| (Colony ) Thal Textile Mills Limited |
|
|
|
|
|
|
|
| Annual
Report 1999 |
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|
|
| CONTENTS |
|
|
| COMPANY
INFORMATION |
|
| NOTICE
OF MEETING |
|
| DIRECTORS'
REPORT |
|
| AUDITORS'
REPORT |
|
| BALANCE
SHEET |
|
| PROFIT
AND LOSS ACCOUNT |
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| NOTES
TO THE ACCOUNTS |
|
| PATTERN
OF SHAREHOLDING |
|
|
|
| COMPANY
INFORMATION |
|
|
| CHAIRMAN |
|
MIAN AZIZ A. SHAIKH |
|
|
|
| CHIEF
EXECUTIVE |
MIAN TANVEER A. SHAIKH |
|
|
|
| DIRECTORS |
|
MR. TAIMUR TANVEER SHAIKH |
|
|
|
MRS. AYESHA TANVEER |
|
|
|
MST. NAHEED TANVEER |
|
|
|
SH. NADEEM ZAFAR |
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|
|
MR. ZAHUR AHMAD DAR |
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|
|
| COMPANY
SECRETARY |
MR. TARIQ MAHMOOD |
|
|
|
| CHIEF
ACCOUNTANT |
MR. MOHAMMAD AHSAN RANA |
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|
|
| AUDITORS |
|
FAZAL MAHMOOD & CO |
|
|
|
CHARTERED ACCOUNTANTS |
|
|
|
| REGISTERED
OFFICE |
27-CMA COLONY STREET NO.2 |
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|
ABID MAJEED ROAD, |
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|
CANTT, LAHORE-PAKISTAN |
|
|
| MILLS |
|
ISMAILPUR, BHAKKAR |
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|
| CABLE |
|
COLONY THAL |
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|
| FAX |
|
LAHORE 92-42-6668394 |
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|
|
BHAKKAR 92 (04653) 411297 |
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| TELEPHONES |
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|
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| FAISALABAD |
|
639179 |
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| LAHORE |
|
6668164-6668394 |
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| BHAKKAR |
|
2414, 2952, 410440,
410240 |
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| NOTICE
OF ANNUAL GENERAL MEETING |
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|
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| Notice
is hereby given that the 41 st Annual General Meeting of the Shareholders
of(Colony) Thai Textile |
|
| Mills
Limited will be held at the registered office of the Company 27-CMA Colony
Street No.2 Abid Majeed |
|
| Road,
Lahore Cantt, on Friday March 31,2000 at 11.00 a.m. to transact the following
business. |
|
|
| 1.
To confirm the minutes of the 40th Annual General meeting held on 31st March,
1999. |
|
|
| 2.
To receive, consider and adopt the Directors' Report and audited accounts of
the Company, for |
|
| the
year ended on September 30, 1999 together with Auditors' Report thereon. |
|
|
| 3.
To appoint Auditors for the year ended 30-09-2000 and to fix their
remuneration. |
|
|
| 4.
To transact any other business with the permission of the Chairman. |
|
|
| BY
ORDER OF THE BOARD |
|
|
| LAHORE |
|
TARIQ MEHMOOD |
|
| MARCH 08,2000 |
|
COMPANY SECRETARY |
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|
| NOTES: |
|
|
| 1)
The share transfer Books of the Company shall remain closed from 28.03.2000
To 04.04.2000 |
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| (both
days inclusive). |
|
|
| 2) A member entitled to attend and vote at
this meeting may appoint any other member as his/her |
|
| proxy
to attend and vote. Proxies in order to be effective must be received at the
registered office |
|
| of
the company atleast 48 hours before the meeting. |
|
|
| 3. Shareholders are requested to promptly
notify the Company of any change in their address. |
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|
|
| DIRECTORS'
REPORT |
|
|
| Dear
Shareholders, |
|
|
| The
Directors of your Company are pleased to present the Annual Report along with
the Audited |
|
| Accounts
of the Company for the year ended September 30, 1999 and welcome you on the
41st Annual |
|
| General
Meeting of the Company. |
|
|
| The
Financial results for the year under review are as follows: |
|
|
Rupees |
|
| Net
Loss before Taxation |
|
(4,028,758) |
|
| Taxation |
|
| Current |
|
928,972 |
|
|
----------- |
|
| Net
Loss after Taxation |
|
(4,957,730) |
|
| Accumulated
Loss brought forward |
|
(156,822,813) |
|
|
----------- |
|
| Accumulated
Loss carried to Balance Sheet |
|
(161,780,543) |
|
|
========== |
|
|
| GENERAL
REVIEW |
|
|
| The
Company has suffered a loss of Rs. 4,957,730/= as compared to the loss of Rs.
