| Amin Fabrics Limited |
|
|
|
|
|
|
|
|
| Annual
Report 1999 |
|
|
|
| Registered
Office: |
|
|
| Ocean Centre |
|
| 40, Talpur Road, |
|
| Karachi. |
|
| Phones:
2413271,2414087, 2414778-9 |
|
| Cable:
"AMINFAB" |
|
| Telex:
20466 AMIN PK |
|
| Fax:
(92-21) 2411686 |
|
| E-mail:
aminfb@paknet3.ptc.pk |
|
|
| Factory: |
|
|
|
| Jute Division |
|
| Aminabad |
|
| Kotri |
|
| Phones:
870141-870142 |
|
| Telex:
22287 AMIN PK |
|
| Fax: 870594 |
|
|
|
|
| Synthetics
Division |
|
| G-14, S.I.T.E., |
|
| Kotri |
|
| Phones
: 870575 - 870576 |
|
|
|
| BOARD
OF DIRECTORS |
|
|
| Mir
Allah Bachayo Khan Talpur |
|
Chairman |
|
| Mr.
Abdul Khaliq |
|
Managing Director / Chief
Executive |
|
| Mr. M. J. Nasar |
|
Director |
|
| Mr.
Rahim Bakhsh Soomro |
|
Director |
|
| Mr. Abdul Hafiz |
|
Director |
|
| Mr.
Stuart Fairweather |
|
Director } Rep:
Interfinco Ltd. |
|
| Mr.
Muhammad Akber Saeed |
|
Director } Nominee of ICP |
|
|
| COMPANY
SECRETARY |
|
| Mr.
Syed Zakir Ali ACA, ACMA |
|
|
| AUDITORS |
|
| Riaz
Ahmed, Saqib, Gohar & Company |
|
| Chartered
Accountants, |
|
| 5-Nasim
Cooperative Housing Society, |
|
| Major
Nazir Bhatti Road, |
|
| Off:
Shaheed-e-Millat Road, |
|
| Karachi. |
|
|
| SOLICITOR |
|
| ORR,
DIGNAM & CO. |
|
| 3rd Floor, |
|
| State
Life Building No. l-B, |
|
| I.
I. Chundrigar Road, |
|
| Karachi. |
|
|
| BANKERS |
|
| Habib
Bank Limited |
|
| Bank
Al-Habib Ltd. |
|
|
|
| NOTICE |
|
|
| NOTICE
is hereby given that the THIRTY SIXTH ANNUAL GENERAL MEETING of AMIN FABRICS |
|
| LIMITED
will be held on Tuesday the 28th December, 1999 at 10:30 A.M. at Raffia
Choudri Memorial |
|
| Centre,
Ground Floor, Sidco Avenue Centre, Din Mohammad Wafaai Road/Strachen Road,
Karachi |
|
| to
transact the following business. |
|
|
| 1.
To confirm the minutes of Extra Ordinary General Meeting held on 10th July,
1999. |
|
|
|
|
| 2.
To receive and adopt the Directors report and Audited accounts for the year
ended 30th |
|
| June, 1999. |
|
|
|
|
| 3.
To appoint Auditors for the current year and fix their remuneration. |
|
|
| 4.
Any other business with the permission of the chair. |
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|
|
|
|
|
|
|
By Order of the Board |
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|
|
|
For AMIN FABRICS LIMITED |
|
|
|
|
SYED ZAKIR ALI |
|
| KARACHI:
24.11.1999 |
|
Company Secretary |
|
|
| NOTES: |
|
|
| 1.
The Share Transfer Books of the Company will remain closed from 24th
December, 1999 |
|
| to
31st December, 1999 (both dates inclusive). |
|
|
|
| 2.
Shareholders are requested to notify change of address immediately, |
|
|
| 3.
Minors will not be admitted to the meeting. |
|
|
|
| DIRECTOR
REPORT TO SHAREHOLDERS |
|
|
| Gentlemen, |
|
|
| Your
Directors have great pleasure in submitting thirty Sixth Annual Report
alongwith Audited |
|
| Accounts
for the year ended 30th June, 1999. |
|
|
| 1.
