| PEL Appliances Limited |
|
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|
|
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|
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|
| Annual
Report 2000 |
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| Contents |
|
|
| Company
Information |
|
| Notice
of Meeting |
|
| Directors'
Report |
|
| Auditors'
Report |
|
| Balance Sheet |
|
|
| Profit
& Loss Account |
|
| Cash
Flow Statement |
|
| Notes
to the Accounts |
|
| Pattern
of Shareholding |
|
|
|
| Company
Information |
|
|
| BOARD
OF DIRECTORS |
|
| Mr.
M. Naseem Saigol |
(Chairman/Chief
Executive) |
|
| Mr.
M. Azam Saigol |
|
| Mr.
Shahid Sethi |
|
| Mr.
Haroon Ahmad Khan |
|
| Sh.
Mohibullah Usmani |
|
| Mr.
Homaeer Waheed |
|
| Mr.
Maqbool Elahi |
|
|
| COMPANY
SECRETARY |
|
| Sheikh
Muhammad Shakeel, ACA |
|
|
| AUDITORS |
|
| M/s
Manzoor Hussain Mir & Co. |
|
| Chartered
Accountants |
|
|
| BANKERS |
|
| ABN
Amro Bank N.V. |
|
| Deutsche
Bank AG |
|
| Faysal
Bank Limited |
|
| Mashreq
Bank PSC |
|
| National
Bank of Pakistan |
|
|
| REGISTERED
OFFICE |
|
| 06-Egerton
Road, |
|
| Lahore |
|
| Tel:
6306131 (5 Lines) |
|
|
| WORKS |
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| 302-Gadoon
Amazai |
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| Industrial
Estate, |
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| District
Swabi (NWFP) |
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| Notice
of Annual General Meeting |
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| Notice
is hereby given that the Nineteenth Annual General Meeting of Shareholders of
PEL APPLIANCES |
|
| LIMITED
will be held on Saturday 23rd December 2000 at 10:30 A.M. at 06-Egerton Road,
Lahore the |
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| Registered
Office of the Company to transact the following business:- |
|
|
| 1.
To confirm the minutes of Eighteenth Annual General Meeting held on December
31, 1999. |
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|
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| 2.
To receive and adopt the Annual Audited Accounts for the year ended 30 June,
2000 alongwith |
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| Directors'
and Auditors' Reports thereon. |
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|
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| 3.
To approve the appointment of Chief Executive of the Company as recommended
by the Board. |
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|
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| 4.
To appoint Auditors to hold office till the conclusion of the next Annual
General Meeting and to fix |
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| their
remuneration. |
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|
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| 5.
Any other business with the permission of the Chair. |
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|
By order of the Board |
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| Lahore |
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|
SHEIKH MUHAMMAD SHAKEEL |
|
| December 01, 2000 |
|
Company Secretary |
|
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| NOTES: |
|
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| 1.
The Share Transfer Books of the Company will remain closed from 23rd December
2000 to |
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| 29
December 2000 (both days inclusive). |
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|
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| 2.
A member entitled to attend and vote at this meeting may appoint another
member as proxy. |
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| Proxies
in order to be effective, must be received at the Registered Office of the
Company not |
|
| later
than forty-eight hours before the time of the meeting and must be duly
stamped, signed and |
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| witnessed. |
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|
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| 3.
Members whose shares are deposited with Central Depository System are
requested to bring their |
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| original
National Identity Card alongwith their Account Number in Central Depository
System for |
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| attending
the meeting. |
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|
|
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| 4.
Members are requested to notify the Company change in their addresses, if
any. |
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| Directors'
Report to the Members |
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| GENTLEMEN |
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| Your
Directors are pleased to submit their Report together with the Audited
Accounts of the Company |
|
| for
the year ended 30 June 2000. |
|
|
| FINANCIAL |
|
|
2000 |
1999 |
|
|
|
|
(Rupees in
thousands) |
|
|
|
| Gross sales |
|
|
520,683 |
453,371 |
|
| Gross profit |
|
|
36,136 |
47,022 |
|
| Operating loss |
|
|
(21,416) |
(9,568) |
|
| Net
loss for the year |
|
|
(137,269) |
(120,600) |
|
|
| CHAIRMAN'S
REVIEW |
|
| The
Review included in the Annual Report deals inter alia with the performance of
the Company for the |
|
| year
ended June 30, 2000 and future prospects. The directors endorsed the contents
of the review. |
|
|
| AUDITORS
AND THEIR REPORT |
|
| The
present Auditors Messrs Manzoor Hussain Mir & Company, Chartered
Accountants, retires and being |
|
| eligible,
offer themselves for reappointment. |
|
|
| The
company has chalked out a plan to bring its air-conditioner business out of
losses and to expand |
|
| sales
of deep-freezer in a way that it should improve its operating results
substantially in the ensuing |
|
| year.
This plan has been explained in more detail in the Chairman's review and the
management is |
|
| confident
to achieve the targets for the current year. |
|
|
| No
provision has been made for diminution in the value of short term investments
in view of the fact |
|
| that
prices quoted on Stock Exchanges are normally depressed these days. |
|
|
| Investment
in shares was made prior to 1995. According to the opinion of M/S Hassan
& Hassan Advocates |
|
| relevant
provision of Companies Ordinance will be operative with effect from 2nd day
of July 1995 ad |
|
| will
not be applicable to the investment made prior to amendment in statue. |
|
|
| PATTERN
OF SHAREHOLDING |
|
| A
statement showing pattern of holding of the shares held by the shareholders
of PEL APPLIANCES |
|
| LIMITED
as at 30 June, 2000 is attached. |
|
|
|
|
For and on behalf of the Board |
|
|
|
|
|
|
| Lahore |
|
|
M. Naseem Saigol |
|
| December
01,2000 |
|
Chairman / Chief Executive |
|
|
|
| Auditors'
Report to the Members |
|
|
| We
have audited the annexed balance sheet of PEL APPLIANCES LIMITED as at 30
June 2000 and the related |
|
| profit
and loss account, cash flow statement and statement of changes in equity
together with the notes |
|
| forming
part thereof, for the year then ended and we state that we have obtained all
the information and |
|
| explanations
which, to the best of our knowledge and belief, were necessary for the
purposes of our audit. |
|
|
| It
is the responsibility of the company's management to establish and maintain a
system of internal |
|
| control,
and prepare and present the above said statements in conformity with the
approved accounting |
|
| standards
and the requirements of the Companies Ordinance, 1984. Our responsibility is
to express an |
|
| opinion
on these statements based on our audit. |
|
|
| We
conducted our audit in accordance with the auditing standards as applicable
in Pakistan. These |
|
| standards
require that we plan and perform the audit to obtain reasonable assurance
about whether the |
|
| above
said statements are free of any material misstatement. An audit includes
examining, on a test basis, |
|
| evidence
supporting the amounts and disclosures in the above said statements. An audit
also includes |
|
| assessing
the accounting policies and significant estimates made by the 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 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 |
|
| 30
June 2000 and of the loss, its cash flow and changes in equity for the year
then ended; and |
|
|
| 1.
