| The Burewala Textile Mills Limited |
|
|
|
|
|
|
|
| Annual
Report 2000 |
|
|
|
| CONTENTS |
|
|
| Company Information |
|
| Financial Highlights |
|
| Notice of Annual General
Meeting |
|
| Directors'
Report |
|
| Auditors' Report to the Members |
|
| Balance Sheet |
|
| Profit
and Loss Account |
|
| Cash
Flow Statement |
|
| Statement
of Changes in Equity |
|
| Notes
to the Accounts |
|
| Pattern of Shareholdings |
|
|
|
| COMPANY
INFORMATION |
|
|
| Board
of Directors |
Ahmed Dawood |
|
|
M. Hussain Dawood (Chief
Executive) |
|
|
Shahzada Dawood |
|
|
Khawaja Amanullah |
|
|
Mohammad Aslam |
|
|
Malik Mushtaq Ali Khan |
|
|
Iftikhar Ahmed Dar |
|
|
| Company
Secretary |
Aftab Ahmed Qaiser |
|
|
| Auditors |
|
Rahman Sarfaraz & Co. |
|
|
Chartered Accountants |
|
|
| Bankers |
|
Habib Bank Limited |
|
|
United Bank Limited |
|
|
National Bank of Pakistan |
|
|
| Registered
Office |
35-A, Shahrah-e-Abdul
Hameed Bin Baadees |
|
|
(Empress Road), Lahore. |
|
|
Phones: (042) 6301601 -
07 |
|
|
| Mills |
|
Dawoodabad, |
|
|
District Vehari. |
|
|
Phones: (0447) 53246,
53145, 53347 |
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|
|
| FINANCIAL
HIGHLIGHTS |
|
| Five
Years at a Glance |
|
|
|
(All amounts in thousands) |
|
| Particulars |
|
2000 |
1999 |
1998 |
1997 |
1996 |
|
| Turnover |
|
431,110 |
373,605 |
360,098 |
445,668 |
475,436 |
|
| Profit
before taxation |
|
81,969 |
32,318 |
38,460 |
32,490 |
45,485 |
|
| !Profit
after taxation |
|
60,469 |
33,113 |
39,190 |
48,961 |
33,743 |
|
| 'Paid
up capital |
|
73,074 |
73,074 |
73,074 |
73,074 |
73,074 |
|
| Number
of shares (numbers) |
|
7,307,405 |
7,307,405 |
7,307,405 |
7,307,405 |
7,307,405 |
|
| Owners'
equity |
|
337,929 |
335,919 |
353,957 |
333,036 |
320,612 |
|
| Break
up value of |
|
| shares
of Rs. 10 each (rupees) |
46.25 |
45.97 |
48.44 |
45.58 |
43.87 |
|
| Earning
per share-basic |
|
8.28 |
4.53 |
5.36 |
6.70 |
4.62 |
|
| (rupees) |
|
| Dividend
(percentage) |
|
80% |
70% |
25% |
50% |
50% |
|
| Total assets |
|
508,953 |
482,781 |
477,710 |
480,921 |
490,566 |
|
|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
|
| Notice
is hereby given that tile forty-seventh Annual General Meeting of' the
members of |
|
| The
Burewala Textile Mills Limited will Insha Allah be held on March 17, 2001 at
11:00 a.m. at the |
|
| Registered
Office of the Company at Lahore to transact the following ordinary business
after |
|
| recitation
from the Holy Quran: |
|
|
| 1.
To confirm tile minutes of the forty-sixth Annual General Meeting held on
March 21, 2000. |
|
|
| 2.
To receive, consider and adopt the Audited Accounts of the Company for the
year ended |
|
| September
30, 2000 together with tile Directors' and Auditors' Reports thereon. |
|
|
| 3.
To consider and approve payment of cash dividend as recommended by the
Directors. |
|
|
| 4.
To appoint Auditors and to fix their remuneration. The retiring Auditors M/s.
Rahman Sarfaraz |
|
| &
Co., being eligible, offer themselves for re-appointment. |
|
|
| 5.
To transact any other business with the permission of the Chairman. |
|
|
|
BY ORDER OF THE BOARD |
|
|
| Lahore |
|
Aftab Ahmed Qaiser |
|
| February
16, 2001 |
|
(Company Secretary) |
|
|
| Notes: |
|
| 1.
