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Mukhtar Textile Mills Limited
Annual Report 2000
CONTENTS
COMPANY'S PROFILE
NOTICE OF ANNUAL GENERAL MEETING
DIRECTORS' REPORT TO THE MEMBERS
AUDITOR'S REPORT TO THE MEMBERS
BALANCE SHEET
PROFIT & LOSS ACCOUNT
STATEMENT OF CHANGES IN EQUITY
CASH FLOW STATEMENT
NOTES TO THE ACCOUNTS
PATTERN OF SHARE HOLDING
FORM OF PROXY
COMPANY'S PROFILE
CHIEF EXECUTIVE
Rana Muhammad Saleem
DIRECTORS
Shamim Ahmad Khan
Mrs. Shaista Saleem
Muhammad Nasrullah
Khalid Mahmood
Zafar Iqbal
Kaleem Ullah
LEGAL ADVISER
Muhammad Irfan Majeed
(ADVOCATE HIGH COURT)
COMPANY SECRETARY
Rustam Ali Nasir
AUDITORS
M. Ather & Company
Chartered Accountants
BANKERS
Askari Commercial Bank Limited
Habib Bank Limited
Industrial Development Bank of Pakistan
National Development Finance Corporation
REGISTERED OFFICE
P-48, Street # 1,
Douglas Pura, Faisalabad.
SHARE REGISTRAR
Orient Software & Management Services,
421-Jinnah Colony,
National Hospital Road, Faisalabad.
MILLS
40-K.M. Jhang Faisalabad Road,
Nia Lahore, Distt. T.T. Singh.
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the 9th Annual General Meeting of MUKHTAR TEXTILE MILLS LIMITED will be held
at the registered office of the Company situated at P-48, Street No. 1, Douglaspura, Faisalabad. on Saturday
March 31, 2001 at 9:00 a.m. to transact the following business:-
1. To confirm the minutes of the 8th Annual General meeting held on March 31, 2000.
2. To receive, consider and adopt the Annual Accounts for the year ended September 30, 2000 together
with the Auditors' and Directors' report thereon.
3. To appoint auditors for the year 2000-2001 and fix their remuneration. The retiring auditors,
M/S M. ATHER & COMPANY, Chartered Accountants, being eligible, have offered themselves for re-
appointment.
4. To transact any other business with permission of the chair.
By order of the
Board of Directors
Faisalabad (RANA MUHAMMAD SALEEM)
March 09, 2001 Chief Executive
Notes:-
i) The share Transfer books of the company shall remain closed from March 25, 2001 to March 31, 2001
(both days inclusive)
ii) A member entitled to attend, speak and vote at this meeting may appoint another member on his/her
proxy to attend, speak and vote on his/her behalf. Proxies in order to be effective must be received by the
company at the registered office not less than 48 hours before the meeting.
iii) The shareholders are requested to notify change of address, if any.
DIRECTORS' REPORT TO MEMBERS
Dear Members,
At this occasion of the 9th Annual General Meeting of the company, the directors are pleased to present the
Auditors' and Annual Report for the year ended 30th September 2000.
GENERAL
By the continuous efforts of the management the company succeeded in improving its production and turnover
during the year under review, which in turn improved the Gross Profit. But the improvement in gross profit has
been restricted by the unexpected increase in the production overheads. The company could not reap the fruit of
decrease in the rates of cotton to the expected extent because of working capital constraint. The management is
striving hard and negotiating the working capital limits with the Banks/Financial Institutions to overcome this
problem.
FINANCIAL RESULTS
The financial results are as under:
2000 1999
Rupees Rupees
(Million) (Million)
Net Sales 182.326 155.757
Gross Profit 5.105 3.880
Operating Expenses 4.615 3.707
Other Income 0.032 0.047
Financial Charges 6.549 7.520
Net Loss for the Year (6,938) (7,917)
FUTURE PROSPECTS
We have concentrated on the improvement in plant & machinery and the quality of the products. The company
intended to produce the warp to fetch the rate differences by improving the quality. This will increase the
profitability of the company in the coming years. We positively hope that the negotiations with the banks/financial
institutions will be finalized in the near future and the sufficient working capital will be made available, which will
further increase the production and turnover during the ensuing year.
