| Kohinoor Genertek Limited |
|
|
|
|
|
|
|
|
| Annual
Report 2000 |
|
|
|
| CONTENTS |
|
|
| Company
Information |
|
| Notice
of Meeting |
|
| Directors'
Report to the Shareholders |
|
| Pattern
of Shares Held by the Shareholders |
|
| Auditors'
Report to the Members |
|
| Balance
Sheet |
|
| Profit
and Loss Account |
|
| Cash
Flow Statement |
|
| Statement
of Changes in Equity |
|
| Notes
to the Accounts |
|
|
|
|
|
| COMPANY
INFORMATION |
|
|
| BOARD
OF DIRECTORS |
|
| MR.
TARIQ SAYEED SAIGOL |
Chairman |
|
| MR.
SARMAD AMIN |
|
Chief Executive |
|
| MR.
TAUFIQUE SAYEED SAIGOL |
|
| MR.
SAYEED TARIQ SAIGOL |
|
| MR.
AAMIR FAYYAZ SHEIKH |
|
| MR.
ASAD FAYYAZ SHEIKH |
|
| MR.
USMAN SAID |
|
| MR.
SHAMSUDDIN KHAN |
(Nominee of NIT) |
|
|
| COMPANY
SECRETARY |
|
| MR.
MUHAMMAD ASHRAF |
|
|
| AUDITORS |
|
| M/S.
AVAIS HYDER ZAMAN RIZWANI, |
|
| CHARTERED
ACCOUNTANTS |
|
|
| BANKERS |
|
| PRIME
COMMERCIAL BANK LIMITED |
|
| GULF
COMMERCIAL BANK LIMITED |
|
|
| REGISTERED
OFFICE & |
|
| SHARES
DEPARTMENT |
|
| 42
- LAWRENCE ROAD, |
|
| LAHORE. |
|
| TEL:
(92-042)-6302261 - 62 |
|
| FAX:
(92-042)-6368721 |
|
|
| PROJECT |
|
| 8TH
KILOMETRE, MANGA RAIWIND ROAD, |
|
| DISTRICT
KASUR. |
|
| TEL:
(92-04951)-391941-45 |
|
| FAX:
(92-04951)-391948 |
|
|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
|
| Notice
is hereby given that the 8th Annual General Meeting of the members of
Kohinoor Genertek |
|
| Limited
will be held on Wednesday, December 20, 2000 at 11.00 a.m. at its Registered
Office, 42- |
|
| Lawrence
Road, Lahore, to transact the following business :- |
|
|
| 1.
To confirm the minutes of the Extra-Ordinary General Meeting held on May 30,
2000. |
|
|
| 2.
To receive, consider and adopt the audited accounts of the Company for the
year ended June 30, |
|
| 2000
together with the Directors' and Auditors' reports thereon. |
|
|
| 3.
To approve the payment of final cash dividend @ Rs. 1.75 per share of Rs.
10/- each (17.5%), for |
|
| the
year ended June 30, 2000, as recommended by the Directors. |
|
|
| 4.
To appoint Auditors and fix their remuneration. M/s. Avais Hyder Zaman
Rizwani Chartered |
|
| Accountants,
the retiring auditors, being eligible offer themselves for re-appointment. |
|
|
| 5.
To transact any other business with the permission of the Chair. |
|
|
|
BY ORDER OF THE BOARD, |
|
|
| Lahore
· November 29, 2000. |
|
(MUHAMMAD ASHRAF) |
|
|
Company Secretary |
|
| NOTES: |
|
|
| 1.
The share transfer books of the Company shall remain closed from December 14,
2000 to |
|
| December
20, 2000 (both days inclusive) and no transfer will be accepted during this
period. The |
|
| members
whose names appear in the register of members as at the close of business on |
|
| December
13, 2000 will qualify for the payment of cash dividend. |
|
|
| 2.
A member entitled to vote at this meeting is entitled to appoint another
member as proxy. Proxies |
|
| in
order to be effective must be received at 42-Lawrence Road, Lahore, the
Registered Office of the |
|
| Company
not less than 48 hours before the meeting and must be duly stamped, signed
and |
|
| witnessed. |
|
|
| 3.
