| Kohat Cement Company |
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| Annual
Report 2001 |
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| CONTENTS |
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| Company Profile |
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| Notice
of Meeting |
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| Director's
Report |
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| Auditor's Report |
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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 Shareholding |
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| Company
Profile |
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| Board
of Directors |
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| Chairman |
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Mr. Atta Mohammad Sheikh |
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| Chief
Executive/Director |
Mr. Aizaz Mansoor Sheikh |
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Mr. Nadeem Atta Sheikh |
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Mr. Tariq Atta Sheikh |
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Mr. Nadeem Qadir |
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Mrs. Khalida Asghar |
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Mrs. Khawar Sultana |
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| Company
Secretary |
Mr. Mohammad Hashim Khan |
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| Auditors |
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Viqar A. Khan |
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Chartered Accountants |
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| Legal Advisor |
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Qazi Waheed-ud-Din |
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| Bankers |
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Allied Bank of Pakistan
Limited |
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Askari Commercial Bank
Limited |
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Habib Bank Limited |
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Muslim Commercial Bank
Limited |
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National Bank of Pakistan |
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Prime Commercial Bank
Limited |
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The Bank of Khyber |
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Union Bank Limited |
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| Head Office |
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House No. 64-El/D, |
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Gulberg-III, Lahore. |
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Tel: (042) 575-4358,
575-8649 |
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Fax: (042) 575-4064 |
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E. Mail: kccl@wol.net.pk. |
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| Registered
Office and Works |
Kohat Cement Company
Limited |
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Rawalpindi Road, Kohat. |
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Tel: (0922) 560-401-04 |
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Fax: (0922)560-405 |
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| Share Deptt. |
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AZM Computer Services
(Pvt.) Limited |
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24-Ferozepur Road, |
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Mozang Chungi, Lahore. |
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Tel: (042) 755-2269 |
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Fax: (042) 757-6129 |
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| NOTICE
OF ANNUAL GENERAL MEETING |
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| Notice
is hereby given that the 22nd Annual General Meeting of the Shareholders of
Kohat Cement |
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| Company
Limited, will be held at its Registered Office, Rawalpindi Road, Kohat on
Friday, December 21, |
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| 2001
at 11:00 A.M. to transact the following business. |
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| Ordinary
Business |
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| 1.
To confirm the minutes of the Extra Ordinary General Meeting held on June 29,
2001. |
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| 2.
To receive, consider and adopt the Audited Accounts of the Company for the
year ended June 30, |
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| 2001
and Reports of Directors and Auditors thereon. |
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| 3.
To approve final cash dividend @ 20% (Rupees 2 per share) for the year ended
June 30, 2001. |
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| 4.
To appoint Auditors for the year 2001-2002 and to fix their remuneration. The
present Auditors |
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| Viqar
A. Khan, Chartered Accountants, being eligible offer themselves for
re-appointment. |
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| 5.
To transact any other business with the permission of the Chair. |
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By Order of the Board |
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Mohammad Hashim Khan |
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| Kohat:
November 23, 2001 |
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Company Secretary |
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| Note: |
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| 1.
The register of the members of the Company will be closed from Saturday,
December 15, 2001 to |
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| Friday,
December 21, 2001 (both days inclusive) and no transfer will be registered
during that time. |
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| Shares
transfer deeds received in order at the share department of the
Company-Incharge shares |
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| department,
AZM Computer Services (Pvt.) Limited, 24-Feruzpur Road, Mazang Chungi,
Lahore, at the |
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| close
of business on Friday, December 14, 2001 will be treated in time for
entitlement of payment of |
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| dividend. |
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| 2.
A member entitled to attend, speak and vote at this meeting may appoint
another member as proxy to |
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| attend,
speak and vote on his/her behalf. Proxies in Order to be effective must be
received at |
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| Registered
Office of the Company not later than 48 hours before the meeting. |
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| 3.
Shareholders whose shares are registered in their account/sub-account/group
account with Central |
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| Depository
System (CDS) are requested to bring original NIC along with their account
number in CDS |
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| and
participants' ID number for verification. In case of appointment of proxy by
such account holders, it |
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| must
be accompanied with participants ID number and account / sub-account number
alongwith |
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| attested
photocopies of NIC or the Passport of the beneficial owner. Representatives
of Corporate |
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| members
should bring the usual documents required for such purposes. |
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| 4.
Members should quote their folio number in all correspondence with the
Company and at the time of |
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| attending
the Annual General Meeting. |
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| 5.
The shareholders are requested to notify the company if there is any change
in their address. |
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| DIRECTORS'
REPORT TO THE SHAREHOLDERS |
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| Your
directors have the pleasure in presenting the Audited Accounts for the
financial year ended June 30, 2001. |
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| OPERATING
RESULTS |
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| The
net sales revenue for the year under review is Rs. 835.607 million as against
Rs. 1,021.861 million in the preceding |
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| year.
The profitability of the Company has reduced in the current year due to
instability in the prices of cement. After |
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| accounting
for all charges including depreciation of Rs. 68.938 million (2000: Rs.
74.528 Million) the Company has |
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| earned
a pre-tax profit of Rs. 74.565 million compared to Rs. 249.179 million last
year. |
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| Your
company endeavors to give a fair return to the shareholders. Following this
policy, the Directors have recommended |
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| a
final cash dividend @ 20% (2000: @ 27.5%). Appropriation of available profit
is as under: |
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Rupees in
Thousand |
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2001 |
2000 |
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| Profit/(Loss)
before taxation |
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74,565 |
249,179 |
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| Taxation |
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| Current |
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|
24,383 |
25,181 |
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| Prior |
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-- |
932 |
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| Deferred |
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(5,023) |
72,500 |
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------------------ |
------------------ |
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19,360 |
98,613 |
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------------------ |
------------------ |
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| Profit/(Loss)
after taxation |
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55,205 |
150,566 |
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| Un-appropriated
profit brought forward. |
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93,179 |
2,929 |
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------------------ |
------------------ |
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| Profit
available for appropriation |
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148,384 |
153,495 |
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| APPROPRIATION: |
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| Interim
Cash Dividend @ Nil (2000 @ 7.50%) |
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-- |
16,450 |
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| Final
Cash Dividend @ 20% (2000 @ 20%) |
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43,867 |
43,867 |
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------------------ |
------------------ |
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43,867 |
60,317 |
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------------------ |
------------------ |
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| Carried
Forward to Balance Sheet |
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104,517 |
93,179 |
