| Indus Dyeing & Manufacturing Company
Limited |
|
|
|
|
|
|
|
|
|
| Annual
Report 1999 |
|
|
|
|
| CHAIRMAN |
|
Mian Mohammed Ahmed |
|
|
|
|
| CHIEF
EXECUTIVE |
Mr. Shahzad Ahmed |
|
|
|
|
| DIRECTORS |
|
Mian Riaz Ahmed |
|
|
|
Mr. Naveed Ahmed |
|
|
|
Mr. Imran Ahmed |
|
|
|
Mr. Kashif Riaz |
|
|
|
Mr. Nadeem Ahmed |
|
|
|
Mr. Shafqat Masood |
|
|
|
Mrs. Farzana Munaf
(Nominee NIT) |
|
|
| CHIEF
ACCOUNTANT |
Mr. Arif Abdul Majeed |
|
|
|
|
|
|
| COMPANY
SECRETARY |
Mr. Rizwan Ahmad |
|
|
|
|
|
|
| AUDITORS |
|
M/s. Hyder Bhimji &
Co. |
|
|
|
Chartered Accountants |
|
|
|
|
|
|
| BANKERS |
|
Habib Bank Limited |
|
|
|
Industrial Development
Bank of Pakistan |
|
|
|
Habib Bank AG Zurich |
|
|
|
Soneri Bank Limited |
|
|
| REGISTERED
OFFICE |
Karachi Dock Labour Board
Bldg., |
|
|
|
5 8 West Wharf Road,
Karachi. |
|
|
|
|
| MILLS |
|
1. P/I, S.I.T.E,
Hyderabad. |
|
|
|
2. Muzaffargarh Dist.,
Multan. |
|
|
| TELEX |
|
29609 Jet PK |
|
|
|
|
| TELEFAX |
|
1. 231 3814 |
|
|
|
2. 231 0760 |
|
|
|
| TELEPHONE |
|
1. 111-404-404 |
|
|
2. 231(1751 (7 Lines) |
|
|
| e-mail |
|
indus@paknet3.ptc.pk |
|
|
|
| NOTICE
OF THE ANNUAL GENERAL MEETING |
|
|
|
| Notice
is hereby given that the 42nd Annual General Meeting of Indus Dyeing &
Mfg Co. |
|
| Limited
will be held at Plot No. 3 & 7, Sector No. 25, Korangi Industrial Area,
Karachi on |
|
| Thursday,
March 30, 2000 at 5:00 pm. to transact the following business: |
|
|
| ORDINARY
BUSINESS |
|
|
| 1.
To confirm the minutes of Annual General Meeting held on March 27, 1999. |
|
|
| 2.
To receive, consider and adopt the audited accounts together with the
Directors' and |
|
| Auditors'
report for the year ended September 30, 1999. |
|
|
| 3.
To appoint auditors and fix their remuneration. The present auditors Messrs
Hyder |
|
| Bhimji
& Co., Chartered Accountants, retire and being eligible offer themselves
for |
|
| re-appointment. |
|
|
| 4.
To approve 10 % cash dividend as recommended by the Board of directors. |
|
|
| SPECIAL
BUSINESS |
|
|
| 5.
To enhance the remuneration of the Chairman, Chief Executive and two
Directors |
|
| namely,
Mian -Riaz Ahmed and Mr. Imran Ahmed. |
|
|
| 6.
To consider the dis-investment of 2 (Million) shares of Sunrays Textile Mills
Ltd. |
|
|
| 7.