AUDITORS
The retiring auditors M/s M. Ather & Co Chartered Accountants being eligible offer themselves for re-
appointment.
ACKNOWLEDGMENT
The directors do appreciate the devoted efforts made by all concerned, contributing towards improvements in the
company's business.
LABOUR MANAGEMENT RELATIONS.
The labour management relation remained cordial.
PATTERN OF SHAREHOLDING
Pattern of Shareholding is attached
On behalf of the Board
Dated: 3rd March, 2000 Rana Muhammad Saleem
Place: Faisalabad. Chief Executive
AUDITORS' REPORT TO THE MEMBERS
We have audited the annexed balance sheet of MUKHTAR TEXTILE MILLS LIMITED as at September 30, 2000
and the related profit and loss account, cash flow statement and statement of changes in equity together with the
notes forming part thereof, for the year then ended and we state that we have obtained all the information and
explanations which, to the best of our knowledge and belief, were necessary for the purpose of our audit.
It is the responsibility of the company's management to establish and maintain a system of internal control, and
prepare and present the above said statements in conformity with the approved accounting standards and the
requirements of the Companies Ordinance, 1984. Our responsibility is to express an opinion on these statements
based on our audit.
We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These standards
require that we plan and perform the audit to obtain reasonable assurance about whether the above said
statements are free of any material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the above said statements. An audit also includes assessing the
accounting policies and significant estimates made by management, as well as, evaluating the overall
presentation of the above said statements. We believe that our audit provides a reasonable basis for our opinion
and, after due verification, we report that-
a) In our opinion, proper books of accounts have been kept by the company as required by the Companies
Ordinance, 1984;
b) In our opinion-
(i) the balance sheet and profit and loss account together with the notes thereon have been
drawn up in conformity with the Companies Ordinance, 1984, and are in agreement with
the books of account and are further in accordance with accounting policies consistently
(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 September 30, 2000 and of
the loss, its cash flows and changes in equity for the year then ended; and
(d) in our opinion no Zakat was deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980).
Date: March 3, 2001. M. ATHER & CO.
Place: FAISALABAD. Chartered Accountants
BALANCE SHEET AS AT SEPTEMBER 30, 2000
2000 1999
Notes Rupees Rupees
CAPITAL AND RESERVES
Authorised capital
15,000,000 ordinary shares
of Rs. 10/- each 150,000,000 150,000,000
========== ==========
Issued, subscribed and paid up capital
10,000,000 Ordinary shares of Rs. 10/- Each 100,000,000 100,000,000
Accumulated Profit/(Loss) (72,701,121) (65,840,820)
------------------ ------------------
27,298,879 34,159,180
LONG TERM LIABILITIES
Long term loan 3 16,153,850 19,166,667
Liabilities against assets subject
to finance lease 4 92,823 615,341
DEFERRED LIABILITIES
Deferred financial charges 5 7,210,489 8,596,489
Staff retirement gratuity 6 768,967 --
CURRENT LIABILITIES
Current portion of long term
Liabilities 7 7,029,692 4,284,069
Short term finances 8 8,499,870 10,936,118
Creditors, accrued and
Other liabilities 9 71,845,882 44,566,216
Taxation. 10 1,302,580 616,034
------------------ ------------------
88,678,024 60,402,437
CONTINGENCIES AND COMMITMENTS 11
------------------ ------------------
140,203,032 122,940,114
========== ==========
The annexed notes from 1 to 29 form an integral part of these accounts.
