| Al-Ghazi Tractors Limited |
|
|
|
|
|
|
|
| Producers
of Fiat Tractors in Pakistan |
|
|
(Annual Report 1995-96) |
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|
|
CONTENTS |
|
|
| Company
Information |
|
3 |
|
| Notice
of Annual General Meeting |
4 |
|
| Chairman's
Review |
|
6 |
|
| Directors'
Report |
|
13 |
|
| Decade
at a Glance |
|
15 |
|
| Auditors'
Report to the Members |
19 |
|
| Balance Sheet |
|
20 |
|
| Profit
& Loss Account |
|
22 |
|
| Cash
Flow Statement |
|
23 |
|
| Notes
to the Accounts |
|
24 |
|
| Pattern
of Shareholdings |
|
40 |
|
| Form of Proxy |
|
|
|
|
COMPANY INFORMATION |
|
|
| Board
of Directors |
|
Auditors |
|
| KUNWAR
IDRIS - CHAIRMAN |
|
A.E FERGUSON & CO. |
|
| PARVEZ
ALI - CHIEF EXECUTIVE |
Legal Advisors |
|
| KEITH
S. STACK |
|
SURRIDGE & BEECHENO |
|
| SHAH
JALIL ALAM |
|
Tax Advisors |
|
| HASAN IRSHAD |
|
FORD, RHODES, ROBSON, |
|
| A.K.M. SAYEED |
|
MORROW |
|
| NAZIR
A. SHAIKH |
|
Bankers |
|
| MARLO CHESSA |
|
HABIB BANK LTD. |
|
| Company
Secretary |
|
SOCIETE GENERALE |
|
| SALEEM ADIL |
|
STANDARD CHARTERED BANK |
|
|
| KARACHI: |
|
| Registered
Office - 11th Floor, NIC Building, Abbasi Shaheed Road, Karachi 74400. |
|
| Telephone:
(92.021 ) 5660881-5. Telefax: (92.021 ) 5689387. |
|
|
| LAHORE |
|
| Delivery
Centre - 10 km Sheikhupura Road, Lahore. |
|
| Telephone:
(92.042) 270081, 271059, 272226, 7924676-7. Telefax: (92.042) 272257. |
|
|
| ISLAMABAD |
|
| Flat
No. 8, 2nd Floor, Malik Complex, Shahrahe Quaid-e-Azam, |
|
| Blue
Area, Sector F-7 & G-7, Islamabad. |
|
| Telephone:
(92.051 ) 829895, 272866. Telefax: (92.051) 272377. |
|
|
| PESHAWAR |
|
| Suite
No. 205 A, City Tower, University Road, Peshawar. |
|
| Telephone:
(92.0521) 842315, 841823. |
|
|
| MULTAN |
|
| Delivery
Centre - 20 Industrial Estate, Multan. |
|
| Telephone:
(92.061) 539557-9. Telefax: (92.061) 539241. |
|
|
| DERA
GHAZI KHAN |
|
| Factory
- P.O. Box 38, Sakhi Sarwar Road, Dera Ghazi Khan. |
|
| Telephone:
(92.0641) 63159, 63805, 63750. Telefax: (92.0641) 62117. |
|
|
| SUKKUR |
|
| C/631/3,
Minara Road, Sukkur |
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|
|
|
NOTICE OF ANNUAL GENERAL
MEETING |
|
|
| Notice
is hereby given that the Thirteenth Annual General Meeting of Al-Ghazi |
|
| Tractors
Limited will be held at Hotel Pearl Continental, Karachi on Wednesday, |
|
| December
04, 1996 at 03.00 p.m. to transact the following business: |
|
|
| Ordinary
Business |
|
|
| 1.
To receive and consider the audited Accounts, the Directors' report and the
Auditors' |
|
| report
for the year ended June 30, 1996. |
|
|
| 2.
To declare the final cash dividend. (The Directors have recommended a final |
|
| dividend
of 35% i.e. Rs. 1.75 per share issued, in addition to 15% i.e. Rs. 0.75 per |
|
| share
already paid as interim dividend, making a total cash dividend of 50% i.e.
Rs. |
|
| 2.50
per share). |
|
|
| 3.