The Company is sustaining losses continuously from 1997 to 2000, it has
sustained losses |
|
| aggregating
to Rs. 479.833 Million, as a result of which the share-holders equity has
converted |
|
| into
deficit balance of Rs. 176.083 Million. The current liabilities have exceeded
the current |
|
| assets
by Rs. 196.839 Million. The production capacity is not fully utilized and
unit is working |
|
| much
below the rated capacity. The business of the company in our opinion, can be
viable |
|
| only
if further funds are introduced for meeting working capital requirements anti
management |
|
| is
in a position to improve future profitability by improving production
activities. |
|
|
| 2.
The short term investment is allowed to stand at cost which is contrary to
method of valuation |
|
| of
lower of cost and market. In our opinion the diminution in the value of the
shares indicated |
|
| at
Note No. 7(i) of Rs. 22.935 Million should have been provided in the
accounts. |
|
|
|
|
| 3.
Investment in shares of associated Companies and advances to them aggregating
to |
|
| Rs.
69.512 Million indicated at Note No. 7(ii) are in excess of 30% share holders
equity which |
|
| shows
deficit balance. The investment made and advances given are contrary to the
provisions |
|
| of
Section 208 of the Companies Ordinance, 1984. |
|
|
|
|
|
| (d)
in our opinion no Zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
|
|
|
|
| Lahore, |
|
|
MANZOOR HUSSAIN MIR & CO. |
|
| December
02, 2000. |
|
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 2000 |
|
|
|
Note |
2000 |
1999 |
|
|
|
(Rupees in
thousand) |
|
|
| FIXED
CAPITAL EXPENDITURE |
|
|
| Operating
assets |
|
3 |
289,759 |
307,600 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
289,759 |
307,600 |
|
|
| CURRENT
ASSETS |
|
| Stores,
spares and stock in trade |
|
4 |
2,062,651 |
234,787 |
|
| Trade debts |
|
5 |
118,308 |
148,057 |
|
| Advances,
deposits and prepayments |
6 |
78,463 |
104,219 |
|
| Short
term investment |
|
7 |
37,954 |
72,000 |
|
| Cash
and bank balances |
|
8 |
20,742 |
74,864 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
461,732 |
573,927 |
|
|
| CURRENT
LIABILITIES |
|
| Short
term finances |
|
9 |
225,819 |
325,212 |
|
| Current
portion of long term liabilities |
10 |
87,463 |
51,200 |
|
| Creditors,
provisions and accrued liabilities |
11 |
345,289 |
215,189 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
658,571 |
591,601 |
|
|
|
|
------------------ |
------------------ |
|
| Net
working capital |
|
|
(196,839) |
(17,674) |
|
|
|
|
========== |
========== |
|
| Total net assets |
|
|
92,920 |
289,926 |
|
| CONTINGENCIES
AND COMMITMENTS |
|
-- |
-- |
|
|
|
| LONG
TERM LIABILITIES |
|
| Long term loans |
|
13 |
123,429 |
183,166 |
|
|
|
|
------------------ |
------------------ |
|
| Net - Worth |
|
|
(30,509) |
106,760 |
|
|
|
|
========== |
========== |
|
|
|
|
| REPRESENTED
BY |
|
|
|
| Share capital |
|
14 |
58,500 |
58,500 |
|
| Reserves |
|
15 |
245,250 |
245,250 |
|
| Unappropriated
loss |
|
|
(479,833) |
(342,564) |
|
|
|
|
------------------ |
------------------ |
|
| SHAREHOLDER'S
EQUITY |
|
|
(176,083) |
(38,814) |
|
| Surplus
on revaluation of fixed assets |
16 |
145,574 |
145,574 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(30,509) |
106,760 |
|
|
|
========== |
========== |
|
|
|
|
| The
annexed notes (l) to (29) form an integral part of these financial
statements. |
|
|
|
M. Azam Saigol |
|
M. Naseem Saigol |
|
|
Director |
|
Chairman/Chief Executive |
|
|
|
|
|
Auditors' report annexed |
|
Manzoor Hussain Mir & Co. |
|
|
Lahore |
|
Chartered Accountants |
|
|
|
| PROFIT
AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2000 |
|
|
|
|
Note |
2000 |
1999 |
|
|
|
|
(Rupees in
thousand) |
|
|
|
| SALES
- GROSS (LOCAL) |
|
|
520,683 |
453,371 |
|
| SALES TAX |
|
|
76,221 |
58,525 |
|
|
|
|
------------------ |
------------------ |
|
| SALES - NET |
|
|
444,462 |
394,846 |
|
| COST
OF SALES |
|
17 |
408,326 |
347,824 |
|
|
|
|
------------------ |
------------------ |
|
| GROSS
PROFIT |
|
|
36,136 |
47,022 |
|
|
|
|
|
| OPERATING
EXPENSES |
|
| Administrative |
|
18 |
20,165 |
15,318 |
|
| Selling |
|
19 |
37,387 |
41,272 |
|
|
------------------ |
------------------ |
|
|
|
57,552 |
56,590 |
|
|
|
------------------ |
------------------ |
|
| OPERATING
LOSS |
|
|
(21,416) |
(9,568) |
|
|
|
|
|
|
| FINANCIAL
EXPENSES |
|
20 |
(116,350) |
(90,128) |
|
| OTHER
INCOMES |
|
21 |
497 |
3,872 |
|
|
|
|
|
|
------------------ |
------------------ |
|
|
| NET
LOSS FOR THE YEAR BEFORE UNUSUAL ITEMS |
(137,269) |
(95,824) |
|
| UNUSUAL
ITEMS |
|
22 |
-- |
(24,776) |
|
|
------------------ |
------------------ |
|
| NET
LOSS FOR THE YEAR |
|
|
(137,269) |
(120,600) |
|
| UNAPPROPRIATED
LOSS BROUGHT FORWARD |
(342,564) |
(221,964) |
|
|
|
|
------------------ |
------------------ |
|
| ACCUMULATED
LOSS CARRIED TO BALANCE SHEET |
(479,833) |
(342,564) |
|
|
|
|
========== |
========== |
|
| EARNING
PER SHARE |
|
-- |
-- |
|
|
|
========== |
========== |
|
|
| The
annexed notes (l) to (29) form an integral part of these financial
statements. |
|
|
|
M. Azam Saigol |
|
M. Naseem Saigol |
|
|
Director |
|
Chairman/Chief Executive |
|
|
|
|
|
Auditors' report annexed |
|
Manzoor Hussain Mir & Co. |
|
|
Lahore |
|
Chartered Accountants |
|
|
|
| CASH
FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
|
|
(Rupees in
thousand) |
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| Cash
received from customers |
|
|
457,672 |
337,165 |
|
| Cash
paid to suppliers and employees |
|
(252,885) |
(448,519 |
|
|
------------------ |
------------------ |
|
| Cash
generated from operations |
|
204,787 |
(111,354) |
|
| Markup paid |
|
(111,699) |
(66,589) |
|
| Tax refund |
|
4,470 |
(1,241) |
|
|
|
------------------ |
------------------ |
|
| Net
cash flow from operating activities |
|
97,558 |
(179,184) |
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
| Fixed
capital expenditures |
|
(3,365) |
(1,010) |
|
| Proceeds
from sale of fixed assets |
|
10 |
2,007 |
|
| Proceeds
from sale of investments |
|
30,142 |
-- |
|
| Net
(increase)/decrease in long term deposits |
|
-- |
1,226 |
|
| Interest
received |
|
4,401 |
4,932 |
|
|
|
------------------ |
------------------ |
|
| Net
cash flow from investing activities |
|
31,188 |
7,155 |
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
| Payment
of Long Term Loan |
|
(18,764) |
-- |
|
| Payment
of lease liabilities |
|
(4,710) |
(2,967) |
|
| Increase/(decrease)
in short term finances |
|
(99,394) |
172,848 |
|
|
|
------------------ |
------------------ |
|
| Net
cash flow from financing activities |
|
(122,868) |
169,881 |
|
|
|
------------------ |
------------------ |
|
| Net
decrease in cash and cash equivalents |
|
5,878 |
(2,148) |
|
| Cash
and cash equivalents at the beginning of the year |
14,864 |
17,012 |
|
|
|
------------------ |
------------------ |
|
| Cash
and cash equivalents at the end of the year |
|
20,742 |
14,864 |
|
|
========== |
========== |
|
|
|
M. Azam Saigol |
|
M. Naseem Saigol |
|
|
Director |
|
Chairman/Chief Executive |
|
|
|
| NOTES
TO THE ACCOUNTS FOR THE YEAR ENDED JUNE 30, 2000 |
|
|
| 1.
