| Frontier Sugar Mills & Distillery Limited |
|
|
|
|
|
|
| Annual
Report 1999 |
|
|
|
| CONTENTS |
|
|
| Board
of Directors |
|
| Ten
Year's Review |
|
| Notice
of Meeting |
|
| Directors'
Report |
|
| Pattern
of Share Holdings |
|
| Auditors'
Report |
|
| Balance Sheet |
|
| Profit
and Loss Accounts |
|
| Cash
Flow Statement |
|
| Notes
to the Accounts |
|
|
|
| BOARD
OF DIRECTORS |
|
|
| CHAIRPERSON |
Ms ZARMINE SARFARAZ |
|
|
|
|
| CHIEF
EXECUTIVE |
BEGUM ZARI SARFARAZ |
|
|
|
|
| DIRECTORS |
|
KHAN AZIZ SARFARAZ KHAN |
|
|
|
BEGUM LAILA SARFARAZ |
|
|
|
ISKANDAR M. KHAN |
|
|
|
ABDUL QADAR KHATTAK |
|
|
|
MUHAMMAD RAFIQ KHAN |
|
|
|
| SECRETARY / |
|
| CONTROLLER
FINANCE |
MALIK MOHAMMAD ASLAM,
FCMA |
|
|
|
|
| AUDITORS |
|
MESSRS HAMEED CHAUDHRI
& CO., |
|
|
|
CHARTERED ACCOUNTANTS |
|
|
|
|
| REGISTERED
OFFICE |
11, FORT ROAD, PESHAWAR
CANTT. |
|
|
|
|
| FACTORY |
|
TAKHT-I-BHAI, DISTT.
MARDAN. |
|
|
|
PHONES: 51040 - 51041 -
51049- 51051 |
|
|
|
FAX: (0931) 62815 |
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|
|
| TEN
YEARS' REVIEW |
|
|
|
CANE |
|
BEET |
|
|
| YEAR |
CANE |
RECOVERY |
SUGAR |
BEET |
RECOVERY |
SUGAR |
|
|
CRUSHED |
% |
PRODUCED |
SLICED |
% |
PRODUCED |
|
|
M. Ton |
|
M. Ton |
M. Ton |
|
M. Ton |
|
|
| 1990 |
114,623 |
9.35 |
10,727.20 |
52,910 |
8.94 |
4,734.20 |
|
|
| 1991 |
118,552 |
7.79 |
9,244.70 |
61,376 |
9.29 |
4,777.20 |
|
|
| 1992 |
134,757 |
9.68 |
13,045.00 |
59,018 |
10.17 |
6,007.00 |
|
|
| 1993 |
117,578 |
9.71 |
11,417.60 |
45,740 |
9.94 |
4,548.85 |
|
| 1994 |
76,452 |
9.83 |
7,520.25 |
38,973 |
10.32 |
4,022.95 |
|
| 1995 |
61,488 |
9.54 |
5,866.95 |
36,418 |
10.60 |
3,860.40 |
|
| 1996 |
42,640 |
8.53 |
3,640.25 |
48,264 |
10.39 |
5,016.60 |
|
| 1997 |
42,340 |
8.37 |
3,543.65 |
30,565 |
9.84 |
3,008.10 |
|
| 1998 |
62,434 |
8.48 |
5,296.90 |
26,022 |
8.64 |
2,248.40 |
|
| 1999 |
124,462 |
9.09 |
11,318.85 |
26,410 |
9.57 |
2,528.15 |
|
|
|
| NOTICE
OF MEETING |
|
|
| NOTICE
IS HEREBY GIVEN that 61st Annual General Meeting of the shareholders of The
Frontier |
|
| Sugar
Mills & Distillery Limited will be held on 31st March, 2000 at 10:00 A.M
at the Registered |
|
| Office
of the Company at 11, Fort Road, Peshawar Cantt. for transacting the
following business. |
|
|
| 1.
To confirm the minutes of the last meeting held on 27th March, 1999. |
|
|
|
|
| 2.
To receive and consider the audited Balance Sheet and Profit and Loss Account
of the |
|
| Company
together with the Directors' and Auditors' Reports for the year ended 30th |
|
| September 1999. |
|
|
|
|
|
|
| 3.
To appoint auditors for the year 1999 - 2000 and to fix their remuneration.
The outgoing |
|
| auditors,
Messrs. Hameed Chaudhri & Co., Chartered Accountants offer themselves for |
|
| re-appointment. |
|
|
|
|
| 4.
