,855 |
0 |
784,746 |
277,695 |
|
| Others |
|
| Cost |
|
1,484,707 |
453,300 |
0 |
1,938,007 |
5 |
982,443 |
47,778 |
0 |
1,030,221 |
907,786 |
| Revaluation |
|
859,562 |
0 |
0 |
859,562 |
5 |
456,095 |
20,173 |
0 |
476,268 |
383,294 |
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
2,344,269 |
453,300 |
0 |
2,797,569 |
|
1,438,538 |
67,951 |
0 |
1,506,489 |
1,291,080 |
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
10,442,956 |
453,300 |
0 |
10,876,256 |
0 |
6,161,161 |
403,557 |
0 |
6,564,718 |
4,311,538 |
|
| Plant
and machinery |
|
| Cost |
|
133,584,797 |
96,906 |
1,264,895 |
132,416,808 |
10 |
71,718,788 |
6,161,184 |
913,820 |
76,966,152 |
55,450,656 |
| Revaluation |
|
1,347,439 |
0 |
8,458 |
1,338,981 |
10 |
1,063,049 |
28,260 |
6,668 |
1,084,641 |
254,340 |
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
134,932,236 |
96,906 |
1,273,353 |
133,755,789 |
|
72,781,837 |
6,189,444 |
920,488 |
78,050,793 |
55,704,996 |
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Weightment
and material |
|
| handling
equipment |
410,913 |
0 |
0 |
410,913 |
10 |
206,817 |
20,410 |
0 |
227,227 |
183,686 |
| Tools
and equipment |
18,303 |
0 |
480 |
17,823 |
10 |
12,689 |
557 |
437 |
12,809 |
5,014 |
| Furniture
and fixtures |
308,991 |
34,718 |
29,050 |
314,659 |
10 |
185,323 |
15,562 |
26,288 |
174,597 |
140,062 |
| Electric fittings |
|
2,353,918 |
56,557 |
50,965 |
2,359,510 |
10 |
1,052,577 |
135,395 |
47,021 |
1,140,951 |
1,218,559 |
| Office
equipment |
836,732 |
176,450 |
0 |
1,013,182 |
10 |
3,666,349 |
64,653 |
0 |
431,302 |
581,880 |
| Vehicles |
|
4,858,342 |
2,631,875 |
0 |
7,490,217 |
20 |
366,649 |
894,858 |
0 |
3,910,787 |
3,579,430 |
| Arms |
|
27,350 |
0 |
0 |
27,350 |
10 |
3,015,929 |
976 |
0 |
18,562 |
8,788 |
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
| Rupees |
|
352,169,741 |
3,449,806 |
1,353,848 |
354,265,699 |
|
17,586 |
7,725,412 |
994,234 |
90,531,746 |
263,733,953 |
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
| 1999 Rupees |
|
157,814,459 |
195,863,886 |
1,508,604 |
352,169,741 |
|
76,251,739 |
7,916,581 |
367,752 |
83,800,568 |
268,369,173 |
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
| 13.1
Some of the fixed assets as detailed in Note 13, were revalued on 1 October,
1978 in order to |
|
| replace
their historical cost with the gross reassessed replacement value and the
surplus arisen |
|
| as
a result of such revaluation was transferred to 'Surplus on Revaluation of
Fixed Assets |
|
| Account'
(note 5). |
|
|
|
|
|
|
| 13.2
Freehold land of the Company was again revalued on 15 May, 1999 resulting in
a revaluation |
|
| surplus
of Rs. 195,700,000 which was transferred to Surplus on Revaluation of Fixed
Assets |
|
| (Note-5)
to comply with the requirement of Section 235 of the Companies Ordinance,
1984. |
|
| The
revaluation exercise was carried out to replace the value with the
re-assessed replacement |
|
| value. |
|
|
|
|
| 13.3
Depreciation for the year has been apportioned as under: |
|
|
|
|
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
|
| Cost of Sales |
|
6,629,556 |
7,289,478 |
|
| Administrative
expenses |
|
1,095,856 |
627,103 |
|
|
|
------------------ |
------------------ |
|
|
|
7,725,412 |
7,916,581 |
|
|
|
========== |
========== |
|
|
|
|
| 13.4
Depreciation on revalued portion of fixed assets was not charged uptill 1984.
