| First Tri-Star Modaraba |
|
|
|
|
|
|
| Annual
Report 1999 |
|
|
|
| Contents |
|
|
| Board
of Directors |
|
|
|
| Directors'
Report |
|
|
|
| Auditors'
Report |
|
|
|
| Balance Sheet |
|
|
| Profit
& Loss Account |
|
| Cash
Flow Statement |
|
|
|
| Notes to the Accounts |
|
| Pattern
of Certificate Holdings |
|
|
|
| Board
of Directors |
|
|
| DIRECTORS
OF MODARABA COMPANY |
MR. MOHAMMED AHMAD ISMAlL |
|
|
Chairman & Chief
Executive |
|
|
|
MR. RASHID AHMAD |
|
|
MR. TAHIR AHMAD |
|
|
MR. ASAD AHMAD |
|
|
| AUDITORS |
|
GARDEZI & CO. |
|
|
CHARTERED ACCOUNTANTS |
|
|
| BANKERS |
|
BANK AL-HABIB LTD. |
|
|
CITIBANK N.A. |
|
|
HABIB BANK LTD. |
|
|
| REGISTERED
OFFICE |
|
F/498, S.I.T.E., |
|
|
P.O. Box 3683, |
|
|
Karachi-75700. |
|
|
| MANAGEMENT
COMPANY' |
A.R.T. Modaraba
Management (Pvt) Ltd. |
|
|
|
|
Report of the Directors |
|
|
of |
|
|
A.R.T. Modaraba Management (Pvt) Ltd. |
|
|
For the year ended June 30, t999. |
|
|
| The
Board of Directors of A.R.T. Modaraba Management (Pvt) Ltd., present the 9th
Annual Report of First Tri- |
|
| Star
Modaraba together with Audited Accounts for the year ended June 30, 1999. |
|
|
| 1.
FINANCIAL RESULTS |
|
|
| Financial
results are summarized as follows ' |
|
|
1999 |
1998 |
|
|
(Rupees in
000's) |
|
|
| Total
Operating Profit/(Loss) |
|
1,488 |
(448) |
|
| Less/(Add):
Total Operating Expenses |
|
1,168 |
(1,125) |
|
|
---------- |
---------- |
|
| Operating
Profit/(Loss) |
|
320 |
(1,573) |
|
| Unappropriated
profit brought forward |
|
3,871 |
5,445 |
|
|
---------- |
---------- |
|
| Unappropriated
profit carried forward |
|
4,115 |
3,871 |
|
|
========== |
========== |
|
|
|
|
| 2. DIVIDEND |
|
|
|
| The
Board in its meeting held on December 7, 1999 has not recommended any
Dividend this year. |
|
|
| 3. BUSINESS |
|
|
| Your
Modaraba has continued business in Trading and Investment. The business as a
whole is |
|
| reducing
in all segments and its difficult to predict when it will pick up again. |
|
|
| 4.
FUTURE PROSPECTS |
|
|
| Future
prospects are very much uncertain. The. general economic conditions do not
permit to forecast |
|
| anything
.accurately. We can only hope and pray that the situation will change for the
better. |
|
|
| 5.
BOARD OF DIRECTORS |
|
|
| The
Present Board of Directors assumed their office with effect from February 16,
1997 for 3 years. |
|
|
| 6. AUDITORS |
|
|
| The
present auditors M/s. Gardezi & Co., are due for retirement and being
eligible offer themselves for |
|
| reappointment
for the year ending June 30, 2000. |
|
|
| 7.