To declare dividend. |
|
|
| 5.
To transact any other ordinary business of the Company as may be permitted by
the Chair. |
|
|
| The
share transfer books of the Company will remain closed for entitlement of
dividend from 20th |
|
| March,
2000 to 30th March, 2000 (Both days inclusive). |
|
|
|
|
By order of the Board |
|
|
|
|
|
|
|
|
(MALIK MOHAMMAD ASLAM) FCMA |
|
| Peshawar:
March 01, 2000 |
|
SECRETARY |
|
|
| N.B: |
1. Member unable to
attend in person may kindly sent proxy form attached with the, balance sheet
signed and |
|
|
witnessed to the Company
at least 48 hours before the time of the meeting. No person shall act as
proxy |
|
|
unless he is entitled to
be present and vote in his own right. |
|
|
| 2.
Members are requested to notify any change in address immediately. |
|
|
|
| DIRECTORS'
REPORT |
|
|
| The
Directors have pleasure in submitting their annual report alongwith the
audited accounts of the |
|
| Company
for the year ended 30th September, 1999. |
|
|
| 1.
SUGARCANE SEASON 1998- 99 |
|
| The
sugarcane crushing season which started on 14th November, 1998 ended on 5th
April 1999, |
|
| after
crushed 124,462 tons of sugarcane and produced 11,318.85 tons of sugar having
an average |
|
| recovery
of 9.09%. The sugarcane growers supply was more then last year still much
below our |
|
| requirement
of 170,000 tons. |
|
|
| 2.
SUGARBEET SEASON 1998 - 99 |
|
| Sugarbeet
slicing season started on 17th May, 1999 and ended on 9th June, 1999. The
recovery for |
|
| the
year was low due to rains and very cold conditions during growth period. |
|
|
| 3. DISTILLERY |
|
| The
Distillery plant had been closed due to very low prices of spirit in the
local market. |
|
|
| 4. STAFF |
|
| Labour
and Management relations remained cordial during the year. All employees were
paid bonus |
|
| equivalent
to 2 ½ months salary in addition to other amenities and statutory benefits. |
|
|
| 5.
SALES TAX ON SUGAR |
|
| Sales
Tax on sugar is 15 per cent but we have to pay 3 per cent additional sales
tax as all the sugar |
|
| buyers
are unregistered. This is unfair as we have been penalized for inability of
CBR to register the |
|
| traders. |
|
|
| 6. DIVIDENDS |
|
| The
Directors recommend the payment of cash dividend @ 47.50% for the year under
review. |
|
|
| 7.
CURRENT SEASON 1999 - 2000 |
|
| The
current crushing season started on 12th November, 1999 and ended prematurely
due to non |
|
| availability
of sugarcane on 21st February, 2000 after crushing 65,512 tons sugarcane and
produced |
|
| 5,324
tons sugar at an average recovery of 8.12%. The growers were paid @ Rs. 35.00
per 40 kgs, |
|
| the
price fixed by the Government. The factory run all the time intermittently
and suffered huge |
|
| losses.
The main reason is the diversion of sugarcane to gur making by the commercial
operators. |
|
| There
is a great disparity between the sugar mills and the commercially power
crusher operators |
|
| making
gur due to the Government taxation regime. We pay Rs. 2520.00 per ton of
sugar as sales |
|
| tax
which comes to approximately Rs. 8.50 per 40 Kg of sugarcane delivered to the
factory. The road |
|
| cess
is 50 paisa per 40 Kg, i.e. a total of Rs. 9.00 goes to Government exchequers
for every maund |
|
| of
sugarcane delivered and crushed by the factory. The crusher operators pay no
taxes whatever and |
|
| thus
have a field day. They are making money at the expense of the sugar factories
and the |
|
| Government
exchequers. We have made several representations to the Government either to
impose |
|
| tax
on power crushers or sales tax be levied on gur. We hope this sacred
"cow" will be taxed and the |
|
| organised
sector will get a level playing field. |
|
|
| 8.
SUGARBEET CROP 2000 |
|
| The
area under sugarbeet crop this year is slightly more than last year and we
expect the factory will |
|
| produce
more sugar from sugarbeet than last year. |
|
|
| 9. AUDITORS |
|
| The
present auditors, Messers Hameed Chaudhri & Co., Chartered Accountants,
Lahore retire and |
|
| being
eligible offer themselves for re-appointment. |
|
|
| 10.
