| Fateh Sports Wear Limited |
|
|
|
|
|
|
|
| Annual
Report 1999 |
|
|
|
| Notice
of Annual General Meeting |
|
|
|
| Notice
is hereby given that the 16th Annual General Meeting of the shareholders of
FATEH SPORTS |
|
| WEAR
LIMITED, will be held on Monday the 27th December, 1999 at 8.30 a.m. at the
registered office |
|
| of
the Company at Mirpurkhas Road, Hyderabad for the purpose of transacting the
following business :- |
|
|
| 1.
To confirm the minutes of the last Annual General Meeting of the Company held
on December 28, |
|
| 1998. |
|
|
|
| 2.
To receive and adopt the Directors' Report and Audited Balance Sheet together
with the Profit & |
|
| Loss
Account of the Company for the year ended 30th June, 1999. And to declare
cash dividend |
|
| @
Rupee 1.50 per share (15%) as recommended by the Board of Directors. |
|
|
| 3.
To appoint Auditors for the year 1999-2000 and fix their remuneration. |
|
|
| 4.
Any other business with the permission of the chair. |
|
|
|
|
By order of the Board |
|
|
|
FATEH SPORTS WEAR LIMITED |
|
|
| Hyderabad |
|
|
Muhammad Iqbal Khan |
|
| 6th December, 1999 |
|
|
Company Secretary |
|
|
| NOTES: |
|
|
| 1.
The share transfer books of the Company will remain closed for 7 days from 21
st to 27th December, |
|
| 1999
(both days inclusive). |
|
|
| 2.
Any member of the Company who is entitled to attend and vote may appoint any
other member of |
|
| the
Company as his/her Proxy to attend and vote in his/her stead. |
|
|
| 3.
Proxies in order to be effective must be received by the Company at the
Registered Office not later |
|
| than
48 hours before the time of holding the meeting. |
|
|
| 4.
Shareholders are required to notify the change of their address, if any,
immediately. |
|
|
|
|
| Company Profile |
|
|
| BOARD: |
|
| CHAIRMAN/CHIEF
EXECUTIVE |
|
| Mr. Rauf Alam |
|
|
| DIRECTORS |
|
| Mr. Aftab Alam |
|
| Mr. Saeed Alam |
|
| Mr.
Muhammad Mohsin |
|
| Mr.
Muhammad Naveed |
|
| Mrs. Jamila Alam |
|
| Mrs. Najma Roshan |
|
|
| SECRETARY |
|
| Mr.
Muhammad Iqbal Khan |
|
|
| AUDITORS |
|
| M/s.
Moosa & Company |
|
| Chartered
Accountants, |
|
| Karachi. |
|
|
| BANKERS |
|
| Muslim
Commercial Bank Limited |
|
| United Bank Limited |
|
| Askari
Commercial Bank Limited |
|
| Allied
Bank of Pakistan Limited |
|
|
| REGISTERED
OFFICE |
|
| Mirpurkhas Road, |
|
| Hyderabad. |
|
|
| BRANCH OFFICE |
|
| 9th
Floor, Adamjee House, |
|
| I.I. Chundrigar Road, |
|
| Karachi. |
|
|
| PLANT |
|
| Kali Mori, |
|
| Hyderabad. |
|
|
|
| Directors'
Report to the Members |
|
|
| I,
on behalf of the Board of Directors, welcome you on 16th Annual General
Meeting of your Company |
|
| M/s.