To transact any other business with the permission of the chair. |
|
|
|
|
|
|
BY ORDER OF THE BOARD |
|
|
|
|
|
|
| Sd/- |
|
|
|
|
|
| Karachi |
|
|
|
RIZWAN AH MAD |
|
| March 09, 2000 |
|
|
COMPANY SECRETARY |
|
|
|
| STATEMENT
UNDER SECTION 160 OF THE COMPANIES ORDINANCE, 1984 |
|
|
|
| ITEM
5 OF THE AGENDA |
|
| Due
to increase in the cost of living during the years, the enhancement in the |
|
| remuneration
from Rs.25,000/- per month to Rs. 50,000/- per month of Mian Muhammad |
|
| Ahmed,
Chairman; Mr. Shahzad Ahmed, Chief Executive, Mian Riaz Ahmed and Mr. |
|
| Imran
Ahmed, directors of the Company is inevitable. The said remuneration is in |
|
| addition
to the Company maintained car; medical expenses; residential utilities, |
|
| recreational
and telephone expenses. Approval on the matter is sought by passing the |
|
| following
resolution: |
|
|
| "Resolved
that, a sum of Rs. 50,000/- per month each be and is hereby approved as a |
|
| remuneration
of Mian Muhammad Ahmed, Chairman; Mr. Shahzad Ahmed, Chief |
|
| Executive;
Mian Riaz Ahmed and Mr. lmran Ahmed Directors of the Company with |
|
| effect
from April 2000 in addition to the Company maintained car; medical expenses: |
|
| residential
utilities, recreational and telephone expenses." |
|
|
| The
directors are interested to realize the investment of Sunrays Textile Mills
Ltd., in |
|
| order
to improve their liquidity position to meet the BMR expenses. |
|
|
| Your
Directors are pleased to present the audited accounts for the year ended
September 30, 1999. |
|
| During
the year under review, your Company earned a profit of Rs. 34.067 (M), The
financial results of the |
|
| Company
remain satisfactory. Brief summary of financial results of the year under
review is as under: |
|
|
|
Rs. '000 |
|
|
| Profit
for the year before taxation |
|
|
34,067 |
|
| Provision
for taxation |
(Prior) |
|
(1,500) |
|
| Provision
for taxation |
(Current) |
|
(12,500) |
|
| Deferred |
|
|
|
(l,000) |
|
| Profit
after taxation |
|
|
19,067 |
|
| Unappropriated
profit brought forward |
|
39,397 |
|
| Profit
available for appropriation |
|
|
58,464 |
|
| Proposed
Cash Dividend |
|
|
(10,111) |
|
| Unappropriated
profit Carried forward |
|
48,353 |
|
|
| The
Earning per share is Re.0.94 (Par value Rs. 5/- per share.) |
|
|
| PRESENT
YEAR ASSESSMENT |
|
| The
present year results are satisfactory and the profit increased as compare to
previous year. Due to |
|
| better
profit your directors are pleased to announce 10 per cent cash dividend for
the year. |
|
|
| The
auditors in their report qualified on the matter of sales shown as net of
ocean freight. Your Directors |
|
| feel
that it is necessary to arrive at a true profit on export and local sales. |
|
|
| FUTURE
PROSPECTS |
|
| We
hope that your Company will earn handsome profits in the next financial year
as we are |
|
| continuously
struggling to capture new markets for our product. |
|
|
| PRODUCTION |
|
| The
Production for the year under review was satisfactory both at Hyderabad and
Muzaffargarh units. |
|
|
| LABOUR
/ MANAGEMENT |
|
| The
Labour / Management relations remained cordial throughout the year. Your
Company is providing |
|
| various
facilities and amenities to the workers. |
|
|
| PATTERN
OF SHAREHOLDING |
|
| The
Pattern of Shareholding is annexed. |
|
|
| THANKS
AND APPRECIATION |
|
| Your
Directors feel pleasure in expressing the-highly dedicated services rendered
by the employees of |
|
| the
Company. We also wish to convey our thanks/appreciation to the Company's
bankers for their co- |
|
| operation
and support extended to the Company. |
|
|
|
|
|
|
|
|
FOR AND ON BEHALF OF THE BOARD |
|
| KARACHI |
|
|
SHAHZAD AHMED |
|
| MARCH 08, 2000 |
|
CHIEF EXECUTIVE |
|
|
|
|
|
|
|
| AUDITOR'S
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed Balance Sheet of INDUS DYEING & MANUFACTURING |
|
| COMPANY
