| Bannu Woollen Mills Limited |
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| Annual
Report 1999 |
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| CONTENTS |
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| COMPANY'S
PROFILE |
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| NOTICE
OF ANNUAL GENERAL MEETING |
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| DIRECTORS'
REPORT TO THE MEMBERS |
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| DECADE
AT A GLANCE |
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| GRAPHIC
ILLUSTRATIONS |
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| PATTERN
OF SHAREHOLDING |
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| AUDITORS'
REPORT |
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| BALANCE
SHEET |
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| PROFIT
& LOSS ACCOUNT |
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| CASH
FLOW STATEMENT |
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| NOTES
TO THE ACCOUNTS |
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| COMPANY'S
PROFILE |
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| BOARD
OF DIRECTORS |
RAZA KULI KHAN KHATTAK |
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Chairman |
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MUHAMMAD AZHAR KHAN |
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Chief Executive |
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LT. GEN. (RETD.) ALI KULI
KHAN KHATTAK |
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AHMED KULI KHAN KHATTAK |
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MUSHTAQ AHMAD KHAN FCA |
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MRS. ZEB GOHAR AYUB KHAN |
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MRS. SHAHNAZ SAJJAD AHMAD |
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MRS. SHAHEEN TARIQ KHALIL |
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MANZOOR AHMED SHEIKH
(NIT) |
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MS. FARZANA MUNAF (NIT) |
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| SECRETARY |
|
AMIN-UR-RASHEED |
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|
(Manager, Corporate
Affairs) |
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| AUDITORS |
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HAMEED CHAUDHRI &
CO., |
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Chartered Accountants |
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| BANKERS |
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National Bank of Pakistan |
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Pakistan Industrial
Credit & Investment |
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Corporation. |
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Bank of Khyber |
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| MILLS |
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D.I. KHAN ROAD, BANNU |
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Phone: (0928)
613151-613250 |
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Fax: (0928) 611450 |
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| REGISTERED
OFFICE |
Bannu Woollen Mills
Limited |
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| and
Share Office |
Habibabad, |
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|
Kohat |
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Phone: (0922)
510063-512930, |
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Fax: (0922) 510474 |
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| NOTICE
OF ANNUAL GENERAL MEETING |
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| Notice
is hereby given that 39th Annual General Meeting of the shareholders of |
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| BANNU
WOOLLEN MILLS LIMITED will be held at Registered Office, Habibabad - Kohat on |
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| Thursday
the 30th March, 2000 at 11:30 A.M. to transact the following business:- |
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| 1.
To approve minutes of the last Annual General Meeting held on March 31, 1999. |
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| 2.
To review, consider and adopt the Annual Audited Accounts of the company for
the year |
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| ended
30 September, 1999 together with the Directors' and Auditors' Reports
thereon. |
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|
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| 3.
To consider and approve the payment of cash dividend @ 40% i.e. Rupee 4/- per
Share |
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| for
the year ended 30 September, 1999, as recommended by the Board of Directors
of the |
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| company. |
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| 4.
To appoint Auditors for the year ending 30 September, 2000 and fix their
remuneration. |
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| 5.
To consider any other business which may be placed before the Shareholders
with the |
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| permission
of the chair. |
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By order of the Board |
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|
AMIN-UR-RASHEED |
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|
Company Secretary |
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| KOHAT |
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& |
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| Dated:
8th March, 2000 |
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Manager Corporate Affairs |
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| NOTES: |
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| 1.
The register of members and share transfer books of the company shall remain
closed from |
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| 19th
March, 2000 to 25th March 2000, (both days inclusive) and no transfers shall
be accepted for |
|
| registration
during this period. |
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|
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| 2.
Any member entitled to attend and vote at this meeting shall be entitled to
appoint any other |
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| person
as his/her proxy to attend and vote in respect of him/her and proxy
instrument shall be |
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| received
by the company not less than 48 hours before the meeting. |
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|
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| 3.
The transfer of shares received in the Registered Office of the company at
the close of business |
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| hours
on 18th March, 2000 will be considered in time for payment of dividend. |
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| 4.
Shareholders are requested to notify the change of address, if any,
immediately. |
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| DIRECTORS'
REPORT TO THE SHAREHOLDERS |
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| Dear
Shareholders, |
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| The
Directors of your-Company are pleased to present to you, the 39th Annual
Report |
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| with
the Annual Audited Accounts. These include Balance Sheet as on 30 September,
1999, |
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| Profit
and Loss Account for the year ended 30 September, 1999 and the Auditors'
Report to |
|
| Shareholders
on these Accounts. We are pleased to inform you that the operating
performance of |
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| your
Company has much improved as compared to the previous year 1998, as it has
earned a Net |
|
| Profit
before Taxation Rs. 42.299 million (before charging prior year's expenses -
gratuity |
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| Rs.
4. 645 million) (Net Profit 1998 - Rs. 31.537 million). The net Profit for
the year has |
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| considerably
increased by 34.03% over the last year. This has been achieved due to
increase in |
|
| gross
sales, decrease in raw materials costs and financial cost of the Company,
despite the Sales |
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| Tax
was increased by the Govt. from 12.50% to 15% to 18% on Gross Sales and your
Company |
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| had
to pay Rs. 5.00 million (Rs. 50 Lac) additional amount of Sales Tax during
the year under |
|
| Report.
However these excellent results were achieved in whole of woollen industry
due to |
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| increased
demand of Mills quality products, reasonable sales Prices and sound Planning
of your |
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| hardworking
professional management team. |
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| FINANCIAL
RESULTS |
|
| Gross
Sales for year 1999- amounted to Rs. 219.645 million (1998 Rs. 207.853
million). |
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| The
Net Sales revenue (after payment of Sales Tax, Commission and Trade discounts
Rs. 34.696 |
|
| million)
amounted to Rs. 184.949 million (1998 - Rs. 178.399 after Sales Tax etc. Rs.
29.454 |
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| million).
The cost of Sales increased to Rs. 128.012 million (1998 - Rs. 127.099).
an-increase of |
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| only
Rs. 0.913 million (even Less than one million) against this sales increased
by Rs. 11.792 |
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| million.
The gross Profit for the year amounted to Rs. 56.936 million as compared to
Rs. 51.300 |
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| million
of the last year 1998. The gross profit percentage works out to 30.78% oŁ the
sales |
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| against
28.76% of the previous year. |
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| The
Company during the year earned an operating Profit (with other income) of |
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| Rs.
43.147 million (1998 Rs. 39.667 million) and after adjustment/deduction of
Rs. 5.493 million |
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| on
account of other charges (1998 - Rs. 8.130 million) and provision of Tax Rs.
9.063 million |
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| (1998-Rs.
8.341 million) the current year net profit available for appropriation
amounted to Rs. |
|
| 28.591
million (1998 Rs. 23.196 million) |
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| OPERATING
PERFORMANCE |
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| The
Company's Plant Capacity is 2338 Woollen Spindles and 48 Shuttle-less Looms. |
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| The
production of Woollen yarn for Fabrics and Blankets was 1150707 Kgs (1998 -
1133304 |
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| Kgs)
and production of Woollen greasy cloth was 1,224,019 meters (of 30 picks)
(1998 - |
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| 1194755
meters). This increase in production was due to improved attendance of
workers and |
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| lower
stoppage of the machines during the year under review. |
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| DIVIDEND |
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| Your
directors are again pleased to recommend to you to approve payment of cash |
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| dividend
@ 40% out of the current year's Profits oŁ the Company. The total provision
for Cash |
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| dividend
shall amount to Rs. 15.600 million i.e. about 55% of the year's current Net
Profit after |
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| Tax.
The directors have also recommended to approve the transfer of Rs. 14.000
million to |
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| general
Reserve oŁ the Company. This will improve the Shareholders Equity to Rs.
113.823 |
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| million
against paid up Capital of Rs. 39.00 million only. |
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| AUDITORS |
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| The
auditors of your company M/s Hameed Chaudhri & Co., Chartered
Accountants, |
|
| H.M.