Such unprovided |
|
| depreciation
worked-out Rs. 357,342 as at 30 September, 2000 (1999: Rs.391,849). |
|
|
|
|
| 13.5
Disposal of operating fixed assets. |
|
|
|
|
|
|
Cost & |
Accumulated |
Book |
Sale |
Gain/ |
Sold through |
|
| Particulars |
|
Revaluation |
depreciation |
value |
proceeds |
Loss |
negotiations to: |
|
|
| Plant
and machinery: |
|
|
|
| Four
Shuttleless somet loans |
1,189,851 |
853,802 |
336,049 |
160,000 |
(176,049) |
Mr. Abdul Hameed |
|
|
|
Darul Ihsan Town, |
|
|
|
|
Samundari Road. |
|
|
|
|
Faisalabad. |
|
|
|
|
| One
Rope washing machine |
18,378 |
16,461 |
1,917 |
16,083 |
16,083 |
-do- |
|
|
|
|
| One
PEL transformer |
65,124 |
50,225 |
14,899 |
50,000 |
35,101 |
Mr. Hashim Daraz Khan |
|
|
|
|
Agency DHQ Hospital. |
|
|
|
|
Miran Shah, South |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
Wazirastan |
|
|
1,273,353 |
920,488 |
352,865 |
228,000 |
(124,865) |
|
|
|
|
| Tools
and equipments |
480 |
437 |
43 |
43 |
0 |
Brig. (Rtd.) Mahmud Jan |
|
|
Ex-director |
|
| Electric fittings |
|
| Air
conditioners, |
|
| refrigerator & |
|
| room heater etc. |
|
50,965 |
47,021 |
3,944 |
3,944 |
0 |
-do- |
|
|
|
|
|
| Furniture
and Fixture |
29,050 |
26,288 |
2,762 |
2,762 |
0 |
-do- |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
| Rupees |
|
1,353.85 |
94,234 |
359,614 |
234,749 |
(124,865) |
|
|
|
========== |
========== |
========== |
========== |
========== |
|
|
|
|
|
| 14.
CAPITAL WORK-IN-PROGRESS |
|
| This
represents cost and expenses of imposed Four Shuttleless sulzer looms. |
|
|
| 15.
LONG TERM INVESTMENTS - At cost |
|
|
|
|
|
2000 |
1999 |
|
|
|
Note |
Rupees |
Rupees |
|
| Associated
Undertakings - Quoted |
|
| Babri
Cotton Mills Limited |
|
| 125,584
(1999: 125,654) ordinary |
|
| shares
of Rs. 10 each |
|
15.1 |
1,632,592 |
1,632,592 |
|
|
| Market
value Rs. 3,767,520 (1999: Rs. 628,270) |
|
| Janana
De Malucho Textile Mill Limited: |
|
| 380300
ordinary shares of Rs. 10 each |
|
4,943,900 |
4,943,900 |
|
|
| Market
value Rs. 7,606,000 (1999: Rs.2,281,800) |
|
------------------ |
------------------ |
|
|
|
6,576,492 |
6,577,402 |
|
|
========== |
========== |
|
|
| 15.1
(a) These shares of Babri Cotton Mills Limited are held by National Bank of
Pakistan as |
|
| security
against short term finances extended to Janana De Malucho Textile Mills |
|
| Limited. |
|
|
|
|
| (b)
70 shares of Babri Cotton Mills Limited were distributed during the year by
way of |
|
| dividend
in specie and adjusted accordingly at the rate of Rs. 13 per share. |
|
|
|
|
| 16.