THE COMPANY AND ITS OPERATIONS |
|
|
| The
Company as Private Limited Company was incorporated in Pakistan under the
Companies Ordinance, |
|
| 1984
and converted into Public Limited Company on 23 June 1992. Its shares are
quoted on Stock Exchanges |
|
| of
Pakistan. It is a subsidiary of PAK ELEKTRON LIMITED holding 50.17% shares.
The Company is engaged in |
|
| the
manufacture and sale of domestic appliances. |
|
|
|
| 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
|
|
|
|
|
| 2.1
Accounting Convention |
|
|
|
| These
accounts have been prepared under "historical cost" Convention,
except building and plant & |
|
| machinery
which are stated at re-valued amount. |
|
|
|
| 2.2.
Employees Retirement Benefits |
|
|
| The
Company has maintained a provident fund scheme for all its permanent
employees and contributions, |
|
| based
on salaries and wages, are made monthly to cover the obligations. |
|
|
| 2.3 Taxation |
|
|
|
| No
provision for taxation is made as the project is located in the area exempted
under clause 122 (C) of |
|
| the
and schedule of the Income Tax Ordinance, 1979. The exemptions claimed has
since been accepted |
|
| by
the department. |
|
|
|
|
| 2.4
Tangible Fixed Assets and Depreciation |
|
|
| Operating
assets are stated at cost, except building and plant & machinery which
are stated at re-valued |
|
| amount,
less depreciation. Capital work-in-progress and machinery in transit are
stated at cost. |
|
|
|
|
| Depreciation
is charged to income on reducing balance method using the rates specified in
fixed assets |
|
| schedule
except for leasehold land which is being amortized proportionately over the
period of lease. A |
|
| full
year's depreciation is charged in the year of acquisition. However,
depreciation on additions to plant |
|
| &
machinery is charged only for working period. No depreciation is charged in
the year of disposal. |
|
|
| Normal
repairs and maintenance are charged to income as and when incurred. Major
renewals and |
|
| improvements
are capitalized. Profit or loss on disposal of operating assets is charged to
current income. |
|
|
| 2.5 Trade Mark |
|
|
|
| The
Consideration paid for using trade mark is amortized over a period of ten
years commencing from |
|
| March
01, 1995. However this year production of Airconditioners became un
economical and order for |
|
| supply
of some Airconditioners were placed on Pak Elektron Limited. |
|
|
| 2.6
Assets Subject to Finance lease |
|
| Assets
under finance lease are stated at lower of present value of minimum lease
payments under the |
|
| agreement
or the fair value of assets. The aggregate amount of obligations relating to
these assets are |
|
| accounted
for at net present value of liabilities. Depreciation on these assets is
charged in line with |
|
| normal
depreciation policy adopted for assets owned by the company. |
|
|
| 2.7 Investments |
|
|
|
| Short
term investments are valued at lower of cost or market value. |
|
|
| 2.8
Stores, Spares and Stock-in-Trade |
|
| Stores
and spares are valued at moving average cost. |
|
|
|
|
| Raw
material and components are valued at moving average cost. The cost of
work-in-process comprises |
|
| of
cost of materials, labour at actuals and factory overheads proportionate to
labour. Finished goods are |
|
| valued
at lower of cost or net realisable value. The raw materials and components in
bond and in transit |
|
| are
valued at cost. |
|
|
|
| 2.9
Foreign Currency conversion |
|
|
|
| Foreign
currency liability is converted at exchange rates prevailing at the balance
sheet date. Variance |
|
| relating
to fixed assets are adjusted against the value of respective assets, while
others are charged to |
|
| current
year's income. |
|
|
|
|
|
|
| 2.10
Revenue recognition |
|
|
|
| The
sale of goods is recognised on delivery of goods to customers. |
|
|
|
|
|
2000 |
1999 |
|
|
|
(Rupees in
thousand) |
|
|
| 3.
