|
|
|
|
|
|
|
|
|
|
|
|
| 17th
ANNUAL REPORT 1996 |
|
| PAKISTAN
HOTELS DEVELOPERS LTD. |
|
| OWNERS
AND OPERATORS OF |
|
| HOLIDAY
INN |
|
| CROWNE
PLAZA |
|
| KARACHI |
|
|
| CONTENTS |
|
| COMPANY INFORMATION |
|
1 |
|
| NOTICE
of MEETING |
|
3 |
|
| CHAIRMAN'S
REVIEW |
|
4 |
|
| REPORT
OF DIRECTORS |
|
6 |
|
| AUDITORS'
REPORT |
|
7 |
|
| BALANCE
SHEET |
|
8 |
|
| PROFIT
& Loss ACCOUNT |
|
10 |
|
| CASH
FLOW STATEMENT |
|
11 |
|
| NOTES
TO THE ACCOUNTS |
|
12 |
|
| PATTERN
OF SHARES HOLDING |
|
24 |
|
|
| COMPANY
INFORMATION |
|
|
| BOARD
OF DIRECTORS |
|
| S.
FEROZUDDIN BAWEJA (CHAIRMAN) |
|
| MUZAFFAR
F. BAWEJA. (CHIEF EXECUTIVE) |
|
| MANSOOR
F. BAWEJA |
|
| MEHMOOD
F. BAWEJA |
|
| MASROOR
F. BAWEJA |
|
| ZAHEER
F. BAWEJA |
|
| FEROZUDDIN
RIAZ |
|
| NADEEM
RIAZ |
|
|
| BANKERS: |
|
| DOHA
BANK LIMITED |
|
| UNITED
BANK LIMITED |
|
| MUSLIM
COMMERCIAL BANK LIMITED |
|
| NATIONAL
BANK OF PAKISTAN |
|
| PRUDENTIAL
COMMERCIAL BANK LIMITED |
|
|
| SECRETARY |
|
| S.
N. RAHMAN |
|
|
| LEGAL
ADVISORS |
|
| RAHMAT
ELAHI |
|
| 3rd
FLOOR, NIAZI MANZIL, |
|
| M.R.-1/140,
MURAD KHAN ROAD, |
|
| OFF
MARRIOT ROAD, |
|
| KARACHI. |
|
|
| AUDITORS |
|
| HAMID
SHERWANI & ASSOCIATES |
|
| CHARTERED
ACCOUNTANTS |
|
| 0406-KASHIF
CENTRE, |
|
| DAUD
POTA ROAD, |
|
| KARACHI. |
|
|
| REGISTERED
OFFICE |
|
| MEZZANINE
FLOOR, |
|
| HOLIDAY
INN CROWNE PLAZA |
|
| 195/1
SHAHRAH-E-FAISAL, |
|
| KARACHI. |
|
|
| ABOUT
THE COMPANY |
|
| The
Pakistan Hotels Developers Ltd. is a Public Limited Company quoted on the
Karachi and Lahore |
|
| Stock
Exchanges. The company was initially registered at Karachi in the name of Taj
Mahal Hotels |
|
| Limited
under the Companies Act 1913 (now Companies Ordinance, 1984) as a private
company. |
|
| It
was converted into a public company in the year 1981. Later, on 12th June
1994, the name |
|
| of
the company was changed from Taj Mahal Hotels Limited to Pakistan Hotels
Developers Limited |
|
| due
to upgrading of its Hotel into a Five Star Deluxe Hotel, and its linkage with
the world's largest |
|
| chain
of Hotels-Holiday Inn. |
|
|
| The
company owns and operates a Five Star Hotel at Karachi in the name of Holiday
Inn Crowne |
|
| Plaza,
which is located in the heart of the city and is connected to the main
business centres and |
|
| entertainment
venues of the city. |
|
|
| The
Hotel offers 411 rooms with 23 executive suites, 4 deluxe theme suites, one
Presidential suit |
|
| and
a Crowne Plaza club floor with executive lounge. Every room has individual
air conditioning |
|
| controls,
Multi channel satellite T.V., Stereo Music system, Mini Bar and direct
telephone facility. |
|
| The
rates are competitive. |
|
|
| In
house facilities include beautifully decorated restaurants that have more
than exquisite food to |
|
| offer.
