| Burewala Textile Mills Limited |
|
|
|
|
|
|
|
| Annual
Report 2001 |
|
|
|
| CONTENTS |
|
|
| Company
Information |
|
| Financial
Highlights |
|
| Notice
of Annual General Meeting |
|
| Directors'
Report |
|
| Auditors' Report to the Members |
|
| Balance
Sheet |
|
| Profit
and Loss Account |
|
| Cash
Flow Statement |
|
| Statement
of Changes in Equity |
|
| Notes
to the Accounts |
|
| Pattern
of Shareholdings |
|
|
|
| COMPANY
INFORMATION |
|
|
| Board
of Directors |
M. Hussain Dawood
(Chairman) |
|
|
|
Shahzada Dawood (Chief
Executive) |
|
|
|
Khawaja Amanullah |
|
|
|
Abdul Samad Dawood |
|
|
|
Mohammad Aslam |
|
|
|
Malik Mushtaq Ali Khan |
|
|
|
Iftikhar Ahmed Dar |
|
|
|
| Company
Secretary |
Ismail Habib |
|
|
|
| Auditors |
|
Rahman Sarfaraz & Co. |
|
|
|
Chartered Accountants |
|
|
|
| Bankers |
|
Habib Bank Limited |
|
|
|
United Bank Limited |
|
|
|
National Bank of Pakistan |
|
|
|
Metropolitan Bank Limited |
|
|
|
| Registered
Office |
35-A, Shahrah-e-Abdul
Hameed Bin Baadees |
|
|
|
(Empress Road), Lahore. |
|
|
|
Phones: (042) 6301601 -
07 |
|
|
|
| Mills |
|
Dawoodabad, |
|
|
District Vehari. |
|
|
Phones: (0447) 53246,
53145, 53347 |
|
|
|
| FINANCIAL
HIGHLIGHTS |
|
| Five
Years at a Glance |
|
|
|
(All amounts in thousands) |
|
| Particulars |
|
2001 |
2000 |
1999 |
1998 |
1997 |
|
| Turnover |
|
360,363 |
431,110 |
373,605 |
360,098 |
445,668 |
|
| Profit
before taxation |
|
67,003 |
81,969 |
32,318 |
38,460 |
32,490 |
|
| Profit
after taxation |
|
50,503 |
60,469 |
33,113 |
39,190 |
48,961 |
|
| Paid
up capital |
|
73,074 |
73,074 |
73,074 |
73,074 |
73,074 |
|
| Number
of shares (Ordinary) (numbers) |
7,307,405 |
7,307,405 |
7,307,405 |
7,307,405 |
7,307,405 |
|
| Owners'
equity |
|
359,202 |
337,929 |
335,919 |
353,957 |
333,036 |
|
| Break
up value of shares of Rs. 10 each |
|
| (rupees) |
|
49.16 |
46.25 |
45.97 |
48.44 |
45.58 |
|
| Earning
per share-basic (rupees) |
6.91 |
8.28 |
4.53 |
5.36 |
6.70 |
|
| Bank
balances (net) |
|
50,960 |
143,683 |
35,036 |
38,808 |
31,242 |
|
| Dividend |
|
40% |
80% |
70% |
25% |
50% |
|
| (percentage) |
|
|
|
| Total assets |
|
488,864 |
509,743 |
482,781 |
477,710 |
480,921 |
|
|
|
|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
|
| Notice
is hereby given that the forty-eighth Annual General Meeting of the members
of |
|
| The
Burewala Textile Mills Limited will Insha Allah be held on March 18, 2002 at
3.00 p.m. at the |
|
| Registered
Office of the Company at Lahore to transact the following business after
recitation from |
|
| the
Holy Quran: |
|
|
| 1.
To confirm the minutes of the forty-seventh Annual General Meeting held on
March 17,2001; |
|
| 2.