House, 7-Bank Square, Lahore retire and offer their services for
re-appointment for the |
|
| next
financial year. |
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|
| AUDITORS
OBSERVATIONS. |
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| Note 13.2 |
We have not made
provision in the diminution in the value-of long term |
|
|
investments of the
company in its associated undertakings as in our-opinion |
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|
these investments are not
meant for trading purposes at the Stock Exchange. |
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| ACKNOWLEDGMENT |
|
| Your
Directors with great pleasure wish to convey immense appreciation of the hard |
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| work,
dedication of the working Directors, Officers and all employees of the
company for |
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| achieving
the high production level with higher profit for the year under review. It is
hoped that |
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| with
hard work and good planning, it will lead to higher profit again for the next
year. |
|
|
| I,
on behalf of the Directors also acknowledge the co-operation and in-time
financial |
|
| help
always extended to the company for meeting its requirements, by the National
Bank of |
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| Pakistan,
The Bank of Khyber and PICIC. |
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|
For & on behalf of the Board of Directors |
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|
RAZA KULI KHAN KHATTAK |
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| Dated:
February 29, 2000 |
|
Chairman |
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| DECADE
PERFORMANCE AT A GLANCE |
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|
1990 to 1999 |
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|
(Rs. in million) |
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|
1999 |
1998 |
1997 |
1996 |
1995 |
1994 |
1993 |
1992 |
1991 |
1990 |
|
|
|
| Sales - net |
|
185 |
178 |
164 |
143 |
135 |
118 |
121 |
113 |
84 |
79 |
| Profit before tax |
38 |
31 |
25 |
26 |
21 |
22 |
24 |
22 |
15 |
11 |
|
|
|
| Wages
to employees |
38 |
27 |
25 |
23 |
23 |
20 |
17 |
15 |
14 |
10 |
| Taxes
& duties to Govt. |
42 |
37 |
40 |
37 |
30 |
27 |
29 |
25 |
22 |
17 |
| Dividend to |
|
16 |
12 |
12 |
12 |
12 |
12 |
10 |
10 |
5 |
1 |
| Shareholders |
|
|
|
| Rate-% |
|
(40%) |
(30%) |
(30%) |
(30%) |
(30%) |
(30%) |
(30%) |
10% |
(30%) |
(15% |
|
|
|
|
|
|
& 30% |
|
& 25% |
| Continuous |
|
|
|
|
|
Bonus) |
|
Bonus) |
| since 1981 |
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|
|
|
|
|
| SHARE
HOLDERS' EQUITY:- |
|
| Share Capital |
|
39 |
39 |
39 |
39 |
39 |
39 |
33 |
25 |
16 |
13 |
|
|
|
| Reserves & |
|
|
| Unappropriated |
|
75 |
62 |
50 |
46 |
38 |
36 |
20 |
23 |
6 |
4 |
|
|
|
| Fixed
Assets-cost |
352 |
158 |
139 |
137 |
121 |
88 |
82 |
74 |
71 |
66 |
|
|
|
|
|
Rupees |
|
| Break-up
value-per |
|
| share
of Rs. 10 each |
30.18 |
25.85 |
22.91 |
21.74 |
19.76 |
19.37 |
16.28 |
19.23 |
13.66 |
15.83 |
|
| Earning
before tax-per |
|
| share
of Rs. 10 each |
9.65 |
8.08 |
6.49 |
6.76 |
5.35 |
5.74 |
7.35 |
8.81 |
9.23 |
8.91 |
|
|
|
PERCENTAGE |
|
| Profit before tax |
|
| % to sales |
|
20.36 |
17.68 |
15.36 |
18.32 |
15.45 |
19.02 |
19.68 |
18.57 |
17.97 |
14.63 |
|
| Return
on equity-% |
24.29 |
23.00 |
18.17 |
22.92 |
17.17 |
19.65 |
27.54 |
27.29 |
29.29 |
29.93 |
|
|
| PATTERN
OF SHAREHOLDING |
|
| AS
ON 30th SEPTEMBER 1999 |
|
|
| Form- 34 |
|
| The
Companies Ordinance, 1984 |
|
| (Section 236) |
|
|
| NUMBER OF |
SHAREHOLDING |
TOTAL |
|
|
| SHARE |
FROM |
TO |
SHARES HELD |
|
|
| HOLDERS |
|
|
| 206 |
1 |
100 |
10,099 |
|
| 213 |
101 |
500 |
60,998 |
|
| 226 |
501 |
1,000 |
176,425 |
|
| 127 |
1,001 |
5,000 |
309,129 |
|
| 32 |
5,001 |
10,000 |
237,322 |
|
| 9 |
10,001 |
15,000 |
116,407 |
|
| 6 |
15,001 |
20,000 |
106,253 |
|
| 6 |
20,001 |
25,000 |
132,801 |
|
| 5 |
25,001 |
30,000 |
144,562 |
|
| 5 |
30,001 |
35,000 |
163,432 |
|
| 4 |
35,001 |
40,000 |
152,464 |
|
| 1 |
40,001 |
45,000 |
41,534 |
|
| 1 |
45,001 |
50,000 |
45,717 |
|
| 3 |
50,001 |
55,000 |
158,326 |
|
| 1 |
55,001 |
60,000 |
59,955 |
|
| 1 |
240,001 |
245,000 |
240,200 |
|
| 1 |
315,001 |
320,000 |
319,465 |
|
| 1 |
405,001 |
410,000 |
406,078 |
|
| 1 |
1,015,001 |
1,020,000 |
1,018,833 |
|
| ------------------ |
|
------------------ |
|
| 849 |
|
TOTAL: |
3,900,000 |
|
| ========== |
|
========== |
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|
| Categories of |
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|
| Shareholders |
|
|
Number |
Shares held |
Percentage |
|
|
| Individuals |
|
833 |
1,808,130 |
46.36 |
|
| Investment
Companies |
|
1 |
20,120 |
0.52 |
|
| Insurance
Companies |
|
2 |
323,133 |
8.28 |
|
| Joint
Stock Companies |
|
8 |
1,099,238 |
28.18 |
|
| Financial
Institutions |
|
4 |
648,287 |
16.63 |
|
| Trust |
|
1 |
1,092 |
0.03 |
|
|
|
------------------ |
------------------ |
------------------ |
|
| TOTAL |
|
849 |
3,900,000 |
100.00 |
|
|
========== |
========== |
========== |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed Balance Sheet of BANNU WOOLLEN MILLS LIMITED as at
30 |
|
| September,
1999 and the related Profit and Loss Account and 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 report that: |
|
|
| (a)
in our opinion, proper books of account have been kept by the Company as |
|
| required
by the Companies Ordinance, 1984; |
|
|
| (a)
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 and the |
|
| 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 the except for the fact that provision for diminution in value of long |
|
| term
investments aggregating Rs. 3.667 has not been made in .these accounts |
|
| (note
13.2) and the extent to which this may affect the annexed accounts, |
|
| respectively
give a true and fair view of the state of the Company's affairs as at |
|
| 30
September, 1999 and of the profit and cash flows f6r 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. |
|
|
|
|
|
|
| LAHORE |
|
|
HAMEED CHAUDHRI & CO., |
|
| March 7, 2000 |
|
|
CHARTERED ACCOUNTANTS. |
|
|
|
| BALANCE
SHEET AS AT 30 SEPTEMBER |
|
|
|
|
|
1999 |
1998 |
|
|
|
Note |
Rupees |
Rupees |
|
| CAPITAL
AND RESERVES |
|
|
|
| Authorised
capital |
|
|
| 5,000,000,ordinary
shares |
|
|
| of Rs. 10 each |
|
|
50,000,000 |
50,000,000 |
|
|
|
|
========== |
========== |
|
| Issued,
subscribed and |
|
|
|
|
| paid-up capital |
|
3 |
39,000,000 |
39,000,000 |
|
| Reserves |
|
4 |
74,000,000 |
60,000,000 |
|
| Unappropriated
profit |
|
|
823,230 |
1,832,196 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
113,823,230 |
100,832,196 |
|
|
|
|
|
|
| SURPLUS
ON REVALUATION OF |
|
|
| FIXED
ASSETS |
|
5 |
201,021,420 |
5,327,467 |
|
|
|
|
|
| LONG
TERM LOANS AND DEFERRED |
|
|
| LIABILITIES |
|
|
| Long term loan |
|
6 |
0 |
2,423,443 |
|
| Deferred
taxation |
|
7 |
3,800,000 |
5,600,000 |
|
| Provision
for gratuity |
|
|
12,851,361 |
7,049,583 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
16,651,361 |
15,073,026 |
|
| CURRENT
LIABILITIES |
|
|
|
| Current
portion of long |
|
|
| term loan |
|
6 |
1,252,443 |
2,118,000 |
|
| Short
term finances |
|
8 |
24,254,247 |
44,251,437 |
|
| Creditors,
accrued and |
|
|
|
| other liabilities |
|
9 |
23,125,940 |
42,160,663 |
|
| Workers'
Welfare Fund |
|
|
1,605,244 |
1,416,631 |
|
| Provision
for taxation |
|
10 |
29,468,298 |
25,013,678 |
|
| Unclaimed
dividend |
|
|
533,539 |
517,858 |
|
| Proposed
dividend |
|
|
15,600,000 |
11,700,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
95,839,711 |
127,178,267 |
|
| CONTINGENCIES
AND |
|
|
|
| COMMITMENTS |
|
11 |
|
|
|
|
------------------ |
------------------ |
|
|
|
427,335,722 |
248,410,956 |
|
|
|
========== |
========== |
|
|
| TANGIBLE
FIXED ASSETS |
|
|
|
|
| Operating
fixed assets |
|
12 |
268,369,173 |
81,562,720 |
|
|
|
|
|
| LONG
TERM INVESTMENTS |
|
13 |
6,577,402 |
6,577,402 |
|
| LONG
TERM LOAN S |
|
14 |
104,200 |
460,200 |
|
| LONG
TERM DEPOSITS |
|
|
205,205 |
205,205 |
|
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Stores,
and spares |
|
15 |
15,943,073 |
14,837,401 |
|
| Stock-in-trade |
|
16 |
