| Gharibwal Cement Limited |
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| Annual
Report 1998 |
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| CONTENTS |
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| Board
of Directors |
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| Notice
of Meeting |
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| Directors'
Report to the Shareholders |
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| Auditors'
Report |
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| Pattern
of Shareholding |
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| Balance
Sheet |
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| Profit
and Loss Account |
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| Cash
flow Statement |
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| Notes
to the Accounts |
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| Subsidiary
Company |
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| COMPANY
PROFILE |
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| BOARD
OF DIRECTORS: |
MR. MOHAMMAD TOUSIF
PERACHA |
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Chairman |
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MR. FAROOQ ZAMAN |
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Managing Director (Chief
Executive) |
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MRS. TABASSUM TOUSIF
PERACHA |
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Director |
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MR. M. NIAZ PERACHA |
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Director |
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LT. COL (R) BADRUZZAMAN
KHAN |
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Director |
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MR. RAZI-UR-REHMAN KHAN |
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Director (Nominated by
NIT) |
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MR. IMTIAZ RASOOL |
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Director (Nominated by
SLIC) |
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| SECRETARY: |
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MR. ABDUL JABBAR BUTT |
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| AUDITORS: |
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HAMEED CHAUDHRI & CO. |
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Chartered Accountants |
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| BANKERS: |
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NATIONAL BANK OF PAKISTAN |
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UNITED BANK LIMITED |
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MUSLIM COMMERCIAL BANK |
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THE HONGKONG AND SHANGHAI
BANKING CORPORATION |
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FAYSAL BANK |
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| REGISTERED
OFFICE: |
26-EMPRESS ROAD, LAHORE |
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| WORKS: |
|
ISMAILWAL (DISTT.
CHAKWAL) |
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| NOTICE
OF MEETING |
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| Notice
is hereby given that 38th Annual General Meeting of the members of GHARIBWAL
CEMENT LIMITED will be |
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| held
at its registered office, 26-Empress Road, Lahore, on Monday, December 28,
1998 at 3.30 p.m. for transacting the |
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| following
business: |
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| ORDINARY
BUSINESS |
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| 1.
To confirm the minutes of the Annual General Meeting held on 27 December,
1997. |
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|
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| 2.
To receive, consider and adopt the Accounts of the Company for the year ended
June 30, 1998 together with the |
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| Directors'
and Auditors' reports thereon. |
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| 3.
To appoint Auditors for the year 1998-99 and fix their remuneration. M/s
Hameed Chaudhri & Co. Chartered |
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| Accountants,
the retiring Auditors have offered themselves for re-appointment as Auditors
of the Company. |
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| 4.
To transact any other business with the permission of the Chair. |
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| SPECIAL
BUSINESS |
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| To
consider and pass the following Special Resolution:- |
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| "Resolved
that the consent and approval of the Company be and is hereby accorded to
enhance the investment in the |
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| share
capital/loan from Rs. 150 million to Rs. 200 million of GCL Electric Company
Limited from time to time as |
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| may
deem expedient. |
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| It
is further resolved that the Chief Executive of the Company be and is hereby
authorized to negotiate and to take |
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| any
and all actions as may be deemed necessary to enhance of the aforementioned
investment from Rs. 150 million |
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| to
Rs. 200 million or any part thereof of the Subsidiary Company from time to
time as may deem expedient for said |
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| considerations
and/or on such terms and conditions as he may think fit on behalf of the
Company. He is further |
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| authorized
for investment in the Subsidiary Company within the meanings and terms of
Section 208 of the Companies |
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| Ordinance,
1984". |
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|
By order of the Board |
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| Date:
December 3, 1998 |
|
ABDUL JABBAR BUTT |
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|
Secretary |
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| Notes: |
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| 1.
Share transfer books of the Company will remain closed from December 19, 1998
to December 28, 1998 (both days |
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| inclusive).
The members whose names appear in the Register as at the close of business on
December 18, 1998, will |
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| qualify
to attend the meeting. |
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| 2.
A Member entitled to attend and vote at this Meeting may appoint another
Member as his / her Proxy to attend and |
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| vote
on his/her behalf. Proxies, in order to be effective must be received by the
Company not less than 48 Hours |
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| before
the Meeting. |
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| 3.
Kindly quote Folio Number in all correspondence with the Company. |
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| 4.
Members are requested to notify any change in address immediately. |
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| DIRECTORS'
REPORT TO THE SHARE HOLDERS |
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| Your
Directors are pleased to present the annual report and audited accounts for
the financial year ended on 30 June 1998. |
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| General |
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| During
the year under review the cement industry as a whole remained under extreme
pressure. Commissioning of new |
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| plants
further created the gap of supply versus demand of cement. Due to surplus
supply of cement in the market the sales |
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| prices
remained under serious stress. The overall economy of the country remained
stagnant. No major development |
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| project
was carried out by the Government due to financial constraints prevailing in
the country as a result of that the |
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| demand
of cement industry did not pick up. |
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|
| Financial
Results |
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| The
company suffered a net loss for the year Rs. 79.666 million as compared to
Rs. 248.722 million of the previous year. |
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|
Rs. in million |
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|
| Net
Loss for the year |
|
79.666 |
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| Add
Loss brought forward |
|
247.660 |
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|
|
|
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| Loss
carried forward |
|
327.326 |
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|
| Operating
Performance |
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| The
clinker production was increased by 4.38% as compared to last year, Whereas
the cement production decreased by |
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| 13.62%.
The actual sales were also lower by 14.91% from the previous year mainly due
to decline in the demand as a result |
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| of
increase in supply of the new brands of cement. The summary is given below. |
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|
1997-98 |
1996-97 |
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|
(Tonnes) |
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| Clinker
Production |
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|
437,455 |
419,080 |
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| Cement
Production |
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|
418,670 |
484,685 |
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| Dispatches |
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|
416,305 |
489,276 |
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| The
booking price remained under stress till Feb. 98. The prices remained in the
range of Rs. 3,130 to Rs. 3,300 per tonne |
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| till
Jan. 98. These were increased from Rs. 3,300 to 4,470 per tonne in Feb. 98 to
June 98. However, at the end of June prices |
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| once
again started to decline. |
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|
| Marketing |
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| The
company was successful in retaining its main market inspite of very tough
competition prevailing in the market due to |
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| excessive
supply of the cement. The product acceptability remained satisfactory in the
eyes of the customer. |
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|
| Development
and Maintenance |
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| Power
Plant has started its commercial production since Oct. 98. This captive power
plant will supply power to the factory |
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| and
workers colony. It will give a major relief in electricity bills and
favourable impact on the cash flow of the company. |
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| However,
considerable amount of civil work was deferred due to financial constraints.
This will be completed in the |
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| forthcoming
financial year. |
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| The
cement plant performance remained satisfactory and its normal maintenance has
been carried out throughout the year. |
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| Pattern
of Shareholding |
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| Pattern
of Shareholding of the company is annexed. |
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|
| Dividend |
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| No
dividend is recommended due to loss suffered by the company. |
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|
| Auditors |
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| M/s
Hameed Chaudhri & Co. Chartered Accountants, the retiring auditors, being
eligible offer themselves for |
|
| re-appointment. |
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| Future
Outlook |
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| As
explained above that over supply of cement in the country and due to heavy
taxation in terms of central excise |
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| duty
@ 40% of the retail sales price imposed by the Government, the industry will
remain under pressure. In order to save |
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| the
industry from a total collapse the Government should take extensive measures
i.e. reduction of excise duty and |
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| facilitation
of export of cement and undertaking of development projects in the country. |
|
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| Commissioning
of our own power plant and stringent cost controls undertaken by the
management will help to strengthen |
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| the
financial position of the company. |
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|
| Labour
Management Relations |
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| The
Board of Directors appreciates the hard work of the labour and the entire
team of the company and applauds the |
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| cordial
relationship that exists between the labour and management. It is hoped that
they will continue to work with same |
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| zeal
and spirit. |
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|
For and on behalf of the Board |
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| Lahore,
December 3rd, 1998. |
|
FAROOQ ZAMAN |
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|
CHIEF EXECUTIVE |
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| AUDITORS'
REPORT TO THE MEMBERS OF GHARIBWAL CEMENT LTD. |
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| We
have audited the annexed Balance Sheet of GHARIBWAL CEMENT LIMITED as at 30
June, 1998 and the related |
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| Profit
and Loss Account and Cash Flow Statement, together with the notes forming
part thereof, for the year then ended and |
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| we
state that we have obtained all the information and explanations which to the
best of our knowledge and belief were |
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| 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 |
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| Ordinance,
1984. |
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|
|
| b)
in our opinion: |
|
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| (i)
the Balance Sheet and Profit and Loss Account together with the notes thereon
have been drawn up in |
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| conformity
with the Companies Ordinance, 1984 and are in agreement with the books of
account and are |
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| 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 |
|
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| (iii)
the business conducted, investments made and the expenditure incurred during
the year were in accordance |
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| with
the objects of the Company; |
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|
|
| c)
in our opinion and to the best of our information and according to the
explanations given to us, the Balance Sheet, |
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| Profit
and Loss Account and the Cash Flow Statement, together with the notes forming
part thereof, give the |
|
| information
required by 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 June, 1998 and of the loss and
the cash flows for the year then |
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| ended; and |
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|
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| d)
in our opinion, no Zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
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|
HAMEED CHAUDHRI & CO. |
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| Lahore:
3rd December, 1998 |
|
CHARTERED ACCOUNTANTS |
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|
| PATTERN
OF SHAREHOLDING AS AT 30 JUNE, 1998 |
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| Share Holding |
No. of |
No. of |
Percentage |
|
|
| From |
To |
Share |
Shares Held |
of Issued |
|
|
|
Holders |
|
Capital |
|
| 1 |
100 |
714 |
29,270 |
0.17 |
|
| 101 |
500 |
498 |
128,372 |
0.76 |
|
| 501 |
1000 |
244 |
167,470 |
1.00 |
|
| 1001 |
5000 |
313 |
676,561 |
4.01 |
|
| 5001 |
10000 |
55 |
366,642 |
2.17 |
|
| 10001 |
15000 |
11 |
132,808 |
0.79 |
|
| 15001 |
20000 |
4 |
67,359 |
0.40 |
|
| 20001 |
30000 |
5 |
117,623 |
0.70 |
|
| 30001 |
9999999 |
14 |
15,190,312 |
90.00 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
|
|
1858 |
16,876,417 |
100 |
|
| ========== |
========== |
========== |
========== |
========== |
|
|
|
|
No. of |
No. of |
Percentage |
|
| Categories
of Share Holders |
Share |
Shares Held |
of Issued |
|
|
Holders |
|
Capital |
|
|
| Individuals |
|
1816 |
1,536,737 |
9.106 |
|
| Investment
Companies |
|
3 |
1,007,992 |
5.973 |
|
| Insurance
Companies |
|
6 |
3,682,937 |
21.823 |
|
| Financial
Institutions |
|
10 |
1,872,345 |
11.094 |
|
| Private
Limited Companies |
14 |
92,912 |
0.551 |
|
| Foreign
Investors |
|
2 |
8,564,224 |
50.747 |
|
| Corporations |
|
1 |
61,301 |
0.363 |
|
| Corporate
Law Authority |
1 |
11 |
0.000 |
|
| Others |
|
5 |
57,958 |
0.343 |
|
|
|
---------- |
---------- |
---------- |
|
| Grand Total |
|
1858 |
16,876,417 |
100.000 |
|
|
|
|
========== |
========== |
========== |
|
|
| DETAIL
OF OTHERS |
|
|
| Tehrik-i-Jadid
Anjuman Ahmadiya Pakistan |
|
278 |
|
| Sadar
Anjuman Ahmadiya Pakistan |
|
24,448 |
|
| Dacca
Benevolent Association |
|
17,437 |
|
| The
Ahmadiya Anjuman Ishaat-i-Islam |
|
934 |
|
| Dy.
