| Fateh Industries Limited |
|
|
|
|
|
|
| Annual
Report 2001 |
|
|
|
| Notice
of Annual General Meeting |
|
|
| Notice
is hereby given that the 16th Annual General Meeting of the Shareholders of |
|
| FATEH
INDUSTRIES LIMITED, will be held on Monday the 10th December, 2001 |
|
| at
8:30 a.m. at the registered office of the Company at Mirpurkhas Road,
Hyderabad for |
|
| the
purpose of transacting the following business:- |
|
|
| 1.
To confirm the minutes of the last Annual General Meeting of the Company held
on |
|
| December
18th, 2000. |
|
|
|
|
|
| 2.
To receive, consider and adopt the Audited Accounts for the year ended 30th
June, |
|
| 2001
together with Director's and Auditor's Reports thereon. |
|
|
| 3.
To appoint Auditors for the year 2001-2002 anti fix their remuneration. |
|
|
| 4.
Any other business with the permission of the Chair. |
|
|
|
|
|
By order of the Board |
|
|
|
|
FATEH INDUSTRIES LIMITED |
|
|
|
|
|
| Hyderabad |
|
|
Muhammad lqbal Khan |
|
| 19th
November, 2001 |
|
Company Secretary |
|
|
| NOTES: |
|
|
| 1.
The share transfer books of the Company will remain closed for 7 days from
4th |
|
| to
10th December, 2001(both days inclusive). |
|
|
| 2.
Any member of the Company who is entitled to attend and vote may appoint any |
|
| other
member of the Company as his/her Proxy to attend and vote in his/her stead. |
|
|
|
|
| 3.
Proxies in order to be effective must be received by the Company at the
Registered |
|
| Office
not later than 48 hours before the time of holding the meeting. |
|
|
| 4.
Shareholders are required to notify the change of their address, if any,
immediately. |
|
|
|
| Company
Profile |
|
|
| MANAGING
DIRECTOR & |
|
| CHIEF
EXECUTIVE |
|
| Mr. Saeed Alam |
|
|
| DIRECTORS |
|
| Mr. Rauf Alam |
|
| Mr. Aftab Alam |
|
| Mr.
Muhammad Mohsin |
|
| Mr.
Muhammad Naveed |
|
| Mrs.
Jamila Alam |
|
| Mrs.
Najma Roshan |
|
|
| SECRETARY |
|
| Mr.
Muhammad Iqbal Khan |
|
|
|
| AUDITORS |
|
| M/s.
Moosa & Company |
|
| Chartered
Accountants, |
|
| Karachi. |
|
|
| BANKERS |
|
|
|
| United
Bank Limited |
|
|
|
|
|
|
| REGISTERED
OFFICE |
|
|
|
| Mirpurkhas
Road, |
|
|
|
| Hyderabad. |
|
|
|
|
| BRANCH
OFFICE |
|
| 7th
Floor, Suit # 706, |
|
| Business
& Finance Centre, |
|
| I.
I. Chundrigar Road, |
|
| Karachi. |
|
|
| PLANT |
|
|
|
| Mirpurkhas
Road, |
|
|
|
| Hyderabad. |
|
|
|
|
|
|
| Directors'
Report to the Members |
|
|
|
| On
behalf of the Board of Directors I welcome you on the 16th Annual General
Meeting of |
|
| your
Company M/s. Fateh Industries Ltd., and present before you the audited
accounts |
|
| and
Auditors' Report for the year ended on June 30, 2001. |
|
|
| Operations |
|
| The
Factory remained closed for the whole year 2000-2001. The net loss for the
year was |
|
| Rs.
