| Reliance Weaving Mills Limited |
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| Annual
Report 2000 |
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| COMPANY'S
QUALITY POLICY |
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| *
All of our priorities, actions and products must be recognized as an
expression of |
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| unique quality. |
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| *
We are dedicated to produce fabrics and yarn of the best export quality to
meet the |
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| requirements
and expectations of our customers. |
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| *
We strive for continuous improvements in day to day quality work, organize
the |
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| training
and necessary feed back on our performance. |
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| CONTENTS |
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| Company
Information |
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| Company Profile |
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| Financial
Highlights |
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| Notice
of Annual General Meeting |
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| Director's
Report to the Members |
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| Auditors'
Report to the Members |
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| Balance Sheet |
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| Profit and Loss Account |
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| Cash
Flow Statement |
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| Statement
of Changes in Equity |
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| Notes
to the Accounts |
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| Pattern of Shareholdings |
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| COMPANY
INFORMATION |
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| BOARD
OF DIRECTORS |
Mr. Fawad Ahmed Sheikh |
(Chairman) |
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Mr. Fazal Ahmed Sheikh |
(Chief Executive) |
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|
Mr. Faisal Ahmed Sheikh |
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|
Mrs. Ambreen Fawad |
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|
Mrs. Fatima Fazal |
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|
Mrs. Fadia Kashif |
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|
Syed Hussain Aga Naqvi |
(Nominee NIT) |
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| COMPANY
SECRETARY |
Mr. Amanullah |
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| FINANCIAL
CONTROLLER |
Mr. Iftikhar Mehmood |
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| AUDITORS |
|
M/s. M. Yousuf Adil
Saleem & Co., |
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Chartered Accountants, |
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6-Commercial Plaza, |
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|
Opp. Civil Hospital
Abdali Road, Multan. |
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| SHARE
REGISTRARS |
M/s. Your Secretary, |
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|
1020, 10th Floor, Uni
Plaza, |
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|
I.I. Chundrigar Road,
Karachi. |
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| BANKERS |
|
United Bank Limited |
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|
Allied Bank of Pakistan
Ltd. |
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|
|
Habib Bank Limited. |
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|
Muslim Commercial Bank
Limited |
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|
Emirates Bank
International Ltd. |
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| REGISTERED
OFFICE |
C-I, 1st Floor, Hassan
Arcade, |
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|
Multan Cantt. (Punjab)
Pakistan |
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|
Telephones : (061)
512031-512032 |
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Fax: (061) 511677, 584288 |
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E.mail:
fatmagrp@mul.paknet.com.pk |
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|
fatmagrp@brain.net.pk |
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| MILLS:
Weaving Unit |
Fazal Pur, Khanewal Road, |
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|
Multan. (Punjab)
Pakistan. |
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Telephone: 0303-7963399 |
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Fax: (061) 515154 |
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| Spinning Unit |
|
Mukhtarabad, Chak Beli
Khan Road, |
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|
Rawat (Rawalpindi) |
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Telephone: (05777)
611579-81 |
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Fax: (05777) 611092 |
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| COMPANY
PROFILE |
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| The
Company is limited by shares incorporated in Pakistan on April 07,1990 under
the Companies Ordinance, |
|
| 1984
and quoted at Stock Exchanges in Pakistan. Principal business of the Company
is manufacture and |
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| sale
of yarn and cloth. |
|
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| WEAVING
UNIT |
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| It
is located at Fazalpur, Khanewal Road, Multan and commenced its commercial
production on |
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| May
01, 1993 with 96 Tsudakoma air jet weaving machines from Japan along with
modem auxiliary machinery |
|
| to
produce high quality cloth for export markets. Further expansion saw the
installation of an additional 20 |
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| Tsudakoma
air jet weaving machines from Japan in 1999 coupled with yarn doubling and
twisting machines |
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| to
produce value added fabrics. |
|
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| In
addition to above a Captive Power Plant consisting of 2.5 MW capacity was
installed during the year 1999 |
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| to
supply uninterrupted electricity to reduce production losses. |
|
|
| Now,
the expansion project at a cost of about half billion rupees, comprising 108
Tsudakoma air jet weaving |
|
| machines
from Japan along with modem auxiliary machinery to produce high quality cloth
for export markets |
|
| is
at advance stage of its implementation. Back process machinery has already
been installed at site. The |
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| project
is scheduled for its commercial production from October, 2001. |
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| SPINNING
UNIT |
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| It
is located at Mukhtarabad, Rawat, District Rawalpindi in the province of
Punjab and commenced its |
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| commercial
production on October 01, 1999 with 14,400 spindles and a very good
combination of European |
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| and
Japanese machinery with allied accessories to produce high quality of yam for
in-house consumption (to |
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| produce
export quality cloth) and export/local markets. |
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| The
Company is planning to increase the number of spindles to about 20,000 by the
end of year 2001 and |
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| also
starting production of DUPONT LYCRA yarn shortly, which will assist the
Company in producing higher |
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| value
added products and development of new products. |
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| Today,
Reliance Weaving Mills Limited is one of the most modern and technologically
advanced greige |
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| weaving
plant in the world. |
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| FINANCIAL
HIGHLIGHTS |
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| (1993 - 2000) |
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|
(Rs. 000) |
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| PARTICULARS |
2000 |
1999 |
1998 |
1997 |
1996 |
1995 |
1994 |
1993 |
|
|
|
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| FOR
THE YEAR |
|
| Net Sales |
|
1,306,888 |
800,382 |
723,823 |
727,163 |
667,242 |
448,905 |
402,426 |
123,415 |
|
| Gross Profit |
|
321,601 |
129,202 |
144,896 |
149,347 |
104,927 |
47,275 |
59,808 |
16,134 |
|
| Profit/(Loss) |
|
154,176 |
40,834 |
66,955 |
60,684 |
33,321 |
(9,826) |
7,939 |
(2,129) |
|
|
|
|
|
|
| FINANCIAL
POSITION |
|
| Current Assets |
|
652,149 |
526,659 |
450,702 |
374,770 |
234,379 |
135,480 |
90,468 |
71,291 |
|
| Current
Liabilities |
|
|
| Cur.
portion of L.T. Loans |
62,439 |
75,879 |
26,412 |
26,411 |
29,031 |
26,412 |
17,325 |
18,797 |
|
| Others |
|
615,851 |
522,828 |
317,938 |
317,938 |
195,574 |
115,721 |
61,036 |
52,082 |
|
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|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
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|
678,289 |
598,707 |
344,350 |
344,349 |
224,605 |
142,133 |
78,361 |
70,879 |
|
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| OPERATING
FIXED ASSETS |
|
| Operating
Fixed Assets |
585,592 |
338,823 |
191,622 |
195,244 |
210,819 |
231,175 |
151,386 |
272,074 |
|
| Capital
Work in Progress |
67,436 |
295,933 |
74,043 |
28,684 |
3,077 |
347 |
109 |
-- |
|
| Adv.
For Purchase of Assets |
-- |
-- |
60,000 |
1,013 |
493 |
1,028 |
1,051 |
230 |
|
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|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
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|
653,028 |
634,756 |
325,665 |
224,941 |
241,389 |
323,550 |
252,546 |
272,304 |
|
|
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|
| LONG
TERM LOANS & CAPITAL |
|
| EXPENDITURE
PAYABLE |
314,104 |
341,891 |
115,300 |
69,978 |
72,569 |
94,877 |
134,099 |
149,026 |
|
|
|
|
| SHARE
HOLDERS EQUITY |
313,434 |
227,884 |
233,086 |
169,741 |
122,751 |
105,532 |
115,360 |
107,421 |
|
|
|
|
| PER
SHARE (RS.) |
|
| Earning |
|
13.06 |
3.13 |
5.78 |
5.54 |
3.04 |
(0.90) |
0.72 |
(0.19) |
|
| Break-up value |
|
28.61 |
20.80 |
21.28 |
15.49 |
11.20 |
9.63 |
10.53 |
9.80 |
|
| Cash Dividend |
|
52.50% |
12.50% |
23.50% |
10.00% |
-- |
-- |
-- |
-- |
|
| Right Issue |
|
25% |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
|
| Bonus Shares |
|
20% |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
|
|
|
|
|
| RATIOS |
|
|
| Current Ratio |
|
51:49 |
47:53 |
50:50 |
48:52 |
49:51 |
51:49 |
46:54 |
50:50 |
|
| Debt
Equity Ratio |
46:54 |
60:40 |
38:62 |
42:58 |
51:49 |
53:47 |
57:43 |
61:39 |
|
| Net
Profit/(Loss) to Sales |
10.95% |
4.28% |
8.75% |
8.35% |
4.99% |
(2.19%) |
1.97% |
(1.72%) |
|
| Return
on Assets |
11.81% |
3.50% |
8.42% |
9.93% |
7.42% |
(2.66%) |
2.30% |
(0.62%) |
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========== |
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| NOTICE
OF ANNUAL GENERAL MEETING |
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| Notice
is hereby given that 11th Annual General Meeting of the members of
"RELIANCE WEAVING MILLS |
|
| LIMITED"
will be held on Wednesday, March 28, 2001 at 11:00 A.M. at its Registered
Office, C-1, First |
|
| Floor,
Hassan Arcade, Multan Cantt. to transact the following business:- |
|
|
| Ordinary
Business: |
|
|
|
| 1.
To confirm the minutes of the last Extra Ordinary General Meeting held on
10.11.2000. |
|
|
| 2.
To receive, and adopt the Audited Accounts of the Company for the year ended |
|
| September
30, 2000 together with Auditors and Directors Reports thereon. |
|
|
| 3.
To consider and approve payment of cash dividend of Rs. 57.514 Million i.e.
Rs. 5.25 per |
|
| share
(52.5%) on the existing paid up capital of 10,955,000 ordinary shares of the
company. |
|
| Since
company has proposed to issue 2,738,750 Right Shares ranking parri passu with
the |
|
| existing
shareholders, thus the dividend of Rs. 57.514 Million shall be paid @ Rs.
4.20 per |
|
| share
to all eligible shareholders including holders of Right Shares, as
recommended by the |
|
| Board
of Directors. |
|
|
| 4.
To consider & approve issue of 20% Bonus Shares to all the shareholders
including holder |
|
| of
Right Shares as recommended by the Board of Directors. |
|
|
| 5.
