| Jubilee Spinning & Weaving Mills Limited |
|
|
|
|
|
|
|
|
|
|
| Annual
Report 2000 |
|
|
|
| Contents |
|
|
| Board
of Directors |
|
| Notice
of Meeting |
|
| Director's
Report to the Shareholders |
|
| Chief
Executive Review |
|
| Auditor's
Report to the Members |
|
| Balance Sheet |
|
| Profit and Loss Account |
|
| Cash Flow Statement |
|
| Statement
of changes in Equity |
|
| Notes to the Accounts |
|
| Pattern of Shareholdings |
|
|
|
| Board
of Directors |
|
|
| Muhammad
Arshad |
|
| Salman Raft |
|
| Shams
Rafi (Chief Executive) |
|
| Shaukat
Shaft |
|
| Umer Shaft |
|
| Usman Shaft |
|
| Zahid Bashir |
|
|
| Company
Secretary |
|
| Masood
A. Sheikh |
|
|
| Auditors |
|
| Rahim
Jan & Company |
|
| Chartered
Accountants |
|
|
| Internal
Auditors |
|
| M.
Yousuf Adil Saleem & Co. |
|
| Chartered
Accountants |
|
|
| Legal
Advisers |
|
| A.
K. Brohi & Co. |
|
| Ghani
Law Associates |
|
|
| Bankers |
|
| Faysal
Bank Limited |
|
| Habib
Bank Limited |
|
| Muslim
Commercial Bank Limited |
|
| National
Bank of Pakistan |
|
| Union
Bank Limited |
|
|
| Registered
Office |
|
| 40-A,
Off, Zafar Ali Road, Gulberg V, Lahore-Pakistan. |
|
|
| Mills |
|
| B-28,
S.I.T.E., Karachi-Pakistan. |
|
|
| Head Office |
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| 3rd
Floor, Finlay House, |
|
| I.
I. Chundrigar Road, Karachi-Pakistan. |
|
|
|
| Notice
of Annual General Meeting |
|
|
| Notice
is hereby given that the Twenty Seventh Annual General Meeting of the
shareholders |
|
| of
Jubilee Spinning & Weaving Mills Limited will be held at Registered
Office, 40-A, Off. Zafar |
|
| All
Road, Gulberg V, Lahore, on Saturday the March 31, 2001 at 12:00 Noon to
transact the |
|
| following
business:- |
|
|
| 1.
To receive and adopt Audited Accounts of the Company for the year ended
September |
|
| 30,
2000 together with the Directors and Auditor's Reports thereon. |
|
|
| 2.
To appoint Auditors and fix their remuneration. |
|
|
| Participation
in the Annual General Meeting: |
|
| A
member eligible to attend and vote at this meeting may appoint another member
as his/her |
|
| proxy
to attend and vote instead of him/her. Proxies in order to be effective must
be received |
|
| by
the company at the Registered Office not later than 48 hours before the time
for holding |
|
| the meeting. |
|
|
| Book
Closure: |
|
| The
Share Transfer Books of the Company will remain closed from March 24, 2001 to
March |
|
| 30,
2001 (both days inclusive). |
|
|
|
On behalf of the Board |
|
|
|
|
|
Masood A. Sheikh |
|
|
Company Secretary |
|
| Registered
Office: |
|
| 40-A,
Off. Zafar All Road, |
|
| Gulberg
V, Lahore. |
|
| Phone
No: 92-42-111-245 245 |
|
| Fax
No: 92-42-111-222-245 |
|
|
| Dated:
March 03, 2001 |
|
|
|
| Director's
Report to the Shareholders |
|
|
| Your
Directors are pleased to present the 27th Annual Report alongwith detailed
notes for the |
|
| year
ended September 30, 2000. |
|
|
| Your
company's trading for the year resulted in pre-tax profit of Rs.3,955,484
after meeting |
|
| all
operational, administrative, financial and other expenses. |
|
|
| Break
up of the same can be read under Profit & Loss Account 2000. |
|
|
|
2000 |
|
|
Rupees |
|
|
| Profit
