| Ideal Energy Limited |
|
|
|
|
|
|
|
| Annual
Report 2000 |
|
|
| CONTENTS |
|
|
| COMPANY
INFORMATION |
|
| NOTICE
OF MEETING |
|
| DIRECTORS
REPORT |
|
| AUDITORS
REPORT |
|
| BALANCE
SHEET |
|
| PROFIT
AND LOSS ACCOUNT |
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| CASH
FLOW STATEMENT |
|
| NOTES
TO THE ACCOUNTS |
|
| PATTERN
OF SHAREHOLDING |
|
|
|
| LIST
OF DIRECTORS |
|
|
| CHAIRMAN: |
|
| NISAR
AHMED SHEIKH |
|
|
|
| CHIEF
EXECUTIVE: |
|
| MUHAMMAD
ARSHAD SHEIKH |
|
|
| DIRECTORS: |
|
| MUHAMMAD
SAEED |
|
| MUHAMMAD
ANWAR SAJJAD |
|
| AMJAD
SAEED |
|
| SHAHZAD
AHMAD |
|
| NAUREEN
SHAHZAD |
|
|
| SECRETARY: |
|
| JAVED
ABBAS NAQVI |
|
|
| AUDITORS: |
|
| M.
YOUSAF ADIL SALEEM & CO., |
|
| CHARTERED
ACCOUNTANTS |
|
|
| BANKERS: |
|
| FAYSAL
BANK LIMITED. |
|
| HABIB
BANK LIMITED |
|
|
| REGISTERED
OFFICE AND SHARES DEPARTMENT: |
|
| 404,
405 4TH FLOOR |
|
| BUSINESS
CENTRE |
|
| DUNOLLY
ROAD, |
|
| KARACHI
- PAKISTAN. |
|
|
| PLANT: |
|
| SHEIKHUPURA
ROAD, |
|
| TEHSIL
JARANWALA, |
|
| DISTRICT
FAISALABAD. |
|
|
|
|
| NOTICE
OF MEETING |
|
|
| Notice
is hereby given that the 6th Annual General Meeting of
IDEAL ENERGY LIMITED will |
|
| be
held at 404-405 4th Floor Business Centre, Dunolly road, Karachi on Saturday
December 23, |
|
| 2000
at 11:00 a.m. to transact the following business: |
|
|
| 1.
To confirm the minutes of the last Annual General Meeting held at December
29, 1999. |
|
|
|
|
| 2.
To receive, consider and adopt the audited accounts for the year ended June
30, 2000 |
|
| together
with the Auditor's and Director's report thereon. |
|
|
|
|
| 3.
To approve the payment of cash dividend @ 25.00% (Rs. 2.50 per share) in the
ordinary |
|
| share
capital of the Company as recommended by the board of Directors. |
|
|
|
|
| 4.
To appoint auditors for the current year and fix their remuneration. The
present auditors |
|
| M/s
M. Yousuf Adil Saleem & co; Chartered Accountants, being eligible, have |
|
| offered
themselves for re-appointment. |
|
|
| 5.
To transact any other ordinary business of tile company with the permission
of tile chair. |
|
|
|
|
BY ORDER OF THE BOARD |
|
|
|
|
|
|
| KARACHI |
|
|
JAVED ABBAS NAQVI |
|
| DATED
22-11-2000 |
|
COMPANY SECRETARY |
|
|
|
| NOTES: |
|
|
| 1.
The share transfer book of the company remain closed from 16th December 2000
to 23rd |
|
| December
2000 (both days inclusive). Transfers received in order at the registered
office |
|
| of
the company at the close of business hours on 15th December 2000 will be
treated in |
|
| time
for tile purpose of payment of dividend to transferees. |
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|
|
|
| 2.
A member entitle to attend and vote this meeting may appoint another members
as proxy. |
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|
|
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| 3.
Proxies in order to be effective must be received at the Registered office of
the company |
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| not
less than 48 hours before the time of meetings and must be duly stamped and
signed. |
|
|
| 4.