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------------------ |
------------------ |
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| PRODUCTION
AND SALES |
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| Comparative
figures for production of Clinker and Cement are as under: |
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2000-01 |
1999-00 |
(Decrease) |
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|
(Tonnes) |
(Tonnes) |
(Tonnes) |
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| Clinker
Production |
|
290,804 |
347,328 |
(56,524) |
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| Cement
Production |
|
325,672 |
374,274 |
(48,602) |
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| Capacity
utilization has only been 57.44% due to depressed |
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| market
conditions and overall excess cement production |
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| capacity
in the country. |
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| The
Company sold 331,987 metric tonnes of cement as against |
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| 374,036
metric tonnes in the previous year, registering a |
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| negative
growth of 11.24% in the sales volume. Sales during |
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| the
year were relatively less as compared to those companies |
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| who
enjoyed exemption from levy of 15% Sales Tax upto |
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| June
30, 2001. The market has remained highly competitive |
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| throughout
the year with a downward pressure on prices resulting |
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| in
lower capacity utilization for the industry as a whole. |
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| MARKET
REVIEW |
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| Cement
industry has continuously been under pressure due to weak economic conditions
and inconsistent financial |
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| policies
of the Government. Constant increase in the prices of inputs especially
electricity and furnace oil has increased |
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| the
cost of production by Rs. 224 per tonne. Fall in the value of Pak Rupee has
substantially increased the cost of |
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| imported
capital inputs like spare parts, refractory bricks, grinding media,
lubricants etc. |
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| An
additional factor constantly pushing up the conversion cost is across the
board wage increase every two years by |
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| way
of a peace agreement, thrust upon the Company without any relation to Labour
efficiency due to exorbitant demands |
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| of
C.B.A. Labour Union. In addition the Company is forced down its throat the
bitter dozes of periodic increases under the |
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| Cost
of Living (Relief) Act, 1973. Any attempt by the Company to pass on these
increases to the consumers would have |
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| further
jeopardized the sales volume. As such most of the increase in costs was
absorbed by the Company resulting in |
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| lower profits. |
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| FUTURE
PROSPECTS |
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| Future
prospects of your Company depend to a large extent on the revival of the
economy and adoption of long-term |
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| stable
fiscal policies by the Government. The present structure of fiscal levies
i.e. Excise Duty of Rs. 1,000 per tonne & |
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| Sales
Tax @ 15% on the cement industry is the highest in the World. High incidence
of taxes on electricity and furnace |
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| oil
makes production of cement in Pakistan one of the most expensive in the World
which has a dampening effect on the |
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| construction
industry in Pakistan. |
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| Coal
Firing: To cut down on production cost due to ever
increasing price of furnace oil which is a major element of cost, |
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| the
use of indigenous coal was started for which a very basic Coal Firing
mechanism has initially been put in operation. |
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| Letters
of Credit for import of Coal Firing machinery and equipment have been
established. |
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| The
events, which took place in the USA on Sep. 11, 2001 are already having a
depressive impact on the world economy. |
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| Business
environment in Pakistan is also being affected. God willing, we hope the
country will emerge from this crisis soon. |
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| Your
Company intends to continue its ongoing BMR plans but will exercise due
caution in the current volatile business |
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| environment. |
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| DEBT
OBLIGATION |
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| The
Company continues to meet its financial obligations. The debt outstanding, as
at June 30, 2001 is only of Rs. 27.00 |
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| million,
which is one of the lowest in the cement sector. |
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| PATTERN
OF SHAREHOLDINGS |
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| The
pattern of Shareholding of the Company as at June 30, 2001 is annexed with
the Annual Report. |
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| COMPANY
AUDITORS |
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| The
Auditors Viqar A. Khan, Chartered Accountants, retires at the conclusion of
the annual general meeting. Being |
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| eligible,
they have offered themselves for re-appointment. |
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| MANAGEMENT
EMPLOYEES RELATIONS |
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| The
Board would like to record its appreciation for the valuable contribution
made by all its employees. |
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| The
management is quite confident that these cordial relations and cooperation
will continue in the years to come. |
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|
AIZAZ MANSOOR SHEIKH |
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|
Chief Executive |
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| YEARWISE
STATISTICAL SUMMARY |
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|
(Rs. in Million) |
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|
2001 |
2000 |
1999 |
1998 |
1997 |
1996 |
1995 |
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| ASSETS
EMPLOYED |
|
| Fixed assets |
|
609 |
662 |
715 |
789 |
862 |
805 |
346 |
|
| Investment
and Long Term |
|
| Advances
and Deposits |
4 |
4 |
24 |
37 |
39 |
40 |
27 |
|
| Current Assets |
|
204 |
209 |
223 |
219 |
209 |
273 |
604 |
|
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|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
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| Total
Assets Employed |
817 |
875 |
961 |
1045 |
1111 |
1119 |
977 |
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------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
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| FINANCED BY |
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| Shareholders
Equity |
486 |
475 |
384 |
406 |
408 |
449 |
453 |
|
| Long
Term Liabilities |
6 |
18 |
140 |
160 |
326 |
303 |
306 |
|
| Deferred
Liabilities |
112 |
117 |
44 |
12 |
11 |
11 |
11 |
|
| Current
Liabilities |
213 |
266 |
393 |
469 |
365 |
356 |
207 |
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------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
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| Total
Funds Invested |
817 |
875 |
961 |
1045 |
1111 |
1119 |
977 |
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------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
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| TURNOVERAND
PROFIT |
|
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|
| Turnover (Net) |
836 |
1,022 |
733 |
748 |
501 |
953 |
342 |
|
| Operating Profit |
|
95 |
304 |
115 |
57 |
45 |
116 |
71 |
|
| Profit/(Loss)
Before Taxation |
75 |
249 |
58 |
(1) |
(38) |
47 |
67 |
|
| Profit/(Loss)
After Taxation |
55 |
151 |
23 |
(3) |
(41) |
46 |
39 |
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| Cash Dividend |
|
44 |
60 |
44 |
-- |
-- |
50 |
-- |
|
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| Profit c/f |
|
105 |
93 |
3 |
17 |
20 |
61 |
65 |
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| AUDITORS'
REPORT TO THE MEMBERS |
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| We
have audited the annexed balance sheet of KOHAT CEMENT
COMPANY LIMITED |
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| as
at June 30, 2001 and the related profit and loss account, cash flow statement
and statement of changes |
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| in
equity together with the notes forming part thereof, for the year then ended
and we state that we have |
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| obtained
all the information and explanations which, to the best of our knowledge and
belief, were necessary |
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| for
the purposes of our audit. |
|
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| It
is the responsibility of the company's management to establish and maintain a
system of internal control, |
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| 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 the auditing standards as applicable
in Pakistan. These |
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| 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 |
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| 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 |
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| Companies
Ordinance, 1984; |
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|
|
|
|
| b)
in our opinion: |
|
|
|
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| i)
the balance sheet and profit and loss account together with the notes
thereon, have been drawn |
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| up
in conformity with the Companies Ordinance, 1984, and are in agreement with
the books of |
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| account
and are further in accordance with accounting policies consistently applied; |
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|
|
| ii)
the expenditure incurred during the year was for the purpose of the company's
business; and |
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| iii)
the business conducted, investments made and the expenditure incurred during
the year were |
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| in
accordance with the objects of the company; |
|
|
|
| c)
in our opinion and to the best of our information and according to the
explanations give to us, the |
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| balance
sheet, profit and loss account, cash flow statement and statement of changes
in equity |
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| together
with the notes forming part thereof conform with the approved accounting
