| Fateh Sports Wear Limited |
|
|
|
|
|
|
| Annual
Report 2000 |
|
|
|
| Notice
of Annual General Meeting |
|
|
| Notice
is hereby given that the 17th Annual General Meeting of the shareholders of
FATEH SPORTS |
|
| WEAR
LIMITED, will be held on Monday the 18th December, 2000 at 8.00 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 Extra Ordinary General Meeting of the
Company held on June |
|
| 8th, 2000. |
|
|
| 2.
To receive and adopt the Directors' Report and Audited Balance Sheet together
with the Profit & |
|
| Loss
Account of the Company for the year ended 30th June, 2000. And to declare
cash dividend |
|
| @
Rupee 0.75 per sham (7.5%) as recommended by the Board of Directors. |
|
|
| 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 SPORTS WEAR LIMITED |
|
|
| Hyderabad |
|
Muhammad Iqbal Khan |
|
| 26th
November, 2000 |
|
Company Secretary |
|
|
| NOTES: |
|
| 1.
The share transfer books of the Company will remain closed for7 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 |
|
|
| BOARD: |
|
| CHAIRMAN/CHIEF
EXECUTIVE |
|
| Mr.
Rauf Alam |
|
|
| DIRECTORS |
|
| Mr.
Aftab Alam |
|
| Mr.
Saeed 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 |
|
| Muslim
Commercial Bank Limited |
|
| Askari
Commercial Bank Limited |
|
| Allied
Bank of Pakistan Limited |
|
|
| REGISTERED
OFFICE |
|
| Mirpurkhas
Road, |
|
| Hyderabad. |
|
|
| BRANCH
OFFICE |
|
| 9th
Floor, Adamjee House, |
|
| I.I.
Chundrigar Road, |
|
| Karachi. |
|
|
| PLANT |
|
| Kali Mori, |
|
| Hyderabad. |
|
|
|
| Directors'
Report to the Members |
|
|
| On
behalf of the Board of Directors, I welcome you on 17th Annual General
Meeting of your Company |
|
| M/s.
Fateh Sportswear 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. |
|
|
| Operating
Results |
|
| During
the year 1999-2000 the Company earned a pretax profit of Rs. 3.3 million and
achieved sales of |
|
| Rs.
291.6 million which went down by 42.9% and 1.9% respectively in comparison
with the last year |
|
| figures
while the Gross Profit rate remained almost the same. |
|
|
| Earnings
per ordinary share were Rs.0.74 as against Rs.1.96 last year. |
|
|
| Appropriations |
|
| The
Board of Directors has recommended following appropriations: |
|
|
|
Rupees (000) |
|
| Pretax Profit |
|
3,329 |
|
| Provision
for Taxation |
|
1,847 |
|
|
----------- |
|
| Profit
after Taxation |
|
1,482 |
|
| Unappropriated
profit brought forward |
975 |
|
|
----------- |
|
| Profit
available for appropriation |
2,457 |
|
|
| Appropriations
:- |
|
| Cash
Dividend @ 7.5% |
|
1,500 |
|
| Transfer
to General Reserve |
500 |
|
|
----------- |
|
|
2,000 |
|
|
----------- |
|
| Balance
carried over to Balance Sheet |
457 |
|
|
========== |
|
|
|
|
| Future
Vision |
|
| Directors
of your Company are confident that the collection of outstanding amounts from
the foreign |
|
| buyers
will improve in the next year. The impact of this induction of liquidity,
which is quite sizeable, will |
|
| help
reducing the Financial Expenses to the tune of at least half and it is also
estimated that company's |
|
| turnover
will increase. Both of these effects are going to boost the profitability of
our operations. |
|
|
| Appointment
of Auditors |
|
| The
retiring auditors M/s. Moosa & Company, Chartered Accountants, being
eligible offer themselves for |
|
| reappointment. |
|
|
| Pattern
of Shareholding |
|
| The
pattern of shareholding required under Sec. 236 of the Companies Ordinance,
1984 is annexed. |
|
|
| Staff-Management
Relations |
|
| The
Board of Directors places on record its sincere appreciations on the services
