| Al-Qaim Textile Mills Limited |
|
|
|
|
|
|
|
| Annual
Report 1999 |
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|
|
| CONTENTS |
|
|
| Company
Information |
|
| Notice
of Meeting |
|
| Directors'
Report |
|
| Pattern
of Share Holding |
|
| Auditors'
Report |
|
| Balance Sheet |
|
|
| Profit
and Loss Account |
|
| Cash
Flow Statement |
|
| Notes
to the Accounts |
|
|
|
|
|
| Company
Information |
|
|
| Board
of Directors |
|
| Haji
Ashiq Hussain |
(Chairman) |
|
| Muhammad Ali |
|
(Chief Executive) |
|
| Haji
Ghulam Hussain |
(Director |
|
| Shaukat
Mehmood |
(Director |
|
| Naeem Mustafa |
|
(Director |
|
| Mst.
Naseem Begum |
(Director |
|
| Mst.
Anayat Begum |
(Director |
|
| Wasooq Khalili |
|
(Director |
|
|
| Secretary |
|
| Syed
Sarfraz Habib |
|
|
| Auditors |
|
| Sarwar
Awan & Co. |
Registered Office |
|
| Chartered
accountants, |
Awan House, Faisal
Colony, |
|
| 23-Jail
Road, Lahore. |
Talagang Road, Chakwal |
|
|
| Bankers |
|
Head Office & Mill |
|
| Habib Bank Ltd. |
|
25- Kilometer, |
|
| United
Bank Ltd. |
Talagang Road, Chakwal, |
|
| Muslim
Commercial Bank Ltd. |
|
| National
Bank of Pakistan |
Shares Department |
|
| The
Bank of Punjab |
Yours Secretary |
|
|
1020, Uni Plaza |
|
|
I.I. Chundrigar Road, |
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|
Karachi. |
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|
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| NOTICE
OF MEETING |
|
|
| Notice
is hereby given that 13th Annual General Meeting of AL-QAIM TEXTILE |
|
| MILLS
LIMITED will be held at Mill site, 25 KM, Talagang Road, Chakwal, on Friday |
|
| the
March 31,2000 at 11.00 AM to conduct the following business. |
|
|
| To
recite the Holy Quran and read out its translation |
|
|
| 1.
To confirm the meeting of the last Annual General Meeting held on 25th March
1999. |
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|
|
|
| 2.
To receive consider and adopt the accounts of the company for the financial
year |
|
| ended
30th September, 1999 together with the auditors report thereon. |
|
|
| 3.
To appoint Auditors for the year ended 30th September 1999 and fix their |
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| remuneration |
|
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| A
notice under section 253(1) of the Companies Ordinance, 1984 has been
received |
|
| from
a member of the company proposing the name of M/S S. Zafar Shah Naveed |
|
| Imran
8,: Co. Chartered Accountants for appoint as auditors of the company for the |
|
| ending
September 30, 2000. |
|
|
|
|
| 4.