LISTING WITH CENTRAL DEPOSITORY COMPANY |
|
| During
the current year the Company has been listed with the C.D.C to facilitate the
share holders of |
|
| the
Company for smooth transaction of shares at Karachi and Islamabad Stock
Exchanges. |
|
|
| 11.
PATTERN OF SHAREHOLDING |
|
| Pattern
of shareholding of the Company is annexed. |
|
|
| 12.
Y2K COMPLIANCE OF COMPUTER SYSTEM |
|
| The
Company took measures to comply with the requirements of Y2K compliance of
Computer |
|
| System. |
|
|
| The
Directors appreciate the spirit of good work done by the Company's staff at
all levels. |
|
|
|
|
|
|
ON BEHALF OF THE BOARD |
|
|
|
|
|
|
|
|
(BEGUM ZARI SARFARAZ) |
|
| Peshawar:
March 01, 2000. |
|
CHIEF EXECUTIVE |
|
|
|
| FORM - 34 |
|
| THE
FRONTIER SUGAR MILLS & DISTILLERY LIMITED |
|
|
|
| PATTERN
OF HOLDINGS OF THE SHARES HELD |
|
| BY
THE SHAREHOLDERS AS ON 30TH SEPTEMBER, 1999 |
|
| BY
RANGE OF SHARES HELD |
|
|
| NUMBER OF |
RANGE OF
SHARES HELD |
SHARES HELD |
|
| SHARE |
|
|
| HOLDERS |
FROM |
TO |
PREFERENCE |
ORDINARY |
TOTAL |
|
|
|
|
| 538 |
1 |
100 |
3,090 |
10,238 |
13,328 |
|
|
| 118 |
101 |
500 |
1,490 |
32,295 |
33,785 |
|
|
| 41 |
501 |
1,000 |
460 |
28,995 |
29,455 |
|
|
| 48 |
1,001 |
5,000 |
21,980 |
107,650 |
129,630 |
|
|
| 6 |
5,001 |
10,000 |
-- |
44,601 |
44,601 |
|
|
| 2 |
15,001 |
20,000 |
-- |
37,893 |
37,893 |
|
|
| 1 |
30,001 |
35,000 |
160 |
33,096 |
33,256 |
|
|
| 1 |
1,075,001 |
1,080,000 |
22,820 |
1,055,232 |
1,078,052 |
|
|
| ------------------ |
|
------------------ |
------------------ |
------------------ |
|
|
| 755 |
|
50,000 |
1,350,000 |
1,400,000 |
|
|
| ========== |
|
========== |
========== |
========== |
|
|
|
| NUMBER OF |
|
SHARE HELD |
|
| SHARE |
CATEGORIES OF |
|
| HOLDERS |
SHAREHOLDERS |
PREF |
ORDINARY |
TOTAL |
% AGE |
|
|
|
|
| 747 |
Individuals |
|
4,880 |
285,610 |
290,490 |
20.76 |
|
|
Investment Corporation |
|
| 1 |
of Pakistan |
|
300 |
2,272 |
2,572 |
0.18 |
|
| 1 |
Financial Institution |
0 |
5,501 |
5,501 |
0.39 |
|
| 1 |
Joint Stock Companies |
22,820 |
1,055,232 |
1,078,052 |
77.00 |
|
|
OTHERS |
|
|
| 1 |
Government of NWFP |
20,000 |
0 |
20,000 |
1.43 |
|
| 1 |
Distt Council Mardan |
1,000 |
72 |
1,072 |
0.08 |
|
| 1 |
Municipal Committee |
|
|
Mardan |
|
1,000 |
73 |
1,073 |
0.08 |
|
| 1 |
Naeem's Securities Ltd. |
0 |
480 |
480 |
0.03 |
|
| 1 |
Frontier Ass. Handicap |
0 |
760 |
760 |
0.05 |
|
| ------------------ |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
| 755 |
|
|
50,000 |
1,350,000 |
1,400,000 |
100.00 |
|
| ========== |
|
|
========== |
========== |
========== |
========== |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS OF |
|
|
| We
have audited the annexed Balance Sheet of THE FRONTIER SUGAR MILLS AND |
|
| DISTILLERY
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; |
|
|
| (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 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 30 September, 1999 and of the profit and
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. |
|
|
|
|
|
HAMEED CHAUDHRI & CO., |
|
| LAHORE:
02 MARCH, 2000. |
|
CHARTERED ACCOUNTANTS. |
|
|
|
| BALANCE
SHEET AS AT 30 SEPTEMBER, 1999 |
|
|
|
|
|
1999 |
1998 |
|
|
|
Note |
Rupees |
Rupees |
|
|
|
|
|
| SHARE
CAPITAL AND RESERVES |
|
|
| Authorised
