Welcome to PakSearch.com Pakistan's Premier Business Information
Service


For business information, annual reports, laws, ordinances, regulations and articles.




Google
 
Web Paksearch.com
Khairpur Sugar Mills Limited
Annual Report 2000
CONTENTS
COMPANY PROFILE
NOTICE OF ANNUAL GENERAL MEETING
DIRECTORS' REPORT
AUDITORS' REPORT
BALANCE SHEET
PROFIT AND LOSS ACCOUNT
CASH FLOW STATEMENT
NOTES TO THE ACCOUNTS
PATTERN OF SHAREHOLDING
COMPANY PROFILE
BOARD OF DIRECTORS MUHAMMAD MUBEEN JUMANI-Chief Executive
MUHAMMAD BUX
GHULAM ALI
AHMED ALI
GHULAM HUSSAIN
MRS. YASMEEN
MRS. AFROZE
SHAMSUDDIN KHAN (N.I.T. NOMINEE)
COMPANY SECRETARY MR. MIR SARWAR ALI
BANKERS UNITED BANK LIMITED.
ALLIED BANK OF PAKISTAN LIMITED.
HABIB BANK LIMITED
NATIONAL BANK OF PAKISTAN
INDUS BANK LIMITED.
MUSLIM COMMERCIAL BANK LIMITED.
AUDITORS EBRAHIM & COMPANY
CHARTERED ACCOUNTANTS,
Lakson Square, Building No. 1,
Block-C, 2nd Floor, Sarwar Shaheed Road,
Karachi - 74200.
LEGAL ADVISORS MIRZA GHULAM DASTAGIR (ADVOCATE)
Falak Numa Building
Abdullah Haroon Road, Karachi.
REGISTERED OFFICE JUMANI ARCADE, ST - 10-D/14,
UNIVERSITY ROAD,
KARACHI.
FACTORY Naroo Dhoro
Taluka Kot-Diji,
KHAIRPUR
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the 11th Annual General Meeting of the KHAIRPUR SUGAR MILLS LIMITED,
will be held on 30th day, April, 2001 at 3.30 p.m. at the Registered Office of he Company at Jumani
Arcade, ST-10-D/14, Main University Road, Karachi, to transact the following business.
1. To confirm the minutes of the 10th Annual General Meeting held on 25th April, 2000.
2. To receive, consider and adopt the Balance Sheet, Profit and Loss Account together
with Directors' and Auditors' report thereon for the year ended 30th September, 2000.
3. To appoint Auditor for the next financial year and to fix their remuneration. The present
Auditors, M/S Ebrahim & Co., Chartered Accountants, retire and being eligible have
offered themselves for re-appointment.
4. To transact any other business with the permission of the Chair.
BY ORDER OF THE BOARD
Dated: 7th April 2001 (MIR SARWAR ALI)
KARACHI. COMPANY SECRETARY
NOTES:
1. The Share Transfer Books of the Company will remain closed from 22nd April 2001,30th April,
2001 (both days inclusive).
2. A member entitled to attend and vote at the Annual General Meeting may appoint another
member as his / her proxy to attend the meeting and vote on his/her behalf. Proxy in order to be
effective must be received at the Registered Office of the Company at the least 48 hours before
the meeting.
3. Shares holders are requested to immediately notify the Company of any change in their address
to ensure prompt delivery of mail.
DIRECTORS' REPORT TO THE SHAREHOLDERS
Your Directors feel pleasure in presenting the 11TM Annual Report and Audited Accounts together with
the Directors' Report for the year ended September 30, 2000.
OPERATIONAL PERFORMANCE
A) FINANCIAL RESULTS 1999-2000 1998-1999
Operating Profit/(Loss) (44,732,815) 24,239,741
Other Income 1,813,926 155,585
Financial Charges 110,352,897 59,229,879
Net Loss Before Taxation (153,271,786) (34,834,553)
Provision For Taxation -- 949,930
Net Loss After Taxation (153,271,786) (35,784,483)
Accumulated Losses Brought Forward (215,692,889) (179,908,406)
Losses Carried To Balance Sheet (368,964,675) (215,692,889)
B) PERFORMANCE REVIEW
Operating Results of the Company during the Season 1999-2000 are as under:
1999-2000 1998-1999
Season Started 05-11-1999 13-11-1998
Season Closed 28-02-2000 20-03-1999
No. of Days 117 128
Sugarcane Crushing (M.Tons) 261,583.00 405,685.00
Recovery (%) - Sugar 8.28% 8.18%
Recovery (%) - Molasses 4.75% 4.77%
Production - Sugar 21,664.50 33,200.50
Production - Molasses 12,424.00 19,330.00
Before evaluating the overall performance of the Company; it would not be out of place to mention here
that the year under review remained full of bottlenecks. There was overall shortfall in the sugarcane crop
during the season 1999-2000 as compared to last year, particularly in the province of Sindh. This was
due to acute shortage of irrigation water, drought and intense cyclone in cane growing areas of lower
Sindh affecting the overall yield of Sugarcane. This resulted in cutthroat competition and tug of war
amongst the Mill Owners for procurement of even inferior quality of Sugarcane at exorbitant prices to
feed their Mills. This has left the Management of your Company with no other alternative, but to purchase
the raw materials at prevailing market rates resulting in higher cost of production. Overhead charges
have also increased due to increase in cost of furnace oil and other material required for the Mills
Operation, which has recently witnessed upward trend. These factors alongwith the non-availability of
working capital have compelled your Company for distress sale of sugar contributing towards substantial
adverse impact on the profitability of the Company. We crushed 261,582.788M.Tons of Cane as compared
to 405,685.000M.Tons last year due to shortage of sugarcane crop, which was beyond control of your
Directors. The comparative figures stated above reflect that the Company achieved 64.5% of the
production as compared to last year, which shows the deteriorating state of affairs of Sugar sector.
Molasses production was 12,424.000M.Tons as compared to last year 19,330.000M.Tons. The percentage
of Molasses has also decreased from 4.765 to 4.750.
The support price of Rs.36/- per 40kg of the sugarcane for the Season 1999-2000 fixed by the Government
was not accepted by growers as they charged more. Even for the ensuing Season of 2000-2001 this
problem continued and remained unsolved. Recently tripartite discussions were held among the Growers,
Government and Mill Owners with no tangible results at the end of the day. In the mean time there was
tough competition among the Millers for purchase of Sugarcane from the area other than that adjoining
their Sugar Mills at the rates higher than fixed by Government. This situation benefited the growers who
charged price of cane at higher rate to the great loss of the Sugar Mills. This obviously resulted in high
cost of production and lower price of sugar in the open market due to distress sale by Mills to meet their
emergent expenditure.
