| Maple Leaf Cement Factory Limited |
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| Annual
Report 2000 |
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| Contents |
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| Company
Information |
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| Notice
of Meeting |
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| Directors'
Report |
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| Five
Years Summary |
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| Pattern
of Shareholding |
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| Auditors'
Report |
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| Balance
Sheet |
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| Profit
and Loss Account |
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| Cash
Flow Statement |
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| Statement
of Equity |
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| Notes
To The Accounts |
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| COMPANY
INFORMATION |
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| Board
of Directors |
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| Mr.
Tariq Sayeed Saigol |
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| Chairman/Chief
Executive |
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| Mr.
Taufique Sayeed Saigol |
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| Mr.
Usman Said |
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| Mr.
Aamir Fayyaz Sheikh |
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| Mr.
Sarmad Amin |
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| Mr.
Mansur Aly Malik |
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| Mr.
Henrik Starup |
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| (Representing
FLS & IFU) |
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| Mr.
Mahmood Ahmad |
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| (Rep.
Crescent Investment Bank Ltd.) |
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| Company
Secretary |
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| Mr.
Mohammad Sharif |
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| Bankers
of the Company |
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| Allied
Bank of Pakistan Limited |
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| The
Bank of Punjab |
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| Habib
Bank Limited |
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| Muslim
Commercial Bank Limited |
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| Soneri
Bank Limited |
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| United
Bank Limited |
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| National
Bank of Pakistan |
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| Gulf
Commercial Bank Limited |
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| Auditors |
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| Ford,
Rhodes, Robson, Morrow |
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| Chartered
Accountants |
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| Legal
Advisors |
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| 1.
Cornelius Lane and Mufti |
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| Advocates
& Solicitors, |
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| Lahore. |
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| 2.
Mr. Nomaan Akram Raja |
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| Barrister-At-Law |
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| Raja
Mohammad Akram & Co. |
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| Advocates
and Legal Consultants, |
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| Lahore. |
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| Registered
Office |
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| 42-Lawrence
Road, Lahore. |
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| Phone:
6278904-5 |
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| Fax:
(042) 6363184 |
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| E-mail:
cement@maple.lcci.org.pk |
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| Factory |
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| Iskanderabad
Distt. Mianwali. |
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| Phones:
(0459) 392237-8 |
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| NOTICE
OF THE ANNUAL GENERAL MEETING |
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| Notice
is hereby given that the 40th Annual General Meeting of the members of Maple
Leaf Cement Factory |
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| Limited
will be held at its registered office, 42-Lawrence Road, Lahore on Saturday,
30th December, 2000 at |
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| 10:30
A.M. to transact the following business: |
|
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| 1)
To confirm the minutes of Extra-ordinary General Meeting held on March 29,
2000. |
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| 2)
To receive and adopt Audited Accounts of the company for the year ended June
30, 2000 together with |
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| Auditors'
and Directors' Reports thereon. |
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| 3)
To appoint Auditors and fix their remuneration. |
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| The
present auditors, M/s Ford, Rhodes, Robson, Morrow, Chartered Accountants,
retire and being eligible, |
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| offer
themselves for re-appointment. |
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| 4)
SPECIAL BUSINESS |
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| (i)
To pass with or without modification(s) the following resolution as Special
Resolution: |
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| "WHEREAS
the merger of Part 1 of Maple Leaf Electric Company Limited into the |
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| Company
has been proposed by the Board of Directors in view of benefits to the |
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| merged
companies and as a consequence to the shareholders. |
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| IT
IS HEREBY RESOLVED that the Scheme of Arrangement put before the meeting |
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| for
the merger of Part 1 of Maple Leaf Electric Company Limited into Maple Leaf |
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| Cement
Factory Limited be and is hereby approved subject to completion of
formalities |
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| and
approval by the Honourable High Court. |
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| FURTHER
RESOLVED that the Chief Executive of the company and/or Mr. Usman |
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| Said,
Director of the Company be and is/are hereby authorised to take all such
steps |
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| as
may be necessary or incidental for the purpose of implementing the aforesaid |
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| scheme
of the merge/amalgamation of the above named companies". |
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| (ii)
To approve the remuneration of the Chief Executive and full time working
Director of the Company |
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| and
pass the following two resolutions as Ordinary Resolutions with or without
amendment:- |
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| (a)
"RESOLVED that a sum of Rs. 100,000 (Rupees one hundred thousand only)
be and |
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| is
hereby approved towards monthly remuneration inclusive of house rent
allowance |
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| of
Chief Executive of the Company for term of his office ending December
31,2001. |
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| In
addition to the above, a company maintained chauffeur driven car for official
and |
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| private
use, private security guards at his residence, hard and soft furniture, and
all |
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| other
benefits incidental or relating to his office plus bonus in accordance with
the |
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| rules
and policy of the company shall also be provided to him". |
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| (b)
"RESOLVED that a sum of Rs. 85,250 (Rupees eighty five thousand two
hundred |
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| fifty
only) be and is hereby approved towards monthly remuneration inclusive of
house |
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| rent
allowance of the full time working Director of the Company as General Manager |
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| (Marketing)
for term of his office ending December 31,2001. In addition to the above, |
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| a
company maintained car with driver's and security guard's salaries, LFA,
medical |
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| facilities
and with annual increment and all other benefits incidental or relating to
his |
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| office
plus bonus and provident fund in accordance with the rules and policy of the |
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| Company
shall also be provided to him". |
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| 5)
To transact any other business with the permission of the Chair. |
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By order of the Board |
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|
Mohammad Sharif |
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| Lahore:
December 09, 2000. |
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Company Secretary |
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| STATEMENT
U/S 160 (1) (b) OF THE COMPANIES ORDINANCE, 1984. |
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| (i)
The management of the Company has considered various options for
consolidating its activities and |
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| thereby effecting economies for the benefit
of the Company and ultimately for the shareholders. |
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| It
is with this goal before it, that the management of the Company, in
consultation with technical experts |
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| in
the field, has reached to the conclusion that Part 1 of Maple Leaf Electric
Company Limited comprising |
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| of
the power project installed at the premises of the Company and supplying
electricity to the Company |
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| be
merged with the Company. |
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| Maple
Leaf Electric Company Limited is a public limited company quoted on Karachi
& Lahore Stock |
|
| Exchanges.
Its Authorised Capital is Rupees 750,000,000/- (Rupees Seven Hundred Fifty
Million Only) |
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| divided
into 75,000,000 ordinary shares of Rs. 10/- each and its paid up capital is
Rupees 520,000,000/- |
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| (Rupees
Five Hundred Twenty Million Only) divided into 52,000,000 ordinary shares of
Rs. 10/- each. |
|
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| The
Directors of the Company may be deemed to be interested to the extent of
their shareholding or by |
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| the
Companies in which they are Directors. |
|
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| (ii)
The Shareholder's approval will be sought for the remuneration payable to the
Chief Executive and the |
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| full
time working Director of the Company in accordance with the terms and
conditions of their service with |
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| the
Company. The Authorised Capital of the company is Rs. two billion with
subscribed and paid-up capital |
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| of
Rs. 1.546 billion. The production facilities are located at Iskanderabad,
Mianwali and annual gross |
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| sales
revenue is Rs. 4,353 million for the year ended June 30, 2000. |
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| Notes: |
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| 1.
The scheme of arrangement for merger of Part 1 of Maple Leaf Electric Company
Limited into the |
|
| Company
is appended herewith and may also be inspected during business hours in the
registered |
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| office
of the company. |
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| 2.
Share Transfer Books of the Company will remain closed from 23rd December,
2000 to 30th |
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| December,
2000 (both days inclusive). Transfers received in order at Company's Shares
Department, |
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| 42-Lawrence
