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Ibrahim Textile Mills Limited
Annual Report 2000
Contents
Company Information
Notice of Meeting
Directors' Report
Pattern of Shareholding
Auditors' Report
Balance Sheet
Profit and Loss Account
Statement of Changes in Equity
Cash Flow Statement
Notes to the Accounts
Company Information
Board of Directors
Sheikh Mukhtar Ahmed
(Chairman)
Sheikh Mohammad Yaseen
(Chief Executive)
Mohammad Naeem Mukhtar
Mohammad Waseem Mukhtar
Asim Yaseen
Ghazala Naeem
Bina Sheikh
Secretary
Anwar-ul-Haque
B.Com. F.C.A.,
Auditors & Tax Consultants
F. R. Merchant & Co.,
Chartered Accountants,
Karachi, Pakistan.
Information Technology Consultants
KPMG Peat Marwick Associates (Pvt) Limited
Karachi, Pakistan.
Bankers
ABN AMRO Bank N.V
Allied Bank of Pakistan Limited			Registered Office &
Habib Bank Limited			Shares Department
			Ibrahim Centre,
			GK-7/59, Bagh-e-Zehra Street,
			Kharadar,
			Karachi, Pakistan.
			Head Office
			Ibrahim Centre,
			15, Club Road,
			Faisalabad, Pakistan.
			Lahore Office
			Ibrahim Centre,
			l-A, Ahmed Block,
			New Garden Town,
			Lahore, Pakistan.
			Mills
			40-Kilometre,
			Faisalabad - Sheikhupura Road,
			Faisalabad, Pakistan.
Notice of Meeting
Notice is hereby given that the 26th Annual General Meeting of the shareholders of the company will be held
on March 30, 2001 at 2:30 p.m. at F-352, S.I.T.E. Karachi to transact the following business:-
1. To confirm the minutes of the preceding meeting of the shareholders of the company.
2. To consider, approve and adopt the Annual Audited Accounts of the Company for the year ending
September 30, 2000 together with Directors' and Auditors' Report thereon.
3. To consider, approve issue of stock dividend @ 25% as recommended by the board of Directors.
4. To appoint Auditors for the next year 2000-2001 and to fix their remuneration. The present auditors
M/S. F. R. Merchant & Co., Chartered Accountants, Karachi being eligible for appointment, offer themselves
for re-appointment.
5. To transact any other business with the permission of the chair.
					By order of the Board
Dated: February 15, 2001					Anwar-ul-Haque
Karachi.					Company Secretary
Notes:
i) The share transfer books of the Company shall remain closed from 21-03-2001 to 30-03-2001
(both days inclusive) to determine the names of members entitled to stock dividend and to attend the
meeting. Transfers received in order at the Shares Registration Office of the company at the close of
business on 20-03-2001 will be treated in time.
ii) A member entitled to attend and vote at the meeting may appoint another member as his/her proxy to
attend and vote on his/her behalf.
iii) The proxies, in order to be effective, must be received by the Company at least 48 hours before the
meeting at the Registered Office of the Company at GK-7/59, Bagh-e-Zehra Street, Kharadar, Karachi.
Directors' Reports to the Shareholders
Your Directors are pleased to present before you the 26th Annual Audited Report of the company
for the year ended September 30, 2000.
OPERATING RESULTS
Your company has produced 11,518 tons of blended yarns during the year under review as compared
to 9,009 tons produced during the previous year thus resulting in an increase of 28%. The production
of blended yarns mainly consist of Polyester viscose yarns ranging from 24/s to 66/s attaining an average
count of 35.23. Your company' undertook BMR/expansion of 20 ring spinning frames each consisting of
1,080 spindles imported from Marzolli, Italy. New ring spinning frames were commissioned during
September 1999, and have mainly contributed towards the increased productivity of the Company during
the year under review. The quantitative details of yarns manufactured are as follows:
Types of Yarns				Production
				2000	1999
				Kgs.	Kgs.
Polyester Viscose Yarn				11,232,905	7,690,607
Acrylic Yarn				164,339	955,735
Acrylic Polyester Yarn				--	18,824
Polyester Acrylic Yarn				635	241,134
Polyester Yarn				119,705	--
Mixed Yarn				--	103,058
				------------------	------------------
				11,517,584	9,009,358
				------------------	------------------
FINANCIAL RESULTS
The financial results of your company have improved significantly as compared to previous year. The revenue
generated from sales of yarn has increased to Rupees 1,162 million as against Rupees 785 million during the
previous year thus showing an increase of 48%. The company earned a gross profit of
Rupees 160 million during the current year as against gross profit of Rupees103 million for the
previous year. The profit after tax increased to Rupees 53 million during the current financial year as against
Rupees 21 million during the previous financial year thus showing an increase of 146%.
