| ALLAWASAYA TEXTILE & FINISHING MILLS LIMITED |
|
|
|
| ANNUAL
REPORT 2003 |
|
|
| BOARD
OF DIRECTORS |
|
| Mian
Muhammad Jamil |
Chairman |
|
| Mian
Maqbool Ahmad Sheikh |
Chief Executive |
|
| Mrs. Nusrat Jamil |
|
Director |
|
| Mian
Tanvir Ahmad Sheikh |
Director |
|
| Mian
Sarfraz Ahmad Sheikh |
Director |
|
| Mian
Tauqir Ahmad Sheikh |
Director |
|
| Mian
Muhammad Bilal Ahmad Sheikh |
Director |
|
| Mian
Muhammad Alamgir Jamil Khan |
Director |
|
|
| CHIEF
FINANCIAL OFFICER |
|
| Muhammad
Ismail |
|
|
| AUDIT
COMMITTEE. |
|
| Mian
Muhammad Jamil |
Chairman |
|
| Mian
Tanvir Ahmad Sheikh |
Member |
|
| Mian
Muhammad Alamgir Jamil Khan |
Member |
|
|
| COMPANY
SECRETARY |
|
| Muhammad
Ismail |
|
|
| AUDITORS |
|
| M.
Yqusuf Adil Saleem & Co. |
|
| Chartered
Accountants |
|
|
| BANKERS |
|
| M/s
Habib Bank Limited |
|
| M/s
Bank Al-Habib Limited |
|
| M/s
Metropolitan Bank Limited |
|
|
| REGISTERED
OFFICE |
|
| Mumtazabad
Industrial Area, |
|
| Chowk
Allawasaya, |
|
| Vehari
Road, Multan. |
|
|
| DIRECTORS
REPORT |
|
| In
the name of flllph the Most Beneficent & the Merciful |
|
| Dear
Shareholders |
|
|
| Your
Directors are pleased to present the 47th Annual Report on the affairs of
your Company along |
|
| with
the Audited Accounts for the financial year ended September 30,2004. |
|
|
| PERFORMANCE |
|
|
| The
performance of the Company was satisfactory for the year under report. The
Mills produced |
|
| Polyester-Cotton
blended yarn throughout the year. The total sales for the year amounted to
Rs. 749,380,271 |
|
| (6,437,219
Kgs) ascompared to Rs. 618,842,889 (6,397,393 Kgs) last year. The increase in
the sales |
|
| amount
is due to comparative increase in quantity. The gross profit increased from
Rs. 20,082,846 last year |
|
| to
Rs. 41,126,465 for the year under report. Resultantly, the Net After Tax
Profit for the year also stood |
|
| increased
to Rs. 17,807,262 as compared to the Net After Tax Profit of Rs. 2,603,536
last year. The |
|
| financial
results are summarized under the head of Accounts below: |
|
|
| ACCOUNTS |
|
|
|
|
2004 |
2005 |
|
|
|
Rupees |
Rupees |
|
| Sales (Net) |
|
749,380,271 |
618,842,889 |
|
| Cost of Sales |
|
-708,253,806 |
-598,760,043 |
|
| Gross Profit |
|
41,126,465 |
20,082,846 |
|
| Administrative
Expenses |
|
(12,139;628) |
-11,808,056 |
|
| Operating Profit |
|
28,986,837 |
8,274,790 |
|
| Financial charges |
|
-3,540,597 |
-4,993,183 |
|
|
25,446,240 |
3,281,607 |
|
| Other Charges |
|
-295,851 |
-47,425 |
|
|
25,150,389 |
3,234,182 |
|
| Other Income |
|
1,605,714 |
1,336,277 |
|
| Profit
before Taxation |
|
26,756,103 |
4,570,459 |
|
| Taxation |
|
-8,948,841 |
-1,966,923 |
|
| Profit
after Taxation |
|
17,807,262 |
2,603,536 |
|
| Unappropriated^rofit
- Brought forward |
|
77,106,994 |
75,503,458 |
|
| Profit
available for Appropriation |
|
94,914,256 |
78,106,994 |
|
| APPROPRIATION: |
|
|
|
| Transfer
to General Reserve |
|
80,000,000 |
' |
|
| Proposed
Dividend |
|
|
|
| (2003:
Rs. 1.25 per share) |
|
- |
1,000,000 |