Almas is our Signature restaurant, Jharoka for all day dinning, Heer coffee
lounge, Splash- |
|
| Pool
side restaurant and Mexican speciality restaurant under construction. Health
club is another |
|
| hall
mark for the fitness freaks of Karachi offering Sauna, Jacuzzi, fitness
centre, a swimming pool |
|
| and
squash courts. Service facilities include free Airport service, In-house
laundry/valet and 24 hour |
|
| business
centre. |
|
|
| The
new Shopping Arcade consists of Travel Agencies, gift shops, jewellers,
drugstore, car rental, |
|
| carpet
and antique shop. Meetings and Banquet facilities are also made available for
upto 3000 |
|
| persons. |
|
|
| NOTICE
OF 17TH ANNUAL GENERAL MEETING |
|
| Notice
is hereby given that the 17th Annual General Meeting of PAKISTAN HOTELS |
|
| DEVELOPERS
LIMITED will be held on Monday 30th of December, 1996 at 5.00 p.m. |
|
| at
Registered Office of the company 195/1, Shahrah-e-Faisal, Karachi to transact
the |
|
| following
business: |
|
|
| 1.
To confirm the minutes of 16th Annual General Meeting held on 30th December, |
|
| 1995. |
|
|
| 2.
To receive, consider and adopt the Audited Accounts for the year ended 30th
June, |
|
| 1996,
together with the Directors' & Auditors' reports thereon. |
|
|
| 3.
To appoint Auditors for the year 1996-97 and to fix their remuneration. |
|
|
| 5.
Any other business with the permission of the Chair. |
|
|
| By
the order of the Board. |
|
|
| (S.
N. RAHMAN) |
|
| Company
Secretary |
|
|
| Karachi.
8th December, 1996 |
|
|
| NOTE: |
|
| 1.
A member entitled to attend and vote at the Annual General Meeting is
entitled to |
|
| appoint
another member as a proxy to attend and vote on the member's behalf. Proxies |
|
| must
be deposited with the Secretary of the Company not less than 48 hours before |
|
| the
meeting. |
|
|
| 2.
The share transfer books of the Company shall remain closed from 24th
December, |
|
| 1996
to 30th December, 1996 (both days inclusive). Transfers, complete in all |
|
| respects,
received at the Registered Office of the Company by 23rd December, 1996 |
|
| will
be entitled to attend the meeting. |
|
|
| 3.
Share holders are requested to notify the Company of any change in their
address. |
|
|
| CHAIRMAN'S
REVIEW |
|
|
| Dear
Members, |
|
| Assalamu-Alaikum,
I welcome you to the seventeenth Annual General Meeting of the company. I |
|
| am
very glad to present the annual report and the results for the year ended
30th June 1996. |
|
|
| Although
the results are not at all to our expectations and forecast, mainly due to
the worst law |
|
| and
order situation in the city, but by the Grace of Al-mighty Allah, we have
brought the property |
|
| on
the track, have reduced our expenses by exercising stringent controls and
increased sales by |
|
| 37%
over previous year resulting in the profit of Rs. 4.19 million, only on the
operation of an average |
|
| of
100 rooms per day. |
|
|
| it
is evident that in all aspects, your property is the largest in the city and
has tremendous potential |
|
| to
obtaining its share from the market, day by day with healthy competition and
upgrading all the |
|
| remaining
areas over and above Five Star category. At the time you have gathered here,
we would |
|
| Insha-Allah
have completed the Health Club, Squash court at a very high standard and have
opened |
|
| the
executive floor which has no match with any other Hotel. |
|
|
| You
will be glad to know that now there is no foreign national employed with the
company and |
|
| the
Hotel is being run by 100% Pakistani professionals and trained staff, saving
a lot of money and |
|
| foreign
exchange which is the demand of the country. |
|
|
| The
company is seeking in all areas to get more and more profit and depending on
its own resources |
|
| for
the capital work in progress. The laundry which is the biggest in town is
fully equipped with |
|
| latest
machines and is capable of catering outside customers also. The idea for
outdoor business |
|
| is
under consideration i.e. to have at least 4 Pick up points in prime location
which will give very |
|
| handsome
profit. |
|
|
| The
Administration Block is completed along with 4 Board rooms with latest
equipments. The |
|
| membership
of the Health club is already announced and the money received from this
scheme will |
|
| be
spent on Mexican Restaurant of which construction work has already been
started. |
|
|
| Your
Directors have not declared any dividend for this year due to the reason that
company needs |
|
| funds
to complete the remaining job. In this connection and to remove any
misapprehensions in |
|
| the
minds of the shareholders, an undertaking has been given to the Karachi Stock
Exchange that |
|
| any
shareholder who wishes to dis-invest his investment will be paid 60% extra on
his equity i.e. |
|
| the
Directors will buy the shares at Rs. 16/- per share of the face value of Rs.