To appoint the auditors for the year ending September 30, 2001 and to fix
their remuneration. |
|
| The
present Auditors M/s. M. Yousuf Adil Saleem & Co., Chartered Accountants,
being |
|
| eligible
for appointment, have offered themselves for reappointment. |
|
|
| 6.
To consider any other business with the permission of the Chairman. |
|
|
| Special
Business: |
|
|
| 1.
To consider and pass the following Special Resolution. |
|
|
| i)
Resolved that Authorized Capital of the Company be raised from Rs. 200
Million to Rs. |
|
| 400
Million divided into 40,000,000 ordinary shares of Rs. 10/- each and existing
Clause |
|
| V
of the Memorandum and Clause 3 of the Articles of Association of the Company
be |
|
| substituted
as under:- |
|
|
|
|
| ii)
Clause V of the Memorandum of Association |
|
| The
Capital of the Company is Rs. 400 Million (Rupees Four Hundred Million)
divided |
|
| into
40,000,000/- ordinary shares of Rs. 10/- each. The Company shall have power
to |
|
| increase,
reduce or re-organize the capital of the Company and divide shares in the |
|
| capital
for the time being into several classes in accordance with the provisions of
the |
|
| Companies
Ordinance, 1984. |
|
|
| iii)
Article Clause 3 of the Articles of Association |
|
|
|
| The
Capital of the Company is Rs. 400 Million (Rupees Four Hundred Million)
divided |
|
| into
40,000,000/- ordinary shares of Rs. 10/- each. The Company shall have power
to |
|
| increase,
reduce or re-organize the capital of the Company and divide shares in the |
|
| capital
for the time being into several classes in accordance with the provisions of
the |
|
| Companies
Ordinance, 1984. |
|
|
|
|
|
| 2.
To consider and pass the following Special Resolutions with or without
modification: |
|
|
|
|
| i)
Resolved to alter/delete Sub Clause 1 of Clause III of the Memorandum of
Association |
|
| of
the Company and to substitute with the following Sub Clause 1:- |
|
|
|
|
|
| "To
carry on the business of Textile Spinning Mills, Textile Weaving Mills,
Textile Finishing |
|
| &
Printing Mills, including Sizing, Bleaching, Dyeing, Mercerizing &
Printing, Textile |
|
|
| Manufacturers,
Cotton Ginning Factories or Presses for pressing bales and any other |
|
|
| similar
concern and to erect and install all kinds of Machinery as required for the |
|
|
| Comprehensive/Composite
Textile Spinning Mills, Textile Weaving Mills, Textile Finishing |
|
| Mills,
including Sizing, Bleaching, Dyeing, Mercerizing & Printing and Ginning
Factories |
|
| and
to establish, run, work, maintain and control Textile Spinning Mills, Textile
Weaving |
|
| Mills,
Textile Finishing & Printing, Ginning Factories and buy raw material for
the said |
|
| projects
and to install & establish Power Generating Plants for supplying
Power/Energy |
|
| to
the Industrial Projects of the Company. |
|
|
|
| ii)
Resolved that Clause No. 7, 11 & 12 of the Memorandum of the Company be
reviewed, |
|
| changed/amended
to conform with requirement of Companies Ordinance, 1984. |
|
|
|
|
| iii)
Resolved that the following clauses of the Article of Association of the
Company be |
|
| reviewed
changed/amended to conform with the requirement of the Companies |
|
| Ordinance, 1984. |
|
|
|
|
|
|
| Clause
Nos.
2,4,5,7,8,10,13,14,15,16,17,18,19,20,21,23,24,32,35,36,37,38,41,42,43,44, |
|
| 49,50,54,55,57,60,61,62,63,66,68,69,71,75,76,77,80,81,84,85,89,90,91,92. |
|
|
| iv)
Resolved that Mr. Fazal Ahmed Sheikh, Chief Executive of the Company and/or
Mr. |
|
| Amanullah,
Company Secretary of the Company are hereby authorized to comply with |
|
| the
formalities under the Companies Ordinance, 1984. |
|
|
| v)
Resolved that in case of any mistake, printing error, omission or any other
discrepancy |
|
| is
pointed out by the Deputy Registrar of Companies, Multan or the Securities
& Exchange |
|
| Commission
of Pakistan, Government of Pakistan, Islamabad, in the new set of the |
|
| Memorandum
and Article of Association of the Company Mr. Fazal Ahmed Sheikh, Chief |
|
| Executive
of the Company and/or Mr. Amanullah, Company Secretary of the Company |
|
| are
hereby authorized to make necessary corrections and to rectify the defect. |
|
|
|
|
BY ORDER OF THE BOARD OF DIRECTORS |
|
|
|
|
|
|
| Dated:
March 1, 2001 |
|
AMANULLAH |
|
| Place: Multan. |
|
|
(Company Secretary) |
|
|
| NOTES: |
|
|
| BOOK
CLOSURE |
|
| The
share Transfer Books of the company will remain closed from March 18th 2001
to March 28th 2001 |
|
| (both
days inclusive): |
|
|
| 1.
The Cash Dividend will be paid to the members, whose names will appear in the
register of the |
|
| member
as at the close of business on March 18, 2001. Transfers received in order by
our Share |
|
| Registrars,
M/s. Your Secretary, 1020, 10th Floor, Uni Plaza, I.I. Chundrigar Road,
Karachi upto |
|
| March
17th, 2001 maximum by 01 P.M. will be taken in the books. |
|
|
| 2.
A member eligible to attend and Vote at the Meeting may appoint another
member as his/her proxy to attend, |
|
| and
vote instead of him/her. Proxies in order to be effective must be received by
the Company at the Registered |
|
| Office
not later than 48 hours before the time for holding the meeting in the
working hours. |
|
|
| 3.
Any individual beneficial owner of C.D.C. entitled to attend and vote at this
meeting must bring his/her |
|
| Identity
and in case of Proxy must enclose an attested copy or his/her National
Identity Card (N.I.C) or |
|
| Passport.
Representatives of corporate members should bring the usual documents
required for such |
|
| purposes. |
|
|
| 4.
Members are requested to notify any changes in their address immediately. |
|
|
| 5.
Statement of material facts U/S 160 of the Companies Ordinance, 1984 has been
annexed to the |
|
| Notes
of Meeting. |
|
|
| Statement
U/S 160 of the Companies Ordinance, 1984. |
|
| The
Company is interested to install complete Textile Finishing plant including
Bleaching, Dyeing, Mercerizing, |
|
| Calendering,
Folding & Printing Plant in the existing Weaving Unit at Multan to make
it a complete composite |
|
| Unit.
For this purposes additional working capital is also required due to addition
of Finishing & Printing |
|
| plants.
The existing Authorized capital of Rs. 200 Million is required to be enhanced
to Rs. 400 Million. |
|
|
|
| DIRECTORS'
REPORT TO THE MEMBERS |
|
|
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 2000 |
|
| "IN
THE NAME OF ALLAH, THE MOST BENEFICENT, THE MOST MERCIFUL" |
|
|
| ASSALAM-O-ALLAIKUM
! |
|
| The
Directors of your Company are pleased to welcome you to the 11th Annual
General Meeting of the |
|
| Company
to consider the Audited Accounts for the year ended September 30, 2000
together with the Directors |
|
| and
Auditors Report thereon. |
|
|
| OPERATING
AND FINANCIAL RESULTS |
|
| Alhamdolilah,
with the blessings of Almighty Allah, management of your company has been
able to achieve |
|
| excellent
operating results. During the year under review your company's total sales
are amounting to |
|
| Rs.
1.307 billion as compared to last year's figure of Rs. 0.800 billion and
earned an after tax profit of Rs. |
|
| 143.064
million as compared to Rs. 34.235 million of the last year. Financial
performance of your company |
|
| for
the year under review has been encouraging despite the country's depressed
economic conditions. The |
|
| salient
financial features for the year under review are produced below: |
|
|
|
|
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
|
|
(000) |
(000) |
|
|
| Sales
of Cloth and Yarn |
|
| Export |
|
|
1,188,486 |
737,176 |
|
| Local |
|
|
118,402 |
63,206 |
|
|
|
------------------ |
------------------ |
|
|
|
1,306,888 |
800,382 |
|
|
| Gross Profit |
|
|
321,601 |
129,202 |
|
| Profit after tax |
|
|
143,064 |
34,235 |
|
| Unappropriated
profit brought forward |
|
18,334 |
25,536 |
|
| Profit
available for appropriation |
|
|
161,399 |
57,772 |
|
|
|
|
|
| Appropriations: |
|
|
|
| Proposed
Cash Dividend 52.50% (1998-99 @ 12.50%) |
57,514 |
13,694 |
|
| Prior
Year Dividend (1997-98 @ 23.50%) |
|
0 |
25,744 |
|
| Reserve
for Bonus Share 20% |
|
27,388 |
0 |
|
|
|
------------------ |
------------------ |
|
|
|
84,902 |
39,438 |
|
|
------------------ |
------------------ |
|
| Un
appropriated profit carried forward |
|
76,497 |
18,334 |
|
|
|
|
========== |
========== |
|
|
|
|
| Gross profit rate |
|
|
24.61% |
16.14% |
|
| Net profit rate |
|
|
10.95% |
4.28% |
|
| Current ratio |
|
|
51:49 |
47:53 |
|
| Debt/equity
ratio |
|
|
46:54 |
60:40 |
|
| Dividend
pays out ratio |
|
|
52.50% |
12.50% |
|
| Earnings
per share |
|
|
Rs. 13.06 |
Rs. 3.13 |
|
|
|
|
| As
per annual report for the year ended September 30, 1999, the directors found
a number of positive |
|
| factors,
on which they had constructed optimistic scenario for the near term. The
company has been |
|
| successful
in procuring good quality and quantity of cotton at a reasonable price, which
has assisted |
|
| the
company in achieving better results. |
|
|
| The
other reasons for increase in profit for the year are extended capacity,
backup facility of spinning |
|
| unit,
self power generation, improved productivity and quality, and of course,
professional management. |
|
|
| Sales
tax refund and export rebate claims remain pending for several months due to
cumbersome |
|
| procedures.