LONG TERM LOANS - Considered good |
|
|
| Loan
to a Director - Secured |
|
16.2 |
0 |
300,000 |
|
| Loan
to an Executive - Unsecured |
|
16.3 |
0 |
160,200 |
|
|
|
|
------------------ |
------------------ |
|
|
|
0 |
460,200 |
|
| Less:
Current portion grouped |
|
|
| under
current assets |
|
|
0 |
356,000 |
|
|
------------------ |
------------------ |
|
|
|
0 |
104,200 |
|
|
========== |
========== |
|
|
| 16.1
The above balance may be classified as under: |
|
| Out
standing for periods exceeding 3 years |
|
0 |
0 |
|
|
| Others |
|
|
0 |
104,200 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
0 |
104,200 |
|
|
|
|
|
========== |
========== |
|
|
| 16.2
This represented balance of interest free loan of Rs. 2.0 million given to a
working Director |
|
| during
1994 for construction of House as approved by the Corporate Law Authority
vide its |
|
| letter
No. CL-195/1/94-95 dated 20 September. 1994. This was secured against demand |
|
| promissory
note and pledge of 35,000 shares of the Company owned by the said Director.
The |
|
| loan
was recoverable in 20 equal quarterly installments commencing 30 September,
1995. The |
|
| outstanding
balance of this loan has been fully recovered during the year by the Company. |
|
|
| 16.3
This interest-free loan had been granted for purchase of Vehicle and was
recoverable over a |
|
| period
of four years commencing June, 1998. However, balance amount of this loan has
been |
|
| fully
recovered during the year by the Company. |
|
|
| 16.4
Refer contents of note 20.2 |
|
|
|
|
|
2000 |
1999 |
|
|
|
Note |
Rupees |
Rupees |
|
|
|
| 17.
STORES AND SPARES |
|
| Stores |
|
17.1 |
9,320,169 |
7,407,479 |
|
| Spares |
|
|
7,147,137 |
8,885,594 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
16,467,306 |
16,293,073 |
|
| Less:
Provision for slow moving items |
|
350,000 |
350,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
16,117,306 |
15,943,073 |
|
|
|
|
========== |
========== |
|
|
| 17.1
Stores amounting Rs. 2.602 million (1999: Rs. Nil) were in transit as at
balance sheet date. |
|
|
|
|
| 17.2
The Company does not hold any stores and spares for specific capitalisation. |
|
|
| 18.
STOCK-IN-TRADE |
|
| Raw materials |
|
|
| At
warehouse including Rs. 5.511 million |
|
| (1999:
Rs. 2.186 million) in Customs Bond |
|
27,862,390 |
15,618,571 |
|
| In transit |
|
|
5,934,270 |
4,077,488 |
|
|
------------------ |
------------------ |
|
|
33,796,660 |
19,696,059 |
|
| Work-in-process |
|
6,633,619 |
8,328,785 |
|
| Finished goods |
|
|
7,424,415 |
9,449,963 |
|
|
|
|
------------------ |
------------------ |
|
|
47,854,694 |
37,474,807 |
|
|
========== |
========== |
|
|
|
|
| 19.
TRADE DEBTORS |
|
|
|
| These
are unsecured and considered good. |
|
|
|
| 20.
ADVANCES, DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES |
|
| Due
from Associated Undertakings |
20.1 |
13,646,836 |
12,908,658 |
|
| Current
portion of long term loans |
|
16 |
0 |
356,000 |
|
|
|
|
| Loans
and advances to employees |
|
| - Considered good |
|
|
183,417 |
208,393 |
|
|
|
|
| Advance
payments |
|
|
239,632 |
145,838 |
|
| Margin deposits |
|
|
10,133,300 |
2,261,900 |
|
| Prepayments |
|
|
61,732 |
82,716 |
|
| Letters of credit |
|
|
3,942,023 |
186,925 |
|
| Income
tax refundable/advance tax/ |
|
| tax
deducted at source |
|
|
16,844,205 |
23,025,036 |
|
| Claims
receivable - Considered good |
|
1,104,741 |
570,120 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
46,155,886 |
39,745,586 |
|
|
|
|
========== |
========== |
|
|
| 20.1
Associated Undertakings: |
|
|
| a)
Mark-up has been charged/paid at the rate ranging from Re.0.42 to Re. 0.49
per |
|
| thousand
Rupees on the current account balances of the Associated Undertakings. |
|
| However,
no mark-up has been paid on the current account balances of Universal |
|
| Insurance
Company Limited as these balances have arisen on account of insurance |
|
| premium
payable. |
|
|
|
|
|
|
| b)
Maximum aggregate debit balance of Associated Undertakings at any month end |
|
| during
the year was Rs.13,646,839 (1999 Rs.28,978,616) |
|
|
|
| c)
Aggregate transactions with the Associated Undertakings during the year were
as |
|
| follows: |
|
|
|
|
|
|
|
2000 |
1999 |
|
|
|
|
Rupees |
Rupees |
|
|
| Purchase
of goods and services |
|
|
2,292,976 |
1,730,738 |
|
| Sales
of goods and services |
|
|
330,940 |
445,714 |
|
| Interest paid |
|
|
290,153 |
109,522 |
|
| Dividend paid |
|
|
6,352,818 |
3,236,364 |
|
| Dividend
received |
|
|
757,931 |
0 |
|
| Interest
received |
|
|
1,328,386 |
2,986,583 |
|
|
| 20.2
Maximum aggregate debit balance of the Chief Executive at any month end
during the year |
|
| was
Rs. Nil (1999: Rs.9,492) and of the Director was Rs. 300,000 (1999:
Rs.600,000). |
|
|
|
|
| Maximum
aggregate debit balance of the Executives at any month end during the year
was |
|
| Rs.