10/- each, any time |
|
| until
31-12-96 as per rules & regulations of K.S.E. |
|
|
| The
future prospects of your company are bright. Every possible effort is being
made to complete |
|
| the
remaining job by the end of next financial year in order to utilise full
capacity. Plans are also |
|
| ahead
to diversify the business activities in more out-lets. Adjustment of Banks
loans are also speedily |
|
| undertaken
through targeted reduction in expenditure and by re-scheduling repayment
arrangement |
|
| with
Banks. All these efforts are expected to increase profitability which will
enable the company |
|
| to
fulfil its obligations to the Investors. |
|
|
| During
the year the management and staff relations remained very cordial. I take
this opportunity |
|
| to
thank all the employees for their loyal and dedicated services to the
company. |
|
|
| I
would also like to extend my thanks to the shareholders for their continued
support and faith. |
|
|
| My
thanks are also due to M/s. Holiday Inn worldwide for their cooperation. I
also gratefully |
|
| acknowledge
the support received from Government Departments. |
|
|
| S.
FEROZUDDIN BEWEJA |
|
| (CHAIRMAN) |
|
|
| REPORT
OF DIRECTORS |
|
|
| The
Directors of PAKISTAN HOTELS DEVELOPERS LIMITED are pleased to submit their |
|
| report
together with Audited Accounts of the Company for the year ended 30th June,
1996. |
|
|
|
(Rs. '000) |
(Rs. '000) |
|
|
| ACCOUNTS |
|
| Total
Revenue |
|
116,259 |
|
|
| Less: |
Direct Cost |
|
67,266 |
|
|
|
Other Managerial and |
|
|
Financial Expenses |
|
34,591 |
|
|
---------- |
|
|
101,857 |
|
|
---------- |
|
|
14,402 |
|
| Less:
Statutory Depreciation |
|
13,847 |
|
|
---------- |
|
|
Net operating profit
before taxation |
|
555 |
|
|
| Less: |
Taxation |
|
922 |
|
|
---------- |
|
|
Loss after taxation |
|
367 |
|
|
=========== |
|
|
| The foreign exchange earning during the
year was 0.324 million U.S. Dollars. |
|
|
| APPOINTMENT
OF AUDITORS: |
|
| The
retiring Auditors Messrs. Hamid Sherwani & Associates, Chartered
Accountants, being |
|
| eligible,
offer themselves for reappointment. |
|
|
| CHAIRMAN'S
REVIEW |
|
| The
contents of chairman's review form an integral part of the report. |
|
|
| PATTERN
OF SHAREHOLDING: |
|
| The
pattern of shareholding as at 30th June, 1996 is annexed. |
|
|
| For
& on behalf of Board of Directors |
|
|
| MUZAFFAR
F. BAWEJA |
|
| (CHIEF
EXECUTIVE) |
|
|
| Karachi:
16th November, 1996 |
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed Balance Sheet of M/s. PAKISTAN
HOTELS DEVELOPERS |
|
| LIMITED
as at 30th June, 1996 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 informations 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 |
|
| 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 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
explanation given to |
|
| us, the Balance Sheet, Profit & 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 30th June, 1996 and
of the Profit for the year then ended. |
|
|
| (d)
In our opinion, no zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
|
|
| HAMID
SHERWANI & ASSOCIATES |
|
| Chartered
Accountants. |
|
|
| Karachi:
16th November, 1996 |
|
|
| PAKISTAN
HOTELS DEVELOPERS LIMITED |
|
| BALANCE
SHEET AS ON 30TH ,JUNE, 1996 |
|
|
| CAPITAL
& LIABILITIES |
|
Note |
1996 |
1995 |
|
|
|
(Rs. '000) |
(Rs. '000) |
|
| SHARE
CAPITAL |
|
|
| AUTHORISED: |
|
|
| 30,000,000
Ordinary shares of Rs. 10/- each |
|
300,000 |
300,000 |
|
|
========== |
========== |
|
|
| ISSUED,