standards as |
|
| applicable
in Pakistan and, give the information required and 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 profit, its cash flows 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 (XVIII of 1980) |
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| was
deducted by the company and deposited in the Central Zakat Fund established
under Section 7 |
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| of
that Ordinance. |
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|
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| Lahore
November 07, 2001 |
|
CHARTERED ACCOUNTANTS |
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|
|
| BALANCE
SHEETAS AT JUNE 30, 2001 |
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|
|
2001 |
2000 |
|
|
Note |
Rupees |
Rupees |
|
|
| CAPITAL
AND LIABILITIES |
|
|
|
| SHARE
CAPITAL AND RESERVES |
|
|
| Authorised
share capital |
|
| 50,000,000
(2000: 50,000,000) ordinary |
|
| shares
of Rs. 10 each |
|
500,000,000 |
500,000,000 |
|
|
========== |
========== |
|
|
| Issued,
subscribed and paid up share capital |
|
| 21,933,334
(2000: 21,933,334) ordinary |
|
| shares
of Rs. 10 each |
|
4 |
219,333,340 |
219,333,340 |
|
| Reserves |
|
5 |
162,120,028 |
162,120,028 |
|
| Unappropriated
profit |
|
|
104,517,405 |
93,178,739 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
485,970,773 |
474,632,107 |
|
|
|
|
|
|
| REDEEMABLE
CAPITAL |
|
6 |
-- |
-- |
|
|
|
| LIABILITIES
AGAINST ASSETS SUBJECT TO |
|
| FINANCE
LEASE |
|
7 |
4,006,641 |
15,057,509 |
|
|
|
| DEFERRED
LIABILITIES |
|
8 |
111,828,496 |
116,594,780 |
|
| LONG
TERM SECURITY DEPOSITS |
9 |
2,354,850 |
2,806,160 |
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
| Short
term finances |
|
10 |
10,922,808 |
69,321,124 |
|
| Current
portion of long term liabilities |
11 |
11,995,445 |
33,756,486 |
|
| Creditors,
accruals and other payables |
12 |
91,779,565 |
89,420,083 |
|
| Provision
for taxation |
|
|
53,228,442 |
28,845,466 |
|
| Dividends |
|
13 |
44,712,721 |
44,541,761 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
212,638,981 |
265,884,920 |
|
| CONTINGENCIES
AND COMMITMENTS |
14 |
-- |
-- |
|
|
------------------ |
------------------ |
|
|
|
|
816,799,741 |
874,975,476 |
|
|
|
|
========== |
========== |
|
|
| The
annexed notes form an integral pad of these accounts |
|
|
|
|
CHIEF EXECUTIVE |
|
|
| PROPERTY
AND ASSETS |
|
|
|
|
| FIXED
CAPITAL EXPENDITURE |
|
|
|
| Operating
fixed assets- tangible |
|
15 |
606,457,856 |
659,797,694 |
|
| Capital
work-in-progress |
|
16 |
2,285,462 |
2,100,706 |
|
|
|
|
608,743,318 |
661,898,400 |
|
|
|
|
|
| LONG
TERM LOANS TO EMPLOYEES |
17 |
2,602,598 |
2,716,546 |
|
|
|
|
|
| LONG
TERM DEPOSITS |
|
18 |
977,030 |
926,030 |
|
|
|
|
|
| CURRENTASSETS |
|
|
|
| Stores,
spares and loose tools |
|
19 |
88,309,024 |
51,434,353 |
|
| Stock in trade |
|
20 |
18,977,696 |
50,515,942 |
|
| Trade debtors |
|
21 |
13,148,085 |
28,921,924 |
|
| Advances,
deposits, prepayments |
|
|
|
| and
other receivables |
|
22 |
34,200,990 |
35,195,185 |
|
| Cash
and bank balances |
|
23 |
49,841,000 |
43,367,096 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
204,476,795 |
209,434,500 |
|
|
|
|
------------------ |
------------------ |
|
|
816,799,741 |
874,975,476 |
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts |
|
|
|
|
|
DIRECTOR |
|
|
|
| PROFIT
AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2001 |
|
|
|
|
2001 |
2000 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| SALES |
|
24 |
835,607,451 |
1,021,861,290 |
|
| COST
OF GOODS SOLD |
|
25 |
693,787,373 |
689,815,805 |
|
|
|
|
------------------ |
------------------ |
|
| GROSS
PROFIT |
|
|
141,820,078 |
332,045,485 |
|
|
|
|
|
|
|
|
|
| ADMINISTRATIVE
AND GENERAL EXPENSES |
26 |
37,185,202 |
17,329,717 |
|
| SELLING
EXPENSES |
|
27 |
9,990,624 |
10,780,737 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
47,175,826 |
28,110,454 |
|
|
|
|
------------------ |
------------------ |
|
| OPERATING
PROFIT |
|
|
94,644,252 |
303,935,031 |
|
|
|
|
|
| OTHER
INCOME |
|
28 |
1,379,038 |
1,442,543 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
96,023,290 |
305,377,574 |
|
|
|
|
|
| FINANCIAL
AND OTHER CHARGES |
29 |
21,457,746 |
56,198,175 |
|
|
|
|
------------------ |
------------------ |
|
| PROFIT
BEFORE TAXATION |
|
|
74,565,544 |
249,179,399 |
|
| TAXATION |
|
30 |
19,360,210 |
98,612,894 |
|
|
|
|
------------------ |
------------------ |
|
| PROFIT
AFTER TAXATION |
|
|
55,205,334 |
150,566,505 |
|
| UNAPPROPRIATED
PROFIT BROUGHT FORWARD |
93,178,739 |
2,928,902 |
|
|
|
|
------------------ |
------------------ |
|
| PROFIT
AVAILABLE FOR APPROPRIATION |
|
148,384,073 |
153,495,407 |
|
|
|
|
|
|
|
|
| APPROPRIATION |
|
|
| Dividends |
|
| Interim
dividend @ NIL (2000: 7.5%) |
|
-- |
16,450,000 |
|
| Proposed
final dividend @ 20% (2000: 20%) |
|
43,866,668 |
43,866,668 |
|
|
|
------------------ |
------------------ |
|
|
|
43,866,668 |
60,316,668 |
|
|
|
------------------ |
------------------ |
|
| UNAPPROPRIATED
PROFIT CARRIED FORWARD |
104,517,405 |
93,178,739 |
|
|
|
|
========== |
========== |
|
| EARNINGS
PER SHARE |
|
31 |
2.52 |
6.86 |
|
|
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts |
|
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
|
|
|
| CASH
FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 2001 |
|
|
|
|
2001 |
2000 |
|
|
Note |
Rupees |
Rupees |
|
|
| CASH
FLOWS FROM OPERATING ACTIVITIES |
|
|
| Cash
generated from operations |
|
32 |
174,210,251 |
393,737,728 |
|
| Financial
charges paid |
|
|
(12,701,917) |
(50,243,651) |
|
| Income
tax paid/deducted at source |
|
(4,738,539) |
(13,191,964) |
|
| Net
(increase)/decrease in long term loans to employees |
53,837 |
(1,791,724) |
|
| Net
decrease in long term security deposits |
|
(451,310) |
(1,613,840) |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash inflow from operating activities |
|
156,372,322 |
326,896,549 |
|
|
|
|
| CASH
FLOWS FROM INVESTING ACTIVITIES |
|
| Fixed
capital expenditure |
|
(16,933,298) |
(22,161,336) |
|
| Sale
proceeds of fixed assets |
|
838,493 |
256,402 |
|
| Profit
on bank deposits |
|
1,153,320 |
939,178 |
|
| Net
(increase)/decrease in long term deposits |
|
(51,000) |
33,873,371 |
|
|
|
------------------ |
------------------ |
|
| Net
cash inflow/(outflow) from investing activities |
|
14,992,485) |
12,907,615 |
|
|
|
|
| CASH
FLOWS FROM FINANCING ACTIVITIES |
|
| Repayment
of short term borrowings |
|
-- |
(18,443,898) |
|
| Repayment
of redeemable capital |
|
|
(22,083,780) |
(8,916,220) |
|
| Repayment
of finance lease liabilities |
|
(10,728,129) |
(231,632,110) |
|
| Dividend paid |
|
|
(43,695,708) |
(59,871,948) |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash outflow from operating activities |
|
(76,507,617) |
(318,864,176) |
|
|
|
|
------------------ |
------------------ |
|
| NET
INCREASE IN CASH AND CASH EQUIVALENTS |
64,872,220 |
20,939,988 |
|
| CASH
AND CASH EQUIVALENTS |
|
|
| AT
THE BEGINNING OF THE YEAR |
|
(25,954,028) |
(46,894,016) |
|
|
|
|
|
| CASH
AND CASH EQUIVALENTS |
|
------------------ |
------------------ |
|
| AT
THE END OF THE YEAR |
|
33 |
38,918,192 |
(25,954,028) |
|
|
|
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts |
|
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
| STATEMENT
OF CHANGES IN EQUITY FOR THE YEAR |
|
| ENDED
JUNE 30, 2001 |
|
|
|
|
|
Reserves |
|
|
|
Capital |
Revenue |
|
|
|
|
Share |
Share |
General |
Accumulated |
Total |
|
|
|
Capital |
Premium |
Reserve |
Profit |
|
|
|
|
|
Rupees |
|
|
|
|
|
| Balance
as at June 30, 1999 |
219,333,340 |
92,120,028 |
70,000,000 |
2,928,902 |
384,382,270 |
|
| Profit
for the year ended June 30, 2000 |
-- |
-- |
-- |
150,566,505 |
150,566,505 |
|
| Dividend |
|
-- |
-- |
-- |
(60,316,668) |
(60,316,668) |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Balance
as at June 30, 2000 |
219,333,340 |
92,120,028 |
70,000,000 |
93,178,739 |
474,632,107 |
|
|
|
|
|
| Profit
for the year ended June 30, 2001 |
-- |
-- |
-- |
55,205,334 |
55,205,334 |
|
| Dividends |
|
-- |
-- |
-- |
(43,866,668) |
(43,866,668) |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Balance
as at June 30, 2001 |
219,333,340 |
92,120,028 |
70,000,000 |
104,517,405 |
485,970,773 |
|
|
|
========== |
========== |
========== |
========== |
========== |
|
|
|
| The
annexed notes form an integral part of these accounts |
|
|
|
CHIEF EXECUTIVE |
|
|
DIRECTOR |
|
|
|
| NOTES
TO THE ACCOUNTS FOR THE YEAR ENDED JUNE 30, 2001 |
|
|
| 1
- THE COMPANY AND ITS OPERATIONS |
|
|
| The
company is a Public Limited Company incorporated in Pakistan under the
Companies Act, 1913 |
|
| (now
Companies Ordinance, 1984) and is listed on Stock Exchanges of Pakistan. The
company is |
|
| engaged
in the production and sale of Grey cement. |
|
|
|
| 2
- BASIS OF PREPARATION |
|
| These
accounts have been prepared in accordance with the requirements of the
Companies Ordinance, |
|
| 1984
and the International Accounting Standards as applicable in Pakistan except
IAS 19. |
|
|
| The
company could not carry out the actuarial valuation of its obligation under
gratuity scheme, |
|
| therefore,
these financial statements do not contain the disclosures / related
adjustments as required |
|
| by the IAS 19. |
|
|
| 3.
SIGNIFICANT ACCOUNTING POLICIES |
|
|
|
|
|
| 3.1
- Accounting convention |
|
|
| These
accounts have been prepared under the historical cost convention as modified
by |
|
| capitalisation
of exchange differences referred to in note 3.8. |
|
|
| 3.2
- Fixed capital expenditure and depreciation |
|
| Operating
fixed assets except land are stated at cost less accumulated depreciation.
Land and |
|
| capital
work in progress are stated at cost. Cost of certain fixed assets consists of
historical cost, |
|
| exchange
differences and directly attributable cost of bringing the assets to working
condition. |
|
|
| Depreciation
on operating fixed assets is charged to income by applying the reducing
balance |
|
| method,
so as to write off the historical cost of an asset over its estimated useful
life at the rates |
|
| mentioned
in note 15. Full year's depreciation is charged on additions except major
additions or |
|
| extensions
to production facilities which are depreciated on pro-rata basis for the
period of use |
|
| during
the year. No depreciation is charged on assets deleted during the year. |
|
|
| Normal
repairs and maintenance are charged to income as and when incurred. Major |
|
| improvements
and modifications are capitalised and assets so replaced, if any, other than
those |
|
| kept
as stand by, are retired. |
|
|
| Profit
or loss on disposal of operating fixed assets is included in the current
income. |
|
|
| 3.3
- Assets subject to finance lease |
|
| Assets
subject to finance lease are stated at the lower of present value of minimum
lease |
|
| payments
under the lease agreements and the fair value of the assets at the inception
of the |
|
| lease.
The related obligations of the leases are accounted for as liabilities. |
|
|
| Assets
acquired under finance lease are amortized over the useful life of the assets
on a |
|
| reducing
balance method at the rates given in note 15. Amortization of leased assets
is charged |
|
| to
current income. |
|
|
| 3.4
- Stores and spares |
|
| These
are valued at moving average cost except items in transit which are valued at
cost which |
|
| comprises
of invoice value plus other charges paid thereon. |
|
|
| 3.5
- Stock-in-trade |
|
| Stock-in-trade
is valued at the lower of average cost and net realizable value. The average
cost |
|
| in
relation to work-in-process and finished goods represents direct costs of
materials, labour and |
|
| appropriate
portion of production overheads. Net realizable value signifies the
ex-factory sales |
|
| price
less expenses and taxes necessary to be incurred in order to make the sale. |
|
|
| 3.6
- Staff retirement benefits |
|
| The
company operates an approved gratuity fund scheme for its permanent
employees, payable |
|
| on
cessation of employment, subject to minimum qualifying period of service.