To receive, consider and adopt the Audited Accounts of the Company for the
year ended |
|
| September
30,2001 together with the Directors' and Auditors' Reports thereon; |
|
| 3.
To consider and approve payment of cash dividend as recommended by the
Directors; |
|
| 4.
To appoint Auditors and to fix their remuneration. The retiring Auditors M/s.
Rahman Sarfaraz & |
|
| Co.,
being eligible, offer themselves for re-appointment. |
|
| 5.
To elect seven Directors of the Company for a period of three years as fixed
by the Board under |
|
| section
178(1 ) of the Companies Ordinance 1984 in place of the following retiring
Directors: |
|
|
| 1.
Mr. M. Hussain Dawood |
|
2. Mr. Shahzada Dawood |
|
| 3.
Khawaj a Amanullah |
|
4. Mr. Abdul Samad Dawood |
|
| 5.
Mr. Mohammad Aslam |
|
6. Malik Mushtaq Ali Khan |
|
| 7.
Mr. Iftikhar Ahmed Dar |
|
|
| 6.
To transact any other business with the permission of the Chairman. |
|
|
|
BY ORDER OF THE BOARD |
|
|
|
|
| Lahore |
|
Ismail Habib |
|
| February
20, 2002 |
|
(Company Secretary) |
|
|
| Notes: |
|
|
| 1.
The Share Transfer Books of the Company will remain closed from March 11,
2002 to |
|
| March
18, 2002 (both days inclusive). |
|
|
| 2.
A member entitled to attend and vote at the Meeting may appoint another
member as his / her |
|
| proxy
to attend and vote. Votes may be given personally or by proxy or by an
attorney or in case of |
|
| Corporation
by a duly authorized representative. The instrument of proxy duly executed
should |
|
| be
lodged at the Registered Office of the Company not later than forty-eight
hours before the |
|
| Meeting. |
|
|
| 3.
The members are requested to notify the change in addresses, if any,
immediately. |
|
|
| 4.
Any person, who seeks to contest as Director of the Company, must file with
the Company at the |
|
| Registered
Office, a notice of his intention not later than fourteen days before the
Annual General |
|
| Meeting
in accordance with section 178(3) of the Companies Ordinance 1984. |
|
|
|
| DIRECTORS'
REPORT |
|
|
| The
Directors are pleased to present their Annual Report together with the
Audited Accounts for the |
|
| year
ended September 30,2001 before the forty-eighth Annual General Meeting of the
Company. |
|
|
| Financial
Results |
|
| The
gross profit has decreased to Rs. 50,512,540/- during the year under review,
as compared to |
|
| Rs.
65,245,597/- for the previous year. The gross profit percentage has decreased
to 14.02% as |
|
| compared
to 15.13% for the previous year. The net profit before taxation for the year
is |
|
| Rs.
67,003,078/- as compared to Rs. 81,969,238/- for the previous year, after
providing for all the |
|
| operating,
administrative, selling & distribution and financial expenses. The
summary of the |
|
| financial
results is being furnished hereunder for a quick glance: |
|
|
|
2001 |
2000 |
|
|
Rupees |
Rupees |
|
| Sales |
|
360,362,859 |
431,110,172 |
|
| Gross profit |
|
50,512,540 |
65,245,597 |
|
| Operating
profit |
|
17,197,406 |
34,561,506 |
|
| Other
income |
|
52,001,788 |
51,250,660 |
|
|
========== |
========== |
|
| Profit
before taxation |
|
67,003,078 |
81,969,238 |
|
| Provision
for taxation |
|
|
|
| (including
deferred taxation) |
|
(16,500,000) |
(21,500,000) |
|
|
---------- |
---------- |
|
| Profit
after taxation |
|
50,503,078 |
60,469,238 |
|
| Un-appropriated
profit brought forward |
|
20,113,121 |
18,103,123 |
|
|
---------- |
---------- |
|
| Profit
available for appropriation |
|
70,616,199 |
78,572,361 |
|
|
========== |
========== |
|
|
|
|
| Dividend |
|
| The
Directors recommend a payment of final cash dividend of 20% (Rs. 2.00 per
share) on the paid |
|
| up
capital of the Company. This is in addition to the interim dividend @ 20%
already paid during the |
|
| year.