Blockage of productive funds creat liquidity problems due to which business
performance |
|
| is
badly effected. |
|
|
| PROPOSED
ISSUANCE OF RIGHT SHARES |
|
| The
company has proposed 25% right shares worth Rs. 27.387 million as Ordinary
Share of Rs. 10 |
|
| each
at a premium of Rs. 15 per share to meet the cost resulting from expansion of
weaving project |
|
| and
to meet the increased working capital requirement. The proposed issue would
contribute towards |
|
| the
timely completion of the project and, therefore, will avoid further cost
escalation. The revenue will |
|
| increase
considerably due to increased manufacturing capacity, increasing the profit
capability and |
|
| resultantly
enhancing the expected returns to the share holders. Furthermore, the issue
will also reduce |
|
| the
mark up charges and provide necessary funds for working capital, enabling the
company to comply |
|
| with
the prudential regulations of State Bank of Pakistan. |
|
|
| EXPANSION
PLAN |
|
| WEAVING |
|
| The
expansion project at a cost of about half billion rupees, comprising 108
air-jet looms with complete |
|
| back
process is at advanced stage of its implementation. Back Process machinery
has already been |
|
| installed
at site. The project is scheduled for its commercial production from October
2001. |
|
|
| SPINNING |
|
| The
Company is planning to increase the capacity of its spinning unit of 14,400
spindles to about |
|
| 20,000
spindles by the end of year 2001 and also starting production of DUPONT LYCRA
yarn shortly |
|
| which
will assist the Company in producing higher value added products and
development of new |
|
| products. |
|
|
| INFORMATION
TECHNOLOGY |
|
| Your
management is acutely aware that unless policies and procedures are
rigorously enforced, reduction |
|
| in
costs, improvements in productivity and heightened customer satisfaction will
not be fully realised. |
|
| Recognising
this fact, the Company has requested to various I.T. Companies to review for
upgrading |
|
| all
of its management systems and also integrate financial, cost and management
accounting, production, |
|
| marketing
and human resource functions. During this up-gradation process over next two
years, we |
|
| shall
be progressively moving from a traditional paper based management system to
an electronic |
|
| system.
Through an Extranet, customers will be able to access information through an
on-line facility. |
|
| Information
such as order status, shipping schedules, quality and inspection records will
be available. |
|
| Our
aim is to improve the transfer of information conveniently, quickly and cost
effectively to customers |
|
| working
in different time zones. |
|
|
| DIVIDEND
AND SHAREHOLDERS |
|
| Cash
dividend of Rs. 57,514 million i.e. Rs. 5.25 per share (52.50%) on existing
share capital i.e. |
|
| 10,955,000
ordinary shares or Rs. 4.20 per shares i.e. 42% including subscribers to the
Right Issue |
|
| of
2,738,750 shares, and bonus shares @20% have been recommended by the Board of
Directors to |
|
| be
issued to existing shareholders and the subscribers of right shares. We thank
our shareholders for |
|
| their
confidence in our enterprise and assure them that we remain committed to do
our best to ensure |
|
| best
utilization of their investment in the Company for growth in future. May
Allah bless us in our |
|
| efforts, A'meen! |
|
|
| FUTURE
OUTLOOK |
|
| The
increase in cotton price for the year 2000-2001 season, mark-up rates by SBP
on export refinance |
|
| and
withdrawal of export refinance facility on yarn is not a good sign for
textile industry and will lead to |
|
| increase
in overall cost, which shall have adverse impact on the profitability for the
year 2001. However, |
|
| management
is trying to achieve better prices for its products and with increased
production capacity |
|
| is
striving to minimise operating costs. |
|
|
| The
management of your company is fully aware of the tough competition and is
making all possible |
|
| efforts
to absorb the effects by adopting innovative sales strategies i.e. break
through in the US and |
|
| European
markets and at the same time controlling cost of production and development
of the new |
|
| products.
The company is also exploring possibilities of further value addition in
existing products. |
|
|
| Since,
the Company is already enjoying good reputation among its customers and
therefore installation |
|
| of
the new plant and equipment will help the company to achieve the better
quality level and thereby |
|
| getting
better price level in international markets. Benefits of the expansion will
of course, be reflected |
|
| in
financial results for the coming years. |
|
|
| Textile
Vision 2005 will be instrumental in developing long term policies to
reposition Pakistan's textile |
|
| industry
in an era when there will be no quota regime. |
|
|
| ISO
9002/14001 CERTIFICATION |
|
| Al-hamdolillah!
Your Company reached another landmark with the ISO-9002 certification of its
Spinning |
|
| Unit.
The certification of Weaving Unit had already been received last year. Now,
all our production |
|
| areas
are ISO-9002 certified. This will provide an extra assurance to the customers
with respect to |
|
| best
quality of our products in the market place. We have also started work to
acquire ISO-14001 |
|
| certification
which depicts management's commitment to implement the environmental
management |
|
| system
in the organisation, which is need of the day. |
|
|
| INDUCTION
IN TO CENTRAL DEPOSITORY SYSTEM |
|
| Central
Depository Company of Pakistan Limited (C.D.C.) declared shares of the
Company "eligible |
|
| security"
with effect from December 23, 1998. Shares of the Company have been inducted
into Central |
|
| Depository
System with effect from 17.02.2001. |
|
|
| AUDITORS |
|
| The
present auditors M/s. M. Yousuf Adil Saleem & Co., Chartered Accountants,
retire and being eligible, |
|
| offer
them self for re-appointment. |
|
|
| PATTERN
OF SHARE HOLDINGS |
|
| The
pattern of share holdings as required by Section 236 of the Companies
Ordinance, 1984 is attached |
|
| to this report. |
|
|
| EMPLOYEES
RELATIONS AND MANAGEMENT DEVELOPMENT |
|
| Your
company places great importance on the employees and considers them members
of FATIMA |
|
| GROUP
Family. We continue to invest in the professional development and improved
skills of our |
|
| human
resources, since we believe that by investing in our people, we invest in our
future. Company's |
|
| Human
Resource Policy, has always been based on the underlying values of fairness,
merit, equal |
|
| opportunity
and social responsibility. Continuous efforts are made to enhance the skills
of employees, |
|
| by
way of on job training as well as outside courses, seminars and workshops,
performance appraisal, |
|
| health
and safety and industrial relations. Complying with our human resource
policies, we do not |
|
| employ
any child labour. |
|
|
| Recognising
the importance of HRM, your company is considering to take number of measures
to |
|
| develop
its employees to meet the challenges of today's competitive corporate world.
The employees |
|
| and
management have jointly made dedicated efforts to keep up with high standards
of productivity |
|
| and
their relations by Allah's grace, continued to remain in total harmony. Your
company is fortunate in |
|
| having
highly motivated, skilled and committed colleagues. The Board places on
record its deep appreciation |
|
| to
all of them for their hard work and dedication to achieve these results
despite adverse business |
|
| conditions. |
|
|
| A
NOTE OF GRATITUDE TO CUSTOMERS AND BANKERS |
|
| The
focal point of our business strategies is the customer satisfaction. We
believe in developing long |
|
| term
business relations with our customers at all levels, based on Company's
policy on business |
|
| principles.
We work in close co-ordination with our valued customers to remain aware of
their changing |
|
| needs
and to move ahead of their demand. We are thankful for their continued
support and confidence |
|
| in
products of "Reliance". The directors also wish to place on record
their appreciation for the patronage |
|
| and
confidence placed in the company by the financial institutions and commercial
banks. |
|
|
|
|
ON BEHALF OF THE BOARD |
|
|
|
|
|
|
| Dated:
January 31, 2001 |
|
FAZAL AHMED SHEIKH |
|
| Place: Multan. |
|
|
(Chief Executive) |
|
|
|
|
| AUDITOR'S
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of RELIANCE WEAVING MILLS LIMITED as
at September 30, |
|
| 2000
and the related profit and loss account, statement of changes in equity and
cash flow statement, 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 statements in conformity with the approved
accounting standards and |
|
| the
requirements of 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 mis statement. 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 account 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 the 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 and profit and loss account together with the notes forming part
thereof, conform with |
|
| approved
accounting standards as applicable in Pakistan, and except for the effects of
contents of |
|
| note
2.2, these 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 profit, changes in equity and its cash flows for the year
then ended; and |
|
|
| d.
