| Tandlianwala Sugar Mills Limited |
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|
| Annual
Report 2000 |
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| CONTENTS |
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| COMPANY'S
INFORMATION |
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
| DIRECTORS'
REPORT |
|
| PATTERN
OF HOLDING OF SHARES |
|
| AUDITORS'
REPORT |
|
| BALANCE
SHEET |
|
| PROFIT
AND LOSS ACCOUNT |
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| STATEMENT
OF CASH FLOWS |
|
| STATEMENT
OF CHANGES IN EQUITY |
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| NOTES
TO THE ACCOUNTS |
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|
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| COMPANY'S
INFORMATION |
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|
| Board
of Directors |
Mr. Akbar Akhtar Khan |
(Chairman) |
|
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|
Mr. Haroon Akhtar Khan |
(Chief Executive) |
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|
Mr. Ghazi Akhtar Khan |
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|
Mrs. Rasheeda Begum |
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|
Mrs. Mobina Akbar Khan |
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|
Mr. Saif Ullah Khan
Paracha |
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|
Mr. Hameed Ullah Khan
Paracha |
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|
Mr. Saeed Ullah Khan
Paracha |
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| Company
Secretary |
Mr. Ahmad Jehanzeb Khan |
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| Bankers |
|
Allied Bank of Pakistan
Limited |
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Bank Alfalah Limited |
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Emirates Bank
International PJSC |
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|
Habib Bank Limited |
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|
Muslim Commercial Bank
Limited |
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|
National Bank of Pakistan
Limited |
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|
National Development
Finance Corporation |
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|
United Bank Limited |
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| Legal Advisors |
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Cornelius, Lane &
Mufti |
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|
Nawa-i-Waqat Building |
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4-Shahrah-e-Fatima Jinnah |
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|
Lahore |
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| Auditors |
|
Taseer Hadi Khalid &
Co. |
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|
Chartered Accountants |
|
|
|
|
| Mills |
|
Kanjwani, Tehsil
Tandlianwala |
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District, Faisalabad |
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| Registered
Office |
32-N, Gulberg-II, Lahore |
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| NOTICE
OF ANNUAL GENERAL MEETING |
|
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| Notice
is hereby given that the 12th Annual General Meeting of the Shareholders of
Tandlianwala Sugar Mills Limited will |
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| be
held on Monday April 30, 2001 at 10:00 a.m. at the Registered Office of the
Company at 32-N, Gulberg-II, Lahore for |
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| transacting
the following business:- |
|
|
| 1.
To confirm the Minutes of the 11th Annual General Meeting held on March 31,
2000. |
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|
|
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| 2.
To receive, consider and adopt the audited accounts of the Company for the
year ended September 30, 2000 |
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| together
with the Directors' and Auditors' Report thereon. |
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|
|
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| 3.
To appoint Auditors for the year 2000-2001 and fix their remuneration. M/s
Taseer Hadi Khalid & Co., |
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| Chartered
Accountants, the retiring Auditors, have offered themselves for
re-appointment. |
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|
|
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| 4.
To consider any other business with the permission of the Chairman. |
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|
By Order of the Board |
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|
(Ahmad Jehanzeb Khan) |
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| Lahore:
April 07, 2001 |
|
Company Secretary |
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| NOTES: |
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| 1.
The Share Transfer Books of the Company will remain closed from April 23,
2001 to April 30, 2001 (both days |
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| 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 his/her Proxy to attend and |
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| vote
on his/her behalf. Proxies, in order to be effective must be received by the
Company not less than 48 hours |
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| before
the meeting. |
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|
|
|
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| 3.
Kindly quote your folio number in all correspondence with the Company. |
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| 4.