Road, Lahore upto 12:00 noon on 22nd December, 2000 will be considered in
time. |
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| 3.
A member eligible to attend and vote at this meeting may appoint another
member as his/her proxy |
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| to
attend and vote instead of him/her. Proxies in order to be effective must
reach at the Company's |
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| registered
office not less than 48 hours before the time for holding the meeting. |
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| 4.
The Beneficial Owners of the company through Central Depository Company,
entitled to attend |
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| and
vote at this meeting, must bring his/her NIC or Passport to prove his/her
identity, and in case |
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| of
Proxy, must enclose an attested copy of his/her NIC or Passport.
Representatives of corporate |
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| members
should bring the usual documents required for such purpose. |
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| 5.
Shareholders are requested to immediately notify the change in address, if
any. |
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|
SCHEME OF ARRANGEMENT |
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UNDER SECTIONS 284 TO 288 OF THE COMPANIES ORDINANCE, 1984 |
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FOR MERGER BETWEEN |
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|
MAPLE LEAF ELECTRIC COMPANY LIMITED |
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AND |
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|
MAPLE LEAF CEMENT FACTORY LIMITED |
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AND |
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KOHINOOR TEXTILE MILLS LIMITED |
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AND |
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THEIR RESPECTIVE MEMBERS |
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PRELIMINARY |
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| Definitions |
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| In
this Scheme of Arrangement, unless the subject or context otherwise requires,
the following expressions |
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| shall
bear the meanings specified against them below: |
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| "MLECL" |
|
means Maple Leaf Electric
Company Limited, a company, limited by |
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|
shares incorporated as a
public limited company having its registered |
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|
office at Lahore. |
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| "MLCFL" |
|
means Maple Leaf Cement
Factory Limited a company, limited by |
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|
shares incorporated as a
public limited company having its registered |
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|
office at Lahore. |
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| "KTM" |
|
means Kohinoor Textile
Mills Limited, a company, limited by shares |
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|
incorporated as a public
limited company having its registered office |
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at Lahore. |
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| "the Court" |
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means Lahore High Court,
Lahore. |
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| "this
Scheme" |
means this Scheme of
Arrangement in its present form with any |
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|
modification thereof or
addition thereto approved or condition imposed |
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|
by the court. |
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| "the
Effective Date" |
means the day on which
the Scheme becomes operative in accordance |
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|
with clause 4.0 of this
Scheme. |
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| "Undertaking
of MLECL" |
means the two Power
Projects of Maple Leaf Electric Company Limited |
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|
installed at the premises
of Maple Leaf Cement Factory Limited, |
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|
Iskanderabad and Kohinoor
Textile Mills Limited, Rawalpindi |
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|
respectively as divided
into two separate parts namely Part 1 and |
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|
Part 2 and as contained
specifically in Annex "A" and Annex "B" to |
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|
this scheme. |
|
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| The
headings and marginal notes are inserted for convenience and shall not affect
the construction of this |
|
| Scheme. |
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| Capital |
|
| The
authorised share capital of Maple Leaf Electric Company Limited (MLECL) is
Rupees 750,000,000 divided |
|
| into
75,000,000 ordinary shares of Rupees 10 each and its paid up capital is
Rupees 520,000,000 divided into |
|
| 52,000,000
ordinary shares of Rupees 10 each. |
|
|
| The
authorized share capital of Maple Leaf Cement Factory Limited (MLCFL) is
Rupees 2,000,000,000 divided |
|
| into
200,000,000 ordinary shares of Rupees 10 each and its paid up capital is
Rupees 1,546,473,240 divided |
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| into
154,647,324 ordinary shares of Rupees 10 each. |
|
|
| The
authorised share capital of Kohinoor Textile Mills Limited (KTM) is Rupees
700,000,000 divided into |
|
| 70,000,000
ordinary shares of Rupees 10 each and its paid up capital is Rupees
271,648,380 divided into |
|
| 27,164,838
ordinary shares of Rupees 10 each. |
|
|
| THE
SCHEME |
|
| OBJECT
OF THIS SCHEME' |
|
| 1.0
The principal object of this scheme is to reorganize/reconstruct Maple Leaf
Electric Company Limited |
|
| (MLECL)
and bifurcate/divide the assets and liabilities of the Maple Leaf Electric
Company Limited (MLECL) |
|
| into
two parts namely Part 1 and Part 2, as contained specifically in Annexes
"A" and "B" to the Scheme |
|
| and
effect merger of Part 1 of the Maple Leaf Electric Company Limited (MLECL)
with Maple Leaf Cement |
|
| Factory
Limited (MLCFL) and Part 2 of Maple Leaf Electric Company Limited (MLECL)
with Kohinoor |
|
| Textile
Mills Limited (KTM), through the transfer and vesting in MLCFL and KTM of the
two parts mentioned |
|
| above. |
|
|
| WHEREBY
IT IS PROPOSED THAT: |
|
| 1.1
The undertakings of MLECL comprising of Part 1 and Part 2 (as contained
specifically in Annexes |
|
| "A"
and "B" to this scheme), as at the transfer date (as hereinafter
defined) including all assets, |
|
| properties,
rights, privileges, powers, bank accounts, trade marks, title deeds, patents,
leave and |
|
| licences
and all or any other assets, properties, rights, privileges, powers,
contracts, bank accounts, |
|
| trade
marks, title deeds, patents and licences of MLECL as may reasonably be
allocatable to each |
|
| part
as at the transfer date (as hereinafter defined) shall, without further act
or deed, stand transferred |
|
| to
and be vested in MLCFL and KTM as per Annexes "A" and
"B", respectively, as from the |
|
| commencement
of business on 01 July 2000 (hereinafter referred to as the "transfer
date"). |
|
|
| 1.2
Without prejudice to the generality of paragraph 1.1 above, undertakings of
MLECL shall include all |
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| rights,
powers, authorities, privileges, contracts, benefits of Government consents,
sanctions and |
|
| authorisations,
trade marks, patents, licences, liberties and all properties, immovable and
movable, |
|
| real,
corporeal or incorporeal, in possession or reversion, present or contingent
of whatsoever nature |
|
| and
where so ever situate, including in particular reserves, revenue balances,
leasehold properties, |
|
| investments,
deposits, deferred costs, stores and spares, advances, deposits, prepayments,
other |
|
| receivables,
cash and bank balances, telephones, faxes, e-mail and telexes and trade debts
owing |
|
| to
MLECL and all other authorities, rights or interests in or arising out of
such property as may belong |
|
| to
or be in the possession or claim of MLECL on the transfer date and all books
of account and |
|
| documents
relating thereto, and shall be deemed to include all debts, borrowings,
liabilities, duties |
|
| and
obligations of MLECL of whatever kind, including liabilities for payment of
gratuity, pension, |
|
| benefits,
provident fund or compensation in the event of retrenchment, PROVIDED ALWAYS
that |
|
| this
Scheme shall not operate to enlarge the security for any loan, deposit or
facility created by or |
|
| available
to MLECL which shall vest in MLCFL and KTM on approval of this Scheme by the
Honourable |
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| Lahore
High Court, Lahore and MLCFL and KTM as the case may be shall not be obliged
to create |
|
| any
further or additional security therefor after the approval of this Scheme as
aforesaid or otherwise. |
|
|
| 1.3
The transfer and vesting of the undertakings of MLECL under Clauses 1.1 and
1.2 hereof and the |
|
| continuance
of proceedings by MLCFL and KTM under Clause 1.7 hereof shall not affect any |
|
| transactions
or proceedings already concluded by MLECL in the ordinary course of business
and |
|
| after
the transfer date to the end and intent that MLCFL and KTM respectively
accept on behalf of |
|
| themselves
all acts, deeds and things done and executed by MLECL in relation to the part
being |
|
| merged
with either, as the case may be. |
|
|
| 1.4
As from the transfer date, MLECL shall be deemed to have carried on and to
carry on its business |
|
| on
behalf of and on account of MLCFL and KTM until such time as this Scheme
becomes fully |
|
| effective. |
|
|
| 1.5
MLCFL shall in respect of the assets and liabilities mentioned in Annex
"A" undertake, pay, satisfy, |
|
| discharge,
perform and fulfill all debts, liabilities, contracts, engagements and
obligations whatsoever |
|
| of
MLECL as at the transfer date, and all contracts, deeds, bonds, agreements,
powers of attorney, |
|
| grants
of legal representation and all other instruments of whatever kind subsisting
or having effect |
|
| immediately
before the transfer date to which MLECL may be a party or which shall be in
favour of |
|
| MLECL
as they were before the transfer date and may be enforced or acted upon as
fully and |
|
| effectively
as if instead of MLECL, MLCFL had been a party thereto or as if the same had
been issued |
|
| by
or in favour of MLCFL, PROVIDED ALWAYS the existing creditors of MLCFL and
MLECL |
|
| respectively
having charges over the land, building, machinery and other fixed assets of
the respective |
|
| companies
shall continue to retain their security interests over the land, building,
machinery and other |
|
| fixed
assets respectively charged in their favour; the existing creditors of MLCFL
having charges over |
|
| the
current assets of MLCFL shall retain their respective charges over the
current assets as on the |
|
| transfer
date of MLCFL and shall have a first charge ranking, pari passu inter se, on
the future current |
|
| assets
which are kept at the MLCFL premises; and the existing creditors of MLECL
having charges |
|
| over
the current assets of MLECL shall retain their respective charges over the
existing current assets |
|
| of
MLECL as on the transfer date and shall have a first charge ranking pari
passu inter se, on the |
|
| future
current assets which are kept at the MLECL premises after the transfer date. |
|
|
| 1.6
KTM shall in respect of the assets and liabilities mentioned in Annex
"B" undertake, pay, satisfy, |
|
| discharge,
perform and fulfill all debts, liabilities, contracts, engagements and
obligations whatsoever |
|
| of
MLECL as at the transfer date, and all contracts, deeds, bonds, agreements,
powers of attorney, |
|
| grants
of legal representation and all other instruments of whatever kind subsisting
or having effect |
|
| immediately
before the transfer date to which MLECL may be a party or which shall be in
favour of |
|
| MLECL
as they were before the transfer date and may be enforced or acted upon as
fully and |
|
| effectively
as if instead of MLECL, KTM had been a party thereto or as if the same had
been issued |
|
| by
or in favour of KTM, PROVIDED ALWAYS the existing creditors of KTM and MLECL
respectively |
|
| having
charges over the land, building, machinery and other fixed assets of the
respective companies |
|
| shall
continue to retain their security interests over the land, building,
machinery and other fixed |
|
| assets
respectively charged in their favour; the existing creditors of KTM having
charges over the |
|
| current
assets of KTM shall retain their respective charges over the current assets
as on the transfer |
|
| date
of KTM and shall have a first charge ranking, pari passu inter se, on the
future current assets |
|
| which
are kept at the KTM premises; and the existing creditors of MLECL having
charges over the |
|
| current
assets of MLECL shall retain their respective charges over the existing
current assets of |
|
| MLECL