Place: Faisalabad. RANA MUHAMMAD SALEEM
Dated: March 03, 2001. CHIEF EXECUTIVE
FIXED CAPITAL EXPENDITURE
Operating fixed assets 12 94,900,028 103,917,790
Capital work in progress 13 6,193,807 5,676,439
LONG TERM DEPOSITS & DEFERRED COSTS 14 969,009 1,093,188
CURRENT ASSETS
Stores and spares 15 926,138 438,391
Stock in trade 16 4,823,952 2,316,093
Trade debts-considered good 20,922,276 4,565,312
Advances, deposits, prepayments
and other receivables 17 11,349,308 4,873,440
Cash and bank balances 18 118,514 59,461
------------------ ------------------
38,140,188 12,252,697
------------------ ------------------
140,203,032 122,940,114
========== ==========
MUHAMMAD NASRULLAH
DIRECTOR
PROFIT AND LOSS ACCOUNT
2000 1999
Notes Rupees Rupees
SALES - Net 19 182,326,375 155,756,742
COST OF SALES 20 177,221,301 151,876,875
------------------ ------------------
GROSS PROFIT/(LOSS) 5,105,074 3,879,867
OPERATING EXPENSES
Administrative 21 4,527,691 3,512,160
Selling 22 87,326 194,910
------------------ ------------------
4,615,017 3,707,070
------------------ ------------------
OPERATING PROFIT/(LOSS) 490,057 172,797
OTHER INCOME 32,158 46,564
------------------ ------------------
522,215 219,361
OTHER CHARGES
Financial 23 6,549,182 7,519,974
------------------ ------------------
NET PROFIT/(LOSS) FOR THE
YEAR BEFORE TAXATION (6,026,967) (7,300,613)
TAXATION 911,632 616,034
------------------ ------------------
NET PROFIT/(LOSS) FOR THE
YEAR AFTER TAXATION (6,938,599) (7,916,647)
------------------ ------------------
PRIOR YEAR ADJUSTMENT 78,298 (1,127,207)
PROFIT/(LOSS) BROUGHT FORWARD (65,840,820) (56,796,966)
------------------ ------------------
(65,762,522) (57,924,173)
ACCUMULATED PROFIT/(LOSS) ------------------ ------------------
CARRIED TO BALANCE SHEET (72,701,121) (65,840,820)
========== ==========
LOSS PER SHARE 24 0.69 0.79
The annexed notes from 1 to 29 form an integral part of these accounts.
Place: Faisalabad RANA MUHAMMAD SALEEM MUHAMMAD NASRULLAH
Dated: March 03, 2001. CHIEF EXECUTIVE DIRECTOR
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED SEPTEMBER 30, 2000
Share Accumulated Total
Capital Loss
Rupees Rupees Rupees
Balance as at 100,000,000 (56,796,966) 43,203,034
October 01, 1998
Loss for the year
ended Sep. 30, 1999 -- (9,043,854) (9,043,854)
Balance as at ------------------ ------------------ ------------------
Sep. 30, 1999 100,000,000 (65,840,820) 34,159,180
Loss for the year
ended Sep. 30, 2000 -- (6,860,301) (6,860,301)
Balance as at ------------------ ------------------ ------------------
Sep. 30, 2000 100,000,000 (72,701,121) 27,298,879
========== ========== ==========
Place: Faisalabad RANA MUHAMMAD SALEEM MUHAMMAD NASRULLAH
Dated: March 03, 2001. CHIEF EXECUTIVE DIRECTOR
CASH FLOW STATEMENT
FOR THE YEAR ENDED SEPTEMBER 30, 2000
2000 1999
Rupees Rupees
a) CASH FLOWS FROM OPERATING ACTIVITIES
Loss before taxation (6,026,967) (7,300,613)
Depreciation 10,463,477 11,327,946
Deferred Cost 879,909 648,424
Provision for gratuity 675,401 --
Financial charges 6,549,182 7,515,119
------------------ ------------------
Operating Profit before / (loss) before
Working Capital changes 12,541,002 12,190,876
Changes in working Capital
(Increase)/decrease in current assets:
Stores and spares (487,747) 8,641
Stock in trade (2,507,859) 5,777,396
Trade debtors (16,356,964) (445,000)
Advances, deposits, prepayments
and other receivables (6,475,868) (1,400,133)
Increase / (decrease) in current liabilities
Creditors, accrued & other liabilities 26,309,384 1,468,553
------------------ ------------------
480,946 5,409,457
Financial charges paid (5,104,802) (15,678,257)
Dividend Paid -- (1,369,476)
Tax paid (225,086) --
Gratuity paid (302,234) --
------------------ ------------------
Cash generated from/(used in) operations 7,389,826 552,600
========== ==========
b) CASH FLOWS FROM INVESTING ACTIVITIES
Operating Fixed Assets (1,445,715) (2,103,945)
Capital work in progress (517,368) (5,676,439)
Long Term Deposits and deferred cost (755,730) (945,569)
------------------ ------------------
(2,718,813) (8,725,953)
c) CASH FLOWS FROM FINANCING ACTIVITIES
Long Term Loans (513,800) 20,000,000
Finance Lease Liabilities (500,912) (194,672)
Deferred Financial Charges (1,161,000) 9,919,489
Short Term Finances (2,436,248) (21,663,882)
------------------ ------------------