To elect 8 Directors of the company in accordance with the provisions of
Section 178 |
|
| of the Companies Ordinance 1984 for a
period of 3 years commencing from |
|
| December 5, 1996 in place of the present
Directors namely, Mr. Kunwar Idris, Mr. |
|
| Keith S. Stack, Mr. Parvez Ali, Mr. Hasan
Irshad, Mr. Mario Chessa, Mr. Shah Jalil |
|
| Alam, Mr. A.K.M.Sayeed and Mr. Nazir A.
Shaikh. |
|
|
| 4.
To appoint Auditors for the year ending June 30, 1997 and to fix their
remuneration. |
|
| The retiring Auditors M/s. A. E Ferguson
& Co., being eligible, offer themselves for |
|
| re-appointment. |
|
|
| Special
Business |
|
|
| 5.
To approve issue of bonus shares and in this regard to pass the following
special |
|
| resolutions. |
|
|
| "RESOLVED
THAT a sum of Rs. 7,373,435 out of the Free Reserves of the company |
|
| be
capitalised and applied to the issue of 1,474,687 ordinary shares of Rs. 5
each and |
|
| allocated
as fully paid up bonus shares to the members whose names appear in the |
|
| register
of the members at the close of business on November 19, 1996 in the |
|
| proportion
of one share for every ten existing shares held and that such new shares |
|
| shall
rank pari passu with the existing ordinary shares of the company but shall
not |
|
| be
eligible for dividend in respect of the year ended June 30, 1996. |
|
|
| FURTHER
RESOLVED THAT in the event of any member holding shares which are |
|
| not
an exact multiple of 10, the Directors be and are hereby authorised to sell
in the |
|
| stock
market such fractional entitlement and to pay the proceeds ~f sale when |
|
| realized
to a charitable institution." |
|
|
|
|
NOTICE OF ANNUAL GENERAL
MEETING |
|
|
| 6.
To approve increase in the company's authorised capital from Rs. 100 million
to |
|
| Rs. 200 million and to pass the following
special resolution in this respect: |
|
| "RESOLVED THAT the figures and words
"Rs. 100,000,000 divided into 20,000,000 |
|
| shares of Rs. 5 each" appearing in
Clause V of the Memorandum of Association and |
|
| in Article 5 (a) of the Articles of
Association of the company be and are hereby |
|
| substituted by the figures and words
"Rs. 200,000,000 divided into 40,000,000 shares |
|
| of Rs. 5 each." |
|
|
By Order of the Board |
|
| Karachi, |
|
Saleem Adil |
|
| November
10, 1996 |
|
Company Secretary |
|
|
|
|
Statement under Section
160 of the Companies Ordinance 1984 |
|
|
| 1.
The Directors consider it advisable to capitalise a sum of Rs. 7,373,435
which they |
|
| have set aside in a special Reserve for
issue of bonus shares. |
|
|
| 2.
The company's authorised capital of Rs. 100 million needs to be increased to
keep |
|
| pace with future requirements of
capitalization. It is, therefore, proposed to increase |
|
| the authorised capital from Rs.100 million
to Rs.200 million. |
|
|
| Notes: |
|
| 1.
Members who intend to offer themselves for election as Directors shall file
with the |
|
| company
at its registered office not later than fourteen days before the date of the |
|
| meeting,
notice of their intention to offer themselves for election as Director. |
|
|
| 2.
A member entitled to attend and vote at this meeting is entitled to appoint a
proxy |
|
| to
attend and vote on his/her behalf. No person shall act as a proxy (except for
a |
|
| corporation)
unless he is entitled to be present and vote in his own right. Proxies, in |
|
| order
to be effective, must be received at the registered office of the company
duly |
|
| stamped
and signed nor less than 48 hours before the time of the meeting. |
|
|
| 3.
The Share Transfer Books of the company will remain closed from November 20
to |
|
| December 04, 1996 (both days inclusive). |
|
|
| 4.