Provision is made |
|
| annually
to cover obligations under the scheme for all employees eligible to gratuity
benefits |
|
| irrespective
of the qualifying period. |
|
|
| The
company also operates a recognised contributory provident fund scheme. Equal
monthly |
|
| contributions
are made by the company and the employees to the fund. |
|
|
| 3,.7- Taxation |
|
|
|
| Current |
|
| The
charge for current taxation is based on taxable income at current rates of
taxation after |
|
| taking
into account tax credits and rebates available, if any. |
|
|
| Deferred |
|
| Deferred
tax is accounted for using the balance sheet liability method in respect of
temporary |
|
| differences
arising from differences between the carrying amount of assets and
liabilities in the |
|
| financial
statements and the corresponding tax basis used in the computation of taxable
income. |
|
| Deferred
tax is calculated by using the tax rates enacted at the balance sheet date. |
|
|
| A
deferred tax asset is recognised only to the extent that it is probable that
future taxable profit |
|
| will
be available and the credits can be utilised. Deferred tax assets are reduced
to the extent |
|
| that
it is no longer probable that the related tax benefit will be realized. |
|
|
| 3.8
- Foreign currency translation |
|
| Assets
and liabilities in foreign currencies are translated into rupees at exchange
rates |
|
| approximating
those prevailing at the balance sheet date. Exchange differences in respect
of |
|
| foreign
currency loans obtained for acquisition of fixed assets are incorporated in
the cost |
|
| of
relevant assets. All other exchange differences are taken to profit and loss
account. |
|
|
| 3.9
- Borrowing costs |
|
| All
mark-up, interest and other charges are charged to current income. |
|
|
| 3.10
- Revenue recognition |
|
| -
Sales are recognised at the time of despatch of goods to the customers. |
|
| -
Interest income on bank deposits is accrued on time basis, by reference to
the principal |
|
| outstanding
and at the interest rate applicable. |
|
|
|
|
2001 |
2000 |
|
|
|
Note |
Rupees |
Rupees |
|
|
|
|
|
|
| 4
- ISSUED, SUBSCRIBED AND |
|
| PAID-UP
SHARE CAPITAL |
|
| 2,243,334
(2000: 2,243,334) ordinary shares of Rs. 10 |
|
| each
fully paid in cash |
|
|
22,433,340 |
22,433,340 |
|
|
| 11,230,000
(2000: 11,230,000) ordinary shares of Rs. 10 |
|
| each
issued as fully paid for consideration other than cash |
112,300,000 |
112,300,000 |
|
|
| 8,460,000
(2000: 8,460,000) ordinary shares of Rs. 10 each |
|
|
| issued
as fully paid bonus shares |
|
84,600,000 |
84,600,000 |
|
|
|
------------------ |
------------------ |
|
|
219,333,340 |
219,333,340 |
|
|
========== |
========== |
|
|
| 5. RESERVES |
|
| Capital |
|
|
|
|
| Share premium |
|
|
|
92,120,028 |
92,120,028 |
|
|
| Revenue |
|
|
|
| General reserve |
|
70,000,000 |
70,000,000 |
|
|
|
------------------ |
------------------ |
|
|
162,120,028 |
162,120,028 |
|
|
========== |
========== |
|
|
| Share
premium represents premium of Rs. 42 per share received on issue of 2,193,334
ordinary shares |
|
| to
general public in 1994. |
|
|
|
|
| 6
- REDEEMABLE CAPITAL-SECURED |
|
| Term
finance facility |
|
|
-- |
22,083,780 |
|
| Current
portion shown under current liabilities |
11 |
-- |
22,083,780 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
-- |
-- |
|
|
|
|
========== |
========== |
|
|
| This
finance has been repaid during the year. The finance was secured against
registered second charge |
|
| on
all present and future assets and hypothecation of moveable assets of the
company and personal |
|
| guarantees
of certain directors. Currently the company is making necessary arrangements
for satisfaction |
|
| of
charge from the Registrar Joint Stock Companies. |
|
|
| 7.
LIABILITIES AGAINST ASSETS |
|
|
| SUBJECT
TO FINANCE LEASE |
|
|
|
| The
amounts of unpaid lease payments to date, future payments and the periods in
which these |
|
| payments
will become due are as under: |
|
|
|
| Minimum
lease payments: |
|
| due
not later than one year |
|
| 2001 |
|
|
1,000,000 |
14,436,396 |
|
| 2002 |
|
|
12,302,180 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
13,302,180 |
14,436,396 |
|
| due
later than one year and not later than five years |
|
|
|
| 2002 |
|
|
-- |
12,302,180 |
|
| 2003 |
|
|
4,218,198 |
4,218,198 |
|
|
|
|
------------------ |
------------------ |
|
|
|
4,218,198 |
16,520,378 |
|
|
------------------ |
------------------ |
|
| Total
minimum lease payments |
|
17,520,378 |
30,956,774 |
|
|
| Financial
charges allocated to unpaid |
|
| and
future lease payments |
|
1,518,292 |
4,226,559 |
|
|
| Present
value of minimum lease payments: |
|
| due
not later than one year |
|
125,105,281 |
13,223,809 |
|
| due
later than one year and not later than five years |
|
3,491,558 |
13,506,406 |
|
|
------------------ |
------------------ |
|
|
16,002,086 |
26,730,215 |
|
| Current
portion shown under current liabilities |
|
|
|
| Due |
|
|
110,508,681 |
11,672,706 |
|
| Over due |
|
|
944,577 |
-- |
|
|
------------------ |
------------------ |
|
|
|
11 |
11,995,445 |
11,672,706 |
|
|
------------------ |
------------------ |
|
|
4,006,641 |
15,057,509 |
|
|
========== |
========== |
|
|
| The
implicit rate used as the discounting factor is 13.15% and 14% per annum.
Rentals are payable in |
|
| equal
monthly and quarterly installments. Overdues are subject to additional
payment at rates 1% and 3% |
|
| per month. |
|
|
| The
lessee shall have no right to terminate the lease agreements and if the lease
agreements are |
|
| terminated
before the due dates, the lessee will have to pay the entire amount of lease
rentals for |
|
| un-expired
period of the lease agreements. However, lease agreements carry renewal
option at the end of |
|
| lease periods. |
|
|
| These
liabilities are secured by demand promissory notes, charge on company's
assets ranking parri passu |
|
| with
other creditors, personal guarantees of directors and deposit of Rs.
2,000,000 (2000: Rs. 2,000,000) |
|
| shown
in note 18 and 22. |
|
|
| 8
- DEFERRED LIABILITIES |
|
| Deferred
taxation |
|
8.1 |
106,796,177 |
111,818,943 |
|
| Earned leave |
|
|
5,032,319 |
4,775,837 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
111,828,496 |
116,594,780 |
|
|
========== |
========== |
|
|
|
|
| 8.1
- Deferred taxation |
|
| The
liability for deferred taxation comprises of |
|
| temporary
difference relating to: |
|
|
| Accelerated
depreciation for tax purposes |
|
82,830,584 |
86,453,470 |
|
|
|
|
|
| Book
value of operating fixed assets acquired |
|
|
|
| through
finance lease deducted from taxable |
|
|
|
| profit
by claiming lease rentals in earlier years |
|
59,708,036 |
64,825,212 |
|
|
|
|
|
| Liabilities
under finance lease that are |
|
|
|
| deducted
for tax purposes only when paid |
|
(4,851,723) |
(8,569,019) |
|
|
| Deferred
tax liability not provided for |
|
(30,890,720) |
(30,890,720) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
106,796,177 |
111,818,943 |
|
|
|
|
========== |
========== |
|
|
| The
liability for deferred taxation as on the balance sheet date has been
estimated at Rs. 137.687 million |
|
| (2000:
Rs. 142.709 million). In order to comply with the requirements of the
International Accounting |
|
| Standard,
IAS 12 "Income Taxes" (Revised), which would be applicable from the
year ended June 30, 2003, |
|
| the
management decided during June 30, 1999, to provide for unprovided deferred
tax liability of |
|
| Rs.
96 million calculated as at that date, in three equal installments. An amount
of Rs. 65.109 million has |
|
| already
been provided in the accounts during the last years, the balance amount of
Rs. 30.891 million will be |
|
| provided
by the end of June 30, 2003. |
|
|
| 9
- LONG TERM SECURITY DEPOSITS |
|
| From
cement dealers |
|
9.1 |
1,454,850 |
1,706,160 |
|
| From
cement transporters |
|
9.2 |
900,000 |
1,100,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
2,354,850 |
2,806,160 |
|
|
========== |
========== |
|
|
| 9.1
- These represent interest free security deposits received from cement
dealers and repayable on the |
|
| termination
of the agency. |
|
|
| 9.2
- These represent interest free security deposits received from transporters
for providing guarantee of |
|
| safe
delivery of cement to customers. |
|
|
| 10
- SHORT TERM FINANCES |
|
| Running
finances under |
|
| mark
up arrangement- secured |
|
10.1 |
8,950,048 |
66,835,039 |
|
| Un-presented
cheques |
|
10.2 |
1,972,760 |
2,486,085 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
10,922,808 |
69,321,124 |
|
|
========== |
========== |
|
|
| 10.1-
Short term running finances available from commercial banks under mark up
arrangements |
|
| amount
to Rs. 75.5 million (2000: Rs. 75.5 million). The rates of mark up range from
Re. 0.4384 |
|
| to
Re. 0.4657 per Rs.l,000 per day or part thereof on the balances outstanding.