FINANI31AL RESULTS: |
|
| The
financial results for the current year are as follows: |
|
|
|
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
|
|
| Gross Profit |
|
|
|
|
26,353,922 |
55,180,185 |
|
| Operating
Expenses |
|
|
|
(26,577,426) |
(29,382,897) |
|
|
|
|
|
|
------------------ |
------------------ |
|
| Operating
Profit/(Loss) |
|
|
|
(223,504) |
25,797,288 |
|
| Other Income |
|
|
|
|
802,413 |
729,930 |
|
| Profit on trading |
|
|
|
|
47,389 |
-- |
|
|
|
|
------------------ |
------------------ |
|
| Profit/(Loss)
for the year |
|
|
626,298 |
26,527,218 |
|
| Provision
for taxation |
|
|
(1,116,143) |
(5,326,000) |
|
|
|
|
------------------ |
------------------ |
|
| Profit/(Loss)
for the year after taxation |
|
|
(489,845) |
21,201,218 |
|
| Unusual items |
|
|
-- |
92,252,791 |
|
| Accumulated
Loss brought forward |
|
|
(82,798,251) |
(196,252,260) |
|
|
|
|
------------------ |
------------------ |
|
| Accumulated
Loss carried forward |
|
|
(83,288,096) |
(82,798,251) |
|
|
|
|
========== |
========== |
|
|
| 2.
Statement of Pattern of holding of the Shares is being enclosed. |
|
|
|
|
|
| 3.
You will be pleased to know that your company has satisfactorily achieved the
year 2000 |
|
| compliance
in respect of operating system. |
|
|
|
|
| 4. AUDITORS |
|
|
| The
Auditors M/s. Riaz Ahmad, Saqib, Gohar & Co., Chartered Accountants
retire and offer |
|
| themselves
for re-appointment. |
|
|
|
|
For and on behalf of the Board |
|
|
|
ABDUL KHALIQ |
|
| Karachi:
24th November, 1999 |
|
Chief Executive |
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of Amin Fabrics Limited as at 30th
June, 1999 and the |
|
| related
profit and loss account and the statement of changes in financial position
(cash flow |
|
| statement),
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 and, after due verification thereof,
we state 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 & loss account and the statement of changes
in financial |
|
| position
(cash flow statement), together with the notes forming part thereof, give the |
|
| information
required by the Companies Ordinance, 1984 in the manner so required and |
|
| respectively
give a true and fair view to the state of the Company's affairs as at 30
June, |
|
| 1999
and of the profit and the changes in financial position (cash flow statement)
for the |
|
| year
then ended; and |
|
|
| d)
In our opinion, no Zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
|
|
|
|
|
RIAZ AHMED, SAQIB, GOHAR & CO. |
|
| Karachi:
24th November, 1999 |
|
Chartered Accounts |
|
|
|
|
| BALANCE
SHEET AS AT 30TH JUNE, 1999 |
|
|
|
Note |
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
|
|
|
| CAPITAL
AND LIABILITIES |
|
|
|
|
|
|
| Capital
and reserves |
|
|
|
|
|
|
| Authorised
capital 20,000,000 |
|
|
|
| (1998:
5,000,000) Ordinary |
|
|
|
| shares
of Rs. 10 each |
|
2 |
200,000,000 |
50,000,000 |
|
|
|
|
========== |
========== |
|
| Issued,
subscribed & paid-up capital |
|
3 |
28,492,350 |
28,492,350 |
|
| Reserves |
|
4 |
26,741,847 |
26,741,847 |
|
| Accumulated
loss |
|
|
(83,288,096) |
(82,798,251) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(28,053,899) |
(27,564,054) |
|
| LONG
TERM & DEFERRED LIABILITIES |
|
5 |
29,488,425 |
41,894,945 |
|
| LONG
TERM DEPOSITS |
|
6 |
1,600,000 |
1,600,000 |
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
| Current
portion of long term liabilities |
|
|
12,500,000 |
18,750,000 |
|
| Short
term borrowing - unsecured |
|
7 |
116,634,552 |
96,878,736 |
