| First Tri-Star Modaraba |
|
|
|
|
|
|
| Annual
Report 2000 |
|
|
|
| Contents |
|
|
| Board of Directors |
|
| Directors'
Report |
|
| Auditors'
Report |
|
| Balance
Sheet |
|
| Profit & Loss Account |
|
| Cash
Flow Statement |
|
| Notes to the Accounts |
|
| Pattern
of Certificate Holdings |
|
|
|
| Board
of Directors |
|
|
| DIRECTORS
OF MODARABA COMPANY |
|
| MR.
MOHAMMED AHMAD ISMAIL |
|
| Chairman
& Chief Executive |
|
|
| MR.
RASHID AHMAD |
|
| MR.
TAHIR AHMAD |
|
| MR.
ASAD AHMAD |
|
|
| AUDITORS |
|
| GARDEZI
& CO. |
|
| CHARTERED
ACCOUNTANTS |
|
|
| BANKERS |
|
| BANK
AL-HABIB LTD. |
|
| CITIBANK
N.A. |
|
| HABIB
BANK LTD. |
|
|
| REGISTERED
OFFICE |
|
| F/498,
S.I.T.E., |
|
| P.O.
Box 3683, |
|
| Karachi-75700. |
|
|
| MANAGEMENT
COMPANY |
|
| A.R.T.
Modaraba Management (Pvt) Ltd. |
|
|
|
| Report
of the Directors |
|
| of |
|
| A.R.T.
Modaraba Management (Pvt) Ltd. |
|
| For
the Year ended June 30, 2000. |
|
|
| The
Board of Directors of A.R.T. Modaraba Management (Pvt) Ltd, present the 10th
Annual Report of First Tri-Star |
| Modaraba
together with audited account for the year ended June 30, 2000. |
|
|
| 1.
FINANCIAL RESULTS |
|
| Financial
results are summarised as follows: |
|
|
1999 |
2000 |
|
|
(Rupees in
000's) |
|
|
| Total
Operating Profit |
|
1,624 |
1,488 |
|
| Less:
Total Operating Expenses |
|
(721) |
1,168 |
|
|
------------- |
------------- |
|
|
903 |
320 |
|
| Unappropriated
Profit brought forward |
|
4,115 |
3,871 |
|
|
------------- |
------------- |
|
| Unappropriated
Profit carried forward |
|
4,732 |
4,115 |
|
|
========== |
========== |
|
|
|
|
| 2.
DIVIDEND |
|
| The
Board in its meeting held on December 2, 2000 has not recommended any
dividend this year. |
|
|
| 3.
BUSINESS |
|
| Your
Modaraba has continued business in trading and investment. The results are
reflected in the |
|
| accounts
being presented. The general economic depression and uncertain political
situation does |
|
| not
permit to forecast anything accurately. As is common knowledge the stock
market has crashed for |
|
| various
reasons. We can only hope for the overall situation to improve in the near
future. |
|
|
| 4.
BOARD OF DIRECTORS |
|
| The
present Board of Directors assumed their office with effect from February 16,
2000 for 3 years. |
|
|
| 5.
AUDITORS |
|
| The
present Auditors M/s. Gardezi & Co., are due for retirement and being
eligible offer themselves for |
|
| reappointment
for the year ending June 30, 2001. |
|
|
| 6.
