| Moonlite (Pak) 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 |
|
| AUDITORS'
REPORT |
|
| BALANCE
SHEET |
|
| PROFIT
& LOSS ACCOUNT |
|
| CASH
FLOW STATEMENT |
|
| NOTES
TO THE ACCOUNTS |
|
| PATTERN
OF SHARE HOLDING |
|
|
|
| COMPANY
INFORMATION |
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|
| BOARD
OF DIRECTORS |
MR. TAR. H. ISMAIL |
(Chairman & Chief
Executive) |
|
|
|
MR. ABDUL AZIZ T. ISMAIL |
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|
MR. ASHRAF T. ISMAIL |
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|
MR. M. SOHAIL UMER |
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|
MR. SHAHID UMER |
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|
MRS. NASREEN ASHRAF |
|
|
|
MS. AALIYA K. DOSSA |
(N.I.T. Nominee) |
|
|
| AUDITORS |
|
RAHIM IQBAL RAFIQ &
CO. |
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|
Chartered Accountants |
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| BANKERS |
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MUSLIM COMMERCIAL BANK
LIMITED |
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ASKARI COMMERCIAL BANK
LIMITED |
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BANK AL-HABIB LIMITED |
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|
UNITED BANK LIMITED |
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| REGISTERED |
|
F-120, Hub River Road, |
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| OFFICE
& MILLS |
S.I.T.E., Karachi - 75730 |
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| NOTICE
OF MEETING |
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| Notice
is hereby given that the 30th Annual General Meeting of the shareholders of
Moonlite |
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| (Pak)
Limited will be held at Registered Office of the Company F-120, Hub River
Road, S.I.T.E., |
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| Karachi
- 75730 on Saturday December 30, 2000 at 12:00 Noon to transact the following
business:- |
|
|
| 1.
To confirm the minutes of 29th Annual General Meeting held on December 22,
1999. |
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|
|
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| 2.
To receive and adopt the directors' report and audited accounts of the
company for the |
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| year
ended June 30, 2000. |
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| 3.
To appoint Auditors and fix their remuneration. |
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| 4.
To transact any other business with the permission of the Chairman. |
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By order of the Board |
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| Karachi |
|
TAR H. ISMAIL |
|
| 7th
December, 2000 |
|
CHAIRMAN & CHIEF EXECUTIVE |
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|
| Notes: |
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|
| 1.
The Share Transfer Books of the Company will be closed from December 30, 2000
to |
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| January
10, 2001 (Both days inclusive). |
|
|
| 2.
A member of the company entitled to attend and vote at meeting may appoint a
proxy |
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| and
vote for him/her. A Proxy must be a member of the company and in order to be
effective |
|
| must
be received by the company not less than 48 hours before the time of holding
the |
|
| meeting. |
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|
|
|
| DIRECTORS'
REPORT |
|
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| On
behalf of the Board of Directors I Welcome you to the 30th Annual General
Meeting of the Company and take opportunity to present |
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| the
Annual Report together with the audited accounts for the year ended June 30,
2000. |
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|
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|
2000 |
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|
Rupees |
|
| 1.
FINANCIAL HIGHLIGHTS |
|
|
|
| Loss
Before Tax & Extraordinary Items |
|
|
8,455,911 |
|
|
|
|
|
|
|
|
| Deduct
: Gain on loan restructing |
|
|
|
4,535,348 |
|
| Loss due to fire |
|
|
(358,873) |
|
|
|
|
------------------ |
|
|
|
|
4,176,475 |
|
|
|
|
------------------ |
|
|
|
|
42,794.36 |
|
| Add : Taxation |
|
|
|
1,149,493 |
|
|
|
|
------------------ |
|
| Loss
After Taxation |
|
|
5,428,929 |
|
|
|
|
========== |
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|
|
|
| 2.