Administration Abandoned Properties |
|
14,861 |
|
|
---------- |
|
|
|
57,958 |
|
|
|
========== |
|
|
|
|
| BALANCE
SHEET AS AT 30 JUNE, 1998 |
|
|
|
|
| SHARE
CAPITAL AND RESERVES |
|
|
1998 |
1997 |
|
| Note |
|
|
|
|
(Rupees in thousand) |
|
| Authorised |
|
|
|
| 50,000,000
ordinary |
|
|
|
| shares
of Rs. 10 each |
|
|
500,000 |
500,000 |
|
|
|
|
========== |
========== |
|
| Issued,
subscribed and paid-up |
|
3 |
168,764 |
168,764 |
|
| General
reserve |
|
|
332,000 |
332,000 |
|
| Accumulated
loss |
|
|
(327,326) |
(247,660) |
|
|
|
|
---------- |
---------- |
|
|
|
|
173,438 |
253,104 |
|
|
|
|
|
| SURPLUS
ON REVALUATION OF FIXED |
|
|
|
| ASSETS |
|
4 |
993,804 |
993,804 |
|
|
|
|
|
| LIABILITIES
AGAINST ASSETS |
|
|
|
| SUBJECT
TO FINANCE LEASE |
|
5 |
145,228 |
124,574 |
|
|
|
|
|
|
| DEFERRED
LIABILITIES |
|
|
|
|
| Deferred
taxation |
|
6 |
14,687 |
15,581 |
|
| Vacation
benefits |
|
7 |
6,548 |
7,495 |
|
| Deposits
from customers |
|
8 |
8,035 |
14,900 |
|
|
|
|
---------- |
---------- |
|
|
|
|
29,270 |
37,976 |
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
|
| Current
portion of liabilities against |
|
|
| assets
subject to finance lease |
|
5 |
21,014 |
25,132 |
|
| Short
term finance |
|
9 |
48,310 |
33,135 |
|
| Creditors,
accrued and other liabilities |
10 |
236,041 |
152,699 |
|
| Taxes
and duties |
|
11 |
44,843 |
52,320 |
|
| Unclaimed
dividend |
|
|
3,038 |
3,106 |
|
|
|
|
---------- |
---------- |
|
|
|
|
353,246 |
266,392 |
|
| CONTINGENCIES
AND COMMITMENTS |
|
12 |
---------- |
---------- |
|
|
|
|
1,694,986 |
1,675,850 |
|
|
|
|
|
========== |
========== |
|
|
| TANGIBLE
FIXED ASSETS |
|
|
|
| Operating
fixed assets |
|
13 |
867,731 |
912,182 |
|
| Capital
work-in-progress |
|
14 |
297,645 |
311,421 |
|
| Stores
held for capital expenditure |
|
1,905 |
3,926 |
|
|
|
|
---------- |
---------- |
|
|
|
|
1,167,281 |
1,227,529 |
|
|
|
|
|
| LONG
TERM INVESTMENTS |
|
15 |
150,042 |
2,719 |
|
|
|
|
|
|
| LONG
TERM DEPOSITS AND |
|
|
|
|
| PREPAYMENTS |
|
16 |
12,279 |
1,174 |
|
|
|
|
|
| LONG
TERM LOANS AND ADVANCES |
|
17 |
22,102 |
29,467 |
|
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
|
| Stores,
Spares and loose tools |
|
18 |
114,989 |
122,420 |
|
| Stock-in-trade |
|
|
19 |
89,806 |
26,790 |
|
| Trade
debtors |
|
|
20 |
0 |
0 |
|
| Loans,
advances, deposits, prepayments |
|
|
| and
other receivables |
|
21 |
94,719 |
221,981 |
|
| Short
term investments |
|
22 |
504 |
980 |
|
| Cash
and bank balances |
|
23 |
43,264 |
42,790 |
|
|
|
|
---------- |
---------- |
|
|
|
|
343,282 |
414,961 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
1,694,986 |
1,675,850 |
|
|
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
|
| M.
NIAZ PERACHA |
|
FAROOQ ZAMAN |
|
| DIRECTOR |
|
CHIEF EXECUTIVE |
|
|
|
|
|
|
|
|
|
|
| PROFIT
AND LOSS ACCOUNT FOR THE YEAR ENDED 30 JUNE, 1998 |
|
|
|
|
|
Note |
1998 |
1997 |
|
|
|
|
|
(Rupees in thousand) |
|
|
|
|
| SALES - net |
|
24 |
797,528 |
899,671 |
|
| COST
OF SALES |
|
25 |
840,692 |
1,089,982 |
|
|
|
|
---------- |
---------- |
|
| GROSS
(LOSS) |
|
|
(43,164) |
(190,311) |
|
|
|
|
|
|
| OPERATING
EXPENSES |
|
|
|
|
| General
and administrative |
|
26 |
33,977 |
38,117 |
|
| Selling
and distribution |
|
27 |
9,341 |
13,342 |
|
| Financial
charges |
|
28 |
49,390 |
4,731 |
|
| Other
charges |
|
29 |
998 |
169 |
|
|
|
|
---------- |
---------- |
|
|
|
|
93,706 |
56,359 |
|
|
|
|
---------- |
---------- |
|
| OPERATING
(LOSS) |
|
|
(136,870) |
(246,670) |
|
|
|
|
|
|
| OTHER
INCOME |
|
30 |
61,047 |
20,238 |
|
|
|
|
|
---------- |
---------- |
|
| (LOSS)
BEFORE TAXATION |
|
|
(75,823) |
(226,432) |
|
|
|
|
|
|
| PROVISION
FOR TAXATION |
|
|
|
|
| Current
and prior years |
|
11.1 |
4,737 |
26,447 |
|
| Income
tax refunds |
|
|
0 |
(838) |
|
| Deferred |
|
6 |
(894) |
(3,319) |
|
|
|
|
---------- |
---------- |
|
|
|
|
3,843 |
22,290 |
|
|
|
|
---------- |
---------- |
|
| (LOSS)
AFTER TAXATION |
|
|
(79,666) |
(248,722) |
|
|
|
|
|
|
| (ACCUMULATED
Loss)/ |
|
|
|
|
| UNAPPROPRIATED
PROFIT |
|
|
|
|
| - Brought forward |
|
|
(247,660) |
1,062 |
|
|
|
|
---------- |
---------- |
|
| (ACCUMULATED
LOSS) |
|
|
|
|
| - Carried to Balance Sheet |
|
|
(327,326) |
(247,660) |
|
|
|
|
========== |
========== |
|
|
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
|
|
M. NIAZ PERACHA |
|
|
FAROOQ ZAMAN |
|
|
DIRECTOR |
|
|
CHIEF EXECUTIVE |
|
|
|
|
|
|
|
| CASH
FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE, 1998 |
|
|
|
|
|
|
|
1998 |
1997 |
|
|
|
|
(Rupees in thousand) |
|
|
|
|
| NET
CASH INFLOW/(OUTFLOW) FROM |
|
|
|
|
|
|
|
| OPERATING
ACTIVITIES (Note 'A') |
|
|
116,641 |
(207,345) |
|
|
|
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
|
| Fixed
capital expenditure |
|
|
(3,676) |
(68,504) |
|
| Long
term investments in Subsidiary Company |
|
(147,430) |
0 |
|
| Sale
proceeds of operating fixed assets |
|
2,324 |
1,450 |
|
| Exchange
fluctuation gain |
|
8,836 |
10,423 |
|
| Dividend
received |
|
1 |
13 |
|
| Interest
received |
|
2,925 |
6,730 |
|
|
|
---------- |
---------- |
|
| NET
CASH (OUTFLOW) FROM |
|
|
|
| INVESTING
ACTIVITIES |
|
(137,020) |
(49,888) |
|
|
|
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
|
| Lease
finances - net |
|
16,536 |
135,693 |
|
| Short
term finances - net |
|
15,175 |
15,643 |
|
| Mark-up
on short term finances paid |
|
(4,176) |
(2,190) |
|
| Lease
finance charges paid |
|
(6,614) |
(784) |
|
| Dividend
paid |
|
(68) |
(83) |
|
|
|
---------- |
---------- |
|
| NET
CASH INFLOW FROM FINANCING ACTIVITIES |
|
20,853 |
148,279 |
|
|
|
|
---------- |
---------- |
|
| NET
INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS |
474 |
(108,954) |
|
|
|
|
|
| CASH
AND CASH EQUIVALENTS |
|
|
|
|
|
|
| -
At the beginning of the year |
|
42,790 |
151,744 |
|
|
|
---------- |
---------- |
|
| CASH
AND CASH EQUIVALENTS |
|
|
|
|
|
|
| -
At the end of the year |
|
|
43,264 |
42,790 |
|
|
|
|
|
========== |
========== |
|
|
| The
annexed note 'A' forms an integral part of this Statement. |
|
|
|
M. NIAZ PERACHA |
|
|
FAROOQ ZAMAN |
|
|
DIRECTOR |
|
|
CHIEF EXECUTIVE |
|
|
|
| NOTE 'A" |
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
|
|
|
|
1998 |
1997 |
|
|
|
|
(Rupees in thousand) |
|
|
|
|
| Loss
for the year-Before taxation |
|
(75,823) |
(226,432) |
|
|
|
|
| Adjustments
for: |
|
|
|
| Depreciation |
|
|
61,923 |
68,762 |
|
| Gain
on sale of fixed assets |
|
(323) |
(659) |
|
| Mark-up
on short term finances |
|
5,419 |
2,004 |
|
| Lease
finance charges |
|
|
7,985 |
784 |
|
| Interest
on bank deposits |
|
(2,808) |
(3,976) |
|
| Exchange
fluctuation gain |
|
(8,836) |
(10,423) |
|
| Provision
for diminution in value of |
|
|
|
| investments
- provided for/(written back) |
|
583 |
(143) |
|
| Dividend
income |
|
|
(1) |
(13) |
|
|
|
|
|
---------- |
---------- |
|
|
|
(11,881) |
(170,096) |
|
|
|
|
|
| Long
term deposits and prepayments |
|
(11,105) |
387 |
|
| Long
term loans and advances to staff |
|
8,639 |
3,178 |
|
| Vacation
benefits - net |
|
(947) |
(219) |
|
| Deposits
from customers refunded - net |
|
(6,865) |
(21,525) |
|
| Taxes
and duties |
|
|
627,927 |
841,316 |
|
|
|
---------- |
---------- |
|
|
|
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
|
| -
Before working capital changes |
|
605,768 |
653,041 |
|
|
|
|
| (Increase)/Decrease
in current assets |
|
|
| Stores,
spares and loose tools |
|
7,431 |
27,853 |
|
| Stock-in-trade |
|
|
(63,016) |
83,335 |
|
| Advances,
deposits, prepayments and other receivables |
125,197 |
(108,047) |
|
| Increase
in creditors, accrued and other liabilities |
80,728 |
5,586 |
|
|
|
|
|
---------- |
---------- |
|
|
|
150,340 |
8,727 |
|
|
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
|
| -
Before taxation |
|
|
756,108 |
661,768 |
|
|
|
|
|
|
|
| -
Taxes paid |
|
|
(639,467) |
(869,113) |
|
|
|
---------- |
---------- |
|
|
|
|
|
| NET
CASH INFLOW/(OUTFLOW) FROM OPERATING |
|
|
| ACTIVITIES
- After taxation |
|
116,641 |
(207,345) |
|
|
|
|
|
========== |
========== |
|
|
|
M. NIAZ PERACHA |
|
|
FAROOQ ZAMAN |
|
|
DIRECTOR |
|
|
CHIEF EXECUTIVE |
|
|
|
| NOTES
TO THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE, 1998 |
|
|
| 1.