ACKNOWLEDGEMENTS |
|
| The
Board would like to place on record its appreciation of hard work of the
staff responsible for the |
|
| Modaraba's
affairs. |
|
|
|
On behalf of the Board |
|
|
|
ASAD AHMAD |
|
| Karachi:
the December 2, 2000. |
|
Executive Director |
|
|
|
| Auditors'
Report to the Members |
|
|
| We
have audited the annexed Balance Sheet of FIRST TRI-STAR MODARABA which are
representation of Modaraba |
| Company's
[ A.R.T MODARABA MANAGEMENT (PVT) LTD.] as at 30th June, 2000 and the related
Profit and Loss |
| Account,
Cash Flow Statement and Statement of changes in equity together with the
notes forming part thereof, |
|
| for
the year then ended and we state that we have obtained all the information
and explanations |
|
| which,
to the best of our knowledge and belief, were necessary for the purpose of
our audit. |
|
|
| It
is the responsibility of Modaraba'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 Modaraba Companies and Modaraba Ordinance, 1980 and
Modaraba Companies and |
| Modaraba
Rules, 1981.Our responsibility is to express an opinion on these statements
based on our audit. |
|
|
| We
conducted our audit in accordance with the auditing standards as applicable
in Pakistan. These standards |
|
| require
that we plan and perform the audit to obtain reasonable assurance about
whether the above said statements |
| are
free of any material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts |
| and
disclosures in the above said statements. An audit also includes assessing
the accounting policies and significant |
| estimates
made by management, as well as, evaluating the overall presentation of the
above said statements. We |
| believe
that our audit provides a reasonable basis for our opinion and, after due
verification, we report that: |
|
|
| a)
in our opinion, proper books of account have been kept by the Modaraba
Company as required by the |
|
| Modaraba
Companies and Modaraba (Floatation and Control) Ordinance, 1980 and Modaraba
Companies |
|
| and
Modaraba Rules, 1981. |
|
|
| 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 Modaraba Companies and Modaraba (Floatation and
Control) Ordinance, |
|
| 1980
and Modaraba Companies and Modaraba Rules, 1981 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 object of Modaraba; |
|
|
| 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 the 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 Modaraba Ordinance, 1980
and Modaraba Rules, |
|
| 1981
in the manner so required and respectively give a true and fair view of the
state of the Modaraba's |
|
| affairs
as at 30th June, 2000 and of the profit, its cash flows and changes in equity
for the year |
|
| then
ended; and |
|
|
| d)
in our opinion, no Zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
|
|
|
sd/- |
|
|
GARDEZI & CO. |
|
| Karachi
· December 2, 2000. |
|
Chartered Accountants |
|
|
|
| Balance
Sheet As At June 30, 2000 |
|
|
|
Note |
2000 |
1999 |
|
|
No. |
Rupees |
Rupees |
|
| AUTHORISED
FUND |
|
| 20,000,000
Modaraba Certificates |
|
| of
Rs. 10/- each |
|
|
200,000,000 |
200,000,000 |
|
|
========== |
========== |
|
| ISSUED,
SUBSCRIBED AND PAID-UP FUND |
|
| 14,080,000
Modaraba Certificates |
|
140,800,000 |
140,800,000 |
|
| of
Rs. 10/- each |
|
3 |
|
|
| RESERVE
AND SURPLUS |
|
| General
Reserve |
|
10,000,000 |
10,000,000 |
|
| Statutory
Reserve |
|
8,130,000 |
8,130,000 |
|
| Unappropriated
Profit |
|
4,732,340 |
4,115,146 |
|
|
------------ |
------------ |
|
|
22,862,340 |
22,245,146 |
|
|
------------ |
------------ |
|
|
163,662,340 |
163,045,146 |
|
| CURRENT
LIABILITIES |
|
| Short
Term Borrowings |
|
4 |
2,071,278 |
2,071,278 |
|
| Creditors,
Accrued and Other Liabilities |
|
5 |
2,434,016 |
636,843 |
|
| Unclaimed
Profit Distribution |
|
802,058 |
802,058 |
|
| Provision
for taxation |
|
285,000 |
80,000 |
|
|
------------ |
------------ |
|
|
5,592,352 |
3,590,179 |
|
|
------------ |
------------ |
|
|
169,254,692 |
166,635,325 |