|
| Unappropriated
profit - Carried to Balance Sheet |
|
14,914,256 |
77,106,994 |
|
| Basic
Earnings per share |
|
22.26 |
3.25 |
|
|
| DIVIDEND |
|
| Your
Directors propose distribution of final dividend @ 12.50%(Rs. 1.25 per share)
to the shareholders |
|
| of
the Company out of the profit earned for the year ending 30.09.2004. |
|
|
| ISO
9001:2000 QMS AND ISO 14001:1996 EMS CERTIFICATION |
|
| Your
Directors are pleased to report that your Company has successfully achieved
the ISO 9001:2000 |
|
| Certification
of Quality Management System and the ISO 14001:1996 Certification for
Environmental |
|
| Management
System from M/s S.G.S Pakistan (Pvt) Limited (Accerditiation Certification
Body) during the year |
|
| under
report. This certification has enhanced the image> goodwill and added to
the prestige of your Company. |
|
| With
this certification the Company is geared up to meet the challenges of WTO
Regime. |
|
|
| COMPLIANCE
WITH CODE OF CORPORATE GOVERNANCE |
|
| Your
Directors are pleased to report that the Company is complying with the
requirements of the Code |
|
| of
Corporate Governance as introduced by the Securities and Exchange Commission
of Pakistan. The various |
|
| statements,
as required by the code, are given below: |
|
|
| PRESENTATION
OF FINANCIAL STATEMENTS: |
|
| The
financial statements, prepared by the Company, fairly present its state of
affairs, the results of |
|
| operations,
cash flows, and changes in equity; |
|
|
| BOOKS
OF ACCOUNTS: |
|
| The
Company has maintained proper books of accounts; |
|
|
| ACCQUNTING
POLICIES: |
|
| Appropriate
accounting policies have been consistently applied in preparation of
financial statements |
|
| and
accounting estimates are based on reasonable and prudent judgement; |
|
|
| COMPLIANCE
WITH INTERNATIONAL ACCOUNTING STANDARDS (IAS); |
|
| International
Accounting Standards, as applicable in Pakistan, have been followed in
preparation of |
|
| financial
statements; |
|
|
| INTERNAL
CONTROL SYSTEM: |
|
| The
system of internal control is sound in design and has been effectively
implemented and monitored; |
|
|
| ON
GOING CONCERN: |
|
| The
Company's financial position is sound enough to ensure its continuity as an
on going concern; |
|
|
| NO
OUTSTAND/NG STATUTORY DUES: |
|
| There
are no outstanding statutory dues on account of Taxes, Levies and charges
except of normal and |
|
| routine nature. |
|
|
| FINANCIAL
HIGHLIGHTS: |
|
| Key
operating and financial data of last six years is annexed. |
|
|
| BOARD
MEETINGS |
|
|
| During
the year three (3) meetings of the Board of Directors were held. Attendance
by each Director |
|
| is given below: |
|
|
| Director Name |
|
Meeting Attended |
|
| Mian
Muhammad Jamil |
|
3 |
|
| Mian
Maqbool Ahmad Sheikh |
|
3 |
|
| Mrs. Nusrat Jamil |
|
2 |
|
| Mian
Tanvir Ahmad Sheikh |
|
3 |
|
| Mian
Sarfraz Ahmad Sheikh |
|
2 |
|
| Mian
Tauqir" Ahmad Sheikh |
|
2 |
|
| Mian
Muhammad Bilal Ahmad Sheikh |
3 |
|
| Mian
Muhammad Alamgir Jamil Khan |
3 |
|
|
| AUDITORS |