ACKNOWLEDGMENTS |
|
|
| The
Board would like to place on record its appreciation of hard work of the
staff responsible for the |
|
| Modaraba's
affairs. |
|
|
|
On behalf of the Board |
|
|
|
ASAD AHMAD |
|
| Karachi:
the December 7, 1999. |
|
Executive Director |
|
|
|
| Auditors'
Report to the Certificate Holders |
|
|
| We
have audited the annexed Balance Sheet of FIRST TRI-STAR MODARABA which are
representation of |
|
| Modaraba
Company's [A.R.T. MODARABA MANAGEMENT (PVT) LTD.] as at June 30, 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 purpose of our audit and after due verification
thereof, we report that: |
|
|
| a)
in our opinion proper books of accounts have been kept by the Modaraba
Company in respect of First Tri- |
|
| Star
Modaraba as required by the Modaraba Companies and Modaraba (Floatation and
Control) |
|
| Ordinance,
1980 and Modaraba Companies and Modaraba Rules, 1981 |
|
|
| b)
in our opinion: |
|
|
| (i)
the Balance Sheet and the Profit and Loss Account together with notes thereon
have been drawn |
|
| up
in conformity with the Modaraba Companies and Modaraba (Floatation and
Control) Ordinance. |
|
| 1980
and Modaraba Companies and Modaraba Rules, 1981; and |
|
|
| (ii)
the expenditure incurred during the year was. for the purpose of the
Modaraba's business; and |
|
|
| (iii)
the business conducted, investments made and expenditure incurred by the.
Modaraba are in |
|
| accordance
with the objects, terms and conditions of the Modaraba. |
|
|
| (c)
in our opinion and to the best of our information and according to the
explanations given to us, the Balance |
|
| Sheet
and .the related Profit and Loss Account and Cash Flow Statement, together
with the notes give the |
|
| information
required by the Modaraba Ordinance, 1980 and Modaraba. Rules, 1981 in the
manner so |
|
| required
and respectively give a true and fair view of the state of Modaraba's affairs
as at June 30, 1999 |
|
| and
of the Profit and the cash flow statement for the year then ended; and |
|
|
| (d)
in our opinion no. Zakat was deductible at source under the Zakat' and Ushr
Ordinance, 1980. |
|
|
|
Sd/: |
|
|
GARDEZl .& CO. |
|
| Karachi
the November 25, 1999. |
|
Chartered Accountants |
|
|
|
| Balance
Sheet As At June 30, 1999 |
|
|
|
Note |
1999 |
1998 |
|
|
No. |
Rupees |
Rupees |
|
|
| AUTHORISED
FUND |
|
|
| 20,000,000
Modaraba Certificates |
|
| of
Rs. 10/- each |
|
|
200,000,000 |
200,000,000 |
|
|
========== |
========== |
|
| ISSUED,
SUBSCRIBED AND PAID-UP FUND |
|
|
| 14,080,000
,Modaraba Certificates |
|
140,800,000 |
140,800,000 |
|
| of
Rs. 10/- each |
|
3 |
|
|
| RESERVE
AND SURPLUS |
|
|
| General Reserve |
- |
|
10,000,000 |
10,000,000 |
|
| Statutory
Reserve |
|
8,130,000 |
8,130,000 |
|
| Unappropriated
profit |
|
4,115,146 |
3,871,949 |
|
|
---------- |
---------- |
|
|
22,245,146 |
22,001,949 |
|
|
---------- |
---------- |
|
|
163,045,146 |
162,801,949 |
|
|
| CURRENT
LIABILITIES |
|
|
| Short
Term Borrowings |
|
4 |
2,071,278 |
2,071,278 |
|
| Creditors,
Accrued and Other Liabilities |
|
5 |
636,843 |
2,313,892 |
|
| Unclaimed
Profit Distribution |
|
802,058 |
815,439 |
|
| Provision
for Taxation |
|
80,000 |
-- |
|
|
---------- |
---------- |
|
|