as on the transfer date and shall have a first charge ranking pari passu
inter se, on the future |
|
| current
assets which are kept at the MLECL premises after the transfer date. |
|
|
| 1.7
All causes, suits, appeals, petitions/revisions or other judicial, quasi
judicial and/or administrative |
|
| proceedings
of whatever nature by or against MLECL which shall be pending on the transfer
date |
|
| in
or before any court, tribunal forum or other authority will be continued,
prosecuted and enforced |
|
| in
the same manner and to the same extent as they would or might have been
continued, prosecuted |
|
| and
enforced by or against MLECL as if this Scheme had not been made, by or
against MLCFL and |
|
| KTM
to the extent and relating to the part being merged with each and the same
shall not abate, be |
|
| discontinued
or be in any way prejudiced or affected by the provisions of this Scheme. |
|
|
| 1.8
Every officer, workman or other employee of MLECL engaged directly on the
project forming Part 1 |
|
| of
MLECL shall, on the transfer date, become an officer, workman or employee, as
the case may be, |
|
| of
MLCFL on the basis that his services have not been interrupted by the vesting
of the Part 1 of |
|
| MLECL,
in MLCFL under this Scheme and on the same remunerations and other conditions
of service, |
|
| rights
and privileges as to pension, provident fund and gratuity, if any, and other
matters as were |
|
| applicable
to him before the transfer date. |
|
|
| 1.9
Every officer, workman or other employee of MLECL engaged directly on the
project forming Part 2 |
|
| of
MLECL and/or the head office of MLECL shall, on the transfer date, become an
officer, workman |
|
| or
employee, as the case may be, of KTM on the basis that his services have not
been interrupted |
|
| by
the vesting of the Part 2 of MLECL, in KTM under this Scheme and on the same
remunerations |
|
| and
other conditions of service, rights and privileges as to pension, provident
fund and gratuity, if |
|
| any,
and other matters as were applicable to him before the transfer date. |
|
|
| 2.0
As consideration for the said transfers, the individual members of MLECL
shall get "X" numbers of fully |
|
| paid-up
ordinary share of the par value of Rupees 10 each in the capital of MLCFL and
"Y" numbers of |
|
| fully
paid-up ordinary share of the par value of Rupees 10 each in the capital of
KTM for every One fully |
|
| paid-up
share of the par value of Rupees 10 each held by them in the capital of
MLECL, as on a day to |
|
| be
fixed by the board of Directors of MLCFL and KTM following the transfer date.
The value of "X" and |
|
| "Y"
will be determined on the basis of ratio resulting from the average of the
undermentioned two figures |
|
| for
the three companies: |
|
|
| a)
Break-up value of the shares as per audited accounts for the year ended 30
June 2000. |
|
|
| b)
Average of weekly quotation of the shares on the Karachi Stock Exchange from
01 July 1999 |
|
| to
30 June 2000. |
|
|
| All
costs, charges and expenses of carrying this scheme into effect shall be
borne and paid by MLCFL |
|
| and
KTM proportionately. |
|
|
| 2.1
The said fully paid-up ordinary shares in MLCFL and KTM to be issued and
allotted to the members |
|
| of
MLECL shall rank pari passu in all respects with the existing fully paid-up
ordinary shares in MLCFL |
|
| and
KTM respectively. |
|
|
| 2.2
All members whose names shall appear in the Register of Members of MLECL on
such date (after |
|
| the
transfer date) as the Board of Directors of MLCFL and KTM may determine,
shall surrender their |
|
| share
certificates for cancellation thereof to the shares department of KTM who
shall coordinate for |
|
| the
issuance of shares by MLCFL and KTM in the determined proportion. In default,
upon the new |
|
| shares
in MLCFL and KTM being issued and allotted by it to the members of MLECL
whose name |
|
| shall
appear on the Register of Members of MLECL on such date, as aforesaid, the
share certificates |
|
| in
relation to the shares held by them in MLECL shall be deemed to have been
cancelled. |
|
|
| 2.3
The excess value of the net assets of Part 1 of MLECL as at 30 June 2000 over
the paid-up value |
|
| of
shares issued and allotted pursuant to the terms of Clause 2.0 hereof shall
be accounted for in |
|
| the
books of MLCFL, as at the transfer date that the Capital Reserves, Revenue
Reserves and the |
|
| unappropriated
profit of Part 1 of MLECL, as at 30 June 2000 shall constitute Reserves of a |
|
| corresponding
nature of MLCFL and the balance, if any, transferred to the General Reserves
in |
|
| MLCFL. |
|
|
| 2.4
The excess value of the net assets of Part 2 of MLECL as at 30 June 2000 over
the paid-up value |
|
| of
shares issued and allotted pursuant to the terms of Clause 2.0 hereof shall
be accounted for in |
|
| the
books of KTM, as at the transfer date, that the Capital Reserves, Revenue
Reserves and the |
|
| unappropriated
profit of Part 2 of MLECL, as at 30 June 2000 shall constitute Reserves of a |
|
| corresponding
nature of KTM and the balance, if any, transferred to the General Reserves in
KTM. |
|
|
| 3.0
The Chief Executives of MLCFL, KTM and MLECL acting jointly or any person or
persons duly authorised |
|
| by
the respective boards of MLCFL, KTM and MLECL shall be authorised to take all
such further |
|
| supplemental,
incidental and consequential actions and steps as may be requisite for giving
full effect to |
|
| this
Scheme and may consent on behalf of all concerned to any modification of or
addition to this Scheme |
|
| or
to. any condition which the Honourable Lahore High Court, Lahore may deem fit
to impose. |
|
|
| 4.0
Subject to an order being made by the Honourable Lahore High Court, Lahore
under Section 287 of the |
|
| Companies
Ordinance 1984, MLECL shall, without winding up, stand dissolved from such
date on which |
|
| all
shares to be allotted by MLCFL and KTM under Clause 2.0 above to the
member(s) of MLECL shall |
|
| have
been so allotted. |
|
|
| 5.0
The approvals and/or confirmations and/or directions to the proposed transfer
of undertakings as set out |
|
| in
Clauses 1.1 and 1.2 of this Scheme have been received from the share holders
of MLCFL, KTM and |
|
| MLECL. |
|
|
| 6.0
This Scheme shall be subject to such modifications or conditions as the
Honourable Lahore High Court, |
|
| Lahore
may approve or impose. |
|
|
| 7.0
In case this Scheme is not finally sanctioned by the Honourable Lahore High
Court, Lahore for any reason |
|
| whatsoever
OR if for any other reason this Scheme cannot be implemented before 30 June
2001 or within |
|
| such
further period or periods as may be agreed upon by MLCFL, KTM and MLECL (by
the authorized |
|
| person(s)
as approved under clause 3.0 above) this Scheme shall become null and void
and in that event |
|
| no
rights and liabilities shall accrue to or be incurred inter se by the parties
in terms of this Scheme. |
|
|
| MAPLE
LEAF ELECTRIC COMPANY LIMITED |
|
| PART 1 |
|
| DETAILS
OF ASSETS AND RELATED LIABILITIES AS ON 31) JUNE 2000 |
|
| OF
POWER PROJECT INSTALLED AT PREMISES OF |
|
| MAPLE
LEAF CEMENT FACTORY LIMITED |
|
|
|
RUPEES |
|
| ASSETS |
|
| Fixed Assets |
|
| Building
on leasehold land |
|
39,583,215 |
|
| Plant
and machinery |
|
374,838,902 |
|
| Electric
equipment and installation |
|
5,579,582 |
|
| Furniture
and fixtures |
|
635,889 |
|
| Office
equipment |
|
275,734 |
|
| Fire
fighting equipment |
|
137,627 |
|
| Vehicles |
|
365,262 |
|
|
------------ |
|
|
421,416,211 |
|
|
| Assets
subject to finance lease |
|
227,328 |
|
| Long
Term Deposit and Deferred Costs |
|
4,900 |
|
| Current
Assets |
|
| Stores,
spares and loose tools |
|
42,623,899 |
|
| Trade debts |
|
77,235,936 |
|
| Advances,
deposits, prepayments and other receivables |
|
16,438,717 |
|
| Cash
and bank balances |
|
119,947 |
|
|
------------ |
|
|
136,418,499 |
|
|
------------ |
|
| TOTAL
ASSETS |
|
558,066,938 |
|
|
========== |
|
| LIABILITIES |
|
| Share
Capital and Reserves |
|
| Authorized
Capital (37,764,675 Ordinary shares of Rs. 10/- each) |
377,646,750 |
|
|
========== |
|
| Issued,
subscribed and paid-up capital |
|
261,835,080 |
|
| Reserves |
|
186,305,730 |
|
| Unappropriated
profit |
|
2,044,254 |
|
|
------------ |
|
|
450,185,064 |
|
| Long
Term Loans and Deferred Liabilities |
|
| Supplier's
credit |
|
-- |
|
| Liability
against assets subject to finance lease |
|
-- |
|
| Provision
for gratuity |
|
490,225 |
|
|
------------ |
|
|
490,225 |
|
| Current
Liabilities |
|
|
|
| Current
portion of long term liabilities |
|
156,498 |
|
| Short
term finance |
|
63,150,000 |
|
| Creditors,
accrued and other liabilities |
|
11,355,766 |
|
| Unclaimed
dividend |
|
-- |
|
| Proposed
dividend |
|
32,729,385 |
|
| Provision
for taxation |
|
-- |
|
|
------------ |
|
|
107,391,649 |
|
|
------------ |
|
| TOTAL
CAPITAL AND LIABILITIES |
|
558,066,938 |
|
|
========== |
|
|
| MAPLE
LEAF ELECTRIC COMPANY LIMITED |
|
| PART 2 |
|
| DETAILS
OF ASSETS AND RELATED LIABILITIES AS ON 30 JUNE 2000 |
|
| OF
POWER PROJECT INSTALLED AT PREMISES OF |
|
| KOHINOOR
TEXTILE MILLS LIMITED |
|
|
|
RUPEES |
|
| ASSETS |
|
| Fixed Assets |
|
| Building
on leasehold land |
|
20,413,417 |
|
| Plant
and machinery |
|
156,186,244 |
|
| Electric
equipment and installation |
|
7,287,146 |
|
| Furniture
and fixtures |
|
371,721 |
|
| Office
equipment |
|
689,975 |
|
| Fire
fighting equipment |
|
44,264 |
|
| Vehicles |
|
2,811,739 |
|
|
------------ |
|
|
187,804,506 |
|
| Assets
subject to finance lease |
|
8,302,444 |
|
| Long
Term Investment |
|
133,676,603 |
|
| Long
Term Deposit and Deferred Costs |
|
3,865,137 |
|
| Current
Assets |
|
|
|
| Stores,
spares and loose tools |
|
41,312,894 |
|
| Trade debts |
|
146,017,755 |
|
| Advances,
deposits, prepayments and other receivables |
|
42,352,557 |
|
| Cash
and bank balances |
|
17,462,189 |
|
|
------------ |
|
|
247,145,395 |
|
|
------------ |
|
| TOTAL
ASSETS |
|
580,794,085 |
|
|
|
|
| LIABILITIES |
|
|
|
| Share
Capital and Reserves |
|
|
|
| Authorized
Capital (37,235,325 Ordinary shares of Rs. 10/- each) |
372,353,250 |
|
|
========== |
|
| Issued,
subscribed and paid-up capital |
|
258,164,920 |
|
| Reserves |
|
183,694,270 |
|
| Unappropriated
profit |
|
2,015,084 |
|
|
------------ |
|
|
443,874,274 |
|
| Long
Term Loans and Deferred Liabilities |
|
|
|
| Liability
against assets subject to finance lease |
|
-- |
|
| Provision
for gratuity |
|
545,963 |
|
|
------------ |
|
|
545,963 |
|
| Current
Liabilities |
|
|
|
| Current
portion of long term liabilities |
|
4,381,280 |
|
| Short
term finance |
|
61,691,419 |
|
| Creditors,
accrued and other liabilities |
|
13,527,640 |
|
| Unclaimed
dividend |
|
181,956 |
|
| Proposed
dividend |
|
32,270,615 |
|
| Provision
for taxation |
|
24,320,938 |
|
|
------------ |
|
|
136,373,848 |
|
|
------------ |
|
| TOTAL
CAPITAL AND LIABILITIES |
|
580,794,085 |
|
|
========== |
|
|
|
| DIRECTORS'
REPORT TO THE SHAREHOLDERS |
|
|
| Your
directors are pleased to present annual report and the audited accounts for
the financial year ended |
|
| June 30, 2000. |
|
|
| The
operating results of the company improved due to the increase in capacity
utilization, decrease in financial |
|
| &
depreciation charge and stability in selling price during the year under
review. Pre-tax loss for year ended |
|
| June
30, 2000 reduced to Rs. 70.226 million from Rs. 578.976 million last year. In
the over supply market with |
|
| sales
volume at only 65% of capacity, the selling price was not enough to meet
rising input cost and fixed |
|
| charge
especially depreciation and financial expenses. However, on adjustment of tax
refund and deferred tax |
|
| liability,
the profit after tax for the year amounted to Rs. 1.618 million against last
year's after tax loss Rs. |
|
| 590.133
million. |
|
|
| Production
& Sales |
|
| The
production and sales for the year under review compare favourably with last
year and are given as under: |
|
|
|
Grey |
White |
|
|
Clinker |
Cement |
Clinker |
Cement |
|
| Production
(M. Tonnes) |
|
| 2000 |
|
993,634 |
1,022,717 |
37,720 |
39,340 |
|
| 1999 |
|
849,777 |
893,975 |
34,470 |
35,883 |
|
|
| Sales (M. Tonnes) |
|
| 2000 |
|
1,009,501 |
|
39,497 |
|
| 1999 |
|
900,243 |
|
36,752 |
|
|
| Financial
Results |
|
| The
financial results for the year ended June 30, 2000 are as under: |
|
|
(Rs. in thousand) |
|
| Loss
before taxation |
|
(70,226) |
|
| Provision
for taxation: |
|
|
| Current year |
|
(15,128) |
|
| Prior years |
|
32,601 |
|
| Deferred |
|
54,371 |
71,844 |
|
|
|
------------ |
------------ |
|
| Profit
after taxation |
|
|
|
1,618 |
|
| Un-appropriated
loss brought forward |
|
|
(960,848) |
|
| Transfer
from general reserve |
|
|
|
749,664 |
|
|
|
|
------------ |
|
| Loss
carried to balance sheet |
|
|
|
(209,566) |
|
|
========== |
|
|
| During
the year under review, there was no deferred tax liability. As such the
deferred tax liability of Rs. 54.371 |
|
| million
has been written back. |
|
|
| The
Earning Per Share (EPS) of the year ended June 30, 2000 was Rs. 0.01. There
being pre tax loss |
|
| Rs.
70.226 million, no dividend is recommended. |
|
|
| Future
Prospects |
|
| In
the past four years demand for cement failed to grow at the pace of increased
supply. The national economy |
|
| has
also not shown recovery due to dwindling foreign exchange reserves, massive
debt servicing, increasing |
|
| import
as compared to exports, resultantly capping government infra-structural
development expenditures. This |
|
| has
reduced the cement demand in public sector. |
|
|