SALES
During the Season 1999-2000 prices of sugar and molasses remained lower and jumped after wards but
we had no capacity to stock sugar stagger its sale for better price for lack of working capital and hence
were obliged to sell sugar at the prevailing lower competitive price, which has badly affected the profitability
of the Company. It is hoped that prices of Sugar will certainly increase in future, once the recessionary
conditions are over internationally. Your Company remained under pressure to dispose off the entire
stock of sugar even at the lower prevailing price in the market in order to run the affairs of the Company
and meet its day-to-day funds requirements. This situation arose due to the non-availability of necessary
working capital restricting us to remain within the domain of already stringent Cash Flow of the Company.
RE-SCHEDULING OF LOANS
Your Company has recently been successful in managing the outstanding loan Re-structuring Package
recommended by the Sick Industrial Units Rehabilitation Committee, which includes the total outstanding
loan of BEL, PICIC and Banks. According to agreed arrangements the Company would now be required
to pay total liability as on 31-12-2001 in 20 biannual equal installments without any future markup. PICIC
has agreed for deferment by one year and their installments will start from March 2002. We expect that
BEL will also agree to the deferment for which we have requested them PICIC and UBL have also
agreed for working capital loan of Rs.50(M) each. picic has restricted the total liability figure to 285(M)
as against 369(M), which they had mentioned in their suit filed with the Honourable High Court of Sindh.
As regards the outstanding Agricultural Growers' Loan of MCB amounting to Rs.10.000(M), the bank has
converted the same into interest free Demand Finance payable in equal bi-annual installments of Rs.5.0(M)
each in the light of the compromise decree of the Honourable High Court of Sindh. The outstanding Agriculture
Growers' Loan of the ABL amounting to Rs.20.000(M) and that of UBL for Rs.10.000(M) plus markup will be
paid as per rescheduled approved Package.
REASON FOR LOSSES
Your directors would like to mention here that our operational and mechanical performance remained satisfactory
during the season but the current crisis of low capacity utilization of sugar plant during the last few years; is
mainly attributable to shortage of raw material in the shape of Sugarcane throughout the country particularly
upper Sindh area. It is worth mentioning here that only 46 tons of sugarcane per Hectare as compared to 68
tons per Hectare in neighbouring India were produced during 1999-2000season, which resulted into lower yield
of cane crop than expected. This also didn't help in increasing the crushing capacity of Sugar Mills. Our Mills
is situated in upper Sindh, where Recovery Rate of sucrose is very low i.e. 8% as compared to that of lower
Sindh which is averagely 9.5% to 10%. Third major reason for losses is non-availability of working capital
financing, which has compelled us to the distress sale of sugar even at lower rate to make payment to cane
growers and meet other essential expenditure on priority basis. Due to shortage of Sugarcane most of the
growers are demanding cash payment even before delivery.
FUTURE PROSPECTS
Despite scarcity in supply of good quality sugarcane, your Mills managed to start the crushing of sugarcane
on 03-11-2000 and crushed 246,742.225Metric Tons of cane upto 30-03-2001 producing 19,590.500Metric
Tons of Sugar. It is a matter of pleasure that at last Government has realized the grave situation that is
presently being faced by the sugar industry and have started taking interest in improving the condition of-
sugar industry by formulating a new sugar policy, which will hopefully help in resolving, to a greater extent, the
present crisis with which the industry is confronted with.
It is a considered opinion that 20% increase in the yield of sugarcane with the help of extensive research work
to be undertaken would increase the production and quality of cane in the country. The ensuing Khareef
season for 2000-2001 is not encouraging as there being shortage of irrigation water lesser area is likely to
come under cane cultivation. This being a very unhappy situation, the crop of sugarcane for the ensuing year
is again going to be in a problem unless remedial measures are taken in time to increase the quality and yield
of the cane to compensate its shortage.
DIVIDENDS
In view of accumulated losses your directors don't propose to have any dividend declaration.
AUDIT OBSERVATION
Our comments on the Auditors' observations are as follows:
1. The Management of your Company is of the considered opinion that the settlement of the Company's
financial obligations with Banks and financial institutions as explained above and in notes of the
accounts, the Company will be a going concern.
2. The resolution of disputes with lenders shall ensure that the amounts are finally settled on the basis
of the compromise decree and rescheduling package.
LABOUR MANAGEMENT RELATIONS
The directors wish to place on record their appreciation of the dedication, hard work and efficient services
rendered by the executives, officers, staff members and employees specially the labour for their devotion,
sense of responsibility and loyalty in promoting the Company's objectives during the year under review.
AUDITORS
The Company's Auditor M/s. Ebrahim & Co., Chartered Accountants, now retire and being eligible to offer
themselves for reappointment.
PATTERN OF SHARE HOLDING
The pattern of shareholding as per Form-34 is attached herewith.
ON BEHALF OF THE BOARD OF THE DIRECTORS
KARACHI MUHAMMAD MUBEEN JUMANI
Dated: March 31,2001 Chief Executive
AUDITORS' REPORT TO THE MEMBERS
We have audited the annexed balance sheet of KHAIRPUR SUGAR 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 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 above said statements. We believe that our audit provides a reasonable basis for our opinion,
and after due verification, we report that:
4. The Company does not acknowledge the claims of financial institutions as explained in note 10.1 (a) on
the grounds that amounts are payable as per the principal determined in decree passed by High Court
of Sindh and the claims are without any basis. Negotiations with financial institutions are in process for
settlement of dues at amounts acknowledged by the Company. In case the management is not successful
in their efforts there would be additional liability and corresponding charge against profit amounting to
Rs. 307.444 million.
2. The accumulated losses of the Company aggregating to Rs. 368.965 million have wiped out the equity
and current liabilities aggregating to Rs. 501.426 million exceed the current assets by Rs. 454.924
million. The lenders have also filed suits for recovery of their dues as stated more fully in note 10.1 (a).
These matters together with the fact that the operating results of the Company are adverse indicate
that the Company may not be able to continue as a going concern. As stated in note 1.2 the management
is confident that the disputes with lenders shall be resolved out of court and working capital finance
shall be available. In the event the management is not successful in their efforts the going concern
assumption would not be valid and adjustments may be required to the recorded asset amounts and
classification of liabilities.
3. We have placed reliance on management representation regarding payments made to growers
amounting to Rs. 34~059 million for field development expenses.