299,228 (1999: Rs.234,926). |
|
|
| 21.
CASH AND BANK BALANCES |
|
| Cash -in-hand |
|
|
|
66,070 |
103,555 |
|
| Cash
at banks on: |
|
|
|
| Current
accounts |
|
645,236 |
765,508 |
|
| Deposit account |
|
|
31,887 |
0 |
|
| Dividend
accounts |
|
240,664 |
54,796 |
|
|
------------------ |
------------------ |
|
|
|
917,787 |
820,304 |
|
|
|
------------------ |
------------------ |
|
|
|
983,857 |
923,859 |
|
|
========== |
========== |
|
|
|
| 22.
SALES - Net |
|
| Fabrics
and blankets |
|
239,761,622 |
219,306,851 |
|
| Yarn |
|
3,738,690 |
0 |
|
| Wastes |
|
648,918 |
333,383 |
|
| Processing
charges |
|
15,318 |
4,664 |
|
|
|
------------------ |
------------------ |
|
|
|
244,164,548 |
219,644,898 |
|
|
|
------------------ |
------------------ |
|
| Less: |
|
| Sales
tax {(including Rs. Nil relating |
|
| to
prior years) (1999: Rs. 266,000)} |
|
32,582,754 |
28,280,841 |
|
| Discount |
|
|
81,454 |
555,800 |
|
| Commission |
|
|
6,268,094 |
5,859,302 |
|
|
|
------------------ |
------------------ |
|
|
|
39,832,302 |
34,695,943 |
|
|
|
------------------ |
------------------ |
|
|
|
204,332,246 |
184,948,955 |
|
|
========== |
========== |
|
|
| 23.
COST OF SALES |
|
| Raw
materials consumed |
|
23.1 |
67,425,078 |
62,193,036 |
|
|
| Salaries,
wages and benefits including gratuity |
|
|
|
| expense
of prior years |
|
|
|
|
| Nil
(1999: Rs. 4,210.813) |
|
|
24,976,089 |
28,205,645 |
|
|
| Power and fuel |
|
|
|
13,406,611 |
11,852,366 |
|
|
| Stores
consumed |
|
|
9,522,861 |
9,738,803 |
|
|
| Repair
and maintenance |
|
|
5,072,702 |
4,851,386 |
|
|
| Depreciation |
|
|
|
6,629,556 |
7,289,478 |
|
|
| Insurance |
|
|
|
480,918 |
481,245 |
|
|
| Others |
|
|
|
115,810 |
154,698 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
128,529,625 |
24,766,657 |
|
|
| Adjustment
of work-in-process |
|
| Opening |
|
|
8,328,785 |
7,041,559 |
|
| Closing |
|
|
(6,633,619) |
(8,328,785) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,695,166 |
1,287,226) |
|
|
|
|
------------------ |
------------------ |
|
| Cost
of goods manufactured |
|
|
130,224,791 |
123,479,431 |
|
|
|
|
| Adjustment
of finished goods |
|
| Opening |
|
9,449,963 |
13,982,943 |
|
| Closing |
|
|
(7,424,415) |
(9,449,963) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
2,025,548 |
4,532,980 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
132,250,339 |
128,012,411 |
|
|
|
|
========== |
========== |
|
|
| 23.1
Raw materials consumed |
|
| Purchases
{(net of returns of Rs. Nil (1999: 111,565)} |
81,525,679 |
51,540,851 |
|
|
| Adjustment
of stock |
|
| Opening |
|
19,696,059 |
30,348,244 |
|
| Closing |
|
|
(33,796,660) |
(19,696,059) |
|
|
|
------------------ |
------------------ |
|
|
|
(14,100,601) |
10,652,185 |
|
|
|
------------------ |
------------------ |
|
|
|
67,425,078 |
62,193,036 |
|
|
|
========== |
========== |
|
|
|
|
| 24.
