| Colony Textile Mills Limited |
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| Annual
Report 2000 |
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| NOTICE
OF ANNUAL GENERAL MEETING |
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| NOTICE
is hereby given that 54th Annual General Meeting, of the members of the |
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| Company
will be held on Friday, March 30, 2001, at 10:00 a.m. at the Registered |
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| Office
at M. Ismail Aiwan-I-Science Building, Shahrah-e-Jalaluddin Roomi, |
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| Lahore
to transact the following business: |
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| 1.
To confirm the Minutes of the 53rd Annual General Meeting. |
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| 2.
To receive consider and adopt the Directors Report and Audited Accounts for |
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| the
year ended September 30, 2000, together with the Auditors Report |
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| thereon
annexed. |
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| 3.
To appoint auditors for 2000-2001 and to fix their remuneration. |
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| 4.
Any other business with the permission of the Chairman. |
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for COLONY TEXTILE MILLS LIMITED |
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TARIQ I. CHISHTI |
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| Lahore |
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Company Secretary |
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| March 03,2001 |
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By the Order of the Board |
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| Notes:- |
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| The
Share Transfer Books of the Company will remain closed from March 30, 2001 to
April |
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| 05,2001
(both days inclusive). |
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| A
member entitled to attend that and vote at this meeting may appoint another
member as his |
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| proxy
to attend and vote. The form of proxy is annexed, which duly completed,
should reach at |
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| the
Registered office of the Company at least 48 hours before the time of the
meeting. |
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| Shareholders
are requested to notify the change of address, if any, immediately. |
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| BOARD
OF DIRECTORS |
MR. MUGHIS A. SHEIKH
(Chairman/Chief Executive) |
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MR. ZARRAR IBN ZAHOOR |
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MR. M. AKRAM QURESHI |
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MR. NAJEEB AHMED |
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SHEIKH NAZIR AHMED |
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|
MR. MUHAMMAD SHAKEEL |
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MRS. MAHNAZ F. SHEIKH |
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| BANKERS |
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HABIB BANK LIMITED |
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NATIONAL BANK OF PAKISTAN |
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| AUDITORS |
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HAMEED CHAUDHRI & CO. |
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|
Chartered Accountants |
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| LEGAL
ADVISER |
ANIQUA MUGHIS SHEIKH,
Advocate |
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| REGISTERED
OFFICE |
M. Ismail Aiwan-i-Science |
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|
Shahrah-i-Jalaluddin
Roomi |
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(Ferozepur Road) |
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Lahoer-54600 |
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| MILLS |
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Islamabad (Multan) |
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Fax: 539509 |
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Phones:539021-3 |
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| DIRECTORS
REPORT TO THE MEMBERS OF |
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| COLONY
TEXTILE MILLS LIMITED |
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| The
Directors of your Company present their 54th audited accounts along with the |
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| auditors
report for the year ended September, 30, 2000 which are reflective of the
state |
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| of
affairs of your Company |
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| We
bow our head before Almighty Allah and are pleased to inform that the |
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| improvement
in Company's (operation/financial) results which commenced in the |
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| preceding
year, gained big momentum in the year under review. The Company has |
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| been
able to achieve all-round success and achieve impressive results.
Alhamdulillah |
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| your
Company has succeeded in lowering the brought forward losses from Rs. 159.116 |
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| million
to Rs. 11.384 million and we are confident to recoup the balance amount, by
far, |
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| in
the next financial year. |
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| The
company has raised further fund, through right issue of Rs. 26.789 (M), thus |
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| making
total fresh equity injection of Rs. 44.954 (M) in two consecutive years and
the |
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| same
has been utilized towards capital investment. |
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| In
view of yours directors commitment to complete Balancing, Modernization and |
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| Replacement
of the old and obsolete machinery of your Mills, the Company has spent |
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| all
internally generated funds along with the fresh equity towards implementation
of the |
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| phased-out
BMR programme. During the year under review new spindles have been |
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| added
along with modernization of the back process and addition of state of the art
Auto |
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| Cone
Winders. The results of the above sincere efforts have become visible and the |
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| company,
which had been suffering losses since 1992, has managed to turn around by |
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| reverting
back to the profitability status. Still a lot of work needs to be undertaken
and it |
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| may
take a few years to fully accomplish the required objective. However if
company |
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| succeeded
in arranging funds from any Banks/DfI's, the process may be accelerated. |
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| The
Operation of the absolute and old unviable looms remained suspended during
the year. |
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| The
over all improvement in the textile sector which has been witnessed during
1999- |
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| 2000
can largely be attributed to lower domestic/international cotton prices,
reduction in |
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| mark-up
rates by Banks on their finances and supportive finished goods prices in the |
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| local
and export market. With the enhanced capacity, improved back process and |
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| winding
machines and further on going efforts for modernization, we are very hopeful
for |
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| the
better future and expect good results in the coming year. |
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| Since
the brought forward losses have not been totally eliminated, so your
Directors, for |
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| the
sake of sustainable prosperous future, have taken prudent decision and have |
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| utilized
all available funds towards on going BMR programme. Therefore they have |
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| recommended
not to pay any dividend. We are very positive that next year Inshallah , |
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| we
will be able to share Company's earning with our shareholders. |
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| The
net sales amounted to Rs. 683,295,299 deducting there from the cost of sales |
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| amounting
to Rs.498,760,841 there has been a gross profit of Rs. 184,534,458. After |
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| subtraction
of administrative and selling expenses of Rs. 11,499,084 from gross profit, |
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| the
operating profit comes Rs. 173,035,374 By adding other income of Rs.