Any individual Beneficial Owner of CDC, entitled to attend and vote at this
meeting, must bring |
|
| his/her
NIC or Passport to prove his/her identity, and in case of Proxy, must enclose
an attested |
|
| copy
of his/her NIC or Passport. Representatives of corporate members should bring
the usual |
|
| documents
required for such purpose. |
|
|
| 4.
Shareholders are requested to promptly notify the Company of any change in
their addresses. |
|
|
|
| DIRECTORS'
REPORT TO THE SHAREHOLDERS |
|
|
| The
directors of your company would like to present their report along with
audited accounts and |
|
| auditors
report thereon for the year ended 30th June 2000. |
|
|
| FINANCIAL
AND OPERATING RESULTS |
|
| Your
companys operations for the year resulted in an after tax profit of Rs.
59.706 million against an |
|
| after
tax profit of Rs. 50.177 million last year, indicating an impressive increase
of 19.00%. The gross |
|
| profit
margin has been reduced by 12.86% i.e. from 32.35% last year to 19.49% for
the current year. The |
|
| only
contributing factor to this drastic reduction in the gross profit of the
Company is the inflationary |
|
| trend
in the petroleum products in our country as well as in the international
markets. The average |
|
| increase
in the prices of Heavy Furnace Oil, which is our basic raw material, was
29.41% during the |
|
| period
under review. However, the other manufacturing expenses remained within the
limits set by the |
|
| management. |
|
|
| Due
to the better financial planning by the management, financial charges have
shown a considerable |
|
| reduction
from Rs. 19.270 million for last year to Rs. 11.187 million for the current
year, showing a |
|
| decrease
of 42% over the last year. |
|
|
| During
the last year a provision of Rs. 44.400 million for diminution in the value
of investment was |
|
| provided
to comply with the requirements of the law. However, during the year under
review, due to the |
|
| better
performance of the stock market and the investee company an amount of Rs.
12.750 million |
|
| representing
the appreciation in the value of investment had been incorporated in the
accounts. |
|
|
| Overall
performance of the production facilities remained satisfactory. The Company
generated 122,767 |
|
| MWh
during the year as compared to 117,152 MWh last year showing an increase of
4.79%. During the |
|
| year.
All the periodic maintenance were smoothly carried out as per specified
schedules of the |
|
| manufacturer. |
|
|
| DIVIDEND |
|
| Your
directors are pleased to recommend a cash dividend ~ 17.5% for the year under
review as |
|
| compared
to a cash dividend ~ 15% for the preceding year. |
|
|
| APPROPRIATIONS |
|
| Your
directors recommend the appropriation of profit as under: |
|
|
(Rupees in million) |
|
|
2000 |
1999 |
|
|
| Net
profit after taxation |
|
59.706 |
50.177 |
|
| Prior
year adjustments |
|
6.656 |
-- |
|
| Un
appropriated profit brought forward |
|
4.416 |
78.688 |
|
|
----------- |
----------- |
|
| Profit
available for appropriation |
|
70.778 |
128.87 |
|
| Appropriations: |
|
|
|
| Proposed
cash dividend ~ 17.5% (1999:15%) |
|
28.525 |
24.450 |
|
| Transferred
to general reserve |
|
40.000 |
100.000 |
|
|
----------- |
----------- |
|
|
68.525 |
124.450 |
|
|
----------- |
----------- |
|
| Un
appropriated profit carried forward |
|
2.253 |
4.416 |
|
|
========== |
========== |
|
| Earning
per share |
|
Rupees |
4.07 |
3.08 |
|
|
| FUTURE
PROSPECTS |
|
| With
the deregulation of the furnace oil prices and elimination of freight pool
system by the Government |
|
| of
Pakistan, prices of furnace oil have increased by almost 55 % since 1st July
2000. This will have a |
|
| substantial
impact on the .profitability of your company. While efforts to control
maintenance cost |
|
| continue,
the devaluation of Pak Rupee will effect cost of spare parts which are not
manufactured |
|
| locally.