37,474,807 |
51,372,746 |
|
| Trade debtors |
|
17 |
57,992,417 |
59,230,443 |
|
| Advances,
deposits, prepayments |
|
|
|
| and
other receivables |
|
18 |
39,745,586 |
33,264,762 |
|
| Cash
and bank balances |
|
19 |
923,859 |
900,077 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
152,079,742 |
159,605,429 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
427,335,722 |
248,410,956 |
|
|
|
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
MUSHTAQ AHMAD KHAN, FCA. |
|
MUHAMMAD AZHAR KHAN |
|
|
Director |
|
Chief Executive |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED 30 SEPTEMBER, 1999 |
|
|
|
|
|
1999 |
1998 |
|
|
|
Note |
Rupees |
Rupees |
|
|
|
|
|
| SALES - Net |
|
20 |
184,948,955 |
178,399,308 |
|
| COST
OF SALES |
|
21 |
128,012,411 |
127,098,904 |
|
| GROSS
PROFIT |
|
|
56,936,544 |
51,300,404 |
|
| ADMINISTRATIVE
AND SELLING |
|
|
|
| EXPENSES |
|
22 |
14,209,555 |
12,282,154 |
|
|
|
|
| OPERATING
PROFIT |
|
|
42,726,989 |
39,018,250 |
|
| OTHER
INCOME |
|
23 |
419,677 |
648,656 |
|
|
|
|
43,146,666 |
39,666,906 |
|
| OTHER
CHARGES |
|
|
|
| Financial - Net |
|
24 |
1,444,528 |
4,896,753 |
|
| Miscellaneous |
|
25 |
359,721 |
165,960 |
|
| Donation
to Waqf-e-Kuli Khan Trust |
|
|
1,033,561 |
865,105 |
|
| Workers'
(Profit) Participation Fund |
|
9.2 |
2,067,121 |
1,730,210 |
|
| Workers'
Welfare Fund |
|
|
588,003 |
471,807 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
5,492,934 |
8,129,835 |
|
|
|
|
------------------ |
------------------ |
|
| PROFIT
BEFORE TAXATION |
|
|
37,653,732 |
31,537,071 |
|
| PROVISION
FOR TAXATION |
|
|
|
|
|
|
| Current
and prior years |
|
10 |
11,500,000 |
8,700,000 |
|
| Refund s |
|
|
|
(637,302) |
(2,459,189) |
|
| Deferred |
|
|
|
(1,800,000) |
2,100,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
9,062,698 |
8,340,811 |
|
|
|
|
------------------ |
------------------ |
|
| PROFIT
AFTER TAXATION |
|
|
28,591,034 |
23,196,260 |
|
| UNAPPROPRIATED
PROFIT - Brought forward |
|
|
1,832,196 |
335,936 |
|
|
|
|
|
------------------ |
------------------ |
|
| PROFIT
AVAILABLE FOR APPROPRIATION |
|
|
30,423,230 |
23,532,196 |
|
|
|
|
|
|
|
| APPROPRIATIONS |
|
|
|
| Proposed
dividend @ 40% (1998: @ 30 %) |
|
|
15,600,000 |
11,700,000 |
|
| Transfer
to general reserve |
|
|
14,000,000 |
10,000,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
29,600,000 |
21,700,000 |
|
| UNAPPROPRIATED
PROFIT |
|
|
| -
Carried to Balance Sheet |
|
823,230 |
1,832,196 |
|
|
|
========== |
========== |
|
| EPS |
|
|
29 |
7.33 |
5.95 |
|
|
|
|
========== |
========== |
|
|
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
MUSHTAQ AHMAD KHAN, FCA. |
|
|
MUHAMMAD AZHAR KHAN |
|
|
|
Director |
|
|
Chief Executive |
|
|
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED 30 SEPTEMBER, 1999 |
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| CASH
INFLOW FROM OPERATING ACTIVITIES |
|
|
(note 'A') |
35,735,583 |
43,637,559 |
|
|
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
|
| Fixed
capital expenditure |
|
|
(163,886) |
(18,396,237) |
|
| Exchange
gain on retirement of |
|
|
|
|
| foreign
bills payable - note 12.3 |
|
|
1,051,406 |
0 |
|
| Dividend
received |
|
|
0 |
475,375 |
|
| Sale
proceeds of fixed assets |
|
|
125,879 |
4,625 |
|
| Interest
received on bank deposits/ |
|
|
|
|
| Associated
Undertakings' balances |
|
|
2,999,159 |
1,053,475 |
|
| NET
CASH INFLOW/OUTFLOW FROM |
|
|
------------------ |
------------------ |
|
| INVESTING
ACTIVITIES |
|
|
4,012,558 |
(16,862,762) |
|
|
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
|
| Long
term loan installments repaid |
|
|
(3,289,000) |
(956,000) |
|
| Short
term finances - net |
|
|
(19,997,190) |
(8,513,961) |
|
| Dividend paid |
|
|
(11,684,319) |
(11,569,222) |
|
| Financial
charges paid |
|
|
(4,753,850) |
(5,674,846) |
|
| NET
CASH OUTFLOW FROM |
|
|
------------------ |
------------------ |
|
| FINANCING
ACTIVITIES |
|
|
(39,724,359) |
(26,714,029) |
|
|
|
|
|
| NET
INCREASE IN CASH |
|
|
|
------------------ |
------------------ |
|
| AND
CASH EQUIVALENTS |
|
|
23,782 |
60,768 |
|
|
|
|
|
| CASH
AND CASH EQUIVALENTS |
|
|
| -
At the beginning of the year |
|
|
900,077 |
839,309 |
|
|
|
|
| CASH
AND CASH EQUIVALENTS |
|
|
------------------ |
------------------ |
|
| -
At the end of the year |
|
|
923,859 |
900,077 |
|
|
|
|
========== |
========== |
|
|
| The
annexed note 'A' forms an integral part of this Statement. |
|
|
|
MUSHTAQ AHMAD KHAN, FCA. |
|
|
MUHAMMAD AZHAR KHAN |
|
|
Director |
|
|
Chief Executive |
|
|
|
|
| NOTE 'A' |
|
|
|
|
1999 |
1998 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
|
| Profit
for the year-Before taxation |
|
37,653,732 |
31,537,071 |
|
| Adjustments
for: |
|
|
|
|
| Depreciation |
|
|
|
7,916,581 |
9,083,601 |
|
| Dividend
income |
|
|
0 |
(475,375) |
|
| Gain
on disposals of fixed assets |
|
|
(36,433) |
(3,218) |
|
| Revaluation
surplus credited |
|
|
(6,047) |
0 |
|
| Financial
charges |
|
|
4,677,330 |
6,262,044 |
|
| Provision
for gratuity - net |
|
|
5,801,778 |
2,816,415 |
|
| Deferred
cost amortised |
|
|
0 |
28,316 |
|
| Provision
for slow moving stores |
|
147,000 |
0 |
|
| Interest
on bank deposits/ |
|
|
|
|
| Associated
Undertakings balances |
|
(2,999,159) |
(1,053,475) |
|
| Workers'
Welfare Fund |
|
|
588,003 |
471,807 |
|
|
|
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
|
------------------ |
------------------ |
|
| -
Before working capital changes |
|
53,742,785 |
48,667,186 |
|
|
|
|
|
| (Increase)/decrease
in current assets |
|
|
| Stores
and spares |
|
|
(1,252,672) |
(766,890) |
|
| Stock-in-trade |
|
|
|
13,897,939 |
1,804,487 |
|
| Trade debtors |
|
|
|
1,238,026 |
(3,161,108) |
|
| Advances,
deposits, prepayments |
|
|
| and
other receivables (excluding |
|
|
|
| income
tax and current portion |
|
|
| of
long term loans) |
|
(3,735,972) |
(5,449,257) |
|
| Increase
in creditors, accrued and |
|
|
|
| other
liabilities (excluding accrued |
|
|
|
| financial
charges) |
|
(18,958,203) |
9,378,066 |
|
|
|
------------------ |
------------------ |
|
|
|
(8,810,882) |
1,805,298 |
|
|
|
|
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
|
| -
Before taxation |
|
|
44,931.90 |
50,472,484 |
|
| Taxes paid |
|
|
|
(9,562,320) |
(7,108,725) |
|
|
|
|
------------------ |
------------------ |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
|
| - After taxation |
|
|
|
35,369,583 |
43,363,759 |
|
| Long
term loans-net |
|
|
366,000 |
273,800 |
|
| NET
CASH INFLOW FROM OPERATING |
|
------------------ |
------------------ |
|
| ACTIVITIES |
|
|
|
35,735,583 |
43,637,559 |
|
|
|
|
========== |
========== |
|
|
|
MUSHTAQ AHMAD KHAN, FCA. |
|
|
MUHAMMAD AZHAR KHAN |
|
|
Director |
|
|
Chief Executive |
|
|
|
|
| NOTES
TO THE ACCOUNTS |
|
| FOR
THE YEAR ENDED 30 SEPTEMBER, 1999 |
|
|
| 1.
THE COMPANY AND ITS OPERATIONS |
|
|
|
| The
Company was incorporated in Pakistan as a Public Company in 1960 and its |
|
| shares
are quoted on Stock Exchanges in Pakistan. It is principally engaged in |
|
| manufacture
and sale of woollen yarn, cloth and blankets. |
|
|
|
|
|
| 1.2
Compliance with International Accounting Standards (IASs) |
|
|
| These
accounts, except for the contents of note 13.2 comply with IASs, where |
|
| applicable,
in all material respects. |
|
|
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
|
|
|
|
|
| 2.1
Accounting convention |
|
|
|
| These
accounts have been prepared under the historical cost convention |
|
| modified
by adjustments of exchange rate fluctuations and revaluation of some |
|
| of
the fixed assets as detailed in note 2.2 and 2.5 respectively. |
|
|
|
|
|
| 2.2
Foreign currency translations |
|
|
|
| Assets
and liabilities in foreign currencies are translated into Pak Rupees at the |
|
| exchange
rates ruling on the balance sheet date except where forward exchange |
|
| rates
have been booked which are translated at the contracted rates. |
|
|
|
|
| Exchange
gains/losses on principal loans are capitalised as part of the cost of |
|
| plant
and machinery acquired out of the proceeds of such loans. Other exchange |
|
| gains/losses
are included in income currently. |
|
|
|
|
| 2.3
Staff retirement benefits |
|
| The
Company operates a Provident Fund Scheme for its officers and supervisory |
|
| staff.