To transact any other lawful business with the permission of the chair. |
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|
|
|
|
|
By Order of the Board. |
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|
|
|
|
|
|
| Chakwal |
|
|
|
Muhammad Ali Awan |
|
| 10th March 2000 |
|
|
|
(Chief Executive) |
|
|
| NOTES: |
|
|
| a)
The share transfer of the company shall remain closed from March 24th 2000 to
April |
|
| 01,
2000 ( Both days inclusive). |
|
|
| b)
A member entitled to attend and vote at this meeting may appoint another
member as |
|
| him/Proxy
to attend and vote instead of him/her. Proxy in order to be effective must |
|
| be
deposited at the Registered Office of the company not later than 48 hours
before |
|
| the meeting. |
|
|
| c)
Shareholders are requested to promptly notify the change of address if any
change in |
|
| their address. |
|
|
|
| Directors'
Report to the Shareholders |
|
|
| We
are pleased to present before you the 13th Audited Annual Report of the
company for the |
|
| year
ended September 30, 1999. |
|
|
| PRODUCTION
PERFORMANCE |
|
| During
the year under review working of the mill is excellent. The mill operated at
full capacity |
|
| thus
making production of 2,170,895 Kgs of blended yarn of different count. The
count |
|
| manufactured
during the year ranges between 10/s to 38/s. The production level are
continuously |
|
| maintained
and quality yarn is produced to meet the market requirements thus trying to
fetch the |
|
| highest
possible market price. |
|
|
| FINANCIAL
RESULTS |
|
| During
the year under review yarn sale is of Rs. 182,658,964/- as against sale of
Rs. |
|
| 203,518,336/-
during the previous year. The reason for this decline in revenue is mainly
due to |
|
| recession
in the yarn market through out the year. The textile sector in general and
spinning |
|
| sector
in particular are suffering badly for the last seven years due to prevalent
market condition. |
|
|
| The
summary of financial result is as under:- |
|
|
|
|
|
|
YEAR ENDED |
YEAR ENDED |
|
|
|
|
|
30-09-1999 |
30-09-1999 |
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| Gross Profit |
|
|
|
6,760,225 |
2,969,842 |
|
| Operating
expenses |
|
|
|
3,510,279 |
2,491,942 |
|
| Operating profit |
|
|
|
3,249,945 |
477,900 |
|
| Financial
expenses |
|
|
|
15,343,930 |
15,803,926 |
|
| Net
Loss before taxation |
|
|
|
(12,093,985) |
(15,326,026) |
|
| Provision
for taxation |
|
|
|
913,295 |
1,726,380 |
|
| Net
loss after taxation |
|
|
|
(13,007,279) |
(17,054,406) |
|
| Prior
year adjustment |
|
|
|
-- |
25,227,070 |
|
| Net
profit/(1oss) after prior year adjustment |
|
|
(13,007,279) |
8,172,664 |
|
|
|
|
|
|
| EARNING
PER SHARE |
|
|
|
(1.75) |
1.10 |
|
|
|
|
|
| OVERVIEW |
|
| The
industrial growth has come to standstill position. There is recession in the
whole local |
|
| market
due to conditions prevailing in the international market for the last many
years. This |
|
| unusual
economic phenomenon has badly affected all sectors of industrial activities
in general |
|
| and
spinning sector in particular. The revival of textile sector largely depends
upon the |
|
| improvement
in economic condition as a whole, which will definitely benefit the spinning
sector. |
|
|
| FUTURE
OUTLOOK |
|
| At
present the country's economy is showing the sign of improvement. Right steps
has been |
|
| taken
to increase the industrial growth like decrease in mark-up rate charged by
the banks. |
|
| Increase
in export of the country, which will benefit the local market. This year the
country has |
|
| bumper
crop of cotton and it is estimated that the cotton bales will be well over
10.00 million |
|
| bales.
These among other steps will benefit the spinning sector. |
|
|
| Further
we are concentrating in cutting our expenses and further improving our yarn
quality of |
|
| yarn.
This results in improved gross profit rate and reduction in loss after
taxation. We have paid |
|
| back
loans from Bankers Equity Limited in February 2000 and by the grace of God we
are |
|
| regularly
paying our installments to Habib Bank Limited. This will results in reduction
of |
|
| financial
charges in future thus improving our results. |
|
|
| YEAR
2000 COMPLIANCE |
|
| We
are pleased to report that all the computers of your company are fully year
2000 complaint. |
|
|
| AUDITORS |
|
| 1.
The present auditors M/S Sarwar Awan & Co., Chartered Accountants retire.
A notice |
|
| under
section 253(1) of the Companies Ordinance, 1984 has been received from a |
|
| member
of the company proposing the name of M/S S. Zafar Shah Naveed Imran & |
|
| Co.