|
| Advances
from customers and others |
|
8 |
1,406,499 |
1,796,119 |
|
| Creditors
and accrued expenses |
|
9 |
44,108,327 |
35,994,738 |
|
| Other liabilities |
|
10 |
10,204,251 |
11,794,561 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
184,853,629 |
165,214,154 |
|
| Contingencies
& commitments |
|
11 |
-- |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
187,888,155 |
181,145,045 |
|
|
|
|
|
========== |
========== |
|
|
|
|
| FIXED
ASSETS - TANGIBLE: |
|
|
|
| At cost |
|
12 |
147,084,594 |
146,510,479 |
|
| Less:
Accumulated depreciation |
|
|
110,911,293 |
107,269,520 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
36,173,301 |
39,240,959 |
|
| Assets
held for capitalisation |
|
|
2,356,851 |
2,731,887 |
|
| Long
term investments |
|
13 |
258,040 |
143,290 |
|
|
|
|
| CURRENT
ASSETS: |
|
|
|
|
| Stores,
spares and loose tools |
|
14 |
34,706,033 |
33,493,589 |
|
| Stock-in-trade |
|
15 |
60,358,558 |
56,652,193 |
|
| Trade
debts - unsecured - considered good |
|
16 |
16,511,374 |
10,300,232 |
|
| Claim
and advances |
|
17 |
3,858,337 |
4,520,641 |
|
| Deposits
& prepayments |
|
18 |
14,659,543 |
13,489,554 |
|
| Advance
income tax |
|
19 |
13,185,051 |
13,874,742 |
|
| Cash
and bank balances |
|
20 |
5,821,067 |
6,697,958 |
|
|
|
|
------------------ |
------------------ |
|
|
149,099,963 |
139,028,909 |
|
|
------------------ |
------------------ |
|
|
187,888,155 |
181,145,045 |
|
|
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
|
(ABDUL KHALIQ) |
|
(ABDUL HAFIZ) |
|
|
|
Chief Executive |
|
Director |
|
|
|
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED 30TH JUNE, 1999 |
|
|
|
Note |
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
|
|
|
| Sales-Net |
|
21 |
223,228,682 |
271,882,954 |
|
| Less:
Cost of sales |
|
22 |
196,874,760 |
216,702,769 |
|
|
|
|
------------------ |
------------------ |
|
| Gross profit |
|
26,353,922 |
55,180,185 |
|
|
|
|
| Less:
Operating expenses |
|
|
|
| Salaries
and allowances |
|
|
3,919,949 |
3,344,156 |
|
| Establishment
expenses |
|
23 |
7,861,162 |
9,336,182 |
|
| Financial
expenses |
|
24 |
7,642,649 |
4,966,968 |
|
| Selling
expenses |
|
25 |
6,160,878 |
8,809,228 |
|
| Auditor's
remuneration |
|
26 |
85,000 |
85,000 |
|
| Director's fee |
|
|
6,000 |
4,500 |
|
| Repairs
and maintenance |
|
|
668,931 |
696,530 |
|
| Depreciation |
|
|
232,857 |
172,521 |
|
| W.W.R |
|
|
-- |
543,060 |
|
| W.P.P.F. |
|
|
-- |
1,424,752 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
26,577,426 |
29,382,897 |
|
|
|
|
|
| OPERATING
PROFIT/(LOSS) |
|
|
(223,504) |
25,797,288 |
|
| Trading profit |
|
27 |
47,389 |
-- |
|
| Other income |
|
28 |
802,413 |
729,930 |
|
|
|
|
------------------ |
------------------ |
|
| Profit
before taxation |
|
|
626,298 |
26,527,218 |
|
|
|
|
| Provision
for taxation: |
|
|
|
| Current |
|
|
|
1,116,143 |
1,363,000 |
|
| Prior |
|
|
|
-- |
3,963,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,116,143 |
5,326,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(489,845) |
21,201,218 |
|
| Add:
Unusual items |
|
|
29 |
-- |
92,252,791 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(489,845) |
113,454,009 |
|
| Accumulated
loss brought forward |
|
|
(82,798,251) |
(196,252,060) |
|
|
|
|
------------------ |
------------------ |
|
| Accumulated
loss carried forward to balance sheet |
|
|
(83,288,096) |
(82,798,251) |
|
|
|
|
========== |
========== |
|
|
|
(ABDUL KHALIQ) |
|
(ABDUL HAFIZ) |
|
|
Chief Executive |
|