50,398,129/= |
|
| sustained
during the last year. The results were affected due to the reason that the
unit remained in |
|
| operation
only at about 50% capacity because of financial crisis. Subsequently we could
not purchase |
|
| raw
material due to which we had to go on lay off causing production loss. |
|
|
| Moreover
the year under review the cotton crop again failed and due to shortage of
cotton, price touched |
|
| to
its highest while our yarn price remained depressed. The cost of production
increased because of |
|
| production
loss, abnormal increase in cotton and polyester rates and other utilities. |
|
|
| Despite
the unfavourable situation the management put in its best efforts to reduce
the cost of production |
|
| upto
possible level, which reflects the trend towards improvements. |
|
|
| FUTURE
PROSPECTS |
|
|
| This
year the cotton crop was almost good but we could not purchase sufficient
cotton in the prevailing |
|
| circumstances
due to paucity of funds and instead we are purchasing cotton on day-to-day
basis and |
|
| again
the cotton price has gone up. However we are planning to run the unit at 80%
capacity and by |
|
| acquiring
good production, it can be hoped that the Company will be out of crisis. |
|
|
| AUDITORS |
|
|
| The
present Auditors of the Company M/s Fazal Mahmood & Company Chattered
Accountants, Lahore |
|
| retire
and being eligible offered themselves for re-appointment. |
|
|
| PATTERN
OF SHAREHOLDING |
|
|
| The
pattern of shareholding in the prescribed form is included in the Annual
Report. |
|
|
| APPRECIATIONS: |
|
|
| At
the end your Directors wish to place on record their appreciations for the
co-operation and services |
|
| extended
by the Bankers, Financial Institutions, Staff Members and workers of the
Company. |
|
|
| LAHORE:
March 8th, 2000 |
|
FOR AND ON BEHALF OF THE
BOARD |
|
|
|
MIAN TANVEER A. SHAIKH |
|
|
CHIEF EXECUTIVE |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of (COLONY) THAL TEXTILE MILLS LIMITED
as at |
|
| September
30, 1999 and the related profit and loss account and statement of changes in
financial |
|
| position
(cash flow statement), together with the notes forming pad 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,; |
|
|
| (b)
in our opinion: |
|
|
| (i)
the balance sheet and profit and loss account together with the notes thereon
have been |
|
| drawn
up in conformity with the Companies Ordinance, 1984, and are in agreement
with |
|
| the
books of account and are further in accordance with accounting policies
consistently |
|
| applied; |
|
|
| (ii)
the expenditure incurred during the year was for the purpose of the company's
business; |
|
| and |
|
|
| (iii)
the business conducted, investments made and the expenditure incurred during
the year |
|
| were
in accordance with the objects of the company; |
|
|
| (c)
in our opinion and to the best of our information and according to the
explanations given to us, |
|
| the
balance sheet, profit and loss account 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 of the state of the company's affairs as at September 30, 1999 and of
the loss and the |
|
| changes
in financial position (cash flows) for the year then ended; and |
|
|
| (d)
in our opinion, no Zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
|
|
| Without
qualifying our opinion, we draw attention to note 29 to the annexed financial
statements |
|
| which
states that the financial statements have been prepared using going concern
assumption, |
|
| which
is subject to continuing financial assistance from lenders and future results
of the company. |
|
| Consequently,
these financial statements do not include any adjustments that might result,
had |
|
| the
financial statements not been prepared using going concern assumption. |
|
|
| LAHORE:
March 8th, 2000 |
|
FAZAL MAHMOOD &
COMPANY |
|
|
Chartered Accountants |
|
|
|
|
|
| BALANCE
SHEET AS AT SEPTEMBER 30, 1999 |
|
|
|
|
1,999 |
1998 |
|
|
NOTE |
Rupees |
Rupees |
|
| CAPITAL
AND LIABILITIES |
|
|
| Authorized
Capital |