(4,611,960) 8,060,935
------------------ ------------------
Net increase/(decrease) in cash and
Bank balances (a+ b+c) 59,053 (112,418)
Cash and bank balances at the beginning of the year 59,461 171,879
------------------ ------------------
Cash and bank balances at the end of the year 118,514 59,461
========== ==========
RANA MUHAMMAD SALEEM MUHAMMAD NASRULLAH
CHIEF EXECUTIVE DIRECTOR
NOTES TO THE ACCOUNTS
1. STATUS AND NATURE OF BUSINESS
The company was incorporated in 1992 as Private Limited Company and was converted into Public
Limited Company 1994. The Shares of the Company are quoted on all Stock Exchanges in Pakistan. It is
principally engaged in the manufacture and sale of yarn.
2. SIGNIFICANT ACCOUNTING POLICIES
2.1 Accounting Convention
These accounts have been prepared under the historical cost convention.
2.2 Staff retirement benefits
The Company operates an unfunded gratuity scheme covering all its employees. Provision is
made annually to cover the liability under the scheme.
2.3 Taxation
Current
Provision for current taxation is based on taxable income at current tax rates after taking into
account rebates and tax credits available, if any.
Deferred
The company accounts for deferred taxation on all material timing differences using the liability
method. However deferred tax to certain extent is not provided if it can be established with
reasonable probability that these timing differences will not reverse in the foreseeable future.
2.4 Fixed assets and depreciation
Owned
Fixed assets except freehold land and capital work in progress are stated at cost less
accumulated depreciation.
Depreciation is charged applying reducing balance method to write off the cost. Rates of the
depreciation are stated in Operating Fixed Assets Note. No depreciation is provided on assets in
the year of disposal whereas full year's depreciation is charged in the year of purchase.
Gains (losses) on disposal of fixed assets are included in current year income. Normal repairs
and replacements are charged to. income as and when incurred. Major renewals and
replacements are capitalised and assets replaced, if any, are kept as stand by.
Leased
These are stated at cost less accumulated depreciation. Depreciation is charged at the same
rates as applicable to the Company owned assets. Outstanding obligations under the lease, less
financial charges allocated to future period are shown as liability. The financial charge is
calculated at the interest rate implicit in the lease and is charged to current income.
2.5 Stores and spares
These are valued at moving average cost. Stores in transit are valued at cost accumulated to the
balance sheet date.
2.6 Stock in trade
Basis of valuation are as follows:
Particulars Mode of valuation
Raw material:
In godowns -At lower of annual average cost and market value.
In transit -At cost accumulated to the balance sheet date.
Work-in-process -At manufacturing cost.
Finished goods -At lower of cost and net realizable value.
Waste -At net realizable value.
-Cost in relation to work in process and finished goods represents annual average
manufacturing cost which consists of prime cost and appropriate production overheads.
-Net realizable value signifies the selling price in the ordinary course of business less cost
necessary to be incurred to effect such sale.
2.7 Deferred Costs
Deferred costs are amortized over a period of not more than five years of deferrment.
2.8 Revenue recognition
Direct sales are recorded when goods are despatched to customers and sales through agents
are recorded on intimation from the agents.
2000 1999
Rupees Rupees
3. LONG TERM LOANS
Opening balance 20,000,000 --
Transferred during the year -- 20,000,000
------------------ ------------------
20,000,000 20,000,000
Paid during the year 513,800 --
------------------ ------------------
19,486,200 20,000,000
Shown under current liabilities
Over due 255,430 --
Payable within one year 3,076,920 833,333
------------------ ------------------
3,332,350 833,333
------------------ ------------------
16,153,850 19,166,667
========== ==========
3.1 This loan has been created by conversion of short term loan by NDFC. According to letter of
approval issued by NDFC, the principal amount outstanding as on 30.09.1999 will be payable in
78 monthly installments starting July 2000.