OPERATING ASSETS |
|
| Own (Note 3.1) |
|
287,143 |
297,819 |
|
| Subject
to finance lease |
|
-- |
9,781 |
|
| Capital
work in progress |
|
2,616 |
-- |
|
|
|
------------------ |
------------------ |
|
|
|
|
289,759 |
307,600 |
|
|
========== |
========== |
|
|
| 3.1
Schedule of operating assets - Own |
|
|
(Rupees in thousand) |
|
|
|
Cost as at |
Addition / |
Cost as at |
Depre- |
Accumulated |
Written down |
|
| Description |
|
July 01, 1999 |
(Deletion) |
June 30, 2000 |
ciation |
depreciation as |
value as at |
|
|
|
rate % |
at June 30, 2000 |
June 30, 2000 |
|
|
| TANGIBLE |
|
|
| Land
- Leasehold |
4,734 |
-- |
4,734 |
-- |
502 |
4,232 |
|
| Building on |
|
|
|
|
|
| leasehold land |
|
128,155 |
-- |
128,155 |
5% |
34,849 |
93,306 |
|
| Plant
and Machinery |
187,125 |
15,245 |
202,370 |
5% |
52,894 |
149,476 |
|
| Office
Equipment. |
|
|
|
|
| furniture
& fixture |
3,960 |
4 |
3,939 |
10% |
1,751 |
2,188 |
|
|
|
|
(25) |
|
|
|
| Vehicles |
|
2,525 |
-- |
2,525 |
20% |
1,917 |
608 |
|
|
|
|
| INTANGIBLE |
|
|
|
|
| Trade mark |
|
80,000 |
-- |
80,000 |
|
42,667 |
37,333 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Total
(Rupees) 2000 |
406,499 |
(15,249 |
421,723 |
|
134,580 |
287,143 |
|
|
|
(25) |
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
| 1999 |
|
259,224 |
148,484 |
406,499 |
|
109,368 |
297,819 |
|
|
|
(1,209) |
|
|
(688) |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
|
2000 |
1999 |
|
|
|
(Rupees in
thousand) |
|
|
| 3.1.1
Depreciation for the year has been charged to |
|
| Cost of sales |
|
20,999 |
13,505 |
|
| Administrative
Expenses |
|
198 |
230 |
|
|
|
------------------ |
------------------ |
|
|
|
21,197 |
13,735 |
|
|
========== |
========== |
|
|
| 3.1.2
In 1999 the remaining useful life of the building, Plant & Tools was
estimated at 20 years by an independent valuer |
|
| and
depreciation since then is being charged on these fixed assets @ 5% instead
of 10%. |
|
|
| 3.2
Disposal of fixed assets |
|
|
|
|
|
|
(Rupees in thousand) |
|
|
| Description |
Cost |
Accumulated |
Net Book |
Sale |
Profit / |
Particulars of Purchaser |
|
|
Depreciation |
Value |
Price |
(Loss) |
(Through Negotiation) |
|
|
| Ceiling Fan |
5 |
3 |
2 |
2 |
-- |
M. Azam Khan Swabi Gadoon |
|
| Desert Cooler |
5 |
3 |
2 |
2 |
-- |
M. Azam Khan Swabi Gadoon |
|
| Geyser |
3 |
2 |
1 |
1 |
-- |
M. Azam Khan Swabi Gadoon |
|
| Refrigerator |
12 |
7 |
5 |
5 |
-- |
M. Azam Khan Swabi Gadoon |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| TOTAL |
25 |
15 |
10 |
10 |
-- |
|
|
========== |
========== |
========== |
========== |
========== |
|
|
|
|
| 4.
STORES, SPARES AND STOCK IN TRADE |
|
| Store |
|
192 |
292 |
|
| Spares |
|
98 |
117 |
|
|
|
|
| Raw
materials and components |
|
|
| In stores |
|
|
102,091 |
92,831 |
|
| In
bonded warehouse |
|
30,801 |
73,445 |
|
| In transit |
|
|
16,536 |
-- |
|
| Work in process |
|
|
5,930 |
3,124 |
|
| Finished goods |
|
|
50,617 |
64,978 |
|
|
|
------------------ |
------------------ |
|
|
|
206,265 |
234,787 |
|
|
========== |
========== |
|
|
| 4.1
Stocks of Rs. 31.301 Million were not offered for physical verification. |
|
| However,
stocks were reconciled with production and sales records of subsequent
period. |
|
|
| 5.
TRADE DEBTS UN-SECURED |
|
| Considered
good |
|
118,308 |
148,057 |
|
| Considered
doubtful |
|
5,921 |
996 |
|
|
|
------------------ |
------------------ |
|
|
|
124,229 |
149,053 |
|
|
| Less: |
|
| Provision
for doubtful debts |
|
5,921 |
996 |
|
|
------------------ |
------------------ |
|
|
118,308 |
148,057 |
|
|
========== |
========== |
|
|
| These
are due from customers against the goods supplied to them. |
|
|
|
| 6.
ADVANCES, DEPOSITS AND PREPAYMENTS |
|
| Advances
to employees (considered good) for |
|
|
| Purchases |
|
1,163 |
774 |
|
| Expenses |
|
155 |
332 |
|
| Others |
|
723 |
66 |
|
|
|
------------------ |
------------------ |
|
|
|
2,041 |
1,172 |
|
|
|
|
| Advances
to suppliers and contractors |
|
1,843 |
1,259 |
|
| Provision
for doubtful advances |
|
641 |
-- |
|
|
|
------------------ |
------------------ |
|
|
|
|
1,202 |
1,259 |
|
|
|
|
------------------ |
------------------ |
|
| Advances
against supplies |
|
3,644 |
1,770 |
|
| Provision
for doubtful advances |
|
|
426 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
3,218 |
1,770 |
|
| Advance
excise duty / Sale tax (Note 6.1) |
|
23,829 |
24,050 |
|
| Letters of credit |
|
|
115 |
24,094 |
|
| Security
deposits |
|
537 |
2,083 |
|
| Margin deposits |
|
|
1,408 |
1,173 |
|
| Prepaid
expenses |
|
574 |
329 |
|
| Other
receivable (note 6.2) |
|
31,559 |
29,839 |
|
| Tax
recoverable (Note 6.3) |
|
13,980 |
18,450 |
|
|
|
------------------ |
------------------ |
|
|
|
78,463 |
104,219 |
|
|
|
========== |
========== |
|
|
| 6.1
(a) It includes Rs. 11.914 Million on account of regulatory duty. The matter
was decided by the Honourable |
|
| Peshawar
High Court in favour of the company but Custom Authorities have filled an
appeal before |
|
| the
Honourable Supreme Court of Pakistan against relief allowed. The Honourable
Apex Court vide its |
|
| judgement
dated 12-01-1999 decided the issue involved against the revenue authorities. |
|
|
| (b)
It also includes Rs. 11.725 million on account of custom duty and sales tax.
In 1996 the company |
|
| lodged
a claim for Rs. 27.835 million with A.C. Customs Central Excise and Sales-tax
for the |
|
| custom
duty and sales tax under SRO No. 108(I)/95 dated 12-02-1995 but claim was
entertained |
|
| to
the extent of Rs. 16.111 million As confirmed by legal advisor the writ filed
for the balance |
|
| amount
of Rs. 11.725 million is yet pending decision with the Peshawar High Court. |
|
|
| 6.2
It includes Rs. 31.558 million due from associated companies (1999 - Rs.
29.698 million). |
|
|
| 6.3
Amounts recoverable are mostly comprising of the Taxes paid U/S 80-D of the
Income Tax Ordinance, |
|
| 1979
and deductions made by the customers U/S 50(4). |
|
|
| 7.
SHORT TERM INVESTMENT - AT COST |
|
| UNION
BANK LIMITED |
|
| 1,726,265
ordinary shares of Rs. 10 each |
|
37,954 |
72,000 |
|
| (including
225,1 65 bonus shares (1999 - NIL) |
|
| Market
value of shares is Rs. 8.70/= per share = |
|
| Rs.
