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Kohat Cement Company Limited
Annual Report 2000
Contents
Company Profile
Notice of Meeting
Directors' Report
Auditor's Report
Balance Sheet
Profit and Loss Account
Cash Flow Statement
Statement of Changes in Equity
Notes to the Accounts
Pattern of Shareholding
Company Profile
Board of Directors
Chairman Mr. Atta Mohammad Sheikh
Chief Executive / Director Mr. Aizaz Mansoor Sheikh
Mr. Nadeem Atta Sheikh
Mr. Nadeem Qadir
Mian Mohammad Riaz
Mrs. Khalida Asghar
Mrs. Khawar Sultana
Company Secretary Mr. Mohammad Hashim Khan
Auditors Viqar A. Khan
Chartered Accountants
Legal Advisor Qazi Waheed-ud-Din
Bankers Allied Bank of Pakistan Limited
Askari Commercial Bank Limited
Habib Bank Limited
Muslim Commercial Bank Limited
National Bank of Pakistan
Prime Commercial Bank Limited
The Bank of Khyber
Union Bank Limited
ABN Amro Bank
Head Office House No. 1, 43 FCC,
Gulberg-IV, Lahore.
Tel: (042) 575 4357-8, 575 2699
Fax: (042) 575 4084
E-mail: kccl@wol.net.pk
Registered Office and Works Kohat Cement Company Limited
Rawalpindi Road, Kohat.
Tel: (0922) 560 401-04
Fax: (0922) 560 405
Share Department AZM Computer Services (Pvt.) Limited
Ferozepur Road,
Mozang Chungi, Lahore.
Tel: (042) 755 2269
Fax: (042) 757 6129
NOTICE OF THE ANNUAL GENERAL MEETING
Notice is hereby given that the 21st' Annual General Meeting of the Shareholders of Kohat Cement Company Limited, will be held
at its Registered Office, Rawalpindi Road, Kohat on Wednesday, December 20, 2000 at 11:00 A.M. to transact the following
business:-
ORDINARY BUSINESS
1. To confirm the minutes of the Last Annual General Meeting held on December 20, 1999.
2. To receive, consider and adopt the Audited Accounts of the Company for the year ended June 30, 2000 and Reports of
  Directors and Auditors thereon.
3. To declare final cash dividend @20% (Rupees 2 per share) recommended by directors in addition to an interim cash dividend
@7.50% (Rupees 0.75 per share) already paid aggregating to 27.50% (Rupees 2.75 per share) for the year ended June 30, 2000.
4. To appoint Auditors for the year 2000-2001 and to fix their remuneration. The present Auditors, Viqar A. Khan, Chartered
Accountants, being eligible offer themselves for re-appointment.
5. To transact any other business with the permission of the Chair.
By Order of the Board
Mohammad Hashim Khan
Kohat, November 23, 2000 Company Secretary
NOTE:
1. The register of the members of the Company will be closed from Thursday, December 14, 2000 to Wednesday,
December 20, 2000 (both days inclusive) and no transfer will be registered during that time. Shares transfer deed received in
order at the share department of the Company, incharge share department, AZM Computer Services (Pvt) Ltd., 24-Ferozepur
Road, Lahore at the close of business on Wednesday, December 13, 2000 will be treated in time for entitlement of payment of
dividend.
2. A member entitled to attend, speak and vote at this meeting may appoint another member as proxy to attend, speak and vote
on his/her behalf. Proxies in Order to be effective must be received at Registered Office of the Company not later than 48
hours before the meeting.
3. Shareholders whose shares are registered in their account / sub-account / group account with Central Depository System
(CDS) are requested to bring N.I.C. along with their account number in CDS and participants 1D number for verification. In
case of appointment of proxy by such account holders the guide lines as contained in SECP's circular of January 26, 2000 to
be followed. The copy of the said circular is being sent to the members along with the Annual Report.
4. Members should quote their folio number in all correspondence with the Company and at the time of attending the Annual
General Meeting.
5. The shareholders are requested to notify the Company if there is any change in their address.
DIRECTORS' REPORT TO THE SHAREHOLDERS
Annual Report and the Audited Accounts for the financial year ended June 30, 2000 are presented on behalf of the Board of
Directors.
OPERATING RESULTS
The net sales revenue for the year under review is Rs. 1,021.861 million as against Rs. 732.825 million in the preceding year. The
profitability of the Company has improved considerably in the current year due to stability in the prices of cement. After accounting
for all charges including depreciation of Rs. 74.528 million (1999: Rs. 81.126 Million) the Company has earned a pre-tax profit of
Rs. 249.179 million compared to Rs. 58.281 million for the last year.
In March 2000, the Board of Directors declared an interim cash dividend @ 7.50% (Rupees 0.75 per share) and have now declared
a final cash dividend @ 20.00% (Rupees 2 per share), making a total cash pay out of 27.50% (Rupees 2.75 per share) to its
shareholders. This way the Board of Directors have maintained their policy of distributing maximum profits amongst the
shareholders. Appropriation of available profit is as under:
(Rupees in Thousand)
2000 1999
Profit/(Loss) before taxation 249,179 58,281
Taxation
Current 25,181 3,664
Prior 932 --
Deferred 72,500 32,000
------------------ ------------------
98,613 35,664
------------------ ------------------
Profit/(Loss) after taxation 150,566 22,617
------------------ ------------------
Un-appropriated profit Brought Forward 2,929 17,179
Transferred from General Reserve -- 7,000
------------------ ------------------
2,929 24,179
Profit available for appropriation 153,495 46,796
APPROPRIATION
Interim Cash Dividend @ 7.50% 16,450 43,867
Final Cash Dividend @ 20.00% 43,867 --
------------------ ------------------
60,317 43,867
------------------ ------------------
Carried Forward to Balance Sheet 93,179 2,929
========== ==========
PRODUCTION AND SALES
Comparative figures for production of Clinker and Cement are as under:
1999-00 1998-99 Increase/
(Decrease)
(Tonnes) (Tonnes) (Tonnes)
Clinker Production 347,328 329,070 18,258
Cement Production 374,274 339,045 35,229
Capacity utilization has only been 66% due to depressed market conditions and overall excess cement production capacity in the
Country.
The Company sold 374,036 metric tonnes of cement as against 338,835 metric tonnes in the previous year, registering a
growth of 10.40% in the sales volume. The market has remained highly competitive throughout the year with a downward
pressure on prices. However, the existing over capacity in the industry has resulted in industry wide lower capacity utilization.
ISO 9002 CERTIFICATION
Your management has successfully completed ISO 9002 certification carried out by M/s. Bet Norske Veritas of Netherlands, a
well renowned ISO certifying body. This is a milestone achievement in the history of your Company and this certification
stands for consistent quality of our product.