Except for the adjustments, if any, in respect of matters stated above:
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
the business conducted, investments made and the expenditure incurred during the year
were in accordance with the objects of the Company;
c) Except for the matters referred above, 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 loss, its cash flows and changes in equity
for the year then ended; and
d) in our opinion, no Zakat was deductible at source under the Zakat and Ushr Ordinance, 1980.
CHARTERED ACCOUNTANTS
KARACHI
Dated: April 7, 2001
BALANCE SHEET AS AT SEPTEMBER 30, 2000
2000 1999
NOTE RUPEES RUPEES
SHARE CAPITAL AND RESERVE
Authorised Capital 200,000,000 200,000,000
========== ==========
Issued, subscribed and
paid-up-capital 4 160,175,000 160,175,000
Profit and loss account
(Adverse balance) (368,964,675) (215,692,889)
----------- -----------
(208,789,675) (55,517,889)
REDEEMABLE CAPITAL 5 18,526,000 18,526,000
LONG TERM LOANS 6 324,744,785 396,439,198
DEFERRED LIABILITY 7 6,478,596 4,711,269
CURRENT LIABILITIES
Current portion of redeemable capital
and long tem loans 180,298,067 128,181,007
Short term loans and borrowing 8 30,000,000 35,000,000
Creditors, accrued and other liabilities 9 290,177,995 184,272,130
Provision for taxation 949,930 949,930
----------- -----------
501,425,992 348,403,067
----------- -----------
CONTINGENCIES AND COMMITMENTS 10
642,385,698 712,561,645
========== ==========
TANGIBLE FIXED ASSETS 11 595,604,069 622,996,556
LONG TERM DEPOSITS
Security deposits 279,700 310,071
DEFERRED COST 12 -- 480,527
CURRENT ASSETS
Stores and spares 13 27,646,227 31,320,159
Stock in trade 14 1,227,934 682,150
Trade debts (Unsecured-considered good) 42,150 51,840
Advances deposits, prepayments
and other receivables 15 17,149,499 53,913,253
Cash and bank balances 16 436,119 2,807,089
----------- -----------
46,501,929 88,774,491
----------- -----------
642,385,698 712,561,645
========== ==========
NOTE: The annexed notes form an integral part of these accounts.
KARACHI MUHAMMAD MUBEEN JUMANI MUHAMMAD BUX
Dated: April 7, 2001 Chief Executive Director
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED SEPTEMBER 30, 2000
2000 1999
NOTE RUPEES RUPEES
Sales 17 330,150,009 529,667,885
Cost of Sales 18 351,506,237 460,913,642
----------- -----------
Gross (loss)/profit (21,356,228) 68,754,243
Administrative expenses 19 21,236,002 24,345,030
Selling and distribution expenses 20 2,140,585 20,169,472
----------- -----------
23,376,587 44,514,502
----------- -----------
Operating (Loss)/profit (44,732,815 ) 24,239,741
Other income 21 1,813,926 155,585
----------- -----------
(42,918,889 ) 24,395,326
Financial charges 22 110,352,897 59,229,879
----------- -----------
Net (loss) before taxation (153,271,786) (34,834,553)
Provision for taxation
- Current -- 949,930
----------- -----------
Net (loss) after taxation (153,271,786 ) (35,784,483)
Accumulated losses brought forward (215,692,889 ) (179,908,406)
Accumulated losses carried over to ----------- -----------
balance sheet (368,964,675) (215,692,889)
========== ==========
Earning pre share - basic and diluted 29 (9.57) (2.23)
========== ==========
NOTE: The annexed notes form an integral part of these accounts.
KARACHI MUHAMMAD MUBEEN JUMANI MUHAMMAD BUX
Dated: April 7, 2001 Chief Executive Director
CASH FLOW STATEMENT
FOR THE YEAR ENDED SEPTEMBER 30, 2000
2000 1999
RUPEES RUPEES
CASH FLOW FROM OPERATING ACTIVITIES
Net loss for the year before taxation (153,271,786 ) (34,834,553)
Adjustment for:
Financial charges 110,352,897 59,229,879
Amortisation of deferred cost 480,527 1,153,267
Depreciation 27,833,764 31,566,115
Gratuity (net) 1,767,327 85,905
Gain on sale of fixed assets (1,595,556) (20,240)
Provision for obsolescence 1,101,856 --
------------ ------------
(13,330,971) 57,180,373
Decrease/(Increase) in current assets
Stores and spares 2,572,076 (12,431,887)
Stock in trade (545,783 3,814,152
Trade debts 9,690 50,000
Advances, deposits, prepayments and
other receivables 36,807,282 (25,123,883
------------ ------------
38,843,265 (33,691,61 8 )
Increase in current liabilities
Creditors, accrued and other liabilities 16,953,009 16,209,868
------------ ------------
Net cash from operating activities
before tax and financial charges 42,465,303 39,698,623
Taxes paid (43,529) (226,352)
Financial charges paid (21,400,041) (13,077,363)
------------ ------------
Net cash from operating activities 21,021,733 26,394,908
CASH FLOW FROM INVESTING ACTIVITIES
Addition to fixed assets (3,842,721) (6,200,056)
Proceeds from sale of fixed assets 4,997,000 58,000
Long term deposit 30,371 --
------------ ------------
Net cash from investing activities 1,1 84,650 (6,142,056 )
CASH FLOW FROM FINANCING ACTIVITIES
Short term loans and borrowings (5,000,000) (35,000,000)
Long term loans (19,577,353 ) --
Redeemable capital -- 17,007,481
------------ ------------
Net cash from financing activities (24,577,353) (17,992,519 )
Net (decrease)/increase in cash and ------------ ------------
cash equivalents (2,370,970) 2,260,333
Cash and cash equivalents
at the beginning of the year 2,807,089 546,756
------------ ------------
Cash and cash equivalents
at the end of the year 436,119 2,807,089
========== ==========
KARACHI MUHAMMAD MUBEEN JUMANI MUHAMMAD BUX
Dated: April 7, 2001 Chief Executive Director
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED SEPTEMBER 30, 2000
Share Accumulated Total
Capital losses
--------------------(Rupees)-----------------------
Balance as at October 1, 1998 160,175,000 (179,908,406) (19,733,406)
Loss for the year -- (35,784,483) (35,784,483)
----------- ----------- -----------
Balance as at September 30, 1999 160,175,000 (215,692,889) (55,517,889)
Loss for the year -- (153,271,786) (153,271,786)
----------- ----------- -----------
Balance as at September 30, 2000 160,175,000 (368,964,675) (208,789,675)
========== ========== ==========
KARACHI MUHAMMAD MUBEEN JUMANI MUHAMMAD BUX
Dated: April 7, 2001 Chief Executive Director
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED SEPTEMBER 30, 2000
1. NATURE AND STATUS OF BUSINESS
1.1 The Company was incorporated in Pakistan on August 23, 1989 as a public limited company
under the Companies Ordinance, 1984 and its shares are quoted on the Karachi Stock
Exchange. The principal activity of the Company is the production and sale of sugar.