These finances |
|
| are
secured against first charge over the existing and future total assets of the
company ranking |
|
| parri
passu with other banks, hypothecation of stocks and personal guarantees of
certain directors. |
|
|
| Of
the aggregate facility of Rs. 20 million (2000: Rs. 20 million) for opening
letters of credit, the |
|
| amount
utilized at the end of the year was Rs. NIL (2000: Rs. 0.785 million). The
facility is secured |
|
| by
lien on import documents and 10% cash margin on letters of credit. |
|
|
| 10.2
- These represents cheques issued but not presented at the balance sheet
date. |
|
|
| 11
- CURRENT PORTION OF LONG TERM LIABILITIES |
|
| Redeemable
capital |
|
6 |
-- |
22,083,780 |
|
| Liabilities
against assets subject to finance lease |
7 |
11,995,445 |
11,672,706 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
11,995,445 |
33,756,486 |
|
|
|
========== |
========== |
|
|
|
|
| 12
- CREDITORS, ACCRUALS AND OTHER PAYABLES |
|
| Trade creditors |
|
|
12,641,291 |
10,853,699 |
|
| Advances
from cement customers |
|
7,757,184 |
7,727,079 |
|
| Accrued
liabilities |
|
32,097,404 |
39,614,669 |
|
| Bills payable |
|
|
1,356,539 |
679,579 |
|
| Bonus payable |
|
|
6,595,852 |
6,777,400 |
|
| Financial
charges accrued on: |
|
|
|
| Redeemable
capital- secured |
|
-- |
156,427 |
|
| Liabilities
against assets subject to finance lease - secured |
55,423 |
-- |
|
| Short
term running finances under |
|
|
|
| mark
up arrangements- secured |
|
1,115,058 |
1,320,237 |
|
| Payable
to government on account of: |
|
|
|
| Sales tax |
|
|
14,927,200 |
-- |
|
| Income tax |
|
|
184,117 |
196,340 |
|
| Royalty
and excise duty |
|
-- |
253,571 |
|
| Payable
towards: |
|
| Workers'
profit participation fund |
|
12.1 |
6,860,527 |
15,481,586 |
|
| Workers'
welfare fund |
|
|
5,910,406 |
4,474,297 |
|
| Security
deposits and retention moneys |
12.2 |
615,117 |
601,915 |
|
| Other payables |
|
|
1,663,447 |
1,283,284 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
91,779,565 |
89,420,083 |
|
|
|
========== |
========== |
|
|
|
|
| 12.1
- Workers' profit participation fund |
|
|
| Balance
as at July 01, |
|
|
15,481,586 |
3,148,488 |
|
| Allocation
for the year |
|
29 |
4,158,543 |
13,209,098 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
19,640,129 |
16,357,586 |
|
| Interest
on funds utilized in company's business |
|
3,010,662 |
65,700 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
22,650,791 |
16,423,286 |
|
| Amount
paid to/on behalf of fund |
|
|
15,790,264 |
941,700 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
6,860,527 |
15,481,586 |
|
|
|
========== |
========== |
|
|
|
|
| 12,2-
These represent the interest free security deposits and retention money
received from contractors |
|
| and
are repayable after satisfactory completion of contracts. |
|
|
| 13- DIVIDENDS |
|
| Unclaimed |
|
|
846,053 |
675,093 |
|
| Proposed |
|
|
43,866,668 |
43,866,668 |
|
|
|
------------------ |
------------------ |
|
|
|
44,712,721 |
44,541,761 |
|
|
|
========== |
========== |
|
|
|
|
| 14
- CONTINGENCIES AND COMMITMENTS |
|
|
|
| 14.1
- Contingencies |
|
|
|
| 14.1.1-The
Engineering Services International (Pakistan)Limited has raised a claim of
Rs. 5,449,000 |
|
| against
the company on account of mechanical installation/ erection. A counter claim
of |
|
| Rs.
1,307,962 has been lodged by the company. The case is pending with Senior
Civil Judge, |
|
| Lahore. |
|
|
| 14.1.2-The
State Cement Corporation of Pakistan (Private) Limited, the previous sole
owner of the |
|
| company,
has raised a claim of Rs. 5,640,000 against the company on account of the
interim |
|
| dividend
declared by previous Board of Directors. The present Board of Directors has
rescinded |
|
| that
declaration of interim dividend on various grounds. The matter is pending for
adjudication with |
|
| the
Securities and Exchange Commission of Pakistan. |
|
|
| 14.1.3-
The company has initiated recovery proceedings for the recovery of Rs.
14,100,000,/being interim |
|
| dividend
pertaining to the year ended June 30, 1992 paid by the previous management to
the |
|
| State
Cement Corporation of Pakistan (Private) Limited. The said dividend has been
rescinded by |
|
| the
Board and recision confirmed at the Annual General Meeting. As a consequence,
the company |
|
| has
with held Rs. 14,100,000 interim dividend pertaining the period ended
December 31, 1994 |
|
| payable
to the State Cement Corporation of Pakistan (Private) Limited. Intimations
have been |
|
| given
to the State Cement Corporation of Pakistan (Private) Limited and the
Securities and |
|
| Exchange
Commission of Pakistan (the application is pending with the Securities and
Exchange |
|
| Commission
of Pakistan). This amount has been withheld on legal advice obtained from the |
|
| corporate
lawyers. |
|
|
| 14.1.4-
First Leasing Corporation has claimed an amount of Rs. 17.747 million on
account of additional |
|
| lease
rentals. The management is in the process of a dialogue with the leasing
company to |
|
| resolve
the matter amicably. |
|
|
| 14.2-
Commitments in respect of: |
|
| Letter
of credit other than for capital expenditure Rs. NIL (2000: Rs. 784,500). |
|
|
| 15
-OPERATING FIXED ASSETS - TANGIBLE |
|
|
|
|
|
Rupees |
|
|
COST |
|
|
DEPRECIATION |
|
Written |
|
|
|
Additions/ |
|
Accumulated |
Charge |
|
Accumulated |
down value |
| Particulars |
|
As at |
(deletions)/ |
As at |
Rate |
as at |
for the |
Adjustment |
as at |
as at |
|
01-07-2000 |
(adjustment) |
30-06-2001 |
% |
01-07-2000 |
year |
on disposal |
30-06-2001 |
30-06-2001 |
|
|
|
| Freehold land |
|
14,653,620 |
-- |
14,653,620 |
-- |
-- |
-- |
-- |
-- |
14,653,620 |
| Buildings on |
|
|
|
|
|
| freehold land |
|
|
|
|
|
| - Factory buildings |
180,158,642 |
509,790 |
180,668,432 |
10 |
134,588,596 |
4,607,984 |
-- |
139,196,580 |
41,471,852 |
| - Office and other buildings |
13,337,926 |
42,048 |
13,379,974 |
5 |
7,488,328 |
294,582 |
-- |
7,782,910 |
5,597,064 |
| - Housing Colony |
33,451,768 |
(500) |
33,451,268 |
5 |
17,082,965 |
818,426 |
(220) |
17,901,171 |
15,550,097 |
| Plant,
machinery and |
1,074,378,428 |
3,764,089 |
1,078,142,517 |
10 |
594,119,381 |
48,402,313 |
-- |
642,521,694 |
435,620,823 |
| equipment |
|
|
|
|
|
| Storage
tanks and |
17,187,050 |
-- |
17,187,050 |
10 |
14,150,522 |
303,653 |
-- |
14,454,175 |
2,732,875 |
| pipe lines |
|
|
|
| Power
installations |
82,975,450 |
-- |
82,975,450 |
10 |
68,013,559 |
1,496,189 |
-- |
69,509,748 |
13,465,702 |
| Furniture,
fixtures and |
15,545,840 |
1,242,090 |
16,373,432 |
10 |
8,786,482 |
778,805 |
(201,098) |
9,364,189 |
7,009,243 |
| other
office equipment |
|
(414,498) |
|
|
|
|
|
| Weighing scales |
|
1,099,615 |
(7,600) |
1,092,016 |
10 |
728,572 |
36,721 |
(3,764) |
761,529 |
330,486 |
| Vehicles |
|
16,238,068 |
250,000 |
14,419,130 |
20 |
10,494,659 |
1,035,827 |
(1,254,665) |
10,275,821 |
4,143,309 |
|
|
(2,068,938) |
|
|
|
|
|
| Heavy vehicles |
|
95,387,001 |
10,939,000 |
106,178,333 |
20 |
69,546,393 |
7,332,295 |
(29,534) |
76,849,154 |
29,329,179 |
|
|
(147,668) |
|
|
|
|
|
| Railway sidings |
|
9,853,476 |
-- |
9,853,476 |
5 |
5,716,191 |
206,864 |
-- |
5,923,055 |
3,930,421 |
| Laboratory
equipment |
16,451,003 |
-- |
16,451,003 |
10 |
12,831,179 |
361,982 |
-- |
13,193,161 |
3,257,842 |
| Library books |
|
78,752 |
1,525 |
80,277 |
10 |
50,666 |
2,961 |
-- |
53,627 |
26,650 |
|
1,570,796,639 |
16,748,542 |
1,584,905,977 |
|
943,597,493 |
65,678,602 |
(1,489,281) |
1,007,786,814 |
577,119,163 |
| Assets
subject to |
|
(2,639,204) |
|
|
|
| finance lease: |
|
|
|
|
| Plant
and Machinery |
49,975,359 |
-- |
49,975,359 |
10 |
17,376,811 |
3,259,855 |
-- |
20,636,666 |
29,338,693 |
|
------------------ |
------------------ |
------------------ |
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
| TOTAL 2001 |
|
1,620,771,998 |
16,748,542 |
1,634,881,336 |
|
960,974,304 |
68,938,457 |
(1,489,281) |
1,028,423,480 |
606,457,856 |
|
|
(2,639,204) |
|
|
|
|
|
========== |
========== |
========== |
|
========== |
========== |
========== |
========== |
========== |
| TOTAL 2000 |
|
1,601,979,936 |
270,576,170 |
1,620,771,996 |
|
887,214,253 |
74,528,076 |
72,939,546 |
960,974,302 |
659,797,694 |
|
|
251,784,110) |
|
|
(73,707,573) |
|
|
========== |
========== |
========== |
|
========== |
========== |
========== |
========== |
========== |
|
| 15.1
-Additions in plant and machinery include assets transferred from leased