in our opinion, zakat deductible at source under the Zakat and Ushr
Ordinance, 1980 (XVIII of 1980), |
|
| was
deducted by the Company and deposited in the Central Zakat Fund established
under Section |
|
| 7
of that Ordinance. |
|
|
|
|
|
|
| Place: Multan |
|
|
M. YOUSUF ADIL SALEEM & CO., |
|
| Date:
January 31, 2001 |
|
(Chartered Accountants) |
|
|
|
| BALANCE
SHEET AS AT SEPTEMBER 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
Note |
Rupees |
Rupees |
|
|
| SHARE
CAPITAL AND RESERVES |
|
| Authorised
capital |
|
| 20,000,000
(1999: 11,000,000) Ordinary shares of |
|
|
| Rs. 10/- each. |
|
|
200,000,000 |
110,000,000 |
|
|
|
========== |
========== |
|
|
| Issued,
subscribed and paid up capital |
|
| 10,955,000
Ordinary shares of Rs. 10/- each |
|
109,550,000 |
109,550,000 |
|
| fully
paid in cash |
|
|
|
| Reserve
for Bonus Shares |
|
|
27,387,500 |
-- |
|
| General Reserve |
|
|
100,000,000 |
100,000,000 |
|
| Unappropriated
profit |
|
|
76,496,986 |
18,333,800 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
313,434,486 |
227,883,800 |
|
| LONG
TERM LOANS |
|
4 |
314,103,910 |
313,835,852 |
|
|
|
|
|
|
| DEFERRED
LIABILITIES |
|
|
|
|
| Capital
expenditure payable |
|
5 |
-- |
28,055,000 |
|
|
|
|
|
| CURRENT
LIABILITIES |
|
| Short
term bank borrowings |
|
6 |
397,588,859 |
416,653,852 |
|
| Current
portion of long term liabilities |
7 |
62,438,535 |
75,878,957 |
|
| Creditors,
accrued and other liabilities |
8 |
147,648,360 |
79,647,663 |
|
| Provision
for taxation |
|
|
11,111,902 |
665,860 |
|
| Dividends |
|
9 |
59,501,735 |
25,860,339 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
678,289,391 |
598,706,671 |
|
| CONTINGENCIES
AND COMMITMENTS |
10 |
-- |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
1,305,827,787 |
1,168,481,323 |
|
|
========== |
========== |
|
|
| The
annexed notes from 1 to 34 form an integral part of these accounts. |
|
|
|
|
Sd/- |
|
|
|
FAZAL AHMED SHEIKH |
|
|
|
(Chief Executive) |
|
|
|
|
| FIXED
CAPITAL EXPENDITURE |
|
|
| Operating
fixed assets |
|
11 |
585,592,036 |
338,823,223 |
|
| Capital
work-in-progress |
|
12 |
67,435,944 |
295,932,598 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
653,027,980 |
634,755,821 |
|
|
| LONG
TERM DEPOSITS |
|
| AND
DEFERRED COST |
|
13 |
650,550 |
7,066,078 |
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Stores,
spares and loose tools |
|
14 |
19,641,030 |
15,465,167 |
|
| Stock-in-trade |
|
15 |
142,680,978 |
203,561,308 |
|
| Trade debtors |
|
16 |
320,084,928 |
205,261,800 |
|
| Loans
and advances |
|
17 |
38,241,279 |
9,254,724 |
|
| Deposits
and prepayments |
|
18 |
7,565,883 |
6,580,704 |
|
| Other
receivables |
|
19 |
12,738,742 |
19,459,241 |
|
| Cash
and bank balances |
|
20 |
111,196,417 |
67,076,480 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
652,149,257 |
526,659,424 |
|
|
------------------ |
------------------ |
|
|
|
1,305,827,787 |
1,168,481,323 |
|
|
========== |
========== |
|
|
|
|
Sd/- |
|
|
|
FAWAD AHMED SHEIKH |
|
|
|
(Director) |
|
|
|
| PROFIT
& LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
Note |
Rupees |
Rupees |
|
|
|
| SALES |
|
|
21 |
1,306,887,918 |
800,382,364 |
|
| COST
OF GOODS SOLD |
|
22 |
985,287,197 |
671,179,986 |
|
|
|
|
------------------ |
------------------ |
|
| GROSS
PROFIT |
|
|
321,600,721 |
129,202,378 |
|
| OPERATING
EXPENSES |
|
23 |
61,665,201 |
34,592,187 |
|
|
|
|
------------------ |
------------------ |
|
| OPERATING
PROFIT |
|
|
259,935,520 |
94,610,191 |
|
| OTHER
INCOME |
|
24 |
25,373 |
33,156 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
259,960,893 |
94,643,347 |
|
|
|
|
|
| OTHER
CHARGES |
|
|
|
| Financial |
|
25 |
91,007,268 |
49,573,286 |
|
| Workers'
profit participation fund |
|
|
8,132,759 |
2,173,971 |
|
| Amortization
of deferred cost |
|
|
6,644,528 |
2,062,400 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
105,784,555 |
53,809,657 |
|
|
|
|
------------------ |
------------------ |
|
| PROFIT
FOR THE YEAR BEFORE TAXATION |
|
154,176,338 |
40,833,690 |
|
| Taxation |
|
26 |
11,111,902 |
6,598,250 |
|
|
|
|
|
------------------ |
------------------ |
|
| PROFIT
FOR THE YEAR AFTER TAXATION |
|
143,064,436 |
34,235,440 |
|
| UNAPPROPRIATED
PROFIT BROUGHT FORWARD |
18,333,800 |
23,536,360 |
|
|
|
|
|
------------------ |
------------------ |
|
| PROFIT
AVAILABLE FOR APPROPRIATION |
|
161,398,236 |
57,771,800 |
|
|
| APPROPRIATION: |
|
| Prior
year dividend (1997-98) @ 23% |
|
-- |
25,744,250 |
|
| Proposed dividend @
52.5% (1998-99 @ 12.5%) |
30 |
57,513,750 |
13,693,750 |
|
| Reserve
for bonus shares |
|
|
27,387,500 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
84,901,250 |
39,438,000 |
|
|
|
|
------------------ |
------------------ |
|
| UNAPPROPRIATED
PROFIT CARRIED FORWARD |
76,496,986 |
18,333,800 |
|
|
|
|
========== |
========== |
|
| Earnings
per share |
|
27 |
13.06 |
3.13 |
|
|
|
|
|
========== |
========== |
|
|
| The
annexed notes from 1 to 34 form an integral part of these accounts. |
|
|
|
Sd/- |
|
Sd/- |
|
|
FAZAL AHMED SHEIKH |
|
FAWAD AHMED SHEIKH |
|
|
(Chief Executive) |
|
(Director) |
|
|
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
|
|
| A)
CASH FLOW FROM OPERATING ACTIVITIES |
|
| Profit
for the year |
|
|
154,176,338 |
40,833,690 |
|
| Depreciation |
|
|
64,029,363 |
32,679,234 |
|
| Provision
for gratuity |
|
|
-- |
(1,289,970) |
|
| Amortization
of deferred cost |
|
|
6,644,528 |
2,062,400 |
|
| Financial
charges |
|
|
91,007,268 |
91,297,464 |
|
|
|
|
------------------ |
------------------ |
|
| Operating
profit before working capital changes |
|
315,857,497 |
165,582,818 |
|
|
|
------------------ |
------------------ |
|
|
|
| Changes
in working capital |
|
| (Increase)/decrease
in current assets |
|
|
| Stores,
spares and loose tools |
|
|
(4,175,863) |
(7,257,195) |
|
| Stock in trade |
|
|
60,880,330 |
(133,428,034) |
|
| Trade debtors |
|
|
(114,823,128) |
21,081,130 |
|
| Loans
and advances |
|
|
(28,986,555) |
(3,138,971) |
|
| Deposits
and prepayments |
|
|
(985,179) |
2,635,968 |
|
| Other
receivables |
|
|
6,720,499 |
(5,180,440) |
|
|
------------------ |
------------------ |
|
| Increase/(Decrease)
in current liabilities |
|
| Creditors,
accrued and other liabilities |
|
65,847,157 |
27,082,289 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(15,522,740) |
(98,205,253) |
|
|
------------------ |
------------------ |
|
| Cash
generated from operations |
|
|
300,334,757 |
67,377,565 |
|
| Financial
charges paid |
|
|
(88,853,730) |
(79,935,113) |
|
| Gratuity paid |
|
|
-- |
(136,401) |
|
| Taxes paid |
|
|
(665,860) |
(8,476,787) |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash from/(used in) operating activities |
|
210,815,168 |
(21,170,736) |
|
|
========== |
========== |
|
|
| B)
CASH FROM INVESTING ACTIVITIES |
|
| Fixed
capital expenditure |
|
|
(82,301,520) |
(342,495,804) |
|
| Long
term deposits |
|
(229,000) |
9,448,058 |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash used in investing activities |
|
(82,530,520) |
(333,047,746) |
|
|
------------------ |
------------------ |
|
|
|
| C)
CASH FROM FINANCING ACTIVITIES |
|
| Repayment
of redeemable capital |
|
|
(500,000) |
(500,000) |
|
| Repayment
of long term loans |
|
|
(75,403,202) |
(28,827,846) |
|
| Proceeds
from long term loans |
|
|
34,675,838 |
306,111,840 |
|
| Increase/(Decrease)
in short term bank borrowings |
|
(19,064,993) |
42,612,694 |
|
| Payment
of dividend |
|
|
(23,872,354) |
(14,508,211) |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash used in financing activities |
|
(84,164,711) |
304,888,477 |
|
|
------------------ |
------------------ |
|
|
|
|
| Net
Increase/(decrease)in cash and |
|
|
|
| bank
balances (A+B+C) |
|
|
44,119,937 |
(49,330,005) |
|
|
|
|
|
|
| Cash
and bank balances at. the |
|
|
|
|
| beginning
of the year |
|
|
67,076,480 |
116,406,485 |
|
|
|
|
------------------ |
------------------ |
|
| Cash
and bank balances at the end of the year |
|
111,196,417 |
67,076,480 |
|
|
========== |
========== |
|
|
|
Sd/- |
|
Sd/- |
|
|
FAZAL AHMED SHEIKH |
|
FAWAD AHMED SHEIKH |
|
|
(Chief Executive) |
|
(Director) |
|
|
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 2000 |
|
|
|
|
Share |
Reserve |
General |
Un-appropriated |
Total |
|
|
|
Capital |
for |
Reserve |
Profit |
|
|
|
|
|
Bonus shares |
|
|
|
|
|
| Balance
as at October 01, 1998 |
109,550,000 |
-- |
100,000,000 |
23,536,360 |
233,086,360 |
|
| Profit
for the year |
|
|
| after taxation |
|
-- |
-- |
-- |
34,235,440 |
34,235,440 |
|
| Prior
year's dividend |
-- |
-- |
-- |
(25,744,250) |
(25,744,250) |
|
| Proposed
dividend |
-- |
-- |
-- |
(13,693,750) |
(13,693,750) |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Balance
as at September 30, 1999 |
109,550,000 |
-- |
100,000,000 |
18,333,800 |
227,883,800 |
|
|
|
========== |
========== |
========== |
========== |
========== |
|
|
|
|
| Balance
as at October 01, 1999 |
109,550,000 |
-- |
100,000,000 |
18,333,800 |
227,883,800 |
|
| Profit
for the year |
|
|
| after taxation |
|
-- |
-- |
-- |
143,064,436 |
143,064,436 |
|
| Reserve
for Bonus Shares |
-- |
27,387,500 |
-- |
(27,387,500) |
-- |
|
| Proposed
dividend |
-- |
-- |
-- |
(57,513,750) |
(57,513,750) |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Balance
as at September 30, 2000 |
109,550,000 |
27,387,500 |
100,000,000 |
76,496,986 |
313,434,486 |
|
|
|
========== |
========== |
========== |
========== |
========== |
|
|
|
Sd/- |
|
Sd/- |
|
|
FAZAL AHMED SHEIKH |
|
FAWAD AHMED SHEIKH |
|
|
(Chief Executive) |
|
(Director) |
|
|
|
| NOTES
TO THE ACCOUNTS |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 2000 |
|
|
| 1.