ADMINISTRATIVE AND SELLING EXPENSES |
|
| Administrative: |
|
| Salaries
and benefits including gratuity |
|
| expense
of prior years Nil (1999: Rs. 434,494) |
|
7,754,927 |
7,431,350 |
|
| Travelling
including |
|
|
|
|
| directors'
Rs. 450,529 (1999: Rs. 758.833) |
|
651,538 |
914,408 |
|
| Rent,
rates and taxes |
|
|
453,014 |
263,797 |
|
| Entertainment/guest
house expenses |
|
229,514 |
162,286 |
|
| Communication |
|
|
463,123 |
410,192 |
|
| Printing
and Stationery |
|
|
333,943 |
244,630 |
|
| Electricity |
|
|
973,008 |
634,139 |
|
| Insurance |
|
|
10,198 |
8,401 |
|
| Repair
and maintenance |
|
|
218,942 |
146,025 |
|
| Vehicles'
running |
|
|
740,832 |
690,034 |
|
| Advertisement |
|
|
17,553 |
58,860 |
|
| Subscription/papers
and |
|
|
| periodicals |
|
|
121,060 |
92,070 |
|
| General |
|
|
57342 |
21,581 |
|
| Depreciation |
|
|
1,095,856 |
627,103 |
|
|
------------------ |
------------------ |
|
|
|
|
13,120,940 |
11,704,876 |
|
|
|
|
| Selling
& distribution: |
|
| Salaries
and benefits |
|
|
1,354,076 |
1,247,055 |
|
| Travelling |
|
|
19,731 |
10,900 |
|
| Outward freight |
|
|
3,860 |
4,977 |
|
| Sales
promotion/samples |
|
|
233,963 |
215,380 |
|
| Publicity |
|
|
33,000 |
73,660 |
|
| Export tax |
|
|
0 |
952,707 |
|
| Communication |
|
|
23,057 |
0 |
|
| Vehicle's
running |
|
|
105,755 |
0 |
|
| Others |
|
|
21,171 |
0 |
|
|
------------------ |
------------------ |
|
|
|
|
1,794,613 |
2,504,679 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
14,915,553 |
14,209,555 |
|
|
|
|
========== |
========== |
|
|
| 24.1
The Company has shared expenses of Combined Offices with the Associated
Undertakings |
|
| aggregating
Rs. 3,302,772 (1999: Rs. 1,856,905). |
|
|
|
| 25.
OTHER INCOME |
|
| Empties/scrap/trees
sale |
|
241,968 |
203,945 |
|
| Gain
on disposals of fixed assets |
|
0 |
36,433 |
|
| Surplus
on revaluation of fixed assets |
credited |
5 |
8,458 |
6,047 |
|
| Unclaimed
balances written back |
|
1,073,688 |
173,252 |
|
| Dividend |
|
|
757,931 |
0 |
|
| Gain
on sale of stores |
|
6,292 |
0 |
|
|
|
|
------------------ |
------------------ |
|
|
2,088,337 |
419,677 |
|
|
========== |
========== |
|
|
| 26.