STATUS AND OPERATIONS |
|
|
| The
Company was incorporated on 29 December, 1960 as a Public Company and its
shares are quoted on Karachi and |
|
| Lahore
Stock Exchanges It is principally engaged in production and sale of cement. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
|
| 2.1
Accounting convention |
|
| These
accounts have been prepared under the historical cost convention except that
certain fixed assets have been |
|
| included
at revaluation and certain exchange elements referred to in note 2.9 have
been incorporated in the cost of |
|
| relevant
assets. |
|
|
| 2.2
Staff retirement benefits |
|
|
| a)
The Company operates a funded Gratuity Scheme for its employees. Contribution
to the Fund is made annually |
|
| to
cover obligation under the Scheme. However, gratuity is payable subject to
completion of a prescribed |
|
| qualifying
period of service. |
|
|
| b)
The Company also operates a funded contributory Provident Fund Scheme for its
employees and contributions |
|
| based
on salaries of the employees are made to the Fund monthly. |
|
|
| 2.3
Taxation |
|
| The
charge for current taxation is based on taxable income at the current rates
of taxation. |
|
|
| The
Company accounts for deferred taxation using the Liability Method on all
major timing differences. |
|
|
| 2.4
Tangible fixed assets and depreciation |
|
| Operating
fixed assets, except freehold land, are stated at cost or revalued amounts
less accumulated depreciation. |
|
| Freehold
land is stated at revalued amount. Capital work-in-progress is stated at
cost. |
|
|
| Borrowing
cost during erection period are capitalised as part of cost of the related
asset. |
|
|
| Depreciation
charge is based on reducing balance method whereby the cost/revalued amount
and capitalised |
|
| exchange
fluctuations of an asset is written-off over its estimated useful life. Rates
of depreciation are stated in |
|
| note
13. No depreciation is provided on assets in the year of disposal whereas
full year's depreciation is charged |
|
| in
the year of purchase/commercial operations/revaluation. |
|
|
| Gain/loss
on disposal of fixed assets is taken to Profit and Loss Account. |
|
|
| Normal
repairs and maintenance are charged to income as and when incurred. Major
improvements and |
|
| modifications
are capitalised and assets replace if any, other than those kept as stand-by,
are retired. |
|
|
| 2.5
Assets subject to finance lease |
|
| These
are stated at the lower of present value of minimum lease payments under the
lease agreements and the fair |
|
| value
of the assets. The related obligation of lease are accounted for as
liabilities. Financial charges are |
|
| allocated
to accounting periods in a manner so as to provide a constant periodic rate
of financial cost on the |
|
| remaining
balance of principal liability for each period. |
|
|
| Depreciation
is charged at the rates stated in note 13 applying reducing balance method to
write-off the cost of the |
|
| asset
over its estimated remaining useful life in view of certainty of ownership of
assets at the end of the lease |
|
| period. |
|
|
| Financial
charges and depreciation on leased assets are charged to income currently. |
|
|
| 2.6
Stock-in-trade |
|
| Basis
of valuation are as follows: |
|
|
| Particulars |
|
|
Mode of valuation |
|
|
| Raw
materials |
|
- At lower of annual
average cost and market |
|
|
|
value. |
|
|
| Work-in-process |
|
- At cost. |
|
|
|
|
| Finished
goods |
|
- At lower of cost and
net realisable value. |
|
|
|
|
| Packing
materials |
|
- At moving average cost. |
|
|
| Cost
in relation to work-in-process and finished goods represents the annual
average manufacturing cost which |
|
| consists
of prime cost and appropriate manufacturing overheads. |
|
|
| -
Net realisable value signifies the selling price in the ordinary course of
business less cost necessary to be |
|
| incurred
to effect such sale. |
|
|
| 2.7
Stores and spares |
|
| These
are valued at moving average cost except items-in-transit which are valued at
cost accumulated to the |
|
| balance
sheet date. Obsolete stores are written-off. |
|
|
| 2.8
Investments |
|
| a)
Investments are carried at the lower of cost or market value determined on an
aggregate portfolio basis. |
|
| b)
Gain/loss on sale of investments is taken to Profit and Loss Account. |
|
| c)
Bonus shares are accounted for by increase in number of shares without any
change in value. |
|
|
| 2.9
Foreign currency translation |
|
| Assets
and liabilities in foreign currencies are translated into Pak Rupees at rates
of exchange prevalent on the |
|
| balance
sheet date except those covered under forward exchange contracts which are
translated at the |
|
| contracted
rates. |
|
|
|
| Exchange
differences arising from translation and repayment of foreign currency loans
are capitalised as part |
|
| of
cost of plant and machinery acquired out of the proceeds of such loans. All
other exchange differences are |
|
| taken
to Profit and Loss Account. |
|
|
| 2.10
Receivables |
|
| Known
bad debts are written-off and provision is made against debts considered
doubtful. |
|
|
| 2.11
Revenue recognition |
|
| Sales
are recorded on dispatch of goods to customers. |
|
| Interest
on advance tax is accounted for on 'Receipt Basis'. |
|
| Interest
income is accounted for on 'Accrual Basis'. |
|
| Dividend
income is accounted for on 'Receipt Basis'. |
|
|
| 3.
ISSUED, SUBSCRIBED AND PAID-UP CAPITAL |
|
|
|
|
|
Note |
1998 |
1997 |
|
|
|
|
|
(Rupees in thousand) |
|
| 3,445,000
ordinary shares of Rs. 10 each |
|
| fully
paid in cash |
|
|
34,450 |
34,450 |
|
|
|
|
| 13,431,417
ordinary shares of Rs. 10 each |
|
| issued
as fully paid bonus shares |
|
134,314 |
134,314 |
|
|
|
---------- |
---------- |
|
|
|
168,764 |
168,764 |
|
|
|
|
========== |
========== |
|
|
| 4.
SURPLUS ON REVALUATION OF FIXED ASSETS |
|
|
|
|
| Revaluation
of freehold land, buildings, plant & machinery and railway sidings
produced surplus of |
|
| Rs.
993.804 million. This amount was credited to 'Surplus on Revaluation on Fixed
Assets Account' to comply with |
|
| the
requirements of Section 235 of the Companies Ordinance, 1984. The revaluation
exercise was carried-out in March, |
|
| 1993.
The Company, however, incorporated the revaluation adjustments with effect
from July, 1992. |
|
|
| 5.
LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE |
|
|
|
Askari |
Ghandhara |
First |
National |
|
|
|
Leasing |
Leasing |
Leasing |
Development |
|
|
|
Limited |
Company |
Corporation |
Leasing |
|
|
|
|
Limited |
Limited |
Corporation |
|
|
|
|
Limited |
1998 |
1997 |
|
|
|
(Rupees in thousand) |
|
| Balance
amount of future lease |
|
| payments
and the periods in |
|
| which
these will become due: |
|
|
| FINANCIAL
YEAR |
|
| 1997 - 98 |
|
|
0 |
0 |
0 |
0 |
0 |
55,664 |
|
|
| 1998 - 99 |
|
|
36,888 |
8,129 |
5,019 |
7,433 |
57,469 |
55,530 |
|
|
| 1999 - 2000 |
|
|
66,434 |
6,968 |
4,302 |
6,372 |
84,076 |
58,052 |
|
|
| 2000- 2001 |
|
|
68,046 |
6,968 |
4,302 |
1,972 |
81,288 |
43,538 |
|
|
| 2001 - 2002 |
|
|
32,135 |
5,581 |
2,009 |
0 |
39,725 |
35,366 |
|
|
|
|
---------------------------------------------------------------------- |
|
|
|
|
203,503 |
27,646 |
15,632 |
15,777 |
262,558 |
248,150 |
|
|
| Less:
Security deposits |
|
|
|
| adjustable
on expiry of |
|
|
|
| lease terms |
|
12,600 |
2,500 |
1,500 |
910 |
17,510 |
17,510 |
|
|
|
|
---------------------------------------------------------------------- |
|
|
|
|
190,903 |
25,146 |
14,132 |
14,867 |
245,048 |
230,640 |
|
|
| Less:
Financial charges |
|
|
|
| -
Allocated to future |
|
|
|
|
| periods |
|
63,994 |
7,080 |
3,628 |
2,733 |
77,435 |
80,934 |
|
|
| -
Accrued during the |
|
|
|
|
| year |
|
0 |
620 |
355 |
396 |
1,371 |
0 |
|
|
|
|
---------------------------------------------------------------------- |
|
|
|
|
63,994 |
7,700 |
3,983 |
3,129 |
78,806 |
80,934 |
|
|
|
|
---------------------------------------------------------------------- |
|
|
| Principal
liability |
|
126,909 |
17,446 |
10,149 |
11,738 |
166,242 |
149,706 |
|
|
|
|
|
|
|
| Less:
Current portion grouped |
|
|
|
| under
current liabilities |
|
|
|
| -
Installments due |
|
|
|
|
| within
following |
|
|
|
|
| twelve
months |
|
8,789 |
3,682 |
2,464 |
4,510 |
19,445 |
24,858 |
|
|
| -
Installments overdue |
|
0 |
541 |
362 |
666 |
1,569 |
274 |
|
|
|
|
---------------------------------------------------------------------- |
|
|
|
|
8,789 |
4,223 |
2,826 |
5,176 |
21,014 |
25,132 |
|
|
|
|
---------------------------------------------------------------------- |
|
|
|
|
118,120 |
13,223 |
7,323 |
6,562 |
145,228 |
124,574 |
|
|
|
|
====================================================================== |
|
|
|
|
Askari |
|
Ghandhara |
|
First |
|
National |
|
|
Leasing |
|
Leasing |
|
Leasing |
|
Development |
|
|
Limited |
|
Company |
|
Corporation |
|
Leasing |
|
|
|
|
Limited |
|
Limited |
|
Corporation |
|
|
|
|
|
|
|
|
Limited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Rupees in thousand) |
|
|
|
|
|
|
|
|
|
|
|
|
| No.
of lease facilities |
2 |
|
1 |
|
1 |
|
1 |
|
| No.
of monthly installments |
60 |
|
60 |
|
60 |
|
49 |
|
| Last
installment due |
|
15 May, 2002 |
|
15 July, 2001 |
|
15 July, 2001 |
|
20 August, 2000 |
|
| Discount
factor applied P.A. |
22.07% & |
|
21.50% |
|
21.50% |
|
20.50% |
|
|
|
23.50% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Residual
value at the end of |
|
|
|
|
|
|
|
| lease term |
|
Rs. 2.000 |
|
Rs. 5.000 |
|
Rs. 1.500 |
|
Rs. 0.910 |
|
|
|
million & |
|
million |
|
million |
|
million |
|
|
|
Rs. 10.600 |
|
|
|
|
million |
|
|
|
| Security |
|
- First charge |
|
- Hypothecation |
Promissory |
|
|
|
on fixed assets |
over Company's |
note |
|
|
|
of the Company |
|
current assets |
|
|
|
|
- First charge |
|
|
- First registered |
|
|
|
on present and |
|
|
charge over |
|
|
|
future current |
|
|
Company's |
|
|
|
assets of the |
|
|
current |
|
|
|
Company |
|
|
assets |
|
|
|
|
|
|
|
- Pledge of |
|
|
- Personal |
|
|
|
1.58 million |
|
|
guarantees |
|
|
|
shares of the |
|
|
of the directors |
|
|
|
Company |
|
|
|
|
|
- Personal |
|
|
|
guarantees |
|
|
|
of the directors |
|
|
|
| 5.1
Lease finance facility amounting Rs. 106 million available from Askari
Leasing Limited (A.L.L.) has been |
|
| rescheduled
during the current year on the following terms and conditions: |
|
|
| Amount
rescheduled: |
|
Rs. 106,663 thousand |
|
|
|
|
| Salvage
value: |
|
Rs. 10,600 thousand |
|
| (To
be adjusted against lease |
|
| key
money already deposited) |
|
|
|
|
| - Period: |
|
|
45 months |
|
|
|
|
| - Grace period: |
|
1 month |
|
|
| - Rent: |
|
|
- Rs. 400 thousand per
month |
|
|
for first 6 months from |
|
|
January, 1998 |
|
|
|
|
|
- Rs. 700 thousand per
month |
|
|
|
for next 6 months |
|
|
|
|
|
- Rs. 4,760 thousand per
month |
|
|
|
for next 32 months |
|
|
| 5.2
Lease finance facility amounting Rs. 20 million available from A.L.L. has
also been rescheduled during the |
|
| current
year on the following terms and conditions: |
|
|
| - Amount rescheduled: |
|
Rs. 20,420 thousand |
|
|
|
|
|
|
| - Salvage value: |
|
Rs. 2,000 thousand |
|
| (To
be adjusted against lease |
|
| key
money already deposited) |
|
|
| - Period: |
|
|
54 months |
|
|
|
|
| - Grace period: |
|
1 month |
|
|
|
|
| - Rent |
|
|
Rs. 100 thousand per
month for |
|
|
first 12 months from
January, 1998 |
|
|
|
- Rs. 588 thousand for
next 11 months |
|
|
|
|
|
|
|
- Rs. 910 thousand for
next 30 months |
|
|
|
|
| 6.
DEFERRED TAXATION |
|
|
|
|
|
|
|
Note |
1998 |
1997 |
|
|
|
|
|
(Rupees
in thousand) |
|
|
|
|
| Deferred
liability arising due to accelerated |
|
| tax
depreciation allowance |
|
18,048 |
19,073 |
|
|
|
|
| Deferred
debits arising in respect of |
|
| provision
for excise duty, doubtful |
|
| debts
and vacation benefits |
|
|
(3,361) |
(3,492) |
|
|
|
|
---------- |
---------- |
|
|
|
|
14,687 |
15,581 |
|
|
|
|
========== |
========== |
|
|
| 6.1
Tax effects aggregating Rs. 14.983 million (Credit) including Rs. 3.529
million for the current year on timing |
|
| differences
aggregating Rs. 45.404 million including Rs. 10.694 million for the current
year have not been |
|
| provided
for in these accounts as management considers that the said timing
differences are not likely to reverse |
|
| in
the foreseeable future. |
|
|
| 7.
VACATION BENEFITS |
|
| These
represent balance of provision made against un-availed leaves of employees
payable on |
|
| retirement/resignation/termination.
The balance includes Rs. 2,190 thousand (1997: Rs. 3,140 thousand) being |
|
| provision
for Executives. |
|
|
| 8.
LONG TERM DEPOSITS FROM CUSTOMERS |
|
| These
represent interest free securities received from Dealers which are refundable
on termination of Dealership. |
|
|
| 9.