4,847,542 |
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| the
profit comes to Rs. 177,882,916. However, by deducting the other charges |
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| amounting
to Rs. 38,692,864 (financial Rs, 28,933,346 miscellaneous Rs. 2,498,510 |
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| and
Workers' Profit Participation Fund Rs. 7,261,008) , the profit is reduced to
Rs. |
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| 139,190,052.
By adding unusual items Rs. 12,155,000 the profit before taxation comes |
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| to
Rs. 151,345,052. By providing minimum tax u/s 80-D for current year Rs.
3,613,600 |
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| the
profit after tax worked out as Rs. 147,731,452 and adjusting the same against
Rs. |
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| 159,115,906
being accumulated loss brought forward, the total accumulated loss of Rs. |
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| 11,384,454
has been carried to the balance sheet. |
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| Your
company is continuing with the practice to discharge, on payment basis, its
liability |
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| on
account of gratuity payable to such employees who are not members of the |
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| Provident
Fund Trust and are entitled to the gratuity, such payments are accounted for |
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| as
and when made and the liability accrued till the year end has, thus, not been |
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| provided
in these accounts. The unjustified demand raised by WAPDA vide their |
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| detection
bill has been stayed by Honorable Supreme Court of Pakistan for which we |
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| are
confident to be decided favorably. we have decided to contest the demand
raised |
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| by
the sales tax department in the court of law as their contention is against
the law and |
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| even
the Lahore High Court has already declared the said provision as ULTRA |
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| VIRUS.
We believe no further amount is payable, therefor no provision has been made. |
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| The
litigation cases are still pending in the courts of law and no provision for
the |
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| doubtful
debts and advances has been made. Doubtful debts and advances amounting |
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| Rs.4.157
million mostly comprised the amount receivable from Ex-Associates |
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| companies
and Ex-employees for which legal cases have already registered and same |
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| are
pending in courts of law for final adjudication. |
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| The
tenure of office of your Company's auditors, Hameed Chaudhri & Co.
Chartered |
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| Accountants,
would be expiring on the forth coming annual general meeting. They being |
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| eligible,
are recommended to be appointed as auditors of the company for the next term |
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| till
the next annual general meeting, covering audit of accounts for the year
ending on |
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| September, 30 2001. |
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| Your
Directors appreciate the service rendered by the Company's auditors' bankers |
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| staff
and workers. The information about the pattern of holding of the shares in
the |
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| prescribed
Form 34 as at September 30, 2000, is annexed. |
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On behalf of the Board |
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| Lahore |
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|
Mughis A. Sheikh |
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| March 2,2001 |
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Chairman |
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| AUDITORS'
REPORT TO THE MEMBERS OF |
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| COLONY
TEXTILE MILLS LIMITED |
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| We
have audited the annexed balance sheet of COLONY TEXTILE
MILLS LIMITED as at 30 SEPTEMBER, 2000 |
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| and
the, related profit and loss account, cash flow statement and statement of
changes in equity together |
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| with
the notes forming part thereof, for the year then ended and we state that we
have obtained all the |
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| information
and explanations which, to the best of our knowledge and belief, were
necessary for the |