Although subsequent to the reporting period, Electricity Tariff has been
marginally revised |
|
| upwards,
however, this increase does not counter the massive impact of increase in the
prices of |
|
| furnace
oil. Under the current scenario, the future profitability of the Company is
dependent on increase |
|
| in
Power tariff and/or reduction in furnace oil prices. |
|
|
| AUDITORS |
|
| The
auditors M/s Avais Hyder Zaman Rizwani, Chartered Accountants retire and
being eligible offer |
|
| themselves
for re-appointment. |
|
|
| PATTERN
OF SHARE HOLDING |
|
| The
pattern of share holdings as required by Section 236 of the Companies
Ordinance, 1984 is being |
|
| annexed
herewith. |
|
|
| ACKNOWLEDGEMENT |
|
| The
Directors place on record their appreciation for the dedicated efforts made
by the staff and the |
|
| executives
of the Company and hope that the same spirit of devotion and dedication will
continue in |
|
| future. |
|
|
|
For and on behalf of the
Board |
|
| Lahore, Thursday, November 23,
2000. |
|
(SARMAD AMIN) |
|
|
Chief Executive |
|
|
|
| PATTERN
OF SHARES HELD BY THE SHAREHOLDERS |
|
| AS
AT 30 JUNE 2000 |
|
|
| NO. OF |
SHAREHOLDING |
TOTAL |
|
| SHAREHOLDERS |
FROM |
TO |
SHARES HELD |
|
|
| 12 |
1 |
100 |
600 |
|
| 1,806 |
101 |
500 |
898,400 |
|
| 139 |
501 |
1,000 |
138,300 |
|
| 226 |
1,001 |
5,000 |
642,100 |
|
| 56 |
5,001 |
10,000 |
449,700 |
|
| 22 |
10,001 |
15,000 |
259,200 |
|
| 9 |
15,001 |
20,000 |
164,000 |
|
| 8 |
20,001 |
25,000 |
183,500 |
|
| 5 |
25,001 |
30,000 |
140,500 |
|
| 3 |
30,001 |
35,000 |
94,500 |
|
| 11 |
35,001 |
40000 |
433,000 |
|
| 5 |
45,001 |
50,000 |
246.00 |
|
| 1 |
50,001 |
55,000 |
53,500 |
|
| 3 |
55,001 |
60,000 |
175,500 |
|
| 1 |
60,001 |
65,000 |
60,500 |
|
| 2 |
75,001 |
80,000 |
156,000 |
|
| 1 |
80,001 |
85,000 |
82,000 |
|
| 2 |
85,001 |
90,000 |
177,500 |
|
| 3 |
95,001 |
100,000 |
299,500 |
|
| 1 |
140,001 |
145,000 |
142,200 |
|
| 1 |
200,001 |
205,000 |
202,000 |
|
| 1 |
235,001 |
240,000 |
240,000 |
|
| 1 |
395,001 |
400,000 |
400,000 |
|
| 1 |
550,001 |
555,000 |
553,000 |
|
| 1 |
890,001 |
895,000 |
893,500 |
|
| 1 |
995,001 |
1,000,000 |
1,000,000 |
|
| 1 |
1,090,001 |
1,095,000 |
1,095,000 |
|
| 1 |
2,040,001 |
2,045,000 |
2,043,300 |
|
| 1 |
2,155,001 |
2,160,000 |
2,156,000 |
|
| 1 |
2,920,001 |
2,925,000 |
2,920,700 |
|
| ---------- |
---------- |
---------- |
---------- |
|
|
2,326 |
T O T A L |
16,300,000 |
|
| ========= |
========= |
========= |
========= |
|
| Note:
The slabs not applicable have not been shown. |
|
|
| SHAREHOLDERS |
Number of |
Number of |
Percentage of |
|
| CATEGORIES |
Shareholders |
shares held |
Issued Capital |
|
|
| Individuals |
|
2,291 |
3,952,200 |
24.247 |
|
| Investment
Companies |
7 |
1,409,000 |
8.644 |
|
| Joint
Stock Companies |
20 |
9,318,700 |
57.170 |
|
| Financial
Institutions |
1 |
10,400 |
0.064 |
|
| Modaraba |
|
2 |
25,000 |
0.153 |
|
| Foreign
Investors |
5 |
1,584,700 |
9.722 |
|
|
---------- |
---------- |
---------- |
|
| GRAND
TOTAL |
2,326 |
16,300,000 |
100.000 |
|
|
========= |
========= |
========= |
|
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of KOHINOOR GENERTEK LIMITED as at 30
