| Fateh Industries Limited |
|
|
|
|
|
|
|
| Annual
Report 2000 |
|
|
|
| Notice
of Annual General Meeting |
|
|
| Notice
is hereby given that the 15th Annual General Meeting of the Shareholders of |
|
| FATEH
INDUSTRIES LIMITED, will be held on Monday the 18th December, 2000 |
|
| at
8.30 a.m. at the registered office of the Company at Mirpurkhas Road,
Hyderabad for |
|
| the
purpose of transacting the following business:- |
|
|
| 1.
To confirm the minutes of the last Annual General Meeting of the Company held
on |
|
| December
27th 1999. |
|
|
| 2.
To receive, consider and adopt the Audited Accounts for the year ended 30th
June, |
|
| 2000
together with Director's and Auditor's Reports thereon. |
|
|
| 3.
To appoint Auditors for the year 2000-2001 and fix their remuneration. |
|
|
| 4.
Any other business with the permission of the Chair. |
|
|
|
By order of the Board |
|
|
FATEH INDUSTRIES LIMITED |
|
| Hyderabad |
|
| 26th
November, 2000 |
|
Muhammad Iqbal Khan |
|
|
Company Secretary |
|
|
| NOTES: |
|
| 1.
The share transfer books of the Company will remain closed for 7 days from
12th |
|
| to
18th December, 2000 (both days inclusive). |
|
|
| 2.
Any member of the Company who is entitled to attend and vote may appoint any |
|
| other
member of the Company as his/her Proxy to attend and vote in his/her stead. |
|
|
| 3.
Proxies in order to be effective must be received by the Company at the
Registered |
|
| Office
not later than 48 hours before the time of holding the meeting. |
|
|
| 4.
Shareholders are required to notify the change of their address, if any,
immediately. |
|
|
|
| Company
Profile |
|
|
| MANAGING
DIRECTOR & |
|
| CHIEF
EXECUTIVE |
|
| Mr.
Saeed Alam |
|
|
| DIRECTORS |
|
| Mr.
Rauf Alam |
|
| Mr.
Aftab Alam |
|
| Mr.
Muhammad Mohsin |
|
| Mr.
Muhammad Naveed |
|
| Mrs.
Jamila Alam |
|
| Mrs.
Najma Roshan |
|
|
| SECRETARY |
|
| Mr.
Muhammad Iqbal Khan |
|
|
| AUDITORS |
|
| M/s.
Moosa & Company |
|
| Chartered
Accountants, |
|
| Karachi. |
|
|
| BANKERS |
|
| United
Bank Limited |
|
|
| REGISTERED
OFFICE |
|
| Mirpurkhas
Road, |
|
| Hyderabad. |
|
|
| BRANCH
OFFICE |
|
| 9th
Floor Adamjee House, |
|
| I.
I. Chundrigar Road, |
|
| Karachi. |
|
|
| PLANT |
|
| Mirpurkhas
Road, |
|
| Hyderabad. |
|
|
|
| Directors
Report to the Members |
|
|
| On
behalf of the Board of Directors I am pleased to welcome you on 15th Annual
General Meeting |
|
| of
your company M/s. Fateh Industries Ltd., and present before you the Audited
Accounts and the |
|
| Auditors'
Report for the year ended on June 30, 2000. The activities of the Company are
summarized |
|
| as follows. |
|
|
| Operations |
|
| The
Factory remained closed for whole of this year as compared to half year in
the last fiscal year |
|
| as
such no Sales were booked during 1999-2000. The net loss for the year was Rs.