This is secured against pledge of shares of the company owned by the directors/sponsors and
further secured against equitable mortgage over entire assets of the company ranking pari passu
with the charge created in respect of short term finance. This carries mark-up @ Rs. 0.55 per
thousand per day.
4. LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE
2000 1999
Rupees Rupees
Opening balance 2,743,077 2,937,749
Paid during the year (500,912) (194,672)
------------------ ------------------
2,242,165 2,743,077
Less:  
Shown undercurrent liabilities
Over due 1,626,824 1,248,585
Payable within one year 522,518 879,151
------------------ ------------------
2,149,342 2,127,736
------------------ ------------------
92,823 615,341
========== ==========
Lease Finance assistance has been obtained fro Orix Leasing Pakistan Limited against supply of one Auto
Splicer with Auto Doffer. The value of minimum lease payment has been discounted at an implict interest rate
using IRR method to arrive at the present value. The rentals are payable in monthly installments between June,
1996 to April, 2000. In case of default of any payment an additional charge @ 0.1% per day shall be paid. Taxes,
repairs and insurance costs are to be born by the Company.
The liability is secured against personal guarantees of the directors of the Company. The future minimum lease
rental payments as at 30th September, are as under
Rupees
2,001 2,972,817
------------------
2,972,817
Financial charges allocated to future 730,652
------------------
2,242,165
==========
2000 1999
Rupees Rupees
5. DEFERRED FINANCIAL CHARGES
Opening Balance 9,919,489 --
Transferred during the year -- 9,919,489
------------------ ------------------
9,919,489 9,919,489
Paid during the year (1,161,000) --
------------------ ------------------
8,758,489 9,919,489
Shown under current liability:
Payable within one year (1,548,000) (1,323,000)
------------------ ------------------
7,210,489 8,596,489
========== ==========
5.1 It is repayable in 78 monthly installments of Rs. 129,000 each starting 1st January, 2000 having
same securities as mentioned in Note 3.1.
6. STAFF RETIREMENT GRATUITY
Provision for gratuity 768,967 --
========== ==========
The company has changed its policy for gratuity from cash basis to accrual basis to comply with
the requirements of International Accounting standards. Financial effect of this change is as
under:
Prior year's Rs. 395,800
Current year Rs. 373,167
------------------
768,967
==========
7. CURRENT PORTION OF LONG TERM LIABILITIES
Long term loan (Note 3) 3,332,350 833,333
Liabilities against assets
Subject to financial lease (Note 4) 2,149,342 2,127,736
Deferred financial charges (Note 5) 1,548,000 1,323,000
------------------ ------------------
7,029,692 4,284,069
========== ==========
8. SHORT TERM FINANCES Sanctioned Limit
(Rs. Million)
Habib Bank Limited (8.1) 7.000 5,100,000 6,200,000
Gulf Commercial Bank Ltd. (8.2) 3.700 1,400,000 2,000,000
Askari Commercial Bank Ltd. (8.3) 2.000 1,999,870 1,998,368
Book overdraft -- 737,750
------------------ ------------------
8,499,870 10,936,118
========== ==========
8.1 This carriers markup @ Rs. 0.55 per thousand per day. The loan is secured against equitable
mortgage over entire assets of the company ranking pari passu with the charge created in
respect of long term loan.
8.2 This carries mark-up @ 16% per annum. This is secured against pledge of the stock of raw
material and finished goods. It is further secured against personal properties and personal
guarantees of the directors of the company.
8.3 This carries mark-up @ 17% to 19% per annum. This is secured against hypothecation of current
assets of the company. It is further secured against personal properties and personal guarantees
of the directors of the company.