FINANCIAL CHARGES - Net |
|
| Interest on: |
|
| Secured
long term loan |
|
|
41,089 |
385,704 |
|
| Employees'
Provident Fund |
|
|
279,062 |
46,496 |
|
| Workers'
(Profit) participation fund |
|
391,874 |
274,359 |
|
|
|
|
|
|
| Mark up on: |
|
|
| Associated
Undertakings' balances |
|
290,153 |
109,522 |
|
| Secured
short term finances |
|
|
2,539,578 |
3,861,249 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
3,541,756 |
4,677,330 |
|
|
| Less: |
Interest/profit earned
on: |
|
|
Dealers balances |
|
0 |
274,184 |
|
|
Associated Undertakings'
balances |
328,386 |
2,986,583 |
|
|
Bank deposit account |
|
138,726 |
12,576 |
|
|
|
------------------ |
------------------ |
|
|
|
1,467,112 |
3,273,343 |
|
|
|
|
|
|
2,074,644 |
1,403,987 |
|
| Bank charges |
|
|
56,583 |
40,541 |
|
|
|
------------------ |
------------------ |
|
|
|
2,131,227 |
1,444,528 |
|
|
|
========== |
========== |
|
|
| 27.
MISCELLANEOUS CHARGES |
|
| Auditors'
remuneration |
|
| Audit fee |
|
|
100,000 |
75,000 |
|
| Consultancy
charges |
|
|
30,000 |
30,000 |
|
| Out-of-pocket
expenses |
|
|
15,000 |
7,500 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
145,000 |
112,500 |
|
|
|
|
|
|
| Donations |
|
27.1 |
66,800 |
25,596 |
|
| Legal
and professional charges (other than Auditors) |
143,571 |
221,625 |
|
| Loss
on disposal of fixed assets |
|
|
124,865 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
480,236 |
359,721 |
|
|
========== |
========== |
|
|
| 27.1
In addition to these, Rs. 1,419,202 (1999: Rs.l,033,561) have been donated to
Waqf-e-Kuli |
|
| Khan
Trust (a Charitable Institution) administered by the following directors of
the Company: |
|
|
| 1.
Mr. Raza Kuli Khan Khattak |
2. Mr. Ahmad Kuli Khan
Khattak |
|
| 3.
Mrs. Shahnaz Sajjad Ahmad |
4. Mr. Mushtaq Ahmad
Khan, FCA |
|
| 5.
Mrs. Zeb Gohar Ayub Khan |
6. Mrs. Shaheen Tariq
Khalil |
|
|
| 28.
SUMMARISED RESULTS OF UNIT-II, |
|
|
| The
Company during 1995, installed Unit No. II for manufacture of woollen yarn,
cloth and blankets. |
|
| This
Unit is exempt from tax for a period of eight years w.e.f. January, 1995
under sub-clause (C) of |
|
| clause
(118-H) of Part-I of the Second Schedule to the Income Tax Ordinance, 1979.
The Regional |
|
| Commissioner
of Income Tax vide its Certificate No. 3538 dated 11 December, 1994 has
issued the |
|
| necessary
Exemption under the said clause. |
|
|
|
|
|
| The
summarised results of Unit No. 11 are as follows: |
|
|
|
|
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
|
| SALES - Net |
|
|
36,817,308 |
41,336,167 |
|
| COST
OF SALES |
|
|
27,151,543 |
30,405,551 |
|
|
|
|
------------------ |
------------------ |
|
| GROSS
PROFIT |
|
|
9,665,765 |
10,930,616 |
|
| ADMINISTRATIVE
AND SELLING EXPENSES |
|
675,155 |
873,882 |
|
|
|
|
------------------ |
------------------ |
|
| OPERATING
PROFIT |
|
|
8,990,610 |
10,056,734 |
|
|
|
| OTHER
CHARGES |
|
| Financial - Net |
|
|
445,937 |
371,939 |
|
| Donation
to Waqf-e-Kuli Khan Trust |
|
213,617 |
242,118 |
|
| Workers'
(Profit) Participation Fund |
|
427,234 |
484,235 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,086,788 |
1,098,292 |
|
|
|
|
------------------ |
------------------ |
|
| PROFIT
FOR THE YEAR |
|
|
7,903,822 |
8,958,442 |
|
|
========== |
========== |
|
|
| The
results shown above have been grouped with their respective beads of profit
and loss account. |
|
|
| 29.