| On
deregulation of furnace oil in July, 2000 its price has been doubled in one
year. The continuous enhancement |
|
| in
furnace oil prices has tremendously increased the production cost while the
selling price registered declining |
|
| trend. |
|
|
| The
imposition of sales tax @ 15% effective from 5th September, 2000 has created
regional disparity with three |
|
| cement
manufacturers in NWFP enjoying exemption from this levy. Another factor of
discrimination is provision |
|
| of
low cost fuel i.e. natural gas to some units. This has denied the level
playing field in cement sector. The |
|
| difference
in prices between exempted and non-exempted units disturbed the whole system
resulting in unstable |
|
| market
conditions. |
|
|
| The
future prospects therefore are related with economic revival, incentive to
cement sector, removal of disparity |
|
| and
consistency in taxation & fiscal policies of the government. |
|
|
| The
management being conscious of rising cost of production, constantly keeps on
reviewing the various |
|
| alternatives
to reduce the cost. As such, different measures i.e. production of special
cement, use of low cost. |
|
| fuel
like coal instead of imported furnace oil and substitute of kraft paper bags
for packing are presently under |
|
| active
consideration. |
|
|
| Rescheduling
of Long Term Loans |
|
| Muslim
Commercial Bank Limited and Bank Of Punjab have rescheduled their long term
loans and their loans |
|
| are
being paid according to agreed revised schedules. The Board of Directors of
International Finance |
|
| Corporation
(IFC) has also approved the restructuring of their loan and requires
principal payment of US $ |
|
| 1,093,750
during the year 2000-2001 from company's own resources. The agreement for
restructuring of IFC |
|
| loan
is in process and a sum of Rs. 707.884 million representing the over due
principal installment will stand |
|
| deferred
and excluded from the current liabilities on signing of the agreement. The
company is also working |
|
| on
conversion of part of IFC loan into local currency loan backed by IFC
guarantee. |
|
|
| Right Issue |
|
| As
a part of IFC proposal for restructuring, 18.75 % right offer, 24,418,000
shares of Rs. 10 each at 20% |
|
| discount
i.e. @ Rs. 8 per share have been subscribed/taken up by the underwriters and
right issue stands |
|
| subscribed
and allotted in full in the period subsequent to balance sheet date. The
management is of the view |
|
| that
with the additional equity injection, the company will be able to meet its
debt obligations on schedule. |
|
|
| Merger
Arrangements for Maple Leaf Electric Company Ltd. |
|
| As
a measure for consolidating its activities and thereby effecting economies
for the benefit of the company |
|
| and
ultimately for the shareholders, the Board of Directors recommend that part I
of Maple Leaf Electric Company |
|
| Limited
comprising of the power project installed at company's premises and supplying
electricity to the company |
|
| be
merged with the company. The scheme of arrangement for merger is proposed for
members' approval |
|
| through
Special Resolution in forthcoming Annual General Meeting. |
|
|
| Auditors |
|
| M/s
Ford, Rhodes, Robson, Morrow, Chartered Accountants the present auditors
retire and being eligible offer |
|
| themselves
for re-appointment for next year. |
|
|
| Pattern
of Shareholding |
|
| The
Shareholding Pattern of the company as on June 30, 2000 is included in the
Annual Report. |
|
|
| Labour
Management Relationship |
|
| The
Board wishes to place on record its appreciation for the efforts and services
rendered by the officers and |
|
| workers
who worked as a team throughout the year. It is expected that the same would
be coming forth in the |
|
| years
to come. |
|
|
|
For and on behalf of the board |
|
|
|
(Tariq Sayeed Saigol) |
|
| Lahore:
November 29, 2000 |
|
Chairman / Chief Executive |
|
|
|
| FIVE
YEARS SUMMARY |
|
|
|
|
1999-2000 |
1998-99 |
1997-98 |
1996-97 |
1995-96 |
|
| Quantitative
Data (M. Tonnes) |
|
| Grey
Cement: |
|
| Production |
|
1,022,717 |
893,975 |
551,473 |
471,070 |
488,961 |
|
| Sales |
|
1,009,501 |
900,243 |
545,318 |
474,415 |
481,881 |
|
|
| White
Cement: |
|
| Production |
|
39,340 |
35,883 |
32,700 |
33,412 |
34,720 |
|
| Sales |
|
39,497 |
36,752 |
32,758 |
33,405 |
34,450 |
|
|
| Sales
(Rs. 000) |
|
| Gross sales |
|
4,353,526 |
3,577,219 |
1,630,218 |
1,911,471 |
1,675,074 |
|
| Less:
Excise duty |
|
1,468,599 |
1,455,355 |
676,269 |
604,718 |
397,782 |
|
| Sales tax |
|
-- |
-- |
-- |
277,944 |
235,457 |
|
| Rebate |
|
85,816 |
86,409 |
28,303 |
15,090 |
11,001 |
|
|
------------ |
------------ |
------------ |
------------ |
------------ |
|
| Net sales |
|
2,799,111 |
2,035,455 |
925,646 |
1,013,719 |
1,030,834 |
|
|
========== |
========== |
========== |
========== |
========== |
|
| Profitability
(Rs. 000) |
|
|
|
| Profit/(Loss)
before tax |
|
(70,226) |
(578,976) |
(368,517) |
40,041 |
238,554 |
|
| Provision
for income tax |
|
71,844 |
(11,157) |
(4,770) |
(12,200) |
(98,000) |
|
|
------------ |
------------ |
------------ |
------------ |
------------ |
|
| Profit/(Loss)
after tax |
|
1,618 |
(590,133) |
(373,287) |
27,841 |
140,554 |
|
|
========== |
========== |
========== |
========== |
========== |
|
| Financial
Position (Rs. 000) |
|
|
|
| Tan9ible
fixed assets-net |
|
5,511,852 |
6,099,791 |
6,349,668 |
5,966,034 |
3,780,420 |
|
| Investment
& other assets |
|
56,680 |
20,066 |
21,248 |
364,466 |
380163 |
|
|
------------ |
------------ |
------------ |
------------ |
------------ |
|
|
5,568,532 |
6,119,857 |
6,370,916 |
6,330,500 |
4,160,583 |
|
|
------------ |
------------ |
------------ |
------------ |
------------ |
|
| Current
assets |
|
963,225 |
798,888 |
852,693 |
844,219 |
1,880,883 |
|
| Current
liabilities |
|
(1,768,537) |
(1,702,401) |
(1,216,183) |
(554,900) |
(380,854)J |
|
|
------------ |
------------ |
------------ |
------------ |
------------ |
|
| Net
working capital |
|
(805,312) |
(903,513) |
(363,490) |
289,319 |
1,500,029 |
|
|
------------ |
------------ |
------------ |
------------ |
------------ |
|
| Capital
employed |
|
4,763,220 |
5,216,344 |
6,007,426 |
6,619,819 |
5,660,612 |
|
| Less
Long term loan & other liab. |
(2,169,581) |
(2,676,399) |
(2,877,348) |
(3,116,454) |
(2,557,172) |
|
|
------------ |
------------ |
------------ |
------------ |
------------ |
|
| Share
holders Equity |
|
2,593,639 |
2,539,945 |
3,130,078 |
3,503,365 |
3,103,440 |
|
|
|
========== |
========== |
========== |
========== |
========== |
|
| Represented
By: |
|
|
|
| Share capital |
|
1,302,293 |
1,302,293 |
1,302,293 |
1,302,293 |
930,209 |
|
| Share
deposit money |
|
52,076 |
-- |
-- |
-- |
-- |
|
| Reserves
& un-app. profit |
|
1,239,270 |
1,237,652 |
1,827,785 |
2,201,072 |
2,173,231 |
|
|
------------ |
------------ |
------------ |
------------ |
------------ |
|
|
2,593,639 |
2,539,945 |
3,130,078 |
3,503,365 |
3,103,440 |
|
|
========== |
========== |
========== |
========== |
========== |
|
| Ratios: |
|
|
|
| Gross
Profit/(Loss) to sales (%age) |
16.13 |
(2.86) |
(7.27) |
5.14 |
19.59 |
|
| Net
Profit/(Loss) to sales (%age) |
|
0.06 |
(28.99) |
(40.33) |
2.75 |
13.63 |
|
| Debt
equity ratio |
|
45:55 |
49:51 |
47:53 |
45:55 |
44:56 |
|
| Current ratio |
|
0.54 |
0.47 |
0.69 |
1.52 |
4.94 |
|
| Break
up value per share of Rs. 10 each |
19.92 |
19.50 |
24.04 |
26.90 |
33.36 |
|
|
|
| PATTERN
OF SHAREHOLDING AS ON JUNE 30, 2000 |
|
|
|
|
|
Size of
Holding |
|
|
|
No. of |
|
Total |
|
|
Shareholders |
From |
To |
Shares Held |
|
|
|
1138 |
1 |
100 |
54,491 |
|
|
2500 |
101 |
500 |
766,431 |
|
|
1978 |
501 |
1000 |
1,455,643 |
|
|
3726 |
1001 |
5000 |
7,632,920 |
|
|
550 |
5001 |
10000 |
3,902,464 |
|
|
155 |
10001 |
15000 |
1,896,391 |
|
|
89 |
15001 |
20000 |
1,567,683 |
|
|
49 |
20001 |
25000 |
1,127,160 |
|
|
35 |
25001 |
30000 |
977,284 |
|
|
17 |
30001 |
35000 |
557,265 |
|
|
27 |
35001 |
40000 |
1,003,166 |
|
|
13 |
40001 |
45000 |
555,105 |
|
|
17 |
45001 |
50000 |
831,822 |
|
|
10 |
50001 |
55000 |
528,096 |
|
|
8 |
55001 |
60000 |
454,959 |
|
|
9 |
60001 |
65000 |
560,703 |
|
|
5 |
65001 |
70000 |
340,275 |
|
|
5 |
70001 |
75000 |
371,164 |
|
|
6 |
75001 |
80000 |
469,154 |
|
|
6 |
80001 |
85000 |
492,043 |
|
|
6 |
85001 |
90000 |
532,280 |
|
|
3 |
90001 |
95000 |
281,450 |
|
|
8 |
95001 |
100000 |
792,015 |
|
|
2 |
100001 |
105000 |
201,558 |
|
|
2 |
105001 |
110000 |
218,887 |
|
|
1 |
110001 |
115000 |
111,134 |
|
|
1 |
115001 |
120000 |
115,424 |
|
|
1 |
120001 |
125000 |
123,000 |
|
|
5 |
125001 |
130000 |
643,744 |
|
|
2 |
130001 |
135000 |
264,600 |
|
|
1 |
140001 |
145000 |
143,000 |
|
|
1 |
145001 |
150000 |
!45,531 |
|
|
2 |
155001 |
160000 |
312,999 |
|
|
2 |
160001 |
165000 |
327,773 |
|
|
2 |
165001 |
170000 |
335,358 |
|
|
1 |
180001 |
185000 |
181,377 |
|
|
1 |
190001 |
195000 |
193,332 |
|
|
1 |
195001 |
200000 |
200,000 |
|
|
1 |
200001 |
205000 |
203,000 |
|
|
3 |
210001 |
215000 |
637,687 |
|
|
1 |
225001 |
230000 |
227,148 |
|
|
1 |
250001 |
255000 |
253,962 |
|
|
1 |
255001 |
260000 |
255,275 |
|
|
1 |
270001 |
275000 |
270,572 |
|
|
1 |
310001 |
315000 |
313,557 |
|
|
1 |
325001 |
330000 |
329,000 |
|
|
1 |
335001 |
340000 |
338,000 |
|
|
1 |
340001 |
345000 |
342,000 |
|
|
1 |
345001 |
350000 |
350,000 |
|
|
1 |
385001 |
390000 |
386,191 |
|
|
1 |
390001 |
395000 |
394,445 |
|
|
1 |
410001 |
415000 |
411,500 |
|
|
1 |
415001 |
420000 |
418,000 |
|
|
2 |
435001 |
440000 |
872,253 |
|
|
1 |
445001 |
450000 |
450,000 |
|
|
1 |
575001 |
580000 |
576,608 |
|
|
1 |
580001 |
585000 |
580,200 |
|
|
1 |
675001 |
680000 |
677,406 |
|
|
1 |
680001 |
685000 |
681,700 |
|
|
1 |
720001 |
725000 |
720,389 |
|
|
1 |
760001 |
765000 |
764,470 |
|
|
1 |
805001 |
810000 |
807,900 |
|
|
1 |
835001 |
840000 |
839,300 |
|
|
1 |
885001 |
890000 |
885,168 |
|
|
1 |
995001 |
1000000 |
1,000,000 |
|
|
1 |
1595001 |
1600000 |
1,600,000 |
|
|
1 |
3395001 |
3400000 |
3,400,000 |
|
|
1 |
3415001 |
3420000 |
3,420,000 |
|
|
1 |
4180001 |
4185000 |
4,181,321 |
|
|
1 |
4700001 |
4705000 |
4,702,625 |
|
|
1 |
5995001 |
5000000 |
6,000,000 |
|
|
2 |
6935001 |
6940000 |
13,873,091 |
|
|
1 |
7235001 |
7240000 |
7,239,724 |
|
|
1 |
7780001 |
7785000 |
7,780,374 |
|
|
1 |
13955001 |
13960000 |
13,959,036 |
|
|
1 |
19415001 |
19420000 |
19,419,141 |
|
|
------------ |
------------ |
------------ |
------------ |
|
| Grand Total: |
10,427 |
|
130,229,324 |
|
|
========== |
========== |
========== |
========== |
|
|
|
|
| Categories of |
|
No. of |
Shares |
Percentage |
|
| Shareholders |
|
Shareholders |
Held |
of Capital |
|
| Individuals |
|
10226 |
32,027,146 |
24.593 |
|
| Investment
Companies |
13 |
1,608,078 |
1.235 |
|
| Insurance
Companies |
6 |
989,612 |
0.760 |
|
| Joint
Stock Companies |
93 |
38,031,102 |
29.203 |
|
| Financial
Institutions |
40 |
13,781,342 |
10.582 |
|
| Foreign
Companies |
31 |
43,459,820 |
33.372 |
|
| Modaraba
Companies |
18 |
332,224 |
0.255 |
|
|
------------ |
------------ |
------------ |
|
| Grand Total: |
|
10,427 |
130,229,324 |
100.000 |
|
|
========== |
========== |
========== |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of Maple Leaf Cement Factory 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
include 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 |
|
| accounts
and are further in accordance with accounting policies consistently applied; |
|
|
| (ii)
the expenditure incurred during the year was for the purpose of the company's
business; and |
|
|
| (iii)
the business conducted, investments made and the expenditure incurred during
the year were |
|
| in
accordance with the objects of the company; |
|
|
| (c)
in our opinion and to the best of our information and according to the
explanations given to |
|
| us,
the balance sheet, profit and loss account, cash flow statement and statement
of changes in |
|
| equity
together with the notes forming part thereof conform with approved accounting
standards as |
|
| applicable
in Pakistan, and, give the information required by the Companies Ordinance,
1984, in the |
|
| manner
so required and respectively give a true and fair view of the state of the
company's affairs |
|
| as
at June 30, 2000 and of the profit, its cash flow and changes in equity for
the year then ended; and |
|
|
| (d)
in our opinion, no Zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
|
|
|
Ford, Rhodes, Robson, Morrow |
|
| Lahore:
November 20, 2000 |
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
Note |
(Rupees in
thousand) |
|
| Share
Capital and Reserves |
|
| Authorised
capital |
|
| 200,000,000
(1999: 200,000,000) ordinary |
|
| shares
of Rs. 10/- each |
|
2,000,000 |
2,000,000 |
|
|
| Issued,
subscribed and paid up capital |
|
| 130,229,324
(1999: 130,229,324) ordinary |
|
| shares
of Rs. 10/- each |
|
3 |
1,302,293 |
1,302,293 |
|
| Share
deposit money |
|
52,076 |
-- |
|
|
| Reserves |
|
4 |
1,448,836 |
2,198,500 |
|
| Accumulated
loss |
|
|
(209,566) |
(960,848) |
|
|
|
|
|
|
|
2,593,639 |
2,539,945 |
|
| Long
Term Loans |
|
5 |
2,154,015 |
2,464,353 |
|
|
|
|
| Liabilities
Against Assets Subject |
|
|
|
| to
Finance Lease |
|
6 |
-- |
134 |
|
|
· |
|
| Deferred
and Long Term Liabilities |
|
7 |
5,726 |
201,021 |
|
| Long
Term Deposits |
|
8 |
9,840 |
10,891 |
|
| Current
Liabilities |
|
| Current
portion of long term liabilities |
|
9 |
848,938 |
8,163,941 |
|
| Short
term finance |
|
10 |
162,462 |
126,189 |
|
| Creditors,
accrued and other liabilities |
|
11 |
709,784 |
713,575 |
|
| Provision
for taxation |
|
|
47,353 |