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| purposes
of our audit. |
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| It
is the responsibility of the company's management to establish and maintain a
system of internal control, and |
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| prepare
and present the above said statements in conformity with the approved
accounting standards and the |
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| requirements
of the Companies Ordinance, 1984. Our responsibility is to express an opinion
on these statements |
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| based
on our audit. |
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| We
conducted our audit in accordance with the auditing standards as applicable
in Pakistan. These standards require |
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| that
we plan and perform the audit to obtain reasonable assurance about whether
the above said statements are free |
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| of
any material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and |
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| disclosures
in the above said statements. An audit also includes assessing the accounting
policies and significant |
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| estimates
made by management, as well as, evaluating the overall presentation of the
above said statements. We |
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| believe
that our audit provides a reasonable basis for our opinion and, after due
verification, we report that: |
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| (a)
In our opinion, proper books of account have been kept by the company as
required by the Companies |
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| Ordinance, 1984; |
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| (b)
in our opinion; |
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| (i)
the balance sheet and profit and loss account together with the notes thereon
have been drawn up in |
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| conformity
with the Companies Ordinance, 1984, and are in agreement with the books of
account and are |
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| further
in accordance with accounting policies consistently applied; |
|
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| (ii)
the expenditure incurred during the year was for the purpose of the company's
business; and |
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| (iii)
the business conducted, investments made and the expenditure incurred during
the year were in accordance |
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| with
the objects of tile company; |
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| (c)
In our opinion and to the best of our information and according to the
explanations given to us, the balance |
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| sheet,
profit and loss account, cash flow statement and statement of changes in
equity together with the notes |
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| forming
part thereof conform with approved accounting standards as applicable in
Pakistan, and, give the |
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| information
required by Companies Ordinance, 1984, in the manner so required and, except
for the fact that |
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| provisions
for Electricity Charges of Rs.36.078 million [note 12.1(d)], Doubtful
Advances aggregating Rs.4.157 |
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| million
(note 18) and Gratuity aggregating Rs.0,.505 million approximately (note 30)
have not been made in these |
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| accounts
and the contents of notes 12.1(a), 12.1(b), 12.1(c), 12.1(e) and 15.1, and
the extent to which these may |
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| affect
the annexed accounts, respectively give a true and fair view of the state of
the company's affairs as at 30 |
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| September,
2000 and of the profit, its cash flows and changes in equity for the year
then ended; and |
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| (d)
in our opinion no Zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
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| LAHORE; |
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|
HAMEED CHAUDHRI & CO., |
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| March
2, 2001 |
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|
CHARTERED ACCOUNTANTS |
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| BALANCE
SHEET AS AT 30 SEPTEMBER, 2000 |
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Note |
2000 |
1999 |
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|
Rupees |
Rupees |
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| SHARE
CAPITAL AND RESERVE |
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| Authorised: |
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| 11,100,000
ordinary shares of |
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| Rs. 10 each |
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|
111,000,000 |
11,000,000 |