Fateh Sportswear Ltd. and present before you the audited accounts and the
Auditors' Report for the |
|
| year
ended on June 30, 1999. The activities of the Company are summarized as
follows. |
|
|
| Operating Results |
|
| During
the year 1998-99 the Company earned a pretax profit of Rs. 5.8 million and
achieved sales of Rs. |
|
| 297.5
million which were low by 3.6% as compared to last year sales. |
|
|
| Appropriations |
|
| The
Board of Directors has recommended following appropriations: |
|
|
|
|
|
Rupees (000) |
|
|
|
|
| Pretax Profit |
|
5,833 |
|
| Provision for Taxation |
|
1,903 |
|
|
|
-------------------- |
|
| Profit after Taxation |
|
3,930 |
|
| Unappropriated
profit brought forward |
|
1,045 |
|
|
|
-------------------- |
|
| Profit
available for appropriation |
|
4,975 |
|
|
| Appropriations:- |
|
| Cash Dividend @ 15% |
|
|
3,000 |
|
| Transfer
to General Reserve |
|
1,000 |
|
|
-------------------- |
|
|
|
|
4,000 |
|
|
|
|
-------------------- |
|
| Balance
carried over to B/S |
|
975 |
|
|
|
|
=========== |
|
| Appointment
of Auditors |
|
| The
retiring auditors M/s. Moosa & Company, Chartered Accountants, being
eligible offer themselves for |
|
| reappointment. |
|
|
| Pattern
of Share holding |
|
| The
pattern of share holdings required under Sec. 236 of the Companies Ordinance,
1984 is annexed. |
|
|
| Staff-Management
Relations |
|
| The
Board of Directors places on record its sincere appreciations on the services
rendered by the |
|
| Company's
employees and the co-operation received from the Bankers. |
|
|
|
|
|
RAUF ALAM |
|
|
|
|
CHAIRMAN |
|
| Dated
29th November, 1999 |
|
BOARD OF DIRECTORS |
|
|
|
|
|
|
|
| Pattern
of holdings of the shares held |
|
| by
the shareholders of Fateh Sports wear Ltd. |
|
| as
at 30th June, 1999 |
|
|
| NO. OF |
|
|
|
|
TOTAL SHARES |
|
| SHAREHOLDERS |
|
SHAREHOLDING |
|
HELD |
|
|
|
|
| 137 |
From |
1 |
To |
100 |
13,028 |
|
| 90 |
From |
101 |
To |
500 |
26,402 |
|
| 62 |
From |
501 |
To |
1000 |
44,465 |
|
| 41 |
From |
1001 |
To |
5000 |
59,962 |
|
| 7 |
From |
5001 |
To |
10000 |
49,865 |
|
| 1 |
From |
15001 |
To |
20000 |
18,700 |
|
| 1 |
From |
20001 |
To |
25000 |
22,695 |
|
| 1 |
From |
25001 |
To |
30000 |
25,431 |
|
| 1 |
From |
30001 |
To |
35000 |
34,825 |
|
| 2 |
From |
45001 |
To |
50000 |
98,079 |
|
| 1 |
From |
50001 |
To |
55000 |
53,270 |
|
| 2 |
From |
55001 |
To |
60000 |
114,510 |
|
| 3 |
From |
60001 |
To |
65000 |
190,525 |
|
| 1 |
From |
70001 |
To |
75000 |
72,750 |
|
| 1 |
From |
80001 |
To |
85000 |
82,815 |
|
| 1 |
From |
-90001 |
To |
95000 |
91,800 |
|
| 1 |
From |
95001 |
To |
100000 |
96,385 |
|
| 1 |
From |
100001 |
To |
105000 |
102,740 |
|
| 3 |
From |
105001 |
To |
110000 |
324,820 |
|
| 1 |
From |
130001 |
To |
135000 |
134,146 |
|
| 1 |
From |
150001 |
To |
155000 |
151,047 |
|
| 1 |
From |
190001 |
To |
195000 |
191,740 |
|
| -------------------- |
-------------------- |
-------------------- |
-------------------- |
-------------------- |
-------------------- |
|
| 360 |
TOTAL |
|
2,000,000 |
|
| =========== |
=========== |
=========== |
=========== |
=========== |
=========== |
|
|
|
| S. |
CATEGORIES OF |
NUMBERS |
SHARES |
PERCENTAGE |
|
| NO. |
SHAREHOLDERS |
|
HELD |
|
|
|
| 1. |
Individuals |
355 |
1,898,385 |
94.92% |
|
| 2. |
Investment Companies |
3 |
100,980 |
5.05 % |
|
| 3. |
Insurance Companies |
0 |
0 |
0.00% |
|
| 4. |
Joint Stock Companies |
1 |
550 |
0.03% |
|
| 5. |
Financial Institutions |
0 |
0 |
0.00% |
|
| 6. |
Modaraba Companies |
0 |
0 |
0.00% |
|
| 7. |
Abandoned Properties |