Contribution to the Fund is made monthly to cover the obligation. The |
|
| Company
also operates an un-funded Gratuity Scheme for employees not |
|
| covered
by the Provident Fund Scheme. Provision is made annually to cover the |
|
| obligation. |
|
|
| 2.4 Taxation |
|
|
|
| Provision
for current taxation is made at the prevailing rates. Tax credits, rebates |
|
| and
brought forward losses are recognised for arriving-at taxable income for the |
|
| year. |
|
|
|
|
| The
Company accounts for deferred taxation, arising due to major timing |
|
| differences,
using the Liability Method. |
|
|
|
|
|
|
| 2.5
Fixed assets and depreciation |
|
|
|
| Buildings
and plant & machinery are stated at reassessed replacement value less |
|
| accumulated
depreciation. Freehold land is stated at reassessed replacement |
|
| value.
All other fixed assets are stated at cost less accumulated depreciation. |
|
|
|
|
| All
additions, subsequent to the revaluation date, are stated at cost less |
|
| accumulated
depreciation. Exchange rate fluctuations on foreign currency loans |
|
| are
incorporated in the cost of plant and machinery. Borrowing costs pertaining |
|
| to
construction/erection period are also capitalised as part of the historical
cost. |
|
|
|
|
| Capital
work-in progress is stated at cost. |
|
|
|
|
|
| Depreciation
is charged to income applying Reducing Balance Method, to write- |
|
| off
the cost and revaluation adjustments over estimated remaining useful life of |
|
| assets
at the rates stated in note 12. |
|
|
|
| No
depreciation is charged on assets ill the year of disposal whereas full
year's |
|
| depreciation
is charged in the year of acquisition. |
|
|
| Gains/losses
on disposal of fixed assets are included ill current income. |
|
|
| Minor
repairs and replacements are charged to income, whereas major |
|
| improvements
and modifications are capitalised and assets replaced, other than |
|
| those
kept as stand-by are retired. |
|
|
| 2.6
Long term investments |
|
|
|
| These
are stated at cost. |
|
|
|
|
| 2.7
Deferred costs |
|
|
|
| Expenses,
the benefit of which is expected to spread over several years, are |
|
| deferred
and amortised over their useful life not exceeding five years. |
|
|
| 2.8
Stores and spares |
|
|
|
| These
are valued at moving average cost except items-in-transit which are valued |
|
| at
cost accumulated to the balance sheet date. |
|
|
|
|
|
| 2.9
Stock-in-trade |
|
|
|
| Basis
of valuation are as follows: |
|
|
| Particulars |
|
Mode of valuation |
|
| Raw materials |
|
| At warehouses |
|
- At lower of annual average |
|
|
|
|
cost and net realisable
value. |
|
|
| In transit |
|
- At cost accumulated to the |
|
|
|
balance sheet date. |
|
|
| Work-in-process |
- At cost. |
|
|
|
| Finished goods |
|
- At lower of cost and |
|
|
|
net realisable value. |
|
|
| Usable waste |
|
- At estimated realisable value. |
|
|
|
| -
Cost in relation to work-in-process and finished goods represents annual |
|
| average
manufacturing cost which consists of prime cost and appropriate |
|
| manufacturing
overheads. |
|
|
|
|
|
|
| -
Net realisable value signifies the selling price in the ordinary course of |
|
| business
less cost necessary to be incurred to bring the goods in saleable |
|
| form. |
|
|
|
|
|
|
| 2.10
Revenue recognition |
|
|
|
| -
Revenue in respect of sales is recognised on despatch of goods. |
|
| -
Processing charges are accounted for on completion of jobs. |
|
| -
Return on deposits is accounted for on 'Receipt Basis'. |
|
|
| 3.
ISSUED, SUBSCRIBED AND PAID-UP CAPITAL |
|
|
|
|
|
|
1999 |
1998 |
|
|
Note |
Rupees |
Rupees |
|
| 2,259,375
ordinary |
|
|
| shares
of Rs. 10. each |
|
|
| issued for cash |
|
|
|
22,593,750 |
22,593,750 |
|
| 1,640,625
ordinary shares of |
|
|
| Rs. 10 each issued as bonus
shares |
|
16,406,250 |
16,406,250 |
|
|
|
|
------------------ |
------------------ |
|
|
|
39,000,000 |
39,000,000 |
|
|
|
|
========== |
========== |
|
|
|
|
| 4. RESERVES |
|
|
|
|
|
|
|
CAPITAL |
REVENUE |
1999 |
1998 |
|
|
Shares |
General |
|
|
|
premium |
reserve |
TOTAL |
|
|
|
|
| Opening
balance |
|
19,445,313 |
30,554,687 |
60,000,000 |
50,000,000 |
|
| Transfer
during the year |
|
0 |
0 |
14,000,000 |
10,000,000 |
|
| Balance as at |
|
------------------ |
------------------ |
------------------ |
------------------ |
|
| 30 September, |
|
19,445,313 |
30,554,687 |
74,000,000 |
60,000,000 |
|
|
|
|
========== |
========== |
========== |
========== |
|
|
| 4.1
Shares premium account represents premium received on: |
|
|
| a)
859,375 shares @ Rs. 7.50 per share issued during the Financial |
|
| Year 1991-92. |
|
|
|
|
|
|
| b)
650,000 right shares @ Rs. 20.00 per share issued during the Financial |
|
| Year 1993-94 |
|
|
|
|
|
|
| 5.
SURPLUS ON REVALUATION OF FIXED ASSETS |
|
| Opening
balance |
|
5,327,467 |
5,327,467 |
|
| Add:
Surplus on revaluation of freehold land |
|
|
| on
15 May, 1999 |
|
12.2 |
195,700,000 |
0 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
201,027,467 |
5,327,467 |
|
| Less:
Credited to profit and loss account on |
|
|
| disposal
of revalued asset |
|
23 |
6,047 |
0 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
201,021,420 |
5,327,467 |
|
|
|
|
========== |
========== |
|
|
|
|
| 5.1
Revaluation of freehold land, buildings, and plant & machinery on 1
October, 1978 |
|
| resulted
in a surplus of Rs. 6,680,309 over the book value which was credited to |
|
|
| this Account. |
|
|
|
|
|
|
|
|
| 6.
LONG TERM LOAN - Secured |
|
|
| Balance
as at 30 September, |
|
|
1,252,443 |
4,541,443 |
|
| Less
· Current portion grouped |
|
|
| under
current liabilities |
|
6.4 |
1,252,443 |
2,118,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
0 |
2,423,443 |
|
|
|
|
========== |
========== |
|
|
| 6.1
This loan has been obtained from Pakistan Industrial Credit and Investment |
|
| Corporation
Limited: (PICIC) in terms of Pak Rupees equivalent to |
|
| US$
692,792 converted into Pak Rupees at the exchange rates prevailing on the |
|
| disbursements'
dates. It is payable-in 20 half-yearly un-equal installments |
|
| commencing
01 January, 1991. |
|
|
| 6.2
It is Secured by an equitable mortgage of all the immovable properties, |
|
| hypothecation
of plant and machinery, first floating charge on all other assets |
|
| and
demand promissory note. |
|
|
| 6.3
It carries interest @ 14 % per annum calculated on daily products and is
payable |
|
| on
half-yearly basis. Penal interest @ 5 % is payable in case of default in |
|
| payments. |
|
|
| 6.4
At the balance sheet date, advance payments against the installments due
within |
|
| the
following twelve months amounted Rs. 1,171,000 (1998: Nil). |
|
|
| 7.
DEFERRED TAXATION |
|
|
|
| Credit
on account of accelerated |
|
|
|
|
|
| tax
depreciation allowances |
|
|
7,800,000 |
8,000,000 |
|
|
|
|
|
|
|
| Debits
in respect of |
|
|
|
|
| provisions
for gratuity, obsolete |
|
|
|
|
| stores etc |
|
|
|
(4,000,000) |
(2,400,000) |
|
|
|
------------------ |
------------------ |
|
|
|
3,800,000 |
5,600,000 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 8.
SHORT TERM FINANCES - Secured |
|
|
| National
Bank of Pakistan (NBP) |
|
8.1 |
11,154,494 |
29,498,425 |
|
| The
Bank of Khyber (BOK) |
|
8.2 |
13,099,753 |
14,753,012 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
24,254,247 |
44,251,437 |
|
|
|
|
========== |
========== |
|
|
|
|
| 8.1
Cash finance facilities available from NBP under mark-up arrangements |
|
| aggregate
Rs. 55.0 million (1998: Rs. 55.0 million). These are secured by |
|
| pledge/hypothecation
of stock-in-trade, 2nd registered collateral mortgage of |
|
| fixed
assets of the Company, demand bills, registered charge on stock-in-trade, |
|
| book
debts and other assets of the Company and personal guarantees of the |
|
| Company's
Directors. These carry mark-up @ Re. 0.54 per thousand rupees |
|
| calculated
on daily products. Facilities for opening letters of credit aggregate |
|
| Rs.
25.0 million (1998:25.0 million) and are secured against documents of title |
|
| to
goods imported under the letters of credit. These facilities are available
till 30 |
|
| September,
2000. |
|
|
|
|
| 8.2
The running finance facility available from BOK under mark-up arrangements |
|
| amounts
to Rs. 15.0 million (1998: Rs. 15.0 million. It is secured by way of |
|
| registered
hypothecation of stocks and demand promissory note of |
|
| Rs.
19.140 million. It carries mark-up @ Re. 0.48 per thousand rupees calculated |
|
| on
daily products. This facility will expire on 04 August, 2000. |
|
|
|
| 9.