1.2 The ability of the Company to continue as a going concern is dependent on the ability of the
management to successfully resolve the disputes with financial institutions explained in note
10.1 (a), secure adequate working capital facilities for the Company and to operate the project
profitably. The management expects that the disputes with financial institutions shall be resolved
in the best interest of the Company. Availability of further working capital shall allow the
management to operate profitably in the future.
The financial statements are prepared on going concern basis and, therefore, do not include
any adjustments relating to the recoverability and classification of recorded asset amounts
and classification of liabilities.
2. SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis of preparation
These financial statements have been prepared in accordance with requirements of the
Companies Ordinance, 1984 and International Accounting Standards as applicable in Pakistan.
2.2 Accounting convention
These accounts have been prepared under the historical cost convention without any
adjustments for the effect of inflation or current values.
2.3 Provision for gratuity
The Company operates an unfunded gratuity scheme for its employees. Provision is made annually
to cover obligations under the scheme.
2.4 Taxation
The Company is enjoying tax exemption for a period of eight years from March 01, 1995 being the
date of commencement of commercial production under clause 11 8(c) of Second Schedule of the
Income Tax Ordinance, 1979.
The Company accounts for deferred taxation for all material timing differences using the liability
method to the extent that liabilities can be estimated for the foreseeable future.
2.5 Tangible fixed assets
Operating tangible fixed assets except freehold land are stated at cost less accumulated depreciation.
Freehold land and capital work in progress are stated at cost.
Depreciation is charged using the reducing balance method by applying the normal rates. Full year's
depreciation is charged on additions during the year, except for plant and machinery on which
depreciation is charged on the basis of actual operating days. No depreciation is charged on assets
in the year of disposal.
Major renewals and improvements are capitalized and assets so replaced, if any, are retired. Gain or
loss on disposal of fixed assets is credited/charged to current year.
2.6 Deferred cost
These are being amortized over a period of five years commencing from the date of commencement
of commercial production.
2.7 Stores and spares
These are valued at average cost less provision for obsolescence.
2.8 Stock in trade
These are valued at lower of cost and net realisable value. Cost is determined as follows:
Raw material At average cost
Packing material At average cost
Stock in process At manufactured cost which includes cost of raw
material as determined above plus proportionate
production overheads.
Finished goods At manufactured cost which includes cost of raw
and packing material as determined above plus
proportionate production overheads.
Net realisable value represents estimated selling prices in the ordinary course of business less
expenses incidental to make the sale.
2.9 Rate of exchange
Assets and liabilities in foreign currency, if any, are translated into rupees at the exchange rate
prevailing on the balance sheet date except those covered by forward exchange contracts or
where exchange risk cover has been obtained. Exchange differences, if any, on transactions
during the year are recognised in income currently.
2.10 Revenue recognition
Sales are recorded on despatch of goods to customers.
2000 1999
RUPEES RUPEES
3. AUTHORISED CAPITAL
20,000,000 ordinary shares
of Rs. 10/- each 200,000,000 200,000,000
========== ==========
4. ISSUED, SUBSCRIBED AND
PAID - UP CAPITAL
16,017,500 ordinary shares of
of Rs. 10/- each fully paid in cash 160,175,000 160,175,000
========== ==========
5. REDEEMABLE CAPITAL
Secured
Syndicate led by Bankers
Equity Limited (BEL) (Note: 5.1)
Long term TFC's of United Bank
Limited 18,526,000 18,526,000
========== ==========
5.1 Banker Equity Limited (BEL) together with National Bank of Pakistan (NBP) and Habib
Bank Limited (HBL) filed a suit in Honourable High Court of Sindh in October 1997 for
recovery of outstanding principal, markup and charges of redeemable capital and long term
loans.
The company filed a counter suit against BEL in February 1999 for recovery of damages
amounting to Rs. 477.934 million on the ground that due to negligence and delayed
disbursement of sanctioned facilities by BEL, the Company suffered losses. As a result of
compromise between the Company and BEL, NBP and HBL, the decree was passed on the
following terms:
- Rs. 2.779 million each to be paid as full and final settlement of the claims of NBP
and HBL
- Rs. 299.472 million to be paid as per repayment schedule to BEL.
The amounts due to NBP and HBL as per the compromise decree have been paid by the
company.
On the basis of the principle determined in the above compromise, only purchase price of
first TFCs related to United Bank Limited (UBL) is being treated as outstanding and the
additional TFCs are treated as waived. UBL has filed suit for recovery of Rs. 55.044 million
against which the Company has filed application for leave to defend, as the claim of bank
is considered to be exorbitant and baseless. Negotiation with bank for rescheduling of
purchase price of first TFCs amounting to Rs. 33.051 million is in process and, therefore,
current maturity has not been computed. These are secured under a Trust deed creating a
registered mortgage of all present and future moveable and immovable properties of the
Company.
2000 1999
RUPEES RUPEES
6. LONGTERM LOANS
Secured
Bankers Equity Limited (BEL)
Term financing (Notes :5.1 & 6.1) 263,472,117 263,472,117
Muslim Commercial Bank
Long term demand finance (Note: 6.2) 15,000,000 30,000,000
Pakistan Industrial Credit and
Investment Corporation (PICIC)
Foreign currency loan - I
(Notes: 6.3 & 6.5) 109,327,897 113,905,250
Loan against capitalised interest
and charges (Notes: 6.4 & 6.5) 117,242,838 117,242,838
226,570,735 231,148,088
----------- -----------
505,042,852 524,620,205
Less: Current portion shown under
current liabilities (Note: 6.6) 180,298,067 128,181,007
----------- -----------
324,744,785 396,439,198
6.1 The term financing carries mark-up at 11% and is repayable in 12 half-yearly instalments
commencing from December 20, 1999 as per compromise decree issued by Honorable High
Court of Sind. The first instalment of principal amount is of Rs. 26.789 million and remaining 11
instalments are of Rs. 22.426 million each. The mark-up rate for the defaulted amount shall be
increased to 25% per annum from the date of default until payment.
The facility is secured by a mortgage of title deeds of all the movable and immovable properties
of the Company and registered hypothecation of plant, machinery and equipment and pledge of
sponsors shares certificates. Suit is also decreed for sale of mortgaged property with the stipulation
that such decree shall become executable in the event of default in repayment as per agreed
schedule.