2000 1999
Rupees Rupees
9. CREDITORS, ACCRUED AND OTHER LIABILITIES
Creditors 24,544,891 13,834,305
Advances from customers 24,305,000 4,750,000
Accrued charges 11,643,120 11,747,022
Mark up / Interest on
Lease finance 2,444,215 2,176,918
Short/long term finances 4,125,361 2,948,276
Excise duty on short term finances -- 37,132
Due to associated undertaking -- 5,081,762
Tax deducted at source 3,889,032 3,096,536
Zakat payable (9.1) 894,265 894,265
------------------ ------------------
71,845,882 44,566,216
========== ==========
9.1 Zakat Deducted at source pertains to the year 1994-95.
10. TAXATION
The income tax assessment of the company has been finalized up to Financial Year ended 30th September
1998 (Assessment year 1999-2000).
11. CONTINGENCIES AND COMMITMENTS
11.1 The company has filed a claim of Rs. 2.211 million for the refund of income tax paid under section
80D of the income tax ordinance 1979, in accordance with the honourable supreme courts decision
dated June 04, 1997 for exempted units.
11.2 The delayed payment of sales tax by the company entail the additional tax liability, the amount of
which could not be calculated with substantial accuracy.
12. OPERATING FIXED ASSETS
COST DEPRECIATION  BOOK
VALUE
PARTICULARS As at Additions As at Rate As at For the As at As at
October for the  September % September year September September
01, 1999 year 30, 2000 30, 1999 30, 2000 30, 2000
OWNED
Land - free hold 2,239,695 -- 2,239,695 -- -- -- -- 2,239,695
Building on freehold land
Factory 27,177,520 -- 27,177,520 10 12,279,524 1,489,800 13,769,324 13,408,195
Non Factory 602,336 -- 602,336 5 2,145,501 22,642 168,343 433,993
Residential
- Officers 209,088 -- 209,088 5 47,299 8,089 55,388 153,700
- Workers 1,303,999 -- 1,303,999 10 591,751 71,225 662,976 641,023
------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------
29,292,943 -- 29,292,943 13,064,075 1,591,956 14,656,031 14,636,912
Plant and machinery 119,105,827 4,000 119,109,827 10 45,656,032 7,345,380 53,001,412 66,108,415
Electric installations 9,812,113 -- 9,812,113 10 4,409,544 540,257 4,949,801 4,862,312
Equipments and Appliances 4,722,345 31,500 4,735,845 10 1,746,181 300,766 2,046,947 2,706,898
Office equipments 362,881 69,165 432,046 10 134,942 29,710 164,652 267,394
Furniture & fixtures 344,310 -- 344,310 10 104,264 24,005 128,269 216,041
Fire fighting equipments 37,550 -- 37,550 10 12,151 2,540 14,691 22,859
Tubewell 39,028 -- 39,028 10 15,322 2,371 17,693 21,335
Vehicles 1,100,000 1,340,000 2,440,000 20 793,619 329,276 1,122,895 1,317,105
Computer Association 247,744 1,050 248,794 20 74,916 34,776 109,692 139,102
------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------
135,771,798 1,445,715 137,217,513 52,946,971 8,609,081 61,556,052 75,661,461
LEASED ASSETS
Plant and machinery 4,000,000 -- 4,000,000 10 131,375,600 262,440 1,638,040 2,361,960
------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------
4,000,000 -- 4,000,000 1,375,600 262,440 1,638,040 2,361,960
------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------
Rupees 2000 171,304,436 1,445,715 172,750,151 67,386,646 10,463,477 77,850,123 94,900,029
========== ========== ========== ========== ========== ========== ========== ==========
Rupees 1999 169,200,492 2,103,945 171,304,437 56,058,700 11,327,946 67,386,646 103,917,790
========== ========== ========== ========== ========== ========== ========== ==========
12.1 Depreciation for the year has been appropriated as under:
2000 1999
Rupees Rupees
Cost of sales 10,014,779 11,123,586
Administrative 448,698 204,360
------------------ ------------------
10,463,477 11,327,946
========== ==========
13. CAPITAL WORK IN PROGRESS
Building 431,625 431,625
Plant and machinery 5,762,182 5,244,814
------------------ ------------------
6,193,807 5,676,439
========== ==========
14. LONG TERM DEPOSITS AND DEFERRED COSTS
Long term deposits: 202,000 166,000
Deferred costs 767,009 927,188
------------------ ------------------
969,009 1,093,188
========== ==========
15. STORES AN D SPARES
Stores 51,132 93,075
Spares 875,006 345,316
------------------ ------------------
926,138 438,391
========== ==========
16. STOCK IN TRADE
Raw materials 1,794,528 787,422
Work in process 2,518,244 894,087
Finished goods 216,508 409,320
Waste 294,672 225,264
------------------ ------------------
4,823,952 2,316,093
========== ==========
17. ADVANCES, DEPOSITS, PREPAYMENTS
AND OTHER RECEIVABLES
Advances to:
Employees 767,200 299,381
Suppliers 2,529,441 2,232,911
Excise duty deposit 36,340 36,340
Advance tax 2,341,025 2,302,502
Prepayments -- 2,306
Due from associated undertaking (17.1) 5,675,302 --
------------------ ------------------
11,349,308 4,873,440
========== ==========
17.1 The maximum aggregate amount due from association undertaking at the end of the any month
during the year was Rs. 6,765,311 (1999 Rs. 7,052,852 Cr.)