FINANCIAL ASSETS AND LIABILITIES |
|
|
|
|
|
| 29.1
The financial assets of the Company aggregated Rs. 79.934 million of which |
|
| Rs.
79.868 million are subject to credit risk. The effective interest/mark-up
rate of financial |
|
| assets
range from 15.33% to 16.79% per annum. |
|
|
|
|
|
| 29.2
The financial liabilities of the Company aggregated Rs. 64.270 million. The
financial |
|
| liabilities
are based on mark-up/interest except for liabilities aggregating Rs. 46.001
million. |
|
| The
effective interest/mark-up rate of financial liabilities range from 15.33% to
17.89% per |
|
| annum. |
|
|
|
|
|
|
| 29.3
The carrying amounts of the financial assets and financial liabilities
approximate their fair |
|
| values
except for long term investments which are stated at cost. |
|
|
| 30.
EARNINGS PER SHARE (EPS) |
|
| Profit
after taxation attributable |
|
| to
ordinary shareholders |
|
36,601,257 |
28,591,034 |
|
|
========== |
========== |
|
|
|
|
|
|
No. of
shares |
|
|
| Number
of ordinary shares issued and Subscribed |
|
| at
the end of the year |
|
|
3,900,000 |
3,900,000 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
|
Rupees |
|
|
|
|
| EPS |
|
|
9.38 |
7.33 |
|
|
|
|
========== |
========== |
|
|
|
|
| 31.
REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES |
|
|
|
|
Chief
Executive |
Working
Directors |
Executives |
|
| PARTICULARS |
|
|
|
|
2000 |
1999 |
2000 |
1999 |
2000 |
1999 |
|
|
|
|
| Remuneration
(in- |
|
| cluding bonus) |
|
962,716 |
940,083 |
844,542 |
723,221 |
3,200,625 |
2,863,145 |
|
| Provident Fund |
|
|
| contribution |
|
80,193 |
54,485 |
0 |
0 |
260,641 |
225,491 |
|
| House rent |
|
0 |
0 |
175,500 |
175,500 |
139,950 |
108,900 |
|
| Insurance |
|
1,660 |
1,660 |
2,355 |
0 |
29,449 |
5,576 |
|
| Reimbursement |
|
|
| of
medical and others |
|
| expenses |
|
37,745 |
70,584 |
0 |
0 |
255,694 |
190,809 |
|
| Utilities |
|
0 |
0 |
39,000 |
54,133 |
38,598 |
29,740 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Rupees |
|
1,082,314 |
1,066,812 |
1,061,397 |
952,854 |
3,924,957 |
3,423,661 |
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
| Number
of persons |
1 |
1 |
2 |
2 |
10 |
9 |
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
|
| 31.1
The Chief Executive has also been provided with free use of the Company's
car, Company |
|
| maintained
house and telephone at his residence. Executives are provided with houses at |
|
| Company's
Colony. |
|
|
|
|
|
|
| 31.2
Remuneration of Chief Executive and directors does not include any amount
provided for or |
|
| paid
by the Associated Undertakings. Payments to the working Directors represent
the |
|
| Company's
share of remuneration transferred by the Associated Undertakings. |
|
|
|
|
| 31.3
In addition to above, meeting fee of Rs. 13500 (1999: Rs. 5,500) was also
paid to five (1999: |
|
| seven)
non-working directors. |
|
|
|
|
|
|
| 32.
NUMBER OF EMPLOYEES |
|
| Number
of employees at year-end was 554 (1999: 548). |
|
|
|
|
| 33.