MARKET REVIEW
Cement Industry has continuously been under pressure due to weak economic conditions and inconsistent financial policies
of the Government. Constant increase in input prices, particularly the prices of furnace oil, which in one year has increased
from Rs. 6,980 per tonne to Rs. 14,500 per tonne. This extraordinary increase of 108% in the prices of furnace oil has
increased the cost of production by Rs. 40 per bag. Fall in the value of rupee has substantially increased the cost of imported
inputs like, spare parts, refractory bricks, grinding media, lubricants etc. Any attempt by the Company to pass on these
increases to the consumers would have further jeopardized the capacity utilization. As such most of the inflation was absorbed
by the Company.
General Sales Tax @ 15% has been imposed on cement w.e.f. September 05, 2000 and incidence of excise duty has been
reduced from Rs. 1,400 per ton to Rs. 1,000 per ton. This measure of the Government has created an un-level playing field
amongst the cement manufacturers. Four cement units namely Lucky Cement, Bestway Cement, Askari Cement (Nizampur)
and Saadi Cement will be exempt from payment of General Sales Tax till June 30, 2001. This benefit works out to be
approximately Rs. 450 per tonne in favour of these four units.
FUTURE PROSPECTS
Increasing input prices, under utilised production capacity in the country and especially the recent selective general sales tax
levy by the Government upto June 30, 2001, has created a doomsday scenario for the cement industry in the country which is
bound to spell disaster for cement manufacturing units, especially to ours, being the smallestones.
However, reduction in financial and depreciation costs of your Company over future years will contribute towards better
profitability.
DEBT OBLIGATION
The Company continues to meet its financial obligations. There has been a net debt reduction of approximately Rs. 259 million
during the year under review. The debt outstanding, as of June 30, 2000 is Rs. 118 million, which is one of the lowest in the
cement sector.
PATTERN OF SHAREHOLDINGS
The pattern of Shareholding of the Company as at June 30, 2000 is annexed with the Annual Report.
COMPANY LEGAL ADVISOR
Syed Shuja Uddin Wasti was replaced as legal advisor by Qazi Waheed ud din advocate High Court, Peshawar.
COMPANY AUDITORS
Viqar A. Khan, Chartered Accountants, the retiring Auditors, being eligible, offer themselves for re-appointment for the next
year.
MANAGEMENT EMPLOYEES RELATIONS
The Board would like to record its appreciation for the valuable contribution made by all its employees. The management is
quite confident these cordial relations and cooperation will continue in the years to come.
AIZAZ MANSOOR SHEIKH
Dated: November 21,2000 Chief Executive
YEAR WISE STATISTICAL SUMMARY
2000 1999 1998 1997 1996
ASSETS EMPLOYED
Fixed Assets 662 715 789 862 805
Investment and Long Term
Advances and Deposits 4 24 37 39 40
Current Assets 209 223 219 209 273
------------------ ------------------ ------------------ ------------------ ------------------
Total Assets Employed 875 961 1,045 1,111 1,119
========== ========== ========== ========== ==========
FINANCED BY
Shareholders Equity 475 384 406 408 449
Long Term Liabilities 18 140 160 326 303
Deferred Liabilities 117 44 12 11 11
Current Liabilities 266 393 469 365 356
------------------ ------------------ ------------------ ------------------ ------------------
Total Funds Invested 875 961 1,045 1,111 1,119
========== ========== ========== ========== ==========
TURNOVER AND PROFIT
Turnover (Net)   1,022 733 748 501 953
Operating Profit 304 115 57 45 116
Profit/(Loss) Before Taxation 249 58 (1) (38) 47
Profit/(Loss) After Taxation 151 23 (3) (41) 46
Cash Dividend 60 44 0 0 50
Profit c/f 93 3 17 20 61
AUDITORS' REPORT TO THE MEMBERS
We have audited the annexed balance sheet of KOHAT CEMENT COMPANY LIMITED as at June 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 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 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 the 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, its cash flows 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.
LAHORE: November 22, 2000 CHARTERED ACCOUNTANTS
BALANCE SHEET AS AT JUNE 30, 2000
2000 1999
Note Rupees Rupees
Share Capital and Reserves
Authorised share capital
50,000,000 (1999: 50,000,000) ordinary
Shares of Rs. 10 each 500,000,000 500,000,000
========== ==========
Issued, subscribed and paid up share capital
21,933,334 (1999: 21,933,334) ordinary
shares of Rs. 10 each 3 219,333,340 219,333,340
Reserves 4 162,120,028 162,120,028
Accumulated profit 93,178,739 2,928,902
------------------ ------------------
474,632,107 384,382,270
Redeemable Capital 5 -- 16,954,098
Liabilities Against Assets Subject to Finance Lease 6 15,057,509 118,220,157
Deferred Liabilities 7 116,594,780 44,124,993
Long Term Security Deposits 8 2,806,160 4,420,000
Current Liabilities
Shod term finances 9 69,321,124 98,750,293
Current portion of long term liabilities 10 33,756,486 154,188,070
Creditors, accruals and other payables 11 89,420,083 81,340,902
Provision for taxation 28,845,466 14,546,815
Dividends 12 44,541,761 44,097,041
------------------ ------------------
265,884,920 392,923,121
Contingencies and Commitments 13 ------------------ ------------------
874,975,476 961,024,639
========== ==========
Fixed Capital Expenditure
Operating fixed assets- tangible 14 659,797,694 714,765,683
Capital work-in-progress 15 2,100,706 --
------------------ ------------------
661,898,400 714,765,683
Long Term Loans to Employees 16 2,716,546 1,428,611
Long Term Deposits 17 926,030 22,325,311
Current Assets
Stores, spares and loose tools 18 51,434,353 56,342,730
Stock in trade 19 50,515,942 50,964,743
Trade debtors 20 28,921,924 43,461,019
Advances, deposits, prepayments,
investments and other receivables 21 35,195,185 38,324,163
Cash and bank balances 22 43,367,096 33,412,379
------------------ ------------------
209,434,500 222,505,034
------------------ ------------------
874,975,476 961,024,639
========== ==========
The annexed notes form an integral part of these accounts.