|
| Your
Company's Auditors M/s M. Yousuf Adil Saleem sc Co., Chartered Accountants,
Multan Retired |
|
| and
being eligible offer themselves for re-appointment for the next year. |
|
|
| PATTERN
OF SHAREHOLDING |
|
| Pattern
of holding of the shares by the Shareholders of the Company as on 30.09.2004
as required |
|
| under
section 236(2){d) of the Companies Ordinance, 1984 is enclosed. |
|
|
| RELATIONS
WITH LABOUR AND STAFF |
|
| Your
Directors are happy to report that relations with labour and staff of the
Company remained |
|
| cordial
throughout the year. |
|
|
| ACKNOWLEDGEMENT |
|
| Your
Directors acknowledge the best cooperation as usual enjoyed by your Company
from M/s Habib |
|
| Bank
Limited, M/s Bank AI-Habib Limited and M/s Metropolitan Bank Limited and wish
to record their sincere |
|
| appreciation
for the same and hope they will continue their support to us in future. The
dedicated hard work of |
|
| all
employees of the Company is also acknowledged. |
|
|
| STATEMENT
OF ETHICS AND BUSINESS PRACTICES |
|
| Introduction: |
|
| Allawasaya
Textile at Finishing Mills Ltd., Is committed to all round excellence in the
sphere of |
|
| business
activity. As in the past, we strive to maintain sound ethical, business, and
legal standards. Allawasaya |
|
| Textile
affirm to observe all prevailing and applicable laws fit regulations of the
country. |
|
|
| Code
of Conduct: |
|
| Allawasaya
Textile 81 Finishing Mills Ltd., steadfastly adheres to implementing
transparent, ethical |
|
| and
professional lines of conduct in all business interface with our stakeholders
which include government |
|
| departments,
textile manufacturing associations, stockists and traders, and so forth. |
|
|
| Employees: |
|
| Allawasaya
Textile 61 Finishing Mills Ltd., has a historical track record of outstanding
employees |
|
| management
relations. In the past over thirty years, there has never been any incident
of Employees-Management |
|
| tension.
The Company is committed to provide a safe, secure, and congenial working
environment to alJ its. |
|
| employees,
regardless of rank, caste or creed, thereby maximizing the employees' output
and the Company's |
|
| prosperity. |
|
|
| Community: |
|
| Allawasaya
Textile ai Finishing Mills Ltd.> observes and pursues good community
relations. The |
|
| Company
provides Staff Residence within the Mills premises. |
|
|
| Quality
Assurance: |
|
| Allawasaya
Textile 61 Finishing Mills Ltd., produces good quality "Gumbad"
brand (Yarn, 16 Count to |
|
| 31
Count) which conforms to the high standards and quality. Our product is
backed up with forty years of yarn |
|
| manufacturing
experience and continuous process of BMR. |
|
|
| Financial
Reporting: |
|
| Our
accounting practices and finance policies are guided by prevailing corporate
regulations, |
|
| Companies
Ordinance, 1984 and the Code of Corporate Governance. Further, we aim to
fully comply with |
|
| International
Accounting Standards (IAS) in the preparation of financial statements.