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|
========== |
========== |
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| Issued,
subscribed and paid-up |
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3 |
100,000,000 |
73,210,720 |
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| Capital reserve |
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4 |
7,738,584 |
7,738,584 |
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| Accumulated
loss |
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|
(11,384,454) |
(159,115,906) |
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|
|
------------------ |
------------------ |
|
|
|
|
96,354,130 |
(78,166,602) |
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| SURPLUS ON |
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|
|
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|
| REVALUATION
OF |
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|
|
|
|
| FIXED ASSETS |
|
5 |
187,120,406 |
187,120,406 |
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|
| LONG
TERM LOANS, DEBENTURES |
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| AND
DEFERRED LIABILITIES |
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|
| Long
term loans and Debentures |
|
6 |
376,266,511 |
41,322,250 |
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| Frozen debts |
|
|
7 |
61,337,321 |
81,492,321 |
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|
------------------ |
------------------ |
|
|
|
|
98,963,972 |
122,814,571 |
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|
|
| CURRENT
LIABILITIES |
|
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|
| Current
portion of long Term liabilities |
8 |
12,076,822 |
3,829,467 |
|
| Short
term finances |
|
9 |
97,018,675 |
151,070,129 |
|
| Creditors,
accruals and other payables |
10 |
69,711,854 |
93,609,535 |
|
| Provision
for taxation |
|
11 |
9,685,009 |
7,795,133 |
|
| Preference
shares Refundable |
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|
11,305 |
11,305 |
|
| Unclaimed
dividend |
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|
628,808 |
628,808 |
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|
------------------ |
------------------ |
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|
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|
189,132,473 |
256,944,377 |
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| CONTINGENCIES
AND COMMITMENTS |
12 |
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|
------------------ |
------------------ |
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|
571,570,981 |
488,712,752 |
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|
========== |
========== |
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| FIXED
CAPITAL EXPENDITURE |
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| Operating
fixed assets |
|
13 |
368,535,779 |
259,867,776 |
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| Capital
work-in Progress |
|
14 |
10,583,641 |
2,204,046 |
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|
------------------ |
------------------ |
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|
379,119,420 |
262,071,822 |
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| LONG
TERM INVESTMENTS |
|
15 |
612,103 |
770,742 |
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| LONG
TERM DEPOSITS |
|
563,122 |
563,122 |
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|
| CURRENT
ASSETS |
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|
| Stores,
spares and Tools |
|
16 |
18,457,659 |
16,939,634 |
|
| Stock-in-trade |
|
17 |
121,321,387 |
168,721,515 |
|
| Trade
debtors- unsecured |
|
|
3,713,245 |
6,506,899 |
|
| Advances,
deposits and |
|
|
|
| Other
receivables |
|
18 |
45,062,011 |
32,706,286 |
|
| Cash
and bank Balances |
|
19 |
2,722,034 |
432,732 |
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|
|
|
------------------ |
------------------ |
|
|
|
|
191,276,336 |
225,307,066 |
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|
------------------ |
------------------ |
|
|
|
571,570,981 |
488,712,752 |
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|
========== |
========== |
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| The
annexed notes form an integral part of these accounts |
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|
Mughis A. Sheikh |
|
Zarrar Ibn Zahoor |
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|
Chief Executive |
|
Director |
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| PROFIT
AND LOSS ACCOUNT |
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| FOR
THE YEAR ENDED 30 SEPTEMBER, 2000 |
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|
2000 |
1999 |
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|
|
Note |
Rupees |
Rupees |
|
|
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| Sales-Net |
|
20 |
683,295,299 |
395,374,406 |
|
| Cost Of sales |
|
21 |
498,760,841 |
355,163,692 |
|
|
|
|
------------------ |
------------------ |
|
| Gross Profit |
|
|
184,534,458 |
40,210,714 |
|
| ADMINISTRATIVE
AND SELLING EXPENSES |
22 |
11,499,084 |
8,048,161 |
|
|
|
|
------------------ |
------------------ |
|
| OPERATING
PROFIT |
|
|
173,035,374 |
32,162,553 |
|
| OTHER
INCOME |
|
23 |
4,847,542 |
3,036,148 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