CHIEF EXECUTIVE DIRECTOR
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2000
2000 1999
Note Rupees Rupees
Sales 23 1,021,861,290 732,825,249
Cost of goods sold 24 689,815,805 590,884,795
------------------ ------------------
Gross profit 332,045,485 141,940,454
Selling, administrative and general expenses 25 28,110,454 26,465,728
------------------ ------------------
Operating profit 303,935,031 115,474,726
Other income 26 1,442,543 3,305,734
------------------ ------------------
305,377,574 118,780,460
------------------ ------------------
Financial charges 27 41,261,308 55,810,692
Other charges 28 14,936,867 4,688,828
------------------ ------------------
56,198,175 60,499,520
------------------ ------------------
Profit/(Loss) before taxation 249,179,399 58,280,940
Taxation 29 (98,612,894) (35,664,126)
------------------ ------------------
Profit/(Loss) after taxation 150,566,505 22,616,814
Unappropriated profit brought forward 2,928,902 17,178,756
Transferred from general reserve -- 7,000,000
------------------ ------------------
Profit available for appropriation 153,495,407 46,795,570
Appropriation
Dividends
Interim dividend @ 7.5% (1999: 20%) 16,450,000 43,866,668
Proposed final dividend @ 20% (1999: NIL) 43,866,668 --
------------------ ------------------
60,316,668 43,866,668
------------------ ------------------
Unappropriated profit carried forward 93,178,739 2,928,902
========== ==========
Earnings per share 30 6.86 1.03
========== ==========
The annexed notes form an integral part of these accounts.
CHIEF EXECUTIVE DIRECTOR
CASH FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 2000
2000 1999
Note Rupees Rupees
Cash flows from operating activities
Cash generated from operations A 393,345,938 218,435,329
Financial charges paid (50,243,65I) (78,644,077)
Income tax paid/deducted at source (13,191,964) (24,503,320)
------------------ ------------------
Net cash inflow/(outflow) from operating activities 329,910,323 115,287,932
Cash flows from investing activities
Fixed capital expenditure (22,161,336) (8,874,820)
Net (increase)/decrease in long term loans and deposits 32,081,647 (1,359,202)
Sale proceeds of fixed assets 648,192 516,760
Profit/mark-up on bank deposits and investments 939,178 689,871
Long term security deposits (1,613,840) (290,000)
------------------ ------------------
Net cash inflow/(outflow) from investing activities 9,893,841 (9,317,391)
Cash flows from financing activities
Repayment of short term borrowings (18,443,898) (46,269,005)
Increase in redeemable capital -- 31,000,000
Repayment of redeemable capital (8,916,220) (48,049,792)
Repayment of finance lease liabilities (231,632,11 o) (58,692,606)
Dividend paid (59,871,948) (9,100)
------------------ ------------------
(318,864,176) (122,020,503)
------------------ ------------------
Net increase/(decrease) in cash and cash equivalents 20,939,988 (16,049,962)
Cash and cash equivalents at the beginning of the year (46,894,016) (30,844,054)
------------------ ------------------
Cash and cash equivalents at the end of the year B (25,954,028) (46,894,016)
========== ==========
The annexed notes form an integral part of these accounts.
CHIEF EXECUTIVE DIRECTOR
CASH FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 2000
2000 1999
Note Rupees Rupees
NOTE- A
Cash flows from operating activities
Net profit/(loss) before taxation 249,179,399 58,280,940
Add / (Less) adjustments for non cash charges and other items
Depreciation on operating fixed assets 74,528,076 81,125,698
(Gain)/loss on sale of fixed assets (147,649) (462,127)
Provision for earned leave (net) (30,213) 461,531
Profit/mark-up on bank deposits and investments (1,035,632) (678,605)
Financial charges 41,261,308 55,810,692
------------------ ------------------
114,575,890 136,257,189
------------------ ------------------
Operating profit before working capital changes 363,755,289 194,538,129
Effect on cash flow due to working capital changes:
(Increase)/decrease in stores and spares 4,908,377 3,251,768
(Increase)/decrease in stock-in-trade 448,801 (9,829,418)
(Increase)/decrease in trade debtors 14,539,095 28,054,004
(Increase)/decrease in advances, deposits,
prepayments, investments and other receivables (7,367,148) 3,360,936
Increase/(decrease) in creditors, accruals and other liabilities 17,061,524 (940,090)
------------------ ------------------
29,590,649 23,897,200
------------------ ------------------
Cash generated from operations 393,345,938 218,435,329
========== ==========
NOTE- B
Cash and cash equivalents
Cash and bank balances 43,367,096 33,412,379
Short term running finances (69,321,124) (80,306,395)
------------------ ------------------
(25,954,028) (46,894,016)
========== ==========
CHIEF EXECUTIVE DIRECTOR
STATEMENT OF CHANGES
IN EQUITY FOR THE YEAR ENDED JUNE 30, 2000
RESERVES
CAPITAL REVENUE
SHARE Share General Accumulated TOTAL
CAPITAL Premium Reserves Profit
Rupees
Balance as at June 30,1998 219,333,340 92,120,028 77,000,000 17,178,756 405,632,124
Profit for the year ended June 30, 1999 -- -- -- 22,616,814 22,616,814
Transfer to accumulated profit -- -- (7,000,000) 7,000,000 --
Dividend -- -- -- (43,866,668) (43,866,668)
------------------ ------------------ ------------------ ------------------ ------------------
Balance as at June 30, 1999 219,333,340 92,120,028 70,000,000 2,928,902 384,382,270
Profit for the year ended June 30, 2000 -- -- -- 150,566,505 150,566,505
Dividends -- -- -- (60,316,668) (60,316,668)
------------------ ------------------ ------------------ ------------------ ------------------
Balance as at June 30, 2000 219,333,340 92,120,028 70,000,000 93,178,739 474,632,107
========== ========== ========== ========== ==========
The annexed notes form an integral part of these accounts.
CHIEF EXECUTIVE DIRECTOR
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED JUNE 30, 2000
1 - The Company and its Operations
The Company is a Public Limited Company incorporated in Pakistan under the Companies Act, 1913 (now Companies
Ordinance, 1984) and is listed on Stock Exchanges of Pakistan. The Company is engaged in the production and sale of
Grey cement.
2- Significant Accounting Policies
2.1- Accounting convention
These accounts have been prepared under the historical cost convention as modified by capitalisation of
exchange differences referred to in note 2.8.
2.2- Operating fixed assets and depreciation
Operating fixed assets are stated at cost less accumulated depreciation except freehold land and capital work in
progress which are stated at cost. Cost of certain fixed assets consists of historical cost, exchange differences
and directly attributable cost of bringing the assets to working condition. Depreciation on operating fixed
assets is charged to income by applying the reducing balance method, so as to write off the historical cost of an
asset over its estimated useful life at the rates mentioned in note 14. Full year's depreciation is charged on
additions except major additions or extensions to production facilities which are depreciated on pro-rata basis for
the period of use during the year.
Normal repairs and maintenance are charged to income as and when incurred. Major improvements and
modifications are capitalized and assets so replaced, if any, other than those kept as stand by, are retired.