1 |
85 |
0.00% |
|
|
Organisation |
|
|
-------------------- |
-------------------- |
-------------------- |
|
|
Total |
360 |
2,000,000 |
100.00% |
|
|
=========== |
=========== |
=========== |
|
|
|
|
|
|
|
| Auditors'
Report to the Members |
|
|
|
| We
have audited the annexed balance sheet of Fateh Sports wear Limited as at
June 30, 1999 and the |
|
| related
profit & loss account and the statement of changes in financial position,
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: |
|
|
| (b) in our opinion: |
|
|
|
| (i)
the balance sheet and profit & 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 the accounting policies consistently applied; |
|
|
| (ii)
the expenditure incurred during the year was for the purpose of the company's
business; |
|
| and |
|
|
|
|
| (iii)
the business conducted, investments made and the expenditure incurred during
the year were |
|
| in
accordance with the objects of the company; |
|
|
| (c)
in our opinion and to the best of our information and according to the
explanations given to us, the |
|
| balance
sheet, profit & loss account and the statement of changes in financial
position, 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 June 30, 1999 and of the profit and the changes in financial position for
the year then ended; |
|
| and |
|
|
|
| (d)
in our opinion, Zakat deductible at source under the Zakat & Ushr
Ordinance, 1980 was deducted |
|
| by
the company and deposited in the Central Zakat Fund established under section
7 of that |
|
| Ordinance. |
|
|
|
MOOSA & CO. |
|
| Karachi:
29th November 1999 |
|
Chartered Accountants |
|
|
|
|
| Balance
Sheet as at June 30, 1999 |
|
|
|
NOTE |
'30-06-1999 |
'30-06-1998 |
|
|
NO. |
RUPEES |
RUPEES |
|
|
|
| CAPITAL
& LIABILITIES |
|
| SHARE
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 share capital |
3 |
20,000,000 |
20,000,000 |
|
| General reserve |
|
4 |
53,000,000 |
52,000,000 |
|
| Unappropriated profit |
|
|
974,871 |
1,045,002 |
|
|
|
|
-------------------- |
-------------------- |
|
|
|
|
73,974,871 |
73,045,002 |
|
| DEFERRED
LIABILITIES |
|
|
| Provision for gratuity |
|
|
3,105,684 |
3,240,910 |
|
|
| CURRENT
LIABILITIES |
|
|
| Short
term running finances |
|
5 |
156,310,439 |
181,049,837 |
|
| Creditors,
accrued and other liabilities |
|
6 |
139,440,960 |
176,758,669 |
|
| Workers'
profit participation fund |
|
7 |
6,105,101 |
5,276,798 |
|
| Provision for taxation |
|
8 |
1,700,000 |
1,700,000 |
|
| Proposed'
final dividend |
|
|
3,000,000 |
2,000,000 |
|
|
|
|
-------------------- |
-------------------- |
|
|
306,556,500 |
366,785,304 |
|
|
|
-------------------- |
-------------------- |
|
|
|
383,637,055 |
443,071,216 |
|
|
|
=========== |
=========== |
|
|
| PROPERTY
& ASSETS |
|
|
| TANGIBLE
FIXED ASSETS |
|
| Operating fixed assets |
|
9 |
43,082,298 |
46,337,243 |
|
|
|
|
| CURRENT ASSETS |
|
|
|
|
|
|
| Stores,
spare parts and loose tools |
|
10 |
9,106,042 |
7,880,188 |
|
| Stock-in-trade |
|
11 |
54,398,903 |
86,148,060 |
|
| Trade debts |
|
12 |
138,710,635 |
119,098,358 |
|
| Advances,
deposits and prepayment |
|
13 |
55,473,739 |
120,966,399 |
|
| Other receivables |
|
14 |
80,600,041 |
56,618,794 |
|
| Cash
and bank balances |
|
15 |
2,265,397 |
6,022,174 |
|
|
|
|
-------------------- |
-------------------- |
|
|
|
|
340,554,757 |
396,733,973 |
|
|
-------------------- |
-------------------- |
|
|
|
383,637,055 |
443,071,216 |
|
|
|
=========== |
=========== |
|
| Notes: |
|
|
|
| 1. The annexed notes form an integral part
of these accounts. |
|
| 2.