before taxation |
|
3,955,484 |
|
| Provision
for taxation |
|
(3,510,000) |
|
|
------------ |
|
|
445,484 |
|
| Accumulated
loss brought forward |
|
(290,334,767) |
|
|
------------ |
|
| Accumulated
loss carried forward |
|
(289,889,283) |
|
|
========== |
|
| The
present Auditors Messrs. Rahim Jan & Co., retire and eligible, offer
themselves for |
|
| re-appointment. |
|
|
| Information
required under section 236 (2) of the Companies Ordinance 1984 follows as |
|
| "Review"
on the next page. |
|
|
| Management
express their appreciation to all categories of employees for their deligent |
|
| performance,
dis-play of harmony and their continued efforts to improve the efficiency all |
|
| round. |
|
|
| For
and on behalf of the Board |
|
|
| Shams Rafi |
|
| Chief
Executive |
|
|
| March
03, 2001 |
|
| Karachi. |
|
|
|
| Chief
Executive Review |
|
|
| I
am pleased to present herewith the 27th Annual Report of the Company for the
year ending |
|
| September
30, 2000. |
|
|
| By
the grace of God, the Company has recorded its highest ever sales and almost
all costs, |
|
| including
financial expenses, have shown a significant decline. A good cotton crop,
lower |
|
| mark-up
rates, better marketing and prudent management have resulted in a pre-tax
profit |
|
| after
two years of substantial losses. |
|
|
| Last
season's bumper cotton crop has helped the textile industry work itself out
of a prolonged |
|
| recession.
Stable yarn rates and reasonable raw cotton prices were the main factors |
|
| contributing
to the return to profitability in this sector. |
|
|
| The
Company's sales increased by 21% to Rs. 676.04 million and exports were 24.7%
of total |
|
| sales,
an increase of 340% over the previous year. Gross profit was Rs. 58.58
million as |
|
| compared
to last year's gross loss of Rs. 106.58 million, a positive swing of more
than Rs. |
|
| 165
million. Administrative expenses have been reduced by Rs. 4.64 million or 26%
compared |
|
| to
the previous year. Operating profit was Rs. 34.67 million as compared to last
year's |
|
| operating
loss of Rs. 128.73 million. Financial expenses were also reduced by 10.1%
from the |
|
| previous
year. Pre-tax profit increased by over Rs. 20! million to Rs. 3.9 million. |
|
|
| The
size of the cotton crop for the 2000-2001 season is expected to be the same
as the |
|
| previous
season while consumption has shown a substantial increase. Yarn prices are
also |
|
| depressed
as compared to last year. Therefore, the industry will not be able to sustain
the |
|
| higher
earnings shown in 1999-2000. |
|
|
| The
management is continuing its aggressive cost reduction plan and is constantly
working |
|
| on
developing a more profitable product mix. Efforts are also being made to
improve the |
|
| quality
marketing of its various products. A long overdue BMR implementation and some |
|
| financial
restructuring, coupled with the efforts mentioned above, should have a
positive |
|
| impact on the
Company's long-term profitability |
|
|
| The
cooperation and help extended to us by the financial institution in this
difficult period for |
|
| the
Company is greatly appreciated. We would also like to thank our shareholders