SHORT TERM FINANCES |
|
| Secured |
|
|
| The
Hongkong and Shanghai Banking |
|
|
| Corporation
Ltd. |
|
|
9.1 |
34,715 |
32,373 |
|
| The
Bank of Punjab |
|
9.2 |
6,478 |
0 |
|
| Unsecured |
|
|
|
|
|
| Temporary
bank overdraft |
|
9.3 |
3,609 |
762 |
|
| Others |
|
|
9.4 |
3,508 |
0 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
48,310 |
33,135 |
|
|
|
|
========== |
========== |
|
|
| 9.1
Short term running finance facility available from The Hongkong and Shanghai
Banking Corporation Ltd. |
|
| under
mark-up arrangements amounts to Rs. 80.699 million (1997: Rs. 53.0 million).
The facility is secured |
|
| against
Bank's lien over U.S.$ fixed deposit accounts (note 23.2) and hypothecation
charge over stocks and |
|
| book
debts of the Company. The facility carries mark-up @ Rs. 0.4109 per thousand
Rupees per day and is |
|
| available
uptill 30 June, 1998. |
|
|
|
| 9.2
This finance has been created by The Bank of Punjab against payment of import
foreign bills. It is secured |
|
| against
imported goods and carries mark-up @ Rs. 0.60 per thousand Rupees per day. It
is due for payment. |
|
|
| 9.3
This arose due to issuance of cheques for amounts in excess of balance at the
bank account. |
|
|
| 9.4
This represents balance of a short term loan amounting Rs. 6.508 million
provided by East West Infinity (Pvt.) |
|
| Ltd.
The loan carries mark-up @ Rs.0.57 per thousand Rupees per day. |
|
|
|
| 10.
CREDITORS, ACCRUED AND OTHER LIABILITIES |
|
|
|
|
|
|
Note |
1998 |
1997 |
|
|
|
|
|
(Rupees in thousand) |
|
|
|
|
| Creditors |
|
|
|
22,499 |
25,830 |
|
| Accrued
expenses |
|
|
79,222 |
43,528 |
|
| Mark-up
on short term finances |
|
|
1,276 |
33 |
|
| Finance
charges accrued on liabilities |
|
| against
assets subject to finance lease |
|
1,371 |
0 |
|
| Workers'
(Profit) Participation Fund |
10.1 |
4,575 |
4,963 |
|
| Due to: |
|
|
|
| - Employees |
|
|
|
1,996 |
786 |
|
| - Directors |
|
|
|
58 |
366 |
|
| Income
tax deducted at source |
|
|
236 |
167 |
|
| Due
to provident fund trust |
|
7,077 |
2,888 |
|
| Due
to gratuity fund trust |
|
8,001 |
8,718 |
|
| Advances
from customers |
|
100,976 |
56,435 |
|
| Interest
free deposits: |
|
|
| Repayable
on demand |
|
|
2,805 |
1,044 |
|
| Others |
|
|
|
4,981 |
5,573 |
|
|
|
---------- |
---------- |
|
|
|
7,786 |
6,617 |
|
| Sales
tax payable |
|
|
0 |
1,423 |
|
| Others |
|
|
968 |
945 |
|
|
|
|
---------- |
---------- |
|
|
|
236,041 |
152,699 |
|
|
|
|
========== |
========== |
|
|
|
|
| 10.1
Worker's (Profit) Participation Fund |
|
| Opening
balance |
|
|
4,963 |
4,454 |
|
| Add:
Interest on funds utilised |
|
|
| by
the Company |
|
567 |
620 |
|
|
|
---------- |
---------- |
|
|
|
5,530 |
5,074 |
|
| Less:
Funds transferred to trust |
|
955 |
111 |
|
|
|
---------- |
---------- |
|
|
|
4,575 |
4,963 |
|
|
|
|
========== |
========== |
|
|
|
|
Note |
1998 |
1997 |
|
|
|
|
|
(Rupees in thousand) |
|
|
|
|
| 11.
TAXES AND DUTIES |
|
|
|
| Provision
for taxation |
|
11.1 |
34,387 |
36,735 |
|
| Excise duty |
|
12.1 |
1,760 |
1,760 |
|
| Local taxes |
|
|
7,174 |
5,773 |
|
| Excise
duty on minerals |
|
|
232 |
225 |
|
| Sales
tax payable |
|
|
0 |
6,431 |
|
| Royalty |
|
|
1,290 |
1,396 |
|
|
|
|
---------- |
---------- |
|
|
|
|
44,843 |
52,320 |
|
|
|
|
========== |
========== |
|
|
| 11.1
Provision for taxation - net |
|
| Opening
balance |
|
|
43,784 |
458,907 |
|
|
|
|
|
|
| Provision
made during the year |
|
|
| Current
year |
|
4,333 |
4,722 |
|
| Prior years |
|
|
404 |
21,725 |
|
|
|
---------- |
---------- |
|
|
|
4,737 |
26,447 |
|
|
|
---------- |
---------- |
|
|
|
48,521 |
485,354 |
|
| Less:
Payments/adjustments against |
|
|
| completed
assessments |
|
|
6,054 |
441,570 |
|
|
|
---------- |
---------- |
|
|
|
42,467 |
43,784 |
|
| Less:
Payment of advance tax/tax |
|
|
| deducted
at source |
|
|
8,080 |
7,049 |
|
|
|
---------- |
---------- |
|
|
|
34,387 |
36,735 |
|
|
|
|
========== |
========== |
|
|
| a)
Income tax assessments of the Company have been completed upto the Income
Year ended 30 June, 1996 |
|
| (Assessment
Year 1996-97). |
|
|
| b)
The Assessing Officer while finalising the Company's assessments for the
Income Years ended 30 June, |
|
| 1993
to 30 June, 1996 (Assessment Years 1993-94 to 1996-97) made certain add-backs
to income against |
|
| which
the Company filed appeals with the Commissioner of Income Tax (Appeals)
{CIT}. The CIT, for |
|
| the
Assessment Year 1993-94, partly deleted the additions made by the Assessing
Officer. The Company |
|
| filed
an appeal before the Income Tax Appellate Tribunal (ITAT) against the said
orders of the CIT. |
|
|
| The
ITAT, for the Assessment Year 1993-94, vide its orders dated 17 February,
1998 partly accepted the |
|
| Company's
contention. The Company, thereafter filed an appeal under section 136 of the
Income Tax |
|
| Ordinance,
1979 before the Lahore High Court. |
|
|
| c)
The Company, for the Assessment Year 1993-94, filed an application before the
ITAT for the stay of |
|
| penalty
amounting Rs. 16.335 million imposed under section 111 of the Income Tax
Ordinance, 1979. The |
|
| ITAT
accepted the application and allowed the stay upon part payment of Rs. 2.500
million. |
|
|
| d)
Provision for taxation is considered adequate to discharge the expected
liability. |
|
|
|
| 12.
CONTINGENCIES AND COMMITMENTS |
|
|
| 12.1
Excise duty arrears demand of Rs. 16.276 thousand in respect of capacity
production period 1966-67 to |
|
| 1973-74
made by the Central Excise and Land Customs Department had not been accepted
by the Company. |
|
| The
Company had calculated its liability at Rs. 1,760 thousand on the basis of
actual production which was |
|
| accounted
for in prior years. On appeals filed by the Company, the Central Board of
Revenue remanded the |
|
| case
to the Collector of Central Excise and Land Customs, Rawalpindi. |
|
|
| 12.2
The Excise and Taxation Department had claimed Rs. 43 thousand on account of
short payment of education |
|
| cess
upto 30 June, 1984. The Company has not accepted this claim and the matter is
pending with the Excise |
|
| and
Taxation Department. |
|
|
|
| 12.3
The Adjudicating Authority of the Employees Old Age Benefits Institution
imposed penalty amounting Rs. |
|
| 102
thousand for various periods in respect of daily wages labour and some of the
officers. The Company has |
|
| not
accepted the said demand and filed an appeal with the competent Authority to
waive-off the said demand. |
|
| The
appeal is pending for decision. |
|
|
| 12.4
The Company filed a writ petition in the Lahore High Court (the Court)
against imposition of export tax on |
|
| raw
materials by District Council, Chakwal (the Council) and refund of amounts
already paid on this account. |
|
| The
Court vide its judgment dated 18 February, 1997 directed the Council to
refrain from collecting export |
|
| tax
on raw materials brought by the Company from its quarries to its factory. The
Court further directed the |
|
| Council
to refund to the Company the sum of Rs. 45.948 million recovered from it
during the period from |
|
| 1985-86
to 1996-97. |
|
|
| The
Lahore High Court - Rawalpindi Bench vide its order dated 17 March, 1997, on
a revision application by |
|
| the
Council, suspended the operation of the judgment dated 18 February, 1997. The
matter is still pending |
|
| adjudication
with the Lahore High Court - Rawalpindi Bench. |
|
|
| 12.5
District Council - Chakwal served notices dated 25 July, 1998 and 05 August,
1998 whereby the Company |
|
| has
been directed to deposit an amount of Rs. 5,400 thousand being 'exit tax'
pertaining to the year 1996-97 |
|
| and
also for the deposit of such tax on the prescribed rate in future. The
Company has undertaken to deposit |
|
| the
said amount with the Additional Registrar of the Lahore High Court -
Rawalpindi Bench (the Court). The |
|
| Court
has further directed that future deposits will be made with the Additional
Registrar of the Court and |
|
| these
amounts will not be paid to any party pending disposal of this case. |
|
|
|
|
| 12.6 |
|
|
|
1998 |
1997 |
|
|
|
|
(Rupees
in thousand) |
|
| Commitments
outstanding for |
|
|
|
| -
Capital expenditure |
|
|
|
0 |
8,628 |
|
| -
Revenue expenditure |
|
|
|
0 |
1,251 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
0 |
9,879 |
|
|
|
|
|
========== |
========== |
|
|
| 12.7
Counter guarantees given by the Company to Financial Institutions on behalf
of its Subsidiary Company |
|
| outstanding
as at 30 June, 1998 aggregated Rs. 499.328 million (1997: Rs. 487.016
million). |
|
|
| 12.8
Counter guarantees given by the Company to Sui Northern Gas Pipelines Limited
outstanding as at 30 June, |
|
| 1998
aggregated Rs. 74.0 million (1997: Nil) |
|
|
| 13.