Departure if any from the |
|
| standards
is adequately disclosed. |
|
|
| Conclusion: |
|
| Allawasaya
Textile & Finishing Mills Ltd., shall ensure that this statement of
ethics and business |
|
| practices
is understood and implemented by all concerned in letter and spirit. ' |
|
|
| SIX
YEARS KEY OPERATING AND FINANCIAL DATA |
|
|
| Year Ended |
|
2004 |
2005 |
2002 |
2001 |
2000 |
1999 |
| Sept. JO |
|
|
| BALANCE
SHEET |
|
| Authorized
Capital |
10,000,000 |
10,000,000 |
10,000f,000 |
10,000,000 |
10,000,000 |
10,000,000 |
| Issued,
Subscribed |
|
| & Paid up Capital |
|
8,000^00 |
8,000,000 |
8,000,000 |
8,000,000 |
8,000,000 |
8,000,000 |
| Capital Reserve |
|
2,668,746 |
2,668,746 |
2,668,746 |
2,668,746 |
2,668,746 |
2,668,746 |
| General Reserve |
|
80,000,000 |
- |
- |
- |
- |
|
| Unappropriated
Profi |
t 14,914,256 |
77,106,994 |
75,503,458 |
66,971,795 |
42,227,174 |
7,691,528 |
| Total Equity |
|
105,583,002 |
87,775,740 |
86,172,204 |
77,640,541 |
52,895,920 |
18,360,274 |
| Long
Term Liabilities |
— |
477,910 |
5,909,856 |
. |
' |
. |
| Deferred
Liabilities |
17,087,138 |
19,228,616 |
12,717,514 |
6,106,104 |
5,167,163 |
5,189,885 |
| 'Short
Term Liabilities |
85,865,488 |
77,490,375 |
108,226,930 |
104,375,273 |
100,403,042 |
92/485,576 |
| Total Liabilities |
|
102,952,626 |
97,196,901 |
126,854,300 |
110,481,377 |
105,570,205 |
97,675,461 |
| Total Equity N |
|
|
| Liabilities |
|
208,535,628 |
1^4,972,641 |
213,026,504 |
188,121,918 |
158,466,125 |
116,035,735 |
| Fixed Assets |
|
85,812,197 |
94,949,828 |
100,407,106 |
98,822,987 |
78,561,713 |
75,199,907 |
| Long
Term Deposits |
3,558,616 |
1,819,312 |
1,752,512 |
1,718,012 |
1,708,012 |
1,708,012 |
| Current Assets |
|
119,164,815 |
88,203,501 |
110,866,886 |
87,580,919 |
78,196,400 |
39,127,816 |
| Total Assets |
|
208,535,628 |
184,972,641 |
213,026,504 |
188,121,918 |
158,466,125 |
116,035,735 |
| PROFIT
S LOSS ACCOUNT |
|
| Turnover (Net) |
|
749,380,271 |
618,842,889 |
539,729,381 |
589,.40 1,526 |
562,815,513 |
506,859,693 |
| Gross Profit |
|
41,126,465 |
20,082,846 |
46,706,208 |
54,439,793 |
107,056,539 |
46,195,884 |
| Operating Profit |
|
28,986,837 |
8,274,790 |
34,972,304 |
43,753,590 |
97,964,058 |
37,638,397 |
| Profit/(Loss)
before |
|
| Taxation |
|
26,756,103 |
4,570,459 |
29,189,502 |
39,254,621 |
84,934,973 |
17,866,281 |
| Profit/(Loss) after |
|
|
| Taxation |
|
17,807,262 |
2,603,536 |
12,731,663 |
28,944,621 |
57,735,646 |
15,331,281 |
| DISTRIBUTION |
|
|
| Cash Dividend % |
|
12.5 |
12.5 |
. 52.50 |
52.5 |
290,00 |
77.5 |
| RATIOS |
|
|
| Break up value |
|
|
| per share(Rs.) |
|
131.98 |
109.72 |
107.72 |
97.05 |
66.12 |
22.95 |
| Eaming/(Loss)
per |
|
| share (Rs) |
|
22.26 |
3.25 |
15.91 |
36.18 |
72.17 |
19.16 |
| Current Ratio |
|
42:58 |
47:53 |
51:49 |
46:54 |
44:56 |
30:70 |
| Debt/equity ratio |
|
0.45:99.55 |
06:94 |
11:89 |
00:100 |
00:100 |
00:100 |
| CAPACITY
S PRODUCTION |
|
| No. of Spindles Installed |
28,192 |
28,192 |
28,192 |
28,192 |
28,192 |
28,192 |
| Capacity
of Yarn at |
|
| 20's Count (Kgs) |
|
11,667,215 |
11,842,827 |
11,919,657 |
11,919,657 |
11,974,536 |
7,945,906 |
| Actual
Production of |
|
| Yamat201sCount(Kgs) |
10,656,712 |
10,718,915 |
10,165,183 |
10,731,414 |
11,130,250 |
10,229,596 |
|
| REVIEW
REPORT TO THE MEMBERS ON STATEMENT OF COMPLIANCE |
|
| WITH