rendered by the |
|
| Company's
employees and the co-operation received from the Bankers. |
|
|
|
RAUF ALAM |
|
|
CHAIRMAN |
|
| Dated
20th November, 2000 |
|
BOARD OF DIRECTORS |
|
|
|
| Pattern
of holdings of the shares held |
|
| by
the shareholders of Fateh Sports wear Ltd. |
|
| as
at 30th June, 2000 |
|
|
| NO. OF |
|
|
| SHAREHOLDERS |
|
SHAREHOLDING |
|
TOTAL SHARES |
|
|
HELD |
|
| 138 |
From |
1 |
To |
100 |
13,113 |
|
| 91 |
From |
101 |
To |
500 |
26,867 |
|
| 61 |
From |
501 |
To |
1000 |
43,915 |
|
| 41 |
From |
1001 |
To |
5000 |
59,962 |
|
| 7 |
From |
5001 |
To |
10000 |
49,865 |
|
| 1 |
From |
15001 |
To |
20000 |
18,700 |
|
| 1 |
From |
20001 |
To |
25000 |
22,695 |
|
| 1 |
From |
25001 |
To |
30000 |
25,431 |
|
| 1 |
From |
30001 |
To |
35000 |
34,825 |
|
| 2 |
From |
45001 |
To |
50000 |
98,079 |
|
| 1 |
From |
50001 |
To |
55000 |
53,270 |
|
| 2 |
From |
55001 |
To |
60000 |
114,510 |
|
| 3 |
From |
60001 |
To |
65000 |
190,525 |
|
| 1 |
From |
70001 |
To |
75000 |
72,750 |
|
| 1 |
From |
80001 |
To |
85000 |
82,815 |
|
| 1 |
From |
90001 |
To |
95000 |
91,800 |
|
| 1 |
From |
95001 |
To |
100000 |
96,385 |
|
| 1 |
From |
100001 |
To |
105000 |
102,740 |
|
| 3 |
From |
105001 |
To |
110000 |
324,820 |
|
| 1 |
From |
130001 |
To |
135000 |
134,146 |
|
| 1 |
From |
150001 |
To |
155000 |
151,047 |
|
| 1 |
From |
190001 |
To |
195000 |
191,740 |
|
| ----------- |
|
----------- |
|
| 361 |
TOTAL |
|
2,000,000 |
|
| ========== |
|
========== |
|
|
|
|
|
| CATEGORIES
OF |
NUMBER |
SHARE |
PERCENTAGE |
|
|
| SHAREHOLDERS |
|
HELD |
|
|
| Individuals |
|
356 |
1,898,470 |
94.93 % |
|
| Investment
Companies |
3 |
100,980 |
5.05% |
|
| Insurance
Companies |
0 |
0 |
0.00% |
|
| Joint
Stock Companies |
1 |
465 |
0.02% |
|
| Financial
Institutions |
0 |
0 |
0.00% |
|
| Modaraba
Companies |
0 |
0 |
0.00% |
|
| Abandoned
Properties |
1 |
85 |
0.00% |
|
| Organisation |
|
|
|
|
----------- |
----------- |
----------- |
|
| Total |
|
361 |
2,000,000 |
100.00% |
|
|
========== |
========== |
========== |
|
|
|
|
| Auditors'
Report to the Members |
|
|
| We
have audited the annexed balance sheet of Fateh Sports wear Limited as at
June 30, 2000, the related |
|
| profit
& loss account, 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 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
conduct 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; |
|
|
| (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, the 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 profit |
|
| its
cash flows for the year then ended, and |
|
|
| (d)
in our opinion, Zakat deductible at source under the Zakat & Ushr
Ordinance, 1980 was deducted |
|
| by
the Company and deposited in the Central Zakat Fund established under section
7 of that |
|
| Ordinance. |
|
|
|
MOOSA & CO. |
|
| Karachi: 20th November 2000 |
|
Chartered Accountants |
|
|
|
| Balance
Sheet as at June 30, 2000 |
|
|
|
NOTE |
30-06-2000 |
30-06-1999 |
|
|
NO. |
RUPEES |
RUPEES |
|
| CAPITAL
& LIABILITIES |
|
| SHARE
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 share capital |
3 |
20,000,000 |
20,000,000 |
|
| General
reserve |
|
4 |
53,500,000 |
53,000,000 |
|
| Unappropriated
profit |
|
457,501 |
974,871 |
|
|
------------ |
------------ |
|
|
73,957,501 |
73,974,871 |
|
| DEFERRED
LIABILITIES |
|
| Provision
for gratuity |
|
3,129,778 |
3,105,684 |
|
|
| CURRENT
LIABILITIES |
|
| Short
term running finances |
|
5 |
152,478,627 |
156,310,439 |
|
| Creditors,
accrued and other liabilities |
|
6 |
151,691,471 |
139,140,960 |
|