Profit or loss on disposal of operating fixed assets is included in the current income.
2.3- Assets subject to finance lease
Assets subject to finance lease are stated at the lower of present value of minimum lease payments under the
lease agreements and the fair value of the assets. The related obligations of the leases are accounted for as
liabilities.
Assets acquired under finance lease are amortized over the useful life of the assets on a reducing balance method
at the rates given in note 14. Amortization of leased assets is charged to profit.
2.4- Stores and spares
These are valued at moving average cost except items in transit which are valued at cost which comprises of
invoice value plus other charges paid thereon.
2.5- Stock-in-trade
Stock-in-trade is valued at the lower of average cost and net realizable value. The average cost in relation to work-
in-process and finished goods represents direct costs of materials, labour and appropriate portion of production
overheads. Net realizable value signifies the ex-factory sales price less expenses and taxes necessary to be
incurred in order to make the sale.
2.6- Staff retirement benefits
The Company operates an approved gratuity fund scheme for its permanent employees, payable on cessation of
employment, subject to minimum qualifying period of service. Provision is made annually to cover obligations
under the scheme for all employees eligible to gratuity benefits irrespective of the qualifying period.
The Company also operates a recognised contributory provident fund scheme. Equal monthly contributions are
made by the Company and the employees to the fund.
2.7- Taxation
The charge for current taxation is based on taxable income at current rates of taxation after taking into account
tax credits and rebates available, if any. The Company accounts for deferred taxation arising on major timing
differences in installments using the liability method as discussed in note 29 to the accounts.
2.8- Foreign currency translation
Assets and liabilities in foreign currencies are translated into rupees at exchange rates approximating those
prevailing at the balance sheet date. Exchange differences in respect of foreign currency loans obtained for
acquisition of fixed assets are incorporated in the cost of relevant assets. All other exchange differences are
taken to profit and loss account.
2.9- Borrowing costs
All mark-up, interest and other charges are charged to income.
2.10- Revenue Recognition
- Sales are recognised at the time of despatch of goods to the customers.
- Interest income on bank deposits is accounted for on accrual basis.
2000 1999
Rupees Rupees
3 - Issued, subscribed and paid-up share capital
2,243,334 (1999: 2,243,334) Ordinary shares of Rs. 10
each fully paid in cash 22,433,340 22,433,340
11,230,000 (1999: 11,230,000) Ordinary shares of Rs. 10
each issued as fully paid for consideration other than cash 112,300,000 112,300,000
8,460,000 (1999: 8,460,000) Ordinary shares of Rs. 10 each
issued as fully paid bonus shares 84,600,000 84,600,000
------------------ ------------------
219,333,340 219,333,340
========== ==========
4 - Reserves
Capital Revenue Total
(Share premium) (General) 2000 1999
Rupees Rupees Rupees Rupees
At the beginning of the year 92,120,028 70,000,000 162,120,028 169,120,028
Transferred to profit & loss account -- -- -- 7,000,000
------------------ ------------------ ------------------ ------------------
92,120,028 70,000,000 162,120,028 162,120,028
========== ========== ========== ==========
Share premium represents premium of Rs. 42 per share received on issue of 2,193,334 ordinary shares to general public
in 1994.
2000 1999
Note Rupees Rupees
5 - Redeemable capital- secured
Union Leasing Limited 22,083,780 31,000,000
Less: Current portion shown under current liabilities 10 22,083,780 14,045,902
------------------ ------------------
-- 16,954,098
========== ==========
This represents a term finance facility of Rs. 31.00 million. The finance is repayable in 21 monthly unequal installments
commenced from July 15, 1999 and carries mark-up at the rate of 17% (1999:16.75%) per annum. In the event of failure
to pay any installment on due date, the lender shall be entitled to recall the entire amount immediately. The finance is
secured against second charge on all present and future assets and hypothecation of moveable assets of the Company
and personal guarantees of certain directors.
6 - Liabilities against assets subject to finance lease
The amounts of unpaid lease payments to date, future payments and the periods in which these payments will become
due are:-
Year ending
1999 -- 38,348,084
2000 -- 134,649,024
2001 14,436,396 85,221,598
2002 12,302,180 29,568,396
2003 4,218,198 19,231,931
------------------ ------------------
Total minimum lease payments 30,956,774 307,019,033
Less: Financial charges allocated to unpaid lease payments
and future payments 4,226,559 48,656,708
------------------ ------------------
Present value of minimum lease payments 26,730,215 258,362,325
Less: Current portion shown under current liabilities
Current 10 11,672,706 116,541,551
Over due -- 23,600,617
------------------ ------------------
11,672,706 140,142,168
------------------ ------------------
15,057,509 118,220,157
========== ==========
The implicit rate used as the discounting factor is 13.15% and 14% per annum. Rentals are payable in equal monthly and
quarterly installments. Over dues are subject to additional payment at rates 1% and 3% per month. The lessee shall have
no right to terminate the lease agreements and if the lease agreements are terminated before the due dates, the lessee
will have to pay the entire amount of lease rentals for un-expired period of the lease agreements. However, lease
agreements carry renewal option at the end of lease periods. These liabilities are secured by demand promissory notes,
charge on Company's assets ranking parri passu with other creditors, personal guarantees of directors and deposits of
Rs. 2,000,000 (1999: Rs. 35,873,371) shown in note 17 and 21.
6.1 - Minimum lease payments and their present values are regrouped as below:
2000 1999
Minimum Present Present Minimum
lease value of value of lease
payments minimum minimum payments
Lease lease
Payments payments
Due not later than one year 14,436,396 11,672,706 172,997,108 140,142,168
Due later than one year and not
later than five years 16,520,378 15,057,509 134,021,925 118,220,157
------------------ ------------------ ------------------ ------------------
30,956,774 26,730,215 307,019,033 258,362,325
========== ========== ========== ==========
2000 1999
Note Rupees Rupees
7 - Deferred liabilities
Deferred taxation 29 111,818,943 39,318,943
Earned leave 4,775,837 4,806,050
------------------ ------------------
116,594,780 44,124,993
========== ==========
8 - Long term security deposits
From cement dealers 8.1 1,706,160 2,320,000
From cement transporters 8.2 1,100,000 2,100,000
------------------ ------------------
2,806,160 4,420,000
========== ==========
8.1 - These represent interest free security deposits received from cement dealers and repayable on the termination
of the agency.
8.2 - These represent interest free security deposits received from transporters for providing guarantee of safe
delivery of cement to customers.
9 - Short term finances
Sanction Rate of 2000 1999
Secured Note limit Mark-up Rupees Rupees
Commercial Banks
Running finances 9.1 68,000,000 47 paisas per Rs. 1,000 66,835,039 96,789,002
per day.