LIMITED, as at September 30, 1999 and related Profit and Loss Account and |
|
| Statement
of Changes in Financial Position (Cash Flow Statement) together with the
Notes forming |
|
| part
thereof, for the year then ended and we state that we have obtained all the
information and |
|
| explanations
which to the best of our knowledge and belief were necessary for the purpose
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 Companies Ordinance, 1984, except for reflection of
sales not |
|
| of
ocean freight on sales which is against the disclosure requirement of Fourth
Schedule to |
|
| the
Companies Ordinance, 1984, and general practice of treating ocean freight as
selling |
|
| expense,
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, investment 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 profit and the changes in financial position for 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. |
|
|
|
HYDER BHIMJI & CO. |
|
| KARACHI:
the 8th, March, 2000. |
|
CHARTERED ACCOUNTANTS |
|
|
|
|
| BALANCE
SHEET AS AT 30TH SEPTEMBER 1999 |
|
|
|
|
|
|
|
NOTES |
1999 |
1998 |
|
|
|
|
(Rupees) |
(Rupees) |
|
|
|
|
| CAPITAL
AND RESERVES |
|
|
|
| Share Capital |
|
|
|
| Authorised |
|
3 |
120,000,000 |
120,000,000 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| Issued,
Subscribed and paid- up Capital |
|
4 |
101,110,000 |
101,110,000 |
|
|
|
|
|
|
|
| General Reserve |
|
5 |
64,889,000 |
75,000,000 |
|
| Un-appropriated
Profit |
|
|
48,352,510 |
39,396,653 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
214,351,510 |
215,506,653 |
|
|
|
|
| Long
Term Loans |
|
6 |
228,806,425 |
229,068,681 |
|
| Liabilities
Against Assets |
|
|
|
|
|
| Subject
to Finance Lease |
|
7 |
43,095,028 |
19,633,235 |
|
|
|
|
|
|
| Deferred
Liabilities |
|
8 |
11,500,000 |
9,000,000 |
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
| Short
Term Running Finance (Utilized |
|
|
|
| Under
Mark-up Arrangements) |
|
9 |
556,032,785 |
478,887,274 |
|
| Current
Portion Of Redeemable Capital |
|
|
-- |
750,000 |
|
| Current
Portion Of Long Term Loans |
|
10 |
2,773,498 |
51,202,263 |
|
| Current
Portion of Liabilities Against |
|
|
|
|
| Assets
Subject to Finance Lease |
|
11 |
27,781,722 |
17,284,493 |
|
| Creditors,
Accrued and Other |
|
|
|
|
| Liabilities |
|
12 |
144,330,466 |
131,451,733 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
730,918,471 |
679,575,763 |
|
|
|
|
------------------ |
------------------ |
|
| Total Rupees |
|
|
1,228,671,434 |
1,152,784,332 |
|
|
|
|
|
========== |
========== |
|
|
|
|
| TANGIBLE
FIXED ASSETS |
|
|
|
| Operating
Fixed Assets |
|
13 |
483,569,651 |
433,844,066 |
|
| Capital
work in Progress |
|
|
-- |
30,910,349 |
|
| Long
Term Deposits |
|
14 |
2,962,596 |
3,145,176 |
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Stores,
Spares and Loose Tools |
|
15 |
17,130,180 |
24,291 |
|
| Stock-in-Trade |
|
16 |
330,498,741 |
206,820,172 |
|
| Trade Debts |
|
17 |
174,250,987 |
305,506,309 |
|
| Loans
and Advances |
|
18 |
57,420,293 |
96,194,546 |
|
| Deposits
and Pre-payments |
|
19 |
68,075,419 |
4,973,519 |
|
| Other
Receivables |
|
20 |
10,799,276 |
8,017,974 |
|
| Short
Term Investments |
|
21 |
20,009,700 |
20,009,700 |
|
| Cash
and Bank Balances |
|
22 |
63,954,591 |
19,071,347 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
742,139,187 |
684,884,741 |
|
|
|
|
------------------ |
------------------ |
|
| Total Rupees |
|
|
1,228,671,434 |
1,152,784,332 |
|
|
|
|
========== |
========== |
|
|
| Note:
The annexed notes form an integral part of these accounts. |
|
|
|
|
MIAN MUHAMMAD AHMAD |
|
SHAHZAD AHMAD |
|
|
Chairman |
|
Chief Executive |
|
|
| KARACHI:
the 8th, March, 2000. |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED 30TH SEPTEMBER 1999 |
|
|
|
|
|
NOTES |
1999 |
1998 |
|
|
|
|
(Rupees) |
(Rupees) |
|
|
|
|
| SALES (Net) |
|
|
23 |
1,933,821,754 |
1,562,336,800 |
|
