| Chashma Sugar Mills Limited |
|
|
|
|
|
|
|
|
| Annual
Report 1998 |
|
|
|
| CONTENTS |
|
|
| Board
of Directors |
|
|
|
| Notice of Meeting |
|
|
|
| Directors'
Report |
|
|
|
| Pattern
of Share Holdings |
|
|
|
| Auditors'
Report |
|
|
|
| Balance
Sheet |
|
| Profit
and Loss Accounts |
|
|
|
| Cash
Flow Statement |
|
|
|
| Notes
to the Accounts |
|
|
|
| BOARD
OF DIRECTORS |
|
|
| CHAIRMAN |
|
|
KHAN AZIZ SARFARAZ |
|
| CHIEF
EXECUTIVE |
|
KHAN ABBAS SARFARAZ |
|
|
|
|
| DIRECTORS |
|
|
BEGUM ZARI SARFARAZ |
|
|
|
|
ABDUL QADAR KHATTAK |
|
|
|
|
BEGUM MEHMOODA SALIM KHAN |
|
|
|
|
MUHAMMAD RAFIQ KHAN |
|
|
|
|
ISKANDAR M. KHAN |
|
|
|
|
USMAN RASHID (NDFC) |
|
|
|
|
| SECRETARY/CONTROLLER
FINANCE |
MALIK MUHAMMAD ASLAM,
FCMA |
|
|
|
| AUDITORS |
|
|
MESSRS HAMEED CHAUDHRI
& CO. |
|
|
|
|
CHARTERED ACCOUNTANTS |
|
|
|
|
| REGISTERED
OFFICE |
|
GUNNER LANE, OFF 11-FORT |
|
|
|
|
ROAD, PESHAWAR CANTT |
|
|
|
|
| FACTORY |
|
|
DERA ISMAlL KHAN |
|
|
|
|
PHONE: 750090,750091 |
|
|
| SEVEN
YEARS' REVIEW |
|
|
|
|
|
CANE |
|
SUGAR |
|
| YEAR |
|
CRUSHED TONS |
RECOVERY % |
PRODUCED TONS |
|
| 1992 |
|
174,454 |
8.69 |
15,093 |
|
| 1993 |
|
328,422 |
8.43 |
27,699 |
|
| 1994 |
|
436,302 |
8.41 |
36,701 |
|
| 1995 |
|
507,706 |
8.66 |
44,001 |
|
| 1996 |
|
495,543 |
8.02 |
38,884 |
|
| 1997 |
|
370,489 |
7.72 |
28,616 |
|
| 1998 |
|
744,391 |
8.47 |
63,025 |
|
|
|
| NOTICE
OF MEETING |
|
|
| NOTICE
IS HEREBY GIVEN that the 11th Annual General Meeting of the |
|
| shareholders
of Chashma Sugar Mills Limited, will be held on 27th March 1999 at |
|
| 10.00
A.M. at the Registered Office of the Company at 11-Fort Road, Peshawar |
|
| for
transacting the following business:- |
|
|
| 1.
To confirm the minutes of the last meeting held on 31st March !998. |
|
|
|
|
| 2.
To receive and consider the audited accounts of the Company together |
|
| with
the Directors' and Auditors' reports for the year ended 30th September, |
|
| 1998. |
|
|
|
|
|
|
| 3.
To appoint auditors for the year 1998-99 and fix their remuneration. The |
|
| outgoing
auditors, Messrs. Hameed Chaudhri & Co., Chartered Accountants, |
|
| offer
themselves for re-appointment. |
|
|
| 4.
To transact any other ordinary business of the Company as may be permitted by |
|
| the Chair. |
|
|
|
|
| The
Share transfer books of the company will remain closed from 21st March, |
|
| 1999
to 26th March, 1999 (both days inclusive). |
|
|
|
|
BY ORDER OF THE BOARD |
|
|
|
|
|
|
| PESHAWAR |
|
|
(MALIK MOHAMMAD ASLAM) FCMA |
|
| February
16, 1999. |
|
SECRETARY |
|
|
| N.B. |
Member unable to attend
in person may kindly send the proxy form attached with the Balance sheet |
|
|
signed and witnessed to
the Company at least 48 hours before the time of the meeting. No Person |
|
|
shall act as .proxy
unless he is entitled to be present and vote in his own right. |
|
|
|
| DIRECTORS'