31.9 million. This figure includes loss of Rs. 31.7 million being the
depleted value of finished |
|
| and
semi finished inventory. This is taken as an administrative expense in the
books. |
|
|
| Accrual
of financial expense has not been done as the Company has gone in to the
legal |
|
| options
with the bank. |
|
|
| Financial
Results & Appropriations |
|
| In
view of the accumulated losses the Board of Directors has decided to transfer
the |
|
| general
reserves amounting to Rs. 30 million to the Profit and Loss Account and a not |
|
| accumulated
loss of Rs. 132.5 million has been transferred to Balance Sheet |
|
|
| Auditors
Observation |
|
| The
Auditors of the company while qualifying their report under review have
observe that |
|
| accounts
have been prepared on going concern basis the validity of which depends on
the |
|
| support
of Directors towards providing working capital and other finance to the
Company. |
|
| Your
directors fully endorse the viewpoint of the Auditors of the Company. |
|
|
| Pattern
of Shareholding |
|
| The
pattern of shareholding required under section 236 of the Companies Ordinance |
|
| 1984 is annexed. |
|
|
| Appointment
of Auditors |
|
| The
retiring auditors M/S. Moosa & Company, Charted Accountants, being
eligible offer |
|
| themselves
for reappointment. |
|
|
| Staff
and Management Relations |
|
| The
Board of Directors places on record its sincere appreciations on the services
rendered |
|
| by
the company's employees and the co-operation received from the Banker. |
|
|
|
|
|
SAEED ALAM |
|
|
|
|
CHAIRMAN |
|
| Dated:
12th November, 2001 |
|
BOARD OF DIRECTORS |
|
|
|
| Pattern
of Shareholdings as at June 30, 2001 |
|
|
| No. of |
|
Total |
|
| Share |
|
Shareholding |
|
Shares |
|
| Holders |
|
Held |
|
|
|
| 453 |
From |
1 |
To |
100 |
38,133 |
|
| 120 |
From |
101 |
To |
500 |
32,970 |
|
| 39 |
From |
501 |
To |
1000 |
26,625 |
|
| 6 |
From |
1001 |
To |
5000 |
12,600 |
|
| 5 |
From |
5001 |
To |
10000 |
42,719 |
|
| 1 |
From |
10001 |
To |
15000 |
14,737 |
|
| 1 |
From |
15001 |
To |
20000 |
16,174 |
|
| 2 |
From |
30001 |
To |
35000 |
67,399 |
|
| 1 |
From |
35001 |
To |
40000 |
38,269 |
|
| 2 |
From |
40001 |
To |
45000 |
87,122 |
|
| 1 |
From |
45001 |
To |
50000 |
46,853 |
|
| 1 |
From |
50001 |
To |
55000 |
51,371 |
|
| 2 |
From |
55001 |
To |
60000 |
114,325 |
|
| 1 |
From |
60001 |
To |
65000 |
62,102 |
|
| 1 |
From |
70001 |
To |
75000 |
72,014 |
|
| 2 |
From |
95001 |
To |
100000 |
197,816 |
|
| 1 |
From |
100001 |
To |
105000 |
100,891 |
|
| 1 |
From |
110001 |
To |
115000 |
111,905 |
|
| 1 |
From |
115001 |
To |
120000 |
116,148 |
|
| 2 |
From |
120001 |
To |
125000 |
246,502 |
|
| 1 |
From |
140001 |
To |
145000 |
141,456 |
|
| 1 |
From |
165000 |
To |
170000 |
169,333 |
|
| 1 |
From |
190001 |
To |
195000 |
192,527 |
|
| ------------------ |
|
------------------ |
|
| 646 |
|
2,000,000 |
|
| ========== |
|
========== |
|
|
| Categories of |
|
Numbers |
Shares |
Percentage |
|
| Shareholders |
|
|
Held |
|
|
|
| Individuals |
|
641 |
1,946,917 |
97.35% |
|
| Investment
Companies |
|
3 |
51,499 |
2.57% |
|
| Insurance
Companies |
|
0 |
0 |
0.00% |
|
| Joint
Stock Companies |
|
2 |
1,584 |
0.08% |
|
| Financial
Institutions |
|
0 |
0 |
0.00% |
|
| Modaraba
Companies others |
|
0 |
0 |
0.00% |
|
|
------------------ |
------------------ |
------------------ |
|
| TOTAL |
|
646 |
2,000,000 |
100.00% |
|
|
========== |
========== |
========== |
|
|
|
| Auditors'
Report to the Members |
|
|
| We
have audited the annexed balance sheet of FATEH INDUSTRIES LIMITED as at |
|
| June
30, 2001, the related profit & 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. |
|
|
| The
accounts have been prepared this year also on a going concern basis the
validity |
|
| of
which depends on the support from directors of the company towards providing |
|
| working
capital and other Finance in the absence of which the basis would not be
valid |
|
| and
adjustment would have to be made for any gain or loss arising on realization
of |
|
| Company'
s assets. |
|
|
| We
draw attention to the fact that the company has been incurring losses for a
number |
|
| of
years and accumulated losses exceed the issued, subscribed and paid-up
capital by |
|
| Rs.