Tile share transfer books of the Company will remain closed from March I 0,
2001 to March 17, |
|
| 2001
(both days inclusive). |
|
|
| 2.
A member entitled to attend and vote at tile Meeting may appoint another
member as his / her |
|
| proxy
to attend and vote. Votes may be given personally or by proxy or by an
attorney or in case |
|
| of
Corporation by a duly authorized representative. The instrument of proxy duly
executed |
|
| should
be lodged at the Registered Office of the Company not later than forty-eight
hours before |
|
| the Meeting. |
|
|
| 3.
The members are requested to notify the change in addresses, if any,
immediately. |
|
|
|
| DIRECTORS'
REPORT |
|
|
| The
Directors are pleased to present their Annual Report together with the
Audited Accounts for the |
|
| year
ended September 30, 2000 before the forty-seventh Annual General Meeting of
the Company. |
|
|
| Financial
Results |
|
| The
gross profit has increased to Rs. 65,245,597/- during the year under review,
as compared to |
|
| Rs.
15,067,928/- for the previous year and so has the gross profit percentage to
15.13% as compared |
|
| to
4.03% for the previous year. Consequently the net profit before taxation has
reached a figure of |
|
| Rs.
81,969,238/- as compared to Rs. 32,318,102 of the previous year, after
providing for all tile |
|
| operating,
administrative, selling & distribution, financial expenses and
depreciation of |
|
| Rs.
43,221,183/- for the year. Tile summary of the financial results is being
furnished hereunder for a |
|
| quick glance. |
|
|
|
2000 |
1999 |
|
|
Rupees |
Rupees |
|
| Sales |
|
431,110,172 |
373,605,326 |
|
| Gross profit |
|
65,245,597 |
15,067.93 |
|
| Operating
profit / (loss) |
|
34,561,506 |
(16,333,237) |
|
| Other
income |
|
51,250,660 |
49,196,665 |
|
|
========== |
========== |
|
| Profit
before taxation |
|
81,969,238 |
32,318,102 |
|
| Provision
for taxation |
|
|
|
| (net
off deferred tax credit) |
|
(21,500,000) |
795,133 |
|
|
----------- |
----------- |
|
| Profit
after taxation |
|
60,469,238 |
33,113,235 |
|
| Un-appropriated
profit brought forward |
|
18,103,123 |
36,141,723 |
|
|
----------- |
----------- |
|
| Profit
available for appropriation |
|
78,572,361 |
69,254,958 |
|
|
========== |
========== |
|
|
|
|
| Dividend |
|
| The
Directors recommend a payment of cash dividend of 80% (Rs. 8 per share) on
the paid up capital |
|
| of
the Company. Accordingly the following appropriations have been made: |
|
|
| Profit
available for appropriation |
|
78,572,361 |
69,254,958 |
|
| Appropriations
: |
|
|
|
| Dividend
on ordinary shares @ 80% (1999: 70%) |
|
58,459,240 |
51,151,835 |
|
|
----------- |
----------- |
|
| Un-appropriated
profit carried forward |
|
20,113,121 |
18,103,123 |
|
|
========== |
========== |
|
| Earning
Per Share - Basic |
|
8.28 |
4.53 |
|
|
| Future
Prospects |
|
| Considering
the increase in the prices of cotton and marginal reduction in the sales
volume, for the |
|
| present,
it appears that the profitability of the Company for the next year may not be
favourably |
|
| comparable
to the profits of the year under review. Nevertheless, if the sales in the
last two quarters of |
|
| the
next year show improvement, the prospects of earnings may equal the earnings
of the year under |
|
| review. |
|
|
| Pattern
of Shareholdings |
|
| A
statement reflecting the pattern of shareholdings is attached to the Annual
Report. |
|
|
| Auditors |
|
| The
Auditors Messrs Rahman Sarfaraz & Co., Chartered Accountants retire at
the conclusion of the |
|
| Annual
General Meeting. Being eligible, offer themselves for re-appointment. |
|
|
| Staff
Relations |
|
| The
Company continues to benefit from the efforts and dedication of all its
employees. The Directors |
|
| are
pleased to record their appreciation for the hard work and devotion to duty
by all cadres of |
|
| employees. |
|
|
|
ON BEHALF OF THE BOARD |
|
|
| LAHORE |
|
M. Hussain Dawood |
|
| February
07, 2001 |
|
Chairman of the Meeting |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed Balance Sheet of THE BUREWALA TEXTILE MILLS LIMITED |
|
| as
at 30 September, 2000 and the related Profit and Loss Account, Cash Flow
Statement and |
|
| Statement
of Changes in Equity together with the notes forming part thereof, for the
year then ended |
|
| and
we state that we have obtained all the information and explanations which, to
the best of our |
|
| knowledge
and belief, were necessary for the purposes of our audit. |
|
|
| It
is the responsibility of the Company's management to establish and maintain a
system of internal |
|
| control,
and prepare and present the above said statement in conformity with the
approved |
|
| accounting
standards and the requirements of tile 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 this statement. All audit includes
examining, on a test |
|
| basis,
evidence supporting the amounts and disclosures in the above said statements.
