| Gul Ahmed Textile Mills Limited |
|
|
|
|
|
|
|
|
| Annual
Report 2000 |
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| CONTENTS |
|
|
| Company
Information |
|
| Notice
of Meeting |
|
| Directors'
Report |
|
| Auditors'
Report |
|
| Balance
Sheet |
|
| Profit
and Loss Account |
|
| Cash
Flow Statement |
|
| Statement
of Changes in Equity |
|
| Notes
to the Accounts |
|
| Pattern
of Shareholding |
|
|
|
| COMPANY
INFORMATION |
|
|
| BOARD
OF DIRECTORS |
IQBAL ALIMOHAMMED - Chief
Executive |
|
|
DR. AMJAD WAHEED - (NIT) |
|
|
BASHIR H. ALIMOHAMMED |
|
|
GHULAM HAJI ALIMOHAMMED |
|
|
JAWAID IQBAL |
|
|
ZAIN BASHIR |
|
|
ZIAD BASHIR |
|
|
| COMPANY
SECRETARY |
MOHAMMED HUSSAIN, FCA |
|
|
| BANKERS |
|
ABN AMRO BANK NV |
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|
AMERICAN EXPRESS BANK
LIMITED |
|
|
BANK AL HABIB LIMITED |
|
|
CITIBANK, N.A. |
|
|
DEUTSCHE BANK AG |
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|
HABIB BANK AG ZURICH |
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|
HABIB BANK LIMITED |
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|
SOCIETE GENERALE THE FIB |
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|
STANDARD CHARTERED BANK |
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|
STANDARD CHARTERED
GRINDLAYS BANK LIMITED |
|
|
UNION BANK LIMITED |
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|
UNITED BANK LIMITED |
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| AUDITORS |
|
HYDER BHIMJI & CO. |
|
|
Chartered Accountants |
|
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| REGISTERED
OFFICE |
PLOT NO. 82 |
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|
MAIN NATIONAL HIGHWAY |
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|
LANDHI, KARACHI-75120 |
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| SHARES
DEPARTMENT |
PLOT NO. HT/3A |
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|
LANDHI INDUSTRIAL AREA |
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|
KARACHI-75120 |
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|
| MILLS |
|
LANDHI INDUSTRIAL AREA |
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|
KARACHI-75120 |
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|
| E-MAIL |
|
finance@gulahmed.com |
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| WEBSITE |
|
www.gulahmed.com |
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| NOTICE
OF MEETING |
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| Notice
is hereby given that the 48th Annual General Meeting of Gul Ahmed Textile
Mills Limited will be held at Avari |
|
| Towers,
242, Fatima Jinnah Road, Karachi, on Saturday March 31, 2001 at 10:00 A.M. to
transact the following |
|
| business: |
|
|
| 1.
To receive, consider and adopt the Directors' Report and Audited Accounts for
the year ended |
|
| September
30, 2000 and Auditors' Report thereon. |
|
|
| 2.
To approve the payment of cash dividend @ 70% as recommended by the Board. |
|
|
| 3.
To appoint Auditors and fix their remuneration. |
|
|
| 4.
To transact any other ordinary business as may be placed before the meeting
with the permission |
|
| of
the Chairman. |
|
|
|
By Order of the Board |
|
|
| Karachi: |
|
JAWAID IQBAL |
|
| February
28, 2001 |
|
Director |
|
|
| NOTES: |
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| 1.
Share Transfer Books of the Company will remain closed from March 22, 2001 to
March 31,2001 |
|
| (both
days inclusive). |
|
|
| 2.
A member entitled to vote at the meeting may appoint a proxy. Proxies in
order to be effective, must |
|
| be
received at the Registered Office of the Company duly stamped and signed not
later than 48 |
|
| hours
before the meeting. |
|
|
| 3.
Shareholders who have deposited their shares into Central Depository Company
of Pakistan |
|
| Limited,
must bring their original National Identity Card (NIC) or Original Passport
at the time of |
|
| attending
the meeting. If proxies are granted by such shareholders the same must be
accompanied |
|
| with
attested copies of the NIC or the Passport of the beneficial owners.