Members are requested to promptly communicate to the company any change in
their |
|
| addresses. |
|
|
|
|
CHAIRMAN'S REVIEW |
|
|
| I
welcome you to the Thirteenth Annual General Meeting of Al-Ghazi Tractors
Limited, |
|
| and
present the Annual Report of your Company for the year ended June 30, 1996. |
|
|
| Operating
Results |
|
| The
Company recorded a pre-tax profit of Rs. 171.9 million - a decline from the
record |
|
| profit
of Rs. 259.9 million - achieved in 1994-95, but the latter included
exceptional |
|
| credits. |
|
|
| A
larger number of tractors - 6,617 units - was delivered than 6,420 units
delivered in the |
|
| previous
year, but the gross profit margin declined from 14.7% to 10.0% reflecting the |
|
| impact
of a raft of unavoidable cost increases, especially the sudden imposition in |
|
| October
1995 of 10% regulatory duty coupled with a 7% devaluation of the rupee, which |
|
| was
followed by further creeping devaluation. It was not possible to pass on all
these costs |
|
| by
way of immediate increase in selling prices, although the Company ultimately
had to |
|
| increase
prices in the range of 5 to 8% in addition to price adjustments to absorb the |
|
| impact
of regulatory duty and devaluation. The Company also had to absorb inevitable |
|
| price
increases, imposed for the same reasons, by local vendors. Margins would have
been |
|
| further
squeezed but for management's successful efforts in increasing productivity, |
|
| exercising
tight control on manufacturing overheads and lean inventory management, |
|
| which
ensured a strong positive cash flow, thus minimizing financial charges.
Following |
|
| major
cost savings in local inputs by bringing in house the assembly of engines and |
|
| steering
gear in previous years, the Company this year set up in house assembly of the |
|
| high
value hydraulic lift at minimum set up cost, which resulted in substantial
cost |
|
| savings. |
|
|
| During
the year, the Company completed repayment of its long term loan, obtained
from |
|
| NDFC
in 1985 and is, thus, now totally debt free. As noted above, lean management
of |
|
| current
assets resulted in the accrual of cash balance at the year end totalling Rs.
578 |
|
| million. |
|
|
| Sales
and Production |
|
| The
market share of the Company in terms of bookings remained steady at 40.5%. In |
|
| terms
of deliveries share increased from 37.1% last year to 40.6% this year. |
|
|
| Having
been consistently available for financing of customers' purchases over recent |
|
| years,
loans from ADBP suffered various interruptions during the year. Bookings via |
|
| ADBP
for the whole industry reached only 7,059 units compared with over 20,000 in
the |
|
| previous
year. Of the 5,843 tractors booked with the Company during 1995-96, only |
|
| 3,074
units were booked through ADBE Fortunately, the Company was able to secure |
|
| cash
bookings for 2,769 units so that, whereas, ADBP financing used to account for |
|
| almost
100% of the industry's support, in the year under review it declined to less
than |
|
| 50%.
The emergence of this cash market enabled the Company's net sales to reach
Rs. |
|
| 2,265
million - an increase of 11.6% over last year. Even better results could have
been |
|
| achieved
had not the Company faced the frustration of short supply of local components |
|
| and
slow issue of bank drafts from ADBP. As a result, no less than 2,491 orders
remained |
|
| pending
for delivery at the close of the financial year. |
|
|
| Awami
Tractor Scheme |
|
| The
Awami Tractor Scheme continued to be a disturbing feature in the tractor
market |
|
| throughout
the year. I reported last year that the Company had received a letter of
intent |
|
| for
the supply of 5,000 tractors under the scheme, along with other local
manufacturers. |
|
| However,
the local manufacturers have not yet been inducted into the scheme, leaving |
|
| the
ATS importers of built-up units to enjoy the fruits of 100% exemption from
customs |
|
| duty
and sales tax whilst the Company continued to bear customs and regulatory
duty and |
|
| sales
tax on all imports. |
|
|
| The
second phase of the scheme is now being launched by the Ministry of Food
& |
|
| Agriculture,
which has placed an order on the Company for the supply of 5,000 tractors |
|
| under
the scheme. With constant changes to the scheme, the outcome of this order |
