| First Dadabhoy Modaraba |
|
|
|
|
|
| Annual
Report 2000 |
|
|
| CONTENTS |
|
|
| COMPANY
INFORMATION |
|
| DIRECTORS
REPORTS |
|
| AUDITOR'S
REPORT TO THE CERTIFICATE HOLDERS |
|
| BALANCE
SHEET |
|
| PROFIT
& LOSS ACCOUNTS |
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
|
| NOTES
TO THE ACCOUNTS |
|
| PATTERN
OF CERTIFICATE HOLDINGS |
|
|
|
| MANAGEMENT
COMPANY'S INFORMATION |
|
|
| BOARD
OF DIRECTORS |
|
|
| Chief Executive |
|
| AFTAB
AHMAD KHAN |
|
|
| Directors |
|
| ABDUL
RAHIM DADABHOY |
|
|
|
| OSMAN
DADABHOY |
|
|
|
| SHAHZAD
CHAMDIA |
|
|
| Manager
Finance |
|
| MOHAMMAD
IRSHAD ANSARI |
|
|
| Corporate
Secretary |
|
| SALUDDIN
MASOOD |
|
|
| Auditors
of the Modaraba |
|
| MEHMOOD
ZUBERI AND CO. |
|
|
| Legal Advisor |
|
| SYED
RIAZ-UL-HASSAN |
|
|
|
| BANKERS: |
|
| Allied
Bank of Pakistan Limited |
|
| Indus
Bank Limited |
|
| Bank
of Punjab Limited |
|
| Platinum
Commercial Bank Ltd. |
|
|
|
| DIRECTOR'S
REPORT |
|
|
| The
Board of Directors of Dadabhoy Modaraba Management (Pvt) Limited, the |
|
| management
company of First Dadabhoy Modaraba is pleased to present the 6th |
|
| Annual
Report of the First Dadabhoy Modaraba together with the Audited Accounts |
|
| for
the year ended June 30th, 2000. |
|
|
|
|
|
1999 |
|
|
|
|
(RUPEES) |
|
|
| Profit
and loss of the year |
|
279,885 |
|
| Unappropriated
Profit/(loss) Brought forward |
|
400,849 |
|
|
|
|
------------------ |
|
|
|
680,734 |
|
|
|
========== |
|
|
| Keeping
in view the uncertain economic scenario and general Business solve down |
|
| the
performance of your Modaraba is quite encouraging. |
|
|
| We
are constantly on the look out to diversify and expand our portfolio which is
likely |
|
| to
increase our profitability for the benefit of our certificate holders. |
|
|
| The
previous Morahaba have been give to certain individuals. All the Morahaba
have |
|
| been
recovered and they have been given to credit worthy parties who had good |
|
| business
relations with us. |
|
|
| The.
present Auditors M/s. Mahmood Zuberi & Co. Chartered Accountants retired
and |
|
| offered
themselves for reappointment. The Board of Directors have decided to |
|
| reappoint
M/s. Mahmood Zuberi & Co. Chartered Accountants for the ensuing year. |
|
|
| THE
PATTERN OF CERTIFICATE HOLDERS: |
|
| The
pattern of certificate holders is annexed herewith. |
|
|
| ACKNOWLEDGMENT: |
|
| On
behalf of Modaraba, the Management would like to thank to regulatory |
|
| bodies/authorities
for the guidance and support and the concerned banks and financial |
|
| institutions
for their co-operation and to the staff for their dedicated efforts for the |
|
| benefit
of the Modaraba. |
|
|
|
|
On behalf of the Board |
|
|
|
Sd/- |
|
| Karachi: |
|
|
Aftab Ahmad Khan |
|
| Dated: |
|
|
Chief Executive |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet as at June 30, 2000 and the related
profit |
|
| and
loss account and the statement of changes in financial position (Cash Flow |
|
| Statement)
together with the Accounts for the year ended June 30th, 2000 of First |
|
| Dadabhoy
Modaraba which are (Modaraba Company's Dadabhoy Modaraba |
|
| Management
(Private Limited) representation and we state that we have obtained all |
|
| the
information and explanations which we required and after due verification
thereof, |
|
| we report that: |
|
|
| a.
In our opinion, proper books of account has been kept by the Modaraba Company |
|
| in
respect of First Dadabhoy Modaraba is required by the Modaraba Companies |
|
| and
Modarabas (Flotation and Control) ordinance, 1980 and Modaraba Companies |
|
| and
Modaraba Rules 1981. |
|
|
|
|
|
|
| b.