15.019 Million (1999: 2,847,656 ordinary shares |
|
| of
market value of Rs. 22.384 per share = Rs. 63.741 Million. |
------------------ |
------------------ |
|
|
|
|
37,954 |
72,000 |
|
|
|
|
========== |
========== |
|
|
| (i)
The short fall in the value of shares amounting to Rs. 22.935 million is not
provided being of |
|
| temporary
nature. |
|
|
|
|
| (ii)
Investments its shares of associated Companies of Rs. 37,954 million and
advances of Rs. 31.558 |
|
| million
aggregating to Rs. 69.512 million are in excess of 30% of share holders'
equity representing |
|
| deficit
balance which is contrary to provisions of Section 208 of the Companies
Ordnance, 1984. |
|
|
| (iii)
investment in shares was prior to 1995. According to legal advisor the
provision to Section 208(I) |
|
| inserted
by finance Act, 1995 prescribing the limit of 30% of the paid up capital plus
reserves |
|
| being
a substantive provision of law is operative prospectively with effect from
2nd day of July, |
|
| 1995
and is not applicable to the investments made prior to amendment in statute. |
|
|
|
|
| As
per legal advice the investment in shares made by the company in associated
companies prior to the |
|
| insertions
of proviso remains unaffected, if such investment exceed the threshold
provided in the proviso as |
|
| substantive
rights and liabilities were established under the arrangements entered into
by and between the |
|
| investing
companies and the associated companies in which the investment were made. |
|
|
| 8.
CASH AND BANK BALANCES |
|
| Cash in hand |
|
|
|
232 |
329 |
|
| Balance
with banks - on current accounts |
|
14,632 |
20,413 |
|
|
|
------------------ |
------------------ |
|
|
|
14,864 |
20,742 |
|
|
|
========== |
========== |
|
|
| 9.
SHORT TERM FINANCES - SECURED |
|
|
Limit |
|
|
|
(Rs. Million) |
|
|
| From: |
|
|
|
| Banking
Companies |
|
|
|
| Running
Finance |
|
195.00 |
169,833 |
209,596 |
|
|
| Import
Bi1ls Purchased |
|
-- |
32,479 |
91,754 |
|
|
| Financial
Institutions |
|
20.00 |
20,000 |
20,000 |
|
|
| Book
Overdrawn |
|
-- |
3,507 |
3,862 |
|
|
|
|
------------------ |
------------------ |
|
|
|
225,819 |
325,212 |
|
|
|
========== |
========== |
|
|
| Security: |
Short term finance's
limits are secured against the pledge/hypothecation of raw materials and |
|
|
components,
work-in-process, finished goods, book debts, charge over other fixed assets |
|
|
documents of title of
goods, shares of listed companies, cross corporate guarantees and personal |
|
|
guarantees of Directors
of the company. The banks also have a first equitable mortgage charge on |
|
|
the fixed assets of the
company. |
|
|
| Mark-up: |
Rupee 0.38 to Rupee 0.62
per thousand rupees per day. |
|
|
|
| 10.
CURRENT PORTION OF LONG TERM LIABILITIES |
|
| Long term loans |
|
|
87,463 |
46,490 |
|
| Liabilities
against assets subjects to finance lease |
|
-- |
4,710 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
87,463 |
51,200 |
|
|
========== |
========== |
|
|
| 10.1
LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE |
|
| Opening
Balance |
|
4,710 |
7,677 |
|
| Less:
Payments during the year |
|
4,710 |
2,967 |
|
|
|
------------------ |
------------------ |
|
|
|
-- |
4,710 |
|
| Less:
Current portion |
|
-- |
4,710 |
|
|
|
------------------ |
------------------ |
|
|
-- |
-- |
|
|
========== |
========== |
|
|
|
| The
rentals are payable in equal monthly installments under the lease agreement. |
|
| The
balance amount is payable in the following periods: |
|
|
| Year
ending 30 June 2000 |
|
-- |
|
|
------------------ |
|
| Less:
Financial Charges |
|
|
-- |
|
|
|
|
========== |
|
|
| The
present value of minimum lease payments have been discounted at an effective
interest rate of 19.46% |
|
| to
20.16% per annum. Repairs and insurance costs are to be borne by the lessee. |
|
|
| The
liability is secured by personal guarantees of some of the directors of the
Company. |
|
|
|
|
| 11.
CREDITORS, PROVISIONS AND ACCRUED LIABILITIES |
|
| Trade creditors |
|
| For goods |
|
|
22,062 |
18,669 |
|
| For expenses |
|
|
11,195 |
8,708 |
|
| Advances
from customers |
|
|
10,178 |
7,075 |
|
| Accrued
liabilities |
|
|
3,126 |
2,590 |
|
| Sales
tax / Custom duty payable |
|
|
3,435 |
23,076 |
|
| Import
duties and surcharge payable |
|
2,497 |
5,725 |
|
| Accrued
mark-up on secured loans |
|
42,644 |
37,993 |
|
| Other
liabilities (Including Rs. 246.205 million due |
|
250,152 |
111,353 |
|
| to
Pak Elektron Limited - Holding Company |
|
| (1999:
Rs. 108.243 million) |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
345,289 |
215,189 |
|
|
|
========== |
========== |
|
|
|
|
| 12.
CONTINGENCIES AND COMMITMENTS |
|
|
|
|
| 12.1
The banks and insurance companies have issued following guarantees |
|
| and
letter of credit on behalf of the company. |
|
| 12.1,1
Custom guarantees |
|
36,739 |
22,321 |
|
| 12.1.2
Letter of credit |
|
33,510 |
9,375 |
|
| 12.2
Turnover tax and other disputed liability |
|
20,919 |
17,129 |
|
| 12.3
Claims of leasing companies |
|
-- |
471 |
|
|
|
|
|
| 12.4
Appeal against the departmental contention of wrongly allowing refund of Rs.
16.111 million in past |
|
| has
been decided by the custom, excise and sales tax Learned Appellate Tribunal
in favour of the |
|
| company
vide order dated 27-02-1999 against which the departmental appeal is pending
in Honourable |
|
| Peshawar
High Court. |
|
|
|
|
| 13.
LONG TERM LOANS - SECURED |
|
|
|
|
(Rupees in thousand) |
|
|
| Description |
|
2000 |
1999 |
M.Up |
Security |
|
Repayment |
|
|
|
|
| 13.1
From Banking Companies |
|
|
|
|
|
|
| 13.1.1
Demand finance |
120,840 |
130,000 |
12% p.a. |
- First charge on all present and |
- Repayable in 4 years
including one |
|
|
|
future fixed assets of
the company |
year as a grace period |
|
|
|
valuing Rs. 145 Million |
12 quarterly equal
installments of |
|
|
|
|
|
|
Rs 13060 million
commenced |
|
|
|
|
|
|
from March 27, 2000 |
|
|
|
|
|
|
|
| 13.1.2
Term finance |
23,600 |
24,958 |
15% p.a. |
- First Pari-Passu Charge
on all |
- Grace Period till December 1999 |
|
|
|
|
current & fixed
assets of the company |
Principal repayments
commenced |
|
|
|
|
Personal Guarantees of |
from 15 Jan 2000 ending
in December |
|
|
|
|
the Directors |
|
through 24 monthly
installments. |
|
|
|
|
- Corporate Guarantee from |
- Non payment of mark-up by 15th
of |
|
|
|
|
Pak Elektron Limited |
the month mark-up @ 18%
will be applicable. |
|
|
|
|
|
| 13.1.3
Term finance |
36,385 |
41,396 |
14% p.a. |
- Hypo charge over Plant a |
- Repayable in 48 equal monthly |
|
|
|
|
Machinery and Current
Assets |
installments of Rs 1.167 |
|
|
of the Company |
|
commenced from October
01, 1999 |
|
|
- Personal Guarantees of
Directors |
|
|
|
|
| 13.1.4
Morabaha Term L.P.O |
14,885 |
16,021 |
17% p.a. |
- Ranking charge on fixed and |
- Repayable in 48 equal monthly |
|
|
|
current asses of the
company |
installments of Rs 0.499
million |
|
|
|
- Personal guarantees of |
commenced from December
01, 1999 |
|
|
|
sponsors directors |
|
|
|
|
| 13.2
Financial Institutions |
15,182 |
17,281 |
21% p.a. |
Pledge of 904,600 shares
of |
Repayable in 19 monthly
equal |
|
|
Union Bank Ltd. PEL
Appliances |
installments of Rs 0888
million commenced |
|
|
Ltd. Pak Elektron Ltd.