A summary of financial results are reproduced hereunder:
				2000	1999
				Rupees	Rupees
Gross Profit				160,192,957	102,795,466
Operating Expenses				47,756,164	45,429,667
				------------------	------------------
Operating Profit				112,436,793	57,365,799
Other Income				28,524,168	7,063,914
				------------------	------------------
				140,960,961	64,429,713
Financial & Other Charges				60,106,736	34,421,616
				------------------	------------------
Profit before Taxation				80,854,225	30,008,097
Provision for Taxation				28,015,989	8,558,147
				------------------	------------------
Profit after Taxation				52,838,236	21,449,950
Unappropriated Profit Brought Forward				2,693	12,743
				------------------	------------------
Profit available for appropriation				52,840,929	21,462,693
				==========	==========
STOCK DIVIDEND
Your Directors are pleased to recommend issue of stock dividend @ 25% against profit for the year ended
September 30, 2000.
APPROPRIATION
				2000	2000
				Rupees	Rupees
Transfer to capital reserve for issue of stock dividend @ 25% (1999- NIL)				34,000,000	--
Cash dividend @ NIL (1999 - @ 15%)				--	20,400,000
Transfer to general reserve				18,815,000	1,060,000
				------------------	------------------
				52,815,000	21,460,000
Unappropriated Profit Carried Forward				25,929	2,693
				------------------	------------------
Earning per share				3.89	1.58
				==========	==========
GENERAL OVERVIEW
The Directors of your company are of the view that present improvement in demand/prices of blended yarn will
continue to persist and hope that the company will earn more profit in the years to come.
AUDITORS
The present auditors M/s F. R. Merchant & Co., Chartered Accountants retire and being eligible,
consented for reappointment for the next financial year 2000-2001.
PATTERN OF SHAREHOLDING
Pattern of shareholding of the company is annexed.
ACKNOWLEDGEMENT
The management wishes to place on record its appreciation for the hard work and positive efforts made by the
executives and employees. The management would also like to thank its valued Customers, Bankers, Financial
Institutions and Shareholders for their cooperation and support and also hope to get the same in future.
					On behalf of the Board
Dated: February 15, 2001					SHEIKH MOHAMMAD YASEEN
Karachi					Chief Executive
Pattern of Shareholding as at September 30, 2000
No. of	Having Shares		Shares	Percentage
Shareholders	From	To	Held
208	1	100	20,800	0.153
242	101	500	65,800	0.484
71	501	1000	67,400	0.496
116	1001	5000	397,200	2.921
21	5001	10000	151,500	1.114
5	10001	15000	57,800	0.425
6	15001	20000	113,500	0.835
4	20001	25000	98,500	0.724
2	25001	30000	60,000	0.441
2	30001	35000	61,000	0.449
1	35001	40000	40,000	0.294
1	40001	45000	45,000	0.331
1	60001	65000	64,600	0.475
1	80001	85000	85,000	0.625
1	95001	100000	197,000	1.449
5	110001	115000	571,500	4.202
1	140001	145000	142,500	1.048
5	190001	195000	971,500	7.143
1	195001	200000	200,000	1.471
1	310001	315000	314,200	2.310
4	385001	390000	1,554,400	11.429
2	395001	400000	800,000	5.882
1	430001	435000	432,500	3.180
1	445001	450000	446,800	3.285
1	655001	660000	657,100	4.832
1	745001	750000	746,600	5.490
1	775001	780000	777,100	5.714
1	1315001	1320000	1,316,000	9.676
1	1495001	1500000	1,496,000	11.000
1	1645001	1650000	1,648,700	12.123
------------------			------------------	------------------
709			13,600,000	100.000
==========			==========	==========
Categories of Shareholders
			Number of	Number of
Particulars			Shareholders	Shares held	Percentage
Individuals			671	10,550,900	77.580
Financial Institutions			9	2,303,900	16.940
Joint Stock Companies			19	119,700	0.880
Investment Companies			5	436,500	3.211
Modaraba Companies			4	188,000	1.382
Others			1	1,000	0.007
			------------------	------------------	------------------
			709	13,600,000	100.000
			==========	==========	==========
Auditors' Report to the Members
We have audited the annexed Balance Sheet of IBRAHIM TEXTILE MILLS LIMITED, as at
September 30, 2000 and the related Profit and Loss Account, Statement of Changes in Equity 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.