REPORT |
|
|
| The
Directors have pleasure in presenting their annual report alongwith the
audited |
|
| accounts
of the Company for the year ended 30th September, 1998. |
|
|
| PRODUCTION
DATA |
|
|
|
|
1997 - 98 |
1996 - 97 |
|
|
| Sugarcane
crushed |
|
(Tons) |
744,391 |
370,489 |
|
| Sugar
produced |
|
(Tons) |
63,025 |
28,616 |
|
| Recovery |
|
% |
8.47 |
7.72 |
|
| Working |
|
days |
159 |
121 |
|
|
| GENERAL |
|
|
| SUGARCANE
SEASON 1997 - 98 |
|
| The
Sugarcane crushing season started on 22nd November, 1997 and ended on 29th |
|
| April,
1998. The Sugarcane price was raised by the Government from Rs. 24/- to Rs.
35/- per |
|
| 40
Kgs an increase of about 45%. This exorbitant increase in price has had a
negative impact |
|
| on
the Sugar Industry in that the cultivation of Sugarcane has been increased to
more than the |
|
| requirement
of the Mills. While this has given a boost to cane production and allowed
capacity |
|
| utilization,
it has also pushed the cost of sugar production much above the international
price, |
|
| and
has also led to a crash in domestic sugar price. Therefore, inspite of record
production |
|
| during
the year by the factory, we faced a grave financial situation and this is
true for the sugar |
|
| industry
in the country as a whole. |
|
|
| CURRENT
SEASON 1998 - 99 |
|
| The
current season started on 25th November 1998 and we have crushed 428,100 tons
of |
|
| sugarcane,
production 31,672 tons of sugar upto 10th February 1999 at an average
recovery of |
|
| 7.50%.
We anticipate to crush about 800,000 tonnes sugarcane during the season and
hope to |
|
| produce
approximately 60,000/64,000 tons of sugar and 40,000 tons of molasses. Due to |
|
| record
production expected this year in the country plus carry over stock prices are
expected to |
|
| be
low and take off of slow which will have an adverse effect on the industry. |
|
|
| SALES
TAX ON SUGAR |
|
| The
Government imposed sales tax on sugar with effect from 1st April, 1998 and
reduced |
|
| excise
duty from Rs. 2100/- per ton to Rs. 400/- per ton. The present amount of
sales tax and |
|
| excise
duty works out Rs. 2,480.00 per ton. |
|
|
| DIVIDEND |
|
| The
Directors do not recommend any dividend due to very low profit earned by the
company for |
|
| the
year ended 30 September, 1998. |
|
|
| STAFF |
|
| Labour
and Management relations remained cordial during the year. All employees of |
|
| the
Company were paid bonus equivalent to 4 months salary in addition to other |
|
| amenities
and statutory benefits. |
|
|
| AUDITORS |
|
| The
present auditors Messrs. Hameed Chaudhri & Co. Chartered Accountants,
Lahore, |
|
| retire
and being eligible offer themselves for reappointment. |
|
|
| The
Directors appreciate the spirit of good work done by the company's staff at
all |
|
| levels. |
|
|
|
|
ON BEHALF OF THE BOARD |
|
|
|
|
|
|
| PESHAWAR: |
|
|
(KHAN ABBAS SARFARAZ) |
|
| February
16, 1999. |
|
CHIEF EXECUTIVE |
|
|
|
| FORM - 34 |
|
|
| PATTERN
OF HOLDING OF THE SHARES HELD BY THE SHAREHOLDERS |
|
| AS
AT 30TH SEPTEMBER, 1998 |
|
|
| SHARE |
|
|
TOTAL |
|
| HOLDERS |
|
|
SHAREHOLDING |
|
SHARES HELD |
|
|
| 409 |
From |
1 |
to |
100 |
Shares |
40,900 |
|
| 4,398 |
From |
101 |
to |