In our opinion, and to the best of our information and according to the
explanations |
|
| Given
to the Balance Sheet and the related Profit Account and Statement of |
|
| Changes
in financial Position (Cash Flow Statement) which are in agreement |
|
| with
the books of account, exhibit respectively a true and fair view of the state |
|
| of
the Modaraba's affairs as at June 30th, 2000 and of the profit and the
changes |
|
| in
financial position for the year ended on that date: |
|
|
| c.
In our opinion, no zakat was deductible as source under the Zakat and Ushr |
|
| Ordinance
1980; and |
|
|
|
|
|
|
| d.
The business conducted, investments made and the expenditure incurred by |
|
| Modaraba
are in accordance with the objects, terms and conditions of the |
|
| Modaraba. |
|
|
|
|
|
|
MEHMOOD ZUBERI & CO |
|
|
|
Chartered Accountants |
|
|
|
| Balance
Sheet As At June 30th, 2000 |
|
|
|
|
|
2000 |
1999 |
|
|
|
NOTE |
RUPEES |
RUPEES |
|
|
| OPERATING
ASSETS |
|
7 |
1,224.95 |
1,224.95 |
|
|
|
|
|
|
| DEFERRED
COST |
|
8 |
-- |
744,245 |
|
|
|
| CURRENT
ASSETS |
|
| Stock-in trade |
|
9 |
22,525,000 |
20,500,000 |
|
| Morabaha
finance |
|
|
1,500,000 |
11,486,200 |
|
| Trade
Receivables |
|
10 |
24,912,715 |
17,715,349 |
|
| Advance
Income Tax |
|
|
626,928 |
626,928 |
|
| Short
term investment |
|
11 |
37,000 |
37,000 |
|
| Other
receivables |
|
12 |
2,005,125 |
2,461,038 |
|
| Cash
ad bank balances |
|
13 |
270,000 |
150,500 |
|
|
|
------------------ |
------------------ |
|
|
|
51,876,768 |
52,977,015 |
|
|
------------------ |
------------------ |
|
| TOTAL:- |
|
|
53,121,717 |
53,763,550 |
|
|
|
|
========== |
========== |
|
|
| The
annexed notes from I to 19 from an integral part of these accounts. |
|
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
MAHMOOD ZUBERI & CO. |
|
|
|
|
|
CHARTERED ACCOUNTANTS |
|
|
|
|
|
|
2000 |
1999 |
|
| SHARES
CAPITAL AND RESERVES NOTE |
|
RUPEES |
RUPEES |
|
|
| Authorized |
|
| 10,000,000
Ordinary Shares of Rs.. 10/- each |
|
100,000,000 |
100,000,000 |
|
|
|
========== |
========== |
|
|
-- |
-- |
|
| Issued
Subscribed and paid up Capital |
|
-- |
-- |
|
| 5,000,000
Modaraba Certificated of Rs. 10/- each |
|
50,000,000 |
50,000,000 |
|
| Fully
paid in cash statutory reserve |
3 |
945,137 |
875,019 |
|
| Accumulated
profit/(loss) |
|
|
490,826 |
442,708 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
51,435,963 |
51,317,727 |
|
|
|
|
------------------ |
------------------ |
|
| SHARES
CAPITAL AND RESERVES |
4 |
-- |
485,160 |
|
|
|
| CURRENT
LIABILITIES |
|
| Current
portion of deferred liability |
|
596,539 |
1,455,468 |
|
| Management
fee payable |
|
5 |
214,055 |
180,469 |
|
| Creditors,
accrued and other liabilities |
6 |
50,000 |
400,000 |
|
| Taxation |
|
|
340,000 |
325,000 |
|
|
------------------ |
------------------ |
|
|
|
1,200,594 |
2,360,937 |
|
|
|
------------------ |
------------------ |
|
|
|
TOTAL:- |
53,121,717 |
53,763,550 |
|
|
|
|
========== |
========== |
|
|
| The
annexed notes from 1 to 19 from an integral part of these account. |
|
|
|
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
MAHMOOD ZUBERI & CO. |
|
|
|
|
|
CHARTERED ACCOUNTANTS |
|
|
|
| Profit
and Loss Account for the year ended June 30th, 2000 |
|
|
|
|
|
2000 |
1999 |
|
|
|
NOTE |
RUPEES |
RUPEES |
|
|
|
|
|
| INCOME |
|
| Morabaha
Finance |
|
|
300,000 |
2,469,533 |
|
| Trading |
|
15 |