|
|
========== |
========== |
|
| TANGIBLE
FIXED ASSETS |
|
| Operating
Assets in own use |
|
6 |
324,812 |
381,479 |
|
|
| INVESTMENTS |
|
| In Shares |
|
7 |
127,014,738 |
127,485,417 |
|
|
| CURRENT
ASSETS |
|
| Trade
Debts (Unsecured considered good) |
|
37,509,284 |
35,553,180 |
|
| Advances,
Pre-Payments and other Receivables |
8 |
2,823,612 |
2,850,089 |
|
| Cash
and Bank Balances |
|
9 |
1,582,246 |
365,163 |
|
|
|
------------ |
------------ |
|
|
41,915,142 |
38,768,429 |
|
|
------------ |
------------ |
|
|
169,254,692 |
166,635,325 |
|
|
========== |
========== |
|
| Notes
: The annexed notes form an integral
part of these accounts. |
|
|
|
MOHAMMED AHMAD ISMAIL |
|
ASAD AHMAD |
|
TAHIR AHMAD |
|
Chief Executive |
|
Director |
|
Director |
|
A.R.T. Modaraba Management (Pvt) Ltd |
|
A.R.T. Modaraba Management (Pvt) Ltd. |
|
A.R.T. Modaraba Management (Pvt) Ltd. |
|
| Karachi
· December 2, 2000 |
|
|
|
| Profit
and Loss Account |
|
| For
The year ended June 30, 2000 |
|
|
|
Note |
2000 |
1999 |
|
|
No. |
Rupees |
Rupees |
|
|
| Operating
Profit |
|
10 |
1,624,311 |
1,487,827 |
|
|
| Less
: Operating expenses |
|
11 |
(348,457) |
(559,188) |
|
| Financial
Charges |
|
12 |
(372,991) |
(608,896) |
|
|
------------ |
------------ |
|
|
(721,448) |
(1,168,084) |
|
|
------------ |
------------ |
|
|
902,863 |
319, 743 |
|
|
| Prior
Year Adjustment |
|
1,550 |
3,454 |
|
|
------------ |
------------ |
|
|
904,413 |
323,197 |
|
|
| Modaraba
Company's Management Fee |
|
82,291 |
-- |
|
|
------------ |
------------ |
|
|
| Profit
before Taxation |
|
822,194 |
323,197 |
|
| Provision
for Taxation |
|
205,000 |
80,000 |
|
|
------------ |
------------ |
|
| Profit
after Taxation |
|
617,194 |
243,197 |
|
| Un-appropriated
profit brought forward |
|
4,115,146 |
3,871,949 |
|
|
------------ |
------------ |
|
| Un-appropriated
profit carried forward |
|
4,732,340 |
4,115,146 |
|
|
========== |
========== |
|
| Earning
Per Share |
|
13 |
0.04 |
0.02 |
|
|
|
|
|
| Notes:
The annexed notes form an integral part of these accounts. |
|
|
|
MOHAMMED AHMAD ISMAIL |
|
ASAD AHMAD |
|
TAHIR AHMAD |
|
|
Chief Executive |
|
Director |
|
Director |
|
|
A.R.T. Modaraba |
|
A.R.T. Modaraba |
|
A.R.T. Modaraba |
|
|
Management (Pvt) Ltd. |
|
Management (Pvt) Ltd. |
|
Management (Pvt) Ltd. |
|
|
|
| Cash
Flow Statement |
|
| For
the Year ended June 30,2000 |
|
|
|
|
|
Note |
2000 |
1999 |
|
|
No. |
Rupees |
Rupees |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| Profit
before Taxation |
|
822,194 |
323,197 |
|
| Add:
Items not involving movement of cash |
|
|
| Depreciation |
|
56,667 |
68,106 |
|
|
------------ |
------------ |
|
|
878,861 |
391,303 |
|
| CHANGES
OF WORKING CAPITAL |
|
14 |
|
| (Increase)/Decrease
in Current Assets |
|
(1,929,630) |
488,507 |
|
| Increase/(Decrease)
in Current Liabilities |
|
1,797,173 |
(1,677,049) |
|
|
------------ |
------------ |
|
| Net
Changes in Working Capital |
|
(132,457) |
(1,188,542) |
|
|
------------ |
------------ |
|
| Net
Cash Flow from Operating Activities |
|
746,404 |
(797,239) |
|
|
|
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
| Purchase
of investments |
|
-- |
(3,454) |
|
| Sale
of investments |
|
470,679 |
483,906 |
|
|
------------ |
------------ |
|
| Net
cash Flow from Investing Activities |
|
470,679 |
480,452 |
|
|
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
| Profit
distributed |
|
-- |
(13,382) |
|
|
------------ |
------------ |
|
| Net
Cash Flow from Financing Activities |
|
-- |
(13,382) |
|
|
------------ |
------------ |
|
| Net
lncrease/(Decrease) in cash & cash equivalent |
|
1,217,083 |
(330,169) |
|
| Cash
and cash equivalent at the beginning of the year |
|
(1,706,115) |
(1,375,946) |
|
|
------------ |
------------ |
|
| Cash
and cash equivalent at the end of June 30 |
15 |
(489,032) |
(1,706,115) |
|
|
========== |
========== |
|
|
|
| Notes
to the Accounts |
|
| For
the year ended June 30, 2000. |
|
|
| 1.