46,243 |
|
|
------------- |
------------- |
|
|
1,768,537 |
1,702,401 |
|
| Contingencies
and Commitments |
|
12 |
|
|
------------- |
------------- |
|
|
6,531,757 |
6,918,745 |
|
|
========== |
========== |
|
|
|
|
| Tangible
Fixed Assets |
|
|
|
| Operating
assets |
|
13 |
5,511,202 |
6,097,798 |
|
| Assets
subject to finance lease |
|
14 |
410 |
1,820 |
|
| Capital
work in progress |
|
15 |
240 |
173 |
|
|
------------- |
------------- |
|
|
5,511,852 |
6,099,791 |
|
|
|
| Long
Term investments |
|
5,000 |
5,000 |
|
| Long Term Loans, Deposits |
|
17 |
|
| and
Deferred Costs |
|
51,680 |
15,066 |
|
|
|
|
|
| Current
Assets |
|
| Stores,
spares and loose toots |
|
18 |
427,115 |
366,524 |
|
| Stock-in-trade |
|
19 |
155,552 |
84,709 |
|
| Trade debts |
|
20 |
67,797 |
59,420 |
|
| Loans,
advances, deposits, prepayments |
|
| and
other receivables |
|
21 |
116,751 |
67,797 |
|
| Short
term investments |
|
22 |
2,659 |
1,396 |
|
| Cash
and bank balances |
|
23 |
163,036 |
219,042 |
|
|
|
------------- |
------------- |
|
|
963,225 |
798,888 |
|
| Cash
and bank balances |
|
------------- |
------------- |
|
|
6,531,757 |
6,918,745 |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
Tariq Sayeed Saigol |
|
Usman Said |
|
|
Chief Executive |
|
Director |
|
|
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
|
Note |
(Rupees in
thousand) |
|
| Sales |
|
24 |
2,799,111 |
2,035,455 |
|
| Cost
of goods sold |
|
25 |
2,347,646 |
2,093,613 |
|
|
|
------------- |
------------- |
|
| Gross
Profit/(Loss) |
|
|
451,465 |
(58,158) |
|
| Selling,
administrative and general expenses |
|
26 |
72,232 |
53,744 |
|
|
|
------------- |
------------- |
|
| Operating
Profit/(Loss) |
|
|
379,233 |
(111,902) |
|
| Other income |
|
27 |
17,751 |
35,639 |
|
|
|
------------- |
------------- |
|
|
|
396,984 |
(76,263) |
|
| Financial
charges |
|
28 |
467,197 |
502,669 |
|
| Other
charges |
|
29 |
13 |
44 |
|
|
------------- |
------------- |
|
|
467,210 |
502,713 |
|
|
------------- |
------------- |
|
| Loss
Before Taxation |
|
(70,226) |
(578,976) |
|
| Provision
for taxation |
|
30 |
71,844 |
(11,157) |
|
|
| Profit
/ (Loss) After Taxation |
|
1,618 |
(590,133) |
|
| Unappropriated
loss brought forward |
|
(960,848) |
(370,715) |
|
|
------------- |
------------- |
|
|
(959,230) |
(960,848) |
|
| Transfer
from general reserve |
|
749,664 |
-- |
|
|
------------- |
------------- |
|
| Loss
Carried Forward |
|
(960,848) |
(209,566) |
|
|
========== |
========== |
|
| Earning
Per Sham (Rs.) |
|
|
33 |
0.01 |
(4.50) |
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
Tariq Sayeed Saigol |
|
Usman Said |
|
|
Chief Executive |
|
Director |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
|
Note |
(Rupees in
thousand) |
|
| Cash
Flows From Operating Activities |
|
| Cash
generated from operations |
|
A |
500,008 |
222,082 |
|
| Payments for: |
|
| Earned leave |
|
(3,049) |
(6,351) |
|
| Taxes |
|
18,583 |
(12,105) |
|
| Long
term deposits (net) |
|
(1,051) |
(1,199) |
|
| Duties
and levies |
|
(229,328) |
140,164 |
|
|
------------ |
------------ |
|
| Net
Cash Inflow From Operating Activities |
|
285,163 |
342,591 |
|
| Cash
Flows From Investing Activities |
|
| Fixed
assets purchased |
|
(45,104) |
(293,782) |
|
| Capital
work in progress |
|
(67) |
(173) |
|
| Long
term loans and deposits (net) |
|
(3,061) |
4,855 |
|
| Sale
proceeds of fixed assets |
|
2,319 |
1,452 |
|
|
------------ |
------------ |
|
| Net
Cash Outflow From Investing Activities |
|
(45,913) |
(287,648) |
|
| Cash
Flows From Financing Activities |
|
| Right issue |
|
52,076 |
-- |
|
| Long
term loans less repayments |
|
(290,222) |
(76,311) |
|
| Repayment
of liability under finance lease |
|
(706) |
(10,557) |
|
| Deferred cost |
|
(56,404) |
(10,588) |
|
|
------------ |
------------ |
|
| Net
Cash Outflow From Financing Activities |
|
(295,256) |
(97,456) |
|
| Net
Decrease in Cash and Cash Equivalents |
|
(56,006) |
(42,513) |
|
| Cash
and Cash Equivalents at beginning of the Year |
B |
219,042 |
261,555 |
|
|
|
|
------------ |
------------ |
|
| Cash
and Cash Equivalents at end of the Year |
|
B |
163,036 |
219,042 |
|
|
========== |
========== |
|
|
|
Tariq Sayeed Saigol |
|
Usman Said |
|
|
Chief Executive |
|
Director |
|
|
|
| NOTES
TO THE CASH FLOW STATEMENT |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
(Rupees in
thousand) |
|
| A.
Cash Flows From Operating Activities |
|
| Loss
before taxation |
|
(70,226) |
(578,976) |
|
| Add/(less)
adjustment for non cash charges |
|
| and
other items |
|
| Depreciation |
|
644,308 |
732,006 |
|
| Amortisation
of leased assets |
|
103 |
455 |
|
| Provision
for earned leave |
|
2,289 |
3,297 |
|
| Profit
on sale of fixed assets |
|
(620) |
(278) |
|
| Amortisation
of deferred costs |
|
22,851 |
6,915 |
|
| Provision
for diminution in short term investment |
|
(1,263) |
598 |
|
|
------------ |
------------ |
|
| Cash
Before Working Capital Changes |
|
597,442 |
164,017 |
|
| Movement
in Working Capital |
|
| (Increase)/decrease
in current assets |
|
| Stores,
spares and loose tools |
|
(60,591) |
(38,192) |
|
| Stock in trade |
|
(70,843) |
16,986 |
|
| Trade debts |
|
(38,692) |
(219) |
|
| Loans,
advances, deposit, prepayments |
|
|
|
| and
other receivables (net) |
|
(48,954) |
(19,970) |
|
| Short
term investment |
|
-- |
52,687 |
|
|
------------ |
------------ |
|
|
(219,080) |
11,292 |
|
| Increase
in short term running finance |
|
36,273 |
(45,532) |
|
|
| Increase/(decrease)
in creditors, accrued |
|
| and
other liabilities (net) |
|
85,373 |
92,305 |
|
|
------------ |
------------ |
|
| Cash
Generated From Operations |
|
500,008 |
222,082 |
|
|
|
========== |
========== |
|
|
|
|
|
| B.
Cash and Cash Equivalents |
|
| Cash
and cash equivalents included in the cash flow statement comprise only cash
and bank balances |
|
| as
appearing in the balance sheet. |
|
|
|
Tariq Sayeed Saigol |
|
Usman Said |
|
|
Chief Executive |
|
Director |
|
|
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
|
Share |
General |
Capital |
Share deposit |
Accumulated |
|
|
|
|
Capital |
Reserve |
Reserve |
money |
Profit/(Loss) |
Total |
|
|
-----------------------------------------(Rupees
in thousand)------------------------------------------ |
|
| Balance
as at June 30, 1998 |
1,302,293 |
749,664 |
1,448,836 |
-- |
(370,715) |
3,130,078 |
|
| Net
loss for the year |
-- |
-- |
-- |
-- |
(590,133) |
(590,133) |
|
|
------------ |
------------ |
------------ |
------------ |
------------ |
------------ |
|
| Balance
as at June 30, 1999 |
1,302,293 |
749,664 |
1,448,836 |
-- |
(960,848) |
2,539,945 |
|
| Net
Profit for the year |
-- |
-- |
-- |
-- |
1,618 |
1,618 |
|
| Share
deposit money |
-- |
-- |
-- |
52,076 |
-- |
52,076 |
|
| Transfer
from general reserve |
-- |
(749,664) |
-- |
-- |
749,664 |
-- |
|
|
------------ |
------------ |
------------ |
------------ |
------------ |
------------ |
|
| Balance
as at June 30, 2000 |
1,302,293 |
-- |
1,448,836 |
52,076 |
(209,566) |
2,593,639 |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
Chief Executive |
|
Director |
|
|
|
| NOTES
TO THE ACCOUNTS |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
| 1.
The Company and Nature of Business |
|
| Maple
Leaf Cement Factory was incorporated on April 13, 1960 under the Companies
Act, 1913 (now |
|
| Companies
Ordinance, 1984) as public company limited by shares and was listed on Stock
Exchanges |
|
| in
Pakistan on August 17, 1994. It is engaged in production and sale of cement. |
|
|
| 1.1
The company's current liabilities exceeded current assets by Rs. 805.312
million (1999: |
|
| Rs.
905.513 million) which is due to the current portion of principal repayments
of loans from |
|
| International
Finance Corporation (IFC) plus their overdue installments. |
|
|
| The
Board of IFC has agreed to restructure both loans by asking the company to
repay the principal |
|
| portion
by US$ 2.5 million equivalent to Pak Rs. 130.750 million during the financial
year 2001. |
|
| The
company has to finance US$ 1.093 million from its own sources whilst the
remaining balance |
|
| would
be raised from a commercial bank, with the backing of IFC's guarantee. The
formal agreement |
|
| for
this restructuring is in process. As a result of the restructuring, the
current portion and overdue |
|
| installments
of IFC loans amounting to Rs. 707.884 million will stand deferred and
excluded from |
|
| current
liabilities. |
|
|
| With
the additional equity injection and debt rescheduling arrangements in place,
the management |
|
| considers
that the company is now out of crisis and will be able to meet its debt
servicing |
|
| requirements. |
|
|
| 2.
Summary of Significant Accounting Policies |
|
| 2.1
Accounting convention |
|
| These
accounts have been prepared under the historical cost convention, modified by
capitalization |
|
| of
exchange differences referred to in note 2.12. |
|
|
| 2.2 Taxation |
|
|
| Current |
|
| The
provision for current taxation is based on taxable income at the current
rates of taxation after |
|
| taking
into account tax credit available, if any, or half percent of turnover,
whichever is higher in |
|
| accordance
with the provisions of the Income Tax Ordinance, 1979. |
|
|
| Deferred |
|
| The
company provides for deferred taxation on all material timing differences
using the liability |
|
| method. |
|
|
| 2.3
Retirement benefits |
|
| Gratuity fund |
|
| The
company operates a recognised funded gratuity scheme for all employees,
payable on cessation |
|
| of
employment, subject to a minimum qualifying period of service. The company
has not been |
|
| making
contribution to gratuity fund trust since 1994 as the trust has adequate
funds to meet its |
|
| obligations. |
|
|
| Provident
fund |
|
| The
company also operates an approved contributory provident fund scheme for all
employees. |
|
| Equal
monthly contributions are made both by the company and employees at the rate
of 10 |
|
| percent
of the basic salary to the fund. |
|
|
| 2.4
Provision for earned leave |
|
| Provision
for earned leave benefits is made annually to meet the obligations under the
employees' |
|
| service rules. |
|
|
| 2.5
Tangible fixed assets |
|
| Operating
fixed assets are stated at cost less accumulated depreciation except freehold
land and |
|
| capital
work in progress, which is stated at cost. Cost in relation to certain plant
and machinery |
|
| signifies
historical cost and exchange losses, referred to in note 2.12. |
|
|
| Transactions
relating to jointly owned assets with Pak American Fertilizers Limited (PAFL)
as stated |
|
| in
note 13.4 are recorded on the basis of advices received from the housing
colony. |
|
|
| Depreciation
is calculated at the rates specified in note 13 on reducing balance method. |
|
|
| Full
annual rate of depreciation is applied on cost of additions while no
depreciation is charged |
|
| on
assets deleted during the year. Maintenance and normal repairs are charged to
income as and |
|
| when
incurred. Major renewals and improvements are capitalised. |
|
|
| Gain
and losses on disposal of assets, if any, are included in the profit. |
|
|
| 2.6
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 leases are amortised over the useful life of the
assets on a reducing |
|
| balance
method at the rates given in note 14. |
|
|
| 2.7
Long term investments |
|
| These
are stated at average cost. |
|
|
| 2.8
Short term investments |
|
| These
are stated at average cost or market price whichever is lower. |
|
|
| 2.9
Deferred costs |
|
| Expenses,
the benefit of which is expected to spread over several years, are deferred
and amortised |
|
| over
their useful life but not exceeding five years. |
|
|
| 2.10 Stores, spares and loose tools |
|
| These
are valued at moving average cost while items considered obsolete are carried
at nil value. |
|
| Items
in transit are valued at cost comprising invoice values plus other charges
incurred thereon. |
|
|
| 2.11
Stock in trade |
|
| Stock
of raw materials, work in process and finished goods are valued at lower of
average cost |
|
| and
net realizable value. Cost of work in process and finished goods represent
direct cost of |
|
| material,
labour and appropriate portion of production overheads. Packing expenses are
not |
|
| recognized
for the purpose of determination of cost. |
|
|
| Net
realizable value signifies the ex-factory sales price less expenses and taxes
necessary to be |
|
| incurred
to make the sale. |
|
|
| 2.12
Foreign currencies |
|
| Assets
and liabilities in foreign currencies are converted into Pak Rupees at the
rates of exchange |
|
| approximating
to those prevalent on the balance sheet date except where forward exchange |
|
| contracts
have been made under the Exchange Risk Cover Scheme of the Government of
Pakistan |
|
| for
payment of liabilities, in which case the contracted rates are applied. |
|
|
| Exchange
gain or losses on translation of foreign currency loans are adjusted against
the cost of |
|
| fixed
assets acquired from the proceeds of such loans. All other exchange
differences and exchange |
|
| risk
cover fee are included in the profit currently. |
|
|
| 2.13
Mark up, interest and other charges |
|
| All
the mark up, interest and other charges are charged to income. |
|
|
| 2.14
Revenue recognition |
|
| Revenue
from sale is recognised on delivery of goods to customers. Dividend income is
recognised |
|
| on
actual receipt basis whereas return on deposits is accounted for on a time
proportion basis. |
|
|
|
2000 |
1999 |
|
|
(Rupees in
thousand) |
|
| 3.