|
3.1 |
90,000,000 |
90,000,000 |
|
|
|
========== |
========== |
|
| Issued,
subscribed and paid up capital |
|
3.2 |
55,687,500 |
44,550,000 |
|
| Reserves |
|
4 |
17,887,309 |
17,887,309 |
|
| Accumulated
Loss |
|
|
(161,780,543) |
(156,822,813) |
|
|
---------- |
---------- |
|
|
|
(88,205,734) |
(94,385,504) |
|
|
|
|
| SURPLUS
ON REVALUATION OF TANGIBLE |
|
|
|
| FIXED ASSETS |
|
5 |
190,425,556 |
203,113,770 |
|
| Sponsor's Loan |
|
6 |
599,484 |
7,345,920 |
|
|
|
|
| LONG
TERM LOANS |
|
|
|
| Demand Finance |
|
7 |
65,207,536 |
43,508,520 |
|
| Morabaha
Facility |
|
8 |
-- |
-- |
|
| Liabilities
against Assets |
|
|
|
|
| subject
to finance Lease |
|
9 |
-- |
-- |
|
|
---------- |
---------- |
|
|
65,207,536 |
43,508,520 |
|
| DEFERRED
LIABILITY |
|
| Provision
for Gratuity |
|
311,365 |
256,261 |
|
| CURRENT
LIABILITIES |
|
|
| Short
Term Finances |
|
10 |
14,837,195 |
86,814,008 |
|
| Current
portion of Long Term Loans |
|
11 |
80,751,785 |
49,735,880 |
|
| Creditors,
Accruals and Other Liabilities |
|
12 |
46,628,414 |
59,469,564 |
|
| Provision
for Taxation |
|
30 |
18,812,473 |
17,883,501 |
|
|
---------- |
---------- |
|
|
161,029,867 |
213,902,953 |
|
| Contingencies
and Commitments |
|
13 |
-- |
-- |
|
|
|
---------- |
---------- |
|
|
329,368,074 |
373,741,920 |
|
|
========== |
========== |
|
|
| PROPERTY
AND ASSETS |
|
|
| TANGIBLE
FIXED ASSETS |
|
|
| At
Cost less Accumulated |
|
| Depreciation |
|
14 |
246,889,985 |
272,216,443 |
|
|
|
|
|
| Assets
subject to Finance Lease |
|
14-A |
32,904,503 |
34,665,823 |
|
| LONG
TERM DEPOSITS |
|
15 |
3,904,308 |
3,904,308 |
|
| CURRENT
ASSETS |
|
|
|
|
| Stores
and Spares |
|
16 |
3,369,925 |
3,418,861 |
|
| Stock in Trade |
|
17 |
25,676,708 |
29,328,436 |
|
| Trade Debtors |
|
18 |
413,200 |
5,205,116 |
|
| Advances,
Deposits, Prepayments |
|
|
|
|
| and
other Receivables |
|
19 |
16,059,109 |
22,494,762 |
|
| Cash
and Bank Balances |
|
20 |
150,336 |
2,508,171 |
|
|
---------- |
---------- |
|
|
45,669,278 |
62,955,346 |
|
|
---------- |
---------- |
|
|
329,368,074 |
373,741,920 |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts |
|
|
|
|
MIAN AZIZA. SHAIKH |
|
MIAN TANVEER A. SHAIKH |
|
|
|
CHAIRMAN |
|
CHIEF EXECUTIVE |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 1999 |
|
|
|
1998 |
1999 |
|
|
NOTE |
Rupees |
Rupees |
|
|
| Sales - Net |
|
21 |
185,794,496 |
326,443,332 |
|
| Cost of Sales |
|
22 |
205,758,877 |
342,106,255 |
|
|
----------- |
----------- |
|
| Gross (Loss) |
|
(19,964,381 ) |
(15,662,923) |
|
|
| Operating
Expenses: |
|
| Administrative |
|
23 |
6,307,456 |
10,803,408 |
|
| Selling
and Distribution |
|
24 |
6,805 |
6,000 |
|
| Financial |
|
25 |
2,644,231 |
31,233,337 |
|
|
----------- |
----------- |
|
|
8,958,492 |
42,042,745 |
|
|
----------- |
----------- |
|
| Operating Loss |
|
(28,922,873) |
(57,705,668) |
|
| Other Income |
|
26 |
24,894,115 |
8,939,756 |
|
|
|
----------- |
----------- |
|
| Loss
before taxation |
|
(4,028,758) |
(48,765,912) |
|
|
| Taxation |
|
| Current |
|
30 |
928,972 |
1,632,217 |
|
|
----------- |
----------- |
|
| Loss
after taxation |
|
(4,957,730) |
(50,398,129) |
|
| Accumulated
loss brought forward |
|
(156,822,813) |
(106,424,684) |
|
|
----------- |
----------- |
|
| Accumulated
loss carried to balance sheet |
|
(161,780,543) |
(156,822,813) |
|
|
========== |
========== |
|
| Basic
& Diluted loss per share |
|
28 |
(0.89) |
(11.31) |
|
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
|
MIAN AZIZ A. SHAIKH |
|
|
MIAN TANVEER A. SHAIKH |
|
|
|
CHAIRMAN |
|
|
CHIEF EXECUTIVE |
|
|
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
|
| (CASH
FLOW STATEMENT) |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 1999 |
|
|
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| (Loss)
before taxation |
|
(4,028,758) |
(48,765,912) |
|
| Adjustments for: |
|
| Depreciation |
|
11,659,233 |
12,502,539 |
|
| Amortization |
|
1,761,320 |
1,861,397 |
|
| Profit
on sale of fixed assets |
|
(10,805,307) |
(7,995,739) |
|
| Balances
written off |