CREDITORS, ACCRUED AND OTHER LIABILITIES |
|
| Due
to Associated Undertakings |
|
18.1 |
1,940,767 |
931,353 |
|
| Creditors |
|
|
827,485 |
2,109,727 |
|
| Bills payable |
|
9.1 |
0 |
21,919,198 |
|
| Advance
payments |
|
|
453,216 |
320,297 |
|
| Accrued
expenses |
|
|
10,599,106 |
9,452,193 |
|
| Interest
accrued on secured long |
|
|
| term loans |
|
|
55,395 |
158,951 |
|
| Mark-up
accrued on secured short |
|
|
| term finances |
|
|
647,694 |
620,658 |
|
| Excise
duty on bank borrowings |
|
|
0 |
13,744 |
|
| Sales
tax payable |
|
|
3,788,946 |
2,606,015 |
|
| Customs duty |
|
|
566,514 |
827,434 |
|
| Income
tax deducted at source |
|
|
2,667 |
8,353 |
|
| Workers'
(Profit) Participation |
|
|
|
| Fund |
|
9.2 |
2,348,819 |
1,916,646 |
|
| Waqf-e-Kuli
Khan Trust |
|
|
1,882,837 |
1,264,126 |
|
| Others |
|
|
12,494 |
11,968 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
23,125,940 |
42,160,663 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 9.1
These are secured against import documents. |
|
|
|
|
|
|
|
| 9.2
Workers' (Profit) Participation Fund |
|
|
| Opening
balance |
|
|
1,916,646 |
1,548,390 |
|
| Interest
for the year |
|
|
274,359 |
203,607 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
2,191,005 |
1,751,997 |
|
| Less:
Payments made during the year |
|
|
1,909,307 |
1,565,561 |
|
|
|
|
------------------ |
------------------ |
|
| Undistributed
amount |
|
|
281,698 |
186,436 |
|
| contribution
for the year |
|
|
2,067,121 |
1,730,210 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
2,348,819 |
1,916,646 |
|
|
|
|
========== |
========== |
|
|
|
|
| 10.
PROVISION FOR TAXATION |
|
|
| Opening
balance |
|
|
25,013,678 |
16,313,678 |
|
| Add:
Transfer from Workers' |
|
|
| Welfare Fund |
|
|
399,390 |
0 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
|
25,413,068 |
16,313,678 |
|
| Provided
during the year |
|
|
|
| Current year |
|
|
|
|
11,500,000 |
7,800,000 |
|
| Prior years |
|
|
|
|
0 |
900,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
11,500,000 |
8,700,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
36,913,068 |
25,013,678 |
|
| Less:
Adjustments against |
|
|
|
| completed
assessments |
|
|
|
7,444,770 |
0 |
|
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
29,468,298 |
25,013,678 |
|
|
|
|
========== |
========== |
|
|
| 10.1
Income tax assessments of the Company have been completed upto the Income |
|
| year
ended 30 September, 1996 (Assessment Year 1997-98). |
|
|
| 10.2
a) The Company has filed a Reference Application against the orders of the |
|
| Income
Tax Appellate Tribunal (ITAT) for set-asiding the decisions of |
|
| the
Assessment Years 1986-87 to 1988-89. |
|
|
|
| b)
The Assessing Officer has revised assessment order for the Assessment |
|
| Year
1991-92 U/S 156 of the Income Tax Ordinance, 1979 and has |
|
| raised
aggregate tax demand of Rs. 1.968 million. On an appeal filed by |
|
| the
Company against the said revised order, ITAT has remanded the case |
|
| back
to the Commissioner of Income Tax (Appeals) {CIT (A)} |
|
|
|
|
| c)
The Assessing Officer has also revised assessment order for the |
|
| Assessment
Year 1996-97 U/S 156 of the Income Tax Ordinance, 1979 |
|
| and
has raised aggregate tax demand of Rs. 3.269 million for interest on |
|
| dealers
outstanding balances. On an appeal filed by the Company against |
|
| the
said revised order, the CIT (Appeals) has set aside the case for |
|
| re- examination. |
|
|
|
|
|
|
| d)
The Company has also filed an appeal with the ITAT for certain add- |
|
|
| backs
made by the Assessing Officer for the Assessment |
|
|
| Year
1996-97. The appeal is pending for decision. |
|
|
|
|
|
| 11.
CONTINGENCIES AND COMMITMENTS |
|
|
|
|
|
| 11.1
Indemnity Bond given by the Company as at 30 September, 1999 was |
|
| outstanding
for Rs. 8.0 million (1998: Rs. 8.0 million). |
|
|
|
|
|
| 11.2
Commitments against irrevocable letters of credit outstanding as at 30 |
|
| September,
1999 were for: |
|
|
|
|
|
|
(Rupees in
Million) |
|
| - Capital expenditure |
|
|
|
1,644 |
0 |
|
| - Others |
|
|
|
7,906 |
1,401 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
9,550 |
1,401 |
|
|
|
|
========== |
========== |
|
|
| 11.3
Refer contents of notes 10.2. |
|
|
| 12.
OPERATING FIXED ASSETS - Tangible |
|
|
|
|
COST/REVALUATION |
|
DEPRECIATION |
|
Book |
|
|
value |
| PARTICULARS |
As at 30 |
Additions |
Disposals/ |
As at 30 |
Rate |
To 30 |
For the |
On |
To 30 |
as at 30 |
|
September, |
|
Adjustments |
September, |
% |
September, |
year |
disposals |
September, |
September, |
|
1998 |
|
1999 |
|
1998 |
|
1999 |
1999 |
|
| Freehold land |
|
152,223 |
0 |
0 |
152,223 |
0 |
0 |
0 |
0 |
0 |
152,223 |
| Cost |
|
2,147,777 |
195,700,000 |
0 |
197,847,777 |
0 |
0 |
0 |
0 |
0 |
197,847,777 |
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
| Revaluation |
|
2,300,000 |
195,700,000 |
0 |
198,000,000 |
|
0 |
0 |
0 |
0 |
198,000,000 |
|
| Buildings
on freehold land |
|
| Factory |
|
| Cost |
|
6,280,399 |
0 |
0 |
6,280,399 |
10 |
3,067,287 |
321,311 |
0 |
3,388,598 |
2,891,801 |
| Revaluation |
|
735,847 |
0 |
0 |
735,847 |
10 |
562,833 |
17,301 |
0 |
580,134 |
155,713 |
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
7,016,246 |
0 |
0 |
7,016,246 |
|
3,630,120 |
338,612 |
0 |
3,968,732 |
3,047,514 |
|
| Residential |
|
| Cost |
|
831,646 |
0 |
0 |
831,646 |
10 |
543,077 |
28,857 |
0 |
571,934 |
259,712 |
| Revaluation |
|
230,795 |
0 |
0 |
230,795 |
10 |
176,530 |
5,427 |
0 |
181,957 |
48,838 |
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
1,062,441 |
0 |
0 |
1,062,441 |
|
719,607 |
34,284 |
0 |
753,891 |
308,550 |
|
| Others |
|
| Cost |
|
1,433,948 |
50,759 |
0 |
1,484,707 |
5 |
956,008 |
26,435 |
0 |
982,443 |
502,264 |
| Revaluation |
|
859,562 |
0 |
0 |
859,562 |
5 |
434,860 |
21,235 |
0 |
456,095 |
403,467 |
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
2,293,510 |
50,759 |
0 |
2,344,269 |
|
1,390,868 |
47,670 |
0 |
1,438,538 |
905,731 |
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
10,372,197 |
50,759 |
0 |
10,422,956 |
|
5,740,595 |
420,566 |
0 |
6,161,161 |
4,261,795 |
|
| Plant
and machinery |
|
| Cost |
|
134,645,338 |
0 |
1,060,541 |
133,584,797 |
10 |
64,958,722 |
6,768,860 |
8,794 |
71,718,788 |
61,866,009 |
| Revaluation |
|
1,353,486 |
0 |
6,047 |
1,347,439 |
10 |
1,036,076 |
31,599 |
4,626 |
1,063,049 |
284,390 |
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
135,998,824 |
0 |
1,066,588 |
134,932,236 |
|
65,994,799 |
6,800,459 |
13,420 |
72,781,837 |
62,150,399 |
|
| Weighment
and material |
|
| handling
equipment |
410,913 |
0 |
0 |
410,913 |
10 |
184,139 |
22,678 |
0 |
206,817 |
204,096 |
| Tools
and equipment |
18,303 |
0 |
0 |
18,303 |
10 |
12,065 |
624 |
0 |
12,689 |
5,614 |
| Furniture
and fixtures |
274,292 |
34,699 |
0 |
308,991 |
10 |
171,582 |
13,741 |
0 |
185,323 |
123,668 |
| Electric fittings |
|
2,307,490 |
78,428 |
32,000 |
2,353,918 |
10 |
921,089 |
144,593 |
13,105 |
1,052,577 |
1,301,341 |
| Office
equipment |
836,732 |
0 |
0 |
836,732 |
10 |
314,417 |
52,232 |
0 |
366,649 |
470,083 |
| Vehicles |
|
5,268,358 |
0 |
410,016 |
4,858,342 |
20 |
2,896,553 |
460,603 |
341,227 |
3,015,929 |
1,842,413 |
| Arms |
|
27,350 |
0 |
0 |
27,350 |
10 |
16,501 |
1,085 |
0 |
17,586 |
9,764 |
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
| Rupees |
|
157,814,459 |
195,863,886 |
1,508,604 |
352,169,741 |
|
76,251,739 |
7,916,581 |
367,752 |
83,800,568 |
268,369,173 |
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
| 1998 Rupees |
|
139,431,766 |
18,396,237 |
13,544 |
157,814,459 |
|
67,180,275 |
9,083,601 |
12,137 |
76,251,739 |
81,562,720 |
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
| 12.1
Some of the fixed assets as detailed in Note 12 were revalued on 1 October,
1978 |
|
| in
order to replace their historical cost with the gross reassessed replacement |
|
| value
and the surplus arisen as a result of such revaluation was transferred to |
|
| Surplus
on Revaluation of Fixed Assets Account' (note 5). |
|
|
|
|
| 12.2
Freehold land of the Company was again revalued on 15 May, 1999. The |
|
|
| revaluation
exercise was carried out by independent Valuers - M/S Hamid |
|
|
| Mukhtar
and Co., valuation consultants and surveyors, 14-Q, Gulberg II, Lahore |
|
|
| to
replace the value with the re-assessed replacement value. |
|
|
|
|
|
|
| The
revaluation resulted in an appraisal surplus of Rs. 195,700 million |
|
| determined
as below: |
|
|
|
|
|
| Particulars |
|
|
Rupees |
|
| Freehold land |
|
|
|
| value
before revaluation |
|
2,300,000 |
|
| Revalued
amount |
|
198,000,000 |
|
|
|
------------------ |
|
| Revaluation
Surplus |
|
|
195,700,000 |
|
|
|
========== |
|
|
|
|
| The
resultant revaluation surplus has been credited to Surplus on Revaluation of |
|
| Fixed
Assets (note-5) to comply with the requirements of section 235 of the |
|
| Companies
Ordinance, 1984. |
|
|
|
|
|
|
| Had
there been no revaluation, the value of freehold land would have been Rs. |
|
| 2.300 million. |
|
|
|
|
|
|
| 12.3
Adjustments to plant and machinery include exchange gain amounting Rs. |
|
| 1,051,406
arisen on retirement of foreign bills payable converted into Pak |
|
| Rupee. |
|
|
|
|
|
|
| 12.4
Depreciation for the year has been apportioned as under: |
|
| Cost of Sales |
|
7,289,478 |
8,320,338 |
|
| Administrative
expenses |
|
627,103 |
763,263 |
|
|
|
------------------ |
------------------ |
|
|
|
7,916,581 |
9,083,601 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
| 12.5
Depreciation on revalued portion of fixed assets was not charged uptill 1984. |
|
| Such
unprovided depreciation worked-out Rs. 391,849 as at 30 September, 1999 |
|
| (1998:
Rs.429,669). |
|
|
|
|
| 12.6
Disposals of operating fixed assets |
|
|
| Particulars |
|
Cost & |
Accumulated |
Book |
Sale |
Gain/ |
Sold by negotiations to |
|
|
Revaluation |
depreciation |
value |
Proceeds |
(Loss) |
|
|
|
| Plant
and machinery |
|
| Transformer |
|
15,182 |
13,420 |
1,762 |
50,000 |
48,238 |
Mr. Tariq & Co.
