| Annual Report 1996 |
|
|
|
|
|
|
|
|
|
| Lucky
Cement Limited |
|
|
| Concrete
Progress |
|
|
| COMPANY
INFORMATION |
|
|
| BOARD
OF DIRECTORS |
|
| Abdul
Razzak Tabba (Chairman) |
|
| Muhammad
Yunus |
|
| Razi-ur-Rehman
(Nominee of NIT) |
|
| Haji
Abdul Razzak |
|
| Martyn
S. Wells |
|
| Muhammad
Sohail |
|
| Muhammad
All |
|
| Imran Yunus |
|
|
| CHIEF
EXECUTIVE |
|
| Abdul
Razzak Tabba |
|
|
| COMPANY
SECRETARY & SR. MANAGER FINANCE |
|
| Muhammad
Abid Ganatra |
|
| ACA.
ACMA, ACIS |
|
|
|
| AUDITORS |
|
| M.
Yousuf Adil & Co., |
|
| Chartered
Accountants |
|
|
| LEGAL
ADVISOR |
|
| Bawaney
& Partners |
|
|
| BANKERS |
|
| Citibank
N.A. |
|
| Habib
Bank AG Zurich |
|
| Metropolitan
Bank Limited |
|
| Muslim
Commercial Bank Limited |
|
| Soneri
Bank Limited |
|
|
|
| REGISTERED
OFFICE |
|
| Pezu,
District Lakki Marwat, N.W.F.P. |
|
|
| HEAD OFFICE |
|
| 6-A
Muhammad All Housing Society, |
|
| A.
Aziz Hashim Tabba Street, |
|
| Karachi
-75350 |
|
|
| ISLAMABAD
OFFICE |
|
| 3rd
Floor, Kulsum Plaza, |
|
| 42
Blue Area, Islamabad. |
|
|
| FACTORY |
|
| Pezu,
District Lakki Marwar, NWFP. |
|
|
| NOTICE
OF 3RD ANNUAL GENERAL MEETING |
|
| Notice
is hereby given that the 3rd Annual General Meeting of the members of
"Lucky Cement |
|
| Limited
"will be held on Tuesday, the 31 st December, 1996 at 12:30 p.m. at the
registered office |
|
| of
the Company at factory premises, Pezu, District Lakki Marwar, N.W.F.P. to
transact the following |
|
| business: |
|
|
| 1.
To confirm the minutes of the 2nd Annual General Meeting held on 30th
October, 1995. |
|
|
| 2.
To receive, consider and adopt the audited accounts for the year ended June
30, 1996 together |
|
| with the Directors' and Auditors' report
thereon. |
|
|
| 3.
To appoint Auditors and fix their remuneration for the year 1996-97. The
present Auditors, |
|
| Messrs M. Yousuf Adil & Co., Chartered
Accountants, retire and being eligible, offer themselves |
|
| for reappointment. |
|
|
| 4.
To transact any other business with the permission of the Chair. |
|
|
| By
Order of the Board. |
|
| Muhammad
Abid Ganatra |
|
| Company
Secretary |
|
|
|
|
| Notes: |
|
| 1.
The Share Transfer Books of the Company will be closed from 24th December,
1996 to 31 st |
|
| December,
1996 (both days inclusive) for the purpose of 3rd Annual General Meeting. |
|
|
|
|
| 2.
A member entitled to attend and vote may appoint another member as his/her
proxy to attend |
|
| and vote instead of him/her. Proxies must
be received at the Registered Office of the Company |
|
| not less than 48 hours before the time of
holding the meeting. |
|
|
| 3.
The members are requested to notify change in their address, if any, to the
Company's shares |
|
| department at 404, 4th Floor, Trade Tower,
Abdullah Haroon Road, Karachi. |
|
|
| DIRECTORS
REPORT |
|
| The
directors are pleased to present their Third Annual Report together with the
Audited Accounts |
|
| and
Auditors Report thereon for the financial year ending on 30th June, 1996. |
|
|
| By
the Grace of Almighty, the Company started trial production in June, 1.996.