| Cost of Sales |
|
24 |
(1,709,572,682) |
(1,334,933,751) |
|
|
|
|
|
|
------------------ |
------------------ |
|
| Gross Profit |
|
|
224,249,072 |
227,403,049 |
|
|
|
|
|
| OPERATING
EXPENSES |
|
|
|
|
| Administrative |
|
25 |
(27,173,049) |
(23,468,692) |
|
| Selling
& Distribution |
|
26 |
(39,016,095) |
(38,399,284) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(66,189,144) |
(61,867,976) |
|
| Other Income |
|
27 |
802,755 |
2,023,491 |
|
|
|
|
|
| Financial
Charges |
|
28 |
(123,870,192) |
(133,937,103) |
|
| Other Charges |
|
29 |
(1,732,600) |
(1,742,100) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(125,602,792) |
(135,679,203) |
|
|
|
|
------------------ |
------------------ |
|
| Operating
Profit |
|
|
33,259,891 |
31,879,361 |
|
| Operating-Profit
Ginning Factory |
|
30 |
226,405 |
220,000 |
|
| Operating
Profit Ice Factory |
|
31 |
513,005 |
710,066 |
|
| Hong
Kong Office Profit |
|
32 |
67,556 |
93,064 |
|
|
|
|
------------------ |
------------------ |
|
| Net
Profit Before Taxation |
|
|
34,066,857 |
32,902,401 |
|
| Tax
Provision (Current) |
|
|
(12,500,000) |
(9,500,000) |
|
| Tax
Provision (Prior) |
|
|
(1,500,000) |
(5,500,000) |
|
| Deferred |
|
|
(1,000,000) |
-- |
|
|
|
|
------------------ |
------------------ |
|
| Profit
after taxation |
|
|
19,066,857 |
17,902,491 |
|
| Un-appropriated
Profit Brought Forward |
|
|
39,396,653 |
46,494,162 |
|
|
|
|
------------------ |
------------------ |
|
| Profit
available for Appropriation |
|
|
58,463,510 |
64,396,653 |
|
| Transferred
to General Reserve |
|
|
-- |
(25,000,000) |
|
| Proposed
Cash Dividend |
|
|
(10,111,000) |
-- |
|
|
|
|
------------------ |
------------------ |
|
| Un-appropriated
Profit Carried Forward |
|
|
48,352,510 |
39,396,653 |
|
|
|
|
========== |
========== |
|
|
| NOTE:
The annexed notes form an integral part of these accounts. |
|
|
|
MIAN MUHAMMAD AHMAD |
|
SHAHZAD AHMAD |
|
|
Chairman |
|
Chief Executive |
|
|
| KARACHI:
the 8th, March, 2000. |
|
|
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
|
| (CASH
FLOW STATEMENT) |
|
| FOR
THE YEAR ENDED 30TH SEPTEMBER 1999 |
|
|
|
|
1999 |
1998 |
|
|
NOTES |
(Rupees) |
(Rupees) |
|
|
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
| Cash
Generated from Operations |
|
A |
222,112,039 |
(79,141,965) |
|
| Financial
Charges Paid |
|
(139,077,709) |
(111,351,863) |
|
| Taxes Paid |
|
(29,968,653) |
(24,211,730) |
|
| Long
Term Deposits & Prepayments |
|
182,580 |
(693,408) |
|
| Net Cash Inflow |
|
------------------ |
------------------ |
|
| from
Operating Activities |
|
53,248,257 |
(215,398,966) |
|
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
|
| Fixed
Capital Expenditure |
|
|
|
(95,901,394) |
(77,036,529) |
|
| Capital
work in progress |
|
|
|
30,910,349 |
(29,074,955) |
|
| Sales
Proceed of Fixed Assets |
|
|
|
244,860 |
625,000 |
|
|
|
|
|
|
------------------ |
------------------ |
|
| Net
Cash (Outflow) from Investing Activities |
|
|
(64,746,185) |
(105,486,484) |
|
|
|
|
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
|
| Long
Term Borrowing Less Repayment |
|
|
(49,441,021) |
104,779,308 |
|
| Payment
of Dividend |
|
(5,282,340) |
-- |
|
| Received
Against Right Shares |
|
|
-- |
9,580,480 |
|
| (Repayment)/Borrowing
of Liabilities against |
|
|
33,959,022 |
(2,559,565) |
|
| assets
subject to Finance Lease |
|
|
------------------ |
------------------ |
|
| Net
Cash Inflow/(Outflow) from Financing Activities |
|
(20,764,339) |
111,800,223 |
|
|
|
|
------------------ |
------------------ |
|
| Net
(Decrease)/Increase in cash & cash equivalent |
|
|
(32,262,267) |
(209,085,227) |
|
| Cash
& Cash Equivalent at beginning of the year |
|
|
(459,815,927) |
(250,730,700) |
|
|
|
|
------------------ |
------------------ |
|
| Cash
& Cash Equivalent at end of the year |
|
B |
(492,078,194) |
(459,815,927) |
|
|
|
|
========== |
========== |
|
|
|
| A.