Shareholders who have deposited their shares into Central Depository Company
are |
|
| being
advised to bring their National Identity Card alongwith CDC account number at
the |
|
| meeting venue. |
|
|
|
|
|
|
| DIRECTOR'S
REPORT TO THE MEMBERS |
|
|
| In
the name of Allah the Most Merciful & Most Benevolent. |
|
|
| The
Director's have pleasure in submitting their Annual report together with the
Company's |
|
| financial
Statement for the year ended June30, 2000 and the Auditor's report there on. |
|
|
| Operating
results during 01-07-1999 to 30-06-2000 are given bellow. |
|
|
|
|
|
|
|
| Operating profit |
|
|
|
56,450,295 |
|
| Loss
on Disposal of Fixed Assets |
|
|
(10,180) |
|
|
|
|
|
------------------ |
|
|
|
|
56,440,115 |
|
|
| Less:
Financial Charges |
|
|
11,325,721 |
|
| Other Charges |
|
|
2,890,017 |
|
|
------------------ |
|
|
|
|
14,215,738 |
|
| Profit
for the year |
|
42,224,377 |
|
| Unappropriated
profit B/F |
|
33,856,232 |
|
|
|
|
------------------ |
|
| Profit
available for appropriations |
|
76,080,609 |
|
| Proposed
cash dividend @ 25% |
|
20,000,000 |
|
|
|
|
------------------ |
|
| Unappropriated
profit C/F |
|
56,080,609 |
|
|
|
|
========== |
|
|
| Due
to improvement in the efficiency the profits for the year has increased from
34.823 million to |
|
| Rs.
42.224 million i.e and increase of 21.25%. |
|
|
| The
price of Furnace oil on July 01, 1999 was Rs. 6070.5 per M.T as Compared to
Rs. 9680 per |
|
| M.
Ton on June 30, 2000. Despite rapid increase in the oil prices your company
has earned Net |
|
| profit
of Rs. 42.224 million during the year. |
|
|
| The
Board of Directors are pleased to propose cash divided @ 25% for the year
ended June 30, |
|
| 2000
i.e 47.37% of net profit. |
|
|
| Pattern
of Share Holding |
|
| A
statement showing the pattern of shareholding as at June 30, 2000 is
attached. |
|
|
| In
the end I would like to thanks the workers, staff and officers of your
company for their hard |
|
| work,
zeal and dedication. I am confident that inshallah with their wholehearted
support and |
|
| improvement
on productivity better results will be obtained if the prices of furnace oil
stable during |
|
| the current year. |
|
|
|
|
|
|
NISAR AHMED SHEIKH |
|
|
|
CHAIRMAN |
|
|
|
| AUDITORS
REPORT TO MEMBERS |
|
|
| We
have audited tile annexed balance sheet of Ideal Energy Limited as at June
30, 2000 |
|
| and
the related profit and loss account, statement of changes in equity and cash
flow statement |
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| 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 statement 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 |
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| 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, statement of |
|
| changes
in equity and cash flow statement together with the notes forming pan |
|
| thereof
conform with approved accounting standards 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, changes in equity anti its |
|
| cash
flow, for the year then ended; and |
|
|
|
| (d)
in our opinion Zakat deductible at source under the Zakat and Ushr Ordinance, |
|
| 1980
was deducted by the company and deposited in the central Zakat Fund |
|
| established
under section 7 of that ordinance. |
|
|
| Date: 22-11-2000 |
|
|
|