685,000 |
625,000 |
|
| Dividend |
|
|
-- |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
985,000 |
3,094,533 |
|
| EXPENDITURE |
|
| Administration
and operating expenses |
16 |
625,115 |
752,225 |
|
| Financial
charges |
|
17 |
-- |
153,633 |
|
| Provision
for diminution in value of |
|
|
|
| Listed
Securities |
|
|
-- |
-- |
|
| Provision
for doubtful debts |
|
|
80,000 |
900,000 |
|
|
------------------ |
------------------ |
|
|
|
|
705,115 |
2,550,103 |
|
|
|
|
========== |
========== |
|
|
|
|
279,885 |
544,430 |
|
| Excess
markup provision reversed |
|
-- |
-- |
|
|
------------------ |
------------------ |
|
| Profit
before Modaraba Company's Management fee |
279,885 |
544,430 |
|
| Modaraba
Company's Management fee |
|
33,586 |
67,669 |
|
|
------------------ |
------------------ |
|
| Net
profit before taxation |
|
|
246,299 |
476,761 |
|
| Provision
for taxation |
|
|
86,204 |
190,704 |
|
|
|
|
------------------ |
------------------ |
|
| Net
profit after taxation |
|
|
160,095 |
286,057 |
|
| Accumulated
loss brought forward |
|
400,849 |
172,003 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
560,944 |
458,060 |
|
| Transferred
to Statutory reserve |
|
|
70,118 |
57,211 |
|
|
|
|
------------------ |
------------------ |
|
| Accumulated
profit/(loss) carried forward |
|
490,826 |
400,849 |
|
|
|
|
========== |
========== |
|
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
MAHMOOD ZUBERI & CO. |
|
|
|
|
|
CHARTERED ACCOUNTANTS |
|
|
|
|
|
|
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
|
| (CASH
FLOW STATEMENT) FOR THE YEAR ENDED JUNE 30, 2000 |
|
|
|
|
|
2000 |
1999 |
|
| A.
CASH FLOWS FROM OPERATING ACTIVITIES |
RUPEES |
RUPEES |
|
|
| Profit
before taxation |
|
246,299 |
476,761 |
|
| Adjustment for |
|
| Depreciation |
|
83,097 |
92,331 |
|
| Financial
charges |
|
-- |
153,633 |
|
| Amortization
of deferred cost |
|
-- |
744,245 |
|
| Reversal
of excess provision of mark-up |
|
|
|
| Provision
for diminution in value of |
|
|
|
| listed securities |
|
-- |
-- |
|
| Provision
of doubtful debts |
|
80,000 |
90,000 |
|
| Dividend
income |
|
-- |
-- |
|
|
------------------ |
------------------ |
|
| Operating
profit before working capital |
|
409,396 |
1,872,210 |
|
| charges |
|
|
| (Increase)
/ decrease in current assets |
|
| Stock in trade |
|
|
(2,025,000) |
(20,500,000) |
|
| Trade debtors |
|
|
(8,697,366) |
9,856,698 |
|
| Advances |
|
|
-- |
-- |
|
| Other
receivables |
|
455,913 |
(1,236,030) |
|
|
------------------ |
------------------ |
|
|
|
|
(10,266,453) |
11,879,332 |
|
|
| (Increase)
/ decrease in current liabilities |
|
|
| Payable
to Management Company |
|
35,586 |
67,669 |
|
| Creditors,
accrued and other liabilities |
|
350,000 |
(312) |
|
|
|
------------------ |
------------------ |
|
|
|
383,586 |
67,357 |
|
|
------------------ |
------------------ |
|
| Cash
from operations |
|
|
(9,882,867) |
(9,445,005) |
|
| Financial
charges paid |
|
|
-- |
(153,633) |
|
| Dividend paid |
|
|
-- |
-- |
|
|
|
|
|
|
| Cash
from operations |
|
|
(9,882,867) |
(9,598,638) |
|
|
|
| B.
CASH (USED IN) / FROM INVESTMENT ACTIVITIES |
|
|
| Morabaha
Finances |
|
|
-- |
10,500,000 |
|
| Dividend
Income |
|
|
-- |
-- |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash (used in)/from investing activities |
|
-- |
10,500,000 |
|
|
------------------ |
------------------ |
|
|
|
| C.