41 million. The |
|
| Company
had lay off the labor and cut down all the expenses but only the running
expenses. Out of |
|
| this
loss Rs. 33.2 million came from stock verification and reassessment of the
inventory. While going |
|
| through
the physical stock taking it was noticed that many perishable items had gone
expired, the re- |
|
| assessment
was done which is taken as an administrative expense in the books. |
|
|
| The
financial expenses have came down to half of the previous year as the Company
had stopped |
|
| accruals
after it went in to the legal options with the Bank. |
|
|
| Financial
results |
|
| Financial
results for the year 1999-2000 were as follows; |
|
|
|
Rupees (000) |
|
| Operating
Loss |
|
34,553 |
|
| Other
Income |
|
(30) |
|
|
------------- |
|
|
34,523 |
|
| Financial
& Other Charges |
|
6525 |
|
|
------------- |
|
| Loss
before taxation |
|
41,048 |
|
| Provision
for taxation |
|
142 |
|
|
------------- |
|
|
41,190 |
|
| Un-appropriated
loss brought forward |
89,351 |
|
|
------------- |
|
| Loss
carried over to Balance Sheet |
130,541 |
|
|
========== |
|
|
|
|
| Auditors'
Observation |
|
| The
Auditors of the Company while qualifying their report under review have
observed that |
|
| accounts
have been prepared on going concern basis the validity of which depends on
the |
|
| support
of Directors towards providing working capital and other finance to the
Company. Your |
|
| Directors
fully endorse the view point of the Auditors of the Company. |
|
|
| Pattern
of Shareholding |
|
| The
pattern of shareholding required under section 236 of the Companies Ordinance
1984 is annexed. |
|
|
| Appointment
of Auditors |
|
| The
retiring auditors M/s. Moosa & Company, Chartered Accountants, being
eligible offer themselves |
|
| for
appointment. |
|
|
| Staff
and Management Relations |
|
| The
Board of Directors places on record its sincere appreciations on the services
rendered by the |
|
| Company's
employees and for the co-operation received from the Bankers. |
|
|
|
SAEED ALAM |
|
|
Chairman |
|
| Dated:
20th November, 2000 |
|
Board of Directors |
|
|
|
| Pattern
of Shareholdings as at June 30, 2000 |
|
|
|
|
| NO. OF |
|
TOTAL SHARES |
|
| SHAREHOLDER |
|
SHAREHOLDING |
|
HELD |
|
|
| 453 |
From |
1 |
To |
100 |
38,133 |
|
| 120 |
From |
101 |
To |
500 |
32,979 |
|
| 39 |
From |
501 |
To |
1000 |
26,625 |
|
| 6 |
From |
1001 |
To |
5000 |
12,600 |
|
| 5 |
From |
5001 |
To |
10000 |
42,719 |
|
| 1 |
From |
10001 |
To |
15000 |
14,737 |
|
| 1 |
From |
15001 |
To |
20000 |
16,174 |
|
| 2 |
From |
30001 |
To |
35000 |
67,399 |
|
| 1 |
From |
35001 |
To |
40000 |
38,269 |
|
| 2 |
From |
40001 |
To |
45000 |
87,122 |
|
| 1 |
From |
45001 |
To |
50000 |
46,853 |
|
| 1 |
From |
50001 |
To |
55000 |
51,371 |
|
| 2 |
From |
55001 |
To |
60000 |
114,325 |
|
| 1 |
From |
60001 |
To |
65000 |
62,102 |
|
| 1 |
From |
70001 |
To |
75000 |
72,014 |
|
| 2 |
From |
95001 |
To |
100000 |
197,816 |
|
| 1 |
From |
100001 |
To |
105000 |
100,891 |
|
| 1 |
From |
110001 |
To |
115000 |
111,905 |
|
| 1 |
From |
115001 |
To |
120000 |
116,148 |
|
| 2 |
From |
120001 |
To |
125000 |
246,502 |
|
| 1 |
From |
140001 |
To |
145000 |
141,456 |
|
| 1 |
From |
165000 |
To |
170000 |
169,333 |
|
| 1 |
From |
190001 |
To |
195000 |
192,527 |
|
| ----------- |
|
----------- |
|
| 646 |
|
TOTAL |
|
2,000,000 |
|
| ========== |
|
========== |
|
|
|
| CATEGORIES
OF |
|
|
SHARES |
|
|
| SHAREHOLDERS |
|
NUMBERS |
HELD |
PERCENTAGE |
|
| Individuals |
|
641 |
1,946,917 |
97.35% |
|
| Investment
Companies |
|
3 |
51,499 |
2.57% |
|
| Insurance
Companies |
|
0 |
0 |
0.00% |
|
| Joint
Stock Companies |
|
2 |