Director |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED 30TH JUNE, 1999 |
|
|
|
Note |
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
|
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES: |
|
|
|
|
| Cash
generated from operations |
|
1 |
(600,839) |
54,983,783 |
|
| Payment
of gratuity |
|
|
(778,529) |
(929,501) |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash flow from operating activities |
|
|
(1,379,368) |
54,054,282 |
|
|
|
|
|
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES: |
|
|
|
|
| Fixed
capital expenditure |
|
(599,579) |
(1,706,418) |
|
| Sale
proceeds of fixed assets |
|
96,240 |
-- |
|
|
|
------------------ |
------------------ |
|
|
(503,339) |
(1,706,418) |
|
|
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES: |
|
|
-- |
83,221,000 |
|
| Short
term borrowing from director |
|
19,755,816 |
(24,102,608) |
|
| Short
term borrowing from associated company |
|
|
-- |
1,600,000 |
|
| Loan
from W.P.P.F. |
|
(18,750,000) |
50,000,000 |
|
| Local
currency loan |
|
|
-- |
(38,963,467) |
|
| Foreign
currency loan |
|
-- |
(8,750,000) |
|
| Fixed
Investment fund |
|
-- |
(115,460,774) |
|
| Cash
finance facility |
|
------------------ |
------------------ |
|
|
|
|
1,005,816 |
(52,455,849) |
|
|
|
|
|
------------------ |
------------------ |
|
| Net
decrease in cash and cash equivalents |
|
|
(876,891) |
(107,985) |
|
| Cash
and cash equivalents at the beginning of the year |
|
6,697,958 |
6,805,943 |
|
|
|
|
|
|
------------------ |
------------------ |
|
| Cash
and cash equivalents at the end of the year |
|
|
5,821,067 |
6,697,958 |
|
|
|
|
|
|
========== |
========== |
|
|
|
|
Note |
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
|
|
|
| 1.
CASH GENERATED FROM OPERATIONS: |
|
|
| Profit
before taxation |
|
|
626,298 |
26,527,218 |
|
| Unusual items |
|
|
|
-- |
92,252,791 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
626,298 |
118,780,009 |
|
|
|
|
|
|
|
| Adjustments
for non cash charges and other items |
|
| Depreciation |
|
|
3,975,080 |
4,285,633 |
|
| Provision
for gratuity |
|
|
872,009 |
1,043,618 |
|
| Provision
for diminution in the value of investments |
|
(114,750) |
(3,000) |
|
| Gain
on disposal of assets |
|
|
(29,047) |
-- |
|
| Working
capital changes |
|
2 |
(5,930,429) |
(69,122,477) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(1,227,137) |
(63,796,226) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
(6,00,839) |
54,983,783 |
|
|
|
|
========== |
========== |
|
|
|
|
| 2.
WORKING CAPITAL CHANGES: |
|
|
| Decrease/(increase)
in current assets |
|
|
|
| Stores & spares |
|
(1,212,444) |
7,829 |
|
| Stock in trade |
|
(3,706,365) |
(5,083,187) |
|
| Trade debts |
|
(6,211,142) |
(2,390,233) |
|
| Claims,
advances, deposits and prepayments |
|
(507,685) |
(1,316,546) |
|
| Advance tax |
|
(426,452) |
(68,206) |
|
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
|
(12,064,088) |
(8,850,343) |
|
| Increase/(Decrease)
in current liabilities |
|
|
| Advances
from customers & others |
|
(389,620) |
(68,381) |
|
| Creditors
and accrued expenses |
|
|
8,113,589 |
(61,629,913) |
|
| Other liabilities |
|
|
|
(1,590,310) |
1,426,160 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
6,133,659 |
(60,272,134) |
|
|
|
------------------ |
------------------ |
|
|
|
|
(5,930,429) |
(69,122,477) |
|
|
|
|
========== |
========== |
|
|
|
(ABDUL KHALIQ) |
|
(ABDUL HAFIZ) |
|
|
Chief Executive |
|
Director |
|
|
|
| NOTES
TO THE ACCOUNTS |
|
| FOR
THE YEAR ENDED 30TH JUNE, 1999 |
|
|
| 1.