|
(1,797,257) |
(194,894) |
|
| Adjustment
on restructuring of loan |
|
(14,631,748) |
-- |
|
| Settlement
of loan liability |
|
(11,846,038) |
-- |
|
| Financial
charges |
|
17,092,356 |
30,820,964 · |
|
| Provision
for gratuity |
|
55,104 |
157,904 |
|
|
---------- |
---------- |
|
| Operating
(loss) before |
|
(12,541,095) |
(11,613,741) |
|
| working
capital changes |
|
| Adjustment
for working capital changes: |
|
| (Increase)/decrease
in current assets |
|
| Stores
and spares |
|
48,936 |
385,645 |
|
| Stock in trade |
|
3,651,728 |
6,047,661 |
|
| Trade debts |
|
4,747,769 |
(461,583) |
|
| advances,
deposits and other |
|
|
|
| receivables |
|
6,736,742 |
(4,705,084) |
|
|
---------- |
---------- |
|
|
15,185,175 |
1,266,639 |
|
| (Decrease)/Increase
In Current Liabilities |
|
| Short
term finances |
|
12,014,764 |
Rs.8,807,001 |
|
| Creditors,
accrued and other |
|
|
|
| liabilities |
|
13,843,468 |
(9,287,434) |
|
|
---------- |
---------- |
|
|
25,858,232 |
29,519,567 |
|
|
---------- |
---------- |
|
| Cash
generated from operations |
|
28,502,312 |
19,172,465 |
|
| Lease
liability paid |
|
(3,801,391) |
(9,651,837) |
|
| Financial
charges paid other than |
|
| lease rentals |
|
(2,072,587) |
(7,244,011) |
|
| Income tax paid |
|
--- |
(4,062,096) |
|
| Net
Cash (out flow) for |
|
---------- |
---------- |
|
| Operating
Activities |
|
22,628,334 |
(1,785,479) |
|
|
| CASH
FLOWS FROM INVESTING ACTIVITIES |
|
|
| Fixed
capital expenditure |
|
(1,055,843) |
(3,631,602) |
|
| Sale
proceed of fixed assets |
|
11,445,000 |
7,752,742 |
|
| Net
Cash in flow from |
|
---------- |
---------- |
|
| investing
activities |
|
10,389,157 |
4,121,140 |
|
| CASH
FLOWS FROM FINANCING ACTIVITIES |
|
|
| Share capital |
|
4,391,064 |
-- |
|
| Sponsors' loan |
|
-- |
(2,824,297) |
|
| Long
term loan paid |
|
(39,766,390) |
-- |
|
| Net
cash (out flow)/in flow from |
|
---------- |
---------- |
|
| financing
activities |
|
(35,375,326) |
(2,824,297) |
|
|
|
|
| NET
(OUT FLOW)/IN FLOW OF CASH |
|
(2,357,835) |
(488,636) |
|
| CASH
AT BEGINNING OF THE YEAR |
|
2,508,171 |
2,996,807 |
|
|
---------- |
---------- |
|
| CASH
AT END OF THE YEAR |
|
150,336 |
2,508,171 |
|
|
========== |
========== |
|
|
|
|
|
MIAN AZIZ A. SHAIKH |
|
MIAN TANVEER A. SHAIKH |
|
|
CHAIRMAN |
|
CHIEF EXECUTIVE |
|
|
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 1999 |
|
|
|
Paid |
|
|
|
Accumulated |
Total |
|
|
up |
Reserves |
(Loss) |
|
|
|
Ordinary |
|
pre- Exchange |
Grain on |
Share |
|
|
|
share |
incorpor- |
fluctu-- |
redemption |
Premium |
|
|
|
capital |
ation |
ation |
of Preference |
|
|
|
|
|
profit |
|
share capital |
|
|
|
|
|
|
|
|
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
|
|
| Balance
at September 30, 1997 |
|
44,550,000 |
200,000 |
337,309 |
2,500,000 |
14,850,000 |
(106,424,684) |
(43,987,375) |
|
|
| After
tax (loss) for the |
|
| year
ended September 30, 1998 |
|
-- |
-- |
-- |
-- |
-- |
(50,398,129) |
(50,398,129) |
|
|
----------- |
----------- |
----------- |
----------- |
----------- |
----------- |
----------- |
|
| Balance
at September 30, 1998 |
|
44,550,000 |
200,000 |
337,309 |
2,500,000 |
14,850,000 |
(156,822,813) |
(94,385,504) |
|
| Issue
of share capital |
|
11,137,500 |
-- |
-- |
-- |
-- |
-- |
11,137,500 |
|
| After
tax (loss) for the |
|
| year
ended September 30, 1999 |
|
-- |
-- |
-- |
-- |
-- |
(4,957,730) |
(4,957,730) |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| Balance
at September 30, 1999 |
|
55,687,500 |
200,000 |
337,309 |
2,500,000 |
14,850,000 |
(161,780,543) |
(88,205,734) |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
MIAN AZIZ A. SHAIKH |
|
MIAN TANVEER A. SHAIKH |
|
|
CHAIRMAN |
|
CHIEF EXECUTIVE |
|
|
|
|
|
|
| NOTES
TO THE ACCOUNTS |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 1999 |
|
|
| NOTE |
|
|
|
| 1.
STATUS AND NATURE OF BUSINESS |
|
| The
company is a public limited company and its shares are quoted on Stock
Exchanges of |
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| Lahore