|
| remains
unclear. Management is tracking events minutely and will ensure that the |
|
| Company
makes use of whatever opportunities may arise. |
|
|
| Fiat-Ford
Merger - New Holland |
|
| Following
the acquisition of the Ford tractor business by the Fiat Group, in 1995 our
joint |
|
| venture
partners - Fiatgeotech - now renamed "New Holland" - introduced 22
new or |
|
| renewed
products in 70 different models across 78 countries. This uniquely broad
range |
|
| presents
new opportunities for the Company which are under active discussion with our |
|
| principals. |
|
|
| Dera
Ghazi Khan |
|
| Massive
public development works in Dera Ghazi Khan continue. Communications with |
|
| our
plant were greatly eased by the opening in June 1996 of the new Dera Ghazi
Khan |
|
| Airport
located around 5 kms. from the AGTL Plant. This will give a further boost to |
|
| economic
activity in the area which is witnessing a boom of infrastructural
development |
|
| including
a network of roads, bridges, sewerage installation, parks and schemes to
combat |
|
| the
menace of hill torrents in the region. All these developments will go to
enhance the |
|
| value
of AGTL's real estate holdings. |
|
|
| At
the Plant, for the welfare of the Company staff and their families, a 200
kilowatt |
|
| generator
set is being added to meet the increased power load in the residential colony |
|
| and
UV filters are being installed to ensure a constant supply of clean drinking
water. A |
|
| waste
water treatment plant is also planned to recycle the sewerage from the
colony. The |
|
| sewerage
water would be utilized for plantation in the colony. |
|
|
| Management
Development and Training |
|
| The
Company's commitment to constant management development through training |
|
| continued
during the year with numerous courses conducted at the Company's training |
|
| centre
at Dera Ghazi Khan. The Company's management information systems are being |
|
| re-engineered
with state-of-the-art computer systems to provide optimum information for |
|
| corporate
decision making. |
|
|
| Appropriation |
|
| Reflecting
the stability of profit generation, the Board had declared, for the first
time in |
|
| the
history of the Company, an interim dividend of 15% in June 1996. The Board is
now |
|
| pleased
to recommend a final dividend of 35%, making a total of 50% on the equity |
|
| enhanced
by last year's bonus issue. |
|
|
| Continuing
the policy of enlarging the equity base, the Board is also pleased to |
|
| recommend
a bonus issue of one share for every ten shares held. |
|
|
| Future
Outlook |
|
| At
the time of writing, there has again been a hiatus in provision of financing
by ADBP |
|
| which
has adversely affected sales in the first few months of the new financial
year. |
|
| Production
levels have been maintained, however, and sufficient stocks built to take |
|
| advantage
of renewed ADBP financing and the re-emergence of cash buyers in the |
|
| coming
months. The Company still has substantial firm orders in hand and, given |
|
| availability
of financing and the possibility of supply under the Awami Tractor Scheme, |
|
| we
remain optimistic about the results of the current year. |
|
|
| Directors |
|
| Messrs
S. M. Ehtishamullah and Enrico Ferrero resigned from the Board during the
year, |
|
| and
Messrs Nazir A. Shaikh and Mario Chessa were appointed in their stead. I take
this |
|
| opportunity
to thank Mr. Ehtishamullah and Mr. E. Ferrero for their contribution during |
|
| their tenure. |
|
|
| Appreciation |
|
| I
conclude by recording the Board's appreciation to the Government and the ADBP
for |
|
| their
patronage of the tractor industry and would urge them to reinforce it by |
|
| discouraging
the import of built up tractors under special schemes. I also thank our |
|
| partners
and principals, New Holland, for their continued support. Thanks are also due |
|
| to
AGTL's dealers and vendors for their efforts. I especially thank our
customers for their |
|
| continued
patronage to ensure our success in the market place. The management and |
|
| staff
deserve special commendation for it is their dedication and effort which made |
|
| possible
the results achieved. |
|
|
|
Kunwar Idris |
|
| October
22, 1996 |
Chairman |
|
|
|
|
Financial Highlights |
|
|
1995 |
1994 |
|
|
(in millions of U.S.