18. CASH AND BANK BALANCES
In hand 52,834 15,210
At banks 65,680 44,251
------------------ ------------------
118,514 59,461
========== ==========
19. SALES - Net
Yarn - Local 181,009,400 154,706,500
Waste 1,316,975 1,050,242
------------------ ------------------
182,326,375 155,756,742
========== ==========
20. COST OF SALES
Raw material consumed (Note 20.1) 130,815,840 101,624,338
Stores & Spares Consumed 6,199,612 4,726,684
Packing material consumed 1,530,181 1,208,929
Salaries, wages and benefits 10,022,147 9,271,461
Power and fuel 19,890,357 19,929,029
Insurance 234,740 115,302
Textile cess 14,400 14,400
Depreciation 10,014,779 11,123,586
------------------ ------------------
178,722,056 148,013,729
work in process
Opening 894,087 1,345,234
Closing (2,518,244) (894,087)
------------------ ------------------
(1,624,157) 451,147
------------------ ------------------
Cost of goods manufactured 177,097,899 148,464,876
Finished goods
Opening 634,584 4,046,583
Closing (511,182) (634,584)
------------------ ------------------
123,402 3,411,999
------------------ ------------------
177,221,301 151,876,875
========== ==========
20.1 RAW MATERIAL CONSUMED - NET
Opening stock 787,422 2,701,672
Add purchase 131,784,602 100,306,685
------------------ ------------------
132,572,024 103,008,357
Less:
Insurance claim -- (612,000)
Closing stock (1,794,528) (787,422)
------------------ ------------------
(1,794,528) (1,399,422)
------------------ ------------------
Add: 130,777,496 101,608,935
Cotton cess 38,344 15,403
------------------ ------------------
130,815,840 101,624,338
========== ==========
21. ADMINISTRATIVE EXPENSES
Directors remuneration 282,000 282,000
Salaries, wages and benefits 1,210,655 1,084,749
Travelling and conveyance 55,136 100,831
Rent, rate and taxes 238,725 142,650
Entertainment 109,859 58,822
Communication 516,266 353,737
Printing and stationery 173,185 135,495
Insurance -- 46,605
Legal and professional 66,000 136,500
Electricity 204,695 72,755
Auditors' Remuneration (21.1) 75,000 75,000
Vehicle running expenses 729,147 274,022
Repair and maintenance 95,719 101,868
Fee and subscription 217,685 144,600
Advertisement 17,800 55,800
Registrar expenses 78,000 79,500
Depreciation 448,698 204,360
Others 9,121 162,866
------------------ ------------------
4,527,691 3,512,160
========== ==========
21.1 AUDITORS REMUNERATIONS
Audit fee 50,000 50,000
Tax Services 25,000 25,000
------------------ ------------------
75,000 75,000
========== ==========
22. SELLING EXPENSES
Loading & unloading 85,020 78,000
Insurance 2,306 12,251
Others -- 104,659
------------------ ------------------
87,326 194,910
========== ==========
23. FINANCIAL CHARGES
Mark- up on short/long term finances 5,682,596 6,280,005
Mark-up on lease finances 846,736 1,230,636
Bank charges 19,850 9,333
------------------ ------------------
6,549,182 7,519,974
========== ==========
24. LOSS PER SHARE
There is no dilutive effect on the basic earning / (loss) per share of the company. Which is based on:
Loss after taxation 6,938,599 7,916,647
Weighted average number of ordinary shares 10,000,000 10,000,000
Loss per share 0.69 0.79
25. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES
(a) INTEREST RATE RISK
The company borrows fund usually at fixed interest rates, the risk arising in minimal.