OPERATING RESULTS |
|
|
| 2.1
Depressed conditions remain unabated during the year and sales revenue could
not pickup. Third party revenue source |
|
| remained
a cause of concern as well as which hitherto supplemented operational
continuity but at the same time invited |
|
| obvious
competitive disadvantage. We evolved accordingly a strategy to avoid third
party services whereby hopefully |
|
| will
improve G.P. with the passage of time. |
|
|
| 2.2
Inconsistent Government Tariff policies for the last two years significantly
retarded the manufacturing operations con- |
|
| sequently
accumulated losses touching to Rs. 13 million. Our representation did
materialise whereby policy to collect |
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| more
duties on raw materials and reduced levy on finish products now stands
corrected but after long two years, Now |
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| we
have level playing field and as a devoted manufacturer continue to deliver
the quality goods to consumers particularly |
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| as
indirect exporter of woollen carpets. |
|
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| 2.3
MCB continues to assisting us and playing pivotal role in growth of the
company over the last 30 years. During the |
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| year
credit facilities are restructed and negotiations are on to ensure viability
and survival of this prestigious |
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| manufacturing
capacity. Breathing time period for repayment of credit facilities and
restructing of markup charge will |
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| have
definite bearing on capability of the company to use the manufacturing
facilities smoothly. |
|
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| 2.4
The trade receivables are good and shall not be impaired/bad though recovery
from some of the receivables is low and |
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| hopefully
overdues from debtors shall be recovered by end of the year June 2001. |
|
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| 2.5
In the context of PICIC dues the company moved a request for restructuring of
the same by way of monthly installments |
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| commencing
January 2001. Hopefully PICIC will approve the arrangement whereby markup
stand freezed from July |
|
| 2000
and 24 monthly installments shall be paid during 2001 and 2002. |
|
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| 2.6
During May 2000 fire occurred in factory for which insurance claim has been
received in full satisfaction of the company. |
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| Production
facilities did not suffer due to fire however later such facilities stand
synchronised. |
|
|
| 2.7
Earning per share at the year end computes in negative Rs. 2.51 (1999
negative Rs. 1.97) |
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|
|
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| 2.8
Pattern of Shareholding in annexed to the report. |
|
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| 3.
FUTURE OUTLOOK |
|
|
| 3.1
In view of the negotiation with PICIC and MCB and correct direction of the
Government Policy concerning our manufacturing |
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| of
products, we can confidently put the company on fast track provided things as
contemplated move accordingly whereby |
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| viability
and very survival of the manufacturing facilities can be ensured. |
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|
|
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| 4. AUDITORS |
|
|
|
| M/s
Rahim Iqbal Rafiq & Company, Chartered Accountants retire and offer
themselves for reappointment as auditors for the |
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| ensuring year. |
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|
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| 5.
ACKNOWLEDGEMENT |
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|
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| Under
the highly depressed and recessionary conditions we appreciated the
commitment of our workforce at all levels. The |
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| response
of our esteemed client and dealers never let us down despite sluggish market
conditions. We have been always louding |
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| the
contribution and co-operation extended from time to time by MCB and PICIC in
our growth over the years and hopefully |
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| continue
their conventional role as such in future. |
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|
On behalf of Board of Directors |
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| Karachi: |
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|
TAR H. ISMAIL |
|
| 7th
December, 2000 |
|
CHAIRMAN & CHIEF EXECUTIVE |