Representatives of |
|
| corporate
members should bring the usual documents required for such purpose. |
|
|
| 4.
A proxy must be a member of the Company. |
|
|
| 5.
Shareholders are requested to immediately notify the change of address, if
any. |
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|
|
| DIRECTORS'
REPORT |
|
|
|
| Your
Directors are pleased to present the 48th Annual Report and the audited
accounts for the year ended |
|
| September
30, 2000. |
|
|
| These
accounts include the results of Excel Textile Mills Limited which has merged
with the Company effective |
|
| October
01,1999. As you are aware the scheme of arrangement for amalgamation between
the Company and |
|
| Excel
Textile Mills Limited was approved by the shareholders in the Extra Ordinary
General Meeting held on |
|
| December
19, 2000 and sanctioned by the Honorable High Court of Sindh in its order
dated January 18, 2001. |
|
|
| OPERATING
RESULTS |
|
Rs. 000s |
|
| Operating
results of the Company are noted below: |
|
| Profit
after providing depreciation |
|
| of
Rs. 180 million amounts to |
|
625,801 |
|
| Less:
Provision for taxation |
|
67,650 |
|
|
----------- |
|
| Profit
after taxation |
|
558,151 |
|
| Add:
Unappropriated profit brought forward |
|
5,320 |
|
| Accumulated
profit of Excel Textile Mills Limited |
|
84,337 |
|
|
----------- |
|
| Amount
available for appropriation |
|
647,808 |
|
|
========== |
|
| Appropriations |
|
| Proposed
dividend |
|
238,513 |
|
| General
reserve |
|
400,000 |
|
| Amount
carried forward |
|
9,295 |
|
|
----------- |
|
|
647,808 |
|
|
========== |
|
| Your
Company's performance during the year under review has been exceptionally
good. Profit before tax has |
|
| increased
to Rs. 626 million from Rs. 182 million. |
|
|
| Earnings
per share work out to Rs. 16.38. |
|
|
| In
order to comply with the requirements of IAS-19, Management is arranging
actuarial valuation of the |
|
| Company's
gratuity liability. |
|
|
| DIVIDEND |
|
| Your
Directors are pleased to recommend cash dividend @ 70% that is Rs. 7/- per
share. |
|
|
| FUTURE
PROSPECTS |
|
| A
record capital expenditure of Rs. 372 million has been incurred by the
Company on its balancing, |
|
| modernization
and replacement as well as expansion programme. The areas where this
investment has been |
|
| made
include processing, printing and finishing, upgrading of the spinning back
process facilities and setting |
|
| up
of a most modern laboratory having top of the line testing equipments. |
|
|
| In
the current fiscal year the Company has plans both for upgrading of the
existing facilities as well as addition |
|
| to
capacity in spinning and weaving. |
|
|
| On
the economic side after the approval of Stand-by Arrangement by the IMF and
debt rescheduling by the |
|
| Paris
Club, signs of modest recovery in the economy are now visible and it is
expected that investors confidence |
|
| will
also build up. |
|
|
| However
the economic slowdown in the US and its possible adverse impact on European
Union is a cause of |
|
| worry
for sustaining the momentum of growth in export sales. |
|
|
| BOARD
OF DIRECTORS |
|
| There
has been no change in the composition of the Board of Directors during the