Issued, Subscribed and Paid up Capital |
|
| 101,243,523
(1999: 101,243,523) ordinary shares |
|
| of
Rs. 10 each fully paid in cash |
|
1,012,435 |
1,012,435 |
|
|
| 9,990,100
(1999: 9,990,100) ordinary shares of |
|
| Rs.
10 each issued as fully paid for |
|
| consideration
other than cash |
|
99,901 |
99,901 |
|
|
| 18,995,701
(1999: 18,995,701) ordinary shares of |
|
| Rs.
10 each issued as fully paid bonus shares |
|
189,957 |
189,957 |
|
|
------------- |
------------- |
|
|
1,302,293 |
1,302,293 |
|
|
========== |
========== |
|
|
|
|
| 4. Reserves |
|
| Capital |
|
| Premium
on issue of shares |
|
1,448,836 |
1,448,836 |
|
|
| Revenue |
|
| General
reserve |
|
749,664 |
749,664 |
|
| Transfer
to Profit & Loss Account |
|
(749,664) |
-- |
|
|
------------- |
------------- |
|
|
-- |
749,664 |
|
|
------------- |
------------- |
|
|
1,448,836 |
2,198,500 |
|
|
========== |
========== |
|
|
| 5.
Long Term Loans-Secured |
|
| Loan Lender |
|
Currency |
Foreign
Currency |
Pak Rupees |
|
|
|
|
2000 |
1999 |
2000 |
1999 |
|
|
|
------------------------(Rupees
in thousand)---------------------- |
|
|
| 1.
Economic Affairs Division |
|
| (Govt.
of Pakistan) |
|
| Danish Credit |
|
PKR |
-- |
-- |
8,418 |
10,289 |
|
|
PKR |
-- |
-- |
-- |
13,618 |
|
| 2.
IBPD - Loan |
|
|
| 3.
International Finance |
|
| Corporation
(USA) |
|
| a) Loan "A" |
|
US $ |
28,125 |
30,000 |
869,751 |
927,734 |
|
| b) Loan "B" |
|
US $ |
32,500 |
35,000 |
1,699,750 |
1,816,500 |
|
|
| 4. Muslim Commercial Bank |
PKR |
-- |
-- |
229,900 |
246,900 |
|
|
| 5.
The Bank of Punjab |
PKR |
-- |
-- |
195,000 |
265,000 |
|
|
------------- |
------------- |
------------- |
------------- |
|
|
60,625 |
65,000 |
3,002,819 |
3,280,041 |
|
|
========== |
========== |
========== |
========== |
|
| Less:
Current portion shown under |
|
| current
liabilities (Note: 9) |
|
(848,804) |
(815,688) |
|
|
------------- |
------------- |
|
|
2,154,015 |
2,464,353 |
|
|
========== |
========== |
|
| Terms
of repayment |
|
|
|
| The
loan 1 was originally payable in foreign currency but as per Government
decision, the outstanding |
|
| loan
balance as at April 21, 1987 was converted into Pak Rupees at the exchange
rate prevailing at the |
|
| date.
The balance of loan is repayable in nine equal half yearly installments by
October 1,2004 and carries |
|
| mark-
up @ 14% per annum payable half yearly. |
|
|
| The
loan 3 (a) is covered under, the State Bank of Pakistan Risk Coverage Scheme
and converted at the |
|
| various
exchange rates prevailing on the dates of opening of letters of credit. The
exchange risk fee is |
|
| payable
@ 6.66% per annum. The loan is payable in sixteen equal half yearly
installments commencing |
|
| from
January 15, 1999 and carries mark- up @ 9.85% per annum. |
|
|
| The
loan 3 (b) is converted at the exchange rate prevailing on the balance sheet
date, the loan is repayable |
|
| in
fourteen equal half yearly installments and carries mark - up @ 9.70% per
annum. |
|
|
| The
loan 4, as per terms of the rescheduling with the bank, Rs. 1.0 million per
month is payable from July, |
|
| 1999
to July, 2001 and thereafter in twelve equal half yearly installments by
January, 2007. The loan |
|
| carries
mark - up @ 15% per annum. |
|
|
| The
loan 5 is repayable in five half yearly installments by October, 2002 and
carries mark- up at the rate |
|
| of
46 paisa per thousand per day. |
|
|
| Security |
|
| The
loans and interest / mark-up thereon are secured by an equitable mortgage on
all the land, present |
|
| and
future plant, buildings, fixtures, equipment and other immovable assets and
floating charges and/or |
|
| hypothecation
on all movable equipment and all other present and future assets of the
company. |
|
|
| Economic
Affairs Division loans are secured by bank guarantees issued by ABL covered
through |
|
| mortgage/charge
as stated above and further secured by the way of lien on deposits with bank
upto 10% |
|
| of
the outstanding liability. |
|
|
| All
charges in favour of the lenders rank pari passu with each other. |
|
|
| 6.
Liabilities Against Assets Subject to Finance Lease |
|
| The
amount of future payments and the period in which these payments will become
due are: |
|
|
|
|
2000 |
1999 |
|
|
|
Note |
(Rupees in
thousand) |
|
| Year
ending June 30, |
|
| 2000 |
|
-- |
761 |
|
| 2001 |
|
135 |
135 |
|
|
------------ |
------------ |
|
|
135 |
896 |
|
| Less:
Financial charges allocated |
|
|
|
| to
future periods |
|
(1) |
(56) |
|
|
------------ |
------------ |
|
|
134 |
840 |
|
|
| Less:
Current portion shown under |
|
| current
liabilities |
|
9 |
(134) |
(706) |
|
|
------------ |
------------ |
|
|
-- |
134 |
|
|
========== |
========== |
|
| The
implicit rate used as the discounting factor is 24% (1999: 24%) per annum.
Rentals are payable in |
|
| equal
monthly installments. The lease agreements carry renewal option at the end of
lease period but do |
|
| not
contain option to obtain ownership of the leased assets. There are no
financial restrictions in the lease |
|
| agreements.
The liability is partly secured by a deposit of Rs. 80 thousand (1999: Rs. 80
thousand) |
|
| included
in long term security deposits referred to in Note-17. |
|
|
|
|
2000 |
1999 |
|
|
|
Note |
(Rupees in
thousand) |
|
| 7.
Deferred and Long Term Liabilities |
|
| Deferred
taxation |
|
7.1 |
-- |
54,371 |
|
| Vacation
benefits |
|
7.2 |
5,726 |
6,486 |
|
| Duties
and levies |
|
7.3 |
-- |
140,164 |
|
|
------------ |
------------ |
|
|
5,726 |
201,021 |
|
|
========== |
========== |
|
|
|
|
| 7.1
Deferred taxation |
|
|
|
| Due
to heavy tax losses, the company's deferred tax liability works out to be
Rupees nil for the |
|
| year. |
|
|
| 7.2
Vacation benefits |
|
| These
represent balance of provision made against un-availed leaves of employees
payable on |
|
| their
retirement / resignation / termination. The balance includes Rs. 2,074
thousand (1999: |
|
| Rs.
1,440 thousand) being provision made during the year for executives. |
|
|
| 7.3
Duties and levies |
|
| These
represents custom duties payable on imported plant and machinery of expansion
project |
|
| capitalised
as fixed assets. |
|
|
| 8.
Long Term Deposits |
|
| These
represents the interest free security deposits from stockists and are
repayable on cancellation or |
|
| withdrawal
of the dealerships. These are being utilised by the company in accordance
with the terms of |
|
| the
dealership agreements. |
|
|
|
|
2000 |
1999 |
|
|
|
Note |
(Rupees in
thousand) |
|
| 9.
Current Portion of Long Term Liabilities |
|
| Long
term loans |
|
5 |
848,804 |
815,688 |
|
| Liabilities
against assets subject to finance |
|
|
|
| lease |
|
6 |
134 |
706 |
|
|
------------ |
------------ |
|
|
848,938 |
816,394 |
|
|
========== |
========== |
|
|
|
|
| 10.
Shod Term Finance - Secured |
|
|
|
| Commercial
Bank |
|
10.1 |
99,462 |
126,189 |
|
| Non-Banking
Financial Institution |
|
10.2 |
63,000 |
-- |
|
|
|
------------ |
------------ |
|
|
|
162,462 |
126,189 |
|
|
========== |
========== |
|
|
|
|
| 10.1
Aggregate facility available under the mark-up arrangements from commercial
banks is |
|
| Rs.
100,000 thousand ( 1999: Rs. 138,000 thousand ). The rate of mark-up is
18.98% per annum. |
|
| The
facility is secured by hypothecation of inventories and book debts. All the
charges rank pari |
|
| passu
with each other. |
|
|
| 10.2
These represents the facilities obtained from Modaraba and investment bank
amounting to |
|
| Rs.
75,000 thousand ( 1999: Nil). The mark-up for both facilities is 15.25% per
annum. These |
|
| facilities
are secured by hypothecation of current assets of the company. |
|
|
|
|
2000 |
1999 |
|
|
|
Note |
(Rupees in
thousand) |
|
| 11.
Creditors, Accrued and Other Liabilities |
|
| Creditors |
|
182,880 |
131,541 |
|
| Accrued
liabilities |
|
214,172 |
119,212 |
|
| Advances
from customers |
|
17,022 |
21,516 |
|
| Security
deposits - interest free, repayable on demand |
|
19,692 |
16,496 |
|
| Contractors
retention money |
|
4,552 |
40,439 |
|
| Interest
accrued on secured loans |
|
181,131 |
183,290 |
|
| Exchange
risk fee payable (Net) |
|
76,515 |
100,454 |
|
| Custom
duties payable |
|
7.3 |
836 |
90,000 |
|
| Royalty
and excise duty payable |
|
8,684 |
7,501 |
|
| Other
payables |
|
4,300 |
3,126 |
|
|
------------ |
------------ |
|
|
709,784 |
713,575 |
|
|
========== |
========== |
|
|
| 12.
Contingencies and Commitments |
|
| 12.1
Contingencies |
|
| Claims
against the company not acknowledged as debt Rs. 3,956 thousand (1999: Rs.
3,804 |
|
| thousand). |
|
|
| (ii)
Pending decision of various appeals in the Lahore High Court, Supreme Court
of Pakistan |
|
| and
Custom, Excise and Sales Tax Appellate Tribunal, Lahore regarding sales tax
payable |
|
| from
accounting year 1989 to 1993. There is an approximate liability of Rs. 16,152
thousand |
|
| (1999:
Rs. 16,152 thousand) for disputed amount of sales tax. |
|
|
| (iii)
The company has filed various writ petitions with the Lahore High Court
against imposition |
|
| of
custom duty, regulatory duty and sales tax amounting to Rs. 321,987 thousand
(1999: |
|
| Rs.
316,484 thousand). The petitions are pending adjudication. |
|
|
| (iv)
Guarantees given to the Collector, Central Excise and Sales Tax, Customs,
Sindh Development |
|
| and
Maintenance, Karachi as referred to in Note 12.1 (ii) above and Sui Northern
Gas Pipelines |
|
| Limited
amounting to Rs. 19,596 thousand (1999: Rs. 7,100 thousand) and Rs. 16,500 |
|
| thousand
(1999: Rs. 6,500 thousand) respectively. |
|
|
| 12.2
Commitments |
|
| (i)
Contracts for capital expenditure Rs. Nil (1999: Rs. 7,395 thousand). |
|
| (ii)
Letters of credit other than for capital expenditure Rs. 20,426 thousand
(1999: Rs. 5,882 |
|
| thousand). |
|
|
| 13.