assets amounting to Rs. NIL |
|
| (2000:
Rs. 250,515,540). |
|
|
|
|
2001 |
2000 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| 15.2-
Depreciation has been charged as under: |
|
|
| Cost
of goods sold |
|
25 |
68,631,061 |
74,166,419 |
|
| Administrative
and general expenses |
26 |
215,178 |
256,422 |
|
| Selling expenses |
|
27 |
92,218 |
105,235 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
68,938,457 |
74,528,076 |
|
|
========== |
========== |
|
|
| 15.3
- Disposal of operating fixed assets: |
|
|
Rupees |
|
|
|
|
| Particulars of |
Cost |
Accumulated |
Book |
Sale |
Profit/ |
Mode of |
Particulars of purchaser |
|
| vehicles
sold to: |
depreciation |
value |
proceeds |
(loss) |
sale |
|
|
|
| Company |
|
| Executives |
|
| Toyota Corolla |
605,000 |
406,754 |
198,246 |
198,246 |
-- |
As per company's |
Mr. Naveed Ijaz, G.M. |
|
|
|
policy. |
Technical, KCCL, Kohat. |
|
| Others |
|
|
|
| Honda Civic |
615,000 |
433,629 |
181,371 |
180,000 |
(1,371) |
Negotiation |
Mr. Adrian Riaz, House |
|
|
No. 16, Jahangir Park, |
|
|
New Mozung, Lahore |
|
|
| Honda Civic |
848,938 |
414,281 |
434,657 |
445,000 |
10,343 |
Negotiation |
Mrs. Nasim Sultana, |
|
|
House No 6/13-A, |
|
|
Waris Road, Lahore. |
|
|
| 16
- CAPITAL WORK-IN-PROGRESS |
|
| Civil works |
|
|
1,484,108 |
231,983 |
|
| Plant
and machinery |
|
801,354 |
1,868,723 |
|
|
|
|
------------------ |
------------------ |
|
|
|
2,285,462 |
2,100,706 |
|
|
========== |
========== |
|
|
| 17
- LONG TERM LOANS TO EMPLOYEES |
|
| House building |
|
|
3,059,699 |
2,973,433 |
|
| Motor
Car/Motor Cycle |
|
|
1,064,310 |
1,071,178 |
|
| Marriage Loan |
|
|
81,700 |
168,700 |
|
| Other
Long Term Loans |
|
|
146,800 |
193,035 |
|
|
|
|
------------------ |
------------------ |
|
|
|
4,352,509 |
4,406,346 |
|
| Current
maturity shown under current assets |
22.1 |
1,749,911 |
1,689,800 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
2,602,598 |
2,716,546 |
|
|
========== |
========== |
|
|
| 17.1
-The above loans to employees may be re-classified as under: |
|
| Loans
outstanding for period: |
|
| -
exceeding three years |
|
|
115,839 |
320,964 |
|
| -
not exceeding three years |
|
|
2,486,759 |
2,395,582 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
2,602,598 |
2,716,546 |
|
|
========== |
========== |
|
|
| 17.2
-Interest rate and terms of re-payment |
|
|
| Nature of loans |
|
|
Rate of interest |
Monthly |
|
|
|
|
|
installments |
|
| -
House Building - officers |
|
|
6% |
60 |
|
| -
House Building - workers |
|
|
-- |
60 |
|
| -
Vehicle- Officers |
|
|
6% |
60 |
|
| -
Vehicle- Workers |
|
|
-- |
36 |
|
| - Marriage Loan |
|
|
-- |
30 |
|
| - Others |
|
|
-- |
12 |
|
|
|
|
|
|
| House
building and vehicle loans are secured against lien on retirement benefits. |
|
|
| 17.3-Amount
receivable on account of house building loan includes Rs. 46,596 (2000: Rs.
102,359) |
|
| due
from executives. The maximum aggregate amount of loans due from executives of
the |
|
| Company
at the end of any month during the year was Rs. 97,300 (2000: Rs. 156,008). |
|
|
| 17.4
- These loans to employees are considered good. |
|
|
| 18
- LONG TERM DEPOSITS |
|
| Leasing
companies |
|
18.1 |
-- |
-- |
|
| Others |
|
|
977,030 |
926,030 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
977,030 |
926,030 |
|
|
|
========== |
========== |
|
|
| 18.1
- Leasing companies |
|
| Balance
as at June 30 |
|
|
2,000,000 |
2,000,000 |
|
| Current
portion shown under current assets |
22 |
2,000,000 |
2,000,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
-- |
-- |
|
|
|
========== |
========== |
|
|
| 19
- STORES, SPARES AND LOOSE TOOLS |
|
| Stores |
|
19.1 |
59,249,109 |
21,891,607 |
|
| Spares |
|
|
27,611,070 |
28,296,285 |
|
| Loose tools |
|
|
1,448,845 |
1,246,461 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
88,309,024 |
51,434,353 |
|
|
========== |
========== |
|
|
| 19.1
- These include stores in transit valuing Rs. 564,098 (2000: NIL). |
|
|
| 20
- STOCK-IN-TRADE |
|
| Raw materials |
|
25.1 |
787,674 |
797,574 |
|
| Work-in-process |
|
25 |
8,728,666 |
30,277,832 |
|
| Finished goods |
|
25 |
5,620,336 |
14,732,431 |
|
| Packing
materials |
|
25.1 |
3,841,020 |
4,708,105 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
18,977,696 |
50,515,942 |
|
|
========== |
========== |
|
|
| 21
- TRADE DEBTORS |
|
| Considered
good |
|
| Secured |
|
|
1,229,545 |
12,724,902 |
|
| Un-secured |
|
21.1 |
11,918,540 |
16,197,022 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
13,148,085 |
28,921,924 |
|
|
|
| Considered bad |
|
| Secured |
|
|
10,317,461 |
-- |
|
| Un-secured |
|
|
7,565,791 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
17,883,252 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
31,031,337 |
28,921,924 |
|
| Bad
debts written off |
|
21.2 |
17,883,252 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
13,148,085 |
28,921,924 |
|
|
========== |
========== |
|
|
| 21.1
- These include amounts due from associated companies for Rs. NIL (2000: Rs.
2,384,165). |
|
| The
aggregate maximum amount due from associated companies at the end of any
month |
|
| during
the year was Rs. NIL (2000: Rs. 2,384,165). |
|
|
| 21.2
- The company has filed a suit in the Civil Court, Kohat, for the recovery of
the amount, which |
|
| is
pending adjudication. These debts were partially secured against some
vehicles of the |
|
| customer,
which have been seized. However, the company cannot use or sell these
vehicles |
|
| as
the Court has granted a Stay against any such action. |
|
|
| 22-
ADVANCES, DEPOSITS, PREPAYMENTS |
|
| AND
OTHER RECEIVABLES |
|
| Advances-
considered good |
|
| Company's
employees ~ |
|
22.1 |
3,571,733 |
2,975,326 |
|
| Suppliers |
|
|
3,126,667 |
9,555,406 |
|
| Contractors |
|
|
267,426 |
389,472 |
|
| Receivable
from government on account of: |
|
|
| Excise duty |
|
|
1,280,927 |
2,294,662 |
|
| Income tax |
|
|
21,178,794 |
16,440,255 |
|
| Royalty |
|
|
32,022 |
-- |
|
| Sales tax |
|
|
833,263 |
-- |
|
| Letters of credit |
|
|
-- |
382,784 |
|
| Guarantee
margin |
|
|
757,085 |
-- |
|
| Prepayments |
|
|
597,043 |
575,691 |
|
| Current
portion of long-term securities |
|
| with
leasing companies |
|
18.1 |
2,000,000 |
2,000,000 |
|
| Other
receivables |
|
|
556,030 |
581,589 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
34,200,990 |
35,195,185 |
|
|
|
========== |
========== |
|
|
| 22.1
- Advances to company's employees |
|
|
| Current
maturity of long term loans |
17 |
1,749,911 |
1,689,800 |
|
| For purchases |
|
|
740,773 |
591,422 |
|
| Miscellaneous |
|
|
1,081,049 |
694,104 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
3,571,733 |
2,975,326 |
|
|
========== |
========== |
|
|
| 23
- CASH AND BANK BALANCES |
|
| Balances
with banks |
|
| - On current accounts |
|
|
2,261,161 |
10,575,909 |
|
| - On saving accounts |
|
|
45,970,803 |
31,963,051 |
|
| -
On deposit accounts |
|
|
892,531 |
733,785 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
49,124,495 |
43,272,745 |
|
| Cash in hand |
|
|
716,505 |
94,351 |
|
|
|
|
------------------ |
------------------ |
|
|
|
49,841,000 |
43,367,096 |
|
|
|
|
========== |
========== |
|
|
| 24- SALES |
|
|
|
| Sales - gross |
|
|
|
1,369,325,620 |
1,586,049,780 |
|
|
|
|
|
|
| Less:
Rebate on cement |
|
|
23,305,366 |
40,538,090 |
|
| Sales tax |
|
|
152,346,103 |
-- |
|
| Excise duty |
|
|
358,066,700 |
523,650,400 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
533,718,169 |
564,188,490 |
|
|
------------------ |
------------------ |
|
|
|
835,607,451 |
1,021,861,290 |
|
|
|
========== |
========== |
|
|
| 25
- COST OF GOODS SOLD |
|
| Opening
work-in-process |
|
30,277,832 |
35,589,471 |
|
| Raw
and packing materials consumed |
25.1 |
72,934,679 |
93,524,601 |
|
| Power and fuel |
|
|
|
120,087,707 |
139,735,816 |
|
| Furnace
oil and coal |
|
|
278,791,306 |
257,100,788 |
|
| Stores
and spares consumed |
|
|
34,629,406 |
31,626,070 |
|
| Salaries,
wages and other benefits |
|
|
66,245,056 |
63,444,821 |
|
| Royalty,
excise duty and sales tax |
|
|
5,466,214 |
8,429,816 |
|
| Rent,
rates and taxes |
|
|
277,777 |
337,063 |
|
| Repairs
and maintenance |
|
|
6,019,983 |
8,045,479 |
|
| insurance |
|
|
|
3,629,698 |
3,066,263 |
|
| Other expenses |
|
|
|
6,413,225 |
6,392,639 |
|
| Depreciation |
|
|
15.2 |
68,631,061 |
74,166,419 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
693,403,944 |
721,459,246 |