| Workers'
profit participation fund |
|
7 |
175,600 |
6,105,101 |
|
| Provision
for taxation |
|
8 |
1,700,000 |
1,700,000 |
|
| Proposed
final dividend |
|
1,500,000 |
3,000,000 |
|
|
------------ |
------------ |
|
|
307,545,698 |
306,556,500 |
|
|
------------ |
------------ |
|
|
384,632,977 |
383,637,055 |
|
|
========== |
========== |
|
|
| TANGIBLE
FIXED ASSETS |
|
| Operating
fixed assets |
|
9 |
40,801,257 |
43,082,298 |
|
|
| CURRENT
ASSETS |
|
| Stores,
spare parts and loose tools |
|
10 |
10,692,257 |
9,106,042 |
|
| Stock-in-trade |
|
11 |
95,929,082 |
54,398,903 |
|
| Trade debts |
|
12 |
129,573,109 |
138,710,635 |
|
| Advances,
deposits and prepayment |
|
13 |
55,163,739 |
55,473,739 |
|
| Other
receivables |
|
14 |
50,678,183 |
80,600,041 |
|
| Cash
and bank balances |
|
15 |
1,795,350 |
2,265,397 |
|
|
------------ |
------------ |
|
|
343,831,720 |
340,554,757 |
|
|
------------ |
------------ |
|
|
384,632,977 |
383,637,055 |
|
|
========== |
========== |
|
| Notes: |
|
| 1. The annexed notes form an integral part of
these accounts. |
|
| 2. Auditor's report is attached |
|
|
|
RAUF ALAM |
|
AFTAB ALAM |
|
MOOSA & CO. |
|
| Dated:
20th November, 2000 |
Chief Executive |
|
Director |
|
Charted Accountants |
|
|
|
| Profit
and Loss Account |
|
| For
the year ended June 30, 2000 |
|
|
|
NOTE |
30-06-2000 |
30-06-1999 |
|
|
NO. |
RUPEES |
RUPEES |
|
| Sales |
|
16 |
291,646,493 |
297,525,355 |
|
| Cost of Sales |
|
17 |
215,974,247 |
220,963,841 |
|
|
|
------------ |
------------ |
|
| Gross Profit |
|
|
75,672,246 |
76,561,514 |
|
| Administration
expenses |
|
18 |
28,946,052 |
28,262,718 |
|
| Selling
expenses |
|
19 |
9,140,547 |
12,564,486 |
|
|
|
------------ |
------------ |
|
|
|
38,086,599 |
40,827,204 |
|
|
|
------------ |
------------ |
|
| Operating
Profit |
|
|
37,585,647 |
35,734,310 |
|
| Other
Income |
|
20 |
38,070 |
59,373 |
|
|
|
------------ |
------------ |
|
|
|
37,623,717 |
35,793,683 |
|
|
|
------------ |
------------ |
|
| Financial
expenses |
|
21 |
33,880,176 |
29,490,451 |
|
| Other
charges |
|
22 |
408,610 |
470,100 |
|
|
|
------------ |
------------ |
|
|
|
34,288,786 |
29,960,551 |
|
|
|
------------ |
------------ |
|
|
|
3,334,931 |
5,833,132 |
|
| Prior
Period Adjustment |
|
|
5,000 |
0 |
|
| Profit
before taxation |
|
|
3,329,931 |
5,833,132 |
|
|
|
|
| Taxation |
|
|
|
| Current |
|
1,700,000 |
1,700,000 |
|
| Prior |
|
|
147,301 |
203,263 |
|
|
|
------------ |
------------ |
|
|
|
1,847,301 |
1,903,263 |
|
|
|
------------ |
------------ |
|
| Profit
after taxation |
|
|
1,482,630 |
3,929,869 |
|
| Unappropriated
Profit brought forward |
|
|
974,871 |
1,045,002 |
|
|
|
------------ |
------------ |
|
| Profit
available for appropriation |
|
|
2,457,501 |
4,974,871 |
|
|
|
|
| Appropriations |
|
|
|
| General
Reserve |
|
500,000 |
1,000,000 |
|
| Proposed
final dividend |
|
|
|
| @
7.5% (1998-99 - 15%) |
|
1,500,000 |
3,000,000 |
|
|
|
------------ |
------------ |
|
|
|
2,000,000 |
4,000,000 |
|
|
|
------------ |
------------ |
|
| Unappropriated
Profit carried to Balance Sheet |
|
457,501 |
974,871 |
|
|
========== |
========== |
|
|
| Note:
The annexed notes form an integral part of these accounts |
|
|
|
|
RAUF ALAM |
|
AFTAB ALAM |
|
MOOSA & CO. |
|
| Dated:
20th November, 2000 |
Chief Executive |
|
Director |
|
Charted Accountants |
|
|
|
| Statement
of Changes in Financial Position |
|
| (Cash
Flow Statement) |
|
| for
the year ended June 30, 2000 |
|
|
|
NOTE |
30-06-2000 |
30-06-1999 |
|
|
NO. |
RUPEES |
RUPEES |
|
| NET
CASH INFLOW FROM |
|
| OPERATING
