| Indus Dyeing & Manufacturing Company
Limited |
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| Annual
Report 2000 |
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| Company
Information |
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| CHAIRMAN |
|
Mian Mohammed Ahmed |
|
|
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| CHIEF
EXECUTIVE |
Mr. Shahzad Ahmed |
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| DIRECTORS |
|
Mian Riaz Ahmed |
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|
Mr. Naveed Ahmed |
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|
Mr. Imran Ahmed |
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|
Mr. Kashif Riaz |
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|
Mr. Nadeem Ahmed |
|
|
Mr. Shafqat Masood |
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|
Mr. Irfan Ahmed |
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|
Mrs. Farzana Munaf
(Nominee NIT) |
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| CHIEF
ACCOUNTANT |
Mr. Arif Abdul Majeed |
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| COMPANY
SECRETARY |
Mr. Rizwan Ahmed |
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| AUDITORS |
|
M/s. Hyder Bhimji &
Co. |
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|
Chartered Accountants |
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| BANKERS |
|
Habib Bank Limited |
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|
Industrial Development
Bank of Pakistan |
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|
Habib Bank (A.G. Zurich) |
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|
Soneri Bank Limited |
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|
Al Faysal Investment Bank
Limited |
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|
Orix Investment Bank
Pakistan Limited |
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| REGISTERED
OFFICE |
Karachi Dock Labour Board
Building, |
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|
58, West Wharf Road,
Karachi. |
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| MILLS |
1. |
P/1 S.I.T.E. Hyderabad |
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2. |
Bagga Sher, Muzaffergarh,
District Multan |
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| TELEFAX |
1. |
231 3814 |
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|
2. |
231 0760 |
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| TELEPHONE |
|
111 - 404 - 404 |
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|
231 0751 (7 Lines) |
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| e-mail |
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info@indus-group.com |
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| Notice
of the Annual General Meeting |
|
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| Notice
is hereby given that the 43rd Annual General Meeting of Indus Dyeing &
Mfg Co. |
|
| Limited
will be held at Plot No. 3 & 7, Sector No. 25, Korangi Industrial Area,
Karachi on |
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| Monday,
April 30, 2001 at 4:00 p.m. to transact the following business: |
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| ORDINARY
BUSINESS |
|
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| 1.
To confirm the minutes of last Annual General Meeting held on March 30, 2000. |
|
|
| 2.
To receive, consider and adopt the audited accounts together with the
Directors' |
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| and
Auditors' report for the year ended September 30, 2000. |
|
|
| 3.
To appoint auditors and fix their remuneration. The present auditors Messrs
Hyder |
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| Bhimji
& Co., Chartered Accountants, retire and being eligible offer themselves
for |
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| re-appointment. |
|
|
| 4.
To approve final Cash Dividend as recommended by the Board of Directors. |
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| SPECIAL
BUSINESS |
|
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| 5.
To approve issue of Right Shares in the ratio of 18 shares offered for every
100 shares |
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| at
a premium of Rs. 3/- per share. |
|
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| 6.
To enhance the remuneration of the Chairman, Chief Executive and two
Directors |
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| namely
Mian Riaz Ahmed and Mr. Imran Ahmed. |
|
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| 7.
To transact any other business with the permission of the chair. |
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|
BY ORDER OF THE BOARD |
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Sd/- |
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| Karachi |
|
RIZWAN AHMAD |
|
| April
09, 2001 |
|
COMPANY SECRETARY |
|
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| NOTES: |
|
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| 1.
Share Transfer Books of the Company will remain closed from April 24, 2001 to |
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| April
30, 2001 (both days inclusive). |
|
|
| 2.
Any member of the Company entitled to attend and vote, may appoint another |
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| member
as his/her proxy to attend and vote instead of him/her. |
|
|
| 3.
Proxy must be received at the Registered Office of the Company not less than
48 |
|
| hours
before the time of holding of the meeting. |
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|
| 4.