and |
|
| customers
for their continued support. |
|
|
| For
and on behalf of the Board. |
|
|
| Shams Rafi |
|
| Chief
Executive |
|
|
| March
03, 2001 |
|
| Karachi. |
|
|
|
| Auditor's
Report to the Members |
|
|
| We
have audited the annexed balance sheet of Jubilee Spinning & Weaving
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 explanation which,
to the |
|
| best
of our knowledge and belief, were necessary for the purpose of our audit. |
|
|
| It
is 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 requirement 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 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, 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 no Zakat deductible at source under the Zakat and Ushr
Ordinance, |
|
| 1980. |
|
|
| Karachi: |
|
Rahim Jan & Company |
|
| Dated:
March 03, 2001 |
|
(Chartered Accountants) |
|
|
|
| Balance
Sheet As At September 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
Note |
Rupees |
Rupees |
|
| Capital
& Liabilities |
|
| Share
Capital |
|
| Authorised |
|
| 20,000,000
Ordinary Shares of Rs. 10/- each |
|
200,000,000 |
200,000,000 |
|
|
========== |
========== |
|
| Issued,
Subscribed & Paid-up |
|
3 |
70,168,670 |
70,168,670 |
|
| Reserves
& Surplus |
|
|
|
| Reserves |
|
4 |
51,012,000 |
51,012,000 |
|
| Accumulated
loss |
|
(289,889,283) |
290,334,767) |
|
|
------------ |
------------ |
|
|
(238,877,283) |
(239,322,767) |
|
|
------------ |
------------ |
|
| Share
Holders' Equity |
|
(168,708,613) |
(169,154,097) |
|
|
| Surplus
on Revaluation of |
|
| Fixed Assets |
|
5 |
224,525,548 |
70,000,000 |
|
|
|
|
|
| Loan
from Directors & Associates |
|
6 |
116,441,968 |
90,502,968 |
|
|
|
|
|
| Liabilities
Against Assets |
|
|
|
| Acquired
under Finance Lease |
|
7 |
30,262,837 |
50,212,628 |
|
|
|
|
|
| Deferred
Liabilities |
|
| Gratuity |
|
8 |
28,841,921 |
36,642,402 |
|
| Taxation |
|
9 |
12,976,944 |
12,976,944 |
|
|
|
|
----------- |
----------- |
|
|
41,818,865 |
49,619,346 |
|
| Current
Liabilities & Provisions |
|
| Current
portion of long term liabilities |
|
10 |
24,127,974 |
16,406,805 |
|
| Short-term
running finance-Secured |
|
11 |
253,925,627 |
278,227,504 |
|
| Creditors,
accrued and other liabilities |
|
12 |
285,556,207 |
262,242,925 |
|
| Provision
for taxation |
|
13 |
3,510,000 |
2,973,401 |
|
|
----------- |
----------- |
|
|
567,119,808 |
559,850,635 |
|
|
| Contingencies &
Commitments |
|
14 |
|
|
----------- |
----------- |
|
|
811,460,413 |
651,031,480 |
|
|
========== |
========== |
|
| Property
& Assets |
|
| Fixed
Assets - Tangible |
|
| At
Cost-Less Depreciation |
|
15 |
402,875,770 |
263,522,090 |
|
|
| Long
Term Deposits |
|
9,946,519 |
9,791,981 |
|
|
| Long
Term Investments - At Cost |
|
16 |
35,252,993 |
35,298,118 |
|
|
|
|
| Long
Term Loans |
|
17 |
3,504,062 |
2,469,285 |
|
| Current
Assets |
|
|
|
| Stores
and spares |
|
18 |
15,727,293 |
14,246,318 |
|
| Stock-in-trade |
|
19 |
140,194,439 |
150,137,348 |
|
| Trade
debtors |
|
20 |
43,419,559 |
29,555,909 |
|
| Bills
receivable |
|
21 |
1,528,396 |
1,528,396 |
|
| Loans
and advances |
|
22 |
16,971,835 |
36,899,673 |
|
| Deposits,
prepayments and other receivable |