LEGAL STATUS AND NATURE OF BUSINESS |
|
| First
Tri-Star Modaraba was formed under the Modaraba Companies and Modaraba
(Floatation and |
|
| Control)
Ordinance, 1980 and the Rules framed thereunder and is managed by A.R.T.
Modaraba |
|
| Management
(Pvt) Limited. |
|
|
| The
Modaraba is a perpetual, multipurpose, multidimensional Modaraba and is
primarily engaged in |
|
| leasing
of Plant and Machinery, Motor Vehicles (both Commercial and Private),
Computer etc., providing |
|
| finance
on Morabaha and Musharika arrangements, purchases and sales of marketable
securities and |
|
| trading
of various items. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICES |
|
| (a)
Overall Valuation Policies |
|
| These
accounts have been prepared under the historical cost convention. |
|
|
| (b)
Fixed Assets: |
|
| (i)
Assets Leased out and Amortization: |
|
| Leased
assets are stated at cost less accumulated amortization. Amortization is
charged |
|
| to
income applying the straight-line method whereby the depreciable values of
assets are |
|
| amortized
over its lease period. |
|
|
| (ii) Assets in Own Use and Depreciation: |
|
| Operating
assets are stated at cost less accumulated depreciation. Depreciation is
charged |
|
| to
income applying the reducing balance method whereby the cost of an assets is
written |
|
| off
over its estimated useful life. Full year's depreciation is charged on
addition while no |
|
| depreciation
is charged on assets disposed off during the year. |
|
|
| (c)
Trading Stock: |
|
| These
are stated at cost determined on the moving average basis except for goods
-in-transit |
|
| which
are stated at invoice value plus other charges paid thereon. |
|
|
| (d)
Investments: |
|
| (i)
Investments are valued at cost. |
|
| (ii)
Profit or Loss on sale is accounted for in the year in which it arise. |
|
| (iii)
Full Provision is made against permanent diminution in the value of
investments. |
|
|
| (e)
Revenue Recognition: |
|
| (i)
Rental income is recognised as and when lease rentals become due on a
systematic basis over |
|
| the
lease period. |
|
|
| (ii)
Profit on Modaraba finance is recorded on accrual basis, calculated on number
of days funds were |
|
| utilised. |
|
|
| (iii) Dividend income is recognised when right to
receive the same is established. |
|
|
| (iv)
Sale of goods are recognised on despatch of goods to customers. |
|
|
|
2000 |
1999 |
|
|
Rupees |
Rupees |
|
| 3.
ISSUED, SUBSCRIBED AND PAID-UP CAPITAL |
|
| 11,900,000
Modaraba Certificates |
|
| of
Rs. 10/- each fully paid in cash. |
|
119,000,000 |
119,000,000 |
|
|
| 2,180,000
Modaraba Certificates of Rs. 10/- |
|
| each
issued as fully Bonus Certificates. |
|
21,800,000 |
21,800,000 |
|
|
------------ |
------------ |
|
|
140,800,000 |
140,800,000 |
|
|
========== |
========== |
|
|
|
|
| 4.