year under review. |
|
|
| PATTERN
OF SHAREHOLDING |
|
| A
statement showing the pattern of shareholding in the Company as at September
30, 2000 is included in the report. |
|
|
| AUDITORS |
|
| The
present auditors Hyder Bhimji & Co., Chartered Accountants, retire and
offer themselves for re-appointment. |
|
|
| EMPLOYEES'
RELATIONS |
|
| Relationship
with the employees remained cordial and the Board is pleased to record its
appreciation for the |
|
| hard
work and dedication shown by them. |
|
|
|
For and on behalf of the Board |
|
|
|
|
| Karachi: |
|
IQBAL ALIMOHAMMED |
|
| February
28, 2001 |
|
Chief Executive |
|
|
|
| AUDITORS'
REPORT |
|
| TO
THE MEMBERS |
|
|
| We
have audited the annexed Balance Sheet of GUL AHMED TEXTILE MILLS LIMITED as
at September 30, |
|
| 2000
and the related Profit and Loss Account, Cash Flow Statement and Statement of
Changes in Equity |
|
| 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, Cash Flow Statement and Statement of Changes
in Equity |
|
| together
with the notes forming part thereof conform with approved accounting
standards as |
|
| applicable
in Pakistan, except the deviation of IAS-19 as more fully explained in Note
No.9.1 and give |
|
| the
information required by the Companies Ordinance, 1984, in the manner so
required and |
|
| respectively
with the exception of the matter reported earlier, give a true and fair view
of the state |
|
| of
the Company's affairs as at September 30, 2000 and of the profit, its cash
flow and changes in |
|
| equity
for the year then ended; and |
|
|
| (d)
in our opinion, Zakat deductible at source under the Zakat and Ushr
Ordinance, 1980 (XVIII of 1980), |
|
| was
deducted by the Company and deposited in the Central Zakat Fund established
under Section |
|
| 7
of that Ordinance. |
|
|
| Karachi: |
|
HYDER BHIMJI & CO. |
|
| February
28, 2001 |
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET AS AT SEPTEMBER 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
Note |
Rs. 000s |
|
| SHARE
CAPITAL AND RESERVES |
|
| Authorised
capital |
|
500,000 |
500,000 |
|
| 50,000,000
ordinary shares of Rs.10 each |
|
========== |
========== |
|
|
| Issued,
subscribed and paid-up capital |
|
3 |
286,260 |
286,260 |
|
| Share
capital under issue |
|
4 |
54,473 |
-- |
|
| Reserves |
|
5 |
972,645 |
551,086 |
|
| Unappropriated
profit |
|
9,295 |
5,320 |
|
|
------------ |
------------ |
|
|
1,322,673 |
842,666 |
|
| REDEEMABLE
CAPITAL |
|
6 |
-- |
32,445 |
|
|
|
|
|
| LONG
TERM LOANS |
|
7 |
363,934 |
330,830 |
|
| DEFERRED
LIABILITIES |
|
|
|
| Taxation |
|
8 |
49,670 |
46,470 |
|
| Gratuity |
|
9 |
21,176 |
17,579 |
|
|
|
------------ |
------------ |
|
|
70,846 |
64,049 |
|
| CURRENT
LIABILITIES AND PROVISIONS |
|
|
|
| Short
term running finance |
|
10 |
1,537,221 |
1,545,177 |
|
| Short
term loans |
|
11 |
210,217 |
-- |
|
| Current
maturity of redeemable capital |
|
|
|
|
| and
long term loans |
|
12 |
199,789 |
207,373 |
|
| Creditors
and accrued liabilities |
|
13 |
463,829 |
334,028 |
|
| Other
liabilities |
|
14 |
3,236 |
1,289 |
|
| Provision
for taxation - net |
|
18,494 |
-- |
|
| Proposed
dividend |
|
238,513 |
71,565 |
|
|
------------ |
------------ |
|
|
2,671,299 |
2,159,432 |