dollars) |
|
|
| NET SALES |
|
5,003 |
4,715 |
|
| GROSS
PROFIT |
|
1,120 |
1,163 |
|
| INCOME
FROM OPERATIONS |
|
390 |
485 |
|
| NET INCOME |
|
235 |
356 |
|
| CAPITAL
EXPENDITURES |
|
|
|
| AND
R&D EXPENSES |
|
245 |
183 |
|
| BORROWINGS |
|
624 |
648 |
|
| EMPLOYEES
AT YEAR END |
|
18,820 |
19,661 |
|
|
|
|
DIRECTORS' REPORT |
|
|
| The
Directors of Al-Ghazi Tractors Limited take pleasure in presenting their
Annual |
|
| Report
together with the company's audited accounts for the year ended June 30,
1996. |
|
|
|
(Rs '000) |
|
|
|
|
| Profit
for the year before taxation |
|
17,189.30 |
|
| Less:
Provision for taxation |
|
64,292 |
|
|
--------- |
|
| Profit
after taxation |
|
107,601 |
|
| Unappropriated
profit brought forward |
|
1,220 |
|
|
--------- |
|
| Profit
available for appropriation |
|
108,821 |
|
| Less:
Appropriations |
|
| Dividend |
|
| Interim
@ 15% already paid |
11,060 |
|
| Final
@ 35% now proposed |
|
25,807 |
|
| Transfer
to Reserve for issue |
|
| of
bonus shares |
|
7,374 |
|
| Tax thereon |
|
737 |
|
| Transfer
to General Reserve |
60,000 |
104,978 |
|
|
--------- |
--------- |
|
| Unappropriated
profit carried forward |
|
3,843 |
|
|
========= |
|
|
|
|
| 1.
The retiring Auditors Messrs A.E Ferguson & Co., being eligible, offer
themselves for |
|
| re-appointment. |
|
|
| 2.
The pattern of shareholdings is included in this Annual Report. |
|
|
|
On behalf of the Board |
|
|
| Karachi, |
|
Kunwar Idris |
|
| October
22, 1996 |
Chairman |
|
|
|
DECADE AT A GLANCE |
|
|
|
|
|
1995-96 |
1994-95 |
1993-94 |
1992-93 |
1991-92 |
|
| Production: |
|
(Volume in units) |
|
| Model 480s |
|
4,415 |
4,400 |
3,686 |
4,101 |
2,595 |
|
| Model 640. |
|
2,202 |
2,015 |
1,861 |
2,081 |
732 |
|
|
--------- |
--------- |
--------- |
--------- |
--------- |
|
| Total
Production |
6,617 |
6,415 |
5,547 |
6,182 |
3,327 |
|
|
========= |
========= |
========= |
========= |
========= |
|
| Sales: |
|
| Model 480s |
|
4,415 |
4,401 |
3,906 |
3,905 |
2,566 |
|
| Model 640 |
|
2,202 |
2,019 |
1,892 |
2,046 |
824 |
|
| Model 300 |
|
- |
- |
- |
4 |
12 |
|
|
--------- |
--------- |
--------- |
--------- |
--------- |
|
|
Total Sales |
6,617 |
6,420 |
5,798 |
5,955 |
3,402 |
|
|
========= |
========= |
========= |
========= |
========= |
|
| Bookings: |
|
| - Industry |
|
14,419 |
21,739 |
17,522 |
13,464 |
14,527 |
|
| - AGTL |
|
5,843 |
8,693 |
6,839 |
3,944 |
5,509 |
|
| -
AGTL's share % |
40.50 |
40.00 |
39.00 |
29.30 |
37.90 |
|
|
| Sales Revenue |
|
|
(Value in Rs. 000) |
|
|
| Model 480s |
|
1,345,470 |
1,248,399 |
1,055,117 |
997,521 |
598,621 |
|
| Model 640 |
|
902,779 |
764,385 |
672,460 |
679,452 |
250,506 |
|
| Model 300 |
|
- |
- |
- |
249 |
851 |
|
| Spare Parts |
|
16,499 |
17,153 |
21,678 |
23,423 |
19,612 |
|
|
--------- |
--------- |
--------- |
--------- |
--------- |
|
|
2,264,748 |
2,029,937 |
1,749,255 |
1,700,645 |
869,590 |
|
|
========= |
========= |
========= |
========= |
========= |
|
| Deletion
Achieved: |
|
|
| Model
480s |
|
82% |
82% |