|
| Less:
Closing work-in-process |
|
20 |
8,728,666 |
30,277,832 |
|
|
|
|
------------------ |
------------------ |
|
| Cost
of goods manufactured |
|
|
684,675,278 |
691,181,414 |
|
| Opening
stock of finished goods |
|
|
14,732,431 |
13,366,822 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
699,407,709 |
704,548,236 |
|
| Less:
Closing stock of finished goods |
20 |
5,620,336 |
14,732,431 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
693,787,373 |
689,815,805 |
|
|
|
|
========== |
========== |
|
|
| 25.1
- Raw and packing materials consumed |
|
| Opening
stock as at July 01 |
|
| - Raw materials |
|
|
797,574 |
530,594 |
|
| - Packing materials |
|
|
4,708,105 |
1,477,856 |
|
|
|
------------------ |
------------------ |
|
|
|
5,505,679 |
2,008,450 |
|
| Add:
Purchases during the year |
|
| - Raw materials |
|
|
|
4,502,991 |
5,050,338 |
|
| -
Packing materials |
|
|
67,554,703 |
91,971,492 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
72,057,694 |
97,021,830 |
|
|
|
------------------ |
------------------ |
|
|
|
77,563,373 |
99,030,280 |
|
| Less:
Closing stock as at June 30 |
|
|
|
| - Raw materials |
|
20 |
787,674 |
797,574 |
|
| -
Packing materials |
|
20 |
3,841,020 |
4,708,105 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
4,628,694 |
5,505,679 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
72,934,679 |
93,524,601 |
|
|
|
========== |
========== |
|
|
| 26
- ADMINISTRATIVE AND GENERAL EXPENSES |
|
| Salaries,
wages and other benefits |
|
|
11,659,039 |
9,888,602 |
|
| Vehicle running |
|
|
279,135 |
262,042 |
|
| Traveling
and conveyance |
|
|
1,221,238 |
1,138,955 |
|
| Printing
and stationery |
|
|
379,815 |
299,491 |
|
| Legal
and professional |
|
26.1 |
2,089,132 |
1,700,024 |
|
| Postage,
telephone and telegrams |
|
|
949,400 |
873,234 |
|
| Rent,
rates and taxes |
|
|
400,370 |
664,092 |
|
| Entertainment |
|
|
307,588 |
205,483 |
|
| Auditor's
remuneration |
|
26.2 |
92,000 |
92,000 |
|
| Advertisement |
|
|
75,320 |
203,387 |
|
| Other expenses |
|
|
1,633,735 |
1,745,985 |
|
| Bad
debts written off |
|
21.0 |
17,883,252 |
-- |
|
| Depreciation |
|
15.2 |
215,178 |
256,422 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
37,185,202 |
17,329,717 |
|
|
|
|
========== |
========== |
|
|
| 26.1
- Legal and professional charges include remuneration to cost auditor Rs.
30,000 (2000: 30,000). |
|
|
| 26.2
- Auditor's remuneration |
|
| Audit fee |
|
|
75,000 |
75,000 |
|
| Out
of pocket expenses |
|
17,000 |
17,000 |
|
|
|
------------------ |
------------------ |
|
|
|
92,000 |
92,000 |
|
|
|
========== |
========== |
|
|
| 27
- SELLING EXPENSES |
|
| Salaries,
wages and other benefits |
|
4,545,687 |
4,520,604 |
|
| Vehicle running |
|
932,844 |
835,472 |
|
| Traveling
and conveyance |
|
284,824 |
323,945 |
|
| Printing
and stationery |
|
517,984 |
487,196 |
|
| Postage,
telephone and telegrams |
|
828,271 |
775,164 |
|
| Entertainment |
|
614,868 |
1,122,195 |
|
| Rent,
rates and taxes |
|
193,045 |
162,742 |
|
| Electricity,
water and gas |
|
94,261 |
86,304 |
|
| Advertisement |
|
227,497 |
27,980 |
|
| Miscellaneous |
|
414,184 |
925,041 |
|
| Cement
loading and transportation charges |
|
1,244,941 |
1,408,859 |
|
| Depreciation |
|
15.2 |
92,218 |
105,235 |
|
|
|
|
------------------ |
------------------ |
|
|
|
9,990,624 |
10,780,737 |
|
|
|
========== |
========== |
|
|
| 28
- OTHER INCOME |
|
| Profit/mark-up
on bank deposits |
|
1,056,866 |
1,035,632 |
|
| Income
from sale of scrap |
|
179,239 |
176,304 |
|
| Profit
on sale of fixed assets |
|
13,060 |
147,649 |
|
| Miscellaneous |
|
129,873 |
82,958 |
|
|
|
------------------ |
------------------ |
|
|
1,379,038 |
1,442,543 |
|
|
|
========== |
========== |
|
|
| 29
- FINANCIAL AND OTHER CHARGES |
|
| Financial
charges |
|
| Interest/mark-up
on: |
|
|
1,189,283 |
4,523,853 |
|
| Redeemable
capital |
|
|
| Liabilities
against assets subject to finance lease |
|
2,763,690 |
28,682,957 |
|
| Short
term running finances under mark up arrangements |
4,106,264 |
6,779,498 |
|
| Workers'
profit participation fund |
|
|
3,010,662 |
65,700 |
|
| Bank
charges and commission |
|
|
1,325,835 |
1,209,300 |
|
|
|
|
------------------ |
------------------ |
|
|
12,395,734 |
41,261,308 |
|
|
| Other charges |
|
| Contribution
towards: |
|
|
| Workers'
profit participation fund |
|
4,158,543 |
13,209,098 |
|
| Workers'
welfare fund |
|
1,436,109 |
1,727,769 |
|
|
|
------------------ |
------------------ |
|
|
|
|
5,594,652 |
14,936,867 |
|
| Others |
|
|
|
3,467,360 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
9,062,012 |
14,936,867 |
|
|
|
------------------ |
------------------ |
|
|
|
21,457,746 |
56,198,175 |
|
|
========== |
========== |
|
|
| 30
- TAXATION |
|
| Current |
|
| - for
the year |
|
|
24,382,976 |
25,181,340 |
|
| -
for prior years |
|
|
-- |
931,554 |
|
|
|
|
------------------ |
------------------ |
|
|
|
24,382,976 |
26,112,894 |
|
|
|
|
| Deferred |
|
| - for
the year |
|
|
(5,022,766) |
40,135,680 |
|
| - for prior years |
|
|
-- |
32,364,320 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(5,022,766) |
72,500,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
19,360,210 |
98,612,894 |
|
|
|
|
========== |
========== |
|
|
|
|
|
2001 |
2000 |
|
|
|
|
% |
% |
|
| 30.1
- Tax charge reconciliation |
|
| Numerical
reconciliation between the applicable |
|
| tax
rate and the average effective tax rate |
|
|
| Applicable
tax rate as per Income Tax |
|
| Ordinance, 1979 |
|
|
34.65 |
34.65 |
|
|
|
|
|
|
| Tax
effect of amounts that are: |
|
|
|
|
| not
deductible for tax purposes |
|
|
4.98 |
20.15 |
|
| allowable
deductions for tax purposes |
|
(13.67) |
(27.41) |
|
|
|
|
|
|
| Effect
of change in prior years' tax expense |
|
-- |
13.36 |
|
| Tax
effect of brought forward losses |
|
-- |
(1.17) |
|
|
|
|
------------------ |
------------------ |
|
| Average
effective tax rate charged to profit and loss account |
25.96 |
39.58 |
|
|
========== |
========== |
|
|
|
|
2001 |
2000 |
|
|
|
Rupees |
Rupees |
|
|
| 31
- EARNINGS PER SHARE |
|
| Net
profit for the year |
|
|
55,205,334 |
150,566,505 |
|
| Weighted
average number of ordinary shares |
|
| outstanding
during June 30, 2001: 21,933,334 |
|
| (2000:
21,933,334) |
|
| Earnings
per share - basic and diluted |
|
2.52 |
6.86 |
|
|
|
| There
is no dilutive effect in the basic earnings per share of the company. |
|
|
| 32
- CASH GENERATED FROM OPERATIONS |
|
| Net
profit before taxation |
|
|
74,565,544 |
249,179,399 |
|
|
| Adjustments
for non cash charges and others: |
|
| Depreciation
on operating fixed assets |
|
68,938,457 |
74,528,076 |
|
| Profit
on sale of fixed assets |
|
|
(13,060) |
(147,649) |
|
| Book
value of fixed assets written off |
|
324,490 |
391,790 |
|
| Provision
for earned leave (net) |
|
|
256,482 |
(30,213) |
|
| Bad
debts written off |
|
|
17,883,252 |
-- |
|
| Profit/mark-up
on bank deposits |
|
|
(1,056,866) |
(1,035,632) |
|
| Financial
charges |
|
|
12,395,734 |
41,261,308 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
98,728,489 |
114,967,680 |
|
|
------------------ |
------------------ |
|
| Operating
profit before working capital changes |
|
173,294,033 |
364,147,079 |
|
| Effect
on cash flows due to working capital changes |
32 |
916,218 |
29,590,649 |
|
|
------------------ |
------------------ |
|
|
174,210,251 |
393,737,728 |
|
|
========== |
========== |
|
|
| 32.1
- Working capital changes |
|
| (Increase)/decrease
in current assets |
|
|
| Stores,
spares and loose tools |
|
(36,874,671) |
4,908,377 |
|
| Stock in trade |
|
31,538,246 |
448,801 |
|
| Trade debtors |
|
(2,109,413) |
14,539,095 |
|
| Advances,
deposits, prepayments and other receivables |
5,696,391 |
(7,367,148) |
|
|
------------------ |
------------------ |
|
|
|
|
(1,749,447) |
12,529,125 |
|
|
| Increase
in current liabilities |
|
|
| Creditors,
accruals and other liabilities |
|
2,665,665 |
17,061,524 |
|
|
------------------ |
------------------ |
|
|
|
|
916,218 |
29,590,649 |
|
|
========== |
========== |
|
|
| 33
- CASH AND CASH EQUIVALENTS |
|
| Cash
and bank balances |
|
49,841,000 |
43,367,096 |
|
| Short
term finances |
|
(10,922,808) |
(69,321,124) |
|
|
------------------ |
------------------ |
|
|
|
38,918,192 |
(25,954,028) |
|
|
========== |
========== |
|
|
| 34
- TRANSACTIONS WITH ASSOCIATED UNDERTAKINGS |
|
| The
company sold to associated undertakings Grey cement in aggregate sum of Rs.