Chartered Accountants for appoint as auditors of the company for the year
ending |
|
| September
30, 2000. |
|
|
|
| PATTERN
OF SHAREHOLDING |
|
| Pattern
of share holding of the company is annexed. |
|
|
| ACKNOWLEDGMENT |
|
| The
management is thankful and wishes to place on record its deep appreciation
for the hard wok |
|
| and
positive efforts by the workers and staff. Special thanks is also due to our
valued Customers, |
|
| Financial
Institutions and shareholders for their whole hearted support and hopes to
get the same |
|
| co-operation
in future. |
|
|
|
|
|
|
On behalf of the Board |
|
|
|
|
|
|
| Chakwal |
|
|
(MUHAMMAD ALI AWAN) |
|
| Dated:
19-02-2000 |
|
|
Chief Executive |
|
|
|
| Pattern
of Share holding |
|
| As
at 30 September, 1999 |
|
|
| No. of |
Having Shares |
To |
Shares |
Percentage |
|
| Shareholders |
From |
|
Held |
|
|
|
| 24 |
1 |
100 |
2,400 |
0.0322 |
|
| 4082 |
101 |
500 |
2,002,300 |
27.1340 |
|
| 41 |
501 |
1000 |
40,000 |
0.5367 |
|
| 32 |
1,001 |
5000 |
81,300 |
1.0908 |
|
| 11 |
5,001 |
10,000 |
85,500 |
1.1472 |
|
| 2 |
10,001 |
15,000 |
25,200 |
0.3381 |
|
| 1 |
15,001 |
20,000 |
16,300 |
0.2187 |
|
| 2 |
220,001 |
225,000 |
447,180 |
6.0000 |
|
| 1 |
335,001 |
340,000 |
339,200 |
4.5512 |
|
| 1 |
405,001 |
410,000 |
410,000 |
5.5011 |
|
| 1 |
445,001 |
450,000 |
447,180 |
6.0000 |
|
| 2 |
480,001 |
485,000 |
969,890 |
13.0134 |
|
| 1 |
705,001 |
710,000 |
707,200 |
9.4888 |
|
| 1 |
745,001 |
750,000 |
745,300 |
10.0000 |
|
| 1 |
1,110,001 |
1,115,000 |
1,114,050 |
14.9478 |
|
| ------------------ |
|
------------------ |
------------------ |
|
| 4,203 |
|
7,453,000 |
100.0000 |
|
| ========== |
|
========== |
========== |
|
|
| Categories
of Shareholders |
|
|
| Particular |
|
Shareholders |
Share holding |
Percentage |
|
|
| Individuals |
|
4,199 |
6,700,000 |
89.8967 |
|
| Investment
Company |
2 |
7,200 |
0.0966 |
|
| Joint Stock |
|
1 |
500 |
0.0067 |
|
| Company |
|
|
|
| Financial
Institution |
1 |
745,300 |
10.0000 |
|
|
|
------------------ |
------------------ |
------------------ |
|
|
|
4,203 |
7,453,000 |
100.0000 |
|
|
|
========== |
========== |
========== |
|
|
|
|
|
|
|
| AUDITOR'S
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed Balance Sheet of M/S Al-QAIM TEXTILE |
|
| MILLS
LIMITED as at September 30, 1999 and the related profit & 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 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 notes there on
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 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 cash flow for the year then ended; and |
|
|
| d)
in our opinion. no Zakat was deductible at source under the Zakat and Ushr |
|
| Ordinance, 1980. |
|
|
| LAHORE: |
|
|
SARWAR AWAN & CO |
|
| DATED
07-03-2000 |
|
Chartered Accountants.. |
|
|
|
| BALANCE
SHEET AS AT SEPTEMBER 30, 1999 |
|
|
|
|
Note |
1999 |
1998 |
|
|
|
(Rupees) |
(Rupees) |
|
| CAPITAL
AND RESERVES |
|
|
|
|
|
| Share capital |
|
3 |
74,530,000 |
74,530,000 |
|
| Accumulated
loss |
|
|
(206,892,554) |
(193,885,274) |
|
| Surplus
on revaluation of fixed assets |
|
4 |
250,060,987 |
250,060,987 |
|
| Reserves
on redemption of loans |
|
|
4,248,054 |
4,248,054 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