CASH GENERATED FROM OPERATION |
|
|
| Profit
before taxation |
|
|
34,066,857 |
32,902,490 |
|
| Adjustment
for Depreciation |
|
|
45,961,248 |
27,733,925 |
|
| Gratuity |
|
|
|
1,500,000 |
1,500,000 |
|
| Profit
on sale of fixed assets |
|
|
(52,438) |
(453,853) |
|
| Financial
Charges |
|
|
123,870,192 |
133,937,103 |
|
| Working
Capital changes |
|
A(1) |
16,766,180 |
(274,761,630) |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
222,112,039 |
(79,141,965) |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
| A(1)
WORKING CAPITAL CHANGES |
|
|
| (Increase)
/ Decrease in Current Assets |
|
|
| Store
and Spares |
|
|
7,160,994 |
(7,487,537) |
|
| Stock-in-Trade |
|
|
|
(123,678,569) |
(120,251,706) |
|
| Trade Debts |
|
|
|
131,255,322 |
(148,057,832) |
|
| Loans
and Advances |
|
|
49,287,638 |
2,643,692 |
|
| Deposits
and Prepayments |
|
|
(63,101,900) |
26,113 |
2 |
|
| Other
Receivables |
|
|
2,696,105 |
271,837 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
3,619,590 |
(272,855,433) |
|
| (Decrease)/Increase
in Current Liabilities |
|
|
|
|
| Creditors,
accrued & other liabilities (Net) |
|
13,146,590 |
(1,906,197) |
|
|
|
|
------------------ |
------------------ |
|
|
|
16,766,180 |
(274,761,630) |
|
|
|
========== |
========== |
|
|
|
|
| B.
CASH & CASH EQUIVALENTS |
|
|
| Cash
& Cash Equivalents comprise of the following |
|
| Items
as included in the Balance Sheet |
|
|
|
| Cash
and Bank Balances |
|
|
|
63,954,591 |
19,071,347 |
|
| Short
Term running Finance utilised under |
|
|
|
| mark-up
arrangements |
|
|
|
(556,032,785) |
(478,887,274) |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
|
(492,078,194) |
(459,815,927) |
|
|
|
|
|
========== |
========== |
|
|
|
MIAN MUHAMMAD AHMAD |
|
SHAHZAD AHMAD |
|
|
Chairman |
|
Chief Executive |
|
|
| KARACHI:
the 8th, March, 2000. |
|
|
|
| NOTES
TO THE ACCOUNTS |
|
| FOR
THE YEAR ENDED 30TH SEPTEMBER, 1999 |
|
|
| 1.
STATUS AND NATURE OF BUSINESS: |
|
| The
company was incorporated in Pakistan on 23rd July, 1957 as a Public Limited |
|
| Company
and its shares are quoted in Karachi Stock Exchange. The principal activity |
|
| of
the company is to manufacture and sale of yarn. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES: |
|
|
|
| 2.1
Accounting Convention: |
|
| These
accounts have been prepared under the historical cost convention, |
|
| Modification,
there to if any, are stated. |
|
|
| 2.2
Foreign Currency Conversion: |
|
| Liabilities
in foreign currency are converted into Pak Rupees at the rate of |
|
| exchange
prevailing at the balance sheet date, gain or losses on conversion of |
|
| foreign
currency loan are adjusted to the cost of assets acquired under such loan |
|
| where
as other exchange differences are included in income currently. |
|
|
| The
provision for current taxation is based on taxable income at the current
rates |
|
| of
taxation after considering admissible tax, credits and rebates, if any. The |
|
| company
accounts for deferred taxation arising on all major timing differences by |
|
| using
the liability method. However the deferred tax is not fully provided as the |
|
| timing
difference are not likely to reverse in the foreseeable future. |
|
|
| 2.4 Gratuity: |
|
| The
company operates an unfunded gratuity scheme covering all its employees |
|
| eligible
to the benefit. Current year's liability is being provided currently. |
|
|
| 2.5
Fixed Assets: |
|
| Fixed
Assets owned by company are stated at cost less accumulated depreciation |
|