500 |
Shares |
1,999,300 |
|
| 162 |
From |
501 |
to |
1,000 |
Shares |
154,700 |
|
| 215 |
From |
1,001 |
to |
5,000 |
Shares |
553,100 |
|
| 56 |
From |
5,001 |
to |
10,000 |
Shares |
447,500 |
|
| 15 |
From |
10,001 |
to |
15,000 |
Shares |
178,800 |
|
| 8 |
From |
15,001 |
to |
20,000 |
Shares |
146,700 |
|
| 7 |
From |
20,001 |
to |
25,000 |
Shares |
159,900 |
|
| 6 |
From |
25,001 |
to |
30,000 |
Shares |
174,900 |
|
| 2 |
From |
30,001 |
to |
35,000 |
Shares |
63,000 |
|
| 5 |
From |
35,001 |
to |
40,000 |
Shares |
191,400 |
|
| 2 |
From |
40,001 |
to |
45,000 |
Shares |
86,400 |
|
| 5 |
From |
45,001 |
to |
50,000 |
Shares |
249,900 |
|
| 1 |
From |
50,001 |
to |
55,000 |
Shares |
55,000 |
|
| 1 |
From |
55,001 |
to |
60,000 |
Shares |
59,900 |
|
| 1 |
From |
75,001 |
to |
80,000 |
Shares |
76,500 |
|
| 1 |
From |
80,001 |
to |
85,000 |
Shares |
81,800 |
|
| 3 |
From |
95,001 |
to |
100,000 |
Shares |
300,000 |
|
| 1 |
From |
105,001 |
to |
110,000 |
Shares |
107,000 |
|
| 1 |
From |
115,001 |
to |
120,000 |
Shares |
115,200 |
|
| 3 |
From |
195,001 |
to |
200,000 |
Shares |
600,000 |
|
| 1 |
From |
200,001 |
to |
205,000 |
Shares |
205,000 |
|
| 1 |
From |
255,001 |
to |
260,000 |
Shares |
255,400 |
|
| 1 |
From |
435,001 |
to |
440,000 |
Shares |
435,500 |
|
| 1 |
From |
905,001 |
to |
910,000 |
Shares |
908,400 |
|
| 1 |
From |
1,910,001 |
to |
1,915,000 |
Shares |
1,912,800 |
|
| 1 |
From |
9,565,001 |
to |
9,570,000 |
Shares |
9,569,000 |
|
| ---------- |
|
|
|
---------- |
|
| 5,308 |
|
19,128,000 |
|
| ========== |
|
========== |
|
|
| Categories
of Shareholders |
Numbers |
Share Held |
Percentage |
|
|
|
|
|
| Individuals |
|
5,277 |
5,777,500 |
30.20 |
|
| Investment
Companies |
|
13 |
2,415,200 |
12.63 |
|
| Insurance
Companies |
|
2 |
131,800 |
0.69 |
|
| Joint
Stock Companies |
|
15 |
10,603,500 |
55.43 |
|
| Sarfaraz
Distt: Hospital |
1 |
200,000 |
1.05 |
|
|
|
---------- |
---------- |
---------- |
|
|
|
5,308 |
19,128,000 |
100.00 |
|
|
========== |
========== |
========== |
|
|
|
| AUDITORS' REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed Balance Sheet of CHASHMA SUGAR MILLS LIMITED as at
30 |
|
| September,
1998 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 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 the 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 30 September, 1998 and of the profit and cash
flows for |
|
| the
year then ended; and |
|
|
| (d)
in our opinion, no Zakat was deductible at source under the Zakat and Ushr
Ordinance, |
|
| 1980. |
|
|
|
|
|
HAMEED CHAUDHRI & CO., |
|
| LAHORE:
February 17, 1999. |
|
CHARTERED ACCOUNTANTS. |
|
|
|
| BALANCE
SHEET AS AT 30 SEPTEMBER, 1998 |
|
|
|
|
|
1998 |
1997 |
|
|
|
Note |
Rupees |
Rupees |
|
| SHARE
CAPITAL AND RESERVES |
|
|
| Authorised
capital |
|
|
|
| 22,000,000
ordinary shares |
|
|
| of
Rs. 10 each |
|
|
220,000,000 |
220,000,000 |
|
|
|
|
========== |
========== |
|
| Issued,
subscribed and paid-up capital |
|
| 19,128,000
ordinary shares of Rs. 10 |
|
| each
fully paid in cash |
|
3 |
191,280,000 |
191,280,000 |
|
| General
reserve |
|
4 |
106,000,000 |
106,000,000 |
|
| Unappropriated
profit |
|
|
877,041 |
665,390 |
|
|
|
|
---------- |
---------- |