NIL during the |
|
| year
(2000: Rs. 499,100) at normal selling rates. |
|
|
| 35
- REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES |
|
|
|
Chief
Executive |
Director |
Executive |
|
|
|
2001 |
2000 |
2001 |
2000 |
2001 |
2000 |
|
|
|
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
|
|
|
|
| Managerial
Remuneration |
360,000 |
360,000 |
360,000 |
360,000 |
1,614,222 |
2,088,956 |
|
| Rent
and utilities allowances |
120,000 |
120,000 |
120,000 |
120,000 |
783,891 |
1,049,274 |
|
| Medical
re-imbursement |
-- |
-- |
162,978 |
146,911 |
151,263 |
135,749 |
|
| Bonus |
|
-- |
-- |
-- |
-- |
247,232 |
287,887 |
|
| Retirement
benefits |
-- |
-- |
-- |
-- |
430,458 |
564,522 |
|
| Other
re-imbursement of expenses |
1,221,238 |
1,014,844 |
588,909 |
860,827 |
1,442,079 |
1,588,683 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
1,701,238 |
1,494,844 |
1,231,887 |
1,487,738 |
4,669,145 |
5,715,071 |
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
| Number
of persons |
1 |
1 |
1 |
1 |
14 |
14 |
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
|
| 35.1
- The company also provides the Chief Executive, certain Directors and
Executives of the company |
|
| with
free use of company maintained cars and telephone facilities. |
|
|
|
|
|
2001 |
2000 |
|
| 36
- NUMBER OF EMPLOYEES |
|
| Number
of employees at year end |
|
451 |
447 |
|
|
========== |
========== |
|
|
|
|
| 37
- CAPACITY AND PRODUCTION- TONNES |
|
|
|
|
Clinker |
Cement |
|
|
2001 |
2000 |
2001 |
2000 |
|
|
| Plant capacity |
|
540,000 |
540,000 |
567,000 |
567,000 |
|
| Actual
production |
290,804 |
347,328 |
325,672 |
374,274 |
|
|
| 37.1
- The under utilization of available capacity was mainly due to overall slow
down in economic |
|
| activity
of the country and the overall increase in supply of cement in the market. |
|
|
| 38
- FINANCIAL ASSETS AND LIABILITIES |
|
|
|
|
|
|
Rupees |
|
|
Interest/mark-up bearing |
|
|
Non-interest bearing |
|
|
|
|
|
|
Total |
Total |
|
|
|
Maturity upto |
Maturity after |
Sub |
Maturity upto |
Maturity after |
Sub |
2001 |
2000 |
|
|
|
one year |
one year |
Total |
one year |
one year |
Total |
|
|
| Financial assets |
|
|
| Loans
and advances to employees |
115,182 |
161,657 |
276,839 |
3,456,551 |
2,440,941 |
5,897,492 |
6,174,331 |
5,691,872 |
|
| Deposits |
|
-- |
-- |
-- |
2,000,000 |
977,030 |
2,977,030 |
2,977,030 |
2,926,030 |
|
| Trade debts |
|
-- |
-- |
-- |
13,148,085 |
-- |
13,148,085 |
13,148,085 |
28,921,924 |
|
| Advances,
deposits & pre-payments |
|
|
| -
Profit/mark-up accrued |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
96,454 |
|
| -
Other receivables |
-- |
-- |
-- |
458,930 |
-- |
458,930 |
458,930 |
389,135 |
|
| Cash
and bank balances |
45,970,803 |
|
45,970,803 |
3,870,197 |
-- |
3,870,197 |
49,841,000 |
43,367,096 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
46,085,985 |
161,657 |
46,247,642 |
22,933,763 |
3,417,971 |
26,351,734 |
72,599,376 |
81,392,511 |
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
|
| Financial
liabilities |
|
|
|
| Redeemable
capital |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
22,083,780 |
|
| Liabilities
against assets subject to |
|
|
| finance lease |
|
11,995,445 |
4,006,641 |
16,002,086 |
-- |
-- |
-- |
16,002,086 |
26,730,215 |
|
| Deposits
and retention moneys |
-- |
-- |
-- |
615,117 |
2,354,850 |
2,969,967 |
2,969,967 |
3,408,075 |
|
| Short
term finances |
8,950,048 |
-- |
8,950,048 |
1,972,760 |
-- |
1,972,760 |
10,922,808 |
69,321,124 |
|
| Creditor,
accrued & other liabilities |
-- |
-- |
-- |
46,280,994 |
-- |
46,280,994 |
46,280,994 |
57,319,558 |
|
| Dividends |
|
-- |
-- |
-- |
44,712,721 |
-- |
44,712,721 |
44,712,721 |
44,541,761 |
|
| Commitments |
|
-- |
-- |
-- |
-- |
-- |
-- |
-- |
784,500 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
20,945,493 |
4,006,641 |
24,952,134 |
93,581,592 |
2,354,850 |
95,936,442 |
120,888,576 |
224,189,013 |
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
| 38.1
- Concentration of credit risk: |
|
| Credit
risk represents the accounting loss that would be recognised at the reporting
date if |
|
| counter
parties completely failed to perform as contracted. The company believes that
it is not |
|
| exposed
to major concentration of credit risks. However, to manage any possible
exposure to |
|
| credit
risk, the company applies approved credit limits to its customers and also
obtains |
|
| collaterals. |
|
|
| 38.2
- Foreign exchange risk management: |
|
| Foreign
currency risk arises mainly where payables exist due to purchase
transactions. |
|
| Payables
exposed to foreign currency risks are identified as either creditors or bills
payable. |
|
| The
company does not view hedging as being financially feasible owing to the
excessive costs |
|
| involved. |
|
|
| 38.3
- Fair value of financial instruments |
|
| The
carrying value of all the financial instruments (i.e. financial assets and
liabilities) reflected in the |
|
| financial
statements approximate their fair values. |
|
|
| 39- General |
|
| Corresponding
figures have been rearranged, wherever necessary for comparison purposes. |
|
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
|
| Pattern
of Shareholding as at June 30, 2001 |
|
|
| No. of |
Shareholding |
No. of |
|
| Shareholders |
From |
To |
Shares held |
|
|
| 74 |
1 |
100 |
6,806 |
|
|
| 2149 |
101 |
500 |
436,534 |
|
|
| 26 |
501 |
1000 |
20,500 |
|
|
| 18 |
1001 |
5000 |
39,100 |
|
|
| 10 |
5001 |
10000 |
89,100 |
|
|
| 2 |
10001 |
15000 |
25,400 |
|
|
| 1 |
45001 |
50000 |
50,000 |
|
|
| 1 |
120001 |
125000 |
122,000 |
|
|
| 1 |
145001 |
150000 |
149,400 |
|
|
| 1 |
160001 |
165000 |
161,500 |
|
|
| 1 |
175001 |
180000 |
180,000 |
|
|
| 1 |
330001 |
335000 |
335,000 |
|
|
| 1 |
355001 |
360000 |
356,500 |
|
|
| 1 |
415001 |
420000 |
417,800 |
|
|
| 1 |
770001 |
775000 |
774,600 |
|
|
| 1 |
865001 |
870000 |
869,200 |
|
|
| 1 |
910001 |
915000 |
914,500 |
|
|
| 1 |
1200001 |
1205000 |
1,204,000 |
|
|
| 1 |
1970001 |
1975000 |
1,973,994 |
|
|
| 1 |
1995001 |
2000000 |
2,000,000 |
|
|
| 1 |
2510001 |
2515000 |
2,513,500 |
|
|
| 1 |
2605001 |
2610000 |
2,606,000 |
|
|
| 1 |
6685001 |
6690000 |
6,687,900 |
|
|
| ------------------ |
|
------------------ |
|
| 2296 |
|
|
21,933,334 |
|
| ========== |
|
|
========== |
|
|
| Categories of |
|
No. of |
Shares |
Percentage |
|
| Shareholders |
|
Shareholders |
Held |
of Capital |
|
|
| Individuals |
|
2284 |
4,953,540 |
22.59 |
|
| Investment
Companies |
|
1 |
1,600 |
0.01 |
|
| Joint
Stock Companies |
|
9 |
121,372,194 |
56.41 |
|
| Foreign
Companies |
|
2 |
4,606,000 |
21.00 |
|
|
|
------------------ |
------------------ |
------------------ |
|
| Grand Total |
|
2296 |
21,933,334 |
100.00 |
|
|
========== |
========== |
========== |
|
|
|
|
|
|
|
|
|
|
|
|