THE COMPANY AND ITS OPERATIONS: |
|
|
|
| Amin
Fabrics Limited is a public limited company incorporated in Pakistan whose
shares are |
|
| quoted
in Karachi and Lahore Stock Exchanges. |
|
|
|
|
| The
major activities of the company are to manufacture jute and polypropylene
products. |
|
|
| 1.1
ACCOUNTING POLICIES |
|
|
|
|
| a) Fixed assets: |
|
| These
are valued at cost less accumulated depreciation except land and capital
work-in- |
|
| progress
which are stated at cost. The depreciation is charged on the diminishing
balance |
|
| method
at the rates prescribed by the Central Board of Revenue. In respect of
additions, |
|
| depreciation
is charged for the full year. No depreciation is charged on deletions and in |
|
| the
year of disposal. Gains and losses on disposal of assets are included in
other income. |
|
| The
expenses on major repairs and maintenance are charged to income whereas the |
|
| additions
or expansion of fixed assets are capitalised. |
|
|
| b)
Stores and spares: |
|
|
|
| These
are valued at average cost except items in transit which are valued at cost |
|
| accumulated
to the balance sheet date. |
|
|
|
| c)
Stocks-in-trade: |
|
|
|
| Stocks-in-trade
are valued on the following basis: |
|
|
|
| i)
Stocks of raw jute and granules are valued at lower of historical cost and
net realisable |
|
| value.
Cost is determined by last-in-first-out method. |
|
|
|
| ii)
Work-in-process is valued at cost which means cost of raw material plus a
portion of |
|
| the
production overheads. |
|
|
|
|
| iii)
Finished goods are valued at lower of historical cost and net realisable
value. Cost is |
|
| determined
by average method. |
|
|
| iv)
Goods in transit and stock at bonded warehouses are valued at cost
accumulated to |
|
| the
balance sheet date. |
|
|
| d)
Staff retirement benefits: |
|
| The
company operates a recognized provident fund scheme for management employees |
|
| and
an unfunded gratuity scheme for its non management employees. Provision is
made |
|
| annually
to cover obligation under the schemes. |
|
|
|
|
|
|
| e) Taxation: |
|
|
|
| Provision
for current taxation is based on taxable income on current year rates of
taxation |
|
| after
taking into account applicable tax credit. The company accounts for deferred |
|
| taxation
on all significant timing difference, if required using the liability method. |
|
|
| f) Cost: |
|
|
|
| In
these accounts the term cost signifies historical cost without taking into
account any |
|
| adjustment
for inflation or current values at the balance sheet date. |
|
|
|
|
|
| g)
Exchange Rates: |
|
|
|
| Foreign
currency liability is converted into Pakistani currency at the rate
prevailing |
|
| balance
sheet date. |
|
|
|
|
| h)
Revenue Recognition: |
|
|
|
| Revenues
are recognized on the basis of goods delivered and prices agreed. |
|
|
|
|
| i) Investments: |
|
|
|
| Investments
are stated at cost. Provision is made for any permanent diminution in the |
|
| market
value of investments. |
|
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
|
| 2.
AUTHORISED CAPITAL: |
|
|
|
| 20,000,000
(1998: 5,000,000) ordinary shares |
|
|
| of Rs. 10/-each |
|
|
|
200,000,000 |
200,000,000 |
|
|
|
|
|
========== |
========== |
|