An audit also |
|
| includes
assessing the accounting policies and significant estimates made by
management, as well |
|
| as,
evaluating the overall presentation of the above said statements. We believe
that our audit |
|
| provides
a reasonable basis for our opinion and, after due verification, we report
that |
|
|
| a)
in our opinion, proper books of accounts have been kept by the Company as
required by the |
|
| Companies
Ordinance, 1984; |
|
|
| b)
in our opinion |
|
| (i)
the Balance Sheet and Profit and Loss Account together with the notes thereon
have been |
|
| drawn
up in conformity with the Companies Ordinance, 1984, and are in agreement
with |
|
| the
books of account and are further in accordance with accounting policies
consistently |
|
| applied
except for the changes as stated in notes 2.3 and 2.7 with which we concur: |
|
|
| (ii)
the expenditure incurred during the year was for the purpose of the Company's
business; |
|
| and |
|
|
| (iii)
the business conducted, investments made and tile expenditure incurred during
the year |
|
| were
in accordance with the objects of tile Company; |
|
|
| c) in our opinion and to the best of our
information and according to tile explanations given to us, |
|
| the
Balance Sheet, Profit and Loss Account, Cash Flow Statement and Statement of
Changes in |
|
| Equity
together with tile 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
tile |
|
| state
of the Company's affairs as at 30 September, 2000 and of the profit, its cash
flow and |
|
| changes
in equity for the year then ended; and |
|
|
| d)
in our opinion Zakat deductible at source under the Zakat and Ushr Ordinance
1980 was |
|
| deducted
by the Company and deposited in the Central Zakat Fund established under
Section 7 |
|
| of
that Ordinance. |
|
|
|
RAHMAN SARFARAZ & CO. |
|
LAHORE |
|
|
CHARTERED ACCOUNTANTS |
|
February 08, 2001 |
|
|
|
| BALANCE
SHEET AS AT SEPTEMBER 30, 2000 |
|
|
|
Note |
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
| CAPITAL
AND LIABILITIES |
|
| Share
Capital & Reserves |
|
| S/tare
Capital: |
|
| Authorized |
|
3 |
150,000,000 |
150,000,000 |
|
|
|
========== |
========== |
|
| Issued,
subscribed and fully paid up |
|
4 |
73,074,050 |
73,074,050 |
|
| Reserves |
|
5 |
244,741,688 |
244,741,088 |
|
|
|
----------- |
----------- |
|
|
|
317,815,738 |
317,815,738 |
|
| Un-appropriated
Profit |
|
|
20,113,121 |
18,103,123 |
|
|
|
----------- |
----------- |
|
|
|
337,928,859 |
335,918,861 |
|
| Obligations
Under Finance Lease |
|
6 |
775,911 |
1,001,618 |
|
|
| Deferred
Liabilities |
|
| Deferred
taxation |
|
7 |
25,500,000 |
25,000,000 |
|
| Provision
for gratuity |
|
8 |
23,148,087 |
9,883,558 |
|
| Purchase
consideration |
|
-- |
1,335,702 |
|
|
----------- |
----------- |
|
|
48,648,087 |
36,219,260 |
|
| Current
Liabilities |
|
|
|
| Current
maturity of long term loan |
|
-- |
2,559,354 |
|
| Current
portion of obligations under finance lease |
6 |
225,707 |
185,590 |
|
| Creditors,
accrued charges and other liabilities |
9 |
30,690,547 |
44,265,473 |
|
| Provision
for taxation |
|
10 |
32,224,479 |
11,478,702 |
|
| Proposed
dividend on ordinary shares |
|
|
58,459,240 |
51,151,835 |
|
|
|
----------- |
----------- |
|
|
|
121,599,973 |
109,640,954 |
|
| Contingencies
and Commitments |
|
11 |
----------- |
----------- |
|
|