M. YOUSAF ADIL SALEEM & CO. |
|
| Faisalabad. |
|
|
|
CHARTERED ACCOUNTANTS |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 2000 |
|
|
|
|
|
|
2000 |
1999 |
|
|
Note |
Rupees |
Rupees |
|
|
| SHARE
CAPITAL AND RESERVES |
|
|
| Authorised
capital |
|
| 10.000.000
Ordinary |
|
| shares
of Rs. 10/= each |
|
|
100,000,000 |
100,000.00 |
|
|
========== |
========== |
|
| Issued,
subscribed and |
|
| Paid up capital |
|
| 8.000.000
ordinary shares |
|
| of
Rs. 10/= each fully |
|
| paid in cash |
|
|
80,000,000 |
80,000,000 |
|
| Capital
reserve-share |
|
|
| Premium |
|
|
80,000,000 |
80,000,000 |
|
| Revenue
reserve |
|
3 |
71,080,609 |
48,856,232 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
231,080,609 |
208,856,232 |
|
|
|
|
|
|
| LIABILITIES
AGAINST ASSETS |
|
| SUBJECT
TO FINANCE LEASE |
|
4 |
-- |
38,252,621 |
|
|
|
|
|
|
| DEFERRED
LIABILITY |
|
|
|
|
| Staff
retirement gratuity |
|
|
2,091,813 |
855,330 |
|
|
|
|
| CURRENT
LIABILITIES |
|
| Short
term bank borrowings |
|
5 |
20,375,813 |
5,325,000 |
|
| Current
portion of |
|
|
|
| Lease liabilities |
|
|
38,252,621 |
33,496,011 |
|
| Creditors,
accrued and |
|
|
|
| Other liabilities |
|
6 |
9,128,123 |
9,516,370 |
|
| Dividends |
|
7 |
20,012,762 |
20,003,762 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
87,769,319 |
68,341,143 |
|
|
|
|
------------------ |
------------------ |
|
|
|
320,941,741 |
316,305,326 |
|
|
|
|
========== |
========== |
|
|
|
|
| OPERATING
ASSETS |
|
8 |
216,321,475 |
236,421,489 |
|
|
|
|
|
| LONG
TERM DEPOSITS AND |
|
|
|
| DEFERRED
COSTS |
|
9 |
13,000,000 |
13,649,407 |
|
|
|
|
|
| CURRENT
ASSETS |
|
| Stores,
spares and |
|
| Loose tools |
|
10 |
19,991,723 |
9,150,592 |
|
| Stocks
of oil and |
|
|
|
| Lubricants |
|
11 |
13,287,570 |
14,094,292 |
|
| Debtors |
|
12 |
53,273,416 |
36,115,441 |
|
| Advances,
deposits |
|
|
|
| Prepayments
and other |
|
|
|
| Receivables |
|
13 |
4,874,267 |
5,339,959 |
|
| Cash
and bank balances |
|
14 |
193,290 |
1,534,146 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
91,620,266 |
66,234,430 |
|
|
|
|
------------------ |
------------------ |
|
|
320,941,741 |
316,305,326 |
|
|
========== |
========== |
|
| The
annexed notes from 1 to 27 form an integral part of these accounts. |
|
|
|
Muhammad Arshad |
|
Nisar Ahmad Sheikh |
|
|
|
Chief Executive |
|
Director |
|
|
|
|
| PROFIT
& LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
|
|
|
2000 |
1999 |
|
|
|
Note |
Rupees |
Rupees |
|
|
| Sates
of electric energy |
|
15 |
264,794,868 |
254,047,927 |
|
| Cost
of Generation |
|
16 |
202,524,035 |
196,455,006 |
|
|
|
|
------------------ |
------------------ |
|
| Gross Profit |
|
|
62,270,833 |
57,592,921 |
|
| Operating
Expenses |
|
17 |
5,820,538 |
3,860,173 |
|
|
|
|
------------------ |
------------------ |
|
| Operating Profit |
|
|
56,450,295 |
53,732,748 |
|
|
| Loss
of disposal of |
|
| fixed assets |
|
|
10,180 |
1,080 |
|
|
|
|
------------------ |
------------------ |
|
| Other Charges |
|
|
56,440,115 |
53,731,668 |
|
|
|
|
------------------ |
------------------ |
|
| Financial |
|
18 |
11,325,721 |
16,405,123 |
|
| Amortisation
of deferred |
|
|
| costs |
|
|
649,407 |
649,405 |
|
| workers' profit |
|
| participation
fund |
|
2,240,610 |
1,853,684 |
|
|
|
------------------ |
------------------ |