|
|
|
|
298,157,041 |
297,945,390 |
|
|
|
|
|
|
| LONG
TERM FINANCES AND LOANS |
|
|
|
| Long
term finances under |
|
|
|
| mark-up
arrangements |
|
5 |
23,198,500 |
46,397,000 |
|
| Long
term loans |
|
6 |
64,286,865 |
84,313,122 |
|
| Long
term loans from Holding |
|
|
|
| Company
and Associated |
|
|
|
| Undertaking |
|
7 |
11,000,000 |
22,000,000 |
|
|
|
|
---------- |
---------- |
|
|
|
|
98,485,365 |
152,710,122 |
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
|
| Current
portion of long |
|
|
|
| term
liabilities |
|
8 |
98,399,176 |
84,859,094 |
|
| Short
term finances |
|
9 |
224,911,157 |
98,004,654 |
|
| Creditors,
accruals and |
|
|
| other
liabilities |
|
10 |
55,429,710 |
49,846,415 |
|
| Excise
duty and sales tax payable |
|
11 |
34,094,971 |
7,362,522 |
|
| Unclaimed
dividend |
|
|
243,972 |
322,913 |
|
|
|
|
---------- |
---------- |
|
|
|
|
413,078,986 |
240,395,598 |
|
| CONTINGENCIES
AND COMMITMENTS |
|
12 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
809,721,392 |
691,051,110 |
|
|
|
|
========== |
========== |
|
|
| FIXED
CAPITAL EXPENDITURE |
|
|
| Operating
fixed assets |
|
13 |
472,556,684 |
522,826,268 |
|
| Capital
work-in-progress |
|
14 |
7,117,512 |
256,437 |
|
| Stores
held for capital expenditure |
|
9,271,329 |
8,353,864 |
|
|
|
|
---------- |
---------- |
|
|
|
|
488,945,525 |
531,436,569 |
|
|
|
|
|
| SECURITY
DEPOSITS |
|
|
129,765 |
73,765 |
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
|
| Stores
and spares |
|
15 |
37,128,022 |
35,365,787 |
|
| Stock-in-trade |
|
16 |
188,880,000 |
43,120,956 |
|
| Trade
debtors - Unsecured |
|
|
|
|
- Considered good |
|
|
61,045,947 |
49,756,348 |
|
| Advances,
deposits, prepayments |
|
|
|
| and
other receivables |
|
17 |
28,767,709 |
30,782,298 |
|
| Cash
and bank balances |
|
18 |
4,824,424 |
515,387 |
|
|
|
|
---------- |
---------- |
|
|
|
|
320,646,102 |
159,540,776 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
809,721,392 |
691,051,110 |
|
|
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
KHAN ABBAS SARFARAZ |
|
ABDUL QADAR KHATTAK |
|
MUHAMMAD RAFIQ KHAN |
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
DIRECTOR |
|
|
|
|
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED 30 SEPTEMBER, 1998 |
|
|
|
|
|
1998 |
1997 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| SALES - Net |
|
19 |
811,335,253 |
538,518,425 |
|
| COST
OF SALES |
|
20 |
719,697,287 |
480,012,868 |
|
|
|
|
---------- |
---------- |
|
| GROSS
PROFIT |
|
|
91,637,966 |
58,505,557 |
|
| OPERATING
EXPENSES |
|
|
|
| Administrative
and general |
|
21 |
16,606,449 |
14,401,494 |
|
| Selling
and distribution |
|
22 |
19,716,911 |
871,510 |
|
|
|
|
---------- |
---------- |
|
|
|
|
18,578,140 |
15,273,004 |
|
|
|
|
---------- |
---------- |
|
| OPERATING
PROFIT |
|
|
73,059,826 |
43,232,553 |
|
|
|
|
---------- |
---------- |
|
| OTHER
INCOME |
|
23 |
2,014,814 |
850,352 |
|
|
|
|
---------- |
---------- |
|
|
|
|
75,074,640 |
44,082,905 |
|
|
|
|
|
|
| OTHER
CHARGES |
|
|
|
|
| Financial |
|
24 |
628,697,081 |
56,981,491 |
|
| Miscellaneous |
|
25 |
688,401 |
623,258 |
|
| Corporate
assets tax |
|
26.5 |
|
| Provision
written-back |
|
|
|
|
| -Provision written-back |
|
|
0 |