ACTIVITIES |
|
A |
32,807,454 |
51,514,584 |
|
| Return
on investment |
|
| and
servicing of finance: |
|
| Markup
/ interest paid |
|
(22,310,315) |
(24,382,113) |
|
| Dividend
paid |
|
(3,000,000) |
(2,000,000) |
|
| Gratuity paid |
|
(936,001) |
(890,996) |
|
|
------------ |
------------ |
|
|
| Net
Cash outflow from return on |
|
|
|
| investment
and servicing of finance |
|
(26,246,316) |
27,273,109) |
|
|
| Taxation |
|
| Tax Paid |
|
| (including
tax deducted at source' |
|
(1,557,927) |
(2,299,492) |
|
|
------------ |
------------ |
|
| Net
cash flow from taxation |
|
(1,557,927) |
(2,299,492) |
|
|
|
|
| Investing
activities |
|
|
|
| Fixed
capital expenditure |
|
(1,641,446) |
(959,362) |
|
|
------------ |
------------ |
|
| Net
cash flow from investing activities |
|
(1,641,446) |
(959,362) |
|
|
------------ |
------------ |
|
| Net
cash flow before financing activities |
|
3,361,765 |
20,982,621 |
|
| Financing
activities |
|
| Increase/(Decrease)
in short term borrowing |
|
(3,831,812) |
(24,739,398) |
|
|
------------ |
------------ |
|
| Net
cash flow from financing activities |
|
(3,831,812) |
24,739,398) |
|
|
------------ |
------------ |
|
| Increase/(decrease)
in cash & cash equivalent |
B |
(470,047) |
(3,756,777) |
|
|
========== |
========== |
|
|
|
30-06-2000 |
30-06-1999 |
|
|
RUPEES |
RUPEES |
|
| NOTE: A |
|
|
|
| Reconciliation
of operating profit to |
|
|
|
| net
cash flow from operating activities: |
|
| Net
profit before taxation |
|
3,329,931 |
5,833,132 |
|
|
|
|
| Depreciation |
|
3,922,487 |
4,214,307 |
|
| Mark-up
/ interest expenses |
|
33,388,784 |
28,996,148 |
|
| Provision
for gratuity |
|
960,095 |
755,770 |
|
|
------------ |
------------ |
|
|
38,271,366 |
33,966,225 |
|
|
------------ |
------------ |
|
| Operating
profit before working capital changes |
|
41,601,297 |
39,799,357 |
|
|
------------ |
------------ |
|
| (Increase)/Decrease
in current assets |
|
|
|
| Stores,
spares & loose tools |
|
(1,586,215) |
(1,225,854) |
|
| Stock-in-trade |
|
(41,530,179) |
31,749,157 |
|
| Trade
debtors |
|
9,137,526 |
(19,612,277) |
|
| Advances,
deposits & pre-payments |
|
20,626 |
65,888,889 |
|
| Other
receivables |
|
29,921,858 |
(23,981,247) |
|
|
|
|
| (Decrease)/Increase
in current liabilities |
|
|
|
|
|
|
| Creditors,
accrued & other liabilities |
|
1,172,042 |
(41,931,744) |
|
| Workers'
Profit Participation Fund |
|
(5,929,501) |
828,303 |
|
|
------------ |
------------ |
|
|
(8,793,843) |
11,715,227 |
|
|
------------ |
------------ |
|
|
32,807,454 |
51,514,584 |
|
|
========== |
========== |
|
| NOTE: B |
|
| Analysis
of changes in cash and cash |
|
| equivalents
during the year: |
|
| Cash
and bank balances as at June 30, 1999 |
|
2,265,397 |
6,022,174 |
|
| Increase/(decrease)
in |
|
|
|
| cash
and cash equivalents |
|
(470,047) |
(3,756,777) |
|
|
------------ |
------------ |
|
| Cash
and bank balances as at June 30, 2000 |
|
1,795,350 |
2,265,397 |
|
|
========== |
========== |
|
|
|
RAUF ALAM |
|
AFTAB 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
Sports wear Limited is incorporated in Pakistan as a public limited company
and is listed on |
|
| the
Karachi Stock Exchange. |
|
|
| The
principal activity of the Company is the manufacture of ready made garments
and selling them |
|
| locally
as well as doing exports. |
|
|
| 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 depreciation is charged on fixed assets sold/deleted
during the |
|
| year. |
|
|
| Maintenance
and normal repairs are charged to income as and when incurred. Major |