capital |
|
3.1 |
20,000,000 |
20,000,000 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| Issued,
subscribed and paid-up capital |
|
3.2 |
14,000,000 |
14,000,000 |
|
| General reserve |
|
26 |
144,000,000 |
148,000,000 |
|
| Unappropriated
profit/(Accumulated loss) |
|
|
192,868 |
(10,917,008) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
158,192,868 |
151,082,992 |
|
| LONG
TERM LOANS |
|
4 |
0 |
6,441,000 |
|
| DEFERRED
LIABILITY FOR GRATUITY |
|
|
18,477,778 |
19,801,785 |
|
|
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
|
| Current
portion of long term loans |
|
4 |
6,441,000 |
6,441,000 |
|
| Short
term finances |
|
5 |
144,504 |
34,655,429 |
|
| Creditors,
accruals and other liabilities |
|
6 |
18,290,338 |
6,380,048 |
|
| Workers'
welfare fund |
|
|
0 |
46,660 |
|
| Provision
for taxation |
|
7 |
1,752,313 |
1,767,450 |
|
| Unclaimed
dividend |
|
|
98,678 |
100,428 |
|
| Proposed
dividends |
|
|
6,482,500 |
0 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
33,209,333 |
49,391,015 |
|
| CONTINGENCIES
AND COMMITMENTS |
|
8 |
------------------ |
------------------ |
|
|
|
|
209,879,979 |
226,716,792 |
|
|
|
|
|
========== |
========== |
|
|
|
|
| FIXED
CAPITAL EXPENDITURE |
|
|
| Operating
fixed assets |
|
9 |
8,981,612 |
10,316,859 |
|
| Non-operating
fixed assets |
|
10 |
1,342,955 |
1,471,811 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
10,324,567 |
11,788,670 |
|
|
|
|
|
| INVESTMENTS |
|
11 |
4,333,680 |
3,083,580 |
|
|
|
|
|
| LONG
TERM LOANS TO |
|
|
|
| ASSOCIATED
UNDERTAKING |
|
12 |
0 |
11,000,000 |
|
| SECURITY
DEPOSITS |
|
|
56,985 |
56,985 |
|
|
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Stores
and spares |
|
13 |
22,284,255 |
16,909,238 |
|
| Stock-in-trade |
|
|
14 |
0 |
27,468,000 |
|
| Trade debtors |
|
15 |
3,912,103 |
0 |
|
| Advances,
deposits, prepayments and |
|
|
|
| other
receivables |
|
16 |
22,051,168 |
42,202,591 |
|
| Cash
and bank balances |
|
17 |
146,917,221 |
114,207,728 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
195,164,747 |
200,787,557 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
209,879,979 |
226,716,792 |
|
|
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
ABDUL QADAR KHATTAK |
|
MUHAMMAD RAFIQ KHAN |
|
BEGUM ZARI SARFARAZ |
|
|
DIRECTOR |
|
DIRECTOR |
|
CHIEF EXECUTIVE |
|
|
|
|
|
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED 30 SEPTEMBER, 1999 |
|
|
|
|
1999 |
1998 |
|
|
|
Note |
Rupees |
Rupees |
|
|
|
|
|
| SALES & Net |
|
18 |
244,806,907 |
135,775,597 |
|
| COST
OF SALES |
|
19 |
238,203,097 |
154,845,286 |
|
|
|
|
------------------ |
------------------ |
|
| GROSS
PROFIT/(LOSS) |
|
|
6,603,810 |
(19,069,689) |
|
| ADMINISTRATIVE
AND SELLING EXPENSES |
|
20 |
7,496,834 |
7,495,274 |
|
|
|
|
------------------ |
------------------ |
|
| OPERATING
LOSS |
|
|
(893,024) |
(26,564,963) |
|
| OTHER
INCOME - Net |
|
21 |
22,298,578 |
23,468,521 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
21,405,554 |
(3,096,442) |
|
|
|
|
|
|
|
|
| OTHER
CHARGES |
|
|
|
| Financial |
|
22 |
4,009,879 |
6,879,275 |
|
| Miscellaneous |
|
23 |
439,371 |
270,935 |
|
| Workers'
(profit) participation fund |
|
|
783,284 |
0 |
|
| Workers'
welfare fund (current and |
|
|
|
|
| prior
years - net) |
|
|
(128,970) |