The marketing of |
|
| cement
was started on 26th June, 1996 on limited scale. The trial production and
marketing of the |
|
| product
continued till the end of August, 1996. During this trial period the company
sold more than |
|
| 19000
metric tons of cement which was well received in the market. The quality of
the Cement with |
|
| regards
to strength, setting time and fineness was found to be very good. The 28 days
compressive |
|
| strength
was more than 7500 PSI against PSS requirement of 5000 PSI. |
|
|
| Unfortunately
the production had to be stopped in the end of August, 1996 due to some
technical |
|
| problems
in the civil foundation of certain equipments. In order to avoid
possibilities of any damage |
|
| to
the equipments and to ensure that there is no impediment in the fulfillment
of machinery supplier's |
|
| contractual
obligation about Performance Guarantees, we decided to shut down the
production and |
|
| started
remedial measures for reinforcement of the foundations. The remedial measures
have been |
|
| designed
by National Engineering Service Pakistan (Pvt.) Ltd.(NESPAK) and are already
under |
|
| implementation.
It is expected that the measures will be completed by the end of February,
1997 |
|
| enabling
the company to achieve normal production of its 4000 tons per day capacity. |
|
|
| In
the meantime, the plant has already started partial production of clinker in
the second half of |
|
| November,
1996. The production of cement was started on 1 st December, 1996 and the
dispatches |
|
| to
market have been resumed on 7th December, 1996. It is hoped that regular
partial commercial |
|
| production
will start before the end of December, 1996. |
|
|
| AUDITORS |
|
| The
auditors, M.Yusuf Adil & Co., Chartered Accounts retire and being
eligible offer themselves |
|
| for
reappointment. |
|
|
|
| PATTERN
OF SHAREHOLDING |
|
| The
pattern of Share Holding as on 30th June, 1996 is annexed to this report |
|
|
|
| SUBSIDIARY |
|
| The
audited accounts of the Lucky Powertech Limited, the company's wholly owned
subsidiary, for |
|
| the
year ended 30th June, 1996 are annexed to this report. |
|
|
|
| ACKNOWLEDGMENT |
|
| We
take this opportunity to express our sincere thanks to all suppliers,
contractors and government |
|
| agencies
for their support and co-operation. |
|
|
| We
also appreciate the untiring efforts made by the dedicated team of the
company's managers, |
|
| technicians
and workers for the early completion of the project and expect them to
continue to work |
|
| with
the same zeal in future. |
|
|
| For
and on behalf of the Board |
|
| ABDUL
RAZZKA TABBA |
|
| Chairman
& Chief Executive |
|
|
|
|
| PATTERN
OF SHAREHOLDING AS AT JUNE 30, 1996 |
|
|
| NUMBER OF |
|
|
SHARE HOLDING |
|
|
TOTAL SHARES |
|
| SHARE
HOLDERS |
FROM |
|
TO |
|
HELD |
|
|
| 146 |
|
1 |
-- |
100 |
|
14,600 |
|
| 42090 |
|
101 |
-- |
500 |
|
20,979,300 |
|
| 239 |
|
501 |
-- |
1000 |
|
239,000 |
|
| 341 |
|
1001 |
-- |
5000 |
|
1,107,700 |
|
| 186 |
|
5001 |
-- |
10000 |
|
1,692,100 |
|
| 45 |
|
10001 |
-- |
15000 |
|
596,100 |
|
| 39 |
|
15001 |
-- |
20000 |
|
744,300 |
|
| 29 |
|
20001 |
-- |
25000 |
|
717,100 |
|
| 25 |
|
25001 |
-- |
30000 |
|
734,000 |
|
| 4 |
|
30001 |