|
| CONTINGENT
LIABILITIES AND COMMITMENTS |
15 |
|
|
|
------------ |
------------ |
|
|
4,428,752 |
3,429,422 |
|
|
========== |
========== |
|
| TANGIBLE
FIXED ASSETS |
|
| Operating
assets |
|
16 |
1,732,613 |
1,321,453 |
|
| Capital
work-in-progress |
|
17 |
82,971 |
33,627 |
|
|
------------ |
------------ |
|
|
1,815,584 |
1,355,080 |
|
|
|
|
| LONG
TERM INVESTMENT |
|
-- |
50 |
|
| LONG
TERM LOANS AND ADVANCES |
|
18 |
7,975 |
2,895 |
|
| LONG
TERM DEPOSITS |
|
|
3,201 |
2,303 |
|
| CURRENT
ASSETS |
|
|
|
| Stores
and spares |
|
19 |
106,167 |
97,456 |
|
| Stock-in-trade |
|
20 |
759,339 |
616,727 |
|
| Trade debts |
|
21 |
959,909 |
807,023 |
|
| Loans,
advances, prepayments and |
|
|
|
| other
receivables |
|
22 |
131,294 |
115,919 |
|
| Short
term investment |
|
23 |
537,821 |
430,264 |
|
| Cash
and bank balances |
|
24 |
107,462 |
1,705 |
|
|
------------ |
------------ |
|
|
2,601,992 |
2,069,094 |
|
|
------------ |
------------ |
|
|
4,428,752 |
3,429,422 |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
IQBAL alimohammed |
|
JAWAID IQBAL |
|
|
Chief Executive |
|
Director |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 2000 |
|
|
|
|
|
2000 |
1999 |
|
|
Note |
Rs. 000s |
|
| Sales |
|
25 |
4,516,744 |
4,362,814 |
|
| Cost of sales |
|
26 |
3,383,219 |
3,719,909 |
|
|
|
----------- |
----------- |
|
| Gross profit |
|
|
1,133,525 |
642,905 |
|
|
|
|
|
| Administrative
expenses |
|
27 |
146,046 |
124,179 |
|
| Selling
expenses |
|
28 |
128,024 |
88,131 |
|
|
|
----------- |
----------- |
|
|
|
274,070 |
212,310 |
|
|
|
----------- |
----------- |
|
| Operating
profit |
|
|
859,455 |
430,595 |
|
| Other income |
|
29 |
4,942 |
4,939 |
|
|
|
----------- |
----------- |
|
|
|
864,397 |
435,534 |
|
|
|
|
|
| Financial
charges |
|
30 |
202,560 |
243,158 |
|
| Workers'
profit participation fund |
|
|
33,092 |
9,619 |
|
| Workers'
welfare fund |
|
|
2,944 |
991 |
|
|
|
----------- |
----------- |
|
|
|
238,596 |
253,768 |
|
|
|
----------- |
----------- |
|
| Profit
for the year before taxation |
|
|
625,801 |
181,766 |
|
| Provision
for taxation |
|
31 |
67,650 |
27,000 |
|
|
|
----------- |
----------- |
|
| Profit
for the year after taxation |
|
|
558,151 |
154,766 |
|
| Unappropriated
profit brought forward |
|
32 |
89,657 |
2,119 |
|
|
|
----------- |
----------- |
|
| Profit
available for appropriation |
|
|
647,808 |
156,885 |
|
| Appropriations |
|
|
|
|
| Proposed
dividend @ Rs. 7/- |
|
|
238,513 |
71,565 |
|
| (1999:
Rs. 2.50) per share |
|
|
|
|
| General
reserve |
|
400,000 |
80,000 |
|
|
----------- |
----------- |
|
|
638,513 |
151,565 |
|
|
----------- |
----------- |
|
| Unappropriated
profit carried forward |
|
9,295 |
5,320 |
|
|
========== |
========== |
|
| Earnings
per share (Rs.) |
|
33 |
16.38 |
5.41 |
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
|
IQBAL alimohammed |
|
JAWAID IQBAL |
|
|
Chief Executive |
|
Director |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
Rs. 000s |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| Profit
before taxation |
|
625,801 |
181,766 |
|
| Adjustments
for: |
|
| Depreciation |
|
179,515 |
150,511 |
|
| Staff gratuity |
|
6,255 |
5,178 |
|
| Financial
charges |
|
258,672 |