1,584 |
0.08% |
|
| Financial
Institutions |
|
0 |
0 |
0.00% |
|
| Modarba
Companies others |
0 |
0 |
0.00% |
|
|
----------- |
----------- |
----------- |
|
| TOTAL |
|
646 |
2,000,000 |
100.00% |
|
|
========== |
========== |
========== |
|
|
|
|
|
|
|
|
|
| Auditors'
Report to the Members |
|
|
| We
have audited the annexed balance sheet of Fateh Industries Limited as at June
30, |
|
| 2000,
the related profit & loss account 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. |
|
|
| The
accounts have been prepared this year also on a going concern basis the
validity of |
|
| which
depends on the support from Directors of the Company towards providing |
|
| working
capital and other finances in the absence of which the basis would not be
valid |
|
| and
adjustment would have to be made for any gain or loss arising on realization
of the |
|
| Company's
assets. |
|
|
| 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 standard 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 included 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; |
|
|
| Subject
to the above reservation :- |
|
|
| (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 & 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 the 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 & loss account, cash flow statement
together |
|
| with
the notes, forming part thereof, confirm with approved accounting standard 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 June 30, 2000 and of the loss, its
cash |
|
| flows
for the year then ended; and |
|
|
| (d)
in our opinion no zakat was deductible at source under the Zakat & Ushr
Ordinance, |
|
| 1980. |
|
|
|
MOOSA & COMPANY |
|
| Karachi:
20th November, 2000 |
|
Chartered Accountants |
|
|
|
| Balance
Sheet as at June 30, 2000 |
|
|
|
NOTE |
30-06-2000 |
30-06-99 |
|
|
NO. |
RUPEES |
RUPEES |
|
| CAPITAL
AND LIABILITIES |
|
| SHARE
CAPITAL AND RESERVES |
|
|
| Authorised
Capital |
|
| 10,000,000
ordinary shares of Rs. 10/- each |
|
100,000,000 |
100,000,000 |
|
|
========== |
========== |
|
| Shareholders'
Equity |
|
|
|
| Issued,
subscribed and paid up share capital |
3 |
20,000,000 |
20,000,000 |
|
| General
reserve |
|
4 |
30,000,000 |
30,000,000 |
|
| Unappropriated
loss |
|
|
(130,541,55 8) |
(89,351,249) |
|
|
|
------------ |
------------ |
|
|
|
(80,541,558) |
(39,351,249) |
|
| LONG
TERM LOAN |
|
5 |
19,138,956 |
22,638,956 |
|
| CURRENT
LIABILITIES |
|
|
|
|
|
|
|
|
| Current
portion of long term liabilities |
|
6 |
0 |
0 |
|
| Short
term running finances |
|
7 |
245,319,772 |
246,374,022 |
|
| Creditors,
accrued and other liabilities |
|
8 |
79,512,415 |
75,125,099 |
|
| Workers'
profit participation fund |
|
9 |
0 |
0 |
|
| Provision
for taxation |
|
10 |
200,000 |
200,000 |
|
|
------------ |
------------ |
|
|
325,032,187 |
321,699,121 |
|
|
------------ |
------------ |
|
|
263,629,585 |
304,986,828 |
|
|
========== |
========== |
|
| PROPERTY
AND ASSETS |
|
| TANGIBLE
FIXED ASSETS |
|
| Operating
fixed assets |
|
11 |
98,398,115 |
98,153,312 |
|
| LONG
TERM INVESTMENTS |
|
12 |
17,566 |
17,566 |
|
| CURRENT
ASSETS |
|
|
|
| Stores,
spare parts and loose tools |
|
13 |
8,158,130 |
8,158,130 |
|
| Stock-in-trade |
|
14 |
40,885,483 |
74,133,629 |
|
| Trade debts |
|
15 |
58,658,212 |
60,011,410 |
|
| Advances,
deposits and prepayments |
|
16 |
14,310,187 |
14,663,879 |
|
| Other
receivables |
|
17 |
43,106,933 |
49,721,015 |
|
| Cash
and bank balances |
|
18 |
94,959 |
127,887 |
|
|
|
------------ |
------------ |
|
|
165,213,904 |
206,815,950 |
|
|
------------ |
------------ |
|
|
263,629,585 |
304,986,828 |
|
|
========== |
========== |
|
| NOTES: |
|
| 1.