3,590,179 |
5,200,609 |
|
|
---------- |
---------- |
|
|
166,635,325 |
168,002,558 |
|
|
========== |
========== |
|
|
| TANGIBLE
FIXED ASSETS |
|
| Operating
Assets in own use |
|
6 |
381,479 |
449,585 |
|
|
|
|
| INVESTMENTS |
|
|
|
| In Shares |
|
7 |
127,485,417 |
127,965,869 |
|
|
| CURRENT
ASSETS |
|
|
| Trading Stock |
|
-- |
36,062,345 |
|
| Trade
Debts (Unsecured considered good) |
|
35,553,180 |
-- |
|
| Advances,
Pre-payments and other Receivables |
8 |
2,850,086 |
2,829,428 |
|
| Cash
and Bank Balances |
|
9 |
365,163 |
695,331 |
|
|
---------- |
---------- |
|
|
38,768,429 |
39,587,104 |
|
|
---------- |
---------- |
|
|
166,635,325 |
168,002,558 |
|
|
========== |
========== |
|
| Notes:
The annexed notes form integral part of these accounts. |
|
|
|
|
|
|
|
MOHAMMED AHMAD ISMAlL |
|
ASAD AHMAD |
|
TAHIR AHMAD |
|
|
Chief Executive |
|
Director |
|
Director |
|
|
A.R.T. Modaraba Management (Pvt) Ltd. |
|
A.R.T. Modaraba Management (Pvt) Ltd. |
|
A.R.T. Modaraba Management (Pvt) Ltd. |
|
|
|
| Karachi:
the November 25, 1999. |
|
|
|
| Profit
and Loss Account |
|
| For
the year ended June 30, 1999 |
|
|
|
|
Note |
1999 |
1998 |
|
|
No. |
Rupees |
Rupees |
|
|
| Operating
Profit / (Loss) |
|
10 |
1,487,827 |
(447,876) |
|
|
| Less
/ (Add): Operating Expenses |
|
11 |
559,188 |
(443,162) |
|
| Financial
Charges |
|
12 |
608,896 |
(682,054) |
|
|
----------- |
----------- |
|
|
1,168,084 |
(1,125,216) |
|
|
----------- |
----------- |
|
|
319,743 |
(1,573,092) |
|
|
| Prior
Year Adjustment |
|
3,454 |
-- |
|
|
----------- |
----------- |
|
| Profit
before Taxation |
|
323,197 |
(1,573,092) |
|
|
|
|
| Provision
for Taxation |
|
80,000 |
-- |
|
|
----------- |
----------- |
|
| Profit
after Taxation |
|
243,197 |
(1,573,092) |
|
|
|
|
| Un-appropriated
profit brought forward |
|
3,871,949 |
5,445,041 |
|
|
----------- |
----------- |
|
| Un-appropriated
profit carried forward |
|
4,115,146 |
3,871,949 |
|
|
========== |
========== |
|
| Notes: The annexed notes form integral part of
these accounts. |
|
|
|
MOHAMMED AHMAD ISMAlL |
|
ASAD AHMAD |
|
TAHIR AHMAD |
|
|
Chief Executive |
|
Director |
|
Director |
|
|
A.R.T. Modaraba |
|
A.R.T. Modaraba |
|
A.R.T. Modaraba |
|
|
Management (Pvt) Ltd. |
|
Management (Pvt) Ltd. |
|
Management (Pvt) Ltd. |
|
|
|
| Cash
Flow Statement |
|
| For
the year ended June 30, 1999 |
|
|
|
|
Note |
1999 |
1998 |
|
|
No. |
Rupees |
Rupees |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| Profit
before Taxation |
|
323,197 |
(1,573,092) |
|
| Add
: Items not involving movement of cash |
|
|
| Depreciation |
|
68,106 |
82,102 |
|
|
391,303 |
(1,490,990) |
|
| CHANGES
IN WORKING CAPITAL |
|
13 |
|
| (Increase)/Decrease
in Current Assets |
|
488,507 |
(9,572,490) |
|
| Increase/(Decrease)
in Current Liabilities |
|
(1,677,049) |
2,272,813 |
|
|
---------- |
---------- |
|
| Net
changes in Working Capital |
|
(1,188,542) |
(7,299,677) |
|
|
---------- |
---------- |
|
| Net
Cash Flow from Operating Activities |
|
(797,239) |
(8,790,667) |
|
|
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
|
|
| Purchase
of investments |
|
(3,454) |
(35,480) |
|
| Sale
of investments |
|
483,906 |
11,675,952 |
|
|
---------- |
---------- |