121,946.49 |
134,953,767 |
|
|
|
|
|
|
| REDEEMABLE
CAPITAL, LONG-TERM |
|
|
|
| AND
DEFERRED LIABILITIES |
|
|
|
|
| Long term loans |
|
5 |
116,374,790 |
131,704.20 |
|
| Directors loan |
|
6 |
21,430,640 |
21,430,640 |
|
| Deferred
liabilities |
|
7 |
35,649,114 |
41,543,299 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
173,454,543 |
194,678,139 |
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
| Short
term borrowings |
|
8 |
-- |
527.70 |
|
| Current
portion and overdue of long term |
|
|
|
|
| liabilities |
|
9 |
23,128.57 |
14,327.67 |
|
| Creditors
and accrued liabilities |
|
10 |
44,212,656 |
9,958,946 |
|
| Provision
for taxation |
|
|
2,893,128 |
2,848,495 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
70,234,351 |
27,662,811 |
|
| CONTINGENCIES
AND COMMITMENTS |
|
11 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
365,635,382 |
357,294,717 |
|
|
|
|
|
|
========== |
========== |
|
|
|
|
| FIXED
CAPITAL EXPENDITURE |
|
| Operating
fixed assets |
|
12 |
337,842,027 |
347,016,391 |
|
|
|
|
| LONG
TERM DEPOSITS AND DEFERRED COST |
|
|
| Security
deposits |
|
|
196,800 |
196,800 |
|
| Deferred costs |
|
|
400,000 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
596,800 |
196,800 |
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Stores
and spares |
|
13 |
2,749,262 |
2,415,923 |
|
| Stock in trade |
|
14 |
20,376,440 |
5,359,125 |
|
| Trade debts |
|
15 |
321,761 |
387,651 |
|
| Loans
and advances |
|
16 |
842,350 |
912,944 |
|
| Deposits,
prepayments and other |
|
|
|
| receivables |
|
17 |
1,527,610 |
728,517 |
|
| Cash
and bank balances |
|
18 |
1,379,132 |
277,366 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
27,196,555 |
10,081,526 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
365,635,382 |
357,294,717 |
|
|
|
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts |
|
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 1999 |
|
|
|
|
Note |
1999 |
1998 |
|
|
|
|
(Rupees) |
(Rupees) |
|
|
|
|
| SALES |
|
19 |
182,658,964 |
203,518,336 |
|
| COST
OF SALES |
|
20 |
175,898,740 |
200,548,494 |
|
|
|
|
------------------ |
------------------ |
|
| GROSS
PROFIT |
|
|
6,760,224 |
2,969,842 |
|
|
|
|
| OPERATING
EXPENSES |
|
|
|
|
| Administrative |
|
|
21 |
3,330,279 |
2,311,942 |
|
| Selling |
|
|
|
22 |
180000 |
180,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
3,510,279 |
2,491,942 |
|
| OPERATING
PROFIT |
|
|
|
|
|
|
| NET
LOSS BEFORE TAXATION |
|
|
(12,093,985) |
(15,326,026) |
|
| Taxation |
|
|
|
24 |
913,295 |
1,728,380 |
|
|
|
|
|
|
------------------ |
------------------ |
|
| NET
LOSS AFTER TAXATION |
|
|
|
(13,007,280) |
(17,054,406) |
|
| PRIOR
YEAR ADJUSTMENT |
|
|
|
-- |
25,227,070 |
|
|
|
|
|
------------------ |
------------------ |
|
| NET
PROFIT/(LOSS) AFTER PRIOR YEAR |
|
|
|
| ADJUSTMENT |
|
|
|
(13,007,280) |
8,172,664 |
|
| ACCUMULATED
LOSS BROUGHT FORWARD |
|
|
(193,885,274) |
(202,057,938) |
|
|
|
|
|
------------------ |
------------------ |
|
| ACCUMULATED
LOSS CARRIED FORWARD |
|
|
(206,892,554) |
(193,885,274) |
|
|
|
|
========== |
========== |
|
|
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 1999 |
|
|
|
|
1999 |
1998 |
|
|
|
|
(Rupees) |
(Rupees) |
|
| A.