6.2 This represents interest free demand finance facility converted from growers loan as per
compromise decree issued by the Honourable High Court of Sindh, Karachi. The balance amount
is payable in 4 equal half-yearly installments of Rs. 5.000 million each upto December 29, 2001.
Security arrangements with Bank are under negotiation.
6.3 This represents amount disbursed of US$ 4.901 million equivalent to Pak Rs. 118.254 million
against total sanctioned limit of US$ 4.912 million and capitalised charges outstanding but not
due as on September 1, 1996 amounting to Rs. 19.704 million, which PICIC has rescheduled vide
their letter No. PID/K-19/95 dated October 08, 1995. The liabilities under letters of credit (LC)
have been recognised at the rates prevailing at the time of establishment of LC for which exchange
cover was obtained at various rates ranging from Rs. 23.25 to Rs. 25.25 equivalent to US$ 1.
The loan carries interest from the commencement of the loan upto the date of its actual
reimbursement to the negotiating bank at the rate of 1% per annum above the prime rate of
interest applicable to US Dollars or at 15% per annum whichever is higher and thereafter at 15%
per annum. In the absence of dates of disbursements made by PICIC from negotiating bank and
prime rate of interest applicable to the US Dollar, provision for interest has been made at 15%
per annum. Interest at 21% per annum shall be charged on the amount in default till its clearance
as per the terms of rescheduling of loan.
The loan has been rescheduled by PICIC vide their letter No. SAMG-S2/K-3/98 dated November
21,1999, according to which 12 monthly instalments of Rs. 2.439 million cash is to be repaid with
effect from January 25, 1999 and thereafter 11 half-yearly instalments of Rs. 14.476 million each
commencing from June 15, 2000. Current maturity has been calculated on the basis of terms
mentioned in above restructuring arrangement. The entire arrangement shall be cancelled and
withdrawn in case of default in repayment of amount on due dates.
During the year PICIC has filed a suit for recovery of Rs. 355.371 million as per restructuring
agreement dated October 08, 1995.
Subsequent to the balance sheet date a compromise package has been agreed with PICIC. As
per compromise package a sum of Rs. 285.000 million is payable against a total sum of Rs.
369.123 million as at December 31, 2000 in twenty half yearly installments commencing from
March 01,2002.The package is agreed to be finalised through compromise decree by the Court
in favour of the Bank.
6.4 This represents capitalised interest, penal interest and charges outstanding and due as on
December 31,1997 in respect of foreign currency loan rescheduled by PICIC vide their letter no.
SAMG-S2/K-3/98 dated November 21, 1999. Repayment terms of this loan have not been provided
and, therefore, current maturity of this loan has not been given.
6.5 These facilities are secured against first charge by way of an equitable mortgage of all its
immovable properties, hypothecation of all its plant and machinery, a floating charge on all other
assets and demand promissory note..
6.6 This includes overdue balances amounting to Rs. 100.909 million (1999: Rs. 53.755 million).
2000 1999
RUPEES RUPEES
7. DEFERRED LIABILITY
Provision for gratuity 6,478,596 4,711,269
========== ==========
7.1 The potential deferred tax liability arising due to timing difference on account of accelerated
depreciation claimed under the Income Tax Rules amounts to approximately Rs. 49.917 million
(1999: Rs. 39.409 million) which has not been reflected in the accounts as the liability is not
expected to materialise in view of available losses, which are in process of being determined.
8. SHORT TERM LOANS AND BORROWINGS
Secured
Banking companies
Agricultural loans (Note 8.1) 30,000,000 35,000,000
========== ==========
8.1 The amount under this head represents loans procured through growers from banks for purchase
of seeds and fertilizers. The facilities have been given to the growers against continuing guarantee
of the Company and personal guarantees of the Chief Executive and Directors. The rates of mark-
up range between 17% and 20% per annum. The repayment terms with Banks are under negotiation.
9. CREDITORS, ACCRUED AND
OTHER LIABILITIES
Creditors 13,968,182 26,053,557
Accrued expenses 20,337,351 14,347,492
Advance from customers 78,197,574 57,088,297
Due to Associated Undertakings 374,864 1,919,030
Contractors retention money
- Associated Company 1,000,000 1,000,000
- Others 1,122,185 1,134,340
----------- -----------
2,122,185 2,134,340
Interest/mark-up accrued on secured
long term loans 153,279,286 67,641,677
Mark-up accrued on short term loans 9,813,327 6,860,900
Sales tax payable -- 81,519
Short term advance from others (Note :9.1) 755,104 --
Workers' profit participation fund (Note: 9.2) 3,628,207 3,265,386
Excise duty payable -- 3,449
Unclaimed staff dues 3,802,902 3,242,497
Transportation charges recovered from growers 3,790,999 1,530,307
Others 108,014 103,679
----------- -----------
290,177,995 184,272,130
========== ==========
9.1 This advance is unsecured and interest free.
2000 1999
RUPEES RUPEES
9.2 Worker's profit participation fund
Opening balance 3,265,386 2,902,565
Add: Interest credited at prescribed rates 362,821 362,821
----------- -----------
3,628,207 3,265,386
========== ==========
The Company retains the allocation to this fund for its business operations till the amounts are
paid to employees together with interest at prescribed rate under the Act.
10. CONTINGENCIES AND COMMITMENTS
10.1 Contingencies
a) Claims by Banks not acknowledged
i) There are contingent liabilities for following amount claimed by a financial institution and banks
as debts outstanding which the Company does not acknowledge on the basis of the principles
laid down in the compromise decree by the Honorable High Court of Sindh:
Amounts
(Rs. in million)
Bankers Equity Limited 184.891
United Bank Limited 21.992
Muslim Commercial Bank Limited 4.191
National Bank of Pakistan 7.970
Allied Bank Limited 1.248
In the opinion of the management, based on the opinion of legal advisor, the above balances are
not payable and the claims shall be withdrawn by the lender upon proper implementation of the
compromise decree by the Honorable High Court of Sindh.
BEL has filed execution of decree passed against the Company for an amount of Rs. 299.472
million with mark-up at 11 percent per annum. In case of default in payment of any installment the
mark-up rate for the defaulted amount is to increase to 25 percent.
UBL has filed suit for recovery of Rs. 55.044 million against which the Company has filed leave
to defend.
Negotiation with banks for restructuring of outstanding balances is in process and management
is confident that litigation with Banks will be settled through compromise decree at amounts
acknowledged by the Company.
In case of adverse decision in pending appeals the Company would be faced with additional
liability and charge against profit of Rs. 21.992 million.
ii) There is contingent liability in respect of suit filed by PICIC as stated more fully in note 6.3.