|
| Net
Cash Flow from Investing Activities |
|
480,452 |
11,640,472 |
|
|
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
|
| Profit
distributed |
|
(13,382) |
(5,863) |
|
|
---------- |
---------- |
|
| Net
Cash Flow from Financing Activities |
|
(13,382) |
(5,863) |
|
|
| Net
Increase/(Decrease)in cash & cash equivalent |
|
(330,169) |
2,843,942 |
|
| Cash
and cash equivalent at the beginning of the year |
|
(1,375,946) |
(4,219,888) |
|
|
---------- |
---------- |
|
| Cash
and cash equivalent at the end of June 30. |
14 |
(1,706,115) |
(1,375,946) |
|
|
========== |
========== |
|
|
|
| Notes
to the Accounts |
|
| For
the year ended June 30, 1999 |
|
|
| LEGAL
STATUS AND NATURE OF BUSINESS |
|
|
| First
Tri-Star Modaraba was formed under the Modaraba Companies and Modaraba
(Floatation and |
|
| Control)
Ordinance, 1980 and the Rules framed thereunder and is managed by A.R.T.
Modaraba |
|
| Management
(Pvt) Limited. |
|
|
| The
Modaraba is a perpetual, multipurpose, multidimensional Modaraba and is
primarily engaged in |
|
| leasing
of Plant and Machinery, Motor Vehicles (both commercial and Private),
Computer etc., providing |
|
| finance
on Morabaha and Musharika arrangements, purchases and sales of marketable
securities and |
|
| trading
of various items. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICES |
|
|
| (a) Overall Valuation Policies |
|
|
| These
accounts have been prepared under the historical cost convention. |
|
|
| (b) Fixed Assets: |
|
|
| (i)
Assets Leased out and Amortization: |
|
|
| Leased
Assets are stated at cost less accumulated amortization. Amortization is
charged to |
|
| income
applying the straight-line method whereby the depreciable values of assets
are |
|
| amortized
over its lease period. |
|
|
| (ii)
Assets in Own Use and Depreciation · |
|
|
| Operating
assets are stated at cost less accumulated depreciation. Depreciation is
charged |
|
| to
income applying the reducing balance method whereby the cost of an asset is
written |
|
| off
over its estimated useful life. Full year's depreciation is charged on
addition while no |
|
| depreciation
is charged on assets disposed off during the year. |
|
|
| (c)
Trading Stock: |
|
|
|
| These
are stated at cost determined on the moving average basis except for
goods-in-transit |
|
| which
are stated at invoice value plus other charges paid thereon. |
|
|
| (d)
Investments: |
|
|
| (i)
Investments are valued at cost. |
|
| (ii)
Profit or Loss on sale is accounted for in the year in which it arise. |
|
| (iii)
Full provision is made against permanent dimunition in the value of
investments. |
|
|
| (e)
Revenue Recognition: |
|
|
| (i)
Rental income is recognised as and when lease rentals become due on a
systematic basis |
|
| over
the lease period. |
|
|
| (ii)
Profit on Morabaha finance is recorded on accrual basis, calculated on number
of days funds |
|
| were utilised. |
|
|
| (iii)
Dividend income is recognised on receipt basis. |
|
|
| (iv)
Sales of goods are recognised on despatch of goods to customers. |
|
|
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
|
| 3
ISSUED, SUBSCRIBED AND PAID-UP CAPITAL |
|
|
| 11,900,000
Modaraba Certificates |
|
| of
Rs. 10/- each fully paid in cash. |