112.521 million. The current liabilities of the company exceeded its current
assets |
|
| by
Rs.191.798 million .Tim ability of the company to continue as a going concern
is |
|
| dependent
on the prospect of operating profitably in the future and to be able to |
|
| continue
to obtain working capital finance. |
|
|
| It
is the responsibility of the company's management to establish and maintain a |
|
| system
for 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
conduct our audit in accordance with the auditing standard 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 for any materials |
|
| misstatement.
An audit included examining, on it test basis, evidence supporting the |
|
| amount
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 & 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 accounts 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, profit & loss account, cash flow statement and |
|
| statement
of changes in equity together with the notes forming part thereof, |
|
| confirm
with approved accounting standard 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 |
|
| June
30, 2001 and of the loss, 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. |
|
|
|
|
|
MOOSA & COMPANY |
|
| Karachi:
12 November, 2001 |
|
Chartered Accountants |
|
|
|
| Accounts
2000-2001 |
|
|
|
|
| Balance
Sheet as at June 30, 2001 |
|
|
| CAPITAL
AND LIABILITIES |
|
NOTE |
30-06-2001 |
30-06-2000 |
|
|
|
NO. |
RUPEES |
RUPEES |
|
|
|
| SHARE
CAPITAL AND RESERVES |
|
|
| Authorised
Capital |
|
| 10,000,000
ordinary shares of Rs. 10/- each |
|
100,000,000 |
100,000,000 |
|
|
|
========== |
========== |
|
|
|
|
| Shareholders'
Equity |
|
|
|
| Issued,
subscribed and paid up share capital |
3 |
20,000,000 |
20,000,000 |
|
| General reserve |
|
4 |
-- |
30,000,000 |
|
| Unappropriated
loss |
|
|
(132,521,776) |
(130,541,558) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(112,521,776) |
(80,541,558) |
|
| LONG
TERM LOAN |
|
5 |
19,138,956 |
19,138,956 |
|
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
| Current
portion of long term liabilities |
6 |
0 |
0 |
|
| Short
term running finances |
|
7 |
245,319,772 |
245,319,772 |
|
| Creditors,
accrued and other liabilities |
8 |
74,075,978 |
79,512,415 |
|
| Provision
for taxation |
|
9 |
200,000 |
200,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
319,595,750 |
325,032,187 |
|
|
|
------------------ |
------------------ |
|
|
226,212,930 |
263,629,585 |
|
|
|
========== |
========== |
|
|
| NOTES: |
|
|
| 1.
The annexed notes form an integral part of these accounts. |
|
| 2.