251,777 |
|
| Provision
for slow moving/obsolete stores and spares |
|
4,647 |
-- |
|
| Provision
for doubtful debts |
|
5,634 |
-- |
|
| Long
term investment written off |
|
50 |
-- |
|
| Profit
on sales of operating assets |
|
(1,891) |
(2,204) |
|
| Interest
income |
|
(56,112) |
(8,619) |
|
|
----------- |
----------- |
|
|
1,022,571 |
578,409 |
|
|
| Changes
in working capital: |
|
| (Increase)/Decrease
in current assets |
|
| Stores
and spares |
|
9,871 |
(17,489) |
|
| Stock-in-trade |
|
123,268 |
218,292 |
|
| Trade debts |
|
(63,654) |
(233,676) |
|
| Loans,
advances, prepayments and other receivables |
|
(5,716) |
1,742 |
|
|
----------- |
----------- |
|
|
63,769 |
(31,131) |
|
| Increase
in current liabilities |
|
|
|
| Creditors,
accrued and other liabilities |
|
124,318 |
59,472 |
|
|
----------- |
----------- |
|
|
188,087 |
28,341 |
|
|
----------- |
----------- |
|
| Cash
generated from operations |
|
1,210,658 |
606,750 |
|
| Payments for: |
|
|
|
| Staff gratuity |
|
(5,934) |
(3,249) |
|
| Financial
charges |
|
(284,314) |
(264,797) |
|
| Income tax |
|
(29,126) |
(35,886) |
|
| Long
term loans and advances |
|
(5,080) |
(674) |
|
|
----------- |
----------- |
|
| Net
cash generated from operating activities |
|
886,204 |
302,144 |
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
| Capital
expenditure |
|
(372,002) |
(198,858) |
|
| Sale
proceeds of operating assets |
|
18,616 |
5,960 |
|
| Interest
received |
|
49,558 |
7,704 |
|
| Long
term deposits |
|
(436) |
91,257 |
|
|
----------- |
----------- |
|
| Net
cash used in investing activities |
|
(304,264) |
(93,937) |
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
| Short
term loans |
|
125,629 |
-- |
|
| Redemption
of redeemable capital |
|
(31,190) |
(27,734) |
|
| Long
term borrowings |
|
200,000 |
57,240 |
|
| Long
term borrowings - repayments |
|
(280,551) |
(280,855) |
|
| Dividends
paid |
|
(75,367) |
(50,095) |
|
|
----------- |
----------- |
|
| Net
cash used in financing activities |
|
(61,479) |
(301,444) |
|
|
----------- |
----------- |
|
| Net
increase/(decrease) in cash and cash equivalents |
|
520,461 |
(93,237) |
|
| Cash
and cash equivalents - at the beginning of the year |
|
(1,113,208) |
(1,019,971) |
|
| -
transferred on merger |
|
(299,191) |
-- |
|
|
|
----------- |
----------- |
|
|
(1,412,399) |
(1,019,971 ) |
|
|
----------- |
----------- |
|
| Cash
and cash equivalents - at the end of the year |
|
(891,938) |
(1,113,208) |
|
|
========== |
========== |
|
| CASH
AND CASH EQUIVALENTS |
|
| Cash
and cash equivalents include: |
|
| Short
term investment |
|
537,821 |
430,264 |
|
| Cash
and bank balances |
|
107,462 |
1,705 |
|
| Short
term running finance |
|
(1,537,221) |
(1,545,177) |
|
|
----------- |
----------- |
|
|
(891,938) |
(1,113,208) |
|
|
========== |
========== |
|
|
|
|
IQBAL alimohammed |
|
JAWAID IQBAL |
|
|
Chief Executive |
|
Director |
|
|
|
|
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 2000 |
|
|
|
Rs. 000s |
|
|
Shares |
Revenue |
Share |
Accumulated |
Total |
|
|
Capital |
Reserve |
Premium |
Profit |
|
|
| Balance
as at September 30, 1998 |
286,260 |
340,000 |
131,086 |
2,119 |
759,465 |
|
| Profit
for the year |
|
-- |
-- |