Shareholders are requested to notify any change in their addresses
immediately. |
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| DIRECTORS'
REPORT |
|
|
| Dear
Shareholders, |
|
|
| The
Board of Directors of Tandlianwala Sugar Mills Limited are pleased to place
before you the 12th Annual Report, |
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| together
with the Audited Accounts of the Company for the year ended September 30,
2000. The summarized results of |
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| the
Commercial Operations are discussed as under:- |
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|
| CANE
CRUSHING AND PRODUCTION |
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|
|
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|
1999-2000 |
1998-99 |
|
|
|
|
| Season started |
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|
November 15, 1999 |
November 25, 1998 |
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| Season closed |
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|
March 31, 2000 |
May 01, 1999 |
|
| Total
days worked (Run) |
|
|
138 |
158 |
|
| Sugarcane
crushed (M. Tons) |
|
|
621,889.30 |
970,916.96 |
|
| Sugar
produced (M. Tons) |
|
|
44,264 |
72,545 |
|
| Sugar
recovery (%) |
|
|
7.12 |
7.47 |
|
| Molasses
production (M. Tons) |
|
|
32,090 |
50,005 |
|
|
| This
season, as evident from above, was one of the worst ever witnessed by the
sugar sector. We could hardly utilize half |
|
| of
our production capacity due to shortage of sugarcane. Shortage of sugarcane
resulted primarily due to discontinuation |
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| of
flat rates of electricity for agricultural tubewells and record low rainfall.
As a result, we were forced to pay exorbitant |
|
| prices
for sugarcane, which, at times ranged 50% - 60% above the support price fixed
by the Government. This situation |
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| was
further aggravated by reduction in sugar recovery rates, primarily due to
degenerated, diseased and infested Indian |
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| Variety
of sugarcane. |
|
|
| Due
to reduced production, it was an uphill task to meet fixed expenses and
service the debts, but, fortunately the timely |
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| and
prudent sale policy of the company bailed us out and we ended up making Sales
at better prices than our |
|
| contemporaries.
This helped us, to make a net profit of Rs.23.064 million at the financial
close of, what is being termed |
|
| generally
as one of the worst years for the industry. |
|
|
| CURRENT
SEASON 2000-2001 |
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| The
position since the start of present season till March 31, 2001 is summarized
below:- |
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|
| Season started |
|
|
November 03, 2000 |
|
| Days worked |
|
|
149 |
|
| Cane
crushed (M. Tons) |
|
625,914.650 |
|
| Sugar
recovery (%) |
|
7.05 |
|
| Sugar
bagged (M. Tons) * |
|
54,262 |
|
| Molasses
production (M. Tons) |
|
32,350 |
|
|
|
| *
(including sugar produced from imported raw sugar) |
|
|
| The
situation during current season 2000-2001 is almost the same as the previous
year, as the size of the crop, as well as, |
|
| other
factors, continue to be the same. The shortage of sugarcane from the very
start had started a cane price war and the |
|
| growers,
who held back their cane, exploited the situation by demanding prices almost
double the support price. The |
|
| recovery
position, especially in our region, has not improved. This is because the
farmer has no incentive to grow good |
|
| quality
cane as he gets a fixed price irrespective of quality. On the other hand the
mills have no incentive to invest in any |
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| cane