STATUS AND ACTIVITIES |
|
| The
Company is limited by shares incorporated in Pakistan on April 07, 1990 under
the Companies |
|
| Ordinance,
1984 and quoted at stock exchanges in Pakistan. Principal business of the
Company |
|
| is
manufacture and sale of yarn and cloth. The weaving unit is located at
Khanewal Road, Multan |
|
| and
spinning unit is located at Rawat, District Rawalpindi in the province of
Punjab. The spinning |
|
| unit
commenced its commercial production from October, 1999. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
|
|
|
|
| 2.1
Accounting convention |
|
|
|
| These
accounts have been prepared under "historical cost convention, modified
by |
|
| capitalization
of certain exchange differences referred in Note 2.4, and in accordance |
|
| with
International Accounting Standards as applicable in Pakistan. |
|
|
| 2.2
Staff retirement benefits |
|
| The
Company operates an Unfunded Gratuity Scheme covering all its employees and |
|
| gratuity
expense is being accounted for on payment basis. Had the gratuity expense |
|
| been
accounted for on accrual basis, the profit for the year would have been
decreased |
|
| by
Rs. 1,485,883 (1999: Rs. 652,577) and accumulated profit would have been
decreased |
|
| by
Rs. 3,564,831 (1999: Rs. 2,078,948). Further the Company's liabilities are
understated |
|
| as
at September 30, 2000. |
|
|
| 2.3 Taxation |
|
|
|
|
|
|
|
| Current |
|
|
|
| Provision
for current taxation is based on taxable income at the current tax rates
after |
|
| taking
into account tax rebates and tax credits available, if any. |
|
|
| Deferred |
|
|
|
| The
Company accounts for deferred taxation on material timing differences using
the |
|
| liability method. |
|
|
|
|
| 2.4
Operating assets |
|
|
|
| Operating
assets, except freehold land are stated at cost less accumulated
depreciation. |
|
| Freehold
land is stated at cost. |
|
|
|
|
|
|
| Depreciation
is charged to income applying the reducing balance method at the rates |
|
| specified
in operating assets note. |
|
|
|
|
|
| Exchange
fluctuation in respect of foreign currency loans obtained for acquisition of |
|
| operating
assets are incorporated in the cost of the relevant assets. |
|
|
| Depreciation
on additions during the year is .charged to income on the basis of whole |
|
| year,
however depreciation for proportionate period of use is charged on major
project |
|
| cost
capitalized during the year. No depreciation is charged on deletions during
the year. |
|
|
| Maintenance
and normal repairs are charged to income as and when incurred. Major |
|
| renewals
and improvements are capitalised. |
|
|
|
|
| Gains
and losses on disposal of assets are included in current income. |
|
|
| 2.5
Capital work in progress |
|
| All
cost/expenditure connected with specific assets are collected under this
head. These |
|
| are
transferred to specific assets when assets are available for use. |
|
|
| 2.6
Deferred Costs |
|
| These
are amortised over a maximum period of five years from the year of deferment. |
|
|
|
| 2.7
Stores, spares and loose tools |
|
| These
are valued at moving average cost. |
|
|
| 2.8
Stock in trade |
|
| These
are valued at lower of cost and net realizable value applying the following
basis: |
|
|
| Raw material |
|
Weighted average cost |
|
| Work in process |
|
Manufacturing cost |
|
| Finished goods |
|
Manufacturing cost |
|
| Waste |
|
Net realisable value |
|
|
| 2.9
Trade debtors |
|
|
|
| Known
bad debts are written off and specific provisions are made for debts
considered |
|
| doubtful. |
|
|
|
|
| 2.10
Foreign Currency Translation |
|
| Assets
and liabilities in foreign currencies are translated into Pak Rupees at the
rates |
|
| of
exchange ruling on the balance sheet date, except those covered under forward |
|
| exchange
contract and exchange risk cover scheme which are converted at the cover |
|
| rate.
Foreign currency translation are translated into Pak Rupees at the rates of
exchange |
|
| ruling
at the date of transaction except those covered by forward contracts which
are |
|
| converted
at contracted rates. Exchange differences except as referred in note 2.4 are |
|
| included
in current income. |
|
|
| 2.11
Revenue recognition |
|
|
|
| Revenue
is recognized on dispatch of goods to customers. |
|
|
|
|
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
|
| 3.
REDEEMABLE CAPITAL |
|
| Under
mark-up arrangements |
|
| Non
convertible - secured |
|
| From
a Banking Company |
|
|
| L.M.M. Finance |
|
|
| Opening
balance |
|
|
500,000 |
1,000,000 |
|
| Redeemed
during the year |
|
(500,000) |
(500,000) |
|
|
|
|
------------------ |
------------------ |
|
|
|
-- |
500,000 |
|
|
| Redeemable
within one year |
|
| shown
under current liabilities |
|
-- |
(500,000) |
|
|
------------------ |
------------------ |
|
|
-- |
-- |
|
|
========== |
========== |
|
|
| Marked up price |
|
|
5,715,564 |
5,715,564 |
|
| Rebate
on timely payments |
|
|
456,586 |
456,586 |
|
| Number
of half yearly equal installments |
|
14 |
14 |
|
| Date
of first installment |
|
|
Jan. 01, 1994 |
Jan. 01, 1994 |
|
|
| The
finance is secured against first equitable mortgage on fixed assets of the
Company ranking |
|
| Pari
Passu with the charge created in respect of long term loans (Refer Note 4)
and deferred |
|
| capital
expenditure payable (Refer Note 5). It is further secured by hypothecation of
machinery, |
|
| floating
charge on book debts and personal guarantees of directors of the Company. |
|
|
| 4.
LONG TERM LOANS - Secured |
|
|
|
|
|
|
Foreign |
|
|
|
Currency |
Term
Finances |
|
Demand
Finances |
|
2000 |
1999 |
|
|
|
|
|
|
|
|
|
IBRD |
|
Rupees |
Rupees |
|
|
Loan |
Financial |
Banking |
Financial |
Banking |
Banking |
Banking |
Total |
Total |
|
|
|
Institution |
Company |
Institution |
Company |
Company |
Company |
|
|
|
|
| Opening
balance |
33,650,012 |
30,000,000 |
14,584,000 |
35,611,840 |
-- |
223,000,000 |
13,629,486 |
350,475,338 |
73,191,344 |
| Obtained
during the year |
-- |
-- |
-- |
-- |
34,675,838 |
-- |
28,055,000 |
62,730,838 |
302,660,000 |
| Deferred
financial charges |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
3,451,840 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
-- |
-- |
-- |
-- |
34,675,838 |
-- |
28,055,000 |
62,730,838 |
306,111,840 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
33,650,012 |
30,000,000 |
14,584,000 |
35,611,840 |
34,675,838 |
223,000,000 |
41,684,486 |
413,206,176 |
379,303,184 |
| Paid
during the period |
(16,825,016) |
(1,929,287) |
(5,832,000) |
(2,990,590) |
-- |
-- |
(9,086,838) |
(36,663,731) |
(28,827,486) |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
16,824,996 |
28,070,713 |
8,752,000 |
32,621,250 |
34,675,838 |
223,000,000 |
32,597,648 |
376,542,445 |
350,475,338 |
|
|
|
| Payable
within one year |
|
| shown
under current liabilities |
(16,824,996) |
(4,505,616) |
(5,832,000) |
(3,487,650) |
-- |
(16,725,000) |
(15,063,273) |
(62,438,535) |
(36,639,486) |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
-- |
23,565,097 |
2,920,000 |
29,133,660 |
34,675,838 |
206,275,000 |
17,534,375 |
314,103,910 |
313,835,852 |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
| Sub Note: |
|
4.1 |
4.2 |
4.3 |
4.4 |
4.5 |
4.6 |
4.7 |
-- |
-- |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
| 4.1
Principal amount of the loan (US$ 5.893 million) is converted into Pak Rupees
at the |
|
| rate
ruling on the date of opening of letter of credit. |
|
|
| The
loan is secured by first equitable mortgage on present and future fixed
assets of |
|
| the
Company ranking pari passu with the charge created in respect of redeemable |
|
| capital
(Refer Note 3), other long term loans and deferred capital expenditure
payable |
|
| (Refer
note 5). It is further secured by hypothecation of all present and future
plant, |
|
| equipment
and machinery, first floating charge on all other assets and demand
promissory |
|
| note. |
|
|
| It
is subject to interest at the rate of 15% per annum payable half yearly on
the loan |
|
| amount
outstanding in Pak Rupees. In case of default in payment of any installment
of |
|
| principal
and / or interest on due date, additional interest at the rate of 5% per
annum |
|
| will
be payable on amount of default. The loan is repayable in 16 equal half
yearly |
|
| installments
commenced from November 15, 1993. |
|
|
|
| 4.2
It is secured against first charge on the assets of the company and personal
guarantee |
|
| of
the main sponsors. |
|
|
|
| It
is subject to mark up @ 18% per annum payable half yearly. It is repayable in
10 |
|
| equal
half yearly installments commenced from June 29, 2000. |
|
|
| 4.3
The finance is secured against pari passu charge for Rs. 25 (M) over fixed
assets of the |
|
| company
created in respect of other long term loans. It is further secured by the
personal |
|
| guarantees
of directors of the company. |
|
|
|
|
|
| It
is subject to mark-up @ 16% per annum or 3% above the highest average
Treasury Bill rate |
|
| calculated
for the previous quarters, whichever is higher, applicable for the subsequent
quarter |
|
| and
payable on quarterly basis. It is repayable in 6 half yearly installments
commenced from |
|
| April
12, 1999. |
|
|
|
|
| 4.4
The finance is secured against first equitable mortgage on the entire
properties of the |
|
| company
ranking pari passu with charge created in respect of redeemable capital
(refer |
|
| note
3) and other long term loans. It is further secured by floating charge on
book debts |
|
| of
the company, personal guarantee of the directors and corporate guarantee of
the |
|
| sister concerns. |
|
|
|
|
|
|
| It
is subject to mark-up @ 19% per annum while there is no mark-up on deferred
financial |
|
| charges.