Operating Fixed Assets |
|
| The
following is a statement of operating fixed assets |
|
|
|
Cost as at |
Additional/ |
Cost as at |
Accumu- |
Book |
Depreciation |
|
|
June 30, |
(deletions)/ |
June 30, |
lated |
value as at |
Charge for |
Rate |
|
|
1999 |
(adjustment) |
2000 |
depreciation |
June 30,2000 |
the year |
% |
|
|
-------------------------------------------------(Rupees
in thousand)---------------------------------------------------- |
|
| Land
- Freehold |
42,144 |
-- |
42,144 |
-- |
42,144 |
-- |
-- |
|
| Buildings
on freehold land |
728,046 |
9,299 |
737,345 |
232,047 |
505,298 |
52,530 |
5-10 |
|
| Road,
bridges and |
|
|
|
| railway
sidings |
58,274 |
13,492 |
71,766 |
20,710 |
51,056 |
5,582 |
5-10 |
|
|
|
|
|
| Plant
and machinery |
6,690,732 |
39,157 |
6,722,579 |
1,867,665 |
4,854,914 |
572,290 |
10-20 |
|
|
|
(7,310) |
|
|
| Furniture,
fixtures and |
|
|
| equipment |
|
36,338 |
1,634 |
37,728 |
24,001 |
13,727 |
2,896 |
10-15 |
|
|
|
(244) |
|
|
|
|
|
|
|
| Quarry
equipment |
130,404 |
-- |
130,404 |
98,883 |
31,521 |
7,889 |
20 |
|
|
|
|
|
| Vehicles |
|
37,995 |
2,820 |
38,014 |
26,602 |
11,412 |
3,004 |
20 |
|
|
|
(2,801) |
|
|
|
|
|
|
|
| Share of joint assets (Note:
13.4) |
3,582 |
16 |
3,598 |
2,468 |
1,130 |
126 |
5-10 |
|
|
------------ |
------------ |
------------ |
------------ |
------------ |
------------ |
|
|
7,727,515 |
66,418 |
7,783,578 |
2,272,376 |
5,511,202 |
644,308 |
|
|
(10,355) |
|
|
------------ |
------------ |
------------ |
------------ |
------------ |
------------ |
|
| 1999 |
|
7,209,016 |
522,040 |
7,727,515 |
1,629,717 |
6,097,798 |
732,006 |
|
|
(3,541) |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
| 13.1
Addition to plant and machinery includes exchange loss amounting to Rs.
13,000 thousand (1999: |
|
| 190,400
thousand). |
|
|
| 13.2
The company has given on lease land measuring 8 acres in 1994 to Maple Leaf
Electric Company |
|
| Limited
(an associated company) at an annual rent of Rs. 360 thousand and land
measuring 6 |
|
| kanals
and 18 marlas to Sui Northern Gas Pipelines Limited in 1991 for a period of
10 years at |
|
| an
annual rent of Rs. 2 thousand. |
|
|
| 13.3
The depreciation charge for the year has been allocated as follows: |
|
|
|
2000 |
1999 |
|
|
|
Notes |
(Rupees in
thousand) |
|
| Cost of sales |
|
25 |
641,927 |
729,631 |
|
| Administrative
and general expenses |
|
26 |
2,256 |
2,246 |
|
| Other
manufacturing expenses |
|
125 |
129 |
|
|
------------ |
------------ |
|
|
644,308 |
732,006 |
|
|
========== |
========== |
|
|
|
|
| 13.4
Ownership of the housing colony assets included in the fixed assets is shared
by the company |
|
| jointly
with Pak American Fertilizers Limited in the ratio of 101:245 since the time
when both the |
|
| companies
were managed by Pakistan Industrial Development Corporation (PIDC). These
assets |
|
| are
in possession of housing colony establishment for mutual benefit. |
|
|
|
2000 |
1999 |
|
|
(Rupees in
thousand) |
|
| The
cost of these assets are as follows: |
|
| Buildings |
|
2,138 |
2,138 |
|
| Roads
and bridge |
|
202 |
202 |
|
| Air strip |
|
16 |
16 |
|
| Plant
and machinery |
|
257 |
257 |
|
| Furniture,
fixtures and equipment |
|
824 |
808 |
|
| Vehicles |
|
161 |
161 |
|
|
------------ |
------------ |
|
|
3,598 |
3,582 |
|
|
========== |
========== |
|
|
|
|
| 13.5
Disposal of operating fixed assets |
|
|
|
Accumulated |
Book |
Sale |
|
|
| Particulars
of assets |
Cost |
Depreciation |
value |
proceeds |
Mode of disposal |
Sold to |
|
|
-----------------------------------------(Rupees
in thousand)------------------------------------------ |
|
| Plant
and Machinery |
|
| Drill machine |
|
910 |
795 |
115 |
652 |
Negotiation |
|
U/s Sarfraz & |
|
Co, Iskanderabad |
|
| Furniture
& Fixtures |
|
| Fridge |
|
188 |
73 |
115 |
117 |
Company's policy |
Factory employees |
|
| Air
- conditioner |
45 |
17 |
28 |
35 |
Company's policy |
Housing colony |
|
| Television |
|
11 |
4 |
7 |
7 |
Company's policy |
Haji Mohammad Aslam |
|
employee |
|
|
| Vehicles |
|
| Suzuki
Margalla |
501 |
244 |
257 |
257 |
Company's policy |
Mr. Fazle Subhan |
|
employee |
|
|
| Pajero (Jeep) |
|
2,300 |
1,123 |
1,177 |
1,250 |
Negotiation |
|
Maple Leaf Electric |
|
Company Ltd. |
|
| 14.
Assets Subject to Finance Lease |
|
| The
following is a statement of leased assets |
|
|
Cost as at |
Additions/ |
Cost as at |
Accumu- |
Book value |
Amortisation |
|
|
|
June 30, |
(deletions) |
June 30, |
lated |
as at June |
Charge for |
Rate |
|
|
1999 |
|
2000 |
Amotisation |
30, 2000 |
the year |
% |
|
|
-------------------------------------------(Rupees
in thousand)---------------------------------------------- |
|
|
|
| Vehicles |
3,355 |
(2,554) |
801 |
391 |
410 |
103 |
20 |
|
|
------------ |
------------ |
------------ |
------------ |
------------ |
------------ |
|
|
|
3,355 |
(2,554) |
801 |
391 |
410 |
103 |
|
|
------------ |
------------ |
------------ |
------------ |
------------ |
------------ |
|
| 1999 |
35,486 |
(32,131 ) |
3,355 |
1,535 |
1,820 |
455 |
|
|
------------ |
------------ |
------------ |
------------ |
------------ |
------------ |
|
| Note:
deletions consist of leased assets transferred to owned assets. |
|
|
| 14.1
Amortisation charge for the year has been allocated as follows: |
|
|
2000 |
1999 |
|
|
Notes |
(Rupees in
thousand) |
|
|
| Cost of sales |
|
25 |
103 |
455 |
|
|
------------ |
------------ |
|
|
103 |
455 |
|
|
========== |
========== |
|
|
|
|
| 15
Capital Work in Progress |
|
| Civil works |
|
240 |
173 |
|
|
========== |
========== |
|
|
|
|
| 16.
Long Term Investments |
|
| In
associated companies |
|
| Unquoted |
|
| Security
General Insurance Company Limited |
|
| 500,000
(1999: 500,000) fully paid ordinary |
|
| Shares
of Rs. 10 each |
|
5,000 |
5,000 |
|
|
========== |
========== |
|
| Value
of investment in Security General Insurance Company Limited based on the last
available audited |
|
| accounts
for the year ended December 31, 1999 (1999: December 31, 1998) is Rs. 6,085
thousand (1999: |
|
| Rs.
5,799 thousand). |
|
|
| 17.
Long Term Loans, Deposits and Deferred Costs |
|
| Long
term loans - considered good |
|
| Employees |
|
17.1 |
8,067 |
4,750 |
|
| Security
deposits |
|
|
2,034 |
2,290 |
|
| Deferred
costs |
|
17.2 |
41,579 |
8,026 |
|
|
------------ |
------------ |
|
|
51,680 |
15,066 |
|
|
========== |
========== |
|
|
|
2000 |
1999 |
|
|
(Rupees in
thousand) |
|
| 17.1
Loans to employees- secured |
|
|
|
|
Executives |
Others |
|
| House
building |
|
908 |
5,006 |
5,914 |
5,290 |
|
| Vehicle |
|
133 |
5,225 |
5,358 |
1,864 |
|
| Others |
|
77 |
206 |
283 |
341 |
|
|
------------ |
------------ |
------------ |
------------ |
|
|
1,118 |
10,437 |
11,555 |
7,495 |
|
|
========== |
========== |
========== |
========== |
|
|
|
|
| Less:
Current portion shown |
|
| under
current assets Note 21 |
|
(449) |
(3,039) |
(3,488) |
(2,745) |
|
|
------------ |
------------ |
------------ |
------------ |
|
|
669 |
7,398 |
8,067 |
4,750 |
|
|
========== |
========== |
========== |
========== |
|
| The
above balances are classified as under: |
|
| Outstanding |
|
| exceeding
three years |
|
497 |
1,193 |
1,690 |
1,967 |
|
| others |
|
172 |
6,205 |
6,377 |
2,783 |
|
|
------------ |
------------ |
------------ |
------------ |
|
|
669 |
7,398 |
8,067 |
4,750 |
|
|
========== |
========== |
========== |
========== |
|
| Interest
rate and terms of repayment |
|
| Rate
of interest |
|
|
Executives |
Others |
|
| House
building loans |
|
4% |
5% |
|
| Vehicle loans |
|
4% |
5% |
|
|
| Number
of monthly Installments |
|
| House
building loans |
|
114 |
60- 114 |
|
| Vehicle loans |
|
72 |
48- 72 |
|
| Other loans |
|
-- |
30 |
|
|
| Security |
|
| Loans
to employees are secured against charge and lien on retirement benefits. |
|
|
| 17.1.1
The maximum aggregate amount due from executives at the end of any month
during the year |
|
| was
Rs. 1,346 thousand (1999: Rs. 1,341 thousand). |
|
|
|
|
2000 |
1999 |
|
|
|
Notes |
(Rupees in
thousand) |
|
| 17.2
Deferred Costs |
|
| Share
Issue expenses |
|
8,026 |
4,353 |
|
| Golden
handshake |
|
56,404 |
10,588 |
|
|
------------ |
------------ |
|
|
64,430 |
14,941 |
|
| Less:
Amortisation |
|
26 |
(22,851) |
(6,915) |
|
|
------------ |
------------ |
|
|
41,579 |
8,026 |
|
|
========== |
========== |
|
| These
are being amortised over a period not exceeding five years. |
|
|
| 18.
Stores, Spares and Loose Tools |
|
| Stores |
|
118,914 |
123,254 |
|
| Spares
including in transit Rs. 10,909 thousand |
|
|
|
| (1999:
Rs. 4,244 thousand) |
|
313,754 |
249,635 |
|
| Loose tools |
|
4,447 |
3,635 |
|
|
------------ |
------------ |
|
|
437,115 |
376,524 |
|
| Less:
Provision for obsolescence |
|
(10,000) |
(10,000) |
|
|
------------ |
------------ |
|
|
427,115 |
366,524 |
|
|
========== |
========== |
|
|
|
|
| 19.
Stock-in-trade |
|
|
|
| Raw materials |
|
6,696 |
4,998 |
|
| Packing
materials |
|
14,273 |
11,197 |
|
| Work
in process |
|
89,229 |
48,560 |
|
| Finished
goods |
|
45,354 |
19,954 |
|
|
------------ |
------------ |
|
|
155,552 |
84,709 |
|
|
========== |
========== |
|
|
| 20.
Trade Debts- Considered Good |
|
| Secured |
|
-- |
2,834 |
|
| Unsecured |
|
98,112 |
56,586 |
|
|
------------ |
------------ |
|
|
98,112 |
59,420 |
|
|
========== |
========== |
|
|
| 21.
Loans, Advances, Deposits, Prepayments and |
|
| Other
Receivables |
|
| Current
portion of long term loans |
|
| Employees |
|
17.10 |
3,488 |
2,745 |
|
| Advances
- considered good |
|
|
|
| Employees |
|
21.10 |
2,756 |
3,866 |
|
| Suppliers |
|
|
48,438 |
28,815 |
|
| Associated
companies |
|
21.20 |
358 |
95 |
|
| Due
from gratuity fund trust |
|
20,840 |
5,129 |
|
| Prepayments |
|
1,999 |
556 |
|
| Excise duty |
|
7,438 |
8,636 |
|
| Interest
receivable |
|
2,269 |
6,067 |
|
| Other
receivables |
|
29,165 |
11,888 |
|
|
------------ |
------------ |
|
|
116,751 |
67,797 |
|
|
========== |
========== |
|
|
|
|
| 21.1
Included in advances to employees are amounts due from executives Rs. 142
thousand (1999: |
|
| Rs.