development, as a grower having received a loan from a sugar mill invariably
takes his cane to a neighbouring mill so |
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| that
his loan does not get adjusted against his cane payment. |
|
|
| We,
however have tried our best to crush maximum sugarcane. In order to increase
the production to the break-even |
|
| position,
we have also established Letters of Credit of 20,000 M. Tons of raw sugar,
out of which a major portion has |
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| already
arrived at our Mills site. |
|
|
| We
would like to point out here that the liberal imports of sugar especially
from India, combined with raw sugar imported, |
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| is
leading to a glut of sugar in the country. PSMA has, time and again,
requested the government to ban further import of |
|
| sugar
in order to save the domestic industry but so far only sugar imported from
India has been banned. |
|
|
| If
a timely action by the Government, by means of an increase in duty on refined
sugar, is taken, only then can we foresee |
|
| a
better year as compared to the previous year 1999-2000. |
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|
| SHARE
HOLDING |
|
| Pattern
of holding of the shares by shareholders of the Company as at September 30,
2000, as required under section |
|
| 236(2)
(d) of the Companies Ordinance, 1984 is enclosed. |
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|
| AUDITORS |
|
| The
retiring Auditors, M/S Taseer Hadi Khalid & Co., Chartered Accountants,
being eligible, offer themselves for re- |
|
| appointment
for the year ended September 30, 2001. |
|
|
| APPRECIATION |
|
| The
staff of your company is enthusiastic and professional. We would remiss in
not recording our sincere appreciation for |
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| their
hard-work and devotion. |
|
|
|
|
On behalf of the Board |
|
|
|
|
|
| April 07, 2001 |
|
Haroon Akhtar Khan |
|
|
|
|
|
|
| FORM 34 |
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| PATTERN
OF HOLDING OF SHARES |
|
| HELD
BY THE SHAREHOLDERS AS AT SEPTEMBER 30, 2000 |
|
|
| No. of |
Shareholding |
Total |
|
| Shareholders |
From |
To |
Share Held |
|
|
|
| 14 |
1 |
100 |
1305 |
|
| 1712 |
101 |
500 |
850600 |
|
| 65 |
501 |
1000 |
60865 |
|
| 31 |
1001 |
5000 |
74210 |
|
| 5 |
5001 |
10000 |
45000 |
|
| 1 |
10001 |
15000 |
15000 |
|
| 1 |
15001 |
20000 |
16000 |
|
| 1 |
35001 |
40000 |
40000 |
|
| 2 |
45001 |
50000 |
100000 |
|
| 1 |
60001 |
65000 |
61400 |
|
| 1 |
70001 |
75000 |
75000 |
|
| 4 |
95001 |
100000 |
400000 |
|
| 1 |
135001 |
140000 |
140000 |
|
| 1 |
140001 |
145000 |
144300 |
|
| 1 |
165001 |
170000 |
169500 |
|
| 1 |
195001 |
200000 |
200000 |
|
| 1 |
235001 |
240000 |
236200 |
|
| 1 |
245001 |
250000 |
250000 |
|
| 1 |
265001 |
270000 |
265800 |
|
| 1 |
395001 |
400000 |
399873 |
|
| 1 |
430001 |
435000 |
432400 |
|
| 1 |
465001 |
470000 |
469300 |
|
| 3 |
495001 |
500000 |
1500000 |
|
| 1 |
880001 |
885000 |
884100 |
|
| 1 |
1245001 |
1250000 |
1247500 |
|
| 1 |
1370001 |
1375000 |
1370355 |
|
| 3 |
1490001 |
1495000 |
4471703 |
|
| 1 |
1760001 |
1770000 |
1768000 |
|
| 1 |
3075001 |
3080000 |
3079571 |
|
| 2 |
3080001 |
3085000 |
6163638 |
|
| ------------------ |
|
------------------ |
|
| 1861 |
|
24931620 |
|
| ========== |
|
========== |
|
|
| Categories
of Shareholders |
|
Numbers |
Shares Held |
Percentage |
|
|
| Individuals |
|
1836 |
17308847 |
69.425 |
|
| Investment
companies |
|
9 |
1767573 |
7.089 |
|
| Insurance
companies |
|
5 |
375000 |
1.504 |
|
| Financial
institutions |
|
6 |
2404800 |
9.646 |
|
| Modaraba
companies |
|
2 |
668600 |
2.683 |
|
| Others * |
|
3 |
2406800 |
9.653 |
|
|
|
------------------ |
------------------ |
------------------ |
|