June, |
|
| 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 purpose 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 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 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 30 June 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. |
|
|
| Date:
November 23, 2000. |
|
(AVAIS HYDER ZAMAN
RIZWANI) |
|
| Place:
Lahore. |
|
CHARTERED ACCOUNTANTS |
|
|
|
| BALANCE
SHEET AS AT 30 JUNE 2000 |
|
|
|
|
2000 |
1999 |
|
|
Note |
Rupees |
Rupees |
|
|
| SHARE
CAPITAL AND RESERVES |
|
| Authorised
capital |
|
| 30,000,000
Ordinary shares of Rs. 10 each |
|
300,000,000 |
300,000,000 |
|
|
========== |
========== |
|
| Issued
subscribed and paid-up capital |
|
3 |
163,000,000 |
163,000,000 |
|
| Reserves |
|
4 |
238,000,000 |
198,000,000 |
|
| Unappropriated
profit |
|
|
2,252,720 |
4,415,746 |
|
|
|
|
|
|
403,252,720 |
365,415,746 |
|
| DEFERRED
LIABILITY - Gratuity |
|
5 |
847,199 |
705,557 |
|
|
| CURRENT
LIABILITIES |
|
| Current
portion of long term loans |
|
-- |
28,784,176 |
|
| Short
term finance - Secured |
|
6 |
46,594,302 |
65,506,611 |
|
| Creditors,
accrued and other liabilities |
|
7 |
8,607,088 |
13,695,978 |
|
| Taxation |
|
|
342,242 |
825,938 |
|
| Dividend |
|
8 |
29,878,854 |
25,571,748 |
|
|
------------ |
------------ |
|
|
85,422,486 |
134,384,451 |
|
|
| CONTINGENCIES
AND COMMITMENTS |
9 |
-- |
-- |
|
|
------------ |
------------ |
|
|
489,522,405 |
500,505,754 |
|
|
========== |
========== |
|
| FIXED
CAPITAL EXPENDITURE |
|
| Operating
fixed assets - tangible |
|
10 |
345,589,714 |
363,752,328 |
|
| Capital
work-in-progress |
|
11 |
-- |
769,687 |
|
|
|
------------ |
------------ |
|
|
|
345,589,714 |
364,522,015 |
|
|
|
|
|
| LONG
TERM INVESTMENT |
|
12 |
29,250,000 |
16,500,000 |
|
|
|
|
|
| LONG
TERM DEPOSITS AND |
|
|
|
|
| DEFERRED
COST |
|
13 |
300,000 |
1,874,557 |
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
|
| Stores,
spares and loose tools |
|
14 |
29,162,452 |
31,932,755 |
|
| Stock
of oil and lubricants |
|
15 |
23,612,277 |
15,085,293 |
|
| Trade
debts - unsecured |
|
16 |
49,990,738 |
39,216,146 |
|
| Advances,
deposits, prepayments |
|
|
|
|
| and
other receivables |
|
17 |
6,470,018 |
27,662,520 |
|
| Cash
and bank balances |
|
18 |
5,147,206 |
3,712,468 |
|
|
------------ |
------------ |
|
|
114,382,691 |
117,609,182 |
|
|
------------ |
------------ |
|
|
489,522,405 |
500,505,754 |
|
| The
annexed notes form an integral part of these accounts. |
|
========== |
========== |
|
|
|
SARMAD AMIN |
|
USMAN SAID |
|
|
Chief Executive |
|
Director |
|
|
|
| PROFIT AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED 30 JUNE 2000 |
|
|
|
|
2000 |
1999 |
|
|
Note |
Rupees |
Rupees |
|
|
| Sales |
|
19 |
399,953,019 |
400,760,331 |
|
| Cost
of generation |
|
20 |
321,987,905 |
271,109,193 |
|
|
|
------------ |
------------ |
|
| Gross profit |
|
|
77,965,114 |
129,651,138 |
|
| Administrative
and selling expenses |
|
21 |
7,923,065 |
6,839,590 |
|
|
|
------------ |
------------ |
|
| Operating
profit |
|
|
70,042,049 |
122,811,548 |
|
| Other
income |
|
22 |
1,091,183 |
3,959,729 |
|
|
|
------------ |
------------ |