Accordingly the following appropriations have been made: |
|
|
| Profit
available for appropriation |
|
70,616,199 |
78,572,361 |
|
| Appropriations: |
|
|
|
| Interim
cash dividend @ 20% - already paid (2000: nil) |
|
(14,614,811) |
-- |
|
| Final
cash dividend @ 20% (2000: 80%) |
|
(14,614,811) |
(58,459,240) |
|
|
---------- |
---------- |
|
| Un-appropriated
profit carried forward |
|
41,386,577 |
20,113,121 |
|
|
========== |
========== |
|
| Earning
Per Share - Basic |
|
6.91 |
8.28 |
|
|
| Future
Prospects |
|
| The
sales during the current year indicate that the year 2001-02 will not be
favourable when |
|
| compared
to the profits of the year under review. The continued acute recession in the
country |
|
| coupled
with the Afghanistan crisis further worsens the prospects at present for the
remaining |
|
| financial
year. Nevertheless, if the sales during the remaining part of the year show
improvement, the |
|
| prospects
of earnings may equal the earnings of the year under review. |
|
|
| Pattern
of Shareholdings |
|
| A
statement reflecting the pattern of shareholdings is attached to the Annual
Report. |
|
|
| Auditors |
|
| The
Auditors Messers Rahman Sarfaraz & Co., Chartered Accountants retire at
the conclusion of the |
|
| Annual
General Meeting. Being eligible, offer themselves for re-appointment. |
|
|
| Staff
Relations |
|
| The
Company continues to benefit from the efforts and dedication of all its
employees. The Directors |
|
| are
pleased to record their appreciation for the hard work and devotion to duty
by all cadres of |
|
| employees. |
|
|
| Miscellaneous |
|
| The
Board places on record its deep sense of sorrow on passing away of Mr. Ahmed
Dawood, |
|
| Chairman
and founder of Dawood Group of Industries. His services to Dawood Group and
indeed |
|
| to
the industrialization of Pakistan cannot be adequately described and his
demise is |
|
| an
irreplaceable loss to the country. |
|
|
| The
Board would also like to place on record with profound sorrow the passing
away of one of the |
|
| pioneering
members of the Group Mr. Suleman Dawood, whose contribution not only to the |
|
| Group
but the country's industrial development cannot be overstated. |
|
|
| The
Board would also like to express its grief on the demise of Mr. Sardar Ali
Khan and Khan |
|
| Amir
Abdullah Khan Rokhari who were Directors of the Company. |
|
|
| The
Board offered Fateha for the departed souls and prayed to Allah to grant them
peace and extends |
|
| sympathies
to their families. |
|
|
|
ON BEHALF OF THE BOARD |
|
|
|
|
| LAHORE |
|
M. Hussain Dawood |
|
| February
09, 2002 |
|
(Chairman) |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed Balance Sheet of THE BUREWALA TEXTILE MILLS LIMITED |
|
| as
at 30 September, 2001 and the related Profit and Loss Account, Cash Flow
Statement and' |
|
| Statement
of Changes in Equity together with the notes forming part thereof, for the
year then ended |
|
| and
we state that we have obtained all the information and explanations which, to
the best of our |
|
| knowledge
and belief, were necessary for the purposes of our audit. |
|
|
| It
is the responsibility of the Company's management to establish and maintain a
system of internal |
|
| control,
and prepare and present the above said statement in conformity with the
approved |
|
| accounting
standards and the requirements of 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 |
|
| standards
require that we plan and perform the audit to obtain reasonable assurance
about whether the |
|
| above
said statements are free of any material misstatement. An audit includes
examining, on a test |
|
| basis,
evidence supporting the amounts and disclosures in the above said statements.