SUBSCRIBED & PAID-UP: |
|
| 18,000,000
Ordinary shares of Rs.10/- each |
|
3 |
180,000 |
180,000 |
|
| Un-appropriated
Profit |
|
13,786 |
14,153 |
|
|
---------- |
---------- |
|
|
193,786 |
194,153 |
|
|
| DEFERRED
LIABILITIES |
|
| Deferred
taxation |
|
5,163 |
5,514 |
|
| Provision
for gratuity |
|
4,493 |
2,760 |
|
|
| LONG
TERM ADVANCES & |
|
| DEPOSITS
- UNSECURED |
|
4 |
25,437 |
25,689 |
|
|
| CURRENT
LIABILITIES: |
|
| Short
term borrowings |
|
5 |
26,783 |
17,286 |
|
| Long
term loans over due - secured |
|
6 |
4,521 |
4,521 |
|
| Creditors,
accrued charges & other liabilities |
|
7 |
31,199 |
33,159 |
|
| Provision
for taxation |
|
3,605 |
3,029 |
|
|
---------- |
---------- |
|
|
66,108 |
57,995 |
|
|
| CONTINGENCIES & CAPITAL
COMMITMENTS: |
|
8 |
-- |
-- |
|
|
---------- |
---------- |
|
|
294,987 |
286,111 |
|
|
========== |
========== |
|
|
| MUZAFFAR
F.BAWEJA |
|
| CHIEF
EXECUTIVE |
|
|
| AUDITORS'
REPORT: As per report of even date annexed. |
|
|
| Karachi
November 16, 1996 |
|
|
| PROPERTY
& .ASSETS: |
|
Note |
1996 |
1995 |
|
|
|
(Rs. '000) |
(Rs. '000) |
|
|
| FIXED
CAPITAL EXPENDITURE |
|
| Operating
fixed assets |
|
9 |
234,920 |
247,865 |
|
| Capital
work-in-progress |
|
10 |
17,729 |
1,652 |
|
|
|
---------- |
---------- |
|
|
252,649 |
249,517 |
|
|
| LONG
TERM DEPOSITS AND |
|
| DEFERRED
COST |
|
11 |
2,164 |
2,544 |
|
|
| CURRENT
ASSETS: |
|
|
| Stocks
and stores |
|
12 |
2,083 |
2,405 |
|
| Trade
debtors un-secured (Considered good) |
|
7,861 |
6,020 |
|
| Advances,
deposits, prepayments and |
|
| other
receivables. |
|
13 |
16,950 |
19,994 |
|
| Investments |
|
14 |
7,437 |
-- |
|
| Cash
& bank balances |
|
15 |
5,843 |
5,631 |
|
|
|
---------- |
---------- |
|
|
40,174 |
34,050 |
|
|
|
|
---------- |
---------- |
|
|
294,987 |
286,111 |
|
|
========== |
========== |
|
| ZAHEERUDDIN
F. BAWEJA |
|
| DIRECTOR |
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
| PAKISTAN
HOTELS DEVELOPERS LIMITED |
|
| PROFIT
& LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED 30TH JUNE, 1996 |
|
|
|
Note |
1996 |
1995 |
|
| PARTICULARS |
|
(Rs. '000) |
(Rs. '000) |
|
|
| Sales
and services |
|
16 |
114,484 |
83,772 |
|
| Less:
Cost of sales and services |
|
17 |
67,266 |
51,848 |
|
|
|
---------- |
---------- |
|
| Gross
profit |
|
47,218 |
31,924 |
|
|
|
|
| Administrative,
selling and general expenses |
|
18 |
43,032 |
41,272 |
|
|
|
---------- |
---------- |
|
| Operating
profit / (loss) |
|
4,186 |
(9,348) |
|
| Other
income |
|
19 |
769 |
24,479 |
|
|
|
---------- |
---------- |
|
|
4,955 |
15,131 |
|
| OTHER
EXPENSES: |
|
|
|
| Financial
charges |
|
20 |
5,406 |
2,965 |
|
|
|
---------- |
---------- |
|
|
(451) |
12,166 |
|
| Prior
year adjustments |
|
1,006 |
-- |
|
|
|
---------- |
---------- |
|
| Net
operating profit / (loss) before taxation |
|
555 |
12,166 |
|
|
| TAXATION: |
|
| Current |
|
(576) |
629 |
|
| Previous |
|
(697) |
-- |
|
| Deferred |
|
351 |
3,238 |
|
|
|
---------- |
---------- |
|
|
(922) |
3,867 |
|
|
|
|
|
|
|
---------- |
---------- |
|
| Profit
/ (Loss) after taxation |
|
(367) |
8,299 |
|
|
|
|
| Unappropriated
profit b/f |
|
14,153 |
5,854 |
|
|
|
---------- |
---------- |
|
| Unappropriated
profit c/o. |
|
13,786 |
14,153 |
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts. |
|
| Karachi:
November 16, 1996 |
|
|
| PAKISTAN
HOTELS DEVELOPERS LIMITED |
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED 30TH JUNE, 1996 |
|
|
1996 |
1995 |
|
| PARTICULARS |
|
(Rs. '000) |
(Rs. '000) |