-- |
35000 |
|
128,000 |
|
| 4 |
|
35001 |
-- |
40000 |
|
157,500 |
|
| 6 |
|
45001 |
-- |
50000 |
|
300,000 |
|
| 1 |
|
55001 |
-- |
60000 |
|
59,000 |
|
| 1 |
|
60001 |
-- |
65000 |
|
64,000 |
|
| 1 |
|
65001 |
-- |
70000 |
|
70,000 |
|
| 8 |
|
70001 |
-- |
75000 |
|
596,500 |
|
| 3 |
|
75001 |
-- |
80000 |
|
235,700 |
|
| 1 |
|
85001 |
-- |
90000 |
|
89,200 |
|
| 1 |
|
90001 |
-- |
95000 |
|
91,600 |
|
| 10 |
|
95001 |
-- |
100000 |
|
991,700 |
|
| 1 |
|
100031 |
-- |
105000 |
|
102,500 |
|
| 1 |
|
115001 |
-- |
120000 |
|
119,000 |
|
| 1 |
|
120001 |
-- |
125000 |
|
125,000 |
|
| 1 |
|
125001 |
-- |
130000 |
|
127,900 |
|
| 1 |
|
145001 |
-- |
150000 |
|
150,000 |
|
| 3 |
|
195001 |
-- |
200000 |
|
600,000 |
|
| 2 |
|
210001 |
-- |
215000 |
|
428,700 |
|
| 2 |
|
245001 |
-- |
250000 |
|
500,000 |
|
| 2 |
|
265001 |
-- |
270000 |
|
537,000 |
|
| 1 |
|
365001 |
-- |
370000 |
|
369,000 |
|
| 3 |
|
395001 |
-- |
400000 |
|
1,200,000 |
|
| 3 |
|
495001 |
-- |
500000 |
|
1,500,000 |
|
| 1 |
|
535001 |
-- |
540000 |
|
536,700 |
|
| 1 |
|
645001 |
-- |
650000 |
|
647,300 |
|
| 1 |
|
815001 |
-- |
820000 |
|
815,500 |
|
| 1 |
|
935001 |
-- |
940000 |
|
937,500 |
|
| 1 |
|
970001 |
-- |
975000 |
|
971,300 |
|
| 2 |
|
995001 |
-- |
1000000 |
|
1,999,500 |
|
| 1 |
|
1070001 |
-- |
1075000 |
|
1,073,000 |
|
| 1 |
|
1200001 |
-- |
1205000 |
|
1,201,200 |
|
| 1 |
|
1300001 |
-- |
1305000 |
|
1,302,500 |
|
| 3 |
|
1345001 |
-- |
1350000 |
|
4,045,200 |
|
| 1 |
|
1425001 |
-- |
1545000 |
|
1,543,300 |
|
| 1 |
|
1540001 |
-- |
1545000 |
|
1,543,300 |
|
| 1 |
|
1995001 |
-- |
2000000 |
|
2,000,000 |
|
| 1 |
|
2065001 |
-- |
2070000 |
|
2,070,000 |
|
| 1 |
|
2270001 |
-- |
2275000 |
|
2,272,720 |
|
| 2 |
|
2495001 |
-- |
2500000 |
|
5,000,000 |
|
| 2 |
|
2545001 |
-- |
2550000 |
|
5,100,000 |
|
| 2 |
|
3045001 |
-- |
3050000 |
|
6,100,000 |
|
| 1 |
|
3995001 |
-- |
4000000 |
|
4,000,000 |
|
| 1 |
|
4495001 |
-- |
4500000 |
|
4,500,000 |
|
| 1 |
|
4545001 |
-- |
4550000 |
|
4,545,450 |
|
| 2 |
|
4995001 |
-- |
5000000 |
|
10,000,000 |
|
| 1 |
|
6205001 |
-- |
6210000 |
|
6,206,900 |
|
| 1 |
|
6695001 |
-- |
6700000 |
|
6,700,000 |
|
| 1 |
|
7145001 |
-- |
7150000 |
|
7,150,000 |
|
| 1 |
|
8330001 |
-- |
8335000 |
|
8,333,350 |
|
| 1 |
|
14385001 |
-- |
14390000 |
|
14,387,600 |
|
| 1 |
|
19915001 |
-- |
19920000 |
|
19,916,000 |
|
| 2 |
|
21210001 |
-- |
21215000 |
|
42,424,240 |
|
| 1 |
|
42420001 |
-- |
42425000 |
|
42,424,240 |
|
| -------- |
|
|
|
------------- |
|
| 43299 |
|
245,000,000 |
|
| ========= |
|
============ |
|
|
|
| S. NO. |
CATEGORIES OF |
|
NUMBER OF |
|
TOTAL |
|
PERCENTAGE |
|
|
SHAREHOLDERS |
|
SHARE HOLDERS |
|
SHARES |
|
HELD |
|
|
|
|
|
|
|
|
|
| 1. |
Individuals |
|
43239 |
|
86,035,170 |
|
35.12 |
|
| 2. |
Investment Companies |
|
21 |
|
104,638,230 |
|
42.71 |
|
| 3. |
Insurance Companies |
|
4 |
|
78,400 |
|
0.03 |
|
| 4. |
Joint Stock Companies |
|
18 |
|
27,773,300 |
|
11.34 |
|
| 5. |
Financial Institutions |
8 |
|
25,362,900 |
|
10.35 |
|
| 6. |
Modaraba Companies |
|
7 |
|
1,009,500 |
|
0.41 |
|
| 7. |
Others |
|
2 |
|
102,500 |
|
0.04 |
|
| -------- |
-------- |
-------- |
-------- |
-------- |
-------- |
-------- |
-------- |
-------- |
|
|
Total |
|
43,299 |
|