BEST PRACTICES OF CODE OF CORPORATE GOVERNANCE |
|
| We
have reviewed the Statement of Compliance with the best practices containted
in the Code of Corporate |
|
| Governance
prepared by the Board of Directors of ALLAWASAYA TEXTILE s FINISHING MILLS
LIMITED |
|
| to
comply with the Listing Regulation No. 37 (Chapter XI) of the Karachi Stock
Exchange (Guarantee) Limited, |
|
| Clause
40 (Chapter XIII) of the Listing Regulations of the Lahore Stock Exchange
(Guarantee) Limited and |
|
| Section
36 (Chapter XI) of the Listing Regulations of the Islamabad Stock Exchange
(Guarantee) Limited where |
|
| the
Company is listed. |
|
|
| The
responsibility for compliance with the Code of Corporate Governance Is that
of the Board of Directors |
|
| of
the Company. Our responsibility is to review, to the extent where such
compliance can be objectively |
|
| verified,
whether the Statement of Compliance reflects the status of the Company's
compliance with the |
|
| provisions
of the Code of Corporate Governance and report if it does not. A review is
limited primarily to |
|
| inquiries
of the Company personnel and review of various documents prepared by the
Company to comply |
|
| with the Code. |
|
|
| As
part of our audit of financial statements we are required to obtain an
understanding of the accounting and |
|
| internal
control systems sufficient to plan the audit and develop an effective audit
approach. We have not |
|
| carried
out any special review of the internal control system to enable us to express
a'n opinion as to whether |
|
| the
Board's statement on internal control covers all controls and the
effectiveness of such internal controls. |
|
|
| Based
on our review, nothing has come to our attention which causes us to believe
that the Statement of |
|
| Compliance
does not appropriately reflect the Company's compliance, in all material
respects, with the best |
|
| practices
contained in the Code of Corporate Governance. |
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
| We
have audited the annexed balance sheet of ALLAWASAYA TEXTILE sc FINISHING
MILLS |
|
| LIMITED
as at September 30, 2004 and the related profit and loss account, cash flow
statement and |
|
| statement
of changes in equity together with the nfttes 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. |
|
|
| The
financial statements of the Company as of September 30,2003 were audited by
another auditors whose |
|
| report
dated December 29,2003 expressed an unqualified opinion on those statements. |
|
|
| 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 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 standards |
|
| require
that we plan and perform the audit to obtain reasonable assurance about
whether the above said |
|
| statements
are free of any material misstatement. An audit includes examining, on a test
basis, evidence |
|
| supporting
the amounts and disclosures in the above said statements. An audit also
includes assessing the |
|
| accounting
policies and significant estimates made by management, as well as, evaluating
the overall |
|
| presentation
of the above said statements. We believe that our audit provides a reasonable
basis for our opinion |
|
| and,
after due verification, we report that: |
|
|
| (a) in our opinion, proper books of
account have been kept by the 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