Un-secured
Commercial Banks 9.2 -- -- 2,486,085 1,961,291
------------------ ------------------ ------------------
68,000,000 69,321,124 98,750,293
========== ========== ==========
9.1- These represent short term running finances utilized under mark-up arrangements secured against 1st charge
ranking parri passu with other banks over the existing and future total assets of the Company and personal
guarantees of certain directors.
9 - 2 These represents cheques issued but not presented at the balance sheet date.
2000 1999
Note Rupees Rupees
10 - Current portion of long term liabilities
Redeemable capital 5 22,083,780 14,045,902
Liabilities against assets subject to finance lease 6 11,672,706 140,142,168
------------------ ------------------
33,756,486 154,188,070
========== ==========
11 - Creditors, accruals and other payables
Trade creditors 10,853,699 11,272,012
Advances from cement customers 7,727,079 4,651,025
Accrued liabilities 39,614,669 34,225,868
Bills payable 679,579 885,888
Bonus payable 6,777,400 6,856,418
Financial charges accrued on:
Redeemable capital 156,427 216,354
Liabilities against assets subject to finance lease -- 7,253,348
Short term finances 1,320,237 655,737
Excise duty on liabilities against assets
subject to finance lease -- 2,333,568
Workers' profit participation fund 11.1 15,481,586 3,148,488
Income tax deducted at source 196,340 315
Royalty and excise duty 11.2 253,571 66,341
Workers' welfare fund 4,474,297 8,029,447
Security deposits and retention moneys 11.3 601,915 646,046
Other payables 1,283,284 1,100,047
------------------ ------------------
89,420,083 81,340,902
========== ==========
11.1 - Workers' profit participation fund
Balance as at July 01, 1999 3,148,488 1,546,566
Allocation for the year 28 13,209,098 3,148,488
------------------ ------------------
16,357,586 4,695,054
Interest on funds utilized in Company's business 65,700 --
------------------ ------------------
16,423,286 4,695,054
Amount paid to/on behalf of fund 941,700 1,546,566
------------------ ------------------
15,481,586 3,148,488
========== ==========
11.2 - Royalty and excise duty
Royalty 80,424 3,810
Excise duty 173,147 62,531
------------------ ------------------
253,571 66,341
========== ==========
11.3 - Security deposits and retention money
These represent the interest free security deposits and retention money received from contractors and are
repayable after satisfactory completion of contracts.
12- Dividends
Unclaimed 675,093 230,373
Interim -- 43,866,668
Proposed 43,866,668 --
------------------ ------------------
44,541,761 44,097,041
========== ==========
13 - Contingencies and commitments
13.1 - Contingencies
13.1.1 - The Engineering Services International (Pakistan) Limited has raised a claim of Rs. 5,449,000 against the Company on account of
mechanical installation/erection. A counter claim of Rs. 1,307,962 has been lodged by the Company. The case is pending with Senior
Civil Judge, Lahore.
13.1.2 - The State Cement Corporation of Pakistan (Private) Limited, the previous sole owner of the Company has raised a claim of Rs. 5.640,000
against the Company on account of the interim dividend declared by previous Board of Directors. The present Board of Directors has
rescinded that declaration of interim dividend on various grounds. The matter is pending for adjudication with the Securities and
Exchange Commission of Pakistan.
13.1.3 - The Company has initiated recovery proceedings for the recovery of Rs. 14,100,000, being interim dividend pertaining to the year
ended June 30, 1992 paid by the previous management to the State Cement Corporation of Pakistan (Private) Limited. The said dividend
has been rescinded by the Board and recision confirmed at the Annual General Meeting. As a consequence, the Company has withheld
Rs. 14,100,000 interim dividend pertaining the period ended December 31, 1994 payable to the State Cement Corporation of Pakistan
(Private) Limited. intimations have been given to the State Cement Corporation of Pakistan (Private) Limited and the Securities and
Exchange Corn mission of Pakistan (the application is pending with the Securities and Exchange Commission of Pakistan). This amount
has been withheld on legal advice obtained from the corporate lawyers.
13.1.4 - While finalizing the Company's assessment for the assessment year 1995-96 (accounting year ended Jun 30, 1995- 18 months), the
assessing officer has imposed a additional tax of Rs. 16.45 million. On appeal the Income Tax Appellate Tribunal (ITAT) has up held the
decision of the assessing officer. The Company has filed a miscellaneous application with the ITAT for review of its decision and also
intends to file a reference before the Honourable Peshawar High Court. No provision has been made in these accounts for the
aforementioned tax demand. The management is hopeful of a favourable outcome.
13.2 - Commitments in respect of:
- Letters of Credit other than for capital expenditure Rs. 784,500 (1999: Rs. NIL).
14 - Operating fixed assets
COST DEPRECIATION Rupees
Written
As at Additions/ As at Rate Accumulated Charged Adjustment Accumulated down value
Particulars 01-07-1999 (deletions) 30-06-2000 % as at for the on disposal as at as at
01-07-1999 year 30-06-2000 30-06-2000
Freehold land 6,815,970 7,837,650 14,653,620 -- -- -- -- -- 14,653,620
Buildings on
freehold land
- Factory buildings 180,158,642 -- 180,158,642 10 129,525,258 5,063,338 -- 134,588,596 45,570,046
- Office and other buildings 13,337,926 -- 13,337,926 5 7,180,454 307,874 -- 7,488,328 5,849,598
- Housing Colony 33,451,768 -- 33,451,768 5 16,221,448 861,516 -- 17,082,964 16,368,804
Plant, machinery and 822,724,485 251,689,130 1,074,378,428 10 467,828,614 53,362,116 72,939,546 594,119,380 480,259,048
equipment (35,187) (10,896)
Storage tanks and
pipelines 17,187,050 -- 17,187,050 10 13,813,130 337,392 -- 14,150,522 3,036,528
Power installations 82,975,450 -- 82,975,450 10 66,351,127 1,662,432 -- 68,013,559 14,961,891
Furniture, fixtures and 15,314,429 930,026 15,545,840 10 8,318,566 751,040 (283,124) 8,786,482 6,759,358
other office equipment (698,615)
Weighing scales 1,099.62 -- 1,099,615 10 687,345 41,227 -- 728,572 371,043
Vehicles 14,140,096 2,632,740 16,238,068 20 9,532,814 1,435,852 (474,007) 10,494,659 5,743,409
(534,768)
Heavy vehicles 87,905,412 7,481,589 95,387,001 20 63,086,241 6,460,152 -- 69,546,393 25,840,608
Railway sidings 9,853,476 -- 9,853,476 5 5,498,439 217,752 -- 5,716,191 4,137,285
Laboratory equipment 16,449,278 1,725 16,451,003 10 12,428,976 402,203 -- 12,831,179 3,619,824
Library books 75,442 3,310 78,752 10 47,545 3,121 -- 50,666 28,086
------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------
1,301,489,039 270,576,170 1,570,796,639 800,519,957 70,906,015 72,939,546 943,597,491 627,199,148
(1,268,570) (768,027)
Assets subject to
finance lease:
Plant and Machinery 300,490,897 (250,515,540) 49,975,357 10 86,694,296 3,622,061 (72,939,546) 17,376,811 32,598,546
------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------
TOTAL 2000 1,601,979,936 270,576,170 1,620,771,996 887,214,253 74,528,076 72,939,546 960,974,302 659,797,694
(251,784,110) (73,707,573)
========== ========== ========== ========== ========== ========== ========== ========== ==========
TOTAL 1999 1,597,068,569 73,524,330 1,601,979,936 825,494,510 81,125,698 (19,405,955) 887,214,253 714,765,683
(68,612,963)
========== ========== ========== ========== ========== ========== ========== ========== ==========
14.1 - Additions in plant and machinery include assets transferred from leased assets amounting to Rs. 250,515,540 (1999:
Rs. 64,476,428).