SHORT TERM BORROWINGS |
|
| From
Commercial Bank (Secured) |
|
2,071,278 |
2,071,278 |
|
|
========== |
========== |
|
|
|
|
| 4.1
Secured by pledge over shares of public limited companies. |
|
| 4.2
Carries mark-up @50 paisas per thousand per day. |
|
|
| 5.
CREDITORS, ACCRUED AND OTHER LIABILITIES |
|
| Accrued
Expenses |
|
107,273 |
28,873 |
|
| Accrued
mark-up on Short Term Borrowings |
|
980,800 |
607,970 |
|
| Modaraba
Management Fee |
|
82,219 |
--- |
|
| Other
Liabilities |
|
1,263,724 |
--- |
|
|
------------ |
------------ |
|
|
2,434,016 |
636,843 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 6.
TANGIBLE FIXED ASSETS |
|
|
Cost |
Addition/ |
Cost |
|
Depreciation |
Accumulated |
Written Down |
|
as on |
(Disposal) |
as on |
Rate |
Charged for |
Depreciation |
Value as on |
| PARTICULARS |
01.07.99 |
during the year |
30.06.2000 |
% |
year |
as on 30.06.200 |
30.06.2000 |
| Motor Car |
|
896,150 |
-- |
896,150 |
20% |
36,148 |
751,559 |
144,591 |
|
|
|
|
| Furniture & |
|
|
|
|
| Fixture |
|
107,900 |
-- |
107,900 |
10% |
5,127 |
61,761 |
46,139 |
|
|
|
|
| Motorcycle |
|
|
|
|
|
29,400 |
-- |
29,400 |
20% |
888 |
25,849 |
3,551 |
| Office |
|
|
|
|
| Equipment |
|
256,432 |
-- |
256,432 |
10% |
12,600 |
143,036 |
113,396 |
| Computer |
|
43,700 |
-- |
43,700 |
10% |
1,904 |
26,565 |
17,135 |
|
------------ |
------------ |
------------ |
------------ |
------------ |
------------ |
------------ |
| 2000 Rupees |
|
1,333,582 |
-- |
1,333,582 |
|
56,667 |
1,008,770 |
324,812 |
|
------------ |
------------ |
------------ |
------------ |
------------ |
------------ |
------------ |
| 1999 Rupees |
|
1,333,582 |
-- |
1,333,582 |
|
68,106 |
952,103 |
381,479 |
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
| 7.
INVESTMENT IN SHARES |
|
| The
holding are in ordinary shares/certificates of the face value of Rs. 10/-
each. |
|
|
| No.of |
|
| Shares/Certificates |
QUOTED: |
|
Cost |
|
| 2000 |
1999 |
Associated Undertakings |
|
2000 |
1999 |
|
| 4,001,455 |
4,001,455 |
Second Tri-Star Modaraba |
|
28,057,681 |
28,057,681 |
|
| 1,799,081 |
1,799,081 |
Tri Star Polyester Ltd. |
|
25,224,133 |
25,224,133 |
|
| 1,214,900 |
1,214,900 |
Tri-Star Power Ltd. |
|
23,557,122 |
23,557,122 |
|
| 3,740,000 |
3,740,000 |
Tri-Star Energy Ltd.