andstatementof changes |
|
| in
equity together with the notes forming part thereof confirm with approved
accounting |
|
| standards
as applicable in Pakistan, and give the information required by the Companies |
|
| Ordinance,
1 984, in the manner so required and respectively give a true and fair view |
|
| of
the state'of the Company's affairs as at September 30, 2004and of the profit,
changes |
|
| in
equity and its cash flows for the year then ended; and |
|
|
| (d) in our opinion, Zakat deductible at
source under the Zakat and Ushr Ordinance, 1980 |
|
| (XVIII
of 1980), was deducted by the Company and deposited in the Central Zakat Fund
established |
|
| under
Section 7 of that Ordinance. |
|
|
| BALANCE
SHEET AS AT |
|
|
|
|
Note |
2004 |
2003 |
|
|
|
|
Rupees |
Rupees |
|
| SHARE
CAPITAL AND RESERVES |
|
|
|
| Authorised capital |
|
|
|
| 1
,000,000 ordinary shares |
|
|
|
| of Rs. 10 each |
|
|
10,000,000 |
10,000,000 |
|
| Issued,
subscribed and |
|
|
|
| paid up capital |
|
3 |
8,000,000 |
8,000,000 |
|
| Capital reserve |
|
4 |
2,668,746 |
2,668,746 |
|
| General reserve |
|
|
80,000,000 |
- |
|
| Unappropriated
profit |
|
|
14,914,256 |
77,106,994 |
|
|
|
105,583,002 |
87,775,740 |
|
| LIABILITY
AGAINST ASSETS SUBJECT |
|
|
| TO
FINANCE LEASE |
|
5 |
- |
477,910 |
|
| DEFERRED INCOME |
|
6 |
35,764 |
464,932 |
|
| DEFERRED
LIABILITIES |
|
7 |
17,051,374 |
18,763,684 |
|
| CURRENT
LIABILITIES |
|
|
|
| Current
portion of liability against |
|
|
|
| assets
subject to finance lease |
|
5 |
477,910 |
5,376,249 |
|
| Short term
finances |
8 |
60,761,309 |
35,589,891 |
|
| Trade
and other payables |
|
9 |
22,724,009 |
33,858,471 |
|
| Provision
for taxation |
|
10 |
1,646,239 |
1,415,900 |
|
| Dividend |
|
27 |
256,021 |
1,249,864 |
|
|
|
85,865,488 |
77,490,375 |
|
| CONTINGENCIES
AND COMMITMENTS |
11 |
- |
- |
|
|
|
|
208,535,628 |
184,972,641 |
|
|
| SEPTEMBER
30,2004 |
|
|
|
|
Note |
2004 |
2003 |
|
|
|
|
Rupees |
Rupees |
|
| FIXED
CAPITAL EXPENDITURE |
|
|
|
| Property,
plant and equipment |
|
12 |
85,553,748 |
94,717,828 |
|
| Capital work in progress |
|
13 |
258,449 |
232,000 |
|
|
|
85,812,197 |
94,949,828 |
|
| LONG
TERM INVESTMENTS |
|
14 |
1,739,304 |
' - |
|
| SECURITY
DEPOSITS |
|
|
1,819,312 |
1,819,312 |
|
| CURRENT
ASSETS |
|
|
|
| Stores,
spares and loose tools |
|
15 |
4,590,527 |
6,953,063 |
|
| Stock in trade |
|
16 |
71,191,000 |
47,056,000 |
|
| Trade debts |
|
17 |
29,168,882 |
23,578,993 |
|
| Advances,
deposits, prepayments |
|
|
|
| and
other receivables |
|
18 |
3,271,538 |
4,738,623 |
|
| Current
portion of long term investments |
14 |
696 |
- |
|
| Cash
and bank balances |
|
19 |
10,942,172 |
5,876,822 |
|
|
|
|
119,164,815 |
88,203,501 |
|
|
|
|
208,535,628 |
184,972,641 |
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 2004 |
|
|
|
Note |
2004 |
2003 |
|
|
|
Rupees |
Rupees |
|
| SALES - Net |
|
20 |
749,380,271 |
618,842,889 |
|
| Cost of safes |
|
21 |
708,253,806 |
598,760,043 |
|
| Gross profit |
|
|
41,126,465 |
20,082,846 |
|
| Administrative
expenses |
|
22 |
12,139,628 |
11,808,056 |
|
| Operating profit |
|
|
28,986,837 |
8,274,790 |
|
| Financial charges |
|
23 |
3,540,597 |
4,993,183 |
|
|
|
25,446,240 |
3,281,607 |
|
| Other charges |
|
24 |
295,851 |
47,425 |
|
|
|
|
|
|
25,150,389 |
3,234,182 |
|
| Other |