2000 1999
Note Rupees Rupees
14.2- Depreciation has been charged as under:
Cost of goods sold 24 74,166,419 80,791,682
Administrative and general expenses 25 256,422 233,812
Selling expenses 25 105,235 100,204
------------------ ------------------
74,528,076 81,125,698
========== ==========
14.3 - Disposal of operating fixed assets:
A) Detail of fixed assets disposed of having book value of Rs. 5,000 or more or disposed to Executives, in each
case are as follows:
Quantity Cost Accumulated Book Sale Profit Mode of
Particulars of assets Depreciation Value Proceeds (Loss) sale Sold to
Furniture, fixtures and
Other office equipment
Refrigerator 01 12,750 7,429 5,321 7,000 1,679 Sold by Abdul Hakim Arain
Negotiation as Executive
per Company's
Policy
Room Cooler 02 6,600 5,238 1,362 1,800 438 - do- - do-
Refrigerator 01 11,100 8,929 2,171 4,000 1,829 - do- Abdul Shakoor
Executive
Room Cooler 01 6,535 2,462 4,073 1,000 (3,073) -do- - do-
Refrigerator 01 10,000 4,095 5,905 6,000 95 -do- Dost Mohammad
Employee
Room Cooler 01 8,657 1,645 7,012 2,000 (5,012) - do- - do-
Refrigerator 01 11,350 6,941 4,409 6.00 1,591 - do- Naveed Ijaz
Executive
Room Cooler 02 11,218 4,925 6,293 3,000 (3,293) - do- -do-
Room Cooler 02 13,870 4,985 8,885 2,500 (6,385) - do- Malik Khalid
Executive
Room Cooler 01 8,657 1,645 7,012 1,000 (6,012) - do- Amal Ghani Shah
Employee
Room Cooler 01 8,657 1,645 7,012 1,000 (6,012) - do- Wilayat Khan
Employee
Room Cooler 02 13,070 4,924 8,146 3,500 (4,646) - do- Javed Kiyani
Executive
Room Cooler 01 8,336 2,259 6,077 1,500 (4,577) - do- Mohammad Ramzan
Employee
Vehicles
Suzuki van -Bolan 01 139,000 120,110 18,890 46,610 27,720 Negotiation Mohammad Munir
Lahore
Suzuki Jeep Photohar 01 214,400 185,264 29,136 25,424 (3,712) Negotiation Shafiq Ahmed
Khan, Lahore
Suzuki Car Swift 01 181,368 168,633 12,735 144,068 131,333 Negotiation Shakir Ullah
Peshawar.
B) No assets except those stated above were sold to the Chief Executive, Directors, Executives, associated
undertakings or any shareholder with not less than 10% voting rights.
2000 1999
Note Rupees Rupees
15 - Capital work-in-progress
Civil works 34,202 --
Plant and machinery 2,066,504 --
------------------ ------------------
2,100,706 --
========== ==========
16 - Long term loans to employees
Executives
- House Building 102,359 140,567
Other Employees
- House Building 2,871,074 1,723,427
- Motor Car/Motor Cycle 1,071,178 264,828
- Marriage Loan 168,700 322,200
- Other Long Term Loans 193,035 163,600
------------------ ------------------
4,303,987 2,474,055
------------------ ------------------
4,406,346 2,614,622
Less: current maturity 21.1 1,689,800 1,186,011
------------------ ------------------
2,716,546 1,428,611
========== ==========
16.1 - The above loans to employees may be re-classified as under:
Outstanding for period exceeding three years 700,183 857,493
Others 2,016,363 571,118
------------------ ------------------
2,716,546 1,428,611
========== ==========
16 - 2 Interest rate and terms of re-payment
Nature of loans Rate of interest Monthly
installments
- House Building 6% 60
- Vehicle- Officers 6% 60
- Vehicle- Workers -- 36
- Marriage Loan -- 30
- Long Term Loan -- 12
16.2.1 House building and vehicle loans are secured against lien on retirement benefits.
16.2.2 House building loans include interest free loans to workers amounting to Rs. 2,617,070
(1999: Rs. 1,313,160).
16.3 - The maximum aggregate amount of loans due from executives of the Company at the end of any
month during the year was Rs. 156,008 (1999: Rs. 166,497).
16.4- These loans to employees are considered good.
17 - Long term deposits
Leasing companies 17.1 -- 21,399,281
Others 926,030 926,030
------------------ ------------------
926,030 22,325.31
========== ==========
17 - 1 Leasing companies
Balance as at June 30, 1999 2,000,000 35,873,371
Less: Current portion of long term security deposits 21 2,000,000 14,474,090
------------------ ------------------
-- 21,399,281
========== ==========
18 - Stores, spares and loose tools
Stores 21,891,607 18,624,587
Spares 28,296,285 36,632,751
Loose tools 1,246,461 1,085,392
------------------ ------------------
51,434,353 56,342,730
========== ==========
19 - Stock-in-trade
Raw materials 797,574 530,594
Work-in-process 30,277,832 35,589,471
Finished goods 14,732,431 13,366,822
Packing materials 4,708,105 1,477,856
------------------ ------------------
50,515,942 50,964,743
========== ==========
20 - Trade debtors
20.1 - All the debtors are considered good and include secured debtors of Rs. 12,724,902 (1999: Rs. 18,955,282).
Trade debtors include amounts due from associated companies for Rs. 2,384,165 (1999: Rs. 2,384,165).