An audit also |
|
| includes
assessing the accounting policies and significant estimates made by
management, as well |
|
| as,
evaluating the overall presentation of the above said statements. We believe
that our audit |
|
| provides
a reasonable basis for our opinion and, after due verification, we report
that: |
|
|
| a)
in our opinion, proper books of accounts have been kept by the Company as
required by the |
|
| Companies
Ordinance, 1984; |
|
|
| b)
in our opinion: |
|
| (i)
the Balance Sheet and Profit and Loss Account together with the notes thereon
have been |
|
| drawn
up in conformity with the Companies Ordinance, 1984, and are in agreement
with |
|
| the
books of account and are further in accordance with accounting policies
consistently |
|
| applied; |
|
|
| (ii)
the expenditure incurred during the year was for the purpose of the Company's
business; |
|
| and |
|
|
| (iii)
the business conducted, investments made and the expenditure incurred during
the year |
|
| were
in accordance with the objects of the Company. |
|
|
| c)
in our opinion and to the best of our information and according to the
explanations given to us, |
|
| the
Balance Sheet, Profit and Loss Account, Cash Flow Statement and Statement of
Changes in |
|
| Equity
together with the notes forming part thereof conform with approved accounting |
|
| standards
as applicable in Pakistan, and give the information required by the Companies |
|
| Ordinance,
1984 in the manner so required and respectively give a true and fair view of
the |
|
| state
of the Company's affairs as at 30 September, 2001 and of the profit, its cash
flow and |
|
| changes
in equity for the year then ended; and |
|
|
| d)
in our opinion Zakat deductible at source under the Zakat and Ushr Ordinance
1980 was |
|
| deducted
by the Company and deposited in the Central Zakat Fund established under
Section 7 |
|
| of
that Ordinance. |
|
|
|
(RAHMAN SARFARAZ & CO.) |
|
Lahore |
|
|
Chartered Accountants |
|
February 09, 2002 |
|
|
|
| BALANCE
SHEET AS AT SEPTEMBER 30, 2001 |
|
|
|
Note |
2001 |
2000 |
|
|
|
Rupees |
Rupees |
|
| CAPITAL
AND LIABILITIES |
|
| Share
Capital and Reserves |
|
| Share
Capital: |
|
| Authorized |
|
3 |
150,000,000 |
150,000,000 |
|
|
|
========== |
========== |
|
| Issued,
subscribed and fully paid up |
|
4 |
73,074,050 |
73,074,050 |
|
| Reserves |
|
5 |
244,741,688 |
244,741,688 |
|
|
|
---------- |
---------- |
|
|
|
317,815,738 |
317,815,738 |
|
| Un-appropriated
Profit |
|
|
41,386,577 |
20,113,121 |
|
|
|
|
---------- |
---------- |
|
|
|
359,202,315 |
337,928,859 |
|
| Obligations
Under Finance Lease |
|
6 |
501,415 |
775,911 |
|
|
| Deferred
Liabilities: |
|
| Deferred
taxation |
|
7 |
25,500,000 |
25,500,000 |
|
| Provision
for gratuity |
|
8 |
39,361,959 |
23,148,087 |
|
|
|
---------- |
---------- |
|
|
64,861,959 |
48,648,087 |
|
| Current
Liabilities: |
|
| Current
portion of obligations under finance lease |
6 |
274,497 |
225,707 |
|
| Bank
overdraft |
|
9 |
1,233,586 |
790,430 |
|
| Creditors,