82% |
81% |
81% |
|
| Model 640 |
|
74% |
74% |
74% |
74% |
74% |
|
|
| Gross Margin: |
|
|
| Value |
|
225,422 |
298,948 |
275,135 |
196,194 |
25,678 |
|
| Percentage
of Sales |
10.00% |
14.70% |
15.70% |
11.50% |
2.90% |
|
|
| Profit/(Loss)
before tax |
171,893 |
259,859 |
166,191 |
102,521 |
(77,009) |
|
| Profit/(Loss)
after tax |
107,601 |
172,790 |
96,191 |
90,021 |
(82,291) |
|
| Capital
Expenditure |
25,528 |
9,050 |
17,919 |
5,551 |
5,122 |
|
|
| Dividend
(Cash & Stock) |
|
| Value |
|
44,241 |
45,375 |
24,956 |
10,313 |
- |
|
| Percentage |
|
60.00% |
80.00% |
55.00% |
25.00% |
- |
|
|
|
|
|
| Earning/(loss)
per share |
730 |
15.23 |
10.6 |
10.91 |
(9.97) |
|
|
|
1990-91 |
1989-90 |
1988-89 |
1987-88 |
1986-87 |
|
| Production: |
|
| Model 480s |
|
4,226 |
4,722 |
6,383 |
4,615 |
5,703 |
|
| Model 640. |
|
1,438 |
1,885 |
1,787 |
1,917 |
1,472 |
|
|
--------- |
--------- |
--------- |
--------- |
--------- |
|
| Total
Production |
5,664 |
6,607 |
8,170 |
6,532 |
7,175 |
|
|
========= |
========= |
========= |
========= |
========= |
|
| Sales: |
|
| Model 480s |
|
47 |
4,728 |
6,348 |
4,556 |
6,518 |
|
| Model 640 |
|
18 |
1,872 |
1,820 |
1,863 |
1,698 |
|
| Model 300 |
|
29 |
21 |
21 |
52 |
27 |
|
|
--------- |
--------- |
--------- |
--------- |
--------- |
|
|
Total Sales |
5,737 |
6,621 |
8,189 |
6,471 |
8,243 |
|
|
========= |
========= |
========= |
========= |
========= |
|
| Bookings: |
|
|
|
| - Industry |
|
12,387 |
19,526 |
21,870 |
26,008 |
26,214 |
|
| - AGTL |
|
4,958 |
6,715 |
6,134 |
9,438 |
8,923 |
|
| -
AGTL's share % |
40.00 |
34.40 |
28.00 |
36.30 |
34.00 |
|
|
| Sales Revenue |
|
|
(Value in Rs. 000) |
|
|
| Model 480s |
|
948,083 |
886,055 |
1,006,719 |
656,210 |
826,842 |
|
| Model 640 |
|
398,978 |
455,260 |
385,523 |
356,112 |
290,948 |
|
| Model 300 |
|
2,138 |
1,533 |
1,529 |
3,636 |
1,752 |
|
| Spare Parts |
|
27,579 |
26,637 |
23,966 |
26,335 |
18,522 |
|
|
--------- |
--------- |
--------- |
--------- |
--------- |
|
|
1,376,778 |
1,369,485 |
1,417,737 |
1,042,293 |
1,138,064 |
|
|
========= |
========= |
========= |
========= |
========= |
|
| Deletion
Achieved: |
|
|
|
|
| Model
480s |
|
81% |
79% |
77% |
71% |
58% |
|
| Model 640 |
|
71% |
58% |
56% |
40% |
30% |
|
|
| Gross Margin: |
|
|
| Value |
|
82,541 |
11,404 |
97,144 |
88,063 |
86,917 |
|
| Percentage
of Sales |
6.00% |
8.10% |
6.90% |
8.40% |
7.60% |
|
|
| Profit/(Loss)
before tax |
9,065 |
6,278 |
18,594 |
17,420 |
23,824 |
|
| Profit/(Loss)
after tax |
2,116 |
6,278 |
17,949 |
17,420 |
23,824 |
|
| Capital
Expenditure |
1,195 |
4,345 |
4,733 |
4,540 |
7,071 |
|
|
| Dividend
(Cash & Stock) |
|
| Value |
|
- |
6,187 |
10,313 |
8,250 |
12,375 |
|
| Percentage |
|
- |
15.00% |
25.00% |
20.00% |
30.00% |
|
|
|
|
| Earning/(loss)
per share |
-0.26 |
0.76 |
2.18 |
2.11 |
2.89 |
|
|
|
|
AUDITORS' REPORT TO THE
MEMBERS |
|
|
| We
have audited the annexed balance sheet of Al-Ghazi Tractors Limited as at
June |
|
| 1996
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 |
|
|