Suleman |
|
|
Builder (Pvt) Ltd. |
|
|
Dera Ismail Khan |
|
|
| Electric Fittings |
|
| Generator |
|
32,000 |
13,105 |
18,895 |
7,000 |
(11,895) |
Mr. Majid Iqbal
(Employee) |
|
|
|
|
| Vehicles: |
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Nissan Sunny |
Rupees |
457,198 |
367,752 |
89,446 |
125,879 |
36,433 |
|
|
========== |
========== |
========== |
========== |
========== |
|
|
|
|
| 13.
LONG TERM INVESTMENTS - at cost |
|
|
|
| Associated
Undertakings - Quoted |
|
|
| Babri
Cotton Mills Limited |
|
13.1 |
|
| 125,654
ordinary shares of |
|
|
| Rs. 10 each |
|
|
1,633,502 |
1,633,502 |
|
| Market
value Rs.628,270 |
|
|
|
| (1998:
Rs. 691,097) |
|
|
|
| Janana
De Malucho Textile Mills |
|
|
|
| Limited:
380,300 ordinary shares |
|
|
|
| of Rs. 10 each |
|
|
4,943,900 |
4,943,900 |
|
| Market
value Rs. 2,281,800 |
|
|
|
| (1998:
Rs. 2,376,875) |
|
|
------------------ |
------------------ |
|
|
|
6,577,402 |
6,577,402 |
|
|
|
========== |
========== |
|
|
|
|
| 13.1
125,600 shares of Babri Cotton Mills Limited are held by National Bank of |
|
| Pakistan
as security against short term finances extended to Janana De Malucho |
|
| Textile
Mills Limited. |
|
|
|
|
|
|
| 13.2
Provision for diminution in the value of long term investments aggregating |
|
| Rs.
3,667,332 (1998: Rs. 3,509,430) has not been made in these accounts |
|
|
|
|
| 14.
LONG TERM LOANS - Considered good |
|
|
| Loan
to a Director- Secured |
|
14.2 |
300,000 |
600,000 |
|
| Loan
to an Executive - Unsecured |
|
14.3 |
160,200 |
226,200 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
460,200 |
826,200 |
|
| Less:
Current portion grouped |
|
|
| under
current assets |
|
|
356,000 |
366,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
104,200 |
460,200 |
|
|
|
|
========== |
========== |
|
|
|
|
| 14.1
The above balance may be classified as under: |
|
| Outstanding
for periods exceeding 3 years |
|
0 |
300,000 |
|
| Others |
|
|
104,200 |
160,200 |
|
|
|
------------------ |
------------------ |
|
|
|
104,200 |
460,200 |
|
|
|
|
========== |
========== |
|
|
| 14.2
This represents balance of interest free loan of Rs. 2.0 million given to a
working |
|
| Director
during 1994 for construction of House as approved by the Corporate |
|
| Law
Authority vide its letter No. CL-195/1/94-95 dated 20 September. 1994. |
|
| This
is secured against demand promissory note and pledge of 35,000 shares of |
|
| the
Company owned by the said director. The loan is recoverable in 20 equal |
|
| quarterly
installments commencing, 30 September, 1995. |
|
|
|
| 14.3
This interest-free loan has been granted for purchase of vehicle and is |
|
| recoverable
over a period of four years commencing June, 1998. |
|
|
| 14.4
Refer contents of note 18.2. |
|
|
| 15.
STORES AND SPARES |
|
| Stores |
|
|
15.1 |
7,407,479 |
8,493,582 |
|
| Spares |
|
|
|
8,885,594 |
6,546,819 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
16,293,073 |
15,040,401 |
|
| Less:
Provision for slow |
|
|
|
|
|
| moving items |
|
|
|
350,000 |
203,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
15,943,073 |
14,837,401 |
|
|
|
|
========== |
========== |
|
|
|
|
| 15.1
No stores (1998: Rs. 1.476 million) were in transit at the balance sheet
date. |
|
|
|
|
| 15.2
The Company does not hold any stores and spares for specific capitalisation. |
|
|
|
|
| 16.
STOCK-IN-TRADE |
|
|
|
| Raw materials |
|
|
|
| At
warehouse including Rs. 2.186 million |
|
|
| (1998: Rs. 3.319 million)
in Customs Bond |
|
|
15,618,571 |
22,969,239 |
|
| In transit |
|
|
|
4,077,488 |
7,379,005 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
19,696,059 |
30,348,244 |
|
| Work-in-process |
|
|
8,328,785 |
7,041,559 |
|
| Finished goods |
|
|
9,449,963 |
13,982,943 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
37,474,807 |
51,372,746 |
|
|
|
|
|
========== |
========== |
|
|
|
|
| 17.
TRADE DEBTORS |
|
|
| These
are unsecured and considered good. |
|
|
| 18.
ADVANCES, DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES |
|
| Due
from Associated |
|
| Undertakings |
|
|
|
18.1 |
12,908,658 |
6,569,696 |
|
| Current
portion of long term |
|
|
|
|
| loans |
|
|
|
14 |
356,000 |
366,000 |
|
| Loans
and advances to employees |
|
|
|
| - Considered good |
|
|
|
208,393 |
342,091 |
|
| Advance payments |
|
|
|
145,838 |
984,462 |
|
| Deposits: |
|
|
|
|
| -
Excise duty |
|
|
|
|
0 |
1,838 |
|
| - Others |
|
|
|
|
2,261,900 |
4,453,500 |
|
| Prepayments |
|
|
|
|
82,716 |
27,716 |
|
| Letters of credit |
|
|
|
186,925 |
27,070 |
|
| Income
tax refundable/ |
|
|
|
| Advance tax/tax deducted at
source |
|
|
23,025,036 |
20,270,184 |
|
| Claims
receivable - Considered good |
|
|
570,120 |
173,821 |
|
| Other receivables - |
|
|
|
0 |
48,384 |
|
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
39,745,586 |
33,264,762 |
|
|
|
|
|
========== |
========== |
|
|
| 18.1
Associated Undertakings: |
|
|
| a)
Mark-up has been charged/paid at the rate ranging from Re. 0.49 to |
|
| Re.
0.54 per thousand Rupees on the current account balances of the |
|
| Associated
Undertakings. However, no mark-up has been paid on the |
|
| current
account balances of Universal Insurance Company Limited as |
|
| these
balances have arisen on account of insurance premium payable. |
|
|
| b)
Maximum aggregate debit balance of Associated Undertakings at any |
|
| month
end during the year was Rs. 28,978,616 (1998: Rs. 7,516,048). |
|
|
| c)
Aggregate transactions with the Associated Undertakings during the year |
|
| were as follows: |
|
|
|
|
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
|
|
|
|
| Purchase
of goods and services |
|
|
1,730,738 |
1,961,814 |
|
| Purchase
of fixed assets |
|
|
0 |
661,500 |
|
| Sales
of goods and services |
|
|
445,714 |
420,716 |
|
| Interest paid |
|
|
|
109,522 |
0 |
|
| Dividend paid. |
|
|
|
3,236,364 |
3,312,132 |
|
| Dividend
received |
|
|
0 |
475,375 |
|
| Interest
received |
|
|
2,986,583 |
1,034,215 |
|
|
| 18.2
Maximum aggregate debit balance of the Chief Executive at any month end |
|
| during
the year was Rs. 9,492 (1998: Rs. 6,821) and of the Director was |
|
| Rs.600,000
(1998: Rs. 1,100,000). |
|
|
|
|
|
|
| Maximum
aggregate debit balance of the Executives at any month end during the |
|
| year
was Rs. 234,926(1998: Rs. 239,288). |
|
|
|
|
| 19.