accrued charges and other liabilities |
10 |
24,379,417 |
30,690,547 |
|
| Provision
for taxation |
|
11 |
23,796,230 |
32,224,479 |
|
| Proposed
dividend on ordinary shares |
|
|
14,614,811 |
58,459,240 |
|
|
|
---------- |
---------- |
|
|
|
64,298,541 |
122,390,403 |
|
| Contingencies
and Commitments |
|
12 |
---------- |
---------- |
|
|
488,864,230 |
509,743,260 |
|
|
========== |
========== |
|
| PROPERTY
AND ASSETS |
|
| Operating
Fixed Assets |
|
13 |
118,964,328 |
127,063,234 |
|
| Investments |
|
14 |
64,639,262 |
64,639,262 |
|
| Long
Term Deposits |
|
|
1,820,987 |
1,852,282 |
|
|
|
|
|
| Current
Assets: |
|
|
|
|
| Stores,
spare pans and loose tools |
|
15 |
16,810,876 |
18,330,444 |
|
| Stock
in trade |
|
16 |
198,642,366 |
136,584,472 |
|
| Book debts |
|
17 |
14,151,020 |
11,522,551 |
|
| Advances,
deposits, prepayments and |
|
|
|
|
| other
receivables |
|
18 |
21,641,942 |
5,277,444 |
|
| Cash
and bank balances |
|
19 |
52,193,449 |
144,473,571 |
|
|
|
---------- |
---------- |
|
|
303,439,653 |
316,188,482 |
|
|
---------- |
---------- |
|
|
488,864,230 |
509,743,260 |
|
|
========== |
========== |
|
| Notes:
The annexed notes (1 to 33) form an integral part of these accounts. |
|
|
|
Shahzada Dawood |
|
Khawaja Amanullah |
|
|
Chief Executive |
|
Director |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 2001 |
|
|
|
Note |
2001 |
2000 |
|
|
|
Rupees |
Rupees |
|
| Sales |
|
20 |
360,362,859 |
431,110,172 |
|
| Cost
of Goods Sold |
|
21 |
309,850,319 |
365,864,575 |
|
|
|
|
---------- |
---------- |
|
| Gross Profit |
|
50,512,540 |
65,245,597 |
|
|
| Operating
Expenses |
|
| Administrative
and general |
|
22 |
29,151,680 |
25,535,976 |
|
| Selling
and distribution |
|
23 |
4,163,454 |
5,148,115 |
|
|
---------- |
---------- |
|
|
33,315,134 |
30,684,091 |
|
|
---------- |
---------- |
|
| Operating
Profit |
|
17,197,406 |
34,561,506 |
|
| Other
income |
|
24 |
52,001,788 |
51,250,660 |
|
|
|
---------- |
---------- |
|
| Financial
and other charges |
|
25 |
2,196,116 |
3,842,928 |
|
|
|
---------- |
---------- |
|
| Profit
Before Taxation |
|
67,003,078 |
81,969,238 |
|
|
| Provision
for taxation: |
|
| -Current |
|
(16,500,000) |
(21,000,000) |
|
| - Deferred |
|
-- |
(500,000) |
|
|
---------- |
---------- |
|
|
(16,500,000) |
(21,500,000) |
|
|
---------- |
---------- |
|
| Profit
After Taxation |
|
50,503,078 |
60,469,238 |
|
| Un-appropriated
Profit Brought Forward |
|
20,113,121 |
18,103,123 |
|
|
|
---------- |
---------- |
|
| Profit
available for appropriation |
|
70,616,199 |
78,572,361 |
|
| Appropriations: |
|
| Interim
dividend |
|
14,614,811 |
-- |
|
|
|
|
|
| Proposed
dividend on ordinary shares |
|
14,614,811 |
58,459,240 |
|
| Un-appropriated
Profit Carried Forward |
|
41,386,577 |
20,113,121 |
|
|
---------- |
---------- |
|
| Earning
Per Share - Basic |
|
26 |
6.91 |
8.28 |
|
|
========== |
========== |
|
| Notes:
The annexed notes (1 to 33) form an integral part of these accounts. |
|
|
|
Shahzada Dawood |
|
Khawaja Amanullah |
|
|
Chief Executive |