|
|
| CASH
FLOWS FROM OPERATING ACTIVITIES |
|
| Profit
for the year |
|
555 |
12,166 |
|
|
|
|
|
| Add
Adjustments: |
|
| Depreciation |
|
13,847 |
15,033 |
|
| Loss
on disposal of fixed assets |
|
99 |
(24,194) |
|
| Provision
for gratuity |
|
1,733 |
1,204 |
|
| Deferred
cost |
|
483 |
483 |
|
|
|
---------- |
---------- |
|
|
16,162 |
(7,474) |
|
|
|
|
|
|
|
---------- |
---------- |
|
|
16,717 |
4,692 |
|
| (Increase)/Decrease
in current assets |
|
|
|
| Short
term investments |
|
(7,437) |
-- |
|
| Stock
and stores |
|
322 |
(2,241) |
|
| Trade
debtors |
|
(1,841) |
6,493 |
|
| Long
term deposits & deferred cost. |
|
(103) |
-- |
|
| Advances,
prepayments & other receivables |
|
2,347 |
(10,732) |
|
|
|
---------- |
---------- |
|
|
(6,712) |
(6,480) |
|
|
|
|
|
|
---------- |
---------- |
|
|
10,005 |
(1,788) |
|
| Increase/(Decrease)
in current liabilities |
|
| Short
term borrowing |
|
9,497 |
15,480 |
|
| Creditors
accrued charges & other liabilities |
|
(1,960) |
18,247 |
|
|
|
---------- |
---------- |
|
|
7,537 |
33,727 |
|
|
|
|
|
|
---------- |
---------- |
|
| Net
cash from operating activities |
|
17,542 |
31,939 |
|
| CASH
FLOWS FROM INVESTING ACTIVITIES |
|
|
|
| Acquisition
of fixed assets |
|
(18,188) |
(102,606) |
|
| Sale
proceeds of fixed assets |
|
1,110 |
29,042 |
|
| Long
term deposits & deferred cost |
|
-- |
(506) |
|
|
|
---------- |
---------- |
|
| Net
cash used in investing activities |
|
(17,078) |
(74,070) |
|
| CASH
FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
| Issue
of shares capital |
|
-- |
60,000 |
|
| Long
term loans |
|
-- |
(34,800) |
|
| Long
term deposits and advance rent |
|
(252) |
16,492 |
|
| NRI |
|
-- |
(2,392) |
|
| Payment
of taxes |
|
-- |
(2,000) |
|
|
|
---------- |
---------- |
|
| Net
cash used in financing activities |
|
(252) |
37,300 |
|
|
|
|
|
|
|
|
---------- |
---------- |
|
| Net
Increase/(Decrease)in cash and bank balances |
|
212 |
(4,831) |
|
| cash
and bank balances at the beginning of the year |
|
5,631 |
10,462 |
|
|
|
---------- |
---------- |
|
| Cash
and bank balances at the end of year |
|
5,843 |
5,631 |
|
|
========== |
========== |
|
| PAKISTAN
HOTELS DEVELOPERS LIMITED |
|
| NOTES
TO THE ACCOUNTS |
|
|
| 1.
COMPANY & ITS OPERATION: |
|
| Pakistan
Hotels Developers Limited, formerly Taj Mahal Hotels Limited was incorporated |
|
| in
1979 as a private limited Company under the Companies Act, 1913 and converted |
|
| into
Public Limited Company in 1981. The Company is listed with Karachi &
Lahore |
|
| Stock
Exchanges of Pakistan. The Company is engaged in running a Five Star Hotel. |
|
|
| 2.
ACCOUNTING POLICIES: |
|
| 2.1
ACCOUNTING CONVENTION: |
|
| These
accounts have been prepared under the historical cost convention. |
|
|
| 2.2
FIXED CAPITAL EXPENDITURE AND DEPRECIATION: |
|
| (a)
Fixed assets are stated at cost less accumulated depreciation except |
|
| leasehold
land, crockery and cutlery, uniform and linen which are stated |
|
| at cost. |
|
|
| (b)
Depreciation is charged to income applying the reducing balance method. |
|
| Crockery
and cutlery, linen & staff uniform are charged to income on |
|
| replacement
basis. |
|
|
| (c)
All repairs & maintenance are expensed, except major repairs which are |
|
| amortized over a maximum period of three
years. |
|
|
| (d)
No depreciation is provided on assets in the year in which these are sold |
|
| while
charge for the full year is made in the year in which these are |
|
| purchased. |
|
|
| 2.3
TAXATION: |
|