Auditor's report is attached. |
|
|
| Date:
12th November, 2001 |
|
|
|
| PROPERTY
AND ASSETS |
|
|
| TANGIBLE
FIXED ASSETS |
|
|
|
| Operating
fixed assets |
|
10 |
98,398,115 |
98,398,115 |
|
|
|
|
|
|
| LONG
TERM INVESTMENTS |
|
11 |
17,566 |
17,566 |
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Stores,
spare parts and loose tools |
12 |
8,158,130 |
8,158,130 |
|
| Stock-in-trade |
|
13 |
9,172,038 |
40,885,483 |
|
| Trade debts |
|
14 |
58,120,352 |
58,658,212 |
|
| Advances,
deposits and prepayments |
15 |
9,210,517 |
14,310,187 |
|
| Other
receivables |
|
16 |
43,045,828 |
43,106,933 |
|
| Cash
and bank balances |
|
17 |
90,384 |
94,959 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
127,797,249 |
165,213,904 |
|
|
|
|
------------------ |
------------------ |
|
|
226,212,930 |
263,629,585 |
|
|
========== |
========== |
|
|
|
SAEED ALAM |
|
RAUF ALAM |
|
MOOSA & COMPANY |
|
|
Chief Executive |
|
Director |
|
Chartered Accountants |
|
|
|
| Profit
& Loss Account for the year ended June 30, 2001 |
|
|
|
|
|
NOTE |
30-06-2001 |
30-06-2000 |
|
|
NO. |
RUPEES |
RUPEES |
|
|
| Sales |
|
18 |
0 |
0 |
|
| Cost of Sales |
|
19 |
0 |
0 |
|
|
------------------ |
------------------ |
|
| Gross Profit |
|
|
|
0 |
0 |
|
|
|
|
| Administration
expenses |
|
20 |
31,965,828 |
34,512,141 |
|
| Selling expenses |
|
21 |
0 |
41,300 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
31,965,828 |
34,553,441 |
|
|
| Operating
Profit/(Loss) |
|
|
(31,965,828) |
(34,553,441) |
|
| Other income |
|
|
22 |
610 |
30,290 |
|
|
------------------ |
------------------ |
|
|
|
|
(31,965,218) |
(34,523,151) |
|
|
|
|
------------------ |
------------------ |
|
| Financial
expenses |
|
23 |
0 |
6,517,156 |
|
| Other charges |
|
24 |
15,000 |
15,000 |
|
|
------------------ |
------------------ |
|
|
|
|
15,000 |
6,532,156 |
|
| Prior
period adjustment |
|
0 |
7,500 |
|
|
|
------------------ |
------------------ |
|
| Loss
before taxation |
|
(31,980,218) |
(41,047,807) |
|
|
| Taxation |
|
|
-- |
200,000 |
|
| Prior |
|
|
-- |
(57,498) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
0 |
142,502 |
|
|
------------------ |
------------------ |
|
| Loss
after taxation |
|
|
(31,980,218) |
(41,190,309) |
|
|
|
|
|
|
| Unappropriated
loss brought forward |
|
(130,541,558) |
(89,351,249) |
|
|
|
|
------------------ |
------------------ |
|
| Appropriations |
|
|
(162,521,776) |
(130,541,558) |
|
| Transferred
from General Reserve |
|
|
30,000,000 |
0 |
|
|
|
|
------------------ |
------------------ |
|
| Unappropriated
Loss Carried to Balance Sheet |
|
(132,521,776) |
(130,541,558) |
|
|
========== |
========== |
|
|
| Note:
The annexed notes form an integral part of these accounts. |
|
|
|
SAEED ALAM |
|
RAUF ALAM |
|
MOOSA & COMPANY |
|
|
Chief Executive |
|
Director |
|
Chartered Accountants |
|
|
| Dated:
12th November, 2001 |
|
|
|
| Statement
of Changes in Financial Position for the year ended June 30, 2001 |
|
| (Cash
Flow Statement) |
|
|
|
NOTE |
30-06-2001 |
30-06-2000 |
|
|
N O. |
RUPEES |
RUPEES |
|
|
| NET
CASH INFLOW FROM |
|
|
|
| OPERATING
ACTIVITIES |
|
A |
96,365 |
10,095,171 |
|
|
|
|
|
| Return
on investment |
|
| and
servicing of finance: |
|
| Mark-up
/ interest paid |
|
0 |
(5,234,346) |
|
| Dividend
received |
|
|
(610) |
(290) |
|
|
|
------------------ |
------------------ |
|
| Net
cash outflow from return on |
|