CAPACITY AND PRODUCTION |
|
2000 |
1999 |
|
|
|
|
| Yarn |
|
| Number
of spindles installed |
|
| (1,858
in Unit No. 1 and 480 in Unit No.11) |
|
2,338 |
2,338 |
|
| Number
of spindles/shifts worked |
|
1,819,200 |
1,692,673 |
|
| Installed
capacity at 5 Nm count (Kgs.) |
|
3,732,479 |
3,732,479 |
|
| Actual
production converted into 5 Nm count (Kgs.) |
1,295,046 |
1,150,707 |
|
| Number
of shifts worked |
|
|
| {(Unit
No. II worked for 912 |
|
|
| (1999:912)
Shifts)} |
|
1,793 |
1,793 |
|
|
| Cloth |
|
| Number
of looms installed {36 (1999: 40) in |
|
| Unit
No. 1 and 8 (1999: 8) in unit No. II} |
|
44 |
48 |
|
|
|
|
| Number
of looms/shifts worked |
|
34,651 |
32,391 |
|
|
| Installed
capacity of 44 (1999: 40) |
|
| operational
looms at 30 picks (Meters) |
|
3,365,455 |
3,365,455 |
|
|
|
|
| Actual
production converted into 30 picks (Meters) |
|
1,330,429 |
1,224,019 |
|
|
| Number
of shifts worked |
|
| {Unit
No. II worked for 1065 |
|
| (1999:
1,020) Shifts} |
|
|
2,112 |
2,044 |
|
|
|
|
| It
is difficult to describe precisely the production capacity in
spinning/weaving mills since it fluctuates |
|
| widely
depending on various factors such as count of yarn spun, spindles speed,
twist, the width and |
|
| construction
of cloth woven, etc. It also varies according to the pattern of production
adopted in a |
|
| particular year. |
|
|
| 34. FIGURES |
|
|
|
| - in the
accounts are rounded off-to the nearest rupee: |
|
| -
of the previous year are re-arranged wherever necessary for the purposes of
comparison. |
|
|
|
MUSHTAQ AHMAD KHAN, FCA |
|
|
MUHAMMAD AZHAR KHAN |
|
|
Director |
|
|
Chief Executive |
|
|
|
| PATTERN
OF SHAREHOLDING |
|
| AS
ON 30th SEPTEMBER 2000 |
|
| Form - 34 |
|
| The
Complies Ordinance, 1984 |
|
| (Section 236) |
|
|
| NUMBER OF |
SHAREHOLDING |
TOTAL |
|
|
| SHARE |
FROM |
TO |
SHARES HELD |
|
|
| HOLDERS |
|
|
|
| 197 |
1 |
100 |
9,115 |
|
| 208 |
101 |
500 |
57,347 |
|
| 207 |
501 |
1,000 |
161,084 |
|
| 121 |
1,001 |
5,000 |
299,592 |
|
| 35 |
5,001 |
10,000 |
262,781 |
|
| 8 |
10,001 |
15,000 |
105,801 |
|
| 7 |
15,001 |
20,000 |
122,253 |
|
| 4 |
20,001 |
25,000 |
90,681 |
|
| 5 |
25,001 |
30,000 |
144,562 |
|
| 3 |
30,001 |
35,000 |
99,072 |
|
| 3 |
35,001 |
40,000 |
112,964 |
|
| 2 |
40,001 |
45,000 |
83,534 |
|
| 4 |
45,001 |
50,000 |
195,717 |
|
| 1 |
50,001 |
55,000 |
50,593 |
|
| 1 |
60,000 |
65,000 |
60,373 |
|
| 1 |
300,001 |
305,000 |
300,155 |
|
| 1 |
315,001 |
320,000 |
319,465 |
|
| 1 |
405,001 |
410,000 |
406,078 |
|
| 1 |
1,015,001 |
1,020,000 |
1,018,833 |
|
| ------------------ |
|
------------------ |
|
| 810 |
|
TOTAL: |
3,900,000 |
|
| ========== |
|
|
========== |
|
|
| Categories of |
|
Number |
Shares held |
Percentage |
|
| Shareholders |
|
|
| Individuals |
|
794 |
1,813,477 |
46.4993 |
|
| Investment
Companies |
|
1 |
7,420 |
0.1900 |
|
| Insurance
Companies |
|
2 |
323,133 |
8.2853 |
|
| Joint
Stock Companies |
|
10 |
1,348,000 |
34.564 |
|
| Financial
Institutions |
|
2 |
406,878 |
10.4334 |
|
| Trust |
|
1 |
1,092 |
0.0280 |
|
|
|
------------------ |
------------------ |
------------------ |
|
| TOTAL |
|
810 |
3,900,000 |
100.0000 |
|
|
========== |
========== |
========== |
|
|
|
|
|
|
|
|
|
|
|
|
|