The management is confident that the settlement shall be finalised on the terms of compromise
package. In the event of adverse decision the Company would be faced with additional liability
and charge against profit amounting to Rs. 87. 152 million.
b) Civil Contractors
There is a contingency for liability amounting to Rs. 17.116 million claimed by civil contractors in
respect of escalation, price difference and idle time which the Company does not acknowledge
as debt.
c) Sales tax on baggasse
The Collectorate of Sales Tax had raised a demand amounting to Rs. 2.584 million in respect of
sales tax on baggasse used in-house as fuel by the Company. The Company has filed an appeal
against the above order before the Sales Tax Appellate Tribunal. However, the Company has paid
the sales tax demand to avail immunity provided by SRO No. 461 (1)/99 dated April 09, 2000.
The Assistant Collector (collection and enforcement) of sales tax has also claimed Rs. 5.000
million as additional tax on the above demand which the Company is disputing on the ground
that additional tax was not payable because of immunity provided in the above referred SRO. In
the event of adverse decision the Company would be faced with additional liability amounting to
Rs. 5.000 million and charge against profit amounting to Rs. 7.584 million.
The Company has also requested for revision in calculation of demand of sales tax on account
of moisture. In the event the request of the Company is accepted the demand of sales tax on
baggasse would reduce by Rs. 1.337 million.
d Sugar Cane (Development) Cess
By an amendment in the Sindh Finance Act, 1964 the Government of Sindh increased the rate of
sugar cane (development) cess from Re. 0.28 to Re. 1.00.
The Pakistan sugar Mills Association (Sindh Zone) are making efforts for the reduction of sugar
cane (development) cess to Re. 0.50 per 40 Kgs against Re. 1.00. The Company has been
making payment at Re. 0.50 per 40 Kgs. The management is confident that the Government
would reduce the sugar cane (development) cess to Re. 0.50 per 40 Kgs. However, in case of
adverse decision the Company would be faced with additional liability and charge against profit
amounting to Rs. 19.714 million (1999: Rs. 16.444 million).
e) Taxation
The assessments of the Company upto assessment year 1998-99 have been finalised and no
tax liability has been created. The orders finalised by assessing authority do not acknowledge
the income tax paid in advance amounting to Rs. 1.574 million against which the Company is
intending to file revision application. In the event of adverse decision the Company would be
faced with a charge against profit amounting to Rs. 1.574 million (1999: Rs. 1.574 million)
10.2 Capital commitments
The Company was committed to capital expenditure amounting to Rs. 14.104 million (1999: Rs.
14.104 million) for civil works as at the balance sheet date.
11. TANGIBLE FIXED ASSETS
Written Down
Particulars COST DEPRECIATION Value
As at Additions Deletion/ As at Rate As at Adjustment For the As at AS AT
01-10-99 Adjustment 30-09-00 % 01-10-99 year 30-09-00 30-09-00
Operating
Land Free Hold 11,831,403 -- -- 11,831,403 10 -- -- -- -- 11,831,403
Factory building on
Free hold land 160,729,839 -- -- 160,729,839 10 61,363,839 -- 9,936,600 71,300,439 89,429,400
Plant and machinery 605,532,923 245,776 --- 605,778,699 10 120,584,442 -- 15,552,802 136,137,244 469,641,455
Furniture & Fixtures 3,418,541 83,069 --- 3,501,610 10 1,188,959 -- 231,265 1,420,224 2,081,386
Office equipments 3,165,506 463,560 20,000 3,609,066 10 1,125,274 6,878 249,067 1,367,463 2.241,603
Tube well 3,340,485 -- 3.340,485 10 1,789,386 -- 155,110 1,944,496 1,395,989
Electric installation 5.278,916 165,099 --- 5.444.015 10 1,890,500 -- 355,352 2.245,852 3,198,163
Gas installation 494,305 -- 494.31 10 90,111 -- 40,419 130,530 363,775
Vehicles (Note: 11.1) 13,732,175 2,292.50 8,180,675 7,844,000 20 7,248,132 4,792,353 1,077,644 3,533,423 4,310,577
Telephone installation 418,823 37,550 --- 456,373 10 208,407 --- 24,797 233,204 223,169
Tools and equipments 2,010,283 410,522 --- 2,420,805 10 602,195 --- 181,861 784,056 1,636,749
Fire fighting equipments 380,748 -- 380,748 10 95,190 --- 28,556 123,746 257,002
Arms and Ammunition 2,400 850 --- 3,250 10 339 --- 291 630 2,620
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
810,336,347 3,698,926 8.200,675 805.834.598 196,186,774 4,799,231 27,833,764 219,221,307 586,613,291
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Capital work in
progress
Civil work 8.488,427 143,795 -- 8,632,222 -- -- -- -- 8,632,222
Plant and machinery 358,556 -- -- 358,556 -- -- -- -- 358,556
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
8,846,963 143,795 --- 8,990,778 -- -- -- -- 8,990,778
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Total Rupees - 2000 819,183,330 3,842,721 8,200,675 814,825,376 196,186,774 4,799,231 27,833,764 219,221,307 595,604,069
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Total Rupees - 1999 813,042,274 6,200,056 59,000 819,183,330 164,641,899 21,240 31,566,115 196,186,774 622,996,556
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
11.1 These include vehicles costing Rs. 4.381 million the title document of which are in the
process of being transferred in the name of the Company.