The annexed notes form an integral part of these accounts. |
|
| 2.
Auditor's report is attached. |
|
|
SAEED ALAM |
|
RAUF ALAM |
|
MOOSA & COMPANY |
|
| Date:
20th November, 2000 |
|
Chief Executive |
|
Director |
|
Chartered Accountants |
|
|
|
| Profit
& Loss Account for the year ended June 30, 2000 |
|
|
|
NOTE |
30-06-2000 |
30-06-99 |
|
|
NO. |
RUPEES |
RUPEES |
|
| Sales |
|
19 |
0 |
23,085,795 |
|
| Cost of Sales |
|
20 |
0 |
15,532,826 |
|
|
----------- |
----------- |
|
| Gross Profit |
|
0 |
7,552,969 |
|
| Administration
expenses |
|
21 |
34,512,141 |
4,305,788 |
|
| Selling
expenses |
|
22 |
41,300 |
1,374,071 |
|
|
----------- |
----------- |
|
|
34,553,441 |
5,679,859 |
|
|
----------- |
----------- |
|
| Operating
Profit/(Loss) |
|
(34,553,441) |
1,873,110 |
|
| Other
income |
|
23 |
30,290 |
66,000 |
|
|
|
----------- |
----------- |
|
|
|
(34,523,151) |
1,939,110 |
|
|
|
|
|
| Financial
expenses |
|
24 |
6,517,156 |
13,132,353 |
|
| Other
charges |
|
25 |
15,000 |
19,590 |
|
|
----------- |
----------- |
|
|
6,532,156 |
13,151,943 |
|
|
| Prior
period adjustment |
|
7,500 |
0 |
|
|
----------- |
----------- |
|
| Loss
before taxation |
|
(41,047,807) |
(11,212,833) |
|
| Taxation |
|
| Current |
|
200,000 |
200,000 |
|
| Prior |
|
(57,498) |
(58,384) |
|
|
----------- |
----------- |
|
|
142,502 |
141,616 |
|
|
----------- |
----------- |
|
| Loss
after taxation |
|
(41,190,309) |
(11,354,449) |
|
| Unappropriated
loss brought forward |
|
(89,351,249) |
(77,996,800) |
|
|
----------- |
----------- |
|
| Unappropriated
loss carried to Balance Sheet |
|
(130,541,558) |
(89,351,249) |
|
|
========== |
========== |
|
| Note:
The annexed notes form an integral part of these accounts. |
|
|
|
SAEED ALAM |
|
RAUF ALAM |
|
MOOSA & COMPANY |
|
| Date:
20th November, 2000 |
|
Chief Executive |
|
Director |
|
Chartered Accountants |
|
|
|
|
|
|
|
|
|
| Statement
of Changes in Financial Position for the year ended June 30, 2000 |
|
| (Cash
Flow Statement) |
|
|
|
NOTE |
30-06-2000 |
30-06-99 |
|
|
NO. |
RUPEES |
RUPEES |
|
| NET
CASH INFLOW FROM |
|
| OPERATING
ACTIVITIES |
|
A |
10,095,171 |
(180,504,053) |
|
| Return
on investment |
|
| and
servicing of finance: |
|
| Mark-up
/ interest paid |
|
(5,234,346) |
(10,432,353) |
|
| Dividend
received |
|
(290) |
0 |
|
|
------------ |
------------ |
|
| Net
cash outflow from return on ' |
|
| investment
and servicing of finance |
|
(5,234,636) |
(10,432,353) |
|
|
| Taxation |
|
| Tax paid |
|
| (including
tax deducted at source) |
|
(94,410) |
(48,198) |
|
|
------------ |
------------ |
|
| Net
cash flow from taxation |
|
(94,410) |
(48,198) |
|
|
|
|
| Investing
activities |
|
|
|
| Fixed
capital expenditure |
|
(244,8003) |
(1,098,226) |
|
| Sale
of fixed assets |
|
0 |
45,805 |
|
|
------------ |
------------ |
|
| Net
cash flow from investing activities |
|
(244,803) |
(1,052,421) |
|
|
------------ |
------------ |
|
| Net
cash flow before financing activities |
|
4,521,322 |
(192,037,025) |
|
| Financing
activities |
|
| Increase/(Decrease)
in: |
|
| Long
term loans |
|
(3,500,000) |
0 |