CASH AND BANK BALANCES |
|
| In hand |
|
Note |
103,555 |
66,919 |
|
|
|
|
|
|
| At banks on |
|
|
|
|
| current
accounts |
|
|
765,508 |
740,435 |
|
| savings
accounts |
|
19.1 |
0 |
34,622 |
|
| Dividend
accounts |
|
|
54,796 |
58,101 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
820,304 |
833,158 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
923,859 |
900,077 |
|
|
|
|
========== |
========== |
|
|
| 19.1
These include no foreign currency balance (1998: G.B. Ł. 402 which were |
|
| converted
into Pak Rupees at the exchange rate prevailing on the balance sheet |
|
| date
i.e. 1 G.B. Ł = Rs. 86.2283. |
|
|
|
|
|
|
| 20.
SALES - Net |
|
|
|
| Fabrics
and blankets |
|
219,306,851 |
207,489,967 |
|
| Wastes |
|
333,383 |
333,515 |
|
| Processing
charges |
|
4,664 |
29,666 |
|
|
|
------------------ |
------------------ |
|
|
|
219,644,898 |
207,853,148 |
|
|
|
------------------ |
------------------ |
|
| Less: |
|
|
|
| Sales
tax (Including Rs. 266,000 |
|
|
|
| relating
to prior years) |
|
28,280,841 |
23,380,031 |
|
| Discount |
|
555,800 |
772,266 |
|
| Commission |
|
5,859,302 |
5,301,543 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
34,695,943 |
29,453,840 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
184,948,955 |
178,399,308 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
| 21.
COST OF SALES |
|
|
|
| Raw
materials consumed |
|
21.1 |
62,193,036 |
68,421,997 |
|
| Salaries,
wages and benefits (including gratuity |
|
|
| expenses
of prior years |
|
|
| amounting
Rs. 4,210,813) |
|
|
28,205,645 |
22,260,140 |
|
| Power and fuel |
|
|
11,852,366 |
11,974,132 |
|
| Stores
consumed |
|
|
9,738,803 |
10,377,445 |
|
| Repair
and maintenance |
|
|
4,851,386 |
3,547,245 |
|
| Depreciation |
|
|
7,289,478 |
8,320,338 |
|
| Insurance |
|
|
481,245 |
481,244 |
|
| Others |
|
|
154,698 |
113,258 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
124,766,657 |
125,495,799 |
|
| Adjustment
of work-in-process |
|
|
| Opening |
|
|
7,041,559 |
8,742,058 |
|
| Closing |
|
|
(8,328,785) |
(7,041,559) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(1,287,226) |
1,700,499 |
|
|
|
|
------------------ |
------------------ |
|
| Cost
of goods manufactured |
|
|
123,479,431 |
127,196,298 |
|
|
|
|
|
|
| Adjustment
of finished goods |
|
|
|
| Opening |
|
|
13,982,943 |
13,885,549 |
|
| Closing |
|
|
(9,449,963) |
(13,982,943) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
4,532,980 |
(97,394) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
128,012,411 |
127,098,904 |
|
|
|
|
========== |
========== |
|
|
| 21.1
Raw materials consumed |
|
|
|
| Purchases
(net of returns of |
|
51,540,851 |
68,220,615 |
|
| Rs. 111,565) |
|
|
|
|
|
|
| Adjustment
of stock |
|
|
|
| Opening |
|
|
30,348,224 |
30,549,626 |
|
| Closing |
|
|
(19,696,059) |
(30,348,244) |
|
|
|
------------------ |
------------------ |
|
|
|
10,652,185 |
201,382 |
|
|
|
------------------ |
------------------ |
|
|
|
62,193,036 |
68,421,997 |
|
|
|
|
========== |
========== |
|
|
|
|
| 22.
ADMINISTRATIVE AND SELLING EXPENSES |
|
| Administrative: |
|
|
|
|
| Salaries
& benefits (including gratuity |
|
7,431,350 |
6,179,933 |
|
| expenses
of prior years |
|
|
| amounting
Rs.434,494) |
|
|
| Travelling
including directors; Rs. 758,833 |
|
|
| (1998:
Rs. 64,635) |
|
914,408 |
252,977 |
|
| Rent,
rates and taxes |
|
263,797 |
244,110 |
|
| Entertainment/guest
house expenses |
|
162,286 |
126,871 |
|
| Communication |
|
410,192 |
393,489 |
|
| Printing
and Stationery |
|
244,630 |
242,784 |
|
| Electricity |
|
634,139 |
592,273 |
|
| Insurance |
|
8,401 |
8,151 |
|
| Repair
and maintenance |
|
146,025 |
149,900 |
|
| Vehicles'
running |
|
690,034 |
566,562 |
|
| Advertisement |
|
58,860 |
19,380 |
|
| Subscription/papers
and |
|
|
| periodicals |
|
92,070 |
86,635 |
|
| General |
|
21,581 |
4,485 |
|
| Depreciation |
|
627,103 |
763,263 |
|
| Deferred
costs amortised |
|
0 |
28,316 |
|
|
|
------------------ |
------------------ |
|
|
|
11,704,876 |
9,659,129 |
|
|
|
|
|
|
| Selling
& distribution: |
|
|
|
| Salaries
& benefits (including gratuity |
|
|
| expenses
of prior years |
|
|
|
| amounting
Rs. 54,693) |
|
1,247,055 |
1,390,991 |
|
| Travelling |
|
10,900 |
21,230 |
|
| Outward
Freight |
|
4,977 |
1,641 |
|
| Sales
promotion/samples |
|
215,380 |
100,725 |
|
| Publicity |
|
|
|
73,660 |
29,700 |
|
| Export tax |
|
952,707 |
1,074,508 |
|
| Others |
|
|
|
|
0 |
4,230 |
|
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
2,504,679 |
2,623,025 |
|
|
|
------------------ |
------------------ |
|
|
|
14,209,555 |
12,282,154 |
|
|
|
|
========== |
========== |
|
|
|
|
| 22.1
The Company has shared expenses of Combined Offices with the Associated |
|
| Undertakings
aggregating Rs. 1,856,905 (1998: Rs. 1,595,212). |
|
|
| 23.
OTHER INCOME |
|
| Empties/scrap/trees
sale |
|
|
203,945 |
147,145 |
|
| Gain
on disposals of fixed assets |
|
|
36,433 |
3,218 |
|
| Surplus
on revaluation |
|
|
| of
fixed assets -credited |
|
5 |
6,047 |
0 |
|
| Unclaimed
balances written back |
|
|
173,252 |
14,038 |
|
| Dividend |
|
|
0 |
475,375 |
|
| Exchange gain |
|
|
0 |
8,880 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
419,677 |
648,656 |
|
|
|
|
========== |
========== |
|
|
|
|
| 24.
FINANCIAL CHARGES - Net |
|
|
| Interest on: |
|
|
|
| Secured
long term loan |
|
|
385,714 |
668,147 |
|
| Employees'
Provident Fund |
|
|
46,496 |
150,723 |
|
| Workers'
(Profit) Participation Fund |
|
274,359 |
203,607 |
|
| Mark
up on Associated Undertakings' balances |
|
109,522 |
0 |
|
| Mark-up
on secured short term finances |
|
3,861,249 |
5,239,567 |
|
|
|
------------------ |
------------------ |
|
|
|
4,677,330 |
6,262,044 |
|
|
|
|
| Less:
Interest/profit earned on: |
|
|
|
| Dealers
balances |
|
274,184 |
336,561 |
|
| Associated
Undertakings' balances |
|
2,986,583 |
1,034,215 |
|
| Bank
deposit accounts |
|
12,576 |
19,260 |
|
|
|
------------------ |
------------------ |
|
|
|
3,273,343 |
1,390,036 |
|
|
|
------------------ |
------------------ |
|
|
|
1,403,987 |
4,872,008 |
|
| Bank charges |
|
|
40,541 |
24,745 |
|
|
|
------------------ |
------------------ |
|
|
|
1,444,528 |
4,896,753 |
|
|
|
|
========== |
========== |
|
|
| 25.
MISCELLANEOUS CHARGES |
|
|
| Auditors'
remuneration |
|
|
| Audit fee |
|
75,000 |
75,000 |
|
| Consultancy
charges |
|
30,000 |
0 |
|
| Out-of-pocket
expenses |
|
7,500 |
7,500 |
|
|
|
------------------ |
------------------ |
|
|
112,500 |
82,500 |
|
|
|
|
| Donations |
|
25.1 |
25,596 |
7,732 |
|
| Legal
and professional |
|
|
| charges
(other than Auditors) |
|
|
221,625 |
75,728 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
359,721 |
165,960 |
|
|
|
|
========== |
========== |
|
|
| 25.1
In addition to these, Rs. 1,033,561 (1998: Rs. 865,105) have been donated to |
|
| Waqf-e-Kuli
Khan Trust (a Charitable Institution) administered by the following |
|
| directors
of the Company: |
|
|
|
|
|
|
| 1.-
Mr. Raza Kuli Khan Khattak |
|
2. Mr. Ahmad Kuli Khan
Khattak |
|
| 3.-
Mrs. Shahnaz Sajjad Ahmed |
|
4. Mr. Mushtaq Ahmad
Khan, FCA |
|
| 5.