(b) CREDIT RISK
The company deals with most of regular and permanent customers who pay the instruments on
due dates. Company consider the credit risk as normal.
(c) FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
The carrying values of all financial assets and liabilities reflected in the financial statements
approximate their fair values.
26. REMUNERATION OF CHIEF EXECUTIVE AND EXECUTIVES
CHIEF EXECUTIVE EXECUTIVES
PARTICULARS 2000 1999 2000 1999
Managerial remuneration 188,000 188,000 369,331 381,993
House Rent 84,600 84,600 147,731 152,793
Utilities 9,400 9,400 36,938 38,214
------------------ ------------------ ------------------ ------------------
282,000 282,000 554,000 573,000
========== ========== ========== ==========
Number of persons 1 1 4 3
========== ========== ========== ==========
26.1 Chief Executive of the Company is provided with free use of company maintained car and
telephone at his residence.
2000 1999
Rupees Rupees
27. AGGREGATE TRANSACTIONS
WITH ASSOCIATED UNDERTAKINGS
Store items received -- 654,751
Expenses charged by 24,648,752 19,929,029
Expenses charged to 67,340 --
28. CAPACITY AND PRODUCTION
Number of spindles installed 14,400 14,400
N umber of spindles worked 14,400 14,400
Capacity at 20/s count Kgs. 3,956,242 3,956,242
Actual production of yarn all counts Kgs. 2,165,260 2,049,492
Actual production of yarn in 20/s count Kgs. 5,066,170 4,895,611
Number of shifts / day 3 3
29. GENERAL
- Number of employees at end of the year 324. (1999-274)
- Figures in the accounts have been rounded off to the nearest rupee.
- Figures of previous year have been rearranged wherever necessary for the purpose of
comparison.
Place: Faisalabad. RANA MUHAMMAD SALEEM MUHAMMAD NASRULLAH
Dated: March 03, 2001 CHIEF EXECUTIVE DIRECTOR
PATTERN OF SHARE HOLDING
AS AT SEPTEMBER 30, 2000
NUMBER SHARE HOLDING TOTAL
OF SHARE SHARES
HOLDERS FROM TO HELD
7 1 100 700
994 101 500 495600
151 501 1,000 153700
150 1,001 5,000 432300
107 5,001 10000 880800
17 10001 15000 176600
13 15001 20000 265000
9 20001 25000 215600
4 25001 30000 113800
6 30001 35000 200900
11 35001 40000 426900
3 40001 45000 135000
2 45001 50000 100000
9 50001 55000 488100
6 55001 60000 356400
1 60001 65000 63000
1 65001 70000 70000
1 70001 75000 75000
14 85001 90000 1260000
5 95001 100000 500000
1 105001 110000 106000
1 125001 130000 130000
1 130001 135000 133000
2 145001 150000 299500
1 150001 155000 151500
1 155001 160000 160000
1 185001 190000 187000
2 195001 200000 400000
1 230001 235000 234600
1 285001 290000 289000
3 495001 500000 1500000
------------------ ------------------
1528 10,000,000
========== ==========
CATEGORIES NUMBER OF TOTAL PERCENTAGE
OF SHARE SHARES
SHAREHOLDERS HOLDERS HELD
INDIVIDUAL 1516 9,161,200 91.612%
INVESTMENT COMPANIES 4 536,500 5.365%
INSURANCE COMPANIES 1 5,000 0.050%
JOINT STOCK COMPANIES 4 41,300 0.413%
FINANCIAL INSTITUTIONS 2 69,000 0.690%
OTHERS 1 187,000 1.870%
------------------ ------------------ ------------------
TOTAL 1,528 10,000,000 100.000%
========== ========== ==========
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