CASH USED IN FINANCING ACTIVITIES |
|
| Short
term bank borrowing |
|
-- |
-- |
|
|
------------------ |
------------------ |
|
| Net
cash used in financing activities |
|
-- |
-- |
|
|
------------------ |
------------------ |
|
|
| Net
(decrease) / increase in cash and bank |
|
| balance
(A+B+C) |
|
|
9,882,867 |
901,362 |
|
|
|
|
| Cash
and bank balances at the beginning |
|
| of the year |
|
|
100,000 |
1,032,423 |
|
|
|
|
------------------ |
------------------ |
|
| Cash
and bank balances at the end of the year |
|
9,982,867 |
1,933,785 |
|
|
========== |
========== |
|
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
MAHMOOD ZUBERI & CO. |
|
|
|
|
|
CHARTERED ACCOUNTANTS |
|
|
|
| Notes
to the Accounts - June 30, 2000 |
|
| For
the Year Ended June 30, 2000 |
|
|
| 1.
STATUS AND NATURE OF BUSINESS |
|
| First
Dadabhoy Modaraba was formed under the Modaraba was formed under the Modaraba |
|
| Companies
and Modaraba (Flotation and Control Ordinance, 1980 and rules framed
thereunder |
|
| and
is managed by Dadabhoy Modaraba Management (Private) Limited, a company
incorporated |
|
| in
Pakistan under the Companies Ordinance, 1984 and registered with the
Registrar Modaraba |
|
| companies
and Modarabas under the Modarabas (Flotating and Control) Ordinance, 1980. It
is |
|
| a
perpetual, multipurpose and multidimensional Modaraba and is engaged in
providing finance |
|
| on
Morabaha and Musharika arrangements, commodity trading, investment in
marketable securities |
|
| and
other related business in accordance with the injunction of Islam. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
|
| 2.1
ACCOUNTING CONVENTION |
|
| These
accounts have been prepared under 'historical cost convention. |
|
|
| 2.2
OPERATING ASSETS |
|
| Operating
fixed assets are state at cost less accumulated depreciation. Depreciation is
charged |
|
| to
income applying the reducing balance method at the rates specified in the
fixed assets note. |
|
| Depreciation
on additions is charged from the month of acquisition and no depreciation is |
|
| charged
from the month of acquisition and no depreciation is charged for the month of
delection. |
|
| Maintenance
and normal repairs are charged to income as and when incurred. Major
improvements |
|
| are capitalized. |
|
|
| Gains
and losses on disposal of fixed assets are included in current income. |
|
| Investments
in properties are state at cost. Investment in securities are stated at lower
of |
|
| moving
average cost and market value on aggregate portfolio basis. |
|
|
| 2.4
DEFERRED COST |
|
| Cost
incurred in connection with flotation of Modaraba are being amortized over a
period of |
|
| five years. |
|
|
| 2.5
STOCK IN TRADE |
|
| These
are valued at lower of average cost and net realizable value. |
|
|
| 2.6
TRADE DEBTS |
|
| Known
bad debts are written off while provision in is made for debts considered
doubtful. |
|
| Securities
are stated at lower of moving average cost and market value on aggregate
portfolio |
|
| basis. |
|
|
| 2.7
MARKET SECURITIES |
|
| Short
term investment in quoted securities are stated at lower of cost and market
value determined |
|
| on
aggregate portfolio basis. |
|
|
| 2.8
PROVISION FOR DOUBTFUL RECOVERIES |
|
| Provision
for doubtful amounts are made at the year end after review of outstanding
Morabaha |
|
| and
Musharika finance and trade bills receivable on the basis of State Bank of
Pakistan Prudential |
|
| Regulations
as applied to Modaraba other doubtful amounts are provided for on the basis
of their possible |
|
| realization. |
|
|
| 2.8
REVENUE RECOGNITION |
|
| Profit
on Morabaha finance are accrued based on time proportion. However, profit on
Morabaha |
|
| finance
against which provision for doubtful recoveries are required under State Bank
of Pakistan |
|
| prudential
Regulations is not taken to income. |
|
|
| Sales
are recorded on dispatch of goods to customers. |
|
|
| Gain
or loss on sale of marketable securities is recognized in the year in which
it arises. |
|
|
| Dividend
Income is recorded net of Zakat and is recognized at the time of closure of
shares transfer |
|
| books
of the Company declaring the dividend. |
|
|
|
|
2000 |
1999 |
|
|
|
RUPEES |
RUPEES |
|
| 3.