Auditor's report is attached |
|
|
|
|
RAUF ALAM |
AFTAB ALAM |
MOOSA & CO. |
|
|
| Dated:
29th November, 1999 |
Chief Executive |
Director |
Charted Accountants |
|
|
|
|
|
|
| Profit
and Loss Account |
|
| For
the year ended June 30, 1999 |
|
|
|
NOTE |
'30-06-1999 |
'30-06-1998 |
|
|
NO. |
RUPEES |
RUPEES |
|
|
|
| Sales |
|
16 |
297,525,355 |
308,881,890 |
|
| Cost of Sales |
|
17 |
220,963,841 |
232,384,179 |
|
|
-------------------- |
-------------------- |
|
| Gross Profit |
|
|
76,561,514 |
76,497,711 |
|
|
| Administration
expenses |
|
18 |
28,262,718 |
24,734,135 |
|
| Selling expenses |
|
19 |
12,564,486 |
11,664,573 |
|
|
-------------------- |
-------------------- |
|
|
|
40,827,204 |
36,398,708 |
|
|
-------------------- |
-------------------- |
|
| Operating Profit |
|
|
35,734,310 |
40,099,003 |
|
| Other Income |
|
20 |
59,373 |
70,000 |
|
|
-------------------- |
-------------------- |
|
|
|
|
35,793,683 |
40,169,003 |
|
|
|
|
| Financial expenses |
|
21 |
29,490,451 |
32,040,662 |
|
| Other charges |
|
22 |
470,100 |
664,050 |
|
|
|
|
-------------------- |
-------------------- |
|
|
|
|
29,960,551 |
32,704,712 |
|
|
|
|
-------------------- |
-------------------- |
|
| Profit before taxation |
|
|
5,833,132 |
7,464,291 |
|
| Taxation |
|
| Current |
|
1,700,000 |
1,700,000 |
|
| Prior |
|
203,263 |
(324,491 ) |
|
|
-------------------- |
-------------------- |
|
|
|
1,903,263 |
1,375,509 |
|
|
-------------------- |
-------------------- |
|
| Profit after taxation |
|
|
|
3,929,869 |
6,088,782 |
|
| Unappropriated
Profit brought forward |
|
|
1,045,002 |
956,220 |
|
|
-------------------- |
-------------------- |
|
| Profit
available for appropriation |
|
4,974,871 |
7,045,002 |
|
|
| Appropriations |
|
| General Reserve |
|
1,000,000 |
4,000,000 |
|
| Proposed
final dividend |
|
|
| @ 15% (1997-98 - 10%) |
|
3,000,000 |
2,000,000 |
|
|
|
-------------------- |
-------------------- |
|
|
|
4,000,000 |
6,003,000 |
|
|
|
-------------------- |
-------------------- |
|
| Unappropriated
Profit carried to Balance Sheet |
|
974,871 |
1,045,002 |
|
|
|
=========== |
=========== |
|
| Note:
The annexed notes form an integral part of these accounts |
|
|
|
|
RAUF ALAM |
AFTAB ALAM |
MOOSA & CO. |
|
| Dated:
29th November, 1999 |
Chief Executive |
Director |
Chartered Accountants |
|
|
|
|
|
|
|
| Statement
of Changes in Financial Position |
|
| (Cash
Flow Statement) |
|
| for
the year ended June 30, 1999 |
|
|
|
NOTE |
30-06-1999 |
30-06-1998 |
|
|
NO. |
RUPEES |
RUPEES |
|
|
| NET
CASH INFLOW FROM |
|
| OPERATING
ACTIVITIES |
|
A |
50,623,588 |
(42,790,041) |
|
|
| Return on investment |
|
| and
servicing of finance: |
|
|
| Markup / interest paid |
|
|
(24,382,113) |
(28,447,472) |
|
| Dividend paid |
|
|
(2,000,000) |
(3,000,000) |
|
|
|
|
|
|
| Net
Cash outflow from return on |
|
|
|
|
| investment
and servicing of finance |
|
|
(26,382,113) |
(31,447,472) |
|
|
| Taxation |
|
| Tax Paid |
|
|
| (including
tax deducted at source) |
|
(2,299,492) |
(2,108,619) |
|
|
-------------------- |
-------------------- |
|
| Net
cash flow from taxation |
|
|
(2,299,492) |
(2,108,619) |
|
|
| Investing activities |
|
| Fixed
capital expenditure |
|
|
(959,362) |
(3,777,748) |
|
| Adjustment
for deletion in fixed assets |
|
|
0 |
69,795 |
|
|
-------------------- |
-------------------- |
|
| Net
cash flow from investing activities |
|
|
(959,362) |
(3,707,953) |
|
|
-------------------- |
-------------------- |
|
| Net
cash flow before financing activities |
|
|
20,982,621 |
(80,054,085) |
|
|
| Financing activities |
|
| Increase/(Decrease)
in short term borrowing |
|
(24,739,398) |
84,265,989 |
|
|
|
-------------------- |
-------------------- |
|
| Net
cash flow from financing activities |
|
|
(24,739,398) |
84,265,989 |
|
|
-------------------- |
-------------------- |
|
| Increase/(decrease)'
in cash & cash equivalent |
B |
(3,756,777) |
4,211,904 |
|
|
=========== |
=========== |
|
|
|
| NOTE: A |
|
| Reconciliation
of operating profit to |
|
| net
cash flow from operating activities: |
|
|
| Net
profit before taxation |
|
|
5,833,132 |
7,464,291 |
|
|
| Depreciation |
|
|
4,214,307 |
4,622,368 |
|
| Mark-up
/ interest expenses |
|
|
28,996,148 |
31.598,383 |
|
| Provision for gratuity |
|
|
(135,226) |
(9,402) |
|
|
-------------------- |
-------------------- |
|
|
|
|
33,075,229 |
36,211,349 |
|
|
|
|
-------------------- |
-------------------- |
|
| Operating
profit before working capital changes |
|
38,908,361 |
43,675,640 |
|
|
|
|
-------------------- |
-------------------- |
|
| (Increase)/Decrease
in current assets |
|
| Stores.