245,000,000 |
|
100.00 |
|
| ========= |
========= |
========= |
========= |
========= |
========= |
========= |
========= |
========= |
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
| We
have audited the annexed balance sheet of Lucky Cement Limited as at June 30,
1996 and the |
|
| statement
of chanses in financial position (cash flow statement) together with the
notes forming |
|
| part
thereof, for the year ended on that date 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 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 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 and the statement of
changes in financial position (cash flow statement) |
|
| together with the notes thereon give the
information required by the Companies Ordinance, |
|
| 1984, in the manner so required and
respectively give a true and fair view oŁ the state of the |
|
| Company's affairs as at June 30, 1996 and
the changes in financial position For the year then |
|
| ended; and |
|
|
| d)
in our opinion, no Zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
|
|
| M.YOUSUF
ADIL & CO., |
|
| Chartered
Accountants |
|
|
| BALANCE
SHEET AS AT JUNE 30, 1996 |
|
|
|
Note |
Amount in Rs. "000" |
|
|
|
|
1996 |
1995 |
|
| CAPITAL
AND LIABILITIES |
|
|
|
| SHARE
CAPITAL AND RESERVE |
|
|
|
| Authorised |
|
| 300,000,000
ordinary shares |
|
| of
Rs. 10/= each |
|
|
|
3,000,000 |
3,000,000 |
|
|
|
|
|
============ |
========== |
|
|
| Issued,
subscribed and paid-up capital |
|
3 |
2,450,000 |
2,450,000 |
|
| Capital
reserve |
|
|
4 |
990,000 |
990,000 |
|
|
------------ |
---------- |
|
|
|
3,440,000 |
3,440,000 |
|
|
| LONG
TERM LOAN |
|
|
5 |
521,323 |
- |
|
|
|
|
|
|
| DEFERRED
LIABILITY |
|
|
6 |
2,194 |
875 |
|
|
|
|
| LONG
TERM DEPOSITS |
|
|
7 |
31,525 |
- |
|
|
|
| CURRENT
LIABILITIES |
|
|
| Creditors,
accrued and other liabilities |
|
8 |
161,479 |
439,163 |
|
|
|
|
| CONTINGENCIES
AND COMMITMENTS |
|
|
9 |
|
|
------------ |
---------- |
|
|
|
4,156,521 |
3,880,038 |
|
|
|
============ |
=========== |
|
|
| The
Annexed notes from 1 to 24 form an integral part of these accounts. |
|
|
|
|
Note |
Amount in Rs. "000" |
|
|
|
1996 |
1995 |
|
| ASSETS |
|
|
|
| FIXED
CAPITAL EXPENDITURE |
|
| Operating
assets |
|
|
10 |
3,600,464 |
28,091 |
|
| Capital
work in progress |
|
|
11 |
117,454 |
2,629,038 |
|
|
------------ |
---------- |
|
|
|
3,717,948 |
2,657,129 |
|
|
|
| LONG
TERM INVESTMENT |
|
|
12 |
172,500 |
100,000 |
|
|
|
|
| DEFERRED
COSTS |
|
|
13 |
54,352 |
43,553 |
|
|
|
| CURRENT
ASSETS |
|
| Stores
and spares |
|
|
43,696 |
-- |
|
| Stock
in trade |
|
|
14 |
5,303 |
-- |
|
| Trade
debtors |
|
|
15 |
1,902 |
-- |
|
| Loans
and advances |
|
|
16 |
52,150 |
15,561 |
|
| Deposits
and prepayments |
|
|
17 |
3,994 |
3,120 |
|
| Other
receivables |
|
|
18 |
46,105 |
45,612 |
|
| Cash
and bank balances |
|
|
19 |
58,601 |
1,015,063 |
|
|
|
|
------------ |
---------- |
|
|
|
|
211,751 |
1,079,356 |
|
|
|
|
|
|
|
------------ |
---------- |
|
|
|
|
|
4,156,521 |
3,880,038 |
|
|
============ |
============ |
|
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
|
| (CASH
FLOW STATEMENT) |
|
| FOR THE YEAR ENDED JUNE 30,
1996 |
|
|
Amount in Rs. "000" |
|
|
|
|
1996 |
1995 |
|
| A.