It is repayable in 14 equal half yearly installments commenced from October |
|
| 31,1999. |
|
|
|
|
|
|
| 4.5
The finance is secured against first equitable mortgage on fixed assets of
the company |
|
| (weaving
unit-2) ranking pari passu with the charge created in respect of redeemable |
|
| capital
(refer note 3), other long term loans. It is further secured by hypothecation
of |
|
| machinery,
floating charge on book debts and personal guarantees of directors of the |
|
| company. |
|
|
|
|
| It
is subjected to mark up @ 16% per annum. |
|
|
| 4.6
The company is liable to pay only mark-up @ 14% per annum on principal amount |
|
| during
grace period of 2 years commenced from December 01, 1998. Thereafter the |
|
| total
amount of principal and mark-up spread over 40 equal quarterly installments
shall |
|
| be
paid according to the repayment schedule agreed with the bank commencing from |
|
| March
01, 2001. |
|
|
|
|
| The
finance is secured against equitable mortgage by way of first charge on fixed |
|
| assets
of the spinning unit of the company situated at Rawat, Rawalpindi. It is
further |
|
| secured
by hypothecation of machinery and personal guarantees of directors of the |
|
| company. |
|
|
|
|
|
| 4.7
It is secured against first equitable mortgage on present and future fixed
assets of the |
|
| company
ranking pari passu with the charge created in respect of redeemable capital |
|
| (Refer
note 3) and other long term loans. |
|
|
|
|
|
| It
is subject, to mark up @ 52 paisa per Rs. 1000 per day. It is repayable in 10
equal half |
|
| yearly
installments commenced from June 30, 1995. |
|
|
|
|
|
| The
amount transferred in this finance during the year is secured against the
additional |
|
| first
charge over fixed assets of the Company (Weaving unit-1) created in respect
of |
|
| long
term loans. It is further secured by personal guarantee of the directors of
the |
|
| Company. |
|
|
|
|
| It
is subject to mark-up @ 18% p.a or 3% over and above the highest average
Treasury |
|
| Bills
rate which is higher and payable on quarterly basis. It is payable in 8
quarterly |
|
| installments
commencing from March 08, 2001. |
|
|
|
|
|
|
|
2000 |
1999 |
|
|
Note |
Rupees |
Rupees |
|
|
| 5.
CAPITAL EXPENDITURE PAYABLE - Secured |
|
| L/C
# 047-01-49-0052-031 |
|
|
66,794,471 |
66,794,471 |
|
| Less: |
|
|
| Paid
during the year |
|
|
38,739,471 |
-- |
|
| Transfer
to Demand Finance |
|
5.2 |
28,055,000 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
66,794,471 |
-- |
|
| Transfer
to current maturity |
|
| shown
under current liabilities |
|
|
-- |
(38,739,471) |
|
|
|
------------------ |
------------------ |
|
|
|
-- |
28,055,000 |
|
|
========== |
========== |
|
|
| This
represents amount of foreign bills payable against import of machinery. |
|
|
| 5.1
The repayment is guaranteed by a bank guarantee. The guarantee is counter
secured |
|
| against
first equitable mortgage on present and future fixed assets of the Company |
|
| ranking
pari passu with the charge created in respect of redeemable capital (Refer |
|
| Note
3) and long term loans (Refer Note 4). It has been paid subsequent to balance |
|
| sheet date. |
|
|
|
|
|
|
| 5.2
Fresh demand finance of Rs. 28.055 million was sanctioned during the year for
payment |
|
| of
D/A bill on maturity in December 1999 for remittance to supplier and is
repayable in |
|
| 8
equal quarterly installments commencing after 1 year from the date of
disbursement. |
|
| Rate
of mark-up is 3% over the above STFB with a floor of 18%. It is secured by |
|
| additional
first charge on fixed assets of the company and personal guarantees of the |
|
| directors. |
|
|
|
|
| 6.
SHORT TERM BANK BORROWINGS |
|
|
|
| Commercial
Banks |
Note |
Note Sanctioned |
|
| -Secured - under mark-up |
arrangements |
Limited Rs. (M) |
|
|
| Export refinance |
|
6.1 |
558 (1999: 718) |
389,300,000 |
415,444,000 |
|
| Cash finance |
|
6.2 |
10 (1999: 10) |
4,416,967 |
600,000 |
|
| Bank overdraft |
|
6.3 |
|
3,871,892 |
609,852 |
|
|
------------------ |
------------------ |
|
|
397,588,859 |
416,653,852 |
|
|
========== |
========== |
|
|
| 6.1
These are secured against lien on export documents and out of total limit,
Rs. 3.099 |
|
| million
are secured against bank deposit (Refer note 20.1). These are further secured |
|
| by
pledge of exportable stock and charge on current assets of the company. Mark
up |
|
| rate
on export refinance from SBP line ranges from 8% to 10% and on finances
provided |
|
| by
bank's own sources ranges from 11% to 17.5%. |
|
|
|
|
|
| 6.2
It is secured against pledge of stock of cotton yarn and grey cloth. Mark-up
rate is 13% |
|
| per
annum and calculated on daily product basis payable at the end of each
quarter. |
|
|
|
|
| 6.3
This is arisen temporarily due to issuance of cheques in excess of the
balance available |
|
| in bank account. |
|
|
|
|
| 7.
CURRENT PORTION OF LONG TERM LIABILITIES |
|
| Redeemable
capital (Note 3) |
|
-- |
500,000 |
|
| Long
term loans (Note 4) |
|
62,438,535 |
36,639,486 |
|
| Deferred
capital expenditure (Note 5) |
|
-- |
38,739,471 |
|
|
|
------------------ |
------------------ |
|
|
|
62,438,535 |
75,878,957 |
|
|
========== |
========== |
|
|
|
| 8.
CREDITORS, ACCRUED AND OTHER LIABILITIES |
|
| Creditors |
|
|
36,758,394 |
28,074,231 |
|
| Foreign
bills payable |
|
|
-- |
2,637,941 |
|
| Advance
from customers |
|
|
1,075,620 |
2,708,752 |
|
| Accrued
charges |
|
|
46,386,968 |
13,347,087 |
|
| Mark-up/interest
on secured |
|
|
|
|
| Long term loans |
|
|
9,296,115 |
11,411,677 |
|
| Shod
term bank borrowings |
|
|
9,235,900 |
4,966,797 |
|
| Income tax |
|
|
6,932,135 |
1,286,318 |
|
| Zakat payable |
|
|
-- |
436,185 |
|
| Workers'
profit participation fund |
|
8.1 |
8,318,935 |
2,645,721 |
|
| Due
to associated undertaking |
|
8.2 |
29,460,167 |
12,113,639 |
|
| Other liabilities |
|
|
184,126 |
19,315 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
147,648,360 |
79,647,663 |
|
|
========== |
========== |
|
|
|
| 8.1
Workers' Profit Participation Fund |
|
| Opening
balance |
|
2,645,721 |
3,794,794 |
|
| Interest
on fund utilized on company's business |
|
196,080 |
471,750 |
|
|
|
------------------ |
------------------ |
|
|
|
2,841,801 |
4,266,544 |
|
| Payment
to workers on behalf of the fund |
|
2,655,625 |
3,794,794 |
|
|
|
------------------ |
------------------ |
|
|
|
186,176 |
471,750 |
|
| Allocation
for the year |
|
8,132,759 |
2,173,971 |
|
|
|
------------------ |
------------------ |
|
|
|
8,318,935 |
2,645,721 |
|
|
========== |
========== |
|
|
| 8.2
It represent mark-up free temporary advance from associated undertakings. |
|
|
| 9. DIVIDEND |
|
| Proposed |
|
57,513,750 |
13,693,750 |
|
| Unclaimed |
|
1,647,592 |
882,383 |
|
| Payable |
|
340,393 |
11,284,206 |
|
|
|
------------------ |
------------------ |
|
|
|
59,501,735 |
25,860,339 |
|
|
========== |
========== |
|
|
| 10.
CONTINGENCIES AND COMMITMENTS |
|
|
| Contingencies |
|
| Bank
guarantees issued on behalf of the Company |
|
8,800,000 |
8,885,675 |
|
|
========== |
========== |
|
|
| Commitments |
|
| Letters of credit |
|
|
| For
capital expenditure |
|
294,135,726 |
6,323,044 |
|
| Others |
|
|
5,037,720 |
-- |
|
|
|
------------------ |
------------------ |
|
|
|
299,173,446 |
6,323,044 |
|
|
|
========== |
========== |
|
|
| 11.
OPERATING FIXED ASSETS |
|
|
|
|
|
|
|
COST |
|
DEPRECIATION |
|
|
|
|
|
Written down |
|
|
|
As at |
|
As at |
|
As at |
For the |
As at |
value at |
|
|
|
October 01, |
Addition/ |
September |
Rate |
October 01, |
year |
September 30, |
September 30, |
|
| Particulars |
|
1999 |
(Deletion) |
30, 2000 |
% |
1999 |
|
2000 |
2000 |
|
|
|
|
|
|
|
|
|
Rupees |
Rupees |
Rupees |
|
Rupees |
Rupees |
Rupees |
Rupees |
|
|
|
|
| Freehold land |
|
14,067,925 |
1,045,380 |
15,113,305 |
-- |
-- |
-- |
-- |
15,113,305 |
|
| Building
on freehold land |
36,644,702 |
13,562,587 |
50,207,289 |
10 |
13,659,191 |
3,654,810 |
17,314,001 |
32,893,288 |
|
| Plant
and machinery |
419,043,714 |
292,944,222 |
712,037,936 |
10 |
138,390,112 |
57,364,782 |
192,754,893 |
516,283,043 |
|
| Electric
installations |
17,565,124 |
77,430 |
17,642,554 |
10 |
5,893,544 |
1,174,901 |
7,068,445 |
10,574,109 |
|
| Factory
equipment |
2,013,615 |
1,211,678 |
3,225,293 |
10 |
505,560 |
271,974 |
777,534 |
2,447,759 |
|
| Office
equipments |
1,645,535 |
141,123 |
1,786,658 |
10 |
321,562 |
146,510 |
468,072 |
1,318,586 |
|
| Electric
appliances |
1,358,672 |
348,060 |
1,706,732 |
10 |
382,219 |
132,451 |
514,670 |
1,192,062 |
|
| Furniture
and fixtures |
1,355,755 |
251,402 |
1,607,157 |
10 |
338,868 |
126,829 |
465,696 |
1,141,461 |
|
| Vehicles |
|
7,918,238 |
1,166,292 |
9,084,530 |
20 |
3,299,001 |
1,157,106 |
4,456,107 |
4,628,423 |
|
|
|
------------------ |
------------------ |
------------------ |
|
------------------ |
------------------ |
------------------ |
------------------ |
|
| 2000 |
|
501,613,280 |
310,798,174 |
812,411,454 |
|
162,790,057 |
64,029,363 |
226,819,418 |
585,592,036 |
|
|
|
========== |
========== |
========== |
|
========== |
========== |
========== |
========== |
|
| 1999 |
|
321,732,451 |
179,880,829 |
501,613,280 |
|
130,110,823 |
32,679,234 |
162,790,057 |
338,823,223 |
|
|
|
========== |
========== |
========== |
|
========== |
========== |
========== |
========== |
|
|
|
|
2000 |
1999 |
|
|
Note |
Rupees |
Rupees |
|
|
| 11.1
Depreciation for the year has been allocated as under: |
|
| Cost
of goods manufactured |
|
23 |
62,466,467 |
30,466,754 |
|
| Administrative
expenses |
|
23 |
1,562,896 |
1,120,824 |
|
| Trial
run operation |
|
|
-- |
1,091,656 |
|
|
|
------------------ |
------------------ |
|
|
64,029,363 |
32,679,234 |
|
|
========== |
========== |
|
|
| 12.