and |
from June 17, 2000. |
|
|
Kohinoor Power Company of |
|
|
Rs. 4.442 million. |
|
|
|
|
- The bank also holds fard of
property |
|
|
|
situated at Faisalabad
alongwith |
|
|
|
memorandum of deposit of
the |
|
|
|
title deed for this
property and |
|
|
|
general power of attorney
from owner |
|
|
|
|
|
-- Personal guarantees of
directors |
|
|
------------------ |
------------------ |
|
|
|
210,892 |
229,656 |
|
| Less:
Current portion |
87,463 |
46,490 |
|
|
|
------------------ |
------------------ |
|
|
|
123,429 |
183,166 |
|
|
========== |
========== |
|
|
|
|
2000 |
1999 |
|
|
|
(Rupees in
thousand) |
|
|
| 14.
SHARE CAPITAL |
|
| Authorised |
|
| 10,000,000ordinary
shares of |
|
| Rs. 10/- each |
|
|
100,000 |
100,000 |
|
|
========== |
========== |
|
| Issued,
subscribed and paid-up |
|
| 5,850,000
ordinary shares of |
|
| Rs.
10/- each fully paid |
|
| 3,125,000
Shares for cash |
|
|
31,250 |
31,250 |
|
| 2,725,000
Shares as bonus shares |
|
|
27,250 |
27,250 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
58,500 |
58,500 |
|
|
========== |
========== |
|
|
|
| 15. RESERVES |
|
| Reserve
- General |
|
| Balance
from previous year |
|
|
189,000 |
789,000 |
|
| Premium
on issue of shares |
|
|
56,250 |
56,250 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
245,250 |
245,250 |
|
|
========== |
========== |
|
|
| 16.
SURPLUS ON REVALUATION OF FIXED ASSETS |
745,574 |
145,574 |
|
|
========== |
========== |
|
|
| The
factory building and plant & machinery were revalued by Inspectorates
Corporation (Pvt) Ltd. Lahore, a |
|
| company
of industrial valuation consultants as at 30 June, 1999 and accordingly such
revaluation was |
|
| incorporated
in the books of account. Surplus on revaluation was determined by M. Yousaf
Adil Saleem & Co. |
|
| Chartered
Accountants, Lahore (appearing on State Bank of Pakistan's list of Chartered
Accountants approved |
|
| for
the purpose of revaluation) in their report of 01 November, 1999. |
|
|
| 17.
COST OF SALES |
|
| Raw
materials and components |
|
312,235 |
322,489 |
|
| Direct Wages |
|
8,578 |
8,087 |
|
| Factory
Overheads (Note 77.7) |
|
27,294 |
22,894 |
|
|
|
------------------ |
------------------ |
|
|
|
348,107 |
353,470 |
|
|
| (Increase)/decrease
in work in process |
|
| Opening
Inventory |
|
3,124 |
12,709 |
|
| Closing
Inventory |
|
5,930 |
3,724 |
|
|
|
------------------ |
------------------ |
|
|
|
(2,806) |
9,585 |
|
|
|
------------------ |
------------------ |
|
|
|
345,301 |
363,055 |
|
| Finished
Goods Purchased |
|
48,664 |
-- |
|
| (Increase)/decrease
in finished goods |
|
| Opening
inventory |
|
64,978 |
49,747 |
|
| Closing
Inventory |
|
50,617 |
64,978 |
|
|
|
------------------ |
------------------ |
|
|
|
14,361 |
(75,231) |
|
|
|
------------------ |
------------------ |
|
|
|
408,326 |
347,824 |
|
|
|
========== |
========== |
|
|
|
|
| 17.1
Factory Overheads |
|
| Salaries
and other benefits |
|
8,081 |
7,737 |
|
| Travelling
& conveyance |
|
214 |
185 |
|
| Electricity
and gas |
|
3,558 |
3,394 |
|
| Repairs
and maintenance |
|
2,759 |
2,690 |
|
| Vehicles
running and maintenance |
|
498 |
421 |
|
| Insurance |
|
|
1,220 |
7,562 |
|
| Depreciation/Amortisation |
|
20,951 |
13,972 |
|
| Amortisation
of leasehold land |
|
48 |
48 |
|
| Carriage
and freight |
|
2,605 |
2,495 |
|
| Other
factory over heads |
|
430 |
356 |
|
|
|
------------------ |
------------------ |
|
|
|
40,364 |
32,860 |
|
| Less:
charged to components |
|
| and
assets fabricated |
|
13,070 |
9,966 |
|
|
|
------------------ |
------------------ |
|
|
|
27,294 |
22,894 |
|
|
|
========== |
========== |
|
|
| 18.
ADMINISTRATIVE EXPENSES |
|
| Salaries
and other benefits |
|
|
7,402 |
8,601 |
|
|
|
| Travelling
and conveyance |
|
|
376 |
370 |
|
|
|
| Rent,
rates and taxes |
|
|
498 |
596 |
|
|
|
| Legal
and professional |
|
|
746 |
304 |
|
|
|
| Electricity
and gas |
|
|
130 |
137 |
|
|
|
| Auditors'
remuneration |
|
|
45 |
45 |
|
|
|
| Repairs
and maintenance |
|
|
223 |
147 |
|
|
|
| Vehicles
running and maintenance |
|
701 |
909 |
|
|
|
| Printing,
stationery and periodicals |
|
519 |
501 |
|
|
|
| Postage,
telegrams and telephones |
|
902 |
972 |
|
|
|
| Entertainment
& staff welfare |
|
|
|
|
|
| Advertisement |
|
|
25 |
39 |
|
|
|
| Provision
for Doubtful Debts & advances |
|
5,993 |
-- |
|
|
|
| Depreciation |
|
|
198 |
230 |
|
|
|
| Charges
for services rendered by |
|
|
|
| holding
company |
|
2,400 |
2,400 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
20,165 |
15,318 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
|
| 19.