|
|
|
14,215,738 |
18,908,212 |
|
|
|
------------------ |
------------------ |
|
| Net
profit for the year |
|
42,224,377 |
34,823,456 |
|
| Unappropriated
profit brought |
|
|
| Forward |
|
|
33,856,232 |
19,032,776 |
|
|
------------------ |
------------------ |
|
| Profit
available for |
|
| Appropriations |
|
|
76,080,609 |
53,856,232 |
|
|
| Appropriation |
|
| Proposed
cash dividend @ 25% |
|
| (1999: 25%) |
|
20,000,000 |
20,000,000 |
|
|
------------------ |
------------------ |
|
| Unappropriated
profit |
|
| Carried forward |
|
|
56,080,609 |
33,856,232 |
|
|
|
|
========== |
========== |
|
| Earnings
per share - Basic |
|
21 |
5.28 |
4.35 |
|
|
|
|
========== |
========== |
|
| The
annexed notes from 1 to 27 form |
|
| An
integral part of these accounts. |
|
|
|
MUHAMMAD ARSHAD |
|
|
NISAR AHMAD SHEIKH |
|
|
CHIEF EXECUTIVE |
|
|
DIRECTOR |
|
|
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| FOR
THE YEAR ENDED JUNE 30, 2000. |
|
|
|
|
Share Capital |
Capital Reserve |
Revenue
Reserves |
Total |
|
|
|
|
|
|
|
|
Share premium |
General Reserve |
Unappropriated |
|
|
|
|
|
Profit |
|
|
|
|
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
|
|
|
|
| Balance
as at June 30, 1998 |
80,000,000 |
80,000,000 |
15,000,000 |
19,032,776 |
194,032,776 |
|
| Profit
for the year ended June 30, 1999 |
-- |
-- |
-- |
34,823,456 |
14,823,456 |
|
| Dividend |
|
-- |
-- |
-- |
(20,000,000) |
(20,000,000) |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Balance
as at June 30, 1999 |
80,000,000 |
80,000,000 |
15,000,000 |
33,856,232 |
208,856,232 |
|
|
|
========== |
========== |
========== |
========== |
========== |
|
|
|
|
|
|
| Profit
for the year ended June 30, 2000 |
-- |
-- |
-- |
42,224,377 |
42,224,377 |
|
| Dividend |
|
-- |
-- |
-- |
(20,000,000) |
(20,000,000) |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Balance
as at June 30, 2000 |
80,000,000 |
80,000,000 |
15,000,000 |
56,080,609 |
231,080,609 |
|
|
|
========== |
========== |
========== |
========== |
========== |
|
|
| The
annexed notes from 1 to 27 form |
|
| an
integral part of these accounts. |
|
|
|
MUHAMMAD ARSHAD |
|
|
NISAR AHMAD SHEIKH |
|
|
CHIEF EXECUTIVE |
|
|
DIRECTOR |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
|
|
|
2000 |
1999 |
|
|
|
Note |
Rupees |
Rupees |
|
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| Cash
generated from |
|
|
| Operations |
|
22 |
52,170,249 |
65,723,683 |
|
| Financial
charges paid |
|
(10,982,857) |
(20,038,137) |
|
|
|
|
| Net cash from |
|
|
------------------ |
------------------ |
|
| Operating
activities |
|
|
41,187,392 |
45,685,546 |
|
|
========== |
========== |
|
|
| b)
CASH FLOW FROM INVESTING ACTIVITIES |
|
| Fixed
capital expenditure |
|
(4,371,762) |
(1,422,880) |
|
| Proceeds
from disposal |
|
|
|
| Of fixed assets |
|
|
279,712 |
16,920 |
|
|
|
------------------ |
------------------ |
|
| Net
cash used in investing activities |
|
(4,092,050) |
(1,405,960) |
|
|
------------------ |
------------------ |
|
|
|
| c)
CASH FLOW FROM FINANCING ACTIVITIES |
|
| Repayment of |
|
|
| lease liabilities |
|
(33,496,011) |
(30,294,384) |
|
| Increase
/ (decrease) in |
|
|
|
| Short
term bank borrowings |
|
15,050,813 |
(4,675,000) |
|
| Payment
of dividend |
|
(19,991,000) |
(9,998,688) |
|
|
------------------ |