CAPITAL WORK IN PROGRESS |
|
| Civil work |
|
28,827,622 |
12,737,049 |
|
| Machinery |
|
36,231,420 |
283,195,549 |
|
| Unallocated
expenditure |
|
2,376,902 |
-- |
|
|
|
------------------ |
------------------ |
|
|
|
67,435,944 |
295,932,598 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 13.
LONG TERM DEPOSITS AND DEFERRED COST |
|
| Long
term deposits |
|
650,550 |
646,550 |
|
| Deferred
cost (quota) |
|
10,536,999 |
10,311,999 |
|
| Amortization |
|
|
|
|
| Opening
balance |
|
3,892,471 |
1,830,071 |
|
| During the year |
|
|
6,644,528 |
2,062,400 |
|
|
|
------------------ |
------------------ |
|
|
|
10,536,999 |
3,892,471 |
|
|
|
------------------ |
------------------ |
|
|
|
650,550 |
7,066,078 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 14.
STORES, SPARES AND LOOSE TOOLS |
|
| Stores |
|
18,764,672 |
12,929,893 |
|
| Spares |
|
869,442 |
2,517,476 |
|
| Loose tools |
|
6,916 |
17,798 |
|
|
|
------------------ |
------------------ |
|
|
|
19,641,030 |
15,465,167 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 15.
STOCK IN TRADE |
|
| Raw material |
|
48,191,797 |
110,971,290 |
|
| Work in process |
|
9,233,968 |
10,375,795 |
|
| Finished goods |
|
83,913,544 |
81,110,008 |
|
| Waste |
|
1,341,669 |
1,104,215 |
|
|
|
------------------ |
------------------ |
|
|
|
142,680,978 |
203,561,308 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 16.
TRADE DEBTORS |
|
| Foreign
- Secured against foreign bills |
|
290,437,736 |
185,695,597 |
|
| Local
- unsecured - considered good |
|
29,647,192 |
19,566,203 |
|
|
|
------------------ |
------------------ |
|
|
|
320,084,928 |
205,261,800 |
|
|
|
========== |
========== |
|
|
|
| 17.
LOANS AND ADVANCES |
|
| Considered
Good |
|
|
| Due
from employees |
|
949,271 |
1,021,014 |
|
| Advances |
|
|
|
|
| Suppliers |
|
|
14,695,449 |
4,938,539 |
|
| Expenses |
|
|
75,141 |
32,537 |
|
| Income Tax |
|
|
21,856,760 |
3,262,634 |
|
| Others |
|
|
664,658 |
-- |
|
|
|
------------------ |
------------------ |
|
|
|
38,241,279 |
9,254,724 |
|
|
========== |
========== |
|
|
|
| 18.
DEPOSITS AND PREPAYMENTS |
|
| Shod
term security deposits |
|
2,344,090 |
1,605,100 |
|
| Prepayments |
|
|
|
| Insurance |
|
233,527 |
172,980 |
|
| Letters
of credit, fee, margin and expenses |
|
4,988,266 |
3,397,786 |
|
| Quota Deposit |
|
-- |
1,404,838 |
|
|
|
------------------ |
------------------ |
|
|
|
7,565,883 |
6,580,704 |
|
|
|
========== |
========== |
|
|
| 19.
OTHER RECEIVABLES |
|
| Export rebate |
|
|
5,980,933 |
6,935,318 |
|
| Mark-up
refundable |
|
|
-- |
134,907 |
|
| Profit receivable |
|
|
-- |
358,107 |
|
| Sales tax |
|
|
4,554,867 |
7,429,806 |
|
| Due
from associated undertaking |
|
19.1 |
-- |
1,459,420 |
|
| K.M.C.
octroi refundable |
|
|
840,200 |
837,310 |
|
| Claims
receivable |
|
|
489,773 |
1,728,165 |
|
| Others |
|
|
922,969 |
576,208 |
|
| Less:
Provision for doubtful receivables |
|
(50,000) |
-- |
|
|
|
|
------------------ |
------------------ |
|
| Considered
good |
|
|
12,738,742 |
19,459,241 |
|
|
|
========== |
========== |
|
|
| 19.1
The maximum balance at the end of any month during the year was Rs. 2,622,239
(1999: |
|
| Rs. 5,790,000) |
|
|
| 20.
CASH AND BANK BALANCES |
|
| Cash in hand |
|
|
134,193 |
38,662 |
|
| Cash at banks |
|
| In
current accounts |
|
| Local currency |
|
|
1,959,346 |
21,883,553 |
|
| Foreign
currency |
|
20.1 |
3,098,725 |
2,912,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
5,058,071 |
24,795,553 |
|
| In
escrow account |
|
| Local currency |
|
|
106,004,153 |
-- |
|
| In
deposit account |
|
| Local currency |
|
|
|
-- |
409,392 |
|
| Foreign
currency |
|
20.1 |
-- |
41,832,873 |
|
|
|
|
------------------ |
------------------ |
|
|
|
-- |
42,242,265 |
|
|
|
------------------ |
------------------ |
|
|
|
111,196,417 |
67,076,480 |
|
|
|
|
========== |
========== |
|
|
| 20.1
Deposit of Rs. 3,098,725/- (1999 - Rs.37,596,000/-) is under lien against
short term bank |
|
| borrowings
(Refer Note 6). |
|
|
| 21. SALES |
|
| Export |
|
|
1,215,532,338 |
742,492,442 |
|
| Local |
|
|
104,816,835 |
58,676,033 |
|
|
|
------------------ |
------------------ |
|
|
|
1,320,349,173 |
801,168,475 |
|
| Waste -Local |
|
|
13,585,493 |
4,530,196 |
|
|
|
------------------ |
------------------ |
|
|
|
1,333,934,666 |
805,698,671 |
|
| Rebate |
|
|
12,834,262 |
12,571,674 |
|
|
|
------------------ |
------------------ |
|
|
|
1,346,768,928 |
818,270,345 |
|
| Commission
and claims |
|
|
(39,881,010) |
(17,887,981) |
|
|
|
------------------ |
------------------ |
|
|
|
1,306,887,918 |
800,382,364 |
|
|
========== |
========== |
|
|
| 22.
COST OF GOODS SOLD |
|
| Cost
of goods manufactured |
|
22.2 |
983,254,683 |
683,203,184 |
|
| Cloth consumed |
|
|
5,073,504 |
9,911,905 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
988,328,187 |
693,115,089 |
|
|
| Finished goods |
|
| Opening stock |
|
|
22.1 |
82,214,223 |
43,921,658 |
|
| Closing stock |
|
|
|
(85,255,213) |
(65,856,761) |
|
|
------------------ |
------------------ |
|
|
|
(3,040,990) |
(21,935,103) |
|
|
|
------------------ |
------------------ |
|
|
|
985,287,197 |
671,179,986 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 22.1
It includes stock of Rs. 16,357,462 transferred from trial run operations. |
|
|
|
|
| 22.2
Cost of goods manufactured |
|
|
|
| Raw
material consumed |
|
22.2.1 |
729,607,059 |
564,341,252 |
|
| Stores
and spares |
|
|
41,679,370 |
30,665,039 |
|
| Packing material |
|
|
10,580,615 |
1,748,427 |
|
| Salaries,
wages and benefits |
|
22.2.2 |
41,285,660 |
17,064,056 |
|
| Fuel, and power |
|
|
82,569,626 |
37,011,451 |
|
| Insurance |
|
|
4,202,796 |
1,000,806 |
|
| Repairs
and maintenance |
|
|
4,312,443 |
773,572 |
|
| Depreciation |
|
11.1 |
62,466,467 |
30,466,754 |
|
| Others |
|
|
5,408,821 |
1,326,569 |
|
|
|
|
------------------ |
------------------ |
|
|
|
982,112,856 |
684,397,926 |
|
| Work
in process |
|
| Opening |
|
22.2.3 |
10,375,795 |
5,326,400 |
|
| Closing |
|
|
(9,233,968) |
(6,521,142) |
|
|
------------------ |
------------------ |
|
|
|
1,141,827 |
(1,194,742) |
|
|
|
------------------ |
------------------ |
|
|
|
983,254,683 |
683,203,184 |
|
|
========== |
========== |
|
|
|
| 22.2.1
Raw material consumed |
|
| Opening stock |
|
22.2.1.1 |
110,971,290 |
20,885,216 |
|
| Purchases
including expenses |
|
|
666,827,566 |
568,122,502 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
777,798,856 |
589,007,718 |
|
| Closing stock |
|
|
(48,191,797) |
(24,666,466) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
729,607,059 |
564,341,252 |
|
|
|
========== |
========== |
|
|
| 22.2.1.1
It includes stock of Rs. 86,304,824 transferred from trial run operations. |
|
|
| 22.2.2
It include staff retirement benefits of Rs. 204,066 (1999: Rs. 155,184) |
|
|
| 22.2.3
It includes stock of Rs. 3,854,653 transferred from trial run operations. |
|
|
| 23.
