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Allied Motors Limited
Annual Report 1999
CONTENTS
Company Information
Notice of Meeting
Director's Report
Auditor's Report
Balance Sheet
Profit & Loss Account
Statement of Changes in Financial Position
Notes to the Accounts
COMPANY INFORMATION
BOARD OF DIRECTORS
K. Asif Rahman	Chairman & Chief Executive
Anver Majid
Samir Ahmed
(Nominee of NIT)
Farouk Majid
P. K. Shahani
Fazlur Rahman
Kamal Mahmood
COMPANY SECRETARY
Asif Mahmood
AUDITORS
Nasir Jawaid & Co.
Chartered Accountants
27-B Writers Chamber
Mumtaz Hassan Road,
Karachi.
REGISTERED OFFICE
D-1 68, Sindh Industrial Trading Estate
Haroonabad
Karachi-75700
FACTORY
Plot Nos. AI-A50 Hub Industrial Trading Estate
Hub, District Lasbela (Balochistan)
REGISTRARS
Gangjees Investment & Finance Consultants
513, Clifton Centre, Khayabvan-e-Roomi, Block-5,
Clifton, Karachi-756000
NOTICE OF MEETING
NOTICE is hereby given that the seventeenth Annual General Meeting of the Shareholders of Allied
Motors Limited will be held on Tuesday, December 21, 1999 at 12:00 Noon at the Registered office of
the Company, situated at D-168, S.I.T.E., Haroonabad, Karachi to transact the following business.
1. To confirm the Minutes of the sixteenth Annual General Meeting held on Decmber 28, 1998.
2. To receive, consider and adopt the Audited Accounts of the Company for the year ended June
30, 1999. Together with the Director's and Auditor's Report thereon.
3. To appoint Auditors of the Company for the year 1999-2000 and to fix their remuneration. The
present Auditors Nasir Jawaid & Company Chartered Accountants retire and, being eligible, offer
themselves for reappointment.
4.    To transact any other ordinary business of the Company with the permission of the Chair.
			By ORDER OF THE BOARD
			Asif Mahmood
Dated: Karachi November 28, 1999			Company Secretary
NOTES:
1. The Share Transfer Book of the Company will remain closed from December 8, 1999 through
December 21, 1999 (both days inclusive)
2. A member eligible to attend and vote at the Meeting may appoint another Member as his-her
proxy to attend and vote instead of him/her. Proxies in order to be effective must be received by
the Company at its Registered Office not later than 48 hour before the time of holding the
Meeting.
3. Shareholders are requested to immediately notify change of address, if any, to our Registrar,
Gangjees Investment & Finance Consultants 513, Clifton Centre, Khayaban-e-Roomi, Block-5,
Clifton, Karachi-75600.
DIRECTORS' REPORT
Your Directors welcome you to the seventeen Annual General Meeting and place before you the Annual
Report together with the Audited Accounts of the Company for the year ended June 30, 1999
FINANCIAL RESULTS
The Financial results are summarized as under:
			'(Rs. 000)
			1999	1998
Net Sales			14,326	4,857
Gross Profit / (Loss)			(1,043)	(2,616)
Operating Profit/ (Loss)			(5,061)	(9,260)
Profit / (Loss) Before Tax			(2,851)	(8,861)
Profit / (Loss) After Tax			(2,929)	(12,921)
Unappropriated Profit / (Loss)			(149,880)	(162,801 )
Accumulated Profit / (Loss)			(152,809)	(149,880)
During the year under review, the Company sold 96 units of small horse power Tractors from the left
over inventory, under the brand name of "Allied -- 35". The total tractor industry sales was approxi-
mately 26,000 units including 96 units of small horse power tractors which were sold by your Company.
Between the last Directors' Report and during the financial year under review, there has been no mate-
rial changes and commitments affecting the financial position of the Company.
There have been no changes that have occurred during the financial year concerning the nature of
business of the Company.
AUDITORS, OBSERVATIONS
Auditors observation in para 2 of the Auditors' report to the Members, it is stated that:
The management is concerned about the future of your company and it is actively engaged in its
reactivation. The Company's property is free from all encumbrances. Further, the management consid-
ers that' at present the assets and liabilities do not require any adjustment or reclassification since
efforts are being made to reactivate the operation.
Auditors' comments in paragraph 3 of their Report to the Members. It is stated that your Directors
consider the tangible fixed assets, loose tools, stock-in-trade as good and realisable. The investment of
Rs. 5 million in Polymer & Precision Engineers (Pvt) Limited, which have now started yielding returns
and should in the opinion of your directors start yielding tangible returns.
FUTURE OUT LOOK
As you are well aware the country's overall economic scenario remain grim as such there has been no
significant progress in our various options, and contacts with world wide Tractor manufactures. How-
ever, the management is quite hopeful for the company's turn around due to some positive response
from couple of Tractors manufacturers of European origin.
In view of the recent changes committed to business friendly environment in the country, your management
looks forward to improved economic condition enabling your company to take advantage of these to your entire
satisfaction.
YEAR 2000 COMPLIANCE OF COMPUTER SYSTEM
As the millennium approaches, we know there is a mandatory Y2K problems which affects most computer
operating systems including microchips and software programs that records the year using only the last two
digits.