177,882,916 |
35,198,701 |
|
|
|
|
|
| OTHER
CHARGES |
|
|
|
| Financial |
|
24 |
28,933,346 |
302,818,651 |
|
| Miscellaneous |
|
25 |
2,498,510 |
508,715 |
|
| Workers'
(profit) participation fund |
|
7,261,008 |
220,406 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
38,692,864 |
31,010,986 |
|
|
|
|
|
|
|
| PROFIT
BEFORE EXTRAORDINARY ITEM |
|
139,190,052 |
4,187,715 |
|
| EXTRAORDINARY
ITEM |
|
7.2 |
12,155,000 |
0 |
|
|
|
|
------------------ |
------------------ |
|
| PROFIT
AFTER EXTRAORDINARY ITEM |
|
151,345,052 |
4,187,715 |
|
|
|
|
|
|
| PROVISION
FOR TAXATION |
|
11 |
|
| -Current |
|
|
3,612,746 |
1,985,380 |
|
| -Prior years |
|
|
|
854 |
64,399 |
|
|
|
|
------------------ |
------------------ |
|
|
|
3,613,600 |
2,049,779 |
|
|
|
------------------ |
------------------ |
|
| PROFIT
AFTER TAXATION |
|
147,731,452 |
2,137,936 |
|
|
| ACCUMULATED
LOSS-Brought forward |
|
(159,115,906) |
(161,253,842) |
|
|
|
|
------------------ |
------------------ |
|
| ACCUMULATED
LOSS-Carried to Balance Sheet |
|
(11,384,454) |
(159,115,906) |
|
|
|
|
========== |
========== |
|
| EARNINGS
PER SHARE |
|
26 |
|
|
| BASIC |
|
|
22.85 |
0.44 |
|
| DILUTED |
|
|
19.07 |
0.43 |
|
|
========== |
========== |
|
|
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
Mughis A. Sheikh |
|
Zarrar Ibn Zahoor |
|
|
Chief Executive |
|
Director |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED 30 SEPTEMBER, 2000 |
|
|
|
|
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
|
| NET
CASH INFLOW/(OUTFLOW) FROM OPERATING |
|
| ACTIVITIES
(Note 'A') |
|
|
194,771,892 |
(23,381,190) |
|
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
| Long
term loans installments repaid |
|
(3,448,244) |
(6,115,516) |
|
| Right
shares issued |
|
|
26,789,280 |
18,165,060 |
|
| Shod
term finances - net |
|
|
(54,051,454) |
60,461,382 |
|
| Financial
charges paid |
|
|
(25,588,839) |
(31,301,421) |
|
|
------------------ |
------------------ |
|
| NET
CASH (OUTFLOW) / INFLOW FROM |
|
| FINANCING
ACTIVITIES |
|
|
(56,299,257) |
41,209,505 |
|
|
|
|
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
| Fixed
capital expenditure |
|
|
(139,852,230) |
(18,796,218) |
|
| Sale
proceeds of fixed assets |
|
|
3,668,897 |
1,095,564 |
|
|
|
|
------------------ |
------------------ |
|
| NET
CASH OUTFLOW FROM INVESTING ACTIVITIES |
(136,183,333) |
(17,700,654) |
|
|
|
|
------------------ |
------------------ |
|
| NET
INCREASE IN CASH AND CASH EQUIVALENTS |
2,289,302 |
127,661 |
|
|
|
| CASH
AND CASH EQUIVALENTS |
|
| - At the beginning of the year |
|
|
432,732 |
305,071 |
|
|
|
|
| - CASH AND CASH EQUIVALENTS |
|
------------------ |
------------------ |
|
| - At the end of year. |
|
|
2,722,034 |
432,732 |
|
|
|
|
========== |
========== |
|
|
| The
annexed note 'A' forms an integral part of this Statement |
|
|
|
Mughis A. Sheikh |
|
Zarrar Ibn Zahoor |
|
|
Chief Executive |
|
Director |
|
|
|
|
| NOTE 'A' |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
|
|
2000 |
1999 |
|
|
|
|
Rupees |
Rupees |
|
|
| Profit
for the year- Before extraordinary item |
|
|
|
|
|
| and taxation |
|
|
|
139,190,052 |
4,187,715 |
|
|
|
|
|
|
|
|
|
| Adjustments
for: |
|
|
|
|
|
| Depreciation |
|
|
|
20,365,244 |
8,361,643 |
|
|
| Gain
on disposal of fixed assets |
|
|
(1,229,509) |
(847,716) |
|
|
| Financial
charges |
|
|
28,933,346 |
30,281,865 |
|
| Provision
for diminution in value of investments |
|
158,639 |
0 |
|
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| -Before
working capital changes |
|
187,417,772 |
41,983,507 |
|
|
| (Increase)/decrease
in current assets |
|
| Stores,
spares and tools |
|
(1,518,025) |
(6,953,780) |
|
| Stock-in-trade |
|
|
47,400,128 |
(101,620,626) |
|
| Trade debtors |
|
|
2,793,654 |
26,717,872 |
|
| Advances,
deposits and other receivables |
|
|
|
| Excluding
income tax |
|
(11,255,469) |
(4,104,188) |
|
| (Decrease)/Increase
in creditors, accruals and |
|
|
|
| Other
payables excluding accrued financial charges |
|
(27,242,188) |
33,336,988 |
|
|
------------------ |
------------------ |
|
|
|
|
10,178,100 |
(52,623,734) |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| -Before taxation |
|
|
197,595,872 |
(10,640,227) |
|
| Taxes paid |
|
|
(2,823,980) |
(12,780,988) |
|
|
|
------------------ |
------------------ |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
|
|
| -After taxation |
|
|
194,771,892 |
(23,421,215) |
|
| Net
decrease in long term deposits |
|
0 |
40.03 |
|
|
|
|
|
|
|
| NET
CASH INFLOW / (OUTFLOW) FROM |
|
------------------ |
------------------ |
|
| OPERATING
ACTIVITIES |
|
|
194,771,892 |
23,381,190 |
|
|
========== |
========== |
|
|
|
Mughis A. Sheikh |
|
Zarrar Ibn Zahoor |
|
|
Chief Executive |
|
Director |
|
|
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| FOR
THE YEAR ENDED 30 SEPTEMBER, 2000 |
|
|
|
Share |
Capital |
(accumulated |
Total |
|
|
Capital |
Reserve |
loss) |
|
|
|
|
|
|
|
(RUPEES) |
|
|
|
| Balance
as at 30 September, 1998 |
55,045,660 |
7,738,584 |
(161,253,842) |
(98,469,598) |
|
|
| Profit
for the year |
0 |
0 |
2,137,936 |
2,137,936 |
|
|
| Right
shares issued |
18,165,060 |
0 |
0 |
18,165,060 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
|
| Balance
as at 30 September, 1999 |
73,210,720 |
7,738,584 |
(159,115,906) |
(78,166,602) |
|
|
| Profit
for the year |
0 |
0 |
147,731,452 |