Statement under Section 160 of the Companies Ordinance, 1984 is being sent to |
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| the
shareholders alongwith this notice. |
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|
| Statement
under section 160 1 (b) of the Companies Ordinance, 1984 |
|
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| Due
to increase in the cost of living during the year the enhancement in the
remuneration |
|
| from
Rs. 50,000/- per month to Rs. 100,000/- per month of Mian Muhammad Ahmed. |
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| Chairman,
Mr. Shahzad Ahmed, Chief Executive, Mr. Riaz Ahmed and Mr. Imran Ahmed, |
|
| Directors
of the Company is inevitable. The said remuneration is in addition to the |
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| Company
maintained car, medical expenses, residential utilities recreational and
telephone |
|
| expenses.
Approval on the matter is sought by passing the following resolution. |
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|
| "Resolved
that, a sum of Rs. 100,000/- per month each be and is hereby approved as a |
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| remuneration
of Mian Muhammad Ahmed, Chairman, Mr. Shahzad Ahmed, Chief |
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| Executive,
Mr. Riaz Ahmed and Mr. Imran Ahmed Directors of the Company with effect |
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| from
April 2001 addition to the company maintained car, medical expenses
residential |
|
| utilities,
recreational and telephone expenses." |
|
|
|
| Directors'
Report |
|
|
| Your
Directors are pleased to present the audited accounts for the year ended
September |
|
| 30,
2000. During the year under review, your Company earned a profit of Rs.
179,495 |
|
| (M).
The financial results of the Company remain satisfactory, Brief summary of |
|
| financial
results of the year under review are as under: |
|
|
|
Rs. '000 |
|
|
|
|
| Profit
for the year before taxation |
|
179,495 |
|
| Provision
for taxation |
|
(44,900) |
|
| Profit
after taxation |
|
134,595 |
|
| Unappropriated
profit brought forward |
|
48,356 |
|
| Profit
available for appropriation |
|
182,948 |
|
| Interim
Cash Dividend paid |
|
(12,133) |
|
| Final
Cash Dividend Proposed |
|
(55,610) |
|
| Transfer
to General Reserve |
|
(85,111) |
|
| Unappropriated
profit Carried forward |
|
30,094 |
|
|
| The
Earning per share is Rs. 6.65 (Par value Rs. 5/= per share.) |
|
|
| PRESENT
YEAR ASSESSMENT |
|
| The
present year results are satisfactory and the profits increased as compare to
previous |
|
| year.
Due to better profit your directors are pleased to inform you that apart from
12% |
|
| interim
Dividend they are proposing 55% annual dividend, which in aggregate comes to |
|
| 67%
for the year. |
|
|
| As
your company is investing significant amounts on BMR, therefore requirement
of |
|
| additional
amounts have become inevitable. Therefore, the management has decided to |
|
| enhance
the capital base by way of issuing 18% Right Shares at a premium of Rs. 3/-
per |
|
| share. |
|
|
| The
auditors in their qualified on the matter of gratuity referred in para 7.2 of
the |
|
| annexed
notes, which indicates deviation from International Accounting Standard 19. |
|
| According
to this IAS the company is required to provide retirement benefits to be
valued |
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| by
an actuary rather than providing by the liability method. To comply with the
said IAS |
|
| we
are engaging a professional actuary to assess our liability under the
actuarial valuation |
|
| method
before the end of current financial year. |
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| FUTURE
PROSPECTS |
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| Likewise
the year under review, we hope your Company will earn handsome profits in |
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| the
next financial year by fetching better prices of our products, better
production, labour |
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| cost
savings etc. |
|
|
| We
are continuing our BMR Program and hope that your company will be able to
sell it's |
|
| 80%
production in export market after completion of BMR. |
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|
| PRODUCTION |
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| The
Production for the year under review was satisfactory both at Hyderabad and |
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| Muzaffargarh
units. |
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|
| LABOUR/MANAGEMENT |
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| The
Labour/Management relations remained cordial throughout the year. Your |
|
| Company
is providing various facilities and amenities to the workers. |
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| PATTERN
OF SHAREHOLDING |
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| The
Pattern of Shareholding is annexed. |
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| THANKS
AND APPRECIATION |
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| Your
Directors feel pleasure in expressing the highly dedicated services rendered
by the |
|
| employees
of the Company and wish to convey their thanks to the Company's bankers |
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| and
financial institutions for their co-operation and support extended to the
Company. |
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|
FOR AND ON BEHALF OF THE BOARD |
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| KARACHI |
|
SHAHZAD AHMED |
|
| April
07, 2001 |
|
CHIEF EXECUTIVE |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed Balance Sheet of INDUS DYEING
& MANUFACTURING |
|
| CO.