|
| Short
term borrowing |
|
(1,054,250) |
188,422,954 |
|
|
------------ |
------------ |
|
| Net
cash flow from financing activities |
|
(4,554,250) |
188,422,954 |
|
|
------------ |
------------ |
|
| Increase/(decrease)
in cash & cash equivalent |
B |
(32,928) |
(3,614,071) |
|
|
========== |
========== |
|
|
|
|
30-06-2000 |
30-06-99 |
|
|
RUPEES |
RUPEES |
|
| NOTE: A |
|
| Reconciliation
of operating profit to |
|
| net
cash flow from operating activities: |
|
|
| Net
loss before taxation |
|
(41,047,807) |
(11,212,833) |
|
|
| Depreciation |
|
0 |
848,526 |
|
| Mark-up
/ interest expenses |
|
6,517,156 |
13,132,353 |
|
| Dividend
received |
|
290 |
0 |
|
|
|
|
|
6,517,446 |
13,980,879 |
|
|
|
|
| Operating
profit before working capital changes |
|
(34,530,361) |
2,768,046 |
|
| (Increase)/Decrease
in current assets |
|
| Stores,
spare & loose tools |
|
0 |
(25,676) |
|
| Stock-in-trade |
|
33,248,146 |
9,193,834 |
|
| Trade
debtors |
|
1,353,198 |
(3,487,512) |
|
| Advances,
deposits & pre-payments |
|
305,600 |
(6,241,992) |
|
| Other
receivables |
|
6,614,082 |
10,149,921 |
|
|
| (Decrease)/Increase
in current liabilities |
|
|
| Creditors,
accrued & other liabilities |
|
3,104,506 |
186,152,547 |
|
| Workers'
Profit Participation Fund |
|
0 |
(6,708,127 |
|
|
------------ |
------------ |
|
|
44,625,532 |
(183,272,099) |
|
|
------------ |
------------ |
|
|
10,095,171 |
(180,504,053) |
|
|
========== |
========== |
|
| NOTE: B |
|
| Analysis
of changes in cash and cash |
|
| equivalents
during 'the year: |
|
|
| Cash
and bank balances as at June 30, 1999 |
|
127,887 |
3,741,958 |
|
| Increase/(decrease)
in |
|
|
|
| cash
and cash equivalents |
|
(32,928) |
(3,614,071) |
|
|
------------ |
------------ |
|
| Cash
and bank balances as at June 30, 2000 |
|
94,959 |
127,887 |
|
|
========== |
========== |
|
|
|
SAEED ALAM |
|
RAUF ALAM |
|
| Dated:
20th November, 2000 |
Chief Executive |
|
Director |
|
|
|
|
|
| Notes
to the Accounts for the year ended June 30, 2000 |
|
|
| 1.
THE COMPANY AND ITS OPERATIONS |
|
| Fateh
Industries Limited is incorporated in Pakistan as a public limited company
and is listed |
|
| on
the Karachi Stock Exchange. |
|
|
| The
company is engaged mainly in the manufacturing and sales of footwear of all
kinds. |
|
|
| 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
|
| 2.1
Accounting convention |
|
| The
accounts have been prepared under the historical cost convention. The company |
|
| has
not adopted any procedure to determine the impact on the accounts of
inflation or |
|
| changes
in the general level of prices. |
|
|
| 2.2
Fixed Assets |
|
| These
are stated at cost less accumulated depreciation except land which is stated
at |
|
| cost. |
|
|
| Depreciation
is calculated on the written down value of assets. Full year's depreciation |
|
| is
charged on additions, while no deprecation is charged on fixed assets deleted
during |
|
| the year. |
|
|
| However
Depreciation is not charged on fixed assets of the company, because the |
|
| company
was not in operation during the year under consideration. |
|