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of MOONLITE (PAK)
LIMITED as at June 30, 2000 |
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| and
the related profit & loss account, cash flow statement of changes in
equity together with the |
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| notes
forming part thereof, for the year then ended and we state that we have
obtained all the information |
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| and
explanations which, to the best of our knowledge and belief, were necessary
for the purposes |
|
| of our audit. |
|
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| 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
standard and the requirements of the Companies Ordinance, 1984. Our
responsibility |
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| is
to express an opinion on these statements based on our audit. |
|
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| We
conducted our audit in accordance with the auditing standards as applicable
in Pakistan. These |
|
| standards
require that we plan and perform the audit to obtain reasonable assurance
about whether |
|
| the
above said statements are free of any material misstatement. An audit
includes examining, on |
|
| a
test basis, evidence supporting the amounts and disclosures in the above said
statements. An audit |
|
| also
includes assessing the accounting policies and significant estimates made by
management, as |
|
| well
as, evaluating the overall presentation of the above said statements. We
believe that our audit |
|
| provides
a reasonable basis for our opinion and, after due verification, we report
that- |
|
|
| (c)
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 |
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| been
drawn up in conformity with the Companies Ordinance, 1984, and are in |
|
| agreement
with the books of account and are further in accordance with accounting |
|
| policies
consistently applied; |
|
|
| (ii)
the expenditure incurred during the year was for the purpose of the company's
business; and |
|
|
| (iii)
the business conducted, investment 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 & 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 Companies |
|
| Ordinance,
1984, in the manner so required and respectively give a true and fair view |
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| of
the state of the company's affairs as at 30th June 2000, and of the Loss, its
cash flows |
|
| and
changes in equity for the year then ended; and |
|
|
|
| (d)
in our opinion, "No Zakat was deductible at source under the Zakat and
Ushr Ordinance, |
|
| 1980". |
|
|
|
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| Karachi: |
|
|
RAHIM IQBAL RAFIQ & CO. |
|
| 7th
December, 2000 |
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
Note |
Rupees |
Rupees |
|
|
| SHARE
CAPITAL AND RESERVES |
|
|
| Authorised
Capital |
|
| 4,000,000
Ordinary Shares of Rs.10/- each |
|
40,000,000 |
40,000,000 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| Issued,
subscribed and paid-up capital |
3 |
21,595,860 |
21,595,860 |
|
| Reserves |
|
|
4 |
399,305 |
399,305 |
|
| Accumulated
loss |
|
|
(13,160,412) |
(7,731,483) |
|
|
------------------ |
------------------ |
|
|
|
|
8,834,753 |
14,263,682 |
|
| LONG
TERM LOANS |
|
5 |
4,051,492 |
7,118,799 |
|
|
|
| LIABILITIES
AGAINST ASSETS |
|
| SUBJECT
TO FINANCE LEASE |
|
6 |
10,358,516 |
9,799,393 |
|
|
|
|
| DEFERRED
TAXATION |
|
|
1,800,000 |
1,800,000 |
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
| Short
term finances |
|
7 |
220,408,928 |
134,983,429 |
|
| Current
portion of long term liabilities |
8 |
14,161,610 |
19,149,749 |
|
| Creditors,
accrued and other liabilities |
9 |
29,878,908 |
138,958,926 |
|
| Taxation |
|
|
1,149,991 |
1,205,546 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
265,599,437 |
294,297,650 |
|
| CONTINGENCY
AND COMMITMENTS |
10 |
|
|
------------------ |
------------------ |
|
|
|
|
290,644,198 |
327,279,524 |
|
|
========== |
========== |
|
|
|
|
| FIXED
CAPITAL EXPENDITURE |
|
|
| Operating
assets |
|
11 |
60,461,125 |
67,587,459 |
|
| Capital
work-in-progress |
|
12 |
-- |
5,900,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
60,461,125 |
73,487,459 |
|
|
|
|
|
|
| LONG
TERM INVESTMENTS |
|
13 |
25,000 |
25,000 |
|
| LONG
TERM DEPOSITS |
|
14 |
2,149,218 |
3,019,208 |
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Stores,
spares and loose tools |
|
15 |
5,208,539 |
5,346,667 |
|
| Stock in trade |
|
16 |
128,960,716 |
152,709,405 |
|
| Trade debts |
|
17 |
66,179,480 |
77,027,155 |
|
| Loans,
advances, deposits, |
|
|
|
| prepayments
and other receivables |
18 |
26,389,562 |
15,257,351 |
|
| Cash
and bank balances |
|
19 |
1,270,558 |
407,279 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
228,008,855 |
250,747,857 |
|
|
|
|
------------------ |
------------------ |
|
|
290,644,198 |
327,279,524 |
|
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these financial statements. |
|
|
| Karachi: |
|
| 7th
December, 2000 |
|
|
|
TAR H. ISMAIL |
|
M. SOHAIL UMER |