20.2 - The aggregate maximum amount due from associated companies at the end of any month during the year was
Rs. 2,384,165 (1999: Rs. 2,774,765).
21 - Advances, deposits, prepayments,
investments and other receivables
Advances- considered good
Company's employees 21.1 2,975,326 2,754,159
Suppliers 9,555,406 1,281,830
Contractors 389,472 145,490
Current portion of long-term securities
with leasing companies 17.1 2,000,000 14,474,090
Letters of credit 382,784 651,304
Excise duty 2,294,662 3,185,062
Income tax 16,440,255 15,062,534
------------------ ------------------
34,037,905 37,554,469
Short term prepayments 575,691 214,736
Other receivables
Profit/mark-up accrued on bank deposits and investment 96,454 --
Others 485,135 554,958
------------------ ------------------
581,589 554,958
------------------ ------------------
35,195,185 38,324,163
========== ==========
21.1 - Advances to Company's employees
Current maturity of long term loans 16 1,689,800 1,186,011
For purchases 591,422 1,327,976
Miscellaneous 694,104 240,172
------------------ ------------------
2,975,326 2,754,159
========== ==========
22 - Cash and bank balances
Balances with banks
- On current accounts 10,575,909 11,748,311
- On saving accounts 31,963,051 20,837,117
- On deposit accounts 733,785 307,433
------------------ ------------------
43,272,745 32,892,861
Cash in hand 94,351 519,518
------------------ ------------------
43,367,096 33,412,379
========== ==========
23 - Sales
Sales- gross 1,586,049,780 1,266,983,064
------------------ ------------------
Less: Rebate on cement 40,538,090 16,753,086
Excise duty 523,650,400 517,404,729
------------------ ------------------
564,188,490 534,157,815
------------------ ------------------
1,021,861,290 732,825,249
========== ==========
24 - Cost of goods sold
Opening work-in-process 35,589,471 25,882,189
Raw and packing materials consumed 24.1 93,524,601 85,073,467
Royalty, excise duty and sales tax 8,429,816 15,574,342
Electricity 136,238,224 141,210,247
Furnace oil 257,100,788 169,813,083
Fuel 3,497,592 2,970,761
Stores and spares consumed 31,626,070 26,781,933
Salaries, wages and other benefits 63,444,821 64,873,560
Rent, rates and taxes 337,063 134,645
Repairs and maintenance 8,045,479 5,306,947
Insurance 3,066,263 3,158,359
Other expenses 6,392,639 4,418,899
Depreciation 14.2 74,166,419 80,791,682
------------------ ------------------
721,459,246 625,990,114
Less: Closing work-in-process 30,277,832 35,589,471
------------------ ------------------
Cost of goods manufactured 691,181,414 590,400,643
Opening stock of finished goods 13,366,822 13,850,974
------------------ ------------------
704,548,236 604,251,617
Less: Closing stock of finished goods 14,732,431 13,366,822
------------------ ------------------
689,815,805 590,884,795
========== ==========
24.1 - Raw and packing materials consumed
Opening stock as at July 01
Raw materials 530,594 319,925
Packing materials 1,477,856 1,082,237
------------------ ------------------
2,008,450 1,402,162
Add: Purchases during the year
- Raw materials 5,050,338 3,769,802
- Packing materials 91,971,492 81,909,953
------------------ ------------------
97,021,830 85,679,755
------------------ ------------------
99,030,280 87,081,917
Less: Closing stock as at June 30
- Raw materials 797,574 530,594
- Packing materials 4,708,105 1,477,856
------------------ ------------------
5,505,679 2,008,450
------------------ ------------------
93,524,601 85,073,467
========== ==========
25 - Selling, administrative and general expenses
Selling
Salaries, wages and other benefits 4,520,604 4,781,435
Vehicle running 835,472 512,253
Travelling and conveyance 323,945 151,469
Printing and stationery 487,196 456,617
Postage, telephone and telegrams 775,164 558,881
Entertainment 1,122,195 930,569
Rent, rates and taxes 162,742 272,995
Electricity, water and gas 86,304 43,341
Advertisement 27,980 97,415
Miscellaneous 925,041 972,738
Cement loading and transportation charges 1,408,859 1,377,536
Depreciation 14.2 105,235 100,204
------------------ ------------------
10,780,737 10,255,453
Administrative and general
Salaries, wages and other benefits 9,888,602 9,752,550
Vehicle running 262,042 177,849
Travelling and conveyance 1,138,955 902,258
Printing and stationery 299,491 256213
Legal and professional 25.1 1,112,024 1,035,352
Postage, telephone and telegrams 873,234 843,195
Rent, rates and taxes 664,092 676,239
Entertainment 205,483 145,471
Auditor's remuneration 25.2 680,000 522,000
Miscellaneous 1,734,450 1,665,162
Zakat 11,535 174
Advertisement 203,387 --
Depreciation 14.2 256,422 233,812
------------------ ------------------
17,329,717 16,210,275
------------------ ------------------
28,110,454 26,465,728
========== ==========
25.1 - Legal and professional charges include remuneration to cost auditor Rs. 30,000 (1999: 30,000).
25.2 - Auditor's remuneration
Audit fee 75,000 75,000
Consultancy charges 588,000 430,000
Out of pocket expenses 17,000 17,000
------------------ ------------------
680,000 522,000
========== ==========
26 - Other income
Profit/mark-up on bank deposits and investments 1,035,632 678,605
Income from sale of scrap 176,304 1,397,865
Profit on sale of fixed assets 147,649 462,127
Miscellaneous 82,958 767,137
------------------ ------------------
1,442,543 3,305,734
========== ==========
27 - Financial charges
Interest/mark-up on:
Redeemable capital 4,523,853 4,897,728
Liabilities against assets subject to finance lease 28,682,957 32,345,079
Short term finances 6,779,498 14,753,762
Workers' profit participation fund 65,700 --
Excise duty on finance lease -- 2,717,493
Bank charges and commission 1,209,300 1,096,630
------------------ ------------------
41,261,308 55,810,692
========== ==========
28 - Other charges
Workers' profit participation fund 13,209,098 3,148,488
Workers' welfare fund 1,727,769 1,540,340
------------------ ------------------
14,936,867 4,688,828
========== ==========
29 - Taxation
Current:
- for the year 25,181,340 3,664,126
- for prior years 931,554 --
------------------ ------------------
26,112,894 3,664,126
Deferred 72,500,000 32,000,000
------------------ ------------------
98,612,894 35,664,126
========== ==========
The liability for deferred taxation as on the balance sheet date is estimated to Rs. 143.82 million (1999: Rs. 102.57
million). This represents the tax effect of allowances of accelerated tax depreciation and lease rentals.