|
Director |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 2001 |
|
|
|
Note |
2001 |
2000 |
|
|
|
Rupees |
Rupees |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| Cash
generated from operations |
|
27 |
15,794,509 |
170,804,966 |
|
| Less:
Payments: |
|
|
|
| - Income tax |
|
(25,743,249) |
(254,224) |
|
| -
Staff gratuity |
|
(4,133,760) |
(6,164,021) |
|
|
---------- |
---------- |
|
|
(29,877,009) |
(6,418,245) |
|
|
---------- |
---------- |
|
| Net
cash (outflow)/inflow from operating activities |
|
(14,082,500) |
164,386,721 |
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
| Long
term deposits |
|
31,295 |
-- |
|
| Fixed
capital expenditure |
|
(4,065,806) |
(6,314,803) |
|
| Sale
proceeds of fixed assets |
|
164,465 |
95,652 |
|
|
---------- |
---------- |
|
| Net
cash (outflow) from investing activities |
|
(3,870,046) |
(6,219,151) |
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
| Obligations
under finance lease (net) |
|
(225,706) |
(225,707) |
|
| Dividend
paid |
|
(74,101,870) |
(48,504,548) |
|
|
---------- |
---------- |
|
| Net
cash (outflow) from financing activities |
|
(74,327,576) |
(48,730,255) |
|
|
---------- |
---------- |
|
| Net
increase/(decrease) in cash and cash equivalents |
|
(92,280,122) |
109,437,315 |
|
| Cash
and cash equivalents at the beginning of the year |
|
144,473,571 |
35,036,256 |
|
|
---------- |
---------- |
|
| Cash
and cash equivalents at the end of the year |
28 |
52,193,449 |
144,473,571 |
|
|
========== |
========== |
|
|
|
Shahzada Dawood |
|
Khawaja Amanullah |
|
|
Chief Executive |
|
Director |
|
|
|
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 2001 |
|
|
|
2001 |
2000 |
|
|
Rupees |
Rupees |
|
| 1SSUED,
SUBSCRIBED AND FULLY |
|
| PAID
UP SHARE CAPITAL |
|
|
| 7,307,405
ordinary shares of Rs. 10 each |
|
73,074,050 |
73,074,050 |
|
|
|
|
| RESERVES |
|
| Share
premium: |
|
| Balance
as on October 01 |
|
89,535,125 |
89,535,125 |
|
| Appropriation
from/(to) profit |
|
-- |
-- |
|
|
--------- |
--------- |
|
| Balance
as on September 30 |
|
89,535,125 |
89,535,125 |
|
|
| Capital
reserve: |
|
| Balance
as on October 01 |
|
6,563 |
6,563 |
|
| Appropriation
from/(to) profit |
|
-- |
-- |
|
|
--------- |
--------- |
|
| Balance
as on September 30 |
|
6,563 |
6,563 |
|
|
| General
reserve: |
|
| Balance
as on October 01 |
|
154,200,000 |
154,200,000 |
|
| Appropriation
from/(to) profit |
|
-- |
-- |
|
|
--------- |
--------- |
|
| Balance
as on September 30 |
|
154,200,000 |
154,200,000 |
|
|
| Exchange
Equalization Reserve: |
|
| Balance
as on October 01 |
|
1,000,000 |
1,000,000 |
|
| Appropriation
from/(to) profit |
|
-- |
-- |
|
|
--------- |
--------- |
|
| Balance
as on September 30 |
|
1,000,000 |
1,000,000 |
|
|
|
|
| UN-APPROPRIATED
PROFIT |
|
| Balance
as on October 01 |
|
20,113,121 |
18,103,123 |
|
| Profit
for the year after taxation |
|
50,503,078 |
60,469,238 |
|
| Interim
dividend |
|
(14,614,811) |
-- |
|
| Final
Dividend |
|
(14,614,811) |
(58,459,240) |
|
|
--------- |
--------- |