| investment
and servicing of finance |
|
(610) |
(5,234,636) |
|
|
| Taxation |
|
| Tax paid |
|
|
| (including
tax deducted at source) |
|
(100,330) |
(94,410) |
|
|
------------------ |
------------------ |
|
| Net
cash flow from taxation |
|
(100,330) |
(94,410) |
|
|
|
| Investing
activities |
|
| Fixed
capital expenditure |
|
|
0 |
(244,803) |
|
|
------------------ |
------------------ |
|
| Net
cash flow from investing activities |
|
0 |
(244,803) |
|
|
------------------ |
------------------ |
|
| Net
cash flow before financing activities |
|
(4,575) |
4,521,322 |
|
|
|
|
|
|
|
| Financing
activities |
|
|
|
| Increase/(Decrease)
in: |
|
| Long term loans |
|
|
0 |
(3,500,000) |
|
| Short
term borrowing |
|
|
0 |
(1,054,250) |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash flow from financing activities |
|
0 |
(4,554,250) |
|
|
|
|
------------------ |
------------------ |
|
| Increase/(decrease)
in cash & cash equivalent |
B |
(4,575) |
(32,928) |
|
|
|
========== |
========== |
|
|
|
|
|
|
|
|
|
|
|
|
30-06-2001 |
30-06-2000 |
|
|
|
RUPEES |
RUPEES |
|
| NOTE: A |
|
| Reconciliation
of operating profit to |
|
| net
cash flow from operating activities: |
|
|
| Net
loss before taxation |
|
|
(31,980,218) |
(41,047,807) |
|
|
|
|
|
|
| Mark-up
/ interest expenses |
|
|
0 |
6,517,156 |
|
| Dividend
received |
|
|
610 |
290 |
|
|
|
|
------------------ |
------------------ |
|
|
|
610 |
6,517,446 |
|
|
|
|
------------------ |
------------------ |
|
| Operating
profit before working capital changes |
|
(31,979,608) |
(3,1,530,361) |
|
|
|
| ((Increase)/Decrease
in current assets |
|
| Stock-in-trade |
|
|
31,713,445 |
33,248,146 |
|
| Trade debtors |
|
|
537,860 |
1,353,198 |
|
| Advances,
deposits & pre-payments |
|
5,200,000 |
305,600 |
|
| Other
receivables |
|
|
61,105 |
6,614,082 |
|
|
|
|
| (Decrease)/Increase
in current liabilities |
|
| Creditors,
accrued & other liabilities |
|
(5,436,437) |
3,104,500 |
|
|
------------------ |
------------------ |
|
|
|
32,075,973 |
44,625,532 |
|
|
|
------------------ |
------------------ |
|
|
|
96,365 |
10,095,171 |
|
|
|
========== |
========== |
|
|
|
| NOTE: B |
|
| Analysis
of changes in cash and cash |
|
| equivalents
during the year: |
|
|
| Cash
and bank balances as at June 30, 2000 |
|
94,959 |
127,887 |
|
| Increase/(decrease)
in |
|
|
|
|
| cash
and cash equivalents |
|
|
(4,575) |
(32,9280 |
|
|
|
|
------------------ |
------------------ |
|
| Cash
and bank balances as at June 30, 2001 |
|
90,384 |
94,959 |
|
|
========== |
========== |
|
|
|
| Statement
of Changes in Equity for the year ended June 30, 2001 |
|
|
|
Share |
General |
Unappropriated |
Total |
|
|
Capital |
Reserve |
Profit/(Loss) |
|
|
|
| Balance
as at June 30, 1999 |
20,000,000 |
30,000,000 |
(89,351,249) |
(39,351,249) |
|
| Net
Profit/(Loss) for the year |
0 |
0 |
(41,190,309) |
(41,190,309) |
|
| Transfer
to/from unappropriated profit |
0 |
0 |
0 |
0 |
|
| Dividend
@ per share |
0 |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
| Balance
as at June 30, 2000 |
20,000,000 |
30,000,000 |
(130,541,558) |
(80,541,558) |
|
| Net
Profit/(Loss) for the year |
0 |
0 |
(31,980,218) |
(31,980,218) |
|
| Transfer
to/from unappropriated profit |
0 |
(30,000,000) |
30,000,000 |
0 |
|
| Dividend
@ per share |
0 |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
| Balance
as at June 30, 2001 |