STATUTORY RESERVE |
|
| Opening
Balance |
|
|
875,019 |
817,808 |
|
| Transferred
from profit and loss account |
|
|
| during the year |
|
|
70,118 |
57,211 |
|
|
|
------------------ |
------------------ |
|
|
|
945,137 |
875,019 |
|
|
------------------ |
------------------ |
|
| This
represents provision @ 20% after tax profit. |
|
| As
per the regulations for Nonbanking Financial |
|
| institutions
of the State Bank of Pakistan 20% of |
|
| after
tax profit be transfer to reserved Fund. |
|
|
| 4.
DEFERRED LIABILITY |
|
|
|
|
|
| DECRETAL
BANK LOAN |
|
|
| Transferred
during the year |
|
1,455,467 |
1,455,467 |
|
| Payable
within one year shown under |
|
|
|
| current
liabilities |
|
(970,307) |
(970,307) |
|
|
|
|
|
| This
represent decreed amount in Banks favour. |
|
| It
is subject of Markup @ 0.52 paisas per |
|
| Rs.
1,000 per day and is payable in 24 equal |
|
| installment
commencing from January 30th, 1999. |
|
|
| 5.
MANAGEMENT FEE PAYABLE |
|
------------------ |
------------------ |
|
| Payable
to Dadabhoy Management (Pvt) Ltd. |
|
214,055 |
180,469 |
|
|
------------------ |
------------------ |
|
|
| 6.
CREDITORS, ACCRUED AND OTHER LIABILITIES |
|
| Accrued
expenses |
|
|
50,000 |
246,367 |
|
| Markup
on decretal bank loan |
|
|
-- |
153,633 |
|
|
------------------ |
------------------ |
|
|
|
50,000 |
400,000 |
|
|
|
|
|
------------------ |
------------------ |
|
| 7.
OPERATING ASSETS |
|
|
| PARTICULARS |
Cost at |
Cost at |
Accumulated |
Written Down |
Depreciation |
Rate |
|
|
1st July |
June 30, |
Depreciation |
Value at |
For the |
|
|
|
1988 |
1999 |
at June 30, 99 |
June 30, 99 |
Year |
|
|
|
|
|
|
298,754 |
985,353 |
284,641 |
702,149 |
70,214 |
10 |
| OFFICE |
|
94,825 |
94,825 |
38,706 |
55,502 |
5,550 |
10 |
| EQUIPMENT |
|
135,537 |
135,537 |
61,391 |
73,331 |
7,333 |
10 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Rupees
(Rs.) 2000 |
529,116 |
1,215,715 |
384,738 |
830,982 |
83,094 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
| 8.
DEFERRED COST |
|
| Preliminary
expenses |
|
2,674,650 |
2,674,650 |
|
|
|
663,125 |
663,125 |
|
|
|
383,450 |
383,450 |
|
|
------------------ |
------------------ |
|
|
|
|
3,721,225 |
3,721,225 |
|
|
|
|
------------------ |
------------------ |
|
| Amortisation |
|
|
(3,721,225) |
(2,976,980) |
|
| Opening
balance |
|
|
-- |
744,245 |
|
|
|
|
------------------ |
------------------ |
|
| During the year |
|
(3,721,225) |
(3,721,225) |
|
|
========== |
========== |
|
|
| 9.
STOCK-IN TRADE |
|
| Machinery |
|
|
15,000,000 |
20,500,000 |
|
| Milk Powder |
|
|
28,000,000 |
-- |
|
| Commodities |
|
|
4,725,000 |
-- |
|
|
|
------------------ |
------------------ |
|
|
|
|
22,525,000 |
20,500,000 |
|
|
|
|
========== |
========== |
|
|
| 10.
TRADE DEBTORS |
|
| Local-unsecured |
|
|
24,992,715 |
20,372,651 |
|
| Provision
for doubtful debts |
|
|
80,000 |
2,657,302 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
24,912,715 |
17,715,349 |
|
|
========== |
========== |
|
| 11.
SHORT TERM INVESTMENT |
|
| listed securities |
|
|
| Fully
paid having face value of Rs. 10/- each |
|
|
|
|
| NAME
OF THE COMPANY |
No. of Shares |
Market Value |
2000 |
1999 |
|
|
|
RUPEES |
RUPEES |
|
|
| N.I.T UNITS |
|
2,500 |
17,625 |
37,000 |
37,000 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
|
2,500 |
17,625 |
37,000 |
37,000 |
|
|
========== |
========== |
========== |
========== |