OPERATING FIXED ASSETS |
|
|
|
|
|
|
|
COST/REVALUATION |
|
DEPRECIATION |
|
Book |
|
As at |
Additions |
Disposals |
As at |
Rate |
To |
For |
On |
To |
Value as |
| PARTICULARS |
|
30 June, |
during |
during |
30 June, |
% |
30 June, |
the |
disposal |
30 June, |
at 30 |
|
1997 |
the year |
the year |
1998 |
|
1997 |
year |
|
1998 |
June 1998 |
|
| Owned: |
|
| Land
- Freehold |
|
| Cost |
|
63 |
0 |
0 |
63 |
0 |
0 |
0 |
0 |
0 |
63 |
| Revaluation |
|
356,674 |
0 |
0 |
356,674 |
0 |
0 |
0 |
0 |
0 |
356,674 |
|
|
--------------------------------------------------------------------------------------------------------------------- |
|
|
356,737 |
0 |
0 |
356,737 |
0 |
0 |
0 |
0 |
0 |
356,737 |
|
|
|
|
|
| Buildings
& Foundations |
|
|
|
| On
freehold land |
|
|
|
|
| Cost |
|
87,918 |
75 |
0 |
87,918 |
5-10 |
55,073 |
2,894 |
0 |
57,967 |
30,026 |
| Revaluation |
|
204,133 |
0 |
0 |
204,133 |
5-10 |
77,004 |
11,321 |
0 |
88,325 |
115,808 |
|
|
--------------------------------------------------------------------------------------------------------------------- |
|
|
292,051 |
75 |
0 |
292,126 |
|
132,077 |
14,215 |
0 |
146,292 |
145,834 |
|
| On
leasehold land |
|
| Cost |
|
3,264 |
0 |
0 |
3,264 |
5-10 |
2,908 |
35 |
0 |
2,943 |
321 |
| Revaluation |
|
10,546 |
0 |
0 |
10,546 |
5-10 |
4,306 |
621 |
0 |
4,927 |
5,619 |
|
|
--------------------------------------------------------------------------------------------------------------------- |
|
|
13,810 |
0 |
0 |
13,810 |
|
7,214 |
656 |
0 |
7,870 |
5,940 |
|
| Plant
and machinery |
|
| Cost |
|
|
296,444 |
6,226 |
0 |
302,670 |
10-20 |
212,191 |
10,903 |
0 |
223,094 |
79,576 |
| Revaluation |
|
|
415,035 |
0 |
0 |
415,035 |
10-20 |
181,670 |
24,797 |
0 |
206,467 |
208,568 |
|
|
--------------------------------------------------------------------------------------------------------------------- |
|
|
711,479 |
6,226 |
0 |
717,705 |
|
393,861 |
35,700 |
0 |
429,561 |
288,144 |
|
| Railway
sidings |
|
| Cost |
|
|
889 |
0 |
0 |
889 |
7 |
831 |
4 |
0 |
835 |
54 |
| Revaluation |
|
|
7,416 |
0 |
0 |
7,416 |
7 |
2,256 |
361 |
0 |
2,617 |
4,799 |
|
|
--------------------------------------------------------------------------------------------------------------------- |
|
|
8,305 |
0 |
0 |
8,305 |
|
3,087 |
365 |
0 |
3,452 |
4,853 |
|
|
|
|
|
| Roads |
|
2,742 |
0 |
0 |
2,742 |
5 |
1,541 |
60 |
0 |
1,601 |
1,141 |
| Loose tools |
|
1,403 |
0 |
0 |
1,403 |
10 |
1,104 |
30 |
0 |
1,134 |
269 |
|
|
|
| Furniture
fixtures and office |
|
| equipment |
|
36,290 |
107 |
11 |
36,386 |
10 |
13,984 |
2,241 |
5 |
16,220 |
20,166 |
|
|
|
|
|
| Transport
assets |
|
41,143 |
724 |
3,373 |
38,494 |
20 |
23,120 |
3,350 |
1,378 |
25,092 |
13,402 |
|
|
--------------------------------------------------------------------------------------------------------------------- |
|
|
1,463,960 |
7,132 |
3,384 |
1,467,708 |
|
575,988 |
56,617 |
1,383 |
631,222 |
836,486 |
| Assets
held under |
|
|
|
|
| finance
leases: |
|
|
|
|
| Plant
and machinery |
|
29,192 |
12,341 |
0 |
41,533 |
10-20 |
4,982 |
5,306 |
0 |
10.29 |
31,245 |
|
--------------------------------------------------------------------------------------------------------------------- |
|
|
1,493,152 |
19,473 |
3,384 |
1,509,241 |
|
580,970 |
61,923 |
1,383 |
641,510 |
867,731 |
|
|
===================================================================================================================== |
| 1997 |
|
1,459,660 |
35,036 |
1,544 |
1,493,152 |
|
512,961 |
68,762 |
753 |
580,970 |
912,182 |
|
|
| 13.1
The Company, during 1992-93, revalued freehold land, buildings on freehold
and leasehold land, plant & |
|
| machinery
and railway sidings located at its Plant Site at District Chakwal. The
revaluation exercise was |
|
| carried-out
on the basis of depreciated replacement cost except freehold land which was
revalued on the basis |
|
| of
reassessed replacement value. The revaluation produced an appraisal surplus
of Rs. 993.804 million which |
|
| was
credited to 'Surplus on Revaluation of Fixed Assets Account' (note 4). |
|
|
| 13.2
Disposal of operating fixed assets |
|
|
|
|
|
|
Accumulated |
Book |
Sale proceed/ |
Gain/ |
Received from |
|
| Particulars |
|
Cost |
depreciation |
value |
Insurance |
(Loss) |
|
|
|
claim |
|
|
|
| Furniture,
fixtures and |
|
| office
equipment |
11 |
5 |
6 |
11 |
5 |
Ex-employees |
|
|
|
|
|
| Transport
assets |
|
|
|
|
|
|
| Mitsubishi
Pajero |
1,294 |
259 |
1,035 |
800 |
(235) |
Malik Yousaf
(Ex-employee) |
|
|
|
|
|
| Toyota
Hilux |
1,035 |
611 |
424 |
688 |
264 |
Mr. Muhammad Amir, |
|
|
|
|
3-A, Jail Road, Lahore. |
|
|
|
|
|
| Suzuki
Margala |
350 |
258 |
92 |
230 |
138 |
Mr. Muhammad Shoeb Khan |
|
|
|
|
12 l-M, Gulberg-III,
Lahore |
|
|
|
|
|
| Honda Civic |
|
694 |
250 |
444 |
595 |
151 |
Adamjee Insurance |
|
|
|
Company Limited. |
|
|
------------------------------------------------------------ |
|
|
3,373 |
1,378 |
1,995 |
2,313 |
318 |
|
|
------------------------------------------------------------ |
|
|
3,384 |
1,383 |
2,001 |
2,324 |
323 |
|
|
============================================================ |
|
|
| 13.3
Depreciation for the year has been apportioned as under |
|
|
|
|
|
|
Note |
1998 |
1997 |
|
|
|
|
(Rupees in thousand) |
|
|
|
|
| Cost
of sales |
|
25 |
56,626 |
62,132 |
|
| General
and administrative expenses |
26 |
3,531 |
4,420 |
|
| Selling
and distribution expenses |
|
27 |
1,766 |
2,210 |
|
|
|
|
---------- |
---------- |
|
|
|
|
61,923 |
68,762 |
|
|
|
|
========== |
========== |
|
|
| 13.4
The Company leased part of its freehold land to its Subsidiary Company during
1996 for a period of twenty |
|
| years
on payment of rent at the rate of Rs. 5 thousand per year Book value of the
said land as at 30 June, 1998 |
|
| was
Rs. 7.200 million (1997: Rs. 7.200 million). |
|
|
|
| 14.
CAPITAL WORK-IN-PROGRESS |
|
|
|
|
Balance |
Additions |
Transfers/ |
Balance |
|
|
|
as at 30 |
during |
Adjustments/ |
as at 30 |
|
| Particulars |
|
|
June, 1997 |
the year |
Expensed |
June, 1998 |
|
|
|
|
|
out during |
|
|
|
|
|
|
the year |
|
|
|
|
|
(Rupees in thousand) |
|
| OWNED: |
|
|
|
| Plant
& machinery |
|
|
| Electrostatic
Precipitator Plant: |
|
| Advance
payments |
|
5,250 |
0 |
5,250 |
0 |
|
| Local
machinery cost |
|
43,902 |
10,166 |
0 |
54,068 |
|
| Civil works |
|
23,440 |
849 |
0 |
24,289 |
|
|
|
|
| Unallocated capital expenditure |
7,330 |
0 |
7,330 |
0 |
|
| (note 14.1) |
|
|
|
|
|
|
| LEASED: |
|
|
|
| Plant
& machinery |
|
|
| - Furnace oil storage tank |
12,211 |
130 |
12,341 |
0 |
|
| - Electrostatic Precipitator
Plant: |
|
| Imported
machinery cost |
177,386 |
0 |
0 |
177,386 |
|
| Borrowing
cost |
|
41,902 |
0 |
0 |
41,902 |
|
|
|
------------------------------------------------ |
|
|
|
311,421 |
11,145 |
24,921 |
297,645 |
|
|
|
================================================ |
|
| 1997 |
|
262,966 |
246,891 |
198,436 |
311,421 |
|
|
|
|
|
|
|
|
|
|
|
| 14.1
Unallocated capital expenditure aggregating Rs. 6.805 million have been
expensed out during the year as no |
|
| future
economic benefits are expected to arise from these expenditure. |
|
|
|
| 15.
LONG TERM INVESTMENTS |
|
|
|
|
|
|
Note |
1998 |
1997 |
|
|
|
|
|
(Rupees in thousand) |
|
| Quoted |
|
|
|
|
| Mustehkam
Cement Limited |
|
|
| 5,666
fully paid ordinary shares of Rs 10 each |
15.1 |
873 |
873 |
|
|
|
|
|
|
|
| Less:
Provision for diminution in value |
|
811 |
704 |
|
|
|
|
|
|
|
---------- |
---------- |
|
|
| Market
value |
|
|
|
62 |
169 |
|
|
|
|
|
| Unquoted
- At cost |
|
|
|
| Subsidiary
Company |
|
|
| GCL
Electric Company Ltd. |
|
|
| 14,998,000 (1997:
255,000) fully paid ordinary |
|
149,980 |
2,550 |
|
| shares
of Rs. 10 each 15.2 |
|
---------- |
---------- |
|
|
|
|
150,042 |
2,719 |
|
|
|
|
========== |
========== |
|
|
|
| 15.1
Equity held by the Company in the Investee Company was less than 10% of the
total equity of the investee |
|
| Company. |
|
|
| 15.2
Equity held by the Company in the Subsidiary Company was 99.99% (1997:
99.22%) of the total equity of the |
|
| Subsidiary
Company. |
|
|
| 16.
LONG TERM DEPOSITS AND PREPAYMENTS |
|
|
|
Note |
1998 |
1997 |
|
|
|
|
|
(Rupees in thousand) |
|
|
|
|
| Security
deposits |
|
|
|
511 |
684 |
|
|
| Bank
guarantees' margin deposits |
|
|
11,153 |
0 |
|
|
| Advance
rent |
|
|
|
97 |
490 |
|
|
| Prepaid
bank guarantees commission |
|
|
518 |
0 |
|
|
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
12,279 |
1,174 |
|
|
|
|
|
========== |
========== |
|
|
| 17.
LONG TERM LOANS AND ADVANCES TO STAFF - Considered good |
|
|
|
|
|
TOTAL |
|
|
Executives |
Officers |
Staff |
1998 |
1997 |
|
|
|
|
|
(Rupees in thousand) |
|
| Secured |
|
|
| House
building loans |
|
1,515 |
489 |
20,354 |
22,358 |
28,722 |
|
| Vehicle
loans |
|
1,391 |
75 |
1,512 |
2,978 |
4,716 |
|
|
| Unsecured-Interest
free |
|
| House
repair loans |
|
0 |
0 |
1,110 |
1,110 |
1,578 |
|
| Emergency
loans |
|
27 |
0 |
75 |
102 |
171 |
|
|
2,933 |
564 |
23,051 |
26,548 |
35,187 |
|
|
| Less:
Current portion grouped |
|
| under
current assets |
|
|
| (note 21) |
|
|
807 |
95 |
3,544 |
4,446 |
5,720 |
|
|
|
------------------------------------------------------------ |
|
|
2,126 |
469 |
19,507 |
22,102 |
29,467 |
|
|
============================================================ |
|
|
| 17.1
The above balances may be classified as under: |
|
|
| Outstanding
for period |
|
| exceeding
3 years |
|
1,284 |
444 |
12,998 |
14,726 |
14,529 |
|
|
|
|
| Others |
|
842 |
25 |
6,509 |
7,376 |
14,938 |
|
|
|
------------------------------------------------------------ |
|
|
|
2,126 |
469 |
19,507 |
22,102 |
29,467 |
|
|
============================================================ |
|
|
|
| 17.2
Interest rate and terms of repayment |
|
|
|
Executives |
Officers |
Staff |
|
|
| Rate
of interest: |
|
| House
building loans |
|
5% |
5% |
3% |
|
| Vehicle
loans |
|
5% |
5% |
Interest Free |
|
|
|
|
|
| Installments: |
|
|
|
| House
building loans |
|
120 |
120 |
144 & 240 |
|
| Vehicle
loans |
|
96 & 100 |
96 & 100 |
96 & 100 |
|
| House
repair loans |
|
|
- |
60 & 125 |
|
| Emergency
loans |
|
20 |
20 |
15 & 20 |
|
|
| 17.3
Security |
|
|
| House
building and vehicle loans are secured against charge and lien on provident
fund balance, lien on |
|
| gratuity,
personal/third party guarantees, promissory notes and title of ownership of
vehicles. |
|
|
| 17.4
Maximum aggregate balances due from the Executives during the year were Rs.
5.883 million |
|
| (1997:
Rs. 7.061 million). |
|
|
|
|
| 18.
STORES, SPARES AND LOOSE TOOLS |
|
|
|
|
|
1998 |
1997 |
|
|
|
|
(Rupees in thousand) |
|
|
|
|
| Stores |
|
61,556 |
63,316 |
|
| Spares |
|
52,747 |
58,388 |
|
| Loose tools |
|
686 |
716 |
|
|
|
---------- |
---------- |
|
|
|
114,989 |
122,420 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 19.
STOCK-IN-TRADE |
|
|
|
| Raw
materials |
|
6,493 |
13,128 |
|
| Work-in-process |
|
73,587 |
4,283 |
|
| Finished
goods |
|
8,503 |
7,701 |
|
| Packing
materials |
|
887 |
1,322 |
|
| Others |
|
336 |
356 |
|
|
|
---------- |
---------- |
|
|
|
89,806 |
26,790 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 20.
TRADE DEBTORS - Unsecured |
|
|
|
| Considered
doubtful |
|
442 |
442 |
|
| Less:
Provision for doubtful debts |
|
442 |
442 |
|
|
|
---------- |
---------- |
|
|
|
0 |
0 |
|
|
|
========== |
========== |
|
|
| 21.
LOANS, ADVANCES DEPOSITS, PREPAYMENTS |
|
| AND
OTHER RECEIVABLES |
|
|
|
|
|
|
|
|
| Due
from Subsidiary Company |
|
|
19,143 |
139,048 |
|
|
|
|
| Advances
to staff- Considered good |
|
|
| Executives |
|
|
1,205 |
1,313 |
|
| Employees |
|
|
4,753 |
8,133 |
|
|
|
|
---------- |
---------- |
|
|
|
|
5,958 |
9,446 |
|
| Current
portion of long term loans and |
|
| advances
to staff |
|
17 |
4,446 |
5,720 |
|
| Advances
to suppliers |
|
|
|
|
| -
Considered good |
|
21.4 |
15,252 |
37,721 |
|
| Excise duty |
|
|
1,519 |
2,193 |
|
| Prepayments |
|
|
1,255 |
579 |
|
| Accrued
interest |
|
|
238 |
355 |
|
| Claims
receivable |
|
|
790 |
790 |
|
| Letters
of credit |
|
|
0 |
4 |
|
| Margin
deposits |
|
|
0 |
164 |
|
| Expansion
project engineering fee |
|
|
|
| refundable |
|
21.5 |
46,000 |
18,536 |
|
|
|
|
| Others |
|
|
118 |
7,425 |
|
|
|
|
---------- |
---------- |
|
|
|
|
94,719 |
221,981 |
|
|
|
|
========== |
========== |
|
|
| 21.1
Maximum aggregate debit balances due from Executives at any month end during
the year were Rs. 2.501 |
|
| million
(1997: Rs. 0.889 million) |
|
|
| 21.2
Maximum aggregate amounts due from Directors at any month end during the year
were Rs. 1.854 million |
|
| (1997:
Rs. 1.783 million). |
|
|
| 21.3
Maximum aggregate debit balances due from Subsidiary Company at any month end
during the year were |
|
| Rs.
158.578 million (1997: Rs. 139.048 million). |
|
|
| 21.4
These include receivables from Pakistan State Oil Company Ltd. aggregating
Rs. 4.429 million. |
|
| Reconciliation
with PSO was in process as at 30 June, 1998. |
|
|
| 21.5
This represents balance of advance of engineering fees in respect of the
Expansion Project remitted in U.S. |
|
| Dollars
in prior years. The Expansion Project Contract was revoked during the
Financial Year 1996-97 due |
|
| to
certain technical modifications and unfavourable market conditions prevalent
in Pakistan Cement Industry. |
|
| The
Company received-back Rs. 166.237 million by 30 June, 1998 and the balance
amounting Rs. 46.000 |
|
| million
has been agreed to be remitted by the Contractor to the Company. Exchange
gain aggregating |
|
| Rs.
49.964 million arisen due to revocation of the Contract has been grouped
under Other Income (note 30). |
|
|
|
| 21.6
Aggregate transactions with Subsidiary Company during the year were as
follows: |
|
|
|
|
|
Note |
1998 |
1997 |
|
|
|
|
|
(Rupees in thousand) |
|
|
|
|
| Funds
transferred to Subsidiary |
|
|
| Company |
|
|
11,485 |
19,505 |
|
|
|
|
| Expenses
incurred on behalf of |
|
|
| Subsidiary
Company |
|
|
12,566 |
28,131 |
|
|
|
|
| Advance
payments on behalf of |
|
|
| Subsidiary
Company |
|
|
56,588 |
101,562 |
|
|
|
|
| Lease
payments on behalf of |
|
|
| Subsidiary
Company |
|
|
3,687 |
45,841 |
|
|
|
|
| Funds
received back from |
|
|
| Subsidiary
Company |
|
|
25,976 |
55,991 |
|
|
|
|
| Shares
of Subsidiary Company |
|
|
| subscribed |
|
|
147,430 |
0 |
|
|
|
| 22.
SHORT TERM INVESTMENTS |
|
|
|
|
| The
par value of these |
|
1998 |
1997 |
1998 |
1997 |
|
| shares/certificates
are of |
|
No. of shares/ |
(Rupees in thousand) |
|
| Rs.
10 each. |
|
certificates |
|
|
|
|
| QUOTED |
|
|
|
| Ist
Habib Modaraba |
|
163 |
163 |
1 |
1 |
|
| Ist
Constellation Modaraba |
|
50 |
50 |
1 |
1 |
|
| 1st
Punjab Modaraba |
|
110 |
110 |
1 |
1 |
|
| Ist
Tawakkal Modaraba |
|
60 |
60 |
1 |
1 |
|
| Al-Zamin
Modaraba |
|
50 |
50 |
1 |
1 |
|
| Inter
Asia Leasing Company Ltd. |
|
1,000 |
1,000 |
11 |
11 |
|
| Mehran
Bank Ltd. |
|
3,300 |
3,300 |
33 |
33 |
|
| Taj
Textile Mills Ltd. |
|
143,500 |
143,500 |
811 |
811 |
|
| Friends
Spinning Mills Ltd. |
|
22,990 |
22,990 |
184 |
184 |
|
| Friends
Textile Mills Ltd. |
|
6,800 |
6,800 |
47 |
47 |
|
| Ghazi
Fabrics Int'l Ltd. |
|
2,900 |
2,900 |
12 |
12 |
|
| Maple
Leaf Cement Factory Ltd. |
|
60 |
60 |
1 |
1 |
|
| Pakistan
International Air Lines Corporation |
292 |
292 |
2 |
2 |
|
| Tri-Star
Shipping Lines Ltd. |
|
1,100 |
1,100 |
9 |
9 |
|
| Hub
Petro Chemicals Ltd. |
|
500 |
500 |
4 |
4 |
|
| Wali
Oil Mills Ltd. |
|
1,000 |
1,000 |
10 |
10 |
|
|
|
|
---------- |
---------- |
|
|
|
|
1,129 |
1,129 |
|
|
|
|
| Less:
Provision for diminution in value |
|
625 |
149 |
|
|
|
---------- |
---------- |
|
| Market
value as at 30 June, |
|
504 |
980 |
|
|
|
|
========== |
========== |
|
|
|
Note |
1998 |
1997 |
|
|
|
|
|
(Rupees in thousand) |
|
|
|
|
| 23.
CASH AND BANK BALANCE |
|
|
|
|
|
|
|
| In hand |
|
|
153 |
151 |
|
| At
banks on: |
|
|
| -
Current accounts |
|
23.1 |
2,067 |
42,016 |
|
| -
Savings accounts |
|
|
1,606 |
623 |
|
| -
Deposit accounts |
|
23.2 |
39,438 |
0 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
43,111 |
42,639 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
43,264 |
42,790 |
|
|
|
|
|
========== |
========== |
|
|
|
| 23.1
These include foreign currency balance of U.S.$ 500 (1997: U.S.$ 820.003)
which has been converted into Pak |
|
| Rupees
at the exchange rate prevailing on the balance sheet date i.e. 1 U.S.$=Rs.
46.00 (1997: Rs. 40.4195) |
|
|
| 23.2
These fixed deposit accounts aggregating U.S.$ 857.352 were under a bank's
lien as at 30 June, 1998 as |
|
| security
against short term finance facilities availed from it. |
|
|
|
| 24.
SALES- Net |
|
|
|
|
|
|
1998 |
1997 |
|
|
|
|
|
(Rupees in thousand) |
|
|
|
|
| Cement
sales |
|
1,484,754 |
1,771,259 |
|
|
|
|
| Less: |
|
|
|
| Excise duty |
|
|
618,174 |
566,878 |
|
| Sales tax |
|
|
0 |
260,097 |
|
| Rebate
to stockist |
|
68,844 |
44,368 |
|
| Siding
and other charges recovered |
|
|
| (included
in Other Income - note 30) |
|
208 |
245 |
|
|
|
---------- |
---------- |
|
|
|
687,226 |
871,588 |
|
|
|
---------- |
---------- |
|
|
|
797,528 |
899,671 |
|
|
|
|
========== |
========== |
|
|
|
|
| 25.
COST OF SALES |
|
|
|
|
|
| Raw
materials consumed |
|
25.1 |
82,842 |
76,557 |
|
| Packing
materials consumed |
|
|
99,257 |
145,805 |
|
| Stores
and spares consumed |
|
|
38,213 |
44,187 |
|
| Electricity,
water and gas |
|
|
157,628 |
153,477 |
|
| Salaries,
wages and benefits |
|
|
46,793 |
46,317 |
|
| Fuel |
|
|
373,469 |
400,898 |
|
| Rent,
rates and taxes |
|
|
1,434 |
1,158 |
|
| Repair
and maintenance |
|
|
27,806 |
46,591 |
|
| Depreciation |
|
|
56,626 |
62,132 |
|
| Insurance |
|
|
2,442 |
1,742 |
|
| Other
expenses |
|
|
24,288 |
26,116 |
|
|
|
|
---------- |
---------- |
|
|
|
|
910,798 |
1,004,980 |
|
| Adjustment
of work-in-process |
|
|
|
|
4,283 |
81,513 |
|
| Opening |
|
|
(73,587) |
(4,283) |
|
| Closing |
|
|
|
---------- |
---------- |
|
|
|
(69,304) |
77,230 |
|
|
|
---------- |
---------- |
|
| Cost
of goods manufactured |
|
841,494 |
1,082,210 |
|
| Adjustment
of finished goods |
|
|
|
| Opening
stock |
|
7,701 |
15,473 |
|
| Closing
stock |
|
(8,503) |
(7,701) |
|
|
|
---------- |
---------- |
|
|
|
(802) |
7,772 |
|
|
|
---------- |
---------- |
|
|
840,692 |
1,089,982 |
|
|
|
|
========== |
========== |
|
|
| 25.1
Raw materials consumed: |
|
|
|
|
| Opening
stock |
|
|
|
13,128 |
3,219 |
|
|
|
|
|
|
| Add: |
|
|
|
|
| Salaries,
wages and benefits |
|
|
29,667 |
29,364 |
|
|
|
|
| Outside
purchases and |
|
|
|
| transportation
cost |
|
|
|
5,305 |
5,056 |
|
| Explosives |
|
|
|
3,174 |
1,525 |
|
| Royalty |
|
|
|
2,900 |
3,088 |
|
| Excise duty |
|
|
|
550 |
601 |
|
| Repair
and maintenance |
|
|
|
13,085 |
21,925 |
|
| Stores
and spares |
|
|
|
3,976 |
4,694 |
|
| Power |
|
|
|
7,782 |
6,287 |
|
| Insurance |
|
|
|
1,149 |
820 |
|
| Local taxes |
|
|
|
6,303 |
10,652 |
|
| Other
overheads |
|
|
|
2,316 |
2,454 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
76,207 |
86,466 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
89,335 |
89,685 |
|
|
|
|
|
|
|
| Less:
Closing stock |
|
|
|
(6,493) |
(13,128) |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
82,842 |
76,557 |
|
|
|
========== |
========== |
|
|
| 25.2
Raw materials (Limestone, clay, Shale, Gypsum and Iron Ore) consumption is
calculated at a standard usage |
|
| of
1.65 metric tonnes for one metric tonne of Clinker produced. |
|
|
|
| 26.
GENERAL AND ADMINISTRATIVE EXPENSES |
|
|
|
Note |
1998 |
1997 |
|
|
|
|
|
(Rupees in thousand) |
|
|
|
|
| Directors'
meeting fee |
|
|
1 |
1 |
|
| Salaries,
wages and benefits |
|
|
15,904 |
18,732 |
|
| Vehicles'
running and maintenance |
|
|
1,215 |
930 |
|
| Travelling
and conveyance {including |
|
|
| Directors'
travelling Rs. 1,025 thousand |
|
|
| (1997:
Rs. 1,038 thousand)} |
|
|
2,049 |
2,759 |
|
| Legal
and professional charges |
|
|
427 |
605 |
|
| Consultancy
and service charges |
|
|
4,553 |
162 |
|
| Auditors'
remuneration |
|
26.1 |
50 |
54 |
|
| Postage,
telegram and telephone |
|
|
1,203 |
1,468 |
|
| Printing
and stationery |
|
|
263 |
614 |
|
| Computer
expenses |
|
|
0 |
76 |
|
| Insurance |
|
|
898 |
992 |
|
| Rent,
rates and taxes |
|
|
1,639 |
2,968 |
|
| Electricity,
water and gas |
|
|
717 |
762 |
|
| Advertisement |
|
|
43 |
212 |
|
| Repair
and maintenance |
|
|
621 |
693 |
|
| Depreciation |
|
|
3,531 |
4,420 |
|
| Miscellaneous |
|
|
863 |
2,669 |
|
|
|
|
---------- |
---------- |
|
|
|
|
33,977 |
38,117 |
|
|
|
|
========== |
========== |
|
|
|
|
| 26.1
Auditors' remuneration |
|
|
| Audit fee |
|
40 |
40 |
|
| Out-of-pocket
expenses |
|
10 |
14 |
|
|
|
---------- |
---------- |
|
|
|
50 |
54 |
|
|
|
========== |
========== |
|
|
| 26.2
Unallocated capital expenditure incurred in prior years aggregating Rs. 6.805
million have been expensed out |
|
| during
the year as stated in note 14.1. These expenditure have been grouped in
respective heads of account. |
|
|
|
| 27.
SELLING AND DISTRIBUTION EXPENSES |
|
|
|
|
|
|
1998 |
1997 |
|
|
|
|
(Rupees in thousand) |
|
|
|
|
| Salaries,
wages and benefits |
|
2,116 |
3,721 |
|
| Forwarding
and demurrage |
|
2,529 |
2,882 |
|
| Travelling
and conveyance |
|
14 |
61 |
|
| Vehicles'
running and maintenance |
|
608 |
465 |
|
| Postage,
telegram and telephone |
|
605 |
743 |
|
| Electricity |
|
359 |
381 |
|
| Advertisement
and sales promotion |
|
446 |
2,143 |
|
| Depreciation |
|
1,766 |
2,210 |
|
| Insurance , |
|
448 |
496 |
|
| Miscellaneous |
|
450 |
240 |
|
|
|
---------- |
---------- |
|
|
|
9,341 |
13,342 |
|
|
|
========== |
========== |
|
|
|
|
| 28.
FINANCIAL CHARGES |
|
|
|
|
|
|
|
|
| Interest
on workers' (profit) participation fund |
|
567 |
620 |
|
| Lease
finance charges |
|
|
|
42,409 |
784 |
|
| Mark-up
on short term finances |
|
|
5,419 |
2,004 |
|
| Commission
on bank guarantees |
|
|
647 |
0 |
|
| Bank
and other charges |
|
|
|
348 |
1,323 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
49,390 |
4,731 |
|
|
|
|
|
========== |
========== |
|
|
|
|
| 29.
OTHER CHARGES |
|
|
|
|
|
|
| Donations
(without directors' interest) |
|
362 |
63 |
|
| Provision
for diminution in value of long |
|
|
| and
short term investments |
|
|
583 |
0 |
|
| Zakat |
|
|
|
53 |
13 |
|
| Bad
debts written-off |
|
|
|
0 |
93 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
998 |
169 |
|
|
|
========== |
========== |
|
|
| 30.
OTHER INCOME |
|
|
|
| Interest
on: |
|
|
|
| Bank
deposits |
|
|
|
2,808 |
3,976 |
|
| Employees'
loans |
|
|
|
790 |
1,032 |
|
| Advance
income tax |
|
|
|
0 |
549 |
|
|
|
|
---------- |
---------- |
|
|
|
|
3,598 |
5,557 |
|
| Lease
rentals |
|
|
13.4 |
5 |
5 |
|
| Dividend |
|
|
|
|
1 |
13 |
|
| Exchange
fluctuation gain (including |
|
|
| Rs.
49.964 million as detailed in note 21.5) |
|
54,836 |
10,423 |
|
| Loading
charges recovered |
|
|
1,249 |
1,471 |
|
| Siding
and other charges |
|
24 |
208 |
245 |
|
| Sale
of scrap |
|
|
|
467 |
1,477 |
|
| Unclaimed
balances written-back |
|
|
254 |
137 |
|
| Gain
on sale of operating fixed assets |
13.2 |
323 |
659 |
|
| Provision
for diminution in value of long and |
|
| short
term investments written-back - net |
|
0 |
143 |
|
| Others |
|
|
|
|
106 |
108 |
|
|
|
|
|
|
---------- |
---------- |
|
|
|
|
61,047 |
20,238 |
|
|
|
|
========== |
========== |
|
|
| 31.
REMUNERATION TO CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES |
|
|
|
|
Chief Executive |
Directors |
Executive |
|
| Particulars |
|
1998 |
1997 |
1998 |
1997 |
1998 |
1997 |
|
|
|
|
|
|
|
|
|
(Rupees in thousand) |
|
| Managerial |
|
| remuneration |
684 |
684 |
600 |
1,268 |
7,462 |
11,573 |
|
|
| Allowances |
|
0 |
0 |
0 |
0 |
612 |
857 |
|
|
| Perquisites
and |
|
|
|
| benefits: |
|
|
|
| House rent |
|
308 |
308 |
360 |
571 |
1,856 |
3,269 |
|
|
| Personal
staff |
|
|
|
| salary |
|
96 |
96 |
120 |
114 |
345 |
595 |
|
|
| Entertainment |
205 |
205 |
120 |
198 |
653 |
1,020 |
|
|
| Utilities
and |
|
|
|
| others |
|
251 |
207 |
170 |
143 |
3,028 |
4,249 |
|
|
|
------------------------------------------------------------------------ |
|
|
|
860 |
816 |
770 |
1,026 |
5,882 |
9,133 |
|
|
| Contributions
to: |
|
|
|
| -
Gratuity Fund |
|
|
|
| Trust |
|
57 |
57 |
50 |
50 |
793 |
749 |
|
|
| -
Provident Fund |
|
|
|
| Trust |
|
68 |
68 |
60 |
17 |
615 |
948 |
|
|
|
------------------------------------------------------------------------ |
|
|
|
1,669 |
1,625 |
1,480 |
2,361 |
15,364 |
23,260 |
|
|
|
======================================================================== |
|
|
| No.
of persons |
1 |
1 |
1 |
3 |
35 |
52 |
|
|
|
|
|
|
|
|
|
|
| 31.1
In addition to above Meeting Fee of Rs. I thousand (1997: Rs. 1 thousand) was
paid to a non-working |
|
| director. |
|
|
| 31.2
Chief executive, directors and some of the executives are entitled to free
use of Company's transport and |
|
| residential
telephones. |
|
|
| 32.
CAPACITY AND PRODUCTION |
|
|
|
|
|
1998 |
1997 |
|
|
|
(Thousand M. Tonnes) |
|
|
|
|
|
| Rated
capacity |
|
|
|
| (Based
on 300 working days) |
|
|
540 |
540 |
|
| Actual
production |
|
|
|
437 |
419 |
|
|
| 33.
STATEMENTS UNDER SECTION 237 OF THE COMPANIES ORDINANCE, 1984 |
|
| The
audited Balance Sheet of Subsidiary Company as at 30 June, 1998 is attached
herewith: |
|
|
| Statement
under sub-section (1) (e) |
|
GCL Electric |
|
|
|
|
Company Ltd. |
|
|
|
|
| a)
Extent of Shareholding |
|
1998 |
99.99% |
|
|
|
1997 |
99.22% |
|
|
| b)
The aggregate amount of profits less losses of |
|
| Subsidiary
Company so far as these concern |
|
| members
of the Holding Company and which |
|
| have
not been dealt within the accounts of the |
|
| Holding
Company for the year ended |
|
|
|
| 30
June, 1998 are: |
|
|
|
Nil |
|
|
|
|
| i)
For the last financial year of the Subsidiary |
|
|
|
| but
subsequent to the acquisition of |
|
|
|
| controlling
interest by the Holding Company. |
|
Nil |
|
|
| ii)
For the previous years but subsequent to the |
|
| acquisition
of controlling interest by the |
|
| Holding
Company. |
|
|
Nil |
|
|
|
|
|
|
| c)
The aggregate amount of profits less losses of |
|
|
|
| Subsidiary
Company so far as these have been |
|
|
|
| dealt
with or provision made for losses in the |
|
|
|
| accounts
of the Holding Company for the year |
|
|
|
| ended
30 June, 1998 are: |
|
|
Nil |
|
|
| i)
for the last financial year of the Subsidiary |
|
Nil |
|
|
|
|
|
|
| ii)
for the previous years but subsequent to the |
|
|
|
| acquisition
of controlling interest by the |
|
|
|
| Holding
Company. |
|
|
Nil |
|
|
| Statement
under sub-section (1) clauses (f) & (g) |
|
Not |
|
|
|
|
Applicable. |
|
|
| 34. FIGURES |
|
|
| -
in the accounts are rounded-off to the nearest thousand rupees; |
|
| -
of the previous year are re-arranged wherever necessary for the purpose of
comparison. |
|
|
|
M. NIAZ PERACHA |
|
FAROOQ ZAMAN |
|
|
DIRECTOR |
|
CHIEF EXECUTIVE |
|
|
|
|
GCL Electic Company Ltd |
|
|
| DIRECTORS'
REPORT TO THE SHAREHOLDERS |
|
|
| The
Directors of your Company are pleased to present the third Annual Report
alongwith the Audited Financial Statement |
|
| for
the year ended 30th June 1998. |
|
|
| In
the year under review there have been no operational activities, therefore,
no Profit & Loss Account has been drawn. The |
|
| report,
however, includes the salient features and the information's regarding the
project and its progress todate. |
|
|
| THE COMPANY |
|
|
| The
Company was incorporated under the Companies Ordinance, 1984, as a Private
Limited Company in January, 1995 and |
|
| was
granted the certificate of incorporation of 17th January 1995. On March 25,
1997 it has been converted into "Public |
|
| Company"
and the Authorised Capital of the Company has also been enhanced. The capital
structure is: |
|
|
|
|
|
(Rupees) |
|
|
|
|
1998 |
1997 |
|
|
|
|
| Authorized |
|
|
|
500,000,000 |
500,000,000 |
|
| Paid-up |
|
|
|
150,000,000 |
2,570,000 |
|
|
| The
Holding Company (Gharibwal Cement Limited) has contributed 99.99% (1997:
99.22%) of the Paid up Capital. |
|
|
| The
sole object of the company is generation and sale of electricity to it's
Holding Company. The Power sale agreement at |
|
| prevailing
WAPDA Tariff Rates has already been executed with Gharibwal Cement Limited. |
|
|
| The
project comprises of 2 Generators with a capacity of 11.33 M.W. The erection
of the machinery has been completed |
|
| and
the plant has started its commercial production since October, 1998. The
revised estimate of the total cost of the |
|
| project
is Rs. 539 million against the original estimate of Rs. 464 million. |
|
|
| AUDITORS |
|
| M/s
Hameed Chaudhary & Co., Chartered Accountants, the retiring Auditors have
offered themselves for re-appointment |
|
| as
Auditors of the Company for the next year ending 30 June, 1999. |
|
|
|
|
for and on behalf of the Board |
|
|
|
|
| Lahore: |
|
|
|
| December
3, 1998 |
|
FAROOQ ZAMAN |
|
|
|
CHIEF EXECUTIVE |
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS OF GCL ELECTRIC COMPANY LIMITED |
|
|
| We
have audited the annexed Balance Sheet of GCL ELECTRIC COMPANY LIMITED as at
30 June, 1998 together with |
|
| the
notes forming part thereof, 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 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 has been drawn up in the
conformity with the Companies |
|
| Ordinance,
1984, and is in agreement with the books of account, and is 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, |
|
| together
with the notes forming part thereof, gives the information required by the
Companies Ordinance, 1984, in the |
|
| manner
so required and gives a true and fair view of the state of the Company's
affairs as at 30 June, 1998; and |
|
|
|
|
| (d)
in our opinion, no Zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
|
|
|
|
| The
accounts of GCL Electric Company Limited for the year ended 30 June, 1997
were audited by Amin & Co., Chartered |
|
| Accountants
who had expressed an unqualified opinion on those accounts. |
|
|
|
|
| Lahore: |
|
|
|
|
HAMEED CHAUDHRI & CO., |
|
| December
3, 1998 |
|
|
|
CHARTERED ACCOUNTANTS. |
|
|
|
|
|
|
|
| BALANCE
SHEET AS AT 30 JUNE, 1998 |
|
|
|
|
|
|
Note |
1998 |
1997 |
|
|
|
(Rupees in thousand) |
|
| SHARE
CAPITAL |
|
|
|
| Authorised |
|
|
|
|
| 50,000,000
ordinary shares of Rs. 10 each |
|
500,000 |
500,000 |
|
|
|
|
========== |
========== |
|
| Issued,
subscribed and paid-up |
|
|
| 15,000,000
(1997: 257,000) |
|
|
| ordinary
shares of Rs. 10 each fully paid in cash |
3 |
150,000 |
2,570 |
|
|
|
|
|
| LIABILITIES
AGAINST ASSETS |
|
|
|
| SUBJECT
TO FINANCE LEASE |
|
4 |
227,112 |
224,970 |
|
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
|
| Current
portion of liabilities against |
|
|
| assets
subject to finance lease |
|
4 |
47,021 |
8,178 |
|
|
|
|
|
| Due
to Holding Company |
|
|
19,143 |
139,048 |
|
|
|
|
|
| Short
term finances |
|
5 |
63,307 |
24,982 |
|
|
|
|
|
| Accrued
expenses |
|
6 |
14,610 |
2,209 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
144,081 |
174,417 |
|
| CONTINGENCIES
AND COMMITMENTS |
|
7 |
---------- |
---------- |
|
|
|
|
521,193 |
401,957 |
|
|
|
|
|
========== |
========== |
|
|
| TANGIBLE
FIXED ASSETS |
|
|
|
| Capital
work-in-progress |
|
8 |
508,673 |
384,507 |
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
|
| Tax
deducted at source |
|
|
5,889 |
5,885 |
|
| Accrued
interest |
|
|
0 |
22 |
|
| Cash
and bank balances |
|
9 |
6,631 |
11,543 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
12,520 |
17,450 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
521,193 |
401,957 |
|
|
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
M. NIAZ PERACHA |
|
FAROOQ ZAMAN |
|
|
DIRECTOR |
|
CHIEF EXECUTIVE |
|
|
|
|
|
|
|
| NOTES
TO THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE, 1998 |
|
|
| 1.
STATUS AND OPERATIONS |
|
|
| The
Company was incorporated on 17 January, 1995 as a Private Company and was
converted into a Public Company |
|
| on
25 March, 1997. The sole object of the Company is to set-up and operate power
generation project. The Company |
|
| is
a Subsidiary of Gharibwal Cement Limited. The Company is in the process of
setting-up a power generation project. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
|
| 2.1
Accounting convention |
|
| These
accounts have been prepared under the historical cost convention. |
|
|
| 2.2
Tangible fixed assets and depreciation |
|
| Capital
work-in-progress is stated at cost. Cost in relation to certain fixed assets
signifies historical cost and cost |
|
| of
borrowing during construction period. Depreciation has not been provided for
as the Company has not yet |
|
| commenced
its operations. |
|
|
| 2.3
Assets subject to finance lease |
|
| These
are stated at the lower of present value of minimum lease payments under the
lease agreements and the fair |
|
| value
of the assets acquired on lease. The related obligations of lease are
accounted for as liabilities. |
|
|
| 2.4
Unallocated capital expenditure |
|
| These
will be capitalised on completion of the project. |
|
|
| 2.5
Mark-up, interest and other charges |
|
| Mark-up,
interest and other charges on liabilities are capitalised upto the date of
commissioning of respective plant |
|
| and
machinery, acquired out of the proceeds of such liabilities. |
|
|
| 3.
ISSUED, SUBSCRIBED AND PAID UP CAPITAL |
|
| Gharibwal
Cement Limited (the Holding Company) held 14,998,000 (1997: 255,000) shares
i.e. 99.99% (1997: |
|
| 99.22%)
of the Company's Issued, Subscribed and Paid-up Capital as at 30 June, 1998. |
|
|
| 4.
LIABILITIES AGAINST ASSETS SUBJECT OT FINANCE LEASE |
|
|
|
National |
Grays |
Pakistan |
|
|
|
Development |
Leasing |
Industrial |
|
|
|
Leasing |
Limited |
Leasing |
|
|
|
Corporation |
|
Corporation |
|
|
|
Limited |
|
Limited |
1998 |
1997 |
|
|
|
|
|
|
|
|
|
(Rupees in thousand) |
|
|
| Balance
amount of future lease |
|
| payments
and the periods in |
|
| which
these will become due: |
|
|
| FINANCIAL
YEAR |
|
| 1997 - 98 |
|
0 |
0 |
0 |
0 |
22,137 |
|
| 1998 - 99 |
|
58,370 |
2,349 |
53,942 |
114,661 |
96,201 |
|
| 1999 - 2000 |
|
40,247 |
2,334 |
53,942 |
96,523 |
96,523 |
|
| 2000 - 2001 |
|
40,247 |
0 |
53,942 |
94,189 |
94,189 |
|
| 2001 - 2002 |
|
40,247 |
0 |
53,942 |
94,189 |
94,189 |
|
| 2002- 2003 |
|
47,085 |
0 |
56,942 |
104,027 |
104,027 |
|
|
|
------------------------------------------------------------- |
|
|
|
226,196 |
4,683 |
272,710 |
503,589 |
507,266 |
|
|
|
|
|
| Less:
Security deposits adjustable |
|
|
| on
expiry of lease terms |
26,962 |
488 |
28,726 |
56,176 |
56,175 |
|
|
|
------------------------------------------------------------- |
|
|
|
199,234 |
4,195 |
243,984 |
447,413 |
451,091 |
|
|
|
|
|
| Less:
Financial charges |
|
|
|
|
|
|
| Allocated
to future periods |
68,101 |
802 |
93,187 |
162,090 |
217,943 |
|
| Accrued
during the year |
11,059 |
131 |
0 |
11,190 |
0 |
|
|
|
------------------------------------------------------------- |
|
|
|
79,160 |
933 |
93,187 |
173,280 |
217,943 |
|
|
|
------------------------------------------------------------- |
|
| Principal
liability |
|
120,074 |
3,262 |
150,797 |
274,133 |
233,148 |
|
|
|
|
|
| Less:
Current portion grouped |
|
|
| under
current liabilities |
|
|
|
|
|
|
| -
Installments due within following |
|
|
| twelve
months |
|
16,623 |
1,418 |
21,710 |
39,751 |
8,178 |
|
| - Installments overdue |
|
7,065 |
205 |
0 |
7,270 |
0 |
|
|
|
------------------------------------------------------------- |
|
|
23,688 |
1,623 |
21,710 |
47,021 |
8,178 |
|
|
------------------------------------------------------------- |
|
|
96,386 |
1,639 |
129,087 |
227,112 |
224,970 |
|
|
|
|
National |
|
|
|
Pakistan |
|
|
Development |
|
Grays |
|
Industrial |
|
|
Leasing |
|
Leasing |
|
Leasing |
|
|
Corporation |
|
Limited |
|
Corporation |
|
|
Limited |
|
|
|
Limited |
|
|
| No.
of lease facilities |
2 |
|
1 |
|
1 |
|
|
| No.
of installments |
|
20 quarterly |
|
36 monthly |
|
18 quarterly |
|
|
|
installments |
|
installments |
|
installments |
|
|
| Last
installment due |
|
December, 2002 |
|
May, 2000 |
|
December, 2002 |
|
| Discount
factor applied P.A. |
22% & 22.5% |
|
22.44% |
|
22.73% |
|
| Residual
value at the end of |
|
| lease term |
|
|
Rs. 26.962 |
|
Rs. 0.488 |
|
Rs. 28.726 |
|
|
|
million |
|
million |
|
million |
|
|
| Security |
|
- Corporate |
|
- Cross |
|
- Cross |
|
|
|
guarantee by |
|
corporate |
|
corporate |
|
|
|
Holding |
|
guarantee |
|
guarantee |
|
|
|
Company |
|
by Holding |
|
by Holding |
|
|
|
|
|
Company |
|
Company |
|
|
|
|
|
|
|
|
- First pari |
|
- Personal |
|
- Pledge of |
|
|
|
passu charge |
|
guarantees |
|
Company's |
|
|
|
over the entire |
of directors |
|
shares worth |
|
|
|
current and |
|
|
Rs. 75 million |
|
|
|
fixed assets of |
|
|
|
the Company |
|
|
|
|
|
|
|
|
- First registered |
|
|
|
|
|
|
|
charge on |
|
|
|
|
|
|
|
- Company's |
|
|
|
|
|
|
|
fixed assets |
|
|
|
|
|
|
|
ranking pari |
|
|
|
|
|
|
|
passu with NDLC |
|
|
|
|
|
|
|
|
|
- Demand |
|
|
|
|
|
|
promissory note |
|
| Fine |
|
|
2% per month on |
|
|
Re. 1.00 per |
|
|
|
overdue amounts |
|
|
Rs. 1,000 per day |
|
|
|
|
|
|
on overdue amounts |
|
|
|
| 5.
SHORT TERM FINANCES - Secured |
|
|
|
|
|
Note |
1998 |
1997 |
|
|
|
|
|
(Rupees in thousand) |
|
|
|
|
| Islamic
Investment Bank Ltd. (I.I.B.L.) |
5.1 |
32,482 |
24,982 |
|
|
|
|
|
| Gharibwal
Cement Employees' Gratuity |
|
|
| Fund Trust |
|
5.2 |
30,825 |
0 |
|
|
|
|
---------- |
---------- |
|
|
|
|
63,307 |
24,982 |
|
|
|
|
========== |
========== |
|
|
| 5.1
Short term finance facilities available from I.I.B.L. under mark-up
arrangements aggregated Rs. 36.0 million as at |
|
| 30
June, 1998. These facilities are available on roll-over basis and are secured
against I.I.B.L.'s lien on cash |
|
| margin
deposit accounts (note 9.1), counter guarantee by the Company, corporate
guarantee by the Holding |
|
| Company,
registered charge on Holding Company's current assets to the tune of Rs. 26.0
million and personal |
|
| guarantees
of some of the Company's directors. Mark-up rates on these facilities ranged
from 20.5% to 23% per |
|
| annum. |
|
|
| 5.2
Short term finance facility available from Gharibwal Cement Employees'
Gratuity Fund Trust (the Trust) under |
|
| mark-up
arrangements amounts to Rs. 40.0 million. The facility carries mark-up at the
rate of 20% per annum. The |
|
| principal
amount of this facility alongwith mark-up is repayable to the Trust uptill 30
June, 1999 in equal |
|
| monthly
installments commencing September, 1998. The facility is secured against
Company's fixed assets to the |
|
| tune
of Rs. 40.0 million, demand promissory note and personal guarantees of some
of the Company's directors. In |
|
| case
of any default, the facility will attract liquidated damages at the rate of
20% per annum. |
|
|
| 6.
ACCRUED EXPENSES |
|
|
|
|
|
|
1998 |
1997 |
|
|
|
|
(Rupees in thousand) |
|
|
|
|
| Finance
charges accrued on lease finances |
|
11,190 |
0 |
|
| Other
charges accrued on lease finances |
|
954 |
0 |
|
| Mark-up
accrued on short term finances |
|
2,451 |
2,209 |
|
| Others |
|
|
|
15 |
0 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
14,610 |
2,209 |
|
|
|
|
|
========== |
========== |
|
|
| 7.
CONTINGENCIES AND COMMITMENTS |
|
|
| 7.1
Counter guarantees given by the Holding Company to Financial Institutions on
behalf of the Company |
|
| outstanding
as at 30 June, 1998 were for Rs. 499.328 million (1997 Rs. 487.016 million). |
|
|
| 7.2
Commitments for capital expenditure outstanding as at 30 June, 1998 were for
Rs. 10.0 million. |
|
|
|
| 8.
CAPITAL WORK - IN - PROGRESS |
|
|
|
|
|
|
|
Note |
1998 |
1997 |
|
|
|
|
|
(Rupees in thousand) |
|
|
|
|
| Buildings |
|
|
|
| -
Cost and expenses |
|
|
70,790 |
45,891 |
|
|
|
|
| Plant
and machinery |
|
|
| - Owned |
|
|
66,613 |
31,170 |
|
| - Leased |
|
|
275,320 |
277,239 |
|
|
|
|
---------- |
---------- |
|
|
|
|
341,933 |
308,409 |
|
| Unallocated
capital expenditure |
|
8.1 |
95,950 |
30,207 |
|
|
|
|
---------- |
---------- |
|
|
|
|
508,673 |
384,507 |
|
|
|
|
|
========== |
========== |
|
|
| 8.1
UNALLOCATED CAPITAL EXPENDITURE |
|
| Preliminary
expenses |
|
793 |
793 |
|
| Lease
syndication fee |
|
100 |
100 |
|
| Advertisement |
|
28 |
28 |
|
| Insurance |
|
|
2,189 |
1,649 |
|
| Printing
and stationary |
|
3 |
2 |
|
| Financial
charges |
|
11,569 |
3,714 |
|
| Trust
brokerage |
|
500 |
500 |
|
| Legal
and professional charges |
|
62 |
0 |
|
| Finance
charges on lease finances |
|
80,352 |
23,451 |
|
| Miscellaneous
charges |
|
407 |
0 |
|
|
|
---------- |
---------- |
|
|
|
96,003 |
30,237 |
|
| Less:
Interest income |
|
53 |
30 |
|
|
|
---------- |
---------- |
|
|
|
95,950 |
30,207 |
|
|
|
========== |
========== |
|
|
| 9.
CASH AND BANK BALANCE |
|
|
|
|
|
|
| In hand |
|
1 |
1 |
|
|
|
|
| At
banks on: |
|
|
| Current
accounts |
|
|
130 |
4,535 |
|
| Saving
accounts |
|
|
0 |
507 |
|
| Margin
deposit accounts |
|
9.1 |
6,500 |
6,500 |
|
|
|
|
---------- |
---------- |
|
|
6,630 |
11,542 |
|
|
---------- |
---------- |
|
|
6,631 |
11,543 |
|
|
|
|
|
========== |
========== |
|
|
| 9.1
These are under I.I.B.L.'s lien as stated in note 5.1 |
|
|
| 10. GENERAL |
|
|
| Figures
in the accounts are rounded-off to the nearest thousand rupees; |
|
|
| Figures
of the previous year are re-arranged wherever necessary for the purpose of
comparison. |
|
|
| Profit
and Loss Account has not been prepared as the Company has not yet commenced
its operations. |
|
|
|
M. NIAZ PERACHA |
|
FAROOQ ZAMAN |
|
|
DIRECTOR |
|
CHIEF EXECUTIVE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