| Total |
|
1861 |
24931620 |
100.000 |
|
|
========== |
========== |
========== |
|
|
| * Others |
|
| Non Resident |
|
2 |
638800 |
2.562 |
|
| Foreign
company |
|
|
|
|
| Trust |
|
1 |
1768000 |
7.091 |
|
|
|
------------------ |
------------------ |
------------------ |
|
|
|
3 |
2406800 |
9.653 |
|
|
|
========== |
========== |
========== |
|
|
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of Tandlianwala Sugar Mills Limited as
at September 30, 2000 and the |
|
| related
profit and loss account, cash flow statement and the 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 auditing standards as applicable in
Pakistan. These standards require that we |
|
| plan
and perform the audit to obtain reasonable assurance about whether the above
said statements are free of any material |
|
| misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the above |
|
| said
statements. An audit also includes assessing the accounting policies and
significant estimates made by management, |
|
| as
well as, evaluating the overall presentation of the above said statements. We
believe that our audit provides a |
|
| reasonable
basis for our opinion and, after due verification, we report that: |
|
|
|
|
| (a)
in our opinion, proper books of 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 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 September 30, 2000
and of the profit, its cash flows |
|
| and
changes in equity for the year then ended; and |
|
|
|
|
|
| (d)
without qualifying our report, we draw attention to note 4.1 to the financial
statements. The management has |
|
| classified
road cess of Rs 86.9 million as long term liability based on legal opinion on
the road cess case. |
|
|
|
|
| (e)
in our opinion no Zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
|
|
| LAHORE |
|
|
TASEER HADI KHALID & CO. |
|
| April 07, 2001 |
|
|
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET AS AT SEPTEMBER 30, 2000 |
|
|
| SHARE
CAPITAL AND RESERVES |
Note |
2000 |
1999 |
|
|
|
|
(Rupees) |
(Rupees) |
|
|
| AUTHORISED
CAPITAL |
|
| 25,000,000
Ordinary shares of Rs. 10/- each |
|
250,000,000 |
250,000,000 |
|
|
========== |
========== |
|
|
| ISSUED,
SUBSCRIBED AND PAID-UP CAPITAL |
|
| 24,931,620
Ordinary shares of Rs. 10/- each fully paid in cash |
249,316,200 |
249,316,200 |
|
|
|
|
| UNAPPROPRIATED
PROFIT |
|
|
87,833,960 |
64,769,085 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
337,150,160 |
314,085,285 |
|
|
|
| LONG
TERM LOANS - SECURED |
3 |
119,947,682 |
172,260,716 |
|
|
|
|
|
| LONG
TERM AND DEFERRED LIABILITIES |
|
|
|
| Staff
retirement benefits |
|
|
10,252,724 |
9,153,753 |
|
| Other
long term liabilities |
|
4 |
150,306,451 |
156,817,139 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
160,559,175 |
165,970,892 |
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
| Current
maturity of long term liabilities |
5 |
103,762,750 |
59,249,073 |
|
| Short
term borrowings - secured |
|
6 |
0 |
50,000,000 |
|
| Creditors,
accrued and other liabilities |
7 |
95,341,580 |
130,905,297 |
|
| Provision
for taxation |
|
|
5,605,016 |
5,499,228 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
204,709,346 |
245,653,598 |
|
|
|
|
|
| CONTINGENCIES
AND COMMITMENTS |
8 |
0 |
0 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
822,366,363 |
897,970,491 |
|
|
|
========== |
========== |
|
|
| These
accounts should be read in conjunction with the annexed notes. |
|
|
| LAHORE |
|
| APRIL 07, 2001 |
|
|
| PROPERTY
AND ASSETS |
|
|
|
|
|
|
| FIXED ASSETS |
|
| Tangible
fixed assets - at cost |
|
| less
accumulated depreciation |
|
9 |
701,780,814 |
736,729,740 |
|
|
| CURRENT
ASSETS |
|
|
|
| Stores
and spares |
|
10 |
46,966,518 |
44,906,112 |
|
| Stocks in trade |
|
11 |
501,427 |
39,155,187 |
|
| Trade
debtors - unsecured, considered good |
|
0 |
2,418,360 |
|
| Advances,