0 |
|
| Sales
tax - prior year |
|
6.3 |
1,290,625 |
0 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
6,394,189 |
7,150,210 |
|
|
|
|
| PROFIT/(LOSS)
BEFORE TAXATION |
|
15,011,365 |
(10,246,652) |
|
|
|
|
|
| PROVISION
FOR TAXATION |
|
7 |
|
| - Current year |
|
|
1,270,000 |
1,000,000 |
|
| - Prior years |
|
|
1,418,989 |
0 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,418,989 |
1,000,000 |
|
|
|
|
|
------------------ |
------------------ |
|
| PROFIT/(LOSS)
AFTER TAXATION |
|
13,592,376 |
(11,246,652) |
|
| (ACCUMULATED
LOSS)/UNAPPROPRIATED PROFIT |
|
|
|
| -
Brought forward |
|
(10,917,008) |
329,644 |
|
|
|
------------------ |
------------------ |
|
| PROFIT/(LOSS)
AVAILABLE FOR APPROPRIATION |
|
2,675,368 |
(10,917,008) |
|
|
|
|
|
|
|
| APPROPRIATIONS: |
|
|
| Transfer
from general reserve |
|
4,000,000 |
0 |
|
| Proposed
dividends: |
|
|
|
| On
ordinary shares @ 47.5% (1998:Nil) |
|
(6,412,500) |
0 |
|
| On
preference shares @ 7% for two years (1998:Nil) |
|
(70,000) |
0 |
|
|
|
------------------ |
------------------ |
|
|
|
(2,482,500) |
0 |
|
|
|
|
------------------ |
------------------ |
|
| UNAPPROPRIATED
PROFIT/(ACCUMULATED |
|
|
| LOSS)
- Carried to Balance Sheet |
|
|
192,868 |
(10,917,008) |
|
|
|
|
========== |
========== |
|
| BASIC
EARNINGS PER SHARE |
|
24 |
10.04 |
(8.33) |
|
|
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
ABDUL QADAR KHATTAK |
|
MUHAMMAD RAFIQ KHAN |
|
BEGUM ZARI SARFARAZ |
|
|
DIRECTOR |
|
DIRECTOR |
|
CHIEF EXECUTIVE |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED 30 SEPTEMBER, 1999 |
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| NET
CASH INFLOW FROM OPERATING |
|
|
| ACTIVITIES
(note 'A') |
|
|
41,607,663 |
5,401,811 |
|
|
|
|
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
|
|
|
| Fixed
capital expenditure |
|
|
(22,450) |
0 |
|
| Long
term loans installments received-back |
|
|
|
|
| from
Associated Undertaking |
|
|
30,682,000 |
0 |
|
| Interest
on Associated Undertaking's long term loans |
|
6,321,840 |
4,438,180 |
|
| Interest
on foreign currency fixed deposits |
|
|
659,005 |
2,471,626 |
|
|
|
|
------------------ |
------------------ |
|
| NET
CASH INFLOW FROM INVESTING ACTIVITIES |
|
37,640,395 |
6,909,806 |
|
|
|
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
|
| Long
term loans repaid |
|
|
(6,441,000) |
(6,441,000) |
|
| Short
term finances - net |
|
|
(34,655,429) |
14,198,374 |
|
| Financial
charges paid |
|
|
(5,584,890) |
(6,109,224) |
|
| Dividend paid |
|
|
(1,750) |
(2,029,572) |
|
|
|
|
------------------ |
------------------ |
|
| NET
CASH (OUTFLOW) FROM FINANCING ACTIVITIES |
|
(46,683,069) |
(381,422) |
|
|
|
|
------------------ |
------------------ |
|
| NET
INCREASE IN CASH AND CASH EQUIVALENTS |
|
32,564,989 |
11,930,195 |
|
|
|
|
|
| CASH
AND CASH EQUIVALENTS |
|
|
| -
At the beginning of the year |
|
|
114,207,728 |
102,277,533 |
|
|
|
|
| CASH
AND CASH EQUIVALENTS |
|
|
------------------ |
------------------ |
|
| -
At the end of the year (note 'B') |
|
|
146,772,717 |
114,207,728 |
|
|
|
|
|
========== |
========== |
|
|
| The
annexed notes 'A' and 'B' form an integral part of this Statement. |
|
|
|
ABDUL QADAR KHATTAK |
|
MUHAMMAD RAFIQ KHAN |
|
BEGUM ZARI SARFARAZ |
|
|
DIRECTOR |
|
DIRECT |