LTD. 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
period 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 accounts 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 period was for the purpose of the |
|
| Company's
business; and |
|
|
| (iii)
the business conducted, investment made and the expenditure incurred during |
|
| the
period 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 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
as more fully explained in Note 7.2 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 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. |
|
|
|
HYDER BHIMJI & CO. |
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| Karachi:
the 9th, April 2001. |
|
CHARTERED ACCOUNTANTS |
|
|
|
| Balance
Sheet as at September 30, 2000 |
|
|
|
Notes |
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
| Capital
& Reserves |
|
| Authorised
capital |
|
120,000,000 |
120,000,000 |
|
| 24,000,000
Ordinary Shares of Rs. 5/= each |
|
========== |
========== |
|
|
| Issued,
Subscribed & Paid-up Capital |
3 |
101,110,000 |
101,110,000 |
|
| General Reserve |
|
4 |
150,000,000 |
64,889,000 |
|
| Un-appropriated
Profit |
|
|
30,093,382 |
48,352,510 |
|
|
------------------ |
------------------ |
|
|
281,203,382 |
214,351,510 |
|
|
| Long
Term Loans |
|
5 |
282,247,267 |
228,806,425 |
|
| Liabilities
against Assets subject to Finance Lease |
6 |
37,347,855 |
43,095,028 |
|
| Deferred
Liabilities |
|
7 |
66,127,618 |
28,968,221 |
|
|
|
|
| Current
Liabilities |
|
| Short
Term Running Finance (utilized under- |
8 |
159,483,999 |
556,032,785 |
|
| mark
- up arrangements) |
|
|
|
|
| Current
Portion of Long Term Loans |
9 |
91,419,130 |
2,773,498 |
|
| Current
Portion of Liabilities against Assets |
10 |
34,407,441 |
27,781,722 |
|
| subject
to Finance Lease |
|
|
|
|
| Creditors,
Accrued & Other Liabilities |
11 |
128,802,012 |
116,751,245 |
|
| Dividend
Proposed |
|
|
55,610,500 |
10,111,000 |
|
|
|
------------------ |
------------------ |
|
|
|
469,723,082 |
713,450,250 |
|
| Contingencies
and Commitments |
|
12 |
-- |
-- |
|
|
|
------------------ |
------------------ |
|
| Total Rupees |
|
1,136,649,204 |
1,228,671,434 |
|
|
========== |
========== |
|
|
|
|
| Tangible
Fixed Assets |
|
|
|
| Operating
Fixed Assets |
|
13 |
663,623,815 |
483,569,651 |
|
| Capital
Work in Progress |
|
13-A |
39,582,874 |
-- |
|
|
|
------------------ |
------------------ |
|
|
|
703,206,689 |
483,569,651 |
|
|
| Long
Term Deposits |
|
14 |
9,953,902 |
6,742,596 |
|
|
| Current Assets |
|
|
|
| Stores
and Spare |
|
15 |
19,808,240 |
17,130,180 |
|
| Stock-in-Trade |
|
16 |
207,543,823 |
330,498,741 |
|
| Trade Debts |
|
17 |
72,962,644 |
174,250,987 |
|
| Loans
and Advances |
|
18 |
65,891,460 |
57,420,293 |
|
| Deposits
& Prepayments |
|
19 |
12,734,757 |
64,295,419 |
|
| Other
Receivable |
|
20 |
13,754,388 |
10,799,276 |
|
| Short
Term Investments |
|
21 |
20,009,700 |
20,009,700 |
|
| Cash
& Bank Balances |
|
22 |
10,783,601 |
63,954,591 |
|
|
------------------ |
------------------ |
|
|
423,488,613 |
738,359,187 |
|
|
------------------ |
------------------ |
|
| Total Rupees |
|
1,136,649,204 |
1,228,671,434 |
|
|
========== |
========== |
|
|
| Note:
The annexed notes form an integral part of these accounts. |
|
|
|
|
Shahzad Ahmed |
|
Naveed Ahmed |
|
| Karachi:
the 9th, April, 2001 |
|
Chief Executive |
|
Director |
|
|
|
| Profit
& Loss Account for the year ended 30th, September, 2000 |
|
|
|
Notes |
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
|
|
|
| Sales (Net) |
|
23 |
2,184,662,610 |
1,981,718,378 |
|
| Cost of Sales |
|
24 |
(1,748,536,336) |
(1,709,572,682) |
|
|
|
------------------ |
------------------ |
|
| Gross Profit |
|
436,126,274 |
272,145,696 |
|
|
| Operating
Expenses |
|
| Administrative |
|
25 |
(31,393,918) |
(27,173,049) |
|
| Selling
& Distribution |
|
26 |
(102,495,165) |
(86,912,719) |
|
|
|
------------------ |
------------------ |
|
|
(133,889,083) |
(114,085,768) |
|
|
------------------ |
------------------ |
|
| Operating
Profit |
|
302,237,191 |
158,059,928 |
|
|
------------------ |
------------------ |
|
| Profit
of Oil Section |
|
27 |
340,974 |
226,405 |
|
| Profit
of Ice factory |
|
28 |
546,621 |
513,005 |
|
| Profit
of Hong Kong Office |
|
29 |
210,573 |
67,556 |
|
| Other Income |
|
30 |
4,889,833 |
802,755 |
|
|
|
------------------ |
------------------ |
|
|
|
5,988,001 |
1,609,721 |
|
|
|
------------------ |
------------------ |
|
| Other Charges |
|
|
308,225,192 |
159,669,649 |
|
|
|
------------------ |
------------------ |
|
| Financial
Charges |
|
31 |
(119,247,920) |
(123,870,192) |
|
| Workers
Profit Participation Fund |
|
|
(9,482,052) |
(1,732,600) |
|
|
|
------------------ |
------------------ |
|
|
|
(128,729,972) |
(125,602,792) |
|
|
|
------------------ |
------------------ |
|
| Net
Profit before Taxation |
|
|
179,495,220 |
34,066,857 |
|
|
|
|
| Provision
for Taxation |
|
| - Current |
|
(12,399,648) |
(12,500,000) |
|
| -
Deferred |
|
(22,500,000) |
(1,500,000) |
|
| - Prior |
|
(10,000,000) |
(1,000,000) |
|
|
------------------ |
------------------ |
|
|
(44,899,648) |
(15,000,000) |
|
|
------------------ |
------------------ |
|
| Profit
after Taxation |
|
134,595,572 |
19,066,857 |
|
| Un
- appropriated Profit brought Forward |
|
48,352,510 |
39,396,653 |
|
|
------------------ |
------------------ |
|
| Profit
available for Appropriation |
|
182,948,082 |
58,463,510 |
|
| Interim
Cash Dividend paid 12% |
|
(12,133,200) |
-- |
|
| Dividend
Proposed 55% (1999-10%) |
|
(55,610,500) |
(10,111,000) |
|
| Transferred
to General Reserve |
|
(85,111,000) |
-- |
|
|
------------------ |
------------------ |
|
| Un-appropriated
Profit Carried Forward |
|
30,093,382 |
48,352,510 |
|
|
|
========== |
========== |
|
| Earning
per Share |
|
32 |
6.65 |
0.94 |
|
|
========== |
========== |
|
|
| Note:
The annexed notes form an integral part of these accounts. |
|
|
|
|
Shahzad Ahmed |
|
Naveed Ahmed |
|
| Karachi:
the 9th, April, 2001 |
|
Chief Executive |
|
Director |
|
|
|
| Statement
of Changes in Financial Position |
|
| (Cash
Flow Statement) |
|
| For
the year ended 30th September, 2000 |
|
|
|
Notes |
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
|
| Cash
Flow from Operating Activities |
|
|
| Cash
generated from Operations |
|
A |
630,208,328 |
222,112,039 |
|
| Financial
charges paid |
|
(112,623,361) |
(139,077,709) |
|
| Taxes paid |
|
(11,575,080) |
(29,990,793) |
|
| Increase/(Decrease)