SELLING EXPENSES |
|
|
|
| Rent,
rates & taxes |
|
|
658 |
1,511 |
|
|
|
|
| Advertisement
and sales promotion |
|
22,587 |
14,478 |
|
|
|
|
| Royalty |
|
|
535 |
1,671 |
|
|
|
|
| Insurance |
|
|
358 |
511 |
|
|
|
|
| Freight
and forwarding |
|
|
3,914 |
10,074 |
|
|
|
|
| Warranty
period service |
|
|
5,130 |
8,818 |
|
|
|
|
| Electricity |
|
|
5 |
9 |
|
|
|
|
| Charges
for services rendered by holding company |
|
4,200 |
4,200 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
37,387 |
41,272 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
| 20.
FINANCIAL EXPENSES |
|
| Bank
charges and commission |
|
|
6,444 |
1,511 |
|
|
|
|
|
|
|
|
| Interest/Mark
up on: |
|
|
|
|
|
| Long term loans |
|
|
29,270 |
9,864 |
|
|
|
| Lease finance |
|
1,202 |
731 |
|
|
|
| Short
term finances |
|
57,133 |
65,104 |
|
|
|
| Holding/Associated
Companies |
|
22,301 |
12,487 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
116,350 |
90,128 |
|
|
|
|
========== |
========== |
|
|
| 21.
OTHER INCOMES/(LOSS) |
|
|
|
| Mark
up income: |
|
|
|
| from
Bank Deposits |
|
|
73 |
52 |
|
|
|
| from
Associated Companies |
|
|
4,328 |
4,880 |
|
|
|
| Loss
on Sale of Assets |
|
|
-- |
(1,060) |
|
|
|
| Loss
on Sale of Investments |
|
|
(3,904) |
-- |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
497 |
3,872 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 1,346,556
shares were sold during the year at the average sale of Rs. 22.384 in
pursuance of sale agreement |
|
| made
in April, 1999 while the average cost of such shares of company was Rs.
25.284 sustaining loss of |
|
| Rs.
3.904 Million. |
|
|
|
|
| 22.
UN-USUAL ITEMS |
|
| Government
of Pakistan vide Notification No. SRO-517(1)89 dated 03-06-1989 allowed
exemption to all |
|
| industrial
units established in Gadoon Amazai (NWFP) from levy of custom duty and sales
tax etc. This concession |
|
| was
subsequently withdrawn vide Notification No. SRQ-419(1)91 dated 09-05-1991.
The withdrawal of the |
|
| exemption
was challenged by the company through Constitutional Writ but the Honourable
Peshawar High |
|
| Court
did not accept the claim of the company for exemption. However, material was
released by the custom |
|
| authorities
on the guarantees issued by the banks. Writ filed before the Honourable
Supreme Court of Pakistan |
|
| has
been decided in which it has been held that Government of Pakistan was
competent to withdraw the |
|
| exemption.
Review Petition filed before the Honourable Apex Court was also turned down
vide judgement |
|
| dated
18-12-1998. Duty paid relating to earlier period as a result of rejection of
claim for exemption being |
|
| final
in its character is written off as un-usual items, |
|
|
| 23.
PROVISION FOR TAXATION |
|
|
|
|
|
| 23.1
Assessments of the company are completed for and upto assessment year 1998-99
and losses assessed |
|
| are
Rs. 222.264 million. the losses declared in assessment year 1999-2000 are Rs.
120.600 million. |
|
|
|
|
| 23.2
Appeals relating to assessment years 1992-93 and 1993-94 against levy of tax
u/s 80-D are pending |
|
| before
the ITAT while those relating to succeeding years (1996-97 to 1998-99) were
decided in favour |
|
| of
the company either by the CIT (A) or by ITAT. Appeal filed by department
against deletion of 80-D |
|
| liability
relating to assessment year 1994-95 is still pending with Honourable Peshawar
High Court. |
|
|
| 23.3
Their lordship of Supreme court of Pakistan has already held that the
Industrial Units protected by |
|
| Economic
Reform Act, 1992 are not liable to levy of tax u/s 80-D. The company claims
that it is entitled |
|
| to
protection under Reform Act, 1992, |
|
|
|
|
|
| 23.4
The IAC in respect of assessment year 1994-95 has issued a notice u/s 66-A to
charge tax on interest |
|
| income
treating it as income from other sources instead of as a part of business
profits exempt from |
|
| tax.
The matter stands replied but no order is yet issued. His action apparently
is barred by limitation. |
|
|
| 23.5
The learned Tribunal in the years 1995-96 to 1997-98 has, however, held that
the interest income is |
|
| taxable
as income from other sources, against which the company is filing appeals
before the Honourable |
|
| Peshawar
High court. Taxability of the bonus shares for the assessment year 1996-97
was also confirmed |
|
| by
ITAT and this matter is also being taken up in appeal before the court. |
|
|
| 23.6
Their Lordship of Supreme Court of Pakistan in its recent judgement has
adjudicated that units approved |
|
| of
tax holiday concession under 2nd Schedule to the Income-tax Ordinance, 1979
are not liable to levy of |
|
| W.W.F.
The Industrial Unit of the company is also approved under Clause 122(c) of
the 2nd Schedule to |
|
| the
Income-tax Ordnance and as such no W.W.F. is payable by it and no provision
is made for the same. |
|
|
| 24.
REMUNERATION OF EXECUTIVES |
|
| The
aggregate amount charged in the accounts for the year for remuneration,
including certain benefits to the |
|
| executives
of the Company is as follows: |
|
|
|
|
|
|
2000 |
1999 |
|
|
|
(Rupees in
thousand) |
|
|
| Number
of person |
|
|
2 |
3 |
|
|
|
|
------------------ |
------------------ |
|
| Managerial
Remuneration |
|
|
556 |
724 |
|
| House Rent |
|
|
201 |
347 |
|
| Utilities |
|
|
56 |
72 |
|
| Bonus |
|
|
93 |
121 |
|
| Company's
contribution to provident fund |
|
56 |
72 |
|
|
| REIMBURSABLE
EXPENSES |
|
|
| Vehicles
running & maintenance |
|
|
213 |
252 |
|
| Medical
Expenses |
|
|
60 |
143 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,235 |
1,731 |
|
|
|
|
========== |
========== |
|
|
|
|
| No
remuneration has been paid to Chief Executive and Directors. |
|
|
| 25.
STATEMENT OF CHANGES IN EQUITY |
|
|
| The
change in equity is as follows: |
|
|
|
|
|
|
(Rupees in thousand) |
|
|
|
Share |
Unappropriated |
Reserves |
Total |
|
|
Capital |
Loss |
|
|
|
| Balance
as at June 30, 1999 |
58,500 |
(342,564) |
245,250 |
(38,814) |
|
|
| Net
loss for the year |
-- |
(137,269) |
-- |
(137,269) |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
|
| Balance
as at June 30, 2000 |
58,500 |
(479,833) |
245,250 |
(176,083) |
|
|
|
========== |
========== |
========== |
========== |
|
|
| 26.