Like other we will also get affected by Y2K problem. However, our software are not developed in the earlier
generation language like assembly or Cobol. We do not face any problems of the same quantum. We are in PC
environment under Novel NetWare 3.12 using FoxPro 2.6. This software allows the use of a command such as
"Set century on" which would to a great extent take care of the problem. Allied Motors Limited, is fully committed
to beating the millennium bug.
PATTERN OF SHAREHOLDING
the pattern of shareholding is attached.
The management would like to place on record its appreciation of the work of senior management executives and
other members of the staff without whose unstinted support it would not have been possible to continue the
Company's operations.
			FOR AND ON BEHALF OF THE BOARD
			K. ASIF RAHMAN
Dated: Karachi, November 4, 1999			Chairman
PATTERN OF SHAREHOLDING
Pattern of Holding of Shares held by the
Shareholders as at June 30, 1999
NO. OF	SHARE HOLDING		TOTAL SHARES
SHAREHOLDERS	FROM	TO	HELD
746	1	100	72,007
507	101	500	116,374
78	501	1000	69,610
136	1001	5000	329,019
15	5001	10000	101,930
9	10001	15000	107,998
4	15001	20000	69,064
2	20001	25000	45,999
2	25001	30000	55 066
1	30001	35000	32 600
2	40001	45000	85 899
1	60001	65000	60.83
1	70001	75000	70.83
1	100001	105000	103. 200
1	210001	215000	211 028
1	260001	265000	263 900
1	690001	695000	691 094
1	880001	885000	882,400
1	1105001	1110000	1,108,906
1	1825001	1830000	1,828,500
1	2690001	2695000	2,693,740
-------------------	-------------------	-------------------	-------------------
1,51 2			9,000,000
===========	===========	===========	===========
CATEGORIES OF SHAREHOLDERS AS AT JUNE 30, 1999
CATEGORIES OF SHAREHOLDERS		NUMBER	SHARES HELD	PERCENTAGE
Joint Stock Companies		4	4,493,906	4,993
C D C		1	211,028	235
Financial Institutions		3	2,781,733	3,091
Holding Companies		0	0	0
Modaraba Companies		0	0	0
Insurance Companies		3	1 64,199	182
Investment Companies		1	263,900	293
Individuals		1500	1,085,234	1,206
Associated Companies		0	0	0
Foreign Investors		0	0	0
Others		0	0	0
		-------------------	-------------------	-------------------
		1512	9,000,000	10,000
		===========	===========	===========
REVISED PATTERN OF SHAREHOLDING
Pattern of Holding of Shares held by the
Shareholders as at June 30, 1999
NO. OF	SHARE HOLDING		TOTAL SHARES
SHAREHOLDERS	FROM	TO	HELD
746	1	100	72,007
522	101	500	123,637
99	501	1000	90, 110
161	1001	5000	399,485
20	5001	10000	136, 130
9	10001	15000	107,998
6	15001	20000	104, 164
2	20001	25000	45,999
2	25001	30000	55,066
1	30001	35000	32,600
2	40001	45000	85,899
1	60001	65000	60,833
1	70001	75000	70,833
1	100001	105000	103,200
1	305001	310000	307,399
1	690001	695000	691,094
1	880001	885000	882,400
1	1105001	1110000	1,108,906
1	1825001	1830000	1,828,500
1	2690001	2695000	2,693,740
-------------------	-------------------	-------------------	-------------------
1,579			9,000,000
===========	===========	===========	===========
CATEGORIES OF SHAREHOLDERS AS AT JUNE 30, 1999
CATEGORIES OF SHAREHOLDERS		NUMBER	SHARES HELD	PERCENTAGE
Joint Stock Companies		4	4,493,906	49.93
Financial Institutions		3	2,781,733	30.91
Holding Companies		0	0	0.00
Modaraba Companies		0	0	0.00
Insurance Companies		3	164,199	1.82
Investment Companies		5	329,299	3.66
Individuals		1564	1,230,863	13.68
Associated Companies		0	0	0.00
Foreign Investors		0	0	0.00
Others		0	0	0.00
		-------------------	-------------------	-------------------
		1579	9,000,000	10,000
		===========	===========	===========
AUDITOR'S REPORT TO THE MEMBERS
1. We have audited the annexed balance sheet of Allied Motors Limited as at June 30, 1999 and the
related profit and loss account and statement of changes in financial position (cash flow state-
ment), together with the notes forming part thereof, for the year then ended.
2. The closure of the factory and the "Ford" group of companies withdraw from and termination of
its franchise agreement alongwith operating loss of Rs. 5.061 million and a carried forward net
loss of Rs. 152.809 million as at June 30, 1999 raise substantial doubt that the company will be
able to continue as a going concern and may be unable to realise its assets and discharge its
liabilities in the normal course of business. Consequently adjustment may be required to the
recorded asset amounts or to the amounts and classification of liabilities. The financial state-
ments (and notes thereto) do not disclose this fact.