(2,676,219) |
|
| -Refund |
|
|
|
0 |
(2,000,0000) |
|
| Workers'
(profit) participation fund |
|
11,000 |
0 |
|
|
|
|
---------- |
---------- |
|
|
|
|
63,569,109 |
52,928,530 |
|
|
|
|
| PROFIT/(LOSS)
BEFORE PRIOR |
|
|
| YEAR'S
ITEM AND TAXATION |
|
|
11,505,531 |
(8,845,625) |
|
|
|
|
|
| EXCISE
DUTY - Prior year |
|
11.2 |
(11,293,880) |
0 |
|
|
|
|
---------- |
---------- |
|
|
|
|
211,651 |
(8,845,625) |
|
|
|
|
|
| PROVISION
FOR TAXATION |
|
|
26.3 |
|
| Prior years |
|
|
|
0 |
(3,144,000) |
|
| Refunds |
|
|
|
0 |
(7,631,228) |
|
|
|
|
---------- |
---------- |
|
|
|
|
0 |
(10,775,228) |
|
|
|
|
---------- |
---------- |
|
| PROFIT
AFTER TAXATION |
|
|
211,651 |
1,929,603 |
|
|
|
|
|
|
|
| UNAPPROPRIATED
PROFIT- Brought forward |
|
665,390 |
735,787 |
|
|
|
|
|
---------- |
---------- |
|
| PROFIT
AVAILABLE FOR APPROPRIATION |
|
|
877,041 |
2,665,390 |
|
|
|
|
|
|
|
| APPROPRIATION: |
|
|
|
|
| Transfer
to General Reserve |
|
|
0 |
2,000,000 |
|
|
|
|
|
| UNAPPROPRIATED
PROFIT |
|
|
---------- |
---------- |
|
| -
Carried to Balance Sheet |
|
|
877,041 |
665,390 |
|
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
ABDUL QADAR KHATTAK |
|
MUHAMMAD RAFIQ KHAN |
|
KHAN ABBAS SARFARAZ |
|
|
DIRECTOR |
|
DIRECTOR |
|
CHIEF EXECUTIVE |
|
|
|
| CASH
FLOW STATEMENT |
|
|
| FOR
THE YEAR ENDED 30 SEPTEMBER, 1998 |
|
|
|
|
1998 |
1997 |
|
|
|
|
Rupees |
Rupees |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| Profit/(Loss)
for the year |
|
|
| -
Before prior year's item and taxation |
|
11,505,531 |
(8,845,625) |
|
| Adjustments
for: |
|
|
|
|
|
| Depreciation |
|
|
|
51,775,906 |
57,503,008 |
|
| Loss
on disposal of vehicle and equipment |
|
51,484 |
0 |
|
| Interest
and profit on deposits |
|
|
(182,016) |
(177,660) |
|
| Interest,
mark-up and excise duty |
|
|
|
|
| on
loans and finances |
|
|
|
62,487,769 |
56,668~965 |
|
| Deferred
cost amortised |
|
|
0 |
48,517 |
|
| Corporate
assets tax |
|
|
|
0 |
(4,676,219) |
|
| Net
decrease in working |
|
|
|
|
| capital
(note 'A') |
|
|
|
(130,476,534) |
(85,794,834) |
|
|
|
|
---------- |
---------- |
|
| CASH
(OUT FLOW)/INFLOW FROM OPERATING |
|
| ACTIVITIES
- Before taxation |
|
|
(4,837,860) |
14,726,152 |
|
|
|
|
|
|
| Income
tax paid |
|
|
(153,609) |
(683,514) |
|
|
|
|
---------- |
---------- |
|
| NET
CASH (OUTFLOW)/INFLOW FROM OPERATING |
|
|
|
| ACTIVITIES
- After taxation |
|
|
(4,991,469) |
14,042,638 |
|
|
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
| Fixed
capital expenditure |
|
|
(9,936,346) |
(19,831,941) |
|
| Insurance
claim of vehicle |
|
|
600,000 |
0 |
|
| Interest
and profit on deposits - net |
|
182,016 |
177,660 |
|
| Security
deposits |
|
|
(56,000) |
0 |
|
|
|
|
---------- |
---------- |
|
| NET
CASH (OUTFLOW) FROM INVESTING |
|
|
|
|
| ACTIVITIES |
|
|
(9,210,330) |
(19,654,281) |
|
|
|
|
---------- |
---------- |
|
|
|
|
(14,201,799) |
(5,611,643) |
|
|
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
| Long
term loan obtained from |
|
|
| an
Associated Undertaking ' |
|
|
0 |
33,000,000 |
|
| Long
term finances and loans repaid |
|
(40,684,675) |
(37,897,061) |
|
| Interest,
mark-up and excise duty |
|
|
|
|
| paid
on loans and finances |
|
|
(67,632,051) |
(57,136,295) |
|