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
| PROFIT
AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
|
Note |
Rupees |
Rupees |
|
|
|
|
|
| Sales |
|
20 |
228,270,917 |
216,551,428 |
|
| Cost
of goods sold |
|
21 |
(194,625,929) |
(178,861,237) |
|
|
|
|
------------------ |
------------------ |
|
| Gross profit |
|
|
|
37,690,191 |
33,644,988 |
|
| Processing
receipts |
|
22 |
754,447 |
12,077,647 |
|
|
|
|
------------------ |
------------------ |
|
|
|
38,444,638 |
45,722,635 |
|
| Operating
Expenses |
|
| Administration
and general |
|
23 |
7,125,340 |
7,775,516 |
|
| Selling
and distribution |
|
24 |
5,018,309 |
5,282,820 |
|
| Financial |
|
|
25 |
35,758,717 |
35,903,933 |
|
|
|
------------------ |
------------------ |
|
|
|
(47,902,366) |
(48,962,269) |
|
|
------------------ |
------------------ |
|
| Operating loss |
|
|
(9,457,728) |
(3,239,634) |
|
| Other income |
|
|
1,001,817 |
266,609 |
|
|
|
------------------ |
------------------ |
|
| Net
loss before taxation and extra ordinary items |
|
(8,455,911) |
(2,973,025) |
|
|
| Extra
Ordinary Items |
|
| Gain
on loan restructuring |
|
7.1 |
4,535,348 |
-- |
|
| Loss due to fire |
|
1.2 |
(358,873) |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
4,176,475 |
-- |
|
|
------------------ |
------------------ |
|
| Net
loss after extra ordinary items |
|
|
(4,279,436) |
(2,973 025) |
|
|
| Taxation |
|
|
| Current |
|
|
1,149,991 |
1,205,546 |
|
| Prior years' |
|
(498) |
85,724 |
|
|
------------------ |
------------------ |
|
|
|
|
(1,149,493) |
(1,291,270) |
|
|
|
|
------------------ |
------------------ |
|
| Loss
after taxation |
|
|
(5,428,929) |
(4,264,295) |
|
| Unappropriated
loss brought forward |
|
(7,731,483) |
(3,467,188) |
|
|
|
|
|
------------------ |
------------------ |
|
| Accumulated
loss carried forward |
|
(13,160,412) |
(7,731,483) |
|
|
|
|
|
========== |
========== |
|
| Earning
per share |
|
33 |
(2.51) |
(1.97) |
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these financial statements. |
|
|
|
TAR H. ISMAIL |
|
M. SOHAIL UMER |
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
|
| (CASH
FLOW STATEMENT) FOR THE YEAR ENDED JUNE 30, 2000 |
|
|
|
|
|
2000 |
1999 |
|
|
|
Note |
Rupees |
Rupees |
|
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| Loss
before taxation |
|
(4,279,436) |
(2,973,025) |
|
|
|
|
| Adjustment for: |
|
| Depreciation |
|
|
7,024,920 |
7,886,182 |
|
| Gain
on disposal of fixed assets |
|
|
(1,001,817) |
(266,609) |
|
| Financial
charges |
|
|
35,758,717 |
35,903,933 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
37,502,384 |
40,550,481 |
|
| (Increase)/Decrease
in working capital |
29 |
13,712,147 |
5,570,576 |
|
|
------------------ |
------------------ |
|
| Cash
generated from operation |
|
51,214,531 |
46,121,057 |
|
| Financial
charges paid |
|
(20,945,660) |
(17,389,217) |
|
| Taxes paid |
|
|
(1,291,827) |
(1,287,963) |
|
| Gratuity paid |
|
|
-- |
(9,544,383) |
|
|
|
------------------ |
------------------ |
|
| Net
cash from operating activities before extra ordinary items |
28,977,044 |
17,899,494 |
|
|
| Extra
ordinary items: |
|
| Adjustment for: |
|
|
| Gain
on loan restructuring |
|
|
(4,535,348) |
-- |
|
| Loss due to fire |
|
358,873 |
-- |
|
|
| Changes
in working capital |
|
| Proceeds
against stock destroyed by fire |
|
5,652,172 |
-- |
|
| Loans,
advances, deposits, prepayments and |
|
|
| other
receivables |
|
(13,176,000) |
-- |
|
| Creditors,
accrued and other liabilities |
|
847,826 |
-- |
|
|
|
------------------ |
------------------ |
|
| Net
cash from operating activities |
|
18,124,567 |
17,899,494 |
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
| Fixed
capital expenditure |
|
(1,936,146) |
(12,289,759) |
|
| Proceeds
from disposal of fixed assets |
|
3,043,000 |
1,772,158 |
|
|
|
------------------ |
------------------ |
|
| Net
cash from/(used in) investing activities |
|
|
|
| before
extra ordinary item |
|
1,106,854 |
(10,517,601) |
|
| Proceed
against assets destroyed due to fire |
|
6,935,396 |
-- |
|
|
|
------------------ |
------------------ |
|
| Net
cash from/(used in) investing activities |
|
8,042,250 |
(10,517,601) |
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
|
| Repayment
of long term loans |
|
(4,300,664) |
(3,963,000) |
|
| Payment
of lease liabilities |
|
|
(5,435,689) |
(3,703,938) |
|
| long
term deposits (net) |
|
|
869,990 |
60,710 |
|
| Dividend paid |
|
|
|
(123) |
(227) |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash used in financing activities |
|
(8,866,486) |
(7,606,455) |
|
|
|
|
------------------ |
------------------ |
|
| (Decrease)/Increase
in cash and cash equivalents |
|
17,300,331 |
(224,562) |
|
| Cash
and cash equivalents at beginning of the year |
|
(16,029,773) |
(15,805,211) |
|
|
|
|
------------------ |
------------------ |
|
| Cash
and cash equivalents at end of the year |
30 |
1,270,558 |
(16,029,773) |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
TAR H. ISMAIL |
|
M. SOHAIL UMER |
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
|
|
| NOTES
TO THE ACCOUNTS FOR THE YEAR ENDED JUNE 30, 2000 |
|
|
| 1.