OPERATING EXPENSES |
|
| Administrative |
|
| Directors'
remuneration |
|
|
300,000 |
300,000 |
|
| Staff
Salaries and benefits |
|
|
4,125,076 |
3,313,797 |
|
| Telephone
and postage |
|
|
2,961,147 |
2,587,807 |
|
| Vehicle
running and maintenance |
|
|
608,324 |
407,026 |
|
| Travelling
and conveyance |
|
|
5,239,146 |
3,603,854 |
|
| Printing
and stationery |
|
|
424,945 |
415,356 |
|
| Entertainment |
|
|
174,019 |
179,374 |
|
| Fee,
subscription and periodicals |
|
|
580,534 |
616,728 |
|
| Advertisement |
|
|
55,251 |
134,161 |
|
| Audit fee |
|
|
125,000 |
100,000 |
|
| Repair
and maintenance |
|
|
1,235,016 |
510,627 |
|
| Legal
and professional |
|
|
139 |
71,000 |
|
| Rent,
rates and taxes |
|
|
185,627 |
153,564 |
|
| Depreciation |
|
11.2 |
1,562,896 |
1,120,824 |
|
| Others |
|
|
1,512,312 |
623,395 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
19,089,432 |
14,137,512 |
|
|
| Selling |
|
| Ocean
freight & shipping |
|
17,452,091 |
13,201,737 |
|
| Local
freight and octroi |
|
6,219,646 |
2,616,390 |
|
| Bank charges |
|
|
6,060,286 |
4,380,799 |
|
| Marketing |
|
|
12,456,000 |
-- |
|
| Others |
|
|
387,746 |
255,749 |
|
|
|
------------------ |
------------------ |
|
|
42,575,769 |
20,454,675 |
|
|
------------------ |
------------------ |
|
|
61,665,201 |
34,592,187 |
|
|
|
========== |
========== |
|
|
|
| 24.
OTHER INCOME |
|
|
| Interest
on deposits |
|
|
25,373 |
33,156 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
25,373 |
33,156 |
|
|
========== |
========== |
|
|
| 25.
FINANCIAL CHARGES |
|
| Interest/mark,
up on |
|
| Redeemable
capital |
|
|
23,530 |
60,330 |
|
| Long term loans |
|
|
|
53,472,917 |
16,736,271 |
|
| Short
term bank borrowings |
|
|
34,838,832 |
31,041,895 |
|
| Workers'
profit participation fund |
|
|
196,080 |
471,750 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
88,531,359 |
48,310,246 |
|
|
| Bank
charges, excise duty and commission |
|
2,475,909 |
1,263,040 |
|
|
|
|
------------------ |
------------------ |
|
|
|
91,007,268 |
49,573,286 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
| 26. TAXATION |
|
|
| Current Year |
|
|
11,111,902 |
6,598,250 |
|
|
|
|
|
========== |
========== |
|
|
| The
tax has been worked out u/s 80-CC of the Income Tax Ordinance, 1979. |
|
|
|
|
| Deferred |
|
|
|
| The
company is to be assessed under presumptive tax regime as per section 80-CC
of the Income |
|
| Tax
Ordinance, 1979, therefore no deferred tax liability arises. |
|
|
| 27.
EARNINGS PER SHARE- BASIC |
|
| Profit
after taxation for the year attributable to |
|
143,064,436 |
34,235,440 |
|
|
| ordinary
shareholders. |
|
========== |
========== |
|
|
|
|
|
|
|
| Weighted
average number of Ordinary Share |
|
|
|
| outstanding
during the year |
|
10,955,000 |
10,955,000 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
|
| Earnings
per share |
|
13.06 |
3.13 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
| 28.
TRANSACTIONS WITH ASSOCIATED |
|
| UNDERTAKINGS |
|
| Expenses
charged by |
|
144,082 |
245,945 |
|
|
| Expenses
charged to |
|
840,725 |
426,621 |
|
|
| Advance
received |
|
8,960,000 |
8,632,395 |
|
|
|
========== |
========== |
|
|
| 29.
REMUNERATION TO DIRECTOR AND EXECUTIVES |
|
|
| 29.1 Director |
|
|
| Managerial
remunerations |
|
|
200,000 |
200,000 |
|
|
| Rent & utilities |
|
|
100,000 |
100,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
300,000 |
300,000 |
|
|
|
|
========== |
========== |
|
|
| Number
of person |
|
|
1 |
1 |
|
|
|
|
|
|
|
| 29.2 Executives |
|
|
|
| Managerial
remunerations |
|
|
1,848,000 |
980,000 |
|
|
| Rent & utilities |
|
|
924,000 |
490,000 |
|
|
| Reimbursement
of expenses |
|
|
|
|
|
| Medical
& others |
|
|
173,478 |
25,840 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
2,945,478 |
1,495,840 |
|
|
|
|
========== |
========== |
|
|
| Number
of persons |
|
|
13 |
7 |
|
|
|
|
| The
chief executive officer and directors are provided free use of company's
maintained car. |
|
|
| Certain
executives are also provided company's vehicles. |
|
|
| 30.
PROPOSED DIVIDEND |
|
|
|
2000 |
1999 |
|
|
| Amount
of proposed dividend (Rupees) |
|
57,513,750 |
13,693,750 |
|
| Existing
number of ordinary shares |
|
10,955,000 |
10,955,000 |
|
| Dividend
per share as per existing |
|
|
|
| share
capital (Rupees) |
|
5.25 |
1.25 |
|
| Right
issue of ordinary shares |
|
2,738,750 |
-- |
|
| Total
increased number of shares |
|
13,693,750 |
10,955,000 |
|
| Distributable
dividend per share (Rupees) |
|
4.20 |
1.25 |
|
|
|
|
| 31.
CAPACITY AND PRODUCTION |
|
|
| CLOTH |
|
|
|
| 31.1
Number of looms installed |
|
116 |
116 |
|
| Number
of looms worked |
|
|
116 |
116 |
|
| Number
of shifts per day |
|
|
3 |
3 |
|
| Number
of working days |
|
|
365 |
365 |
|
| Standard
cloth production (meters) |
|
16,085,226 |
16,085,226 |
|
| Actual
cloth production (meters) |
|
|
15,539,326 |
14,339,897 |
|
|
| YARN |
|
|
|
|
|
| 31.2
Number of spindles installed |
|
14,400 |
14,400 |
|
| Number
of spindles worked |
|
|
14,400 |
14,400 |
|
| Number
of shifts per day |
|
|
3 |
3 |
|
| Number
of working days |
|
|
365 |
Trial Run |
|
| Installed
capacity after conversion |
|
|
|
| into
20/s count Kgs. |
|
4,849,904 |
Trial Run |
|
| Actual
production of yarn after |
|
|
|
|
| conversion
into 20/s count Kgs. |
|
4,234,156 |
Trial Run |
|
|
| It
is difficult to describe precisely the production capacity in Spinning !
Weaving Mills since it |
|
| fluctuates
widely depending on various factors such as count of yarn spun, spindles
speed, twist, |
|
| the
width and construction of cloth woven, etc. It also varies according to the
pattern of production |
|
| adopted
in a particular year. |
|
|
|
|
| 32.
FINANCIAL INSTRUMENTS AND |
|
|
| RELATED
DISCLOSURES |
|
|
|
|
|
|
| Concentration
of Credit Risk |
|
|
|
| Credit
risk represents the accounting loss that would be recognised at the reporting
date if counter |
|
| parties
failed completely to perform as contracted, The company applies credit limits
to its customers |
|
| and
does not have significant exposure to any individual customer. |
|
|
|
|
| Interest
Rate Risk |
|
|
|
| Interest
rate risk arise form the possibility that changes in interest rates will
effect the value of |
|
| financial
instruments. The company is not exposed to interest rate risk. |
|
|
| Fair
values of financial assets and liabilities |
|
| The
carrying value of all the financial assets and liabilities reported in the
financial statements |
|
| approximate
their fair value. |
|
|
| 33.
NUMBER OF EMPLOYEES |
|
|
|
2000 |
1999 |
|
|
|
|
|
| Number
of employees at average. |
|
665 |
650 |
|
|
| 34. FIGURES |
|
|
|
| - have been rounded off
nearest to rupee. |
|
|
| -
of the prior year have been rearranged wherever necessary for the purpose of
comparison. |
|
|
|
Sd/- |
|
Sd/- |
|
|
FAZAL AHMED SHEIKH |
|
FAWAD AHMED SHEIKH |
|
|
(Chief Executive) |
|
(Director) |
|
|
|
| PATTERN
OF SHARE HOLDINGS |
|
| AS
ON SEPTEMBER 30, 2000 |
|
|
| NUMBER OF |
FROM |
TO |
TOTAL |
|
|
| SHARE |
SHARES |
SHARES |
SHARES HELD |
|
|
| HOLDERS |
|
|
|
|
| 114 |
1 |
100 |
11400 |
|
| 2244 |
101 |
500 |
1095400 |
|
| 82 |
501 |
1000 |
81500 |
|
| 110 |
1001 |
5000 |
323600 |
|
| 24 |
5001 |
10000 |
186200 |
|
| 52 |
10001 |
Above |
9256900 |
|
| ------------------ |
|
------------------ |
|
| 2626 |
|
|
10955000 |
|
| ========== |
|
========== |
|
|
|
|
| CATEGORIES
OF SHAREHOLDERS |
|
|
|
|
|
| CATEGORIES
OF |
|
NUMBER OF |
SHARES HELD |
HOLDER |
|
| SHARE
HOLDERS |
|
SHARE |
|
PERCENTAGE |
|
|
|
HOLDERS |
|
|
|
| INDIVIDUALS |
|
2612 |
3539000 |
32.30 |
|
| INVESTMENT
COMPANIES |
|
5 |
484500 |
40.42 |
|
| JOINT
STOCK COMPANIES |
|
6 |
6255500 |
57.10 |
|
| FINANCIAL
INSTITUTIONS |
|
2 |
671000 |
6.13 |
|
| MODARABA
COMPANY |
|
1 |
5000 |
0.05 |
|
|
|
------------------ |
------------------ |
------------------ |
|
| Total |
|
2626 |
10955000 |
100.00 |
|
|
========== |
========== |
========== |
|
|
|
|
|
|
|
|
|
|
|
|