11.2 Depreciation has been allocated as follows:
2000 1999
RUPEES RUPEES
Cost of goods sold 27,299,788 30,991,443
Administrative expenses 533,976 574,672
----------- -----------
27,833,764 31,566,115
========== ==========
11.3 Disposal of Fixed assets
Assets Original Accumulated Written Sale Gain/(loss) Name of Place Mode of
description Cost depreciation down Proceeds on Buyer Disposal
value disposal
--------------------------------------(RUPEES)-----------------------------------------
Vehicle
Suzuki Margala 325,000 218,504 106,496 300,000 193,504 Mr. Ali Raza Karachi Negotiation
Toyota Corolla 667,000 492,150 174,850 425,000 260,150 Mr. Abdul Waheed Larkana Negotiation
Pajero 600,000 548,460 51,540 375,000 323,460 Mr. Ishaq Ismail Karachi Negotiation
Toyota Corolla 175,000 159,968 16,032 100,000 84,968 Mr. Muhammad Bux Karachi Negotiation
Toyota Creseda 425,000 388,493 36,507 175,000 138,493 Mr. Muhammad Akram Karachi Negotiation
Honda Civic 684,000 459,867 224,133 475,000 250,867 M/s. Motor Car Company Karachi Negotiation
Toyota Corolla 125,000 114,263 10,737 100,000 89,263 Mr. Ghulam Sarwar Chandio Karachi Negotiation
Toyota Corolla 385,000 138,600 246,400 319,000 72,600 M/s. Galaxy Motors Karachi Negotiation
Lancer 311,500 209,428 102,072 250,000 147,928 Mrs. Mariam Karachi Negotiation
Charade 175,000 151,512 23,488 130,000 106,512 Mr. Nazar Mohd R.Y. Khan Karachi Negotiation
Toyota Corona 150,000 137,115 12,885 110,000 97,115 Mrs. Fakhran Fifi Mir P. Khas Negotiation
. Suzuki Van 150,000 137,115 12,885 126,000 112,115 Ms. Saira Banu Karachi Negotiation
Land Cruiser 3,658,175 1,316,943 2,341,232 2,000,000 (341,232) Mr. Allaudin Karachi Negotiation
Daihatsu 350,000 319,935 30,065 105,000 74,935 M/s Jumani Group of Karachi Negotiation
========== ========== ========== ========== ========== Companies (Pvt) Limited
8,180,675 4,792,353 3,388,322 4,989,000 1,600,618
Office equipments 20,000 6,878 13,122 8,000 (5,122) M/s. Adamjee Insurance Karachi Insurance claim
----------- ----------- ----------- ----------- -----------
8,200,675 4,799,231 3,401,444 4,997,000 1,595,556
========== ========== ========== ========== ==========
2000 1999
RUPEES RUPEES
12. DEFERRED COST
Shares floatation expenses 480,527 1,633,794
Less: Amortization for the year 480,527 1,153,267
----------- -----------
-- 480,527
========== ==========
13. STORES AND SPARES
Stores 7,841,496 8,199,516
Spares 20,906,587 23,120,643
----------- -----------
28,748,083 31,320,159
Less: Provision for obsolescence 1,101,856 --
----------- -----------
27,646,227 31,320,159
========== ==========
14. STOCK INTRADE
Packing material 910,550 367,491
Stock in process 284,530 310,992
Finished goods
Molasses 32,854 3,667
----------- -----------
1,227,934 682,150
========== ==========
15. ADVANCE, DEPOSITS, PREPAYMENTS
AND OTHER RECEIVABLES
Advances (Unsecured - considered good)
To staff - Recoverable within a year 517,461 401,619
To growers 936,854 34,977,656
For services 7,430,028 8,076,452
For expenses 81,630 518,757
Income tax 3,090,484 3,046,955
To suppliers 1,207,256 2,626,394
Against purchase of vehicles 83,552 83,552
----------- -----------
13,347,265 49,731,385
Deposits 755,689 905,908
P repayments 42,196 491,747
Current account balance with statutory
authority 396,896 --
Other receivables (Considered good)
Sales tax refundable (Note: 10. 1c) 2,584,253 2,584,253
Others 23,200 199,960
----------- -----------
2,607,453 2,784,213
----------- -----------
17,149,499 53,913,253
========== ==========
16. CASH AND BANK BALANCES
Cash in hand 605 169,283
Cash with banks
In current accounts 435,514 2,637,806
----------- -----------
436,119 2,807,089
========== ==========
17. SALES
Local 385,485,767 467,594,803
Export -- 94,966,009
----------- -----------
385,485,767 562,560,812
========== ==========
Less Excise duty -- 7,177,520
Sales tax 55,335,758 56,792,407
----------- -----------
55,335,758 63,969,927
330,150,009 498,590,885
Export Rebate -- 31,077,000
----------- -----------
330,150,009 529,667,885
========== ==========
18. COST OF SALES
Raw material consumed (Note: 18.1) 280,000,549 372,986,551
Stores and spares consumed (Note: 18.2) 3,515,559 6,582,437
Packing material consumed 4,264,769 6,027,518
Salaries, wages and other benefits (Note: 18.3) 17,779,058 19,743,975
Power and fuel 4,195,773 3,964,445
Wastage removing and cane
feeding expenses 1,581,688 1,500,350
Repair and maintenance 11,479,165 14,635,845
Printing and stationery 153,956 280,279
Rent, rates and taxes 177,373 351,640
Vehicle running expenses 1,039,685 700,296
Depreciation 27,299,788 30,991,443
Insurance 7,171 198,077
Other manufacturing expenses 14,428 79,289
----------- -----------
351,508,962 458,042,145
Work in process
Opening stock 310,992 283,142
Closing stock (284,530) (310,992 )
----------- -----------
26,462 (27,850)
----------- -----------
351,535,424 458,014,295
Finished goods
Opening stock 3,667 3,693,433
Loss of stock due to theft -- (790,419 )
Closing stock (32,854) (3,667)
----------- -----------
(29,187) (2,899,347)
----------- -----------
351,506,237 460, 913,642
========== ==========
18.1 This includes field development expanses amounting to Rs. 34.059 million (1999' Nil) reimbursed
to growers by cash.
18.2 This includes provision for obsolescence amounting to Rs. 1.102 million (1999 Nil).
18.3 These include employees' retirement benefits amounting to Rs. 1.637 million (1999 Rs. 1.133
million)
19. ADMINISTRATIVE EXPENSES
Directors' remuneration 756,561 692,100
Salaries and other benefit (Note: 19.1 ) 10,283,435 10,347,469
Communication expenses 1,255,111 1,505,554
Repair and maintenance 2,774,910 1,635,295
Travelling and conveyance 1,275,059 2,777,922
Electricity and gas 512,356 430,175
Legal and professional 586,124 455,482
Fees and subscription 253,343 280,775
Rent, rates and taxes 131,341 376,964
Printing and stationery 416,774 399,148
Entertainment 305,992 464,263
Insurance expenses 448,026 343,414
Audit fee (Note: 19.2) 86,500 88,140
Depreciation 533,976 574,672
Zakat -- 4,328
Charity and donation (Note: 19.3) 517,390 514,756
Amortization of deferred cost 480,527 1,153,267
General expenses 440,265 1,387,297
Penalty on sales tax 178,312 123,590
Loss of stock due to that -- 790,419
----------- -----------
21,236,002 24,345,030
========== ==========
19.1 These include employee retirement benefits amounting to Rs. 0.809 million (1999: Rs. 0.710
million)
19. This comprises as follows:
Audit fee 80,000 80,000
Out of pocket 6,500 8,140
----------- -----------
86,500 88,140
========== ==========
19.3 No donation was made to any person or institution in which any director or his spouse was
interested.