3. We have been unable to satisfy ourselves as to, the realisable value of tangible fixed assets, the
net realisable value of loose tools, stock-in-trade (see also note 14) and an amount of Rs. 5
million in respect of investment, against which no provisions have made.
4. 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 and, after due verification
thereof, 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 agree-
ment with the books of account and are further in accordance with accounting
policies consistently applies;
(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 wee in accordance with the objects of the company;
(c) in our opinion, except for the omission of the information referred to in 2 above and subject
to the matters stated in 3 above, to the best of our information and according to the
explanations given to us, the balance sheet, profit and loss account and the statement of
changes in financial position (cash flow statement), together with the notes forming part
thereof given the information required by the Companies Ordinance, 1984, in the manner so
. required and respectively give a true and fair view of the company's affairs as at June 30,
1999 and of the loss and the statements of changes in .financial position (cash flow state-
ment) for the year then ended; and
(d) in our opinion no Zakat was deductible at source under the Zakat and Ushr Ordinance, 1980
Karachi			Nasir Jawaid & Company
Dated:  November 4, 1999			Chartered Accountants
BALANCE    SHEET
As at June 30, 1 999
			Notes	1999	1998
				Rs.000	Rs.000
Capital & Liabilities
AUTHORISED SHARE CAPITAL
21,800,000 Ordinary Shares of Rs. 10/- each				218,000	218,000
				===========	===========
Issued, Subscribed & Paid-up Capital			3	90,000	90,000
Reserves
Capital			4	86,194	86,194
Revenue			5	(142,909)	(139,980)
				-------------------	-------------------
				(56,715)	(53,786)
				-------------------	-------------------
				33,285	36,214
CURRENT LIABILITIES
Short Term finance			6	--	8,228
Due to Associated Companies			7	23,045	19,156
Creditors, accrued Expenses & Other Liabilities			8	5,081	5,995
				-------------------	-------------------
				28,126	33,379
CONTINGENCIES			9	--	--
				-------------------	-------------------
				61,411	69,593
				===========	===========
Property & Assets
FIXED ASSETS ~ TANGIBLE
Operating Fixed Assets - Net			10	29,614	31939
Other			11	9,482	9,482
				-------------------	-------------------
				39,096	41,421
LONG TERM INVESTMENTS			12	5,000	5,000
CURRENT ASSETS
Loose tools			13	393	437
Stock - in - trade			14	12,576	22,045
Trade Receivable			15	620
Deposits, Prepayments & other receivables			16	932	592
Cash & Bank Balances			17	2,794	98
				-------------------	-------------------
				17,315	23,172
				-------------------	-------------------
				61,411	69,593
				===========	===========
The annexed notes form part of these accounts.
The auditors' report is annexed hereto.
K. ASlF RAHMAN		P.K. SHAHANI
Chief Executive		Director
PROFIT & LOSS ACCOUNT
For the year ended June 30, 1999
			Notes	1999	1998
				Rs.000	Rs.000
Sales			18	14,326	4,857
Cost of Sales			19	15,369	7,473
				-------------------	-------------------
Gross Profit				(1,043)	(2,616)
Selling, Distribution, Administration
and General expenses			20	(2,665)	(3,493)
Financial charges			21	(1,353)	(3,1 51)
				-------------------	-------------------
				(4,018)	(6,644)
Operating Loss				(5,061)	(9,260)
Other Income			22	1,860	417
				-------------------	-------------------
Loss for the year before taxation				(3,201)	(8,843)
Prior period items			23	350	(18)
				-------------------	-------------------
				(2,851)	(8,861)
Taxation			24	78	21,782
				-------------------	-------------------
Profit/(Loss) after Taxation				(2,929)	12,921
Loss Brought Forward				(149,880)	(1 62,801)
				-------------------	-------------------
				(1 52,809)	(149,880)
				===========	===========
K. ASIF RAHIVlAN		P.K. SHAHANI
Chief Executive		Director
STATEMENT OF CHANGES IN FINANCIAL POSITION
(Cash Flow Statements)
For the year ended June 30, 1999
				1999	1998
				Rs.000	Rs.000
CASH FLOWS FROM OPERATING ACTIVITIES
Funds provided from operations
Profit/(loss) after taxation				(2,929)	12,921
Adjustment for items not involving movement of funds:
Depreciation				1,948	2,224
Gain on sale of fixed assets				(1,693)	(251)
				-------------------	-------------------
				255	1,973
				-------------------	-------------------
				(2,674)	14,894
Working capital changes
(increase) / decrease in current assets
Loose tools				44	48
Stock-in-trade				9,469	2,937
Advances				(620)	12
Due from associated companies				--	258
Deposits and prepayments				(340)	(361)
Other receivables				--	33
				-------------------	-------------------
Increase / (decrease) in current liabilities				8,553	2,927
Short term finance				(8,228)	494
Due to associated companies				3,889	1,783
Creditors, Accrued expenses and other liabilities				(914)	(20,233)
				-------------------	-------------------
				(5,253)	(17,956)
				-------------------	-------------------
				626	(135)
CASH FLOWS INVESTING ACTIVITIES
Capital expenditure				(23)	(150)
Sale proceeds of fixed assets				2,093	260
				-------------------