Mrs. Zeb Gohar Ayub Khan |
|
6. Mrs. Shaheen Tariq
Khalil |
|
|
| 26.
SUMMARISED RESULTS OF UNIT -II |
|
| The
Company, during 1995, installed Unit No. II for manufacturing of woollen
yarn, |
|
| cloth
and blankets. This Unit is exempt from tax for a period of eight years w.e.f. |
|
| January,
1995 under sub-clause (C) of clause (188-H) of Part-I of the Second Schedule |
|
| to
the Income Tax Ordinance, 1979. The Regional Commissioner of Income Tax vide
its |
|
| Certificate
No. 3538 dated 11 December, 1994 has issued the necessary exemption |
|
| under
the said clause. |
|
|
|
|
|
|
| The
summarised results of Unit No. II are as follows: |
|
|
|
|
| SALES - Net |
|
|
41,336,167 |
34,263,342 |
|
| COST
OF SALES |
|
|
30,405,551 |
26,059,591 |
|
|
|
|
------------------ |
------------------ |
|
| GROSS
PROFIT |
|
|
10,930,616 |
8,203,751 |
|
| ADMINISTRATIVE
AND |
|
|
| SELLING
EXPENSES |
|
|
873,882 |
900,936 |
|
|
|
|
------------------ |
------------------ |
|
| OPERATING
PROFIT |
|
|
10,056,734 |
7,302,815 |
|
|
|
|
|
| OTHER
CHARGES |
|
|
|
| Financial - Net |
|
|
371,939 |
1,211,594 |
|
| Miscellaneous |
|
|
0 |
0 |
|
| Donations
to Waqf-e-Kuli Khan Trust |
|
|
242,118 |
152,281 |
|
| Workers'
(Profit) Participation Fund |
|
|
484,235 |
304,561 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,098,292 |
1,668,436 |
|
|
|
|
------------------ |
------------------ |
|
| PROFIT
FOR THE YEAR |
|
|
8,958,442 |
5,634,379 |
|
|
|
|
|
========== |
========== |
|
|
| 27.
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 SEPTEMBER, 1999 |
|
|
| PARTICULARS |
Share |
Share |
General |
Unappropriated |
Total |
|
|
|
Capital |
Premium |
Reserve |
Profit |
|
|
|
|
|
|
|
|
|
(Rupees) |
|
|
| Balance as at |
|
|
| 30
September, 1997 |
39,000,000 |
19,445,313 |
30,554,687 |
335,936 |
89,335,936 |
|
| Net
profit for the year |
0 |
0 |
0 |
23,196,260 |
23,196,260 |
|
| Proposed
dividend |
0 |
0 |
0 |
(11,700,000) |
(11,700,000) |
|
| Transfer
to general reserve |
0 |
0 |
10,000,000 |
(10,000,000) |
0 |
|
|
|
========== |
========== |
========== |
========== |
========== |
|
|
|
|
| Balance as at |
|
|
| 30
September, 1998 |
39,000,000 |
19,445,313 |
40,554,687 |
1,832,196 |
100,832,196 |
|
| Net
profit for the year |
0 |
0 |
0 |
28,591,034 |
28,591,034 |
|
| Proposed
dividend |
0 |
0 |
0 |
(11,700,000) |
(11,700,000) |
|
| Transfer
to general reserve |
0 |
0 |
0 |
0 |
0 |
|
| Balance as at |
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| 30
September, 1999 |
39,000,000 |
19,445,313 |
40,554,687 |
18,723,230 |
117,723,230 |
|
|
|
========== |
========== |
========== |
========== |
========== |
|
|
|
|
| 28.
FINANCIAL ASSETS AND LIABILITIES |
|
|
|
|
|
|
| 28.1
The financial assets of the Company aggregated Rs. 74.980 million of which
Rs. 60.812 |
|
| million
are subject to credit risk. The effective interest/mark-up rate of financial
assets |
|
| range
from 17.88% to 18.98% per annum. |
|
|
|
|
| 28.2
The financial liabilities of the Company aggregated Rs. 71.256 million. The
financial |
|
| liabilities
are based on mark-up/interest except for liabilities aggregating Rs. 22.559 |
|
| million.
The effective interest/mark-up rate of financial liabilities range from 14%
to |
|
| 18.98%
per annum. |
|
|
| 28.3
The carring amounts of the financial assets and financial liabilities
approximate their fair |
|
| values
except for long term investments which are stated at cost. |
|
|
| 29.
EARNINGS PER SHARE (EPS) |
|
|
|
|
1999 |
1998 |
|
|
|
Rupees |
|
| Profit
after taxation attributable to |
|
|
| ordinary
shareholders |
|
28,591,034 |
23,196,260 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
|
|
|
No. of
shares |
|
| Number
of ordinary shares issued and subscribed |
|
|
|
|
| at
the end of the year |
|
|
3,900,000 |
3,900,000 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
|
|
|
Rupees |
|
|
|
|
|
|
|
|
| EPS |
|
|
|
7.33 |
5.95 |
|
|
|
|
========== |
========== |
|
|
| 30.
REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES |
|
|
|
|
Chief
Executive |
Working
Directors |
Executives |
|
| PARTICULARS |
|
|
|
1999 |
1998 |
1999 |
1998 |
1999 |
1998 |
|
| Remuneration |
|
|
| (including
bonus) |
940,083 |
461,216 |
723,221 |
873,044 |
2,863,145 |
2,544,023 |
|
| Provident Fund |
|
|
| contribution |
|
54,585 |
38,422 |
0 |
0 |
225,491 |
204,070 |
|
| House rent |
|
0 |
0 |
175,500 |
195,315 |
108,900 |
108,900 |
|
| Insurance |
|
1,660 |
1,660 |
0 |
0 |
5,576 |
8,976 |
|
| Reimbursement |
|
|
| of Medical and |
|
|
| other expenses |
|
70,584 |
18,168 |
0 |
0 |
190,809 |
178,475 |
|
| Utilities |
|
0 |
0 |
54,133 |
43,403 |
29,740 |
31,974 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Rupees |
|
1,066,812 |
519,466 |
952,854 |
1,111,762 |
3,423,661 |
3,076,418 |
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
| Number of persons |
1 |
1 |
2 |
2 |
9 |
9 |
|
|
|
| 30.1
The Chief Executive has also been provided with free use of the Company's
car, Company |
|
| maintained
house and telephone at his residence. Executives are provided with houses at |
|
| Company's
Colony. |
|
|
|
|
|
|
| 30.2
Remuneration of Chief Executive and directors does not include any amount,
provided for |
|
| or
paid by the Associated Undertakings. Payments to the working directors
represent the |
|
| Company's
share of remuneration transferred by the Associated Undertakings. |
|
|
| 30.3
In addition to above, meeting fee of Rs. 5,500 (1998: Rs. 2,500) was also
paid to seven |
|
| (1998:
four) non-working directors. |
|
|
| 31.
CAPACITY AND PRODUCTION |
|
|
|
|
|
|
|
1999 |
1998 |
|
| Yarn |
|
|
|
| Number
of spindles installed (1,858 in Unit |
|
|
| No.1
and 480 in Unit No. II) |
|
2,338 |
2,338 |
|
| Number
of spindles/shifts worked |
|
1,692,673 |
1,615,463 |
|
| Installed
capacity at 5 Nm count (Kgs.) |
|
3,732,479 |
3,732,479 |
|
|
|
|
| Actual
production converted into |
|
|
| 5
Nm count (Kgs.) |
|
1,150,707 |
1,133,304 |
|
| Number
of shifts worked |
|
|
|
| {Unit
No. II worked for 912) |
|
|
|
| (1998:
909) shifts} |
|
1,783 |
1,690 |
|
| Cloth |
|
|
|
| Number
of looms installed: {40 (1998: 40) in |
|
|
| Unit
No. land 8 (1998: 8) in unit No. II} |
|
48 |
48 |
|
| Number
of looms/shifts worked |
|
32,391 |
29,488 |
|
| Installed
capacity of 40 (1998: 48) |
|
|
| operational
looms at 30 picks (Meters) |
|
3,365,455 |
3,738,531 |
|
| Actual
production converted into |
|
|
| 30
picks (Meters) |
|
1,224,019 |
1,194,755 |
|
| Number
of shifts worked |
|
|
| (Unit
No. II worked for 1,020) |
|
|
| (1998:
1,020) Shifts} |
|
2,044 |
2,068 |
|
|
| It
is difficult to describe precisely the production capacity in
spinning/weaving mills |
|
| since
it fluctuates widely depending on various factors such as count of yarn spun, |
|
| spindles
speed, twist, the width and construction of cloth woven etc. It also varies |
|
| according
to the pattern of production adopted in a particular year. |
|
|
| Production
was low due to obsolete machinery and electric shut-downs. |
|
|
| 32. FIGURES |
|
|
| - in the
accounts are rounded off to the nearest rupee; |
|
|
|
|
|
| -
of the previous year are re-arranged wherever necessary for the purposes of |
|
| comparison. |
|
|
|
|
|
MUSHTAQ AHMAD KHAN, FCA |
|
MUHAMMAD AZHAR KHAN |
|
|
Director |
|
Chief Executive |
|
|
|
|
|
|
|
|
|
|
|
|
|