In order to comply with the requirements of revised International Accounting Standard 12, the management decided
last year to provide for deferred taxation of Rs. 96 million over a period of three years. Since the Company has made
substantial payments during the current year against liabilities for assets subject to finance lease, the management
has decided to provide for further deferred taxation of Rs. 40.5 million in the current year to the extent of tax effect of
timing differences arising due to these payments.
30 - Earnings per share
Net profit for the year 150,566,505 22,616,814
Weighted average number of ordinary
shares outstanding during the year 21,933,334 21,933,334
------------------ ------------------
Earnings per share - basic and diluted 6.86 1.03
========== ==========
There is no dilutive effect in the basic earnings per share of the Company.
31 - Transactions with associated undertakings
The Company sold to associated undertakings Grey cement in aggregate sum of Rs. NIL during the year (1999:
Rs. 499,100) at normal selling rates.
32 - Remuneration of Chief Executive, Directors and Executives
Chief Executive Director Executives
2000 1999 2000 1999 2000 1999
Rupees Rupees Rupees Rupees Rupees Rupees
Managerial Remuneration 360,000 360,000 360,000 360,000 2,088,956 2,021,518
Rent and utilities allowances 120,000 120,000 120,000 120,000 1,049,274 1,059,370
Medical re-imbursement -- -- 146,911 198,350 135,749 109,792
Bonus -- -- -- -- 287,887 463,149
Retirement benefits -- -- -- -- 564,522 524,563
Other re-imbursement of expenses 1,014,844 1,449,203 860,827 296,259 1,588,683 1,378,615
------------------ ------------------ ------------------ ------------------ ------------------ ------------------
1,494,844 1,929,203 1,487,738 974,609 5,715,071 5,557,007
========== ========== ========== ========== ========== ==========
Number of persons 1 1 1 1 14 12
========== ========== ========== ========== ========== ==========
32.1 - The Company also provides the Chief Executive, certain Directors and Executives of the Company with free use of
Company maintained cars and telephone facilities.
33 - Total number of employees at the end of the year were 447 (1999: 459).
2000 1999
(Tonnes) (Tonnes)
34 - Plant capacity and actual production
Clinker
Plant capacity 540,000 540,000
Actual production 347,328 329,070
34.1 - The under utilization of available capacity was mainly due to over all slow down in economic activity of the
country and increase in supply of cement.
35 - Financial assets and liabilities
Interest/mark-up bearing Non-interest bearing Total Total
Maturity upto Maturity after Sub Maturity upto Maturity after Sub 2000 1999
one year one year Total one year one year Total
Rupees
Financial assets
Loans and advances to employees 194,611 258,702 453,313 2,780,715 2,457,844 5,238,559 5,691,872 4,182,770
Deposits -- -- -- 2,000,000 926,030 2,926,030 2,926,030 36,799,401
Trade debts -- -- -- 28,921,924 28,921,924 28,921,924 43,461,019
Advances, deposits & pre-payments
- Profit/mark-up accrued -- -- -- 96,454 -- 96,454 96,454 --
- Other receivables -- -- -- 389,135 -- 389,135 389,135 444,958
Cash and bank balances 31,963,051 -- 31,963,051 11,404,045 -- 11,404,045 43,367,096 33,412,379
------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------
32,157,662 258,702 32,416,364 45,592,273 3,383,874 48,976,147 81,392,511 118,300,527
========== ========== ========== ========== ========== ========== ========== ==========
Financial Liabilities
Redeemable capital 22,083,780 -- 22,083,780 -- -- -- 22,083,780 31,000,000
Liabilities Against Assets Subject
To Finance lease 11,672,706 15,057,509 26,730,215 -- -- -- 26,730,215 258,362,325
Deposits and retention moneys -- -- -- 601,915 2,806,160 3,408,075 3,408,075 5,066,046
Short term finances 69,321,124 -- 69,321,124 -- -- -- 69,321,124 98,750,293
Creditor, accrued & other liabilities -- -- -- 53,750,889 -- -- -- 51,999,817
Dividends -- -- -- 44,541,761 -- -- -- 44,097,041
Commitments -- -- -- 784,500 -- 784,500 784,500 --
------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------
3,077,610 15,057,509 118,135,119 99,679,065 2,806,160 2,485,225 220,620,344 489,275,522
========== ========== ========== ========== ========== ========== ========== ==========
35.1 - Concentration of credit risk:
Credit risk represents the accounting loss that would be recognized at the reporting date if counter parties
completely failed to perform as contracted. The company believes that it is not exposed to major concentration
of credit risks. However, to manage any possible exposure to credit risk, the company applies approved credit
limits to its customers and also obtain collaterals.
35.2 - Foreign exchange risk management:
Foreign currency risk arises mainly where payables exist due to purchase transactions. Payables exposed to
foreign currency risks are identified as either creditors or bills payable. The Company does not view hedging as
being financially feasible owing to the excessive costs involved.
35.3 Fair value of financial instruments:
The carrying value of all the financial instruments (i.e. financial assets and liabilities) reflected in the financial
statements approximate their fair value.
36 - General
Corresponding figures have been rearranged, wherever necessary for comparison purposes.
CHIEF EXECUTIVE DIRECTOR
Pattern of Shareholding as at June 30, 2000
Shareholding
No. of No. of
Sr. No. Share holders From To Shares held
1 84 1 100 7,806
2 2,432 101 500 493,634
3 32 501 1000 26,000
4 22 1001 5000 46,100
5 12 5001 10000 104,400
6 2 10001 15000 25,400
7 1 45001 50000 50,000
8 1 145001 150000 149,400
9 1 150001 155000 155,000
10 1 175001 180000 180,000
11 1 330001 335000 335,000
12 1 355001 360000 356,500
13 1 415001 420000 417,800
14 1 770001 775000 774,600
15 1 865001 870000 869,200
16 1 910001 915000 914,500
17 1 1200001 1205000 1,204,000
18 1 1350001 1355000 1,352,300
19 1 1970001 1975000 1,973,994
20 1 1995001 2000000 2,000,000
21 1 2510001 2515000 2,514,000
22 1 2605001 2610000 2,606,000
23 1 5375001 5380000 5,377,700
------------------ ------------------
2,601 21,933,334
========== ==========
Categories of No. of Shares Percentage
Shareholders Shareholders Held of Capital
Individuals 2,589 4,879,740 22.248
Investment Companies 1 5,800 0.026
Joint Stock Companies 9 12,441,794 56.726
Foreign Companies 2 4,606,000 21.00
------------------ ------------------ ------------------
Grand Total 2,601 21,933,334 100.00
========== ========== ==========
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