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 managements, 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, Statement of Changes in Equity and Cash Flow Statement together
with the notes forming part 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 September 30, 2000
and the profit, changes in equity and its cash flows 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.
Karachi.					(F.R. MERCHANT & CO.,)
February 15, 2001					Chartered Accountants
Balance Sheet as at September 30, 2000
				2000	1999
			Note	Rupees	Rupees
CAPITAL AND RESERVES
Authorized
20,000,000 ordinary shares of Rs. 10/- each				200,000,000	200,000,000
				==========	==========
Issued, subscribed and paid-up			3	136,000,000	136,000,000
Capital reserve			4	34,000,000	--
General reserve			5	69,900,000	51,085,000
Unappropriated profit				25,929	2,693
				------------------	------------------
				239,925,929	187,087,693
LONG TERM LOANS			6	175,000,000	214,969,268
LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE			7	82,470,761	117,471,536
DEFERRED LIABILITY
Provision for gratuity			8	22,629,468	18,485,047
CURRENT LIABILITIES
Short term borrowings			9	131,891,506	156,781,658
Current portion of long term liabilities			10	49,353,247	21,311,325
Creditors, provisions and accrued liabilities			11	48,322,512	67,150,121
Provision for taxation				28,015,989	8,558,147
Proposed dividend				--	20,400,000
				------------------	------------------
				257,583,254	274,201,251
CONTINGENT LIABILITIES /COMMITMENTS			12	--	--
				------------------	------------------
				777,609,412	812,214,795
				==========	==========
The annexed notes from1 to 34 form an integral part of these accounts.
					Chief Executive
FIXED CAPITAL EXPENDITURE
Operating assets			13	500,079,472	528,657,424
CAPITAL WORK IN PROGRESS			14	30,704,349	--
LONG TERM INVESTMENTS			15	5,000,000	5,000,000
CURRENT ASSETS
Stores, spares and loose tools			16	13,256,212	17,432,713
Stocks in trade			17	137,322,015	165,177,915
Trade debtors			18	1,554,391	--
Advances, deposits and other receivables			19	65,930,872	77,489,743
Cash & bank balances			20	23,762,101	18,457,000
				------------------	------------------
				241,825,591	278,557,371
				------------------	------------------
				777,609,412	812,214,795
				==========	==========
					Director
Profit and Loss Account
for the year ended September 30, 2000
				2000	1999
			Note	Rupees	Rupees
SALES			21	1,161,558,719	784,864,047
COST OF SALES			22	1,001,365,762	682,068,581
				------------------	------------------
GROSS PROFIT				160,192,957	102,795,466
OPERATING EXPENSES
Administrative			23	41,564,570	38,955,531
Selling			24	6,191,594	6,474,136
				------------------	------------------
				47,756,164	45,429,667
				------------------	------------------
OPERATING PROFIT				112,436,793	57,365,799
				------------------	------------------
MISCELLANEOUS REVENUE			25	3,304,769	3,476,921
PROFIT/(LOSS) ON TRADING			26	25,219,399	3,586,993
				------------------	------------------
				28,524,168	7,063,914
				------------------	------------------
				140,960,961	64,429,713
OTHER CHARGES
Financial			27	55,807,826	32,836,949
Zakat				43,424	5,293
Workers' profit participation fund				4,255,486	1,579,374
				------------------	------------------
				60,106,736	34,421,616
				------------------	------------------
PROFIT / (LOSS) FOR THE YEAR BEFORE TAXATION				80,854,225	30,008,097
PROVISION FOR TAXATION - Current Year				28,015,989	8,558,147
				------------------	------------------
PROFIT / (LOSS) FOR THE YEAR AFTER TAXATION				52,838,236	21,449,950
UNAPPROPRIATED PROFIT BROUGHT FORWARD				2,693	12,743
				------------------	------------------
SURPLUS AVAILABLE FOR APPROPRIATION				52,840,929	21,462,693
APPROPRIATION
Transfer to capital reserve for issue of stock dividend @ 25% (1999- Nil)				34,000,000	--
Cash dividend @ Nil (1999 @ 15%)				--	20,400,000
Transfer to general reserve				18,815,000	1,060,000
				------------------