(Un-quoted) |
37,400,000 |
37,400,000 |
|
|
------------ |
------------ |
|
|
114,238,936 |
114,238,936 |
|
|
OTHERS |
|
| 5,000 |
5,000 |
12th ICP Mutual Fund Ltd. |
|
160,640 |
160,640 |
|
| 302 |
302 |
First Crescent Modaraba |
|
4,545 |
4,545 |
|
| 1,599 |
1,599 |
First Grindlays Modaraba |
|
32,381 |
32,381 |
|
| 70 |
70 |
First IBL Modaraba |
|
1,860 |
1,860 |
|
| 1,725 |
1,725 |
Orix Leasing Pakistan
Ltd. |
|
72,893 |
72,893 |
|
| 9,136 |
9,136 |
Saudi Pak Leasing Ltd. |
|
215,904 |
215,904 |
|
| 444 |
444 |
Askari Commercial Bank
Ltd. |
7,669 |
7,669 |
|
| 966 |
1,805 |
Bank AI-Habib Ltd. |
|
22,200 |
49,777 |
|
| 400 |
400 |
Islamic Investment Bank
Ltd. |
2,757 |
2,757 |
|
| 390 |
313 |
Soneri Bank Ltd. |
|
9,470 |
9,470 |
|
| 500 |
500 |
Business & Ind.
Insurance Co. Ltd. |
5,000 |
5,000 |
|
| 40,750 |
40,750 |
Azam Textile Mills Ltd. |
|
741,875 |
741,875 |
|
| 2,600 |
2,600 |
Faisal Spinning Mills
Ltd. |
|
81,013 |
81,013 |
|
| 17,671 |
17,671 |
Mohib Textile Mills Ltd. |
|
897,530 |
897,530 |
|
| 10,000 |
10,000 |
Sana Industries Ltd. |
|
953,375 |
953,375 |
|
| 25,000 |
25,000 |
Umer Fabrics Ltd. |
|
538,075 |
538,075 |
|
| 102,350 |
102,350 |
Mohib Exports Ltd. |
|
2,436,070 |
2,436,070 |
|
| 18,408 |
26,408 |
Crescent Textile Mills
Ltd. |
|
881,885 |
1,265,165 |
|
| 21,758 |
21,758 |
Gul Ahmad Textile Mills
Ltd. |
670,019 |
670,019 |
|
| 9,127 |
9,127 |
Jubilee Spinning &
Weaving Mills Ltd. |
141,414 |
141,414 |
|
| 15,525 |
15,525 |
Kohinoor Industries Ltd. |
|
610,100 |
610,100 |
|
| 49,230 |
49,230 |
Mohd. Farooq Textile
Mills Ltd. |
1,667,083 |
1,667,083 |
|
| 10,000 |
10,000 |
Sunshine Cloth Ltd. |
|
160,900 |
160,900 |
|
| 7,986 |
7,260 |
Dewan Sugar Mills Ltd. |
|
431,036 |
431,036 |
|
| 600 |
600 |
Main Mohd. Sugar Mills
Ltd. |
6,000 |
6,000 |
|
| 5,520 |
5,520 |
Hinopak Motors Ltd. |
|
455,850 |
455,850 |
|
| 6,000 |
7,459 |
Engro Chemicals
(Pakistan) Ltd. |
246,032 |
305,854 |
|
| 7,000 |
7,000 |
Hoechst Marion Roussel |
|
1,124,480 |
1,124,480 |
|
| 128 |
128 |
Packages Ltd. |
|
7,816 |
7,816 |
|
| 2,000 |
2,000 |
Cherat Cement Ltd. |
|
83,600 |
83,600 |
|
| 5,000 |
5,000 |
Tri-Pack Films Ltd. |
|
101,000 |
101,000 |
|
| 123 |
123 |
Shell Pakistan Ltd. |
|
5,330 |
5,330 |
|
| 43 |
43 |
Dewan Salman Fibre Ltd. |
|
-- |
-- |
|
|
------------ |
------------ |
|
| Market
Value Rs. 48,226,369 (1999:Rs.50,387,414 |
|
127,014,738 |
127,485,417 |
|
|
========== |
========== |
|
|
|
|
|
2000 |
1999 |
|
|
Rupees |
Rupees |
|
| 8.
ADVANCES, PRE-PAYMENTS AND OTHER RECEIVABLES |
|
| Dividend
Income Receivable |
|
2,801,019 |
2,831,019 |
|
| Advance
Income Tax |
|
22,593 |
19,067 |
|