CASH FLOW FROM OPERATING ACTIVITIES |
|
| Net
loss before taxation |
|
(12,093,985) |
(15,326,026) |
|
|
|
|
| ADJUSTMENT
FOR NON CASH CHARGES |
|
|
|
|
| Depreciation |
|
|
9,591,213 |
10,612,027 |
|
| Prior
year adjustment |
|
|
-- |
-- |
|
| Deferred
cost written off |
|
|
100,000 |
-- |
|
|
|
|
------------------ |
------------------ |
|
| Cash
flow from operating activities |
|
|
| before
adjustment of working capital |
|
|
(2,402,772) |
(4,713,999) |
|
|
|
|
|
|
| Taxation |
|
868,662 |
413,549 |
|
|
|
------------------ |
------------------ |
|
|
|
|
(3,271,434) |
(5,127,548) |
|
|
|
|
| Movement
of working capital |
|
|
|
| (Increase)/Decrease
in current assets |
|
|
| Stores
and space |
|
(333,339) |
(703,818) |
|
| Stock in trade |
|
(15,017,315) |
2,151,126 |
|
| Trade debts |
|
65,890 |
-- |
|
| Loans
and advances |
|
70,594 |
(365,191) |
|
| Deposits,
prepayments and other |
|
|
|
| receivables |
|
(799,093) |
65,673 |
|
|
|
------------------ |
------------------ |
|
|
|
(16,013,263) |
1,147,790 |
|
|
|
|
| Increase
/ (Decrease) in current liabilities |
|
|
| Short
term borrowings |
|
(527,698) |
(1,272,302) |
|
| Borrowing
from directors |
|
|
-- |
5,743,893 |
|
| Creditors,
accrued and other liabilities |
|
34,253,710 |
1,653,790 |
|
|
|
------------------ |
------------------ |
|
|
|
33,726,012 |
6,125,381 |
|
|
|
|
|
------------------ |
------------------ |
|
| Cash
flow from operations |
|
14,441,315 |
2,145,623 |
|
|
|
|
========== |
========== |
|
|
| B.
CASH FLOW FROM INVESTING ACTIVITIES |
|
|
|
| Fixed
capital expenditure |
|
|
(416,849) |
(3,825) |
|
| Long
term deposits and deferred cost |
|
|
(500,000) |
-- |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash from investing activities |
|
|
(916,849) |
(3,825) |
|
|
|
|
========== |
========== |
|
|
|
|
| C.
CASH FLOW FROM FINANCING ACTIVITIES |
|
| Long term loans |
|
|
(6,528,515) |
(10,268,765) |
|
| Deferred
liabilities |
|
|
(5,894,185) |
7,996,578 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(12,422,701) |
(2,272,187) |
|
|
|
|
========== |
========== |
|
|
|
|
| Net
Increase/(Decrease) in cash and cash |
|
|
| equivalent
(A+B+C) |
|
|
1,101,766 |
(130,389) |
|
|
|
|
|
|
| Cash
and cash equivalent at the beginning |
|
|
| of the year |
|
|
277,366 |
407,755 |
|
|
|
|
------------------ |
------------------ |
|
| Cash
and cash equivalent at the end |
|
|
1,379,132 |
277,366 |
|
| of the year. |
|
|
|
========== |
========== |
|
|
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
| NOTES
TO THE ACCOUNTS |
|
| FOR
THE YEAR ENDED SEPTEMBER 30TH 1999 |
|
|
| 1.
THE COMPANY AND ITS OPERATIONS: |
|
| AL-QAIM
TEXTILE MILLS LIMITED was incorporated on September 09, 1986 |
|
| as
a public limited company in Pakistan under the companies ordinance 1984 and
is |
|
| quoted
on Karachi and Lahore Stock exchange. The company is engaged in the |
|
| business
of textile spinning. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
|
|
| 2.1
Accounting convention |
|
| These
accounts have been prepared under the historical cost convention |
|
| without
any adjustment for the elects of inflation or current values, except |
|
| as
modified by capitalisation of certain exchange differences and exchange |
|
| coverage
fee as referred to in note No. 2.3 |
|
|
| 2.2 Gratuity |
|
| The
company operates a funded gratuity scheme covering all employees |
|
| payable
on ceasing the employment subject to completion of minimum |
|
| qualifying
period. The liability is calculated with reference to he latest pay |
|
| drawn
and length of service of the employee. |
|
|
| 2.3
Foreign currency translation |
|
| Liabilities
in foreign currencies are translated in Pak Rupees at the rate of |
|
| exchange
approximating to these ruling on the balance sheet date. The |
|
| resultant
gain or loss on adjusted such translation and the exchange risk |
|
| coverage
fee are against the cost of respective tangible operating assets |
|
| acquired
from the proceeds of such liabilities/credits. |
|