CASH FROM INVESTING ACTIVITIES |
|
| Fixed
capital expenditure |
|
|
(1,059,972) |
(2,266,960) |
|
| Sale
proceed of fixed assets |
|
|
480 |
1,212 |
|
| Loss/(Gain)
on sale of fixed assets |
|
|
22 |
(215) |
|
| Long
term investment |
|
|
(72,500) |
(100,000) |
|
| Deferred
costs |
|
|
(10,799) |
(34,447) |
|
| Movement
in working capital |
|
|
(366,541) |
418,680 |
|
|
|
|
|
|
| Net
cash used in investing activities |
|
|
(1,509,310) |
(1,976,730) |
|
|
|
|
============ |
========== |
|
|
|
|
| B.
CASH FROM FINANCING ACTIVITIES |
|
| Proceed
from issue of share capital/share premium |
|
-- |
1,297,482 |
|
| Long
term loan |
|
|
521,323 |
-- |
|
| Long
term deposits |
|
|
31,525 |
-- |
|
|
|
|
------------ |
---------- |
|
| Net
cash from financing activities |
|
|
552,848 |
1,297,482 |
|
|
|
|
| Net
increase/(decrease) in cash |
|
|
| and
cash equivalents (A+B) |
|
|
(956,462) |
(679,248) |
|
|
|
|
| Cash
& cash equivalents at the beginning of the year |
|
1,015,063 |
1,694,311 |
|
|
|
|
------------ |
---------- |
|
| Cash
and cash equivalents at the end of the year |
|
58,601 |
1,015,063 |
|
|
|
|
============ |
========== |
|
|
|
|
| Movement
in Working Capital |
|
| (Increase)/Decrease
in current assets |
|
| Stores
and spares |
|
|
(43,696) |
-- |
|
| Stock
in trade |
|
|
(5,303) |
-- |
|
| Trade
debtors |
|
|
(1,902) |
-- |
|
| Loans
and advances |
|
|
(36,589) |
(12,522) |
|
| Deposits
and prepayments |
|
|
(874) |
(2,677) |
|
| Short
term investment |
|
|
-- |
39,000 |
|
| Other
receivables |
|
|
(493) |
(38,358) |
|
|
| Increase/(Decrease)
in current liabilities |
|
| creditors,
accrued and other liabilities |
|
|
(277,684) |
433,267 |
|
|
|
|
------------ |
------------ |
|
|
|
|
(366,541) |
418,680 |
|
|
============ |
========== |
|
|
| NOTES
TO THE ACCOUNTS FOR THE YEAR ENDED |
|
| JUNE
30,1996 |
|
|
| 1.
STATUS AND ACTIVITIES |
|
| 1.1
The Lucky Cement Limited was incorporated in Pakistan on September 18, 1993
under |
|
| the
Companies Ordinance, 1984. The shares of the Company are quoted on the Stock |
|
| Exchanges
of Pakistan. The project is located at District Lakki Marwat in North West |
|
| Frontier
Province. The principal activity of the Company is the manufacture and sale
of |
|
| Cement. |
|
|
|
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
|
| 2.1
Accounting convention |
|
| These
accounts have been prepared under the historical cost convention. |
|
|
|
|
| 2.2
Staff retirement benefits |
|
| The
Company operates an unfunded gratuity scheme for all its employees. Annual
provisions |
|
| are
made in the accounts to cover this obligation. |
|
|
|
|
| 2.3
Taxation |
|
| Current |
|
| Provision
for current taxation is based on current rates of tax after taking into
account tax |
|
| rebates
and credits available, if any. |
|
|
|
|
| Deferred |
|
| The
Company accounts for deferred tax on all material timing differences using
the liability |
|
| method.
However, deferred tax is not provided if it can be established with
reasonable |
|
| certainty
that these timing differences will not reverse in the foreseeable future. |
|
|
|
|
| 2.4
Operating assets |
|
| These
are stated at cost less accumulated depreciation except freehold land which
is |
|
| stated
at cost. |
|
|
|
|
| Depreciation
is charged to income applying the reducing balance method at the rates |
|
| mentioned
in the relevant note. Depreciation on additions during the year is charged on |
|
| the
basis of whole year while no depreciation is charged on deletion during the
year. |
|
|
| Maintenance
and normal repairs are charged to income. Major renewals and improvements |
|
| are
capitalised. |
|
|
|
|
| Gains
and losses on disposal of fixed assets are allocated to reproduction expenses
till |
|
| commercial
production commences and thereafter to profit and loss account. |
|
|
|
| 2.5
Capital work in progress |
|
| All
cost/expenditure directly related to specific assets incurred during project |
|
| implementation
period are carried under this head. These are transferred to specific |
|
| assets
as and when assets are available for use. |