20. SELLING AND DISTRIBUTION EXPENSES
Staff salaries -- 156,332
Advertisement 40,812 19,960
Freight and forwarding -- 16,411,891
Loading and unloading 559,682 680,345
Business promotion 426,808 1,570,130
Brokerage and commission 1,111,083 1,330,814
Others 2,200 --
----------- -----------
2,140,585 20,169,472
========== ==========
21. OTHER INCOME
Gain on sale of fixed assets 1,595,556 20,240
Interest on time deposit account --- 40,460
Sale of scrap 218,370 94,885
----------- -----------
1,813,926 155,585
========== ==========
22. FINANCIAL CHARGES
Mark-up on secured long term loans 60,687,539 50,095,513
Mark-up on short term loans and
borrowings 44,079,800 7,653,880
Bank charges 269,684 271,883
Interest on workers' profit participation fund 362,821 362,821
Mark up on advance against sale of sugar 4,953,053 845,782
----------- -----------
110,352,897 59,229,879
========== ==========
23. REMUNERATION OF CHIEF EXECUTIVE,
DIRECTORS AND EXECUTIVES
Chief
Executives Director Executives Total
Fees -- -- -- --
Remuneration 480,000 244,811 2,206,074 2,930,885
Others -- 31,750 1,332,374 1,3'64,124
----------- ----------- ----------- -----------
TOTAL RUPEES - 2000 480,000 276,561 3,538,448 4,295,009
========== ========== ========== ==========
TOTAL RUPEES - 1999 360,000 332,100 2,724,310 3,416,410
========== ========== ========== ==========
NUMBER OF PERSONS - 2000 1 3 12 16
========== ========== ========== ==========
NUMBER OF PERSONS - 1999 1 3 11 15
========== ========== ========== ==========
23.1 The Chief Executive and some of the Directors have been provided with free use of Company
cars for official purposes.
2000 1999
24. TRANSACTIONS WITH ASSOCIATED RUPEES RUPEES
UNDERTAKINGS
Transactions with Associated Undertakings
were as follows:
Sale of vehicles 105,000 --
Purchase of scrap 208,800 --
----------- -----------
313,800 --
========== ==========
25. CAPACITY AND PRODUCTION 2000 1999
Crushing capacity (Based on 160
days) M.tons 640,000 640,000
Cane crushed M.tons 261,583 405,685
Sugar produced M.tons 21,665 33,201
Days worked Nos. 117 128
The main reason for under utilisation of production capacity is non-availability of sugarcane.
26. INTEREST RATE RISK
26.1 Interest rate risk of the Company's financial assets and financial liabilities as at September 30,
2000 can be evaluated from the following:
Interest bearing Non Interest bearing Total
Within More than Within More than
One Year One Year One Year One Year
-------------------------------------(RUPEES)-------------------------------------------
Financial Assets
Long term deposits -- -- -- 279,700 279,700
Trade debts -- -- 42,150 -- 42,150
Advances, deposits
and other
receivables -- -- 778,889 -- 778,889
Cash and bank
balances -- -- 436,119 --- 436,119
----------- ----------- ----------- ----------- -----------
-- -- 1,257,158 279,700 1,536,858
----------- ----------- ----------- ----------- -----------
Financial liabilities
Redeemable
capital -- 18,526,000 -- -- 18,526,000
Long term loan 170,298,067 319,744,785 10,000,000 5,000,000 505,042,852
Short term
finances 30,000,000 -- -- -- 30,000,000
Creditors, accrued
and other liabilities -- -- 209,177,995 --- 209,177,995
----------- ----------- ----------- ----------- -----------
200,298,067 338,270,785 219,177,995 5,000,000 762,746,847
----------- ----------- ----------- ----------- -----------
Net financial
(liabilities) (200,298,067) (338,270,785 (217,920,837) (4,720,300) (761,209,989)
========== ========== ========== ========== ==========
26.2 Financial assets include Rs. 1.101 million which are subject to credit risk.
27. FAIR VALUE OF FINANCIAL INSTRUMENTS
The fair values of all the financial assets and financial liabilities are estimated to approximate
their respective carrying values.
28. NUMBER OF EMPLOYEES
Total number of employees as on balances sheet date were 351 (1999: 370)
2000 1999
RUPEES RUPEES
29. EARNING PER SHARE-BASIC AND DILUTED
Net (loss) after tax (153,271,786) (35,784,483)
----------- -----------
Weighted average No. of ordinary shares 16,017,500 16,017,500
----------- -----------
(Loss) per share (9.57) (2.23)
----------- -----------
30. GENERAL
I) Figures have been rounded off to the nearest rupee.
ii) Corresponding figures have been rearranged and regrouped wherever necessary for the purpose of comparison
KARACHI MUHAMMAD MUBEEN JUMANI MUHAMMAD BUX
Dated: April 7, 2001 Chief Executive Director
PATTERN OF SHAREHOLDING
AS AT 30-09-2000
NUMBER OF SHAREHOLDING TOTAL
SHARE HOLDERS SHARES HELD
NIL FROM 1 TO 100 SHARE NIL
145 FROM 101 TO 500 SHARE 72,500
5 FROM 501 TO 1,000 SHARE 5,000
NIL FROM 1,001 TO 10,000 SHARE NIL
4 FROM 10,001 TO 20,000 SHARE 80,000
69 FROM 20,001 TO 50,000 SHARE 3,038,000
1 FROM 50,001 TO 100,000 SHARE 60,000
1 FROM 100,001 TO 200,000 SHARE 170,283
NIL FROM 200,001 TO 300,000 SHARE NIL
3 FROM 300,001 TO 400,000 SHARE 961,047
NIL FROM 400,001 TO 500,000 SHARE NIL
3 FROM 500,001 TO 1,000,000 SHARE 2,242,443
1 FROM 1,000,001 TO 2,000,000 SHARE 1,601,750
2 FROM 2,000,001 TO 3,000,000 SHARE 4,698,477
1 FROM 3,000,001 TO 4,000,000 SHARE 3,088,000
----------- -----------
235 TOTAL 16,017,500
========== ==========
CATEGORIES OF No. of Shares Percentage
SHAREHOLDERS Shareholders Held
INDIVIDUALS 231 8,628,150 53.867
INVESTMENT COMPANIES -- -- --
INSURANCE COMPANIES 1 30,000 0.187
JOINT STOCK COMPANIES -- -- --
FINANCIAL INSTITUTIONS 3 7,359,350 45.946
MODARABA COMPANIES -- -- --
----------- ----------- -----------
TOTAL 235 16,017,500 100.000
========== ========== ==========
Google
 
Web Paksearch.com




Home | About Us | Contact | Information Resources