508,952,830 |
482,780,693 |
|
|
========== |
========== |
|
|
| PROPERTY
AND ASSETS |
|
| Operating
Fixed Assets |
|
12 |
127,063,234 |
133,718,700 |
|
| Investments |
|
13 |
64,639,262 |
64,639,262 |
|
| Long
Term Deposits |
|
1,852,282 |
1,852,282 |
|
|
|
| Current
Assets |
|
| Stores
and spare parts |
|
14 |
18,330,444 |
19,399,626 |
|
| Stock
ill trade |
|
15 |
136,584,472 |
195,911,032 |
|
| Book debts |
|
16 |
11,522,551 |
27,120,595 |
|
| Advances,
deposits prepayments and |
|
|
|
|
| other
receivables |
|
17 |
5,277,444 |
5,102,940 |
|
| Cash
and bank balances |
|
18 |
143,683,141 |
35,036,256 |
|
|
|
----------- |
----------- |
|
|
315,398,052 |
282,570,449 |
|
|
----------- |
----------- |
|
|
508,952,830 |
482,780,693 |
|
|
========== |
========== |
|
| Notes:
The annexed notes (1 to 33) form an integral part of these accounts. |
|
|
|
|
|
|
M. Hussain Dawood |
|
Khawaja Amanullah |
|
|
Chief Executive |
|
Director |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 2000 |
|
|
|
Note |
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
| Sales |
|
19 |
431,110,172 |
373,605,326 |
|
| Cost
of Goods Sold |
|
20 |
365,864,575 |
358,537,398 |
|
|
|
|
------------ |
------------ |
|
| Gross Profit |
|
|
65,245,597 |
15,067,928 |
|
| Operating
Expenses |
|
|
|
|
|
|
|
|
| Administrative
and general |
|
21 |
25,535,976 |
26,745,305 |
|
| Selling
and distribution |
|
22 |
5,148,115 |
4,655,860 |
|
|
|
------------ |
------------ |
|
|
|
30,684,091 |
31,401,165 |
|
|
|
------------ |
------------ |
|
| Operating
Profit / (Loss) |
|
|
34,561,506 |
(16,333,237) |
|
| Other
income |
|
23 |
51,250,660 |
49,196,665 |
|
|
|
|
|
| Financial
and other charges |
|
24 |
3,842,928 |
545,326 |
|
|
|
------------ |
------------ |
|
| Profit
Before Taxation |
|
81,969,238 |
32,318,102 |
|
|
| Provision
for taxation: |
|
| -Current |
|
(21,000,000) |
(1,900,000) |
|
| - Deferred |
|
(500,000) |
2,695,133 |
|
|
------------ |
------------ |
|
|
(21,500,000) |
795,133 |
|
|
------------ |
------------ |
|
| Profit
After Taxation |
|
60,469,238 |
33,113,235 |
|
|
| Un-appropriated
Profit Brought Forward |
|
18,103,123 |
36,141,723 |
|
|
------------ |
------------ |
|
| Profit
available for appropriation |
|
78,572,361 |
69,254,958 |
|
|
| Appropriations: |
|
| Proposed
dividend on ordinary shares |
|
58,459,240 |
51,151,835 |
|
|
------------ |
------------ |
|
| Un-appropriated
Profit Carried Forward |
|
20,113,121 |
18,103,123 |
|
|
========== |
========== |
|
| Earning
Per Share - Basic |
|
25 |
8.28 |
4.53 |
|
|
|
|
|
|
| Notes:
The annexed notes (1 to 33) form an integral part of these accounts. |
|
|
|
M. Hussain Dawood |
|
Khawaja Amanullah |
|
|
Chief Executive |
|
Director |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 2000 |
|
|
|
Note |
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| Cash
generated from operations |
|
26 |
170,014,536 |
30,253,688 |
|
| Less:
Payments: |
|
| - Income tax |
|
(254,224) |
(2,313,067) |
|
| -
Staff gratuity |
|
(6,164,021) |
(6,455,834) |
|
|
(6,418,245) |
(8,768,901) |
|
| Net
cash inflow from operating activities |
|
163,596,291 |
21,484,787 |
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
| Fixed
capital expenditure |
|
(6,314,803) |
(112,500) |
|
| Sale
proceeds of fixed assets |
|
95,652 |
-- |
|
| Assets
on lease |
|