|
119,000,000 |
119,000,000 |
|
|
| 2,180,000
Modaraba Certificates of Rs. 10/- |
|
| each
issued as fully paid bonus Certificates. |
|
21,800,000 |
21,800,000 |
|
|
---------- |
---------- |
|
|
140,800,000 |
140,800,000 |
|
|
========== |
========== |
|
| 4
SHORT TERM BORROWINGS |
|
| From
Commercial Bank (Secured) |
|
2,071,278 |
2,071,278 |
|
|
========== |
========== |
|
|
|
|
| 4.1
(i) Secured by pledge over shares of Public Limited Companies. |
|
| (ii)
Carries mark-up @50 paisas per thousand per day. |
|
|
| 5
CREDITORS, ACCRUED AND OTHER LIABILITIES |
|
|
| Accrued
Expenses |
|
28,873 |
107,383 |
|
| Accrued
mark-up on short term borrowings |
|
607,970 |
-- |
|
| Other
Liabilities |
|
-- |
2,206,509 |
|
|
---------- |
---------- |
|
|
636,843 |
2,313,892 |
|
|
========== |
========== |
|
| 6
DEPRECIATION SCHEDULE OF ASSETS IN OWN USE |
|
|
| PARTICULARS |
Cost |
Addition/ |
Caost |
Rate |
Depreciation |
Accumulated |
Written Down |
|
as on |
(Disposal) |
as on |
% |
Charged for |
Depreciation |
value as on |
|
01.07.98 |
during the year |
01.07.99 |
|
year |
as on 30.06.99 |
30.06.99 |
|
| Motor Car |
|
896,150 |
-- |
896,150 |
20% |
45,185 |
715,411 |
180,739 |
|
|
| Furniture & |
|
|
| Fixture |
|
107,900 |
-- |
107,900 |
10% |
5,696 |
56,634 |
51,266 |
|
|
| Motorcycle |
|
29,400 |
-- |
29,400 |
20% |
1,110 |
24,961 |
4,439 |
| Office
Equipment |
25&,432 |
-- |
256,432 |
10% |
14,000 |
130,436 |
125,996 |
| Computer |
|
43,700 |
-- |
43,700 |
10% |
2,115 |
24,661 |
19,039 |
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
| 1999 Rupees |
|
1,333,582 |
-- |
1,333,582 |
|
68,106 |
952,103 |
381,470 |
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
| 1998 Rupees |
|
1,333,582 |
-- |
1,333,582 |
|
82,102 |
883,997 |
449,585 |
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
| 7.
INVESTMENT IN SHARES |
|
| The
holdings are in ordinary shares/certificates of the face value of Rs. 10/-
each. |
|
|
| No. of |
|
| Share/Certificates |
Q U O T E D : |
|
Cost |
|
| 1999 |
1998 |
Associated Undertakings |
|
1999 |
1998 |
|
|
| 4,001,455 |
4,001,455 |
Second Tri-Star Modaraba |
|
28,057,681 |
28,057,681 |
|
| 1,799,081 |
1,799,081 |
Tri-Star Polyester Ltd. |
|
25,224,133 |
25,224,133 |
|
| 1,214,900 |
1,214,900 |
Tri-Star Power Ltd. |
|
23,557,122 |
23,557,122 |
|
| 3,740,000 |
3,740,000 |
Tri-Star Energy Ltd.
(Un-quoted) |
|
37,400,000 |
37,400,000 |
|
|
---------- |
---------- |
|
|
114,238,936 |
114,238,936 |
|
|
|
OTHERS |
|
|
| 5,000 |
5,000 |
12th ICP Mutual Fund Ltd. |
|
160,640 |
160,640 |
|
| 302 |
302 |
First Crescent Modaraba. |
|
4,545 |
4,545 |
|
| 1,599 |
1,599 |
First Grindlays Modaraba. |
|
32,381 |
32,381 |
|
| 70 |
70 |
First IBL Modaraba. |
|
1,860 |
1,860 |
|
| 1,725 |
1,280 |
Orix Leasing Pakistan
Ltd. |
|
72,893 |
72,893 |
|
| 9,136 |
9,136 |
Saudi Pak Leasing Ltd. |
|
215,904 |
215,904 |
|
| 444 |
244 |
Askari Commercial Bank
Ltd. |
|
7,669 |
4,215 |
|
| 1,805 |
1,368 |
Bank AI-Habib Ltd. |
|
49,777 |
49,777 |
|
| 400 |
400 |
Islamic Investment Bank
Ltd. |
|
2,757 |
2,757 |
|
| -- |
49 |
Muslim Commercial Bank Ltd. |
|
-- |
1,986 |
|
| 313 |
285 |
Soneri Bank Ltd. |
|
9,470 |
9,470 |
|
| 500 |
500 |
Business & Ind.