------------------ |
|
| Net
cash used in |
|
| Financing
activities |
|
(38,436,198) |
(44,968,072) |
|
|
------------------ |
------------------ |
|
| Net
decrease in cash and |
|
| Bank
balances (a+b+c) |
|
(1,340,856) |
(688,486) |
|
| Cash
and bank balances at the |
|
|
|
| beginning
of the years |
|
1,534,146 |
2,222,632 |
|
|
|
|
| Cash
and bank balances at the |
|
------------------ |
------------------ |
|
| End of the year |
|
|
193,290 |
1,534,146 |
|
|
========== |
========== |
|
|
|
MUHAMMAD ARSHAD |
|
NISAR AHMAD SHEIKH |
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
| NOTES
TO THE ACCOUNTS JUNE 30, 2000 |
|
|
| 1.
STATUS AND ACTIVITIES |
|
|
|
| The
company was incorporated on February 20, 1994 under the Companies |
|
| Ordinance,
1984 and quoted at Karachi and Lahore stock exchanges. The main |
|
| object
of the Company is generation and distribution of electricity. The project is |
|
| located
at Tehsil jaranwala, District Faisalabad in the province of Punjab. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
|
| 2.1
Accounting convention and basis of preparation |
|
| These
accounts have been prepared under "historical cost convention" and |
|
| in
accordance with international accounting standards as applicable in |
|
| Pakistan. |
|
|
| 2.2
Staff retirement benefits |
|
| The
Company operates an unfunded gratuity scheme covering all its |
|
| employees.
Provision is made annually to cover the liability under the |
|
| scheme. |
|
|
| 2.3
Operating assets |
|
| Operating
assets except freehold land are stated at cost less accumulated |
|
| depreciation.
Freehold land is stated at cost. |
|
|
| Depreciation
is charged to income applying the reducing balance method |
|
| at
the rates specified in the operating assets note. |
|
|
| Depreciation
on additions during the year is charged to income on the |
|
| basis
of whole year, however no depreciation is charged on deletions |
|
| during the year. |
|
|
| Maintenance
and normal repairs are charged to income as and when |
|
| incurred.
Major renewals and improvements are capitalised. |
|
|
| Gains
and losses on disposal of assets are included in current income. |
|
|
| 2.4
Accounting for leases |
|
| The
Company accounts for the assets acquired under finance lease by |
|
| recording
the assets and related liability. Financial charges are allocated to |
|
| accounting
periods in a manner so as to provide a constant periodic rate of |
|
| charge
on the outstanding liability. Depreciation is charged at the rate |
|
| specified
in the related note, to write off the asset over its estimated useful |
|
| life
in view of certainty of ownership of the asset at the end of lease period. |
|
|
| 2.5
Deferred cots |
|
| These
are amortised over a maximum period of five years from the year of |
|
| deferment. |
|
|
| 2.6
Stores, spares and loose tools |
|
| These
are valued at moving average cost. |
|
|
| 2.7
Stock of oil and lubricants |
|
| These
are valued at lower of cost and net realisable value. Cost has been |
|
| determined
using the average cost method. |
|
|
| 2.8 Debtors |
|
| Known
bad debts are written off and provisions are made for debts |
|
| considered
doubtful. |
|
|
| 2.9
Revenue recognition |
|
| Revenue
is recognised as the services are rendered. |
|
|
|
|
|
2000 |
1999 |