-- |
(1,380,018) |
|
| Long
term deposits |
|
-- |
( 139,887) |
|
|
------------ |
------------ |
|
| Net
cash (outflow) from investing activities |
|
(6,219,151) |
(1,632,405) |
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
| Obligations
under finance lease (net) |
|
(225,707) |
1,001,618 |
|
| Dividend
paid |
|
(48,504,548) |
(24,625.754) |
|
|
------------ |
------------ |
|
| Net
cash (outflow) from financing activities |
|
(48,730,255) |
(23,624.136) |
|
|
|
|
| Net
increase/(decrease) in cash and cash equivalents |
|
108,646,885 |
(3,771,754) |
|
| Cash
and cash equivalents at the beginning of the year |
|
35,036,256 |
38,808,010 |
|
|
------------ |
------------ |
|
| Cash
and cash equivalents at the end of the year |
27 |
143,683,141 |
35,036,256 |
|
|
========== |
========== |
|
|
|
M. Hussain Dawood |
|
Khawaja Amanullah |
|
|
Chief Executive |
|
Director |
|
|
|
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 2000 |
|
|
|
2000 |
1999 |
|
|
Rupees |
Rupees |
|
| ISSUED,
SUBSCRIBED AND FULLY |
|
| PAID-UP
SHARE CAPITAL |
|
| 7,307,405
ordinary shares of Rs. 10 each |
|
73,074,050 |
73,074,050 |
|
| RESERVES |
|
-- |
-- |
|
|
|
----------- |
----------- |
|
| Share
premium: |
|
| Balance
as on October 01 |
|
89,535,125 |
89,535,125 |
|
| Appropriation
from/(to) profit |
|
-- |
-- |
|
|
----------- |
----------- |
|
| Balance
as on September 30 |
|
89,535,125 |
89,535,125 |
|
|
|
|
| Capital
reserve: |
|
|
|
| Balance
as on October 01 |
|
6,563 |
6,563 |
|
| Appropriation
from/(to) profit |
|
-- |
-- |
|
|
----------- |
----------- |
|
| Balance
as on September 30 |
|
6,563 |
6.56 |
|
|
|
|
| General
reserve: |
|
|
|
| Balance
as on October 01 |
|
155,200,001 |
155,200,000 |
|
| Appropriation
from/(to) profit |
|
-- |
-- |
|
|
------------ |
------------ |
|
|
| Balance
as on September 30 |
|
155,200,000 |
155,200,000 |
|
|
|
|
|
| UN-APPROPRIATED
PROFIT |
|
|
|
| Balance
as on October 01, as previously reported |
|
18,103,123 |
36,141,723 |
|
| Profit
for the year after taxation |
|
60,469,238 |
33,113,235 |
|
| Dividend
final |
|
(58,459,240) |
(51,151,835) |
|
|
------------ |
------------ |
|
| Balance
as on September 30 |
|
20,113,121 |
18,103,123 |
|
|
------------ |
------------ |
|
| OWNERS'
EQUITY |
|
337,928,859 |
335,918,861 |
|
|
========== |
========== |
|
|
|
|
|
|
M. Hussain Dawood |
|
Khawaja Amanullah |
|
|
Chief Executive |
|
Director |
|
|
|
|
| NOTES
TO THE ACCOUNTS |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 2000 |
|
|
| 1.
THE COMPANY AND ITS OPERATIONS |
|
| Tile
Company was incorporated in Pakistan oil April 06, 1954 as a public limited
company. Its |
|
| shares
are quoted on the Karachi and Lahore Stock Exchanges. It is engaged in the
manufacture |
|
| and
sale of cotton yarns and fabrics. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
| 2.1
Basis of preparation |
|
| These
financial statements have been prepared in accordance with the requirements
of |
|
| the
Companies Ordinance 1984 and International Accounting Standards as applicable
in |
|
| Pakistan. |
|
|
| 2.2
Accounting convention |
|
| These
financial statements have been prepared under historical cost convention.
without |
|
| any
adjustment for tile effect of inflation or reference to current values. |
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