| Husein Sugar Mills Limited |
|
|
|
|
|
|
|
| Annual
Report 1998 |
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| CONTENTS |
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|
| COMPANY'S
INFORMATION |
|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
| DIRECTORS'
REPORT |
|
| PATTERN
OF SHARE HOLDINGS |
|
|
| CONDENSED
FINANCIAL DATA |
|
|
| SELECTED
FINANCIAL DATA |
|
|
| AUDITORS'
REPORT |
|
|
| BALANCE SHEET |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
|
| STATEMENT
OF SOURCES AND APPLICATION OF FUNDS |
|
| NOTES
TO THE ACCOUNTS |
|
|
| STATEMENT
PURSUANT TO SECTION 237 |
|
|
| TARIQ
INDUSTRIES LIMITED |
|
|
| DIRECTORS'
REPORT |
|
| AUDITORS'
REPORT |
|
| BALANCE SHEET |
|
| PROFIT
AND LOSS ACCOUNT |
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
|
| NOTES
TO THE ACCOUNTS |
|
|
|
| COMPANY'S
INFORMATION |
|
|
| BOARD
OF DIRECTORS |
Mian Muhammad Aslam |
|
(Chairman & Chief
Executive) |
|
|
|
Mian Shamim Anwar |
|
(Director Incharge) |
|
|
|
Mian Sajjad Aslam |
|
|
|
Mian Shahzad Aslam |
|
|
|
Mian Farrukh Naseem |
|
|
|
Mian Muhammad Ali Tariq |
|
(Executive Director) |
|
|
|
Mian Aamir Naseem |
|
|
|
Mr. G.A. Zafar |
|
(Nominee N.I.T.) |
|
|
|
| RESIDENT
DIRECTOR |
Mr. Muhammad Saeed |
|
|
|
| GENERAL
MANAGER FINANCE |
Muhammad Iqbal Malik |
|
|
|
| COMPANY
SECRETARY |
Syed Shabbir Haider |
|
|
|
| BANKERS |
|
Emirates Bank