|
23 |
88,180,037 |
60,218,987 |
|
| Short-term
investments |
|
24 |
51,675,701 |
43,935,360 |
|
| Cash
and bank balances |
|
25 |
2,183,809 |
3,428,015 |
|
|
------------ |
------------ |
|
|
359,881,069 |
339,950,006 |
|
|
------------ |
------------ |
|
|
811,460,413 |
651,031,480 |
|
|
========== |
========== |
|
| NOTE:
The annexed notes form an integral part of these accounts. |
|
|
|
Shams Rafi |
|
Shaukat Shafi |
|
| Karachi:
March 03, 2001 |
|
Chief Executive |
|
Director |
|
|
|
| Profit
and Loss Account |
|
| For
the year ended September 30, 2000 |
|
|
|
|
|
2000 |
1999 |
|
|
Note |
Rupees |
Rupees |
|
| Sales(Net) |
|
26 |
676,042,745 |
558,898,050 |
|
| Cost of Sales |
|
27 |
(617,465,025) |
(665,477,918) |
|
|
------------ |
------------ |
|
| Gross
Profit / (Loss) |
|
58,577,720 |
(106,579,868) |
|
|
| Administrative
expenses |
|
28 |
(13,150,411) |
(17,789,853) |
|
| Selling
and Distribution expenses |
|
29 |
(10,756,536) |
(4,356,376) |
|
|
------------ |
------------ |
|
|
(23,906,947) |
(22,146,229) |
|
|
------------ |
------------ |
|
| Operating
Profit / (Loss) |
|
34,670,773 |
(128,726,097) |
|
| Reversal
of gratuity |
|
7,511,923 |
0 |
|
|
------------ |
------------ |
|
|
42,182,696 |
(128,726,097) |
|
| Other
Income |
|
30 |
20,685,977 |
7,291,399 |
|
|
|
------------ |
------------ |
|
|
62,868,673 |
(121,434,698) |
|
| Financial
expenses |
|
31 |
(65,214,040) |
(72,529,157) |
|
| Non-operating
expenses |
|
32 |
(4,158,486) |
(10,000) |
|
| Provision
for diminution in the value of short-term investments |
10,459,337 |
(3,183,565) |
|
|
------------ |
------------ |
|
|
58,913,189 |
1,757,227,221 |
|
|
------------ |
------------ |
|
| Profit
/ (Loss) Before Taxation |
|
3,955,484 |
(197,157,420) |
|
|
|
| Provision
for Taxation |
|
33 |
(3,510,000) |
(2,973,401) |
|
|
|
|
------------ |
------------ |
|
|
| Profit
/ (Loss) After Taxation |
|
445,484 |
(200,130,821 ) |
|
| Accumulated
(Loss) brought forward |
|
(290,334,767) |
(90,203,946) |
|
|
------------ |
------------ |
|
| Accumulated
Loss Carried to |
|
(289,889,283) |
(290,334,767) |
|
| Balance
Sheet |
|
========== |
========== |
|
|
| Note:
The annexed notes form an integral part of these accounts. |
|
|
|
Shams Rafi |
|
Shaukat Shafi |
|
|
Chief Executive |
|
Director |
|
|
|
|
| Cash
Flow Statement |
|
| For
the year ended September 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
Rupees |
Rupees |
|
|
| A-
Cash From Operating Activities |
|
| Profit
/ (Loss) before taxation |
|
3,955,484 |
(197,157,420) |
|
| Adjustment
for |
|
|
|
| Depreciation |
|
20,701,936 |
22,457,479 |
|
| Provision
for gratuity |
|
(3,325,759) |
5,993,796 |
|
| Provision
for diminution in value of short-term investments |
|
(10,459,337) |
3,183,565 |
|
| (Gain)
on disposal of fixed assets |
|
(1,465,758) |
(134,837) |
|
| (Gain)
on sale of investments |
|
(4,630,120) |
5,620 |
|
| Dividend
income |
|
(13,393,642) |
(3,423,225) |
|
| Financial
Charges |
|
65,214,040 |
72,529,157 |
|
|
------------ |
------------ |
|
|
52,641,380 |
100,611,555 |
|
|
------------ |
------------ |
|
| Operating
profit / (loss) before working capital change |
|
56,596,844 |
(96,545,865) |
|
|
| Changes
in working capital |
|
| (Increase)/Decrease
in Current Assets |
|
| Stores
and spares |
|
(1,480,975) |
4,973,428 |
|
| Stock-in
-trade |
|
9,942,909 |
55,655,205 |
|
| Trade
debtors |
|
(13,863,650) |
3,201,070 |
|
| Bills
receivable |
|
0 |
4,793,523 |
|
| Loans
and advances |
|
19,927,838 |
(28,437,217) |
|
| Deposits,
prepayments and other receivables |
|
(28,365,985) |
21,526,074 |
|
|
| Increase/(Decrease)
in Current Liabilities |
|
| Creditors
accrued and other liabilities |
|
30,197,092 |
101,244,963 |
|
|
------------ |
------------ |
|
|
16,357,229 |
162,957,046 |
|
|
------------ |
------------ |
|
| Cash
generated from operations |
|
72,954,073 |
66,411,181 |
|
|
------------ |
------------ |
|
| B-
Cash From Investing Activities |
|
| Proceeds
of fixed assets sold |
|
2,599,992 |
396,576 |
|
| Proceeds
of Investment Sold |
|
7,394,241 |
23,693,520 |
|
| Dividend
income |
|
13,393,642 |
3,423,225 |
|
| Fixed
Capital Expenditure |
|
(6,664,302) |
(30,702,632) |
|
| Long
term deposit |
|
(154,538) |
(828,806) |
|
| long
term loans |
|
(1,034,777) |
21,599 |
|
|
------------ |
------------ |
|
| Net
Cash used in Investing Activities |
|
15,534,258 |
(3,996,518) |
|
|
| C-
Cash From Financing Activities |
|
| Loan
from directors and Associates |
|
25,939,000 |
90,502,968 |
|
| Payment
for gratuity |
|
(4,474,722) |
(5,098,109) |
|
| Taxes paid |
|
(2,568,466) |
(889,692) |
|
| Financial
charges paid |
|
(72,097,850) |
(58,533,323) |
|
| Payment
of lease liability |
|
(12,228,622) |
(5,336,489) |
|
| Increase
in short term running finance |
|
(24,301,877) |
(81,570,041 ) |
|
|
------------ |
------------ |
|
| Net
Cash Out Flow due to Financing Activities |
|
(89,732,537) |
(60,924,686) |
|
|
------------ |
------------ |
|
| Net
Increase/(decrease) in cash and cash equivalents (A+B+C) |
(1,244,206) |
1,489,977 |
|
|
| Cash
and cash equivalents at beginning of the year |
|
3,428,015 |
1,938,038 |
|
|
------------ |
------------ |
|
| Cash
and cash equivalents at end of the year |
|
2,183,809 |
3,428,015 |
|
|
========== |
========== |
|
|
|
Shams Rafi |
|
Shaukat Shafi |
|
|
Chief Executive |
|
Director |
|
|
|
|
| Statement
of changes in Equity |
|
| For
the year ended September 30, 2000 |
|
|
|
|
Share |
Reserve |
Accumulated |
Total |
|
|
Capital |
|
Loss |
|
|
|
Rs. |
Rs. |
Rs. |
Rs. |
|
| Balance
as at September 30, 1998 |
70,168,670 |
51,012,000 |
(90,203,946) |
30,976,724 |
|
| Loss
for the year ended September 30, 1999 |
|
(200,130,821) |
(200,130,821) |
|
|
----------- |
----------- |
----------- |
----------- |
|
| Balance
as at September 30, 1999 |
70,168,670 |
51,012,000 |
(290,334,767) |
(169,154,097) |
|
|
| Profit
for the year ended September 30, 2000 |
|
445,484 |
445,484 |
|
|
----------- |
----------- |
----------- |
----------- |
|
| Balance as at September 30,
2000 |
70,168,670 |
51,012,000 |
(289,889,283) |
(168,708,613) |
|
|
========== |
========== |
========== |
========== |
|
|
|
Shams Rafi |
|
Shaukat Shafi |
|
|
Chief Executive |
|
Director |
|
|
|
|
| Notes
to the Accounts |
|
| For
the year ended September 30, 2000 |
|
|
|
| The
following notes form integral part of the accounts presented herewith: |
|