in Deferred Liabilities for Excise |
|
(4,080,115) |
-- |
|
| Long
term deposits & pre-payments |
|
(3,211,306) |
182,580 |
|
|
------------------ |
------------------ |
|
| Net
cash in flow from operating activities |
|
498,718,466 |
53,226,117 |
|
|
========== |
========== |
|
|
| Cash
Flow from Investing Activities |
|
| Fixed
Capital Expenditure |
|
(242,823,481) |
(95,901,394) |
|
| Capital
Work-in-progress |
|
(39,582,874) |
30,910,349 |
|
| Sale
proceed of Fixed Assets |
|
6,915,400 |
267,000 |
|
|
------------------ |
------------------ |
|
| Net
Cash in flow from Investing Activities |
|
(275,490,955) |
(64,724,045) |
|
|
========== |
========== |
|
|
| Cash
Flow from Financing Activities |
|
| Long
Term borrowings less Prepayments |
|
142,086,474 |
(49,441,021) |
|
| Payment
of Dividend |
|
(22,814,735) |
(5,282,340) |
|
| (Repayment)/borrowing
of liabilities against Assets |
|
|
|
| subject
to Finance Lease |
|
878,546 |
33,959,022 |
|
|
------------------ |
------------------ |
|
| Net
cash in flow/(out flow) from Financing Activities |
120,150,285 |
(20,764,339) |
|
|
|
========== |
========== |
|
|
|
|
| Net
(decrease)/increase in Cash & Cash Equivalent |
|
343,377,796 |
(32,262,267) |
|
| Cash
& Cash Equivalent at the beginning of the year |
(492,078,194) |
(459,815,927) |
|
|
|
------------------ |
------------------ |
|
| Cash
& Cash Equivalent at the end of the year |
B |
(148,700,398) |
(492,078,194) |
|
|
========== |
========== |
|
|
| (A)
Cash Generated from Operation |
|
| Profit
before Taxation |
|
179,495,220 |
34,066,857 |
|
| Adjustment
for Depreciation |
|
57,303,117 |
45,961,248 |
|
| Gratuity (Net) |
|
8,739,512 |
1,500,000 |
|
| Profit
on sale of Fixed Assets |
|
(1,449,199) |
(52,438) |
|
| Financial
charges |
|
119,247,920 |
123,870,192 |
|
| Working
Capital changes |
|
266,871,758 |
16,766,180 |
|
|
------------------ |
------------------ |
|
|
630,208,328 |
222,112,039 |
|
|
| Working
Capital Changes |
|
| (Increase)/decrease
in Current Assets |
|
| Stores
and Spare |
|
(2,678,060) |
7,160,994 |
|
| Stock-in-Trade |
|
122,954,918 |
(123,678,569) |
|
| Trade Debts |
|
101,288,343 |
131,255,322 |
|
| Loans
& Advances |
|
(14,494,794) |
49,287,638 |
|
| Deposits
& Prepayments |
|
51,560,662 |
(63,101,900) |
|
| Other
Receivables |
|
2,243,947 |
2,696,105 |
|
|
------------------ |
------------------ |
|
|
260,875,016 |
3,619,590 |
|
| (Decrease)/increase
in Current Liabilities |
|
|
|
| Creditors,
Accrued & Other Liabilities (Net) |
|
5,996,742 |
13,146,590 |
|
|
------------------ |
------------------ |
|
|
266,871,758 |
16,766,180 |
|
|
========== |
========== |
|
|
| (B)
Cash & Cash Equivalents |
|
| Cash
& Cash Equivalents comprise of the following |
|
| items
as included in the balance sheet |
|
| Cash
& Bank balances |
|
10,783,601 |
63,954,591 |
|
| Short
Term Running Finance utilized under mark-up arrangements |
(159,483,999) |
(556,032,785) |
|
|
------------------ |
------------------ |
|
|
(148,700,398) |
(492,078,194) |
|
|
========== |
========== |
|
|
|
|
Shahzad Ahmed |
|
Naveed Ahmed |
|
| Karachi:
the 9th, April, 2001 |
|
Chief Executive |
|
Director |
|
|
|
| Statement
of Changes in Equity |
|
| for
the year ended September 30, 2000 |
|
|
|
Share capital |
|