spares & loose tools |
|
|
(1,225,854) |
(957,945) |
|
| S tock-i n- trade |
|
|
31,749,157 |
73,972,234 |
|
| Trade debtors |
|
|
(19,612,277) |
(70,429,629) |
|
| Advances.
deposits & pre-payments |
|
|
65,888,889 |
(41.429,933) |
|
| Other receivables |
|
|
(23,981,247) |
1,279,202 |
|
|
| (Decrease)/Increase
in current liabilities |
|
|
| Creditors,
accrued & other liabilities |
|
|
(41,931,744) |
(49.758,089) |
|
| Workers'
Profit Participation Fund |
|
|
828,303 |
858,479 |
|
|
-------------------- |
-------------------- |
|
|
|
|
11,715,227 |
(86,465.681 ) |
|
|
|
|
-------------------- |
-------------------- |
|
|
|
|
50,623,588 |
(42.790,041) |
|
|
=========== |
=========== |
|
| NOTE: B |
|
| Analysis
of changes in cash and cash |
|
| equivalents
during the year: |
|
|
| Cash
and bank balances as at June 30, 1998 |
|
|
6,022,174 |
1,810,270 |
|
| Increase/(decrease) in |
|
|
|
|
| cash
and cash equivalents |
|
|
(3,756,777) |
4,211,904 |
|
|
|
|
-------------------- |
-------------------- |
|
| Cash
and bank balances as at June 30, 1999 |
|
|
2,265,397 |
6,022,174 |
|
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=========== |
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RAUF ALAM |
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AFTAB ALAM |
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| Date:
29th November, 1999 |
Chief Executive |
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Director |
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| Notes
to the Accounts |
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| For
the year ended June 30, 1999 |
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| 1.
THE COMPANY AND ITS OPERATIONS |
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| Fateh
Sports wear Limited is incorporated in Pakistan as a public limited company
and is listed on |
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| the
Karachi Stock Exchange. |
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| The
principal activity of the Company is the manufacture of ready made garments
and selling them |
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| locally
as well as doing exports. |
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| 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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| 2.1
Accounting convention |
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| The
accounts have been prepared under the historical cost convention. The company
has not |
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| adopted
any procedure to determine the impact on the accounts of inflation or changes
in the |
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| general level of prices. |
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| 2.2 Fixed Assets |
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| These
are stated at cost less accumulated depreciation except land which is stated
at cost. |
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| Depreciation
is calculated on the written down value of assets. Full year's depreciation
is |
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| charged
on additions, while no depreciation is charged on fixed assets sold/deleted
during the |
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| year. |
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| Maintenance
and normal repairs are charged to income as and when incurred. Major |
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| renewals
and improvements are capitalised. Gain or loss on disposal of operating fixed
assets |
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| is
recognised in current year's income. |
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| 2.3 Taxation |
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| Charge
for current taxation is based on taxable income at current tax rates after
considering |
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rebates and tax credits available, if any. |
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| The
company does not account for or provide deferred tax liability. It is the
practice of the |
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| management
for providing tax liability for current year's only. The Management is of the |
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| opinion
that time difference tax liability will not materially reverse in foreseeable
future. |