deposits, prepayments and other receivables |
12 |
68,772,933 |
38,596,711 |
|
| Cash
and bank balances |
|
13 |
4,344,671 |
36,164,381 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
120,585,549 |
161,240,751 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
822,366,363 |
897,970,491 |
|
|
========== |
========== |
|
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 2000 |
|
|
|
Note |
2000 |
1999 |
|
|
|
(Rupees) |
(Rupees) |
|
|
|
|
| Sales |
|
14 |
919,013,328 |
1,201,924,758 |
|
| Cost of sales |
|
15 |
(798,812,902) |
(1,040,742,895) |
|
|
|
|
------------------ |
------------------ |
|
| GROSS
PROFIT |
|
|
120,200,426 |
161,181,863 |
|
|
|
| OPERATING
EXPENSES |
|
|
|
| Administrative |
|
16 |
(26,918,502) |
(25,659,366) |
|
| Selling
and distribution |
|
17 |
(2,775,633) |
(25,647,443) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(29,694,135) |
(51,306,809) |
|
|
|
|
------------------ |
------------------ |
|
| OPERATING
PROFIT |
|
|
90,506,291 |
109,875,054 |
|
| FINANCIAL
CHARGES |
|
18 |
(62,465,555) |
(95,271,282) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
28,040,736 |
14,603,772 |
|
|
|
|
|
|
| OTHER
INCOME |
|
19 |
1,074,992 |
2,678,088 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
29,115,728 |
17,281,860 |
|
| WORKERS'
PROFIT PARTICIPATION FUND |
|
(1,455,786) |
(864,093) |
|
|
|
------------------ |
------------------ |
|
| PROFIT
BEFORE TAXATION |
|
|
27,659,942 |
16,417,767 |
|
|
|
|
|
|
| PROVISION
FOR TAXATION U/S 80 D |
20 |
(4,595,067) |
(5,499,228) |
|
|
|
|
------------------ |
------------------ |
|
| NET
PROFIT FOR THE YEAR AFTER TAXATION |
23,064,875 |
10,918,539 |
|
| UNAPPROPRIATED
PROFIT BROUGHT FORWARD |
64,769,085 |
53,850,546 |
|
|
|
|
------------------ |
------------------ |
|
| UNAPPROPRIATED
PROFIT CARRIED FORWARD |
87,833,960 |
64,769,085 |
|
|
|
|
========== |
========== |
|
| EARNINGS
PER SHARE |
|
24 |
0.93 |
0.44 |
|
|
|
|
========== |
========== |
|
|
| These
accounts should be read in conjunction with the annexed notes. |
|
|
| LAHORE |
|
| APRIL 07, 2001 |
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
|
(Rupees) |
(Rupees) |
|
|
|
| CASH
FLOWS FROM OPERATING ACTIVITIES |
|
| PROFIT
BEFORE TAXATION |
|
|
27,659,942 |
16,417,767 |
|
|
|
|
| ADJUSTMENT
OF ITEMS NOT INVOLVING |
|
| MOVEMENT
OF CASH |
|
| Depreciation |
|
|
38,255,566 |
39,917,185 |
|
| Staff
retirement benefits |
|
|
1,098,971 |
1,358,321 |
|
| Deferred income |
|
|
0 |
(571,618) |
|
| Profit
on sale of fixed assets |
|
|
0 |
(370,655) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
39,354,537 |
40,333,233 |
|
|
|
|
------------------ |
------------------ |
|
| CASH
GENERATED FROM OPERATIONS |
|
67,014,479 |
56,751,000 |
|
|
| (Increase)
/ Decrease in advances, deposits, prepayments |
|
| and
other receivables |
|
|
(30,176,222) |
676,875.48 |
|
| Decrease
in trade debtors |
|
|
2,418,360 |
25,296,475 |
|
| Decrease
in stock in trade |
|
|
38,653,760 |
38,743,187 |
|
| (Increase)
in stores and spares |
|
|
(2,060,406) |
(2,784,377) |
|
| (Decrease)
in short term borrowings |
|
(50,000,000) |
(64,302,841) |
|
| (Decrease)
in creditors, accrued and other liabilities |
|
(35,563,717) |
(28,702,219) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(76,728,225) |
35,937,773 |
|
|
|
|
------------------ |
------------------ |
|
| NET
CASH (OUTFLOW)/INFLOW FROM OPERATING ACTIVITIES |
(9,713,746) |
92,688,773 |
|
|
|
|
|
| CASH
FLOWS FROM INVESTING ACTIVITIES |
|
| Decrease
in long term deposits |
|
0 |
5,725,800 |
|
| Proceeds
from disposal of fixed assets |
|
0 |
1,495,285 |
|
| Additions
in fixed assets |
|
|
(3,306,640) |
(11,207,314) |
|
|
|
|
------------------ |
------------------ |
|
| NET
CASH OUTFLOW FROM INVESTING ACTIVITIES |
(3,306,640) |
(3,986,229) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(13,020,386) |
88,702,544 |
|
|
|