|
|
|
71,133,232 |
126,771,277 |
|
| Provision
for appreciation/(diminution) in value of investments |
12,750,000 |
(44,400,000) |
|
|
|
------------ |
------------ |
|
| Financial
and other charges |
|
23 |
15,512,054 |
24,473,279 |
|
| Amortisation
of deferred cost |
|
|
1,574,557 |
4,210,349 |
|
| Workers'
profit participation fund |
|
|
3,672,619 |
2,684,383 |
|
|
|
------------ |
------------ |
|
|
|
20,759,230 |
31,368,011 |
|
|
|
------------ |
------------ |
|
| Profit
before taxation |
|
|
63,124,002 |
51,003,266 |
|
| Taxation |
|
24 |
3,417,795 |
825,938 |
|
|
|
------------ |
------------ |
|
| Profit
after taxation |
|
|
59,706,207 |
50,177,328 |
|
| Prior
year adjustments |
|
25 |
6,655,767 |
-- |
|
|
|
------------ |
------------ |
|
|
|
66,361,974 |
50,177,328 |
|
| Unappropriated
profit brought forward |
|
|
4,415,746 |
78,688,418 |
|
|
|
------------ |
------------ |
|
| Profit
available for appropriation |
|
|
70,777,720 |
128,865,746 |
|
| Appropriations: |
|
|
|
|
| Transfer
to general reserve |
|
|
40,000,000 |
100,000,000 |
|
| Final
proposed dividend @ Rs. 1.75 (1999 · Rs. 1.50) per share |
28,525,000 |
24,450,000 |
|
|
|
------------ |
------------ |
|
|
|
68,525,000 |
124,450,000 |
|
|
|
------------ |
------------ |
|
| Unappropriated
profit carried forward |
|
|
2,252,720 |
4,415,746 |
|
|
|
|
========== |
========== |
|
| Earning
per share |
|
26 |
4.07 |
3.08 |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
SARMAD AMIN |
|
USMAN SAID |
|
|
Chief Executive |
|
Director |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED 30 JUNE 2000 |
|
|
|
2000 |
1999 |
|
|
Rupees |
Rupees |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| Profit
for the year |
|
63,124,002 |
51,003,266 |
|
| Add/(Less)
adjustment for non cash charges and other items |
|
|
| Depreciation |
|
38,457,331 |
40,462,302 |
|
| Amortisation
of deferred costs |
|
1,574,557 |
4,210,349 |
|
| Profit
on disposal of fixed assets |
|
(143,238) |
(207,120) |
|
| Financial
charges |
|
11,187,032 |
19,269,865 |
|
| Provision
for gratuity |
|
273,867 |
200,669 |
|
| (Appreciation)/diminution
in investment |
|
(12,750,000) |
44,400,000 |
|
| Exchange
loss |
|
4,325,022 |
5,203,414 |
|
| Prior
year adjustments |
|
6,655,767 |
-- |
|
|
------------ |
------------ |
|
| Cash
flow from operating activities |
|
| before
working capital changes |
|
112,704,340 |
164,542,745 |
|
|
| (Increase)/decrease
in current assets |
|
|
| Stores,
spares and lose tools |
|
2,770,303 |
5,913,833 |
|
| Stock
of oil and lubricants |
|
(8,526,984) |
(2,820,467) |
|
| Trade debts |
|
(10,774,592) |
(1,588,322) |
|
| Advances,
deposits, prepayments and |
|
|
|
| other
receivables |
|
21,192,503 |
50,883,109 |
|
|
|
|
| Increase/(decrease)
in current liabilities |
|
|
|
| Short
term running finances- secured |
|
(18,912,309) |
(12,087,400) |
|
| Creditors,
accrued and other liabilities |
|
(4,318,356) |
(13,801,422) |
|
|
------------ |
------------ |
|
| Effect
on cash flow due to working capital changes |
|
(18,569,435) |
26,499,331 |
|
|
|
------------ |
------------ |
|
| Cash
flow from operating activities |
|
94,134,905 |
191,042,076 |
|