397 thousand). The maximum aggregate amount due from executives at the end of
any month |
|
| during
the year was Rs. 167 thousand (1999: Rs. 470 thousand). |
|
|
| 21.2
The maximum aggregate amount due from associated companies at the end of any
month during |
|
| the
year was Rs. 5,479 thousand (1999: Rs. 95 thousand). |
|
|
| 22.
Short Term Investments |
|
| Quoted |
|
| Fidelity
Investment Bank Limited |
|
| 664,738
(1999: 664,738) fully paid ordinary |
|
| Shares
of Rs. 10 each |
|
7,120 |
7,120 |
|
|
------------ |
------------ |
|
|
7,120 |
7,120 |
|
| Less:
Provision for diminution in value of investments |
|
(4,461) |
(5,724) |
|
|
------------ |
------------ |
|
|
2,659 |
1,396 |
|
|
========== |
========== |
|
| Aggregate
market value of quoted investments is Rs. 2,659 thousand (1999: Rs. 1,396
thousand). |
|
|
| 23.
Cash and Bank Balances |
|
| The
balances were held: |
|
| At banks |
|
| on
deposit accounts |
|
43,000 |
97,200 |
|
| on
profit and loss sharing accounts |
|
110,138 |
102,636 |
|
| on
current accounts |
|
9,868 |
19,116 |
|
|
------------ |
------------ |
|
|
163,006 |
218,952 |
|
| In hand |
|
30 |
90 |
|
|
------------ |
------------ |
|
|
163,036 |
219,042 |
|
|
========== |
========== |
|
| Included
in deposit accounts is a sum of Rs. 842 thousand (1999: Rs. 2,391 thousand)
held by Allied |
|
| Bank
of Pakistan Limited as margin against guarantees issued by the bank to secure
long term local |
|
| currency
loans referred to in Note 5. |
|
|
|
2000 |
1999 |
|
|
Note |
(Rupees in
thousand) |
|
| 24. Sales |
|
| Gross sales |
|
4,353,526 |
3,577,219 |
|
| Less:
Excise duty |
|
1,468,599 |
1,455,355 |
|
| Rebate |
|
85,816 |
86,409 |
|
|
------------ |
------------ |
|
|
1,554,415 |
1,541,764 |
|
|
------------ |
------------ |
|
|
2,799,111 |
2,035,455 |
|
|
========== |
========== |
|
|
| 25.
Cost of Goods Sold |
|
| Raw
material consumed |
|
25.1 |
94,458 |
76,996 |
|
| Packing
material consumed |
|
|
253,541 |
236,819 |
|
| Fuel
and power |
|
|
1,157,264 |
772,682 |
|
| Stores
and spares consumed |
|
|
80,435 |
43,817 |
|
| Salaries,
wages and amenities |
|
|
103,198 |
116,641 |
|
| Insurance |
|
|
19,459 |
26,910 |
|
| Repairs
and maintenance |
|
|
18,722 |
36,855 |
|
| Depreciation |
|
13.3 |
641,927 |
729,631 |
|
| Amortisation
of leased assets |
|
14.1 |
103 |
455 |
|
| Other
expenses |
|
44,608 |
32,866 |
|
|
------------ |
------------ |
|
|
2,413,715 |
2,073,672 |
|
| Work
in process |
|
|
|
| Opening
inventory |
|
48,560 |
54,099 |
|
| Closing
inventory |
|
(89,229) |
(48,560) |
|
|
------------ |
------------ |
|
|
(40,669) |
5,539 |
|
|
------------ |
------------ |
|
| Cost
of goods manufactured |
|
2,373,046 |
2,079,211 |
|
| Finished
goods |
|
|
|
| Opening inventory |
, |
|
19,954 |
34,356 |
|
| Closing
inventory |
|
(45,354) |
(19,954) |
|
|
------------ |
------------ |
|
|
(25,400) |
14,402 |
|
|
------------ |
------------ |
|
| Cost
of goods sold |
|
2,347,646 |
2,093,613 |
|
|
========== |
========== |
|
|
|
|
| 25.1
Raw materials |
|
| Opening
inventory |
|
4,998 |
4,721 |
|
| Purchases |
|
96,156 |
77,273 |
|
| Closing
inventory |
|
(6,696) |
(4,998) |
|
|
------------ |
------------ |
|
| Raw
material consumed |
|
94,458 |
76,996 |
|
|
========== |
========== |
|
|
| 26.
Selling, Administrative and General Expenses |
|
| Selling
and distribution expenses |
|
| Salaries
and amenities |
|
6,100 |
6,035 |
|
| Travelling |
|
155 |
249 |
|
| Motor
vehicle running |
|
805 |
733 |
|
| Postage,
telephone and fax |
|
653 |
765 |
|
| Printing
and stationery |
|
115 |
160 |
|
| Entertainment |
|
88 |
68 |
|
| Repairs
and maintenance |
|
54 |
180 |
|
| Advertisement
and sampling |
|
592 |
1,519 |
|
| Rent,
rates and taxes |
|
20 |
9 |
|
| Other
expenses |
|
779 |
1,139 |
|
|
------------ |
------------ |
|
|
9,361 |
10,857 |
|
| Administrative
and general expenses |
|
| Salaries
and amenities |
|
16,758 |
17,149 |
|
| Travelling |
|
546 |
385 |
|
| Motor
vehicle running |
|
2,590 |
2,225 |
|
| Postage,
telephone and fax |
|
2,072 |
2,942 |
|
| Printing
and stationery |
|
1,722 |
920 |
|
| Entertainment |
|
394 |
311 |
|
| Repairs
and maintenance |
|
|
257 |
247 |
|
| Legal
and professional charges |
|
26.1 |
2,861 |
1,730 |
|
| Depreciation |
|
13.3 |
2,256 |
2,246 |
|
| Amortisation
of deferred costs |
|
17.2 |
22,851 |
6,915 |
|
| Rent,
rates and taxes |
|
600 |
216 |
|
| Other
expenses |
|
9,964 |
7,601 |
|
|
------------ |
------------ |
|
|
62,871 |
42,887 |
|
|
------------ |
------------ |
|
|
72,232 |
53,744 |
|
|
========== |
========== |
|
|
|
|
| 26.1
Legal and professional charges include the following |
|
| Statutory
audit |
|
200 |
200 |
|
| Consultancy
- MIS |
|
150 |
-- |
|
| Miscellaneous
certification fee |
|
-- |
20 |
|
| Out
of pocket expenses |
|
35 |
40 |
|
|
------------ |
------------ |
|
|
385 |
260 |
|
|
========== |
========== |
|
|
|
|
| 26.2
Legal and professional charges includes Rs. 35,000 (1999: Rs. 35,000) for
cost audit fee. |
|
|
| 27.
Other Income |
|
| Profit
on bank deposits |
|
10,253 |
20,906 |
|
| Sale of scrap |
|
1,283 |
627 |
|
| Profit
on sale of fixed assets |
|
619 |
279 |
|
| Profit
on sale of investment |
|
-- |
2,664 |
|
| Provision
for diminution in investments |
|
1,263 |
(598) |
|
| Miscellaneous |
|
4,333 |
11,761 |
|
|
------------ |
------------ |
|
|
17,751 |
35,639 |
|
|
========== |
========== |
|
|
|
|
|
| 28.
Financial Charges |
|
|
|
| Mark
up/interest on: |
|
|
|
| Long
term loans |
|
437,639 |
470,236 |
|
| Liabilities
under finance lease |
|
56 |
651 |
|
| Short
term running finance |
|
27,515 |
28,764 |
|
| Bank
guarantee commission |
|
570 |
2,033 |
|
| Bank charges |
|
1,417 |
985 |
|
|
------------ |
------------ |
|
|
467,197 |
502,669 |
|
|
========== |
========== |
|
|
|
|
| 29.
Other Charges |
|
|
|
| Donations |
|
29.1 |
13 |
44 |
|
|
------------ |
------------ |
|
|
13 |
44 |
|
|
========== |
========== |
|
|
|
|
| 29.1
Directors have no interest in any of the donees. |
|
|
| 30.
Provision For Taxation |
|
| Current year |
|
15,128 |
11,081 |
|
| Prior year |
|
(32,601 ) |
76 |
|
| Deferred |
|
(54,371 ) |
-- |
|
|
------------ |
------------ |
|
|
(71,844) |
11,157 |
|
|
========== |
========== |
|
| The
company has made provision of minimum tax U/S 80-D of Income Tax Ordinance,
1979 for the current |
|
| year. |
|
|
| Income
tax assessments of the company have been finalised upto the financial year
ended June 30, 1998 |
|
| (assessment
year 1998-99). Losses assessed by income tax department upto assessment year |
|
| 1998-99
amount to Rs. 2.174 billion. |
|
|
| 31.
Remuneration to the Chief Executive, Director and Executives |
|
|
| The
aggregate amount charged in the accounts for the year for remuneration,
including certain benefits |
|
| to
the chief executive, working director and other executives of the company is
as follows: |
|
|
|
|
Chief Executive |
|
Director |
|
Executive |
|
|
|
2000 |
1999 |
2000 |
1999 |
2000 |
1999 |
|
|
----------------------------------------(Rupees
in thousand)------------------------------------------ |
|
| Managerial
remuneration |
1,009 |
2,133 |
729 |
-- |
16,680 |
14,647 |
|
|
| Contribution
to provident |
|
| fund trust |
|
55 |
156 |
57 |
-- |
1,206 |
1,008 |
|
|
| Perquisites
and benefits: |
|
| House rent |
|
276 |
780 |
258 |
-- |
5,608 |
4,252 |
|
| Medical |
|
10 |
13 |
37 |
-- |
848 |
1,271 |
|
| Conveyance/petrol |
35 |
88 |
134 |
-- |
2,859 |
1,861 |
|
| Leave
passage |
-- |
138 |
41 |
-- |
1,152 |
1,262 |
|
| Utilities |
|
79 |
151 |
57 |
-- |
1,221 |
871 |
|
|
------------- |
------------- |
------------- |
------------- |
------------- |
------------- |
|
|
1,464 |
3,459 |
1,313 |
-- |
29,574 |
25,172 |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
| Number
of persons |
1 |
1 |
1 |
-- |
60 |
59 |
|
|
| Mr.
Mohammad Hanif, Chief Executive resigned in November 1999 and his
remuneration and benefits |
|
| as
stated above are for only four months. Mr. Tariq Sayeed Saigol as Chief
Executive does not withdraw |
|
| any
remuneration and benefits from the company. |
|
|
| 32.
Financial Instruments and Related Disclosure |
|
| 32.1
Credit risk |
|
| The
company believes that it is not exposed to major concentration of credit
risk. To manage |
|
| exposure
to credit risk, the company applies credit limits and monitors debt on
continuous basis. |
|
|
| 32.2
Foreign exchange risk management |
|
| Foreign
currency risk arises mainly where payables exist due to transactions with
foreign under |
|
| takings.
The company has partial cover against the payables in foreign currency as
stated in |
|
| Note-5. |
|
|
| 32.3
Fair value of assets |
|
| The
carrying value of financial assets and liabilities reflected in the financial
statements approximates. |
|
| their
fair value except for long term investments, which are stated at cost
(Note-16). |
|
|
| 32.4
Interest / mark- up rate risk exposure |
|
| The
company is exposed to interest / mark up rate risk on some of the financial
obligations. The |
|
| rates
of interest / markup and their maturities are given in the respective notes. |
|
|
|
2000 |
1999 |
|
| 33.
Basic Earning Per Share |
|
| Net
Profit/(loss) after tax (Rupees in thousand) |
|
1,618 |
(590,133) |
|
| Average
number of ordinary shares in issue during |
|
| June
30, 2000:130,229,324 (1999: 130,229,324) |
|
| Earning
per share (Rs.) |
|
0.01 |
(4.50) |
|
|
|
2000 |
1999 |
|
|
(Rupees in
thousand) |
|
| 34.
Transactions with Associated Companies |
|
| These
comprise: |
|
| Purchase
of goods and services |
|
401,150 |
339,277 |
|
| Sale
of goods and services |
|
3,918 |
5,143 |
|
| Purchase
of fixed assets |
|
1,250 |
645 |
|
| Others-duty
draw back |
|
35,174 |
-- |
|
|
| 35.
Capacity and Production |
|
| |
|
Capacity |
Actual
Production |
|
| Clinker |
|
2000 |
1999 |
2000 |
1999 |
|
| Grey - U. Ton |
|
1,470,000 |
1,470,000 |
993,634 |
849,777 |
|
| White
- M. Ton |
30,000 |
30,000 |
37,720 |
34,470 |
|
|
| Shortfall
in production was mainly due to market constraints. |
|
|
| 36.
Corresponding Figures |
|
| Previous
year's figures have been rearranged, where necessary, to facilitate the
comparison. |
|
|
|
Chief Executive |
|
Director |
|
|
|
|
|
|
|
|
|
|
|