Insurance Co. Ltd. |
|
5,000 |
5,000 |
|
| 40,75 |
40,750 |
Azam Textile Mills Ltd. |
|
741,875 |
741,875 |
|
| 2 600 |
2,600 |
Faisal Spinning Mills
Ltd. |
|
81,013 |
81,013 |
|
| 17,671 |
17,671 |
Mohib Textile Mills Ltd, |
|
897,530 |
897,530 |
|
| 10,000 |
10,000 |
Sana Industries Ltd. |
|
953,375 |
953,375 |
|
| 25,000 |
25,000 |
Umer Fabrics Ltd. |
|
538,075 |
538,075 |
|
| 102.35 |
102,350 |
Mohib Exports Ltd, |
|
2,436,070 |
2,436,070 |
|
| 26.41 |
25,151 |
Crescent Textile Mills
Ltd. |
|
1,265,165 |
1,265,165 |
|
| 21,758 |
21,758 |
Gul Ahmed Textile Mills
Ltd. |
|
670,019 |
670,019 |
|
| 9,127 |
9,127 |
Jubilee Spinning &
Weaving Mills Ltd. |
141,414 |
141,414 |
|
| 15,525 |
15,525 |
Kohinoor Industries Ltd. |
|
610,100 |
610,100 |
|
| 49,230 |
49,230 |
Mohd. Farooq Textile
Mills Ltd. |
|
1,667,083 |
1,667,083 |
|
| 10,000 |
10,000 |
Sunshine Cloth Ltd. |
|
160,900 |
160,900 |
|
| 7,260 |
6,600 |
Dewan Sugar Mills Ltd. |
|
431,036 |
431,036 |
|
| 600 |
600 |
Mian Mohd. Sugar Mills
Ltd. |
|
6,000 |
6,000 |
|
| 5,520 |
5,520 |
Hino Pak Motors Ltd. |
|
455,850 |
455,850 |
|
| 7,459 |
7,216 |
Engro Chemicals
(Pakistan) Ltd. |
|
305,854 |
305,854 |
|
| 7,000 |
10,000 |
Hoechst Marion Roussel. |
|
1,124,480 |
1,606,400 |
|
| 128 |
112 |
Packages Ltd. |
|
7,816 |
7,816 |
|
| 2,000 |
2,000 |
Cherat Cement Ltd. |
|
83,600 |
83,600 |
|
| 5,000 |
5,000 |
Tri-Pack Films Ltd. |
|
101,000 |
101,000 |
|
| 123 |
123 |
Shell Pakistan Ltd. |
|
5,330 |
5,330 |
|
| 43 |
-- |
Dewan Salman Fibre Ltd. |
|
-- |
-- |
|
|
---------- |
---------- |
|
| Market
Vaule Rs. 50,387,414 (1998: Rs. 49,789,663) |
|
127,485,417 |
127,965,869 |
|
|
========== |
========== |
|
|
|
|
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
|
| 8.
ADVANCES, PRE-PAYMENTS AND OTHER RECEIVABLES |
|
|
| Dividend
Income Receivable |
|
2,831,019 |
2,814,769 |
|
| Advance
Income Tax |
|
19,067 |
14,659 |
|
|
---------- |
---------- |
|
|