TRANSACTIONS WITH ASSOCIATED COMPANIES |
|
| AND
MAXIMUM DEBIT BALANCES |
|
| Sales |
|
14,816 |
11,695 |
|
| Purchase
/ Services |
|
126,574 |
113,337 |
|
| Markup earned |
|
4,328 |
4,880 |
|
| Markup expense |
|
22,301 |
12,486 |
|
| The
maximum aggregated amount due from |
|
|
| associated
companies at the end of any |
|
|
| month
during the year |
|
32,433 |
29,698 |
|
|
| The
pricing policy for transactions with associated company is market value. |
|
|
| 27.
PLANT CAPACITY AND ACTUAL PRODUCTION |
|
|
|
|
Installed |
Actual |
Installed |
Actual |
|
|
|
Capacity |
Production |
Capacity |
Production |
|
|
|
2000 |
2000 |
1999 |
1999 |
|
|
| Airconditioners |
|
64125 Tons |
24755 Tons |
64125 Tons |
29685 Tons |
|
| Deep Freezers |
|
207143 Cft |
96731 Cft |
207143 Cft |
39181 Cft |
|
|
| The
utilization of Capacity is dependent on overall demand. |
|
|
| 28.
FINANCIAL INSTRUMENTS |
|
|
|
| Interest
rate risk |
|
|
|
| The
company's exposure to interest rate risk and the effective rates on its
financial assets and liabilities as on |
|
| June
30, 2000 are summarised as follows: |
|
|
|
(Rupees in thousand) |
|
INTEREST
BEARING |
|
NON-INTEREST
BEARING |
|
|
TOTAL |
|
Upto one yrs |
One to five yrs |
Five to ten yrs |
Total |
Upto one yrs |
One to five yrs |
Five to ten yrs |
Total |
|
|
| Financial
Assets: |
|
| Trade debts |
|
-- |
-- |
-- |
-- |
118,308 |
-- |
-- |
118,308 |
118,308 |
| Short
term investment |
-- |
-- |
-- |
-- |
37,954 |
-- |
-- |
37,954 |
37,954 |
| Advances,
deposits, |
|
| prepayments & |
|
|
| other
receivables |
31,559 |
-- |
-- |
31,559 |
46,904 |
-- |
-- |
46,905 |
78,463 |
| Cash
bank balances |
15,953 |
-- |
-- |
15,953 |
4,789 |
-- |
-- |
4,789 |
20,742 |
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
47,512 |
-- |
-- |
47,512 |
207,955 |
-- |
-- |
207,955 |
255,467 |
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
| Financial
Liabilities: |
|
| Long
term loans from bank |
87,463 |
-- |
123,429 |
210,892 |
-- |
-- |
-- |
-- |
210,892 |
| Short term loans |
|
221,238 |
-- |
-- |
221,238 |
4,581 |
-- |
-- |
4,581 |
225,819 |
| Creditors,
accrued & other liabilities |
250,151 |
-- |
-- |
250,151 |
95,138 |
-- |
-- |
95,138 |
345,289 |
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
558,852 |
-- |
123,429 |
682,281 |
99,719 |
-- |
-- |
99,719 |
782,000 |
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
| Effective
interest rates for the monetary financial liabilities are mentioned in the
respective rates to the |
|
| accounts. |
|
|
| Concentration
of credit risk |
|
| Credit
risk represents the accounting loss that would be recognized at the reporting
date if counter parties |
|
| failed
completely to perform as contracted. |
|
|
| Fair
value of financial instruments |
|
| The
carrying value of all financial assets and liabilities reflected in the
financial statements approximate their |
|
| fair values. |
|
|
| 29. GENERAL |
|
|
| 1.
Balance confirmation letters were circulated to debtors and creditors for
confirmation direct to the |
|
| auditors,
only a few replies were received. |
|
|
| 2.
Figures have been rounded off to the nearest of thousand rupees and the
figures of previous year have |
|
| been
reclassified wherever necessary, for the purpose of comparison. |
|
|
|
M. Azam Saigol |
|
M. Naseem Saigol |
|
|
Director |
|
Chairman/Chief Executive |
|
|
|
| PATTERN
OF HOLDING OF SHARES |
|
| HELD
BY THE SHAREHOLDERS AS AT JUNE 30, 2000 |
|
|
| NUMBER OF |
|
SHAREHOLDING |
|
|
TOTAL |
|
| SHARE |
FROM |
|
TO |
|
SHARES HELD |
|
| HOLDERS |
|
|
| 485 |
1 |
-- |
100 |
Shares |
14,934 |
|
|
| 208 |
101 |
-- |
500 |
Shares |
58,575 |
|
|
| 79 |
501 |
-- |
1,000 |
Shares |
70,365 |
|
|
| 95 |
1001 |
-- |
5,000 |
Shares |
258,359 |
|
|
| 30 |
5,001 |
-- |
10,000 |
Shares |
228,767 |
|
|
| 10 |
10,001 |
-- |
15,000 |
Shares |
123,718 |
|
|
| 1 |
15,001 |
-- |
20,000 |
Shares |
20,000 |
|
|
| 4 |
20,001 |
-- |
25,000 |
Shares |
87,970 |
|
|
| 3 |
25,007 |
-- |
30,000 |
Shares |
84,370 |
|
|
| 1 |
35,001 |
-- |
40,000 |
Shares |
38,524 |
|
|
| 2 |
40,001 |
-- |
45,000 |
Shares |
84,600 |
|
|
| 1 |
50,001 |
-- |
55,000 |
Shares |
52,221 |
|
|
| 1 |
80,001 |
-- |
85,000 |
Shares |
80,275 |
|
|
| 1 |
90,001 |
-- |
95,000 |
Shares |
92,000 |
|
|
| 1 |
135,001 |
-- |
140,000 |
Shares |
137,700 |
|
|
| 1 |
180,001 |
-- |
785,000 |
Shares |
180,592 |
|
|
| 1 |
235,001 |
-- |
240,000 |
Shares |
237,300 |
|
|
| 1 |
255,001 |
-- |
260,000 |
Shares |
257,500 |
|
|
| 1 |
320,001 |
-- |
325,000 |
Shares |
325,000 |
|
|
| 1 |
480,001 |
-- |
485,000 |
Shares |
483,000 |
|
|
| 1 |
2,930,001 |
-- |
2,935,000 |
Shares |
2,934,230 |
|
|
| ------------------ |
|
------------------ |
|
|
| 928 |
|
5,850,000 |
|
|
| ========== |
|
========== |
|
|
|
| Note:
The slabs not applicable have not been shown. |
|
|
| Categories
of Shareholders |
|
Number |
Shares Held |
Percentage |
|
|
| Individuals |
|
871 |
1,745,602 |
29.84 |
|
| Investment
Companies |
|
2 |
3,670 |
0.06 |
|
| Insurance
Companies |
|
3 |
18,098 |
0.31 |
|
| Joint
Stock Companies |
|
26 |
3,151,958 |
53.88 |
|
| Financial
Institutions |
|
9 |
559,706 |
9.57 |
|
| Foreign
Companies |
|
14 |
364,466 |
6.23 |
|
| Others |
|
3 |
6500 |
0.11 |
|
|
|
------------------ |
------------------ |
------------------ |
|
|
|
928 |
5,850,000 |
100.00 |
|
|
========== |
========== |
========== |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
