| Chenab Fibres Limited |
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| Annual
Report 2000 |
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|
|
| Contents |
|
|
| Company
Information |
|
| Notice
of Annual General Meeting |
|
| Directors'
Report to the Shareholders |
|
| Auditors'
Report to the Members |
|
| Pattern
of Holdings of the Shares |
|
| Balance Sheet |
|
| Profit
& Loss Account |
|
| Statement
of Changes in Equity |
|
| Cash
Flow Statement |
|
| Notes
to the Accounts |
|
|
|
| Company
Information |
|
|
| Chairman |
|
Haji Mohammad Saleem |
|
|
| Chief Executive |
|
Mian Mohammad Latif |
|
|
| Directors |
|
Mian Mohammad Javaid
Iqbal |
|
|
Mr. Mohammad Naeem |
|
|
Mr. Mohammad Faisal Latif |
|
|
Mr. Mohammad Farhan Latif |
|
|
Mst. Sughran Begum |
|
|
Mst. Shahnaz Latif |
|
|
Mr. Mohammad Naeem Khalid |
|
|
(Nominee ICP) |
|
|
| Bankers/Financial
Institutions |
Askari Commercial Bank
Ltd. |
|
|
Habib Bank Limited |
|
|
United Bank Limited |
|
|
| Company
Secretary |
Mr. Mohammad Arshad |
|
|
| Auditors |
|
M. Yousuf Adil Saleem
& Co., |
|
|
Chartered Accountants, |
|
|
Regency Arcade,
Faisalabad. |
|
|
| Legal Advisor |
|
Ch. Shahid Mehmood
(Advocate) |
|
|
| Registered
Office |
Nishtabad, Faisalabad |
|
|
| Mills |
|
3rd Kilometer, Shorkot
Road, |
|
|
Toba Tek Singh |
|
|
| Notice
of Annual General Meeting |
|
|
| Notice
is hereby given that the 11th Annual General Meeting of the shareholders of |
|
| CHENAB
FIBRES LIMITED will be held at 11.00 a.m. on Friday, the
30th March, 2001 at the Registered |
|
| Office
of the Company at Nishatabad, Faisalabad to transact the following business:- |
|
|
| 1.
To confirm the minutes of the last meeting of the shareholders. |
|
|
| 2.
To receive, consider and adopt the Audited Accounts of the Company for the
year ended |
|
| September
30, 2000 together with Directors and Auditors Reports thereon. |
|
|
| 3.
To approve cash dividend @ 15% (Rs. 1.50 per share) on the ordinary share
capital of the |
|
| company
as recommended by the Board of Directors, the sponsors directors, their
relatives, |
|
| friends
and associated under takings of the Company have declared to forego their
right of |
|
| said dividend. |
|
|
| 4.
To appoint auditors and to fix their remuneration for the year 2000-2001. The
retiring Auditors, |
|
| M/s.
M. Yousuf Adil Saleem & Company, Chartered Accountants, being eligible,
offer themselves |
|
| for
re-appointment. |
|
|
| 5.
Any other matter with the permission of the Chair. |
|
|
|
|
For and on behalf of the Board |
|
|
|
|
| Faisalabad |
|
(MOHAMMAD ARSHAD) |
|
| March 3rd, 2001 |
|
COMPANY SECRETARY |
|
|
| NOTES: |
|
|
| I.
The Share Transfer Books of the Company will remain closed from 22nd March,
2001 |
|
| (Thursday)
to 30th March 2001 (Friday) both days inclusive to determine the names of |
|
| members
entitled to receive dividend and to attend the meeting. Transfers received in
order |
|
| at
the registered office at the close of business hours i.e., on March 21, 2001
will be treated |
|
| in time. |
|
|
| II.
A member entitled to attend and vote at the meeting is entitled to appoint
another member |
|
| a
proxy to attend instead of him/her and such proxy will have the right to
attend, speak and |
|
| vote
in place of the member. |
|
|
| III.
The Forms of proxy must be deposited at the Company's Registered Office not
later than |
|
| 48
hours before the time of holding the meeting and in default, form of proxy
will not be |
|
| treated as valid. |
|
|
| IV.
The shareholders who are not liable to pay Zakat at source are requested to
send their |
|
| declaration
and affidavit for claiming exemption from Zakat under Zakat Ushr Ordinance
1980. |
|
|
| V.
The shareholders are requested to notify immediately the change if any in
their addresses. |
|
|
|
| Directors'
Report to the Shareholders |
|
|
| In
the name of Almighty Allah, we on behalf of the Board take the opportunity |
|
| to
place before you the 11th Annual Report of your Company for the year |
|
| ended
September 30, 2000. |
|
|
| FINANCIAL
RESULTS |
|
| There
has been a profit of Rs. 55.140 million (before taxation) for the year |
|
| under
report which is mainly due to purchase of cotton at appropriate time |
|
| when
prices were economical. The Directors recommended its appropriation |
|
| as under:- |
|
|
|
Rupees |
|
|
| Profit/(Loss)
for the year |
|
55,140,100 |
|
| (Less):
Taxation (Net) |
|
(7,300,000) |
|
|
------------------ |
|
| Profit/(loss)
after Taxation |
|
47,840,100 |
|
|
|
|
| Appropriation |
|
|
|
| Proposed
dividend @ 15% |
|
2,568,421 |
|
|
------------------ |
|
| Net
profit after appropriation |
|
45,271,679 |
|
| Accumulated
(Loss) brought forward |
|
(11,643,163) |
|
|
------------------ |
|
| Un-appropriated
profit/(loss) carried to balance sheet |
33,628,516 |
|
|
========== |
|
|
| In
order to strengthen the liquidity position of the Company the Sponsor
Directors, their relatives, |
|
| friends
and associated undertakings have considered it appropriate to forego their
right of dividend |
|
| being
recommended for the year under report showing their gesture in the larger
interest |
|
| of the Company. |
|
|
| RAW
MATERIAL PURCHASE PRICE |
|
| It
is a general market trend that cotton prices have always been fluctuating
from the beginning of |
|
| cotton
season upto its end in view of demand, supply and production of crop not only
in the country |
|
| but
internationally as well. |
|
|
| Exceptionally,
for the year under report although the cotton prices in the beginning of
cotton season |
|
| were
around Rs. 1925/- per maund yet there had been a continuous downward trend in
prices which |
|
| drastically
came down around Rs. 1250/- per maund during peak season. |
|
|
| The
annual requirements of cotton so purchased resulted in average purchase price
of Rs. 1550/- per |
|
| maund
as compared with the average purchase price of Rs. 2250/- per maund during
preceding year. |
|
|
| PRODUCTION |
|
| With
the installation of Comber Machines having come into production from April
23, 2000 the |
|
| Company
has also been able to produce combed yarn attracting high sales price is
against |
|
| carded yarn. |
|
|
| For
the year under report, in order to meet the demand of the buyers, the Company
produced cotton |
|
| carded
yarn at 4,870,757 Kgs at an average count of 19.89 and cotton combed yarn at
207930 Kgs at |
|
| an
average count of 38.93 aggregating to 5078687 Kgs of yarn production with a
combined average |
|
| count
of 20.67 as against 5596290 Kgs of carded production only at an average count
of 19.94 during |
|
| the last year. |
|
|
| Similarly,
the production of yarn converted into 20/s count came at 5557744 Kgs for the
year under |
|
| report
as against 5728683 Kgs during preceding year. |
|
|
| SALES |
|
| Due
to lower average purchase price of raw material the prices of yarn also
remained on the lower |
|
| side
as compared to previous year and as a result thereof the sales revenue has
been earned at |
|
| Rs.
478.600 million for the year under report as against Rs. 584.530 million of
the preceding year. |
|
|
| FUTURE
PROSPECTS |
|
| The
prospects of Textile Spinning Industry mainly depends upon the availability
of qualify cotton on |
|
| economical
prices apart from certain other factors. |
|
|
| Unfortunately,
this year with the commencement of cotton season the information received
from time |
|
| to
time about demand/supply and production of cotton in the country as well as
abroad were not |
|
| encouraging
and prices remained high taking start from Rs. 2200/- per maund and increased
to Rs. |
|
| 2700/-
per maund during peak cotton season. Consequently, the financial results for
this year may not |
|
| be
compared with the results of the year under report. |
|
|
| BMR
OF THE PROJECT |
|
| Taking
advantage of better liquidity position of the Company this year the Company
has been able to |
|
| make
an investment of Rs. 30.814 towards major renovation and expansion both in
building/plant & |
|
| machinery,
installation of six imported comber machines and two LAP former machines. The
investment |
|
| in
comber machines would help in getting better sales rates of Company's
products whereas major |
|
| renovation
of plant/machinery would result in improving qualify of yarn in future. |
|
|
| BOARD
OF DIRECTORS |
|
| There
had been no change in the of Board of Directors since the last Annual General
Meeting. |
|
|
| PATTERN
OF SHARE HOLDING |
|
| The
pattern of holding of shares is annexed. |
|
|
| ACKNOWLEDGMENT |
|
| The
Directors thank the bankers of the Company for extending their financial
assistance during the |
|
| year.
The Directors place on record appreciation for hard work and dedicated
services rendered by |
|
| the
employees of the Company during this period. |
|
|
|
|
For and on behalf of |
|
|
|
BOARD OF DIRECTORS |
|
|
|
|
| FAISALABAD |
|
(MOHAMMAD NAEEM) |
|
(MOHAMMAD FAISAL LATIF) |
|
| March 3rd, 2001 |
|
Director |
|
Director |
|
|
|
| Note:
The Chief Executive being out of the country the instant report has been
presented by the |
|
| Directors
under the provisions of Section 241 (2) of the Companies Ordinance 1984. |
|
|
|
| Auditors'
Report to the Members |
|
|
| We
have audited the annexed balance sheet of Chenab Fibres Limited as at
September 30, 2000 and |
|
| the
related profit and loss account, statement of changes in equity and cash flow
statement, together |
|
| with
the notes forming part thereof, for the year then ended and we state that we
have obtained all |
|
| the
information and explanations which, to the best of our knowledge and belief,
were necessary for |
|
| the
purposes of our audit. |
|
|
| It
is the responsibility of the company's management to establish and maintain a
system of internal |
|
| control,
and prepare and present the above said statements in conformity with the
approved accounting |
|
| standards
and the requirements of the Companies Ordinance, 1984. Our responsibility is
to express an |
|
| opinion
on these statements based on our audit. |
|
|
| We
conducted our audit in accordance with the auditing standards as applicable
in Pakistan. These |
|
| standards
require that we plan and perform the audit to obtain reasonable assurance
about whether |
|
| the
above said statements are free of any material misstatement. An audit
includes examining, on a |
|
| test
basis, evidence supporting the amounts and disclosures in the above said
statements. An audit |
|
| also
includes assessing the accounting policies and significant estimates made by
management, as |
|
| well
as, evaluating the overall presentation of the above said statements. We
believe that our audit |
|
| provides
a reasonable basis for our opinion and, after due verification, we report
that: |
|
|
| (a)
In our opinion, proper books of account have been kept by the company as
required |
|
| by
the Companies Ordinance, 1984; |
|
|
| (b)
In our opinion: |
|
|
| (i)
the balance sheet and profit and loss account together with the notes thereon |
|
| have
been drawn up in conformity with the Companies Ordinance, 1984, |
|
| and
are in agreement with the books of account and are further in accordance |
|
| with
accounting policies consistently applied; |
|
|
| (ii)
the expenditure incurred during the year was for the purpose of the Company's |
|
| business; and |
|
|
| (iii)
the business conducted, investments made and the expenditure incurred |
|
| during
the year were in accordance with the objects of the Company; |
|
|
| (c)
In our opinion and to the best of our information and according to the
explanations |
|
| given
to us, the balance sheet, profit and loss account, statement of changes in
equity |
|
| and
cash flow statement, together with the notes forming part thereof, confirm
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, changes in equity and its cash flows for the year then ended;
and |
|
|
| (d)
in our opinion, Zakat deductible at source under the Zakat and Ushr
Ordinance, |
|
| 980,
was deducted by the Company and deposited in the Central Zakat Fund |
|
| established
under Section 7 of that Ordinance. |
|
|
| FAISALABAD |
|
(M. YOUSUF ADIL SALEEM & CO.,) |
|
| DATE:
March 3rd, 2001 |
|
Chartered Accountants |
|
|
|
| Form '34' |
|
| Pattern
of Holdings of the Shares |
|
|
| PATTERN
OF HOLDINGS OF THE SHARES |
|
| HELD
BY THE SHAREHOLDERS AS AT SEPTEMBER 30, 2000 |
|
|
| Share |
Shareholding |
Total |
|
| Holders |
From |
To |
Shares |
|
|
| 859 |
1 |
500 |
383,100 |
|
| 39 |
501 |
1000 |
37,200 |
|
| 51 |
1001 |
5000 |
119,400 |
|
| 10 |
5001 |
10000 |
91,100 |
|
| 5 |
10001 |
15000 |
64,000 |
|
| 1 |
15001 |
20000 |
18,000 |
|
| 1 |
20001 |
25000 |
22,100 |
|
| 1 |
25001 |
30000 |
25,400 |
|
| 1 |
95001 |
100000 |
100,000 |
|
| 1 |
125001 |
150000 |
148,500 |
|
| 1 |
200001 |
225000 |
211,300 |
|
| 1 |
250001 |
275000 |
261,000 |
|
| 2 |
275001 |
300000 |
558,800 |
|
| 1 |
350001 |
375000 |
373,600 |
|
| 1 |
375001 |
400000 |
382,500 |
|
| 1 |
425001 |
450000 |
447,600 |
|
| 1 |
625001 |
650000 |
642,300 |
|
| 1 |
650001 |
675000 |
652,100 |
|
| 1 |
850001 |
875000 |
858,500 |
|
| 1 |
1025001 |
1050000 |
1,045,000 |
|
| 1 |
1050001 |
1075000 |
1,058,500 |
|
| ------------------ |
|
------------------ |
|
| 981 |
|
7,500,000 |
|
| ========== |
|
========== |
|
|
| Note:
The Slabs not applicable, have not been shown. |
|
|
| Categories of |
|
Number |
Shares |
Percentage |
|
| Shareholders |
|
|
Held |
|
|
|
| Individuals |
|
974 |
6,179,400 |
82.39% |
|
| Investment
Companies |
|
2 |
1,034,600 |
13.79% |
|
| Private
Limited Companies |
|
3 |
4,200 |
0.06% |
|
| Modaraba
Companies |
|
1 |
500 |
0.01% |
|
| Public
Ltd. Companies |
|
1 |
281,300 |
3.75% |
|
|
------------------ |
------------------ |
------------------ |
|
| Total |
|
981 |
7,500,000 |
100.00% |
|
|
========== |
========== |
========== |
|
|
|
| Balance
Sheet as at September 30, 2000 |
|
|
| CAPITAL
& LIABILITIES |
|
Note |
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
|
| SHARE
CAPITAL |
|
|
| Authorised
capital |
|
| 10,000,000
Ordinary shares of Rs. 10/- each |
|
100,000,000 |
100,000,000 |
|
|
========== |
========== |
|
|
| Issued,
subscribed and paid up capital |
|
| 7,500,000
Ordinary shares of Rs. 10/- each |
|
75,000,000 |
75,000,000 |
|
| Unappropriated
Profit/(Accumulated loss) |
|
33,628,516 |
(11,643,163) |
|
|
------------------ |
------------------ |
|
|
108,628,516 |
63,356,837 |
|
|
| LONG
TERM LOANS |
|
3 |
131,736,540 |
154,146,943 |
|
|
| DEFERRED
LIABILITIES |
|
| Custom levies |
|
4 |
-- |
937,561 |
|
| Staff
retirement gratuity |
|
3,092,038 |
2,170,217 |
|
|
------------------ |
------------------ |
|
|
3,092,038 |
3,107,778 |
|
|
| CURRENT
LIABILITIES |
|
| Short
term borrowings |
|
5 |
17,387,164 |
20,502,063 |
|
| Current
portion of long term liabilities |
6 |
23,347,961 |
24,786,150 |
|
| Creditors,
accrued and other liabilities |
7 |
25,628,785 |
28,843,453 |
|
| Taxation |
|
|
12,849,253 |
5,549,253 |
|
| Dividend |
|
8 |
2,867,341 |
2,041,217 |
|
|
|
------------------ |
------------------ |
|
|
|
82,080,504 |
81,722,136 |
|
| CONTINGENCIES
AND COMMITMENTS |
9 |
-- |
-- |
|
|
|
------------------ |
------------------ |
|
|
|
325,537,598 |
302,333,694 |
|
|
========== |
========== |
|
|
| PROPERTY
& ASSETS |
|
|
| FIXED
CAPITAL EXPENDITURE |
|
| Operating assets |
|
10 |
231,169,848 |
210,507,491 |
|
| Capital
work in progress - Civil work |
|
-- |
2,369,076 |
|
|
|
------------------ |
------------------ |
|
|
|
231,169,848 |
212,876,567 |
|
|
|
|
|
| LONG
TERM LOANS AND ADVANCES |
11 |
334,970 |
-- |
|
|
|
|
| CURRENT
ASSETS |
|
| Stores,
spares and loose tools |
|
12 |
3,469,704 |
3,215,741 |
|
| Stock in trade |
|
13 |
29,035,406 |
31,739,781 |
|
| Trade debts |
|
14 |
35,557,405 |
30,967,886 |
|
| Advances,
deposits, prepayments |
|
|
|
| and
other receivables |
|
15 |
25,388,754 |
21,072,164 |
|
| Cash
and bank balances |
|
16 |
581,511 |
2,461,555 |
|
|
|
------------------ |
------------------ |
|
|
|
94,032,780 |
89,457,127 |
|
|
|
------------------ |
------------------ |
|
|
|
325,537,598 |
302,333,694 |
|
|
========== |
========== |
|
|
| NOTE:
the annexed Notes from 1 to 31 form an integral part of these accounts. |
|
|
|
(MOHAMMAD NAEEM) |
|
|
(MOHAMMAD FAISAL LATIF) |
|
|
Director |
|
|
Director |
|
|
|
| Profit
& Loss Account for the year ended September 30, 2000 |
|
|
|
Note |
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
|
| Sales |
|
17 |
478,599,900 |
584,530,279 |
|
| Cost
of goods sold |
|
18 |
370,684,203 |
502,265,508 |
|
|
------------------ |
------------------ |
|
| Gross profit |
|
107,915,967 |
82,264,771 |
|
|
| Operating
expenses |
|
| Administration |
|
19 |
7,818,239 |
9,822,534 |
|
| Selling |
|
20 |
767,641 |
1,834,200 |
|
|
------------------ |
------------------ |
|
|
8,585,880 |
11,656,734 |
|
|
------------------ |
------------------ |
|
| Operating profit |
|
99,329,817 |
70,608,037 |
|
| Other income |
|
21 |
14,664 |
316,377 |
|
|
------------------ |
------------------ |
|
|
99,344,481 |
70,924,414 |
|
|
| Other charges |
|
| Financial |
|
22 |
41,295,817 |
50,216,878 |
|
| Workers'
Profit Participation Fund |
|
2,908,564 |
1,035,377 |
|
|
------------------ |
------------------ |
|
|
44,204,381 |
51,252,255 |
|
|
------------------ |
------------------ |
|
| Net
profit/(loss) for the year before taxation |
|
55,140,100 |
19,672,159 |
|
|
|
|
| Taxation |
|
23 |
|
| Current |
|
|
(7,300,000) |
(2,922,000) |
|
| Prior years' |
|
|
-- |
(1,599,591) |
|
|
|
------------------ |
------------------ |
|
|
(7,300,000) |
(4,521,591) |
|
|
------------------ |
------------------ |
|
| Net
profit for the year after taxation |
|
47,840,100 |
15,150,568 |
|
|
| Appropriation |
|
| Proposed
cash dividend @ 15% (1999 @ 10%) |