and Karachi. It is principally engaged in manufacturing, processing and sale
of yam and |
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| cloth. |
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| 2.
SIGNIFICANT ACCOUNTING POLICIES |
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| 2.1
Accounting Convention |
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| These
accounts have been prepared under the historical cost convention as modified
by |
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| adjustment of: |
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| a)
Revaluation of freehold land, buildings and plant and machinery which have
been |
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| made
by independent valuers (Note No. 14.1 and 14.2). |
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| b)
Exchange rate fluctuations as referred to in note 24 and 2.5. |
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| 2.2
Staff Retirement Benefits |
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| The
company operates a provident fund scheme for its employees. Contributions to
the |
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| fund
are made to cover the obligation. Company also operates a gratuity scheme for |
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| those
employees who are not the members of the fund. Provision has been made to |
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| cover
this obligation. |
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| 2.3 Taxation |
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| Provision
for current taxation is made on taxable income for the year, if any. Tax
credits |
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| and
brought forward losses are recognized for arriving at taxable income for the
year. |
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| The
company accounts for deferred taxation arising due to major timing
differences, by |
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| using
the liability method, to the extent that liability can be estimated for
foreseeable |
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| future. |
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| 2.4 Foreign Currency Translation |
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| Liabilities
in foreign currencies are translated into Pak. Rupee at rates of exchange
ruling |
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| on
balance sheet date. Gains/(Iosses) due to exchange fluctuations in past on
principal |
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| loans/credits
were transferred to the cost of plant and machinery acquired out of |
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| proceeds
of such loans/credits. Other exchange differences' are included in income |
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| currently. |
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| 2.5
Fixed Assets and Depreciation |
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| Fixed
assets are stated at cost/appreciated value less accumulated depreciation
except |
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| freehold
land and capital work in progress which are stated at re-valued amount and
cost |
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| respectively.
Cost of tangible fixed assets consist of historical cost, appreciated value, |
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| applicable
exchange difference as referred in Note No. 2.4, borrowing costs and directly |
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| attributable
cost of bringing the assets to working condition. Depreciation is charged |
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| applying
the reducing balance method to write off the cost including capitalized
exchange |
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| fluctuations
in cost/appreciated value. Rates of depreciation are stated in note |