STATUS AND ACTIVITIES |
|
|
| 1.1
Moonlite (Pak) Limited was incorporated in Pakistan as a Public Limited,
Company and is quoted |
|
| on
Karachi Stock Exchange. The company is engaged in the manufacturing of
woollen yarn, acrylic |
|
| blankets,
synthetic tufted carpets and allied cotton synthetic products. |
|
|
| 1.2
Towards the end of the year, a fire broke out in the fibre spinning portion
of the factory destroying |
|
| machinery
and stock valued at Rs 16 Million including 3.6 Million accumulated
depreciation. The |
|
| loss
was claimed from the insurance and the amount of claim has been subsequently
received. |
|
| The
company's main plant and machinery have remained intact and continue to be in
usual operation. |
|
| The
management do not forsee any impact on its activities owing to the forsing
event. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
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|
|
|
| 2.1
Accounting convention |
|
|
| These
financial statements have been prepared under the historical cost convention. |
|
|
| 2.2
Foreign currencies |
|
|
|
| Transactions
in foreign currencies are converted into rupees at the rates of exchange in
effect |
|
| at
the date of transactions. Assets and liabilities in foreign currencies not
covered by forward |
|
| exchange
risk cover are translated into Pak. rupees at the exchange rates prevailing
at the balance |
|
| sheet
date except those covered by forward exchange risk cover are converted at
contracted rates. |
|
| Exchange
differences are charged to income. |
|
|
|
|
|
| 2.3
Staff retirement benefit |
|
|
|
| The
Company operated an unfunded gratuity scheme upto March 31, 1997 Provision |
|
| was
made to cover the obligation under the scheme upto that date. From April 1,
1997 company |
|
| operates
an approved contributory provident fund scheme for all eligible employees.
The |
|
| scheme
is administered by Trustees nominated under the relevant Trust Deed. |
|
|
| 2.4
Borrowing costs |
|
|
|
| Borrowing
costs are recognised as an expense in the year in which they are incurred,
except those |
|
| that
are directly attributable to the acquisition of fixed assets. |
|
|
|
|
| The
capitalization of borrowing costs as part of fixed assets commences when
expenditure for |
|
| the
assets are being incurred; borrowing costs are being incurred and activities
that are necessary |
|
| to
prepare assets for their intended use are in progress. Capitalisation of
borrowing costs ceases |
|
| when
substantially all the activities necessary to prepare the assets for their
intended use are complete. |
|
|
| 2.5 Taxation |
|
|
|
| Current |
|
|
|
| The
charge for current taxation is based on taxable income at the current rate of
taxation |
|
| after
taking into account tax credits and tax rebates available, if any, or on the
basis of 0.5% of |
|
| turnover,
whichever is higher. |
|
|
|
|
|
|
| Deferred |
|
|
|
| The
company accounts for deferred taxation using the liability method on all
major timing |
|
| differences.
However, deferred tax is not provided if it is determined with reasonable
probability |
|
| that
these timing differences will not reverse in the foreseeable future. The
deferred tax debits |
|
| are
not incorporated in the financial statements. |
|
|
| 2.6
Fixed capital expenditure |
|
|
|
|
|
|
|
| Operating
assets |
|
|
|
| These
are stated at cost less accumulated depreciation except lease hold land which
is stated at cost. |
|
|
|
|
| Depreciation
is charged to income applying the reducing balance method at the rates
specified |
|
| in
operating assets note. |
|
|
|
|
| Maintenance
and normal repairs are charged to income as and when incurred. Major renewals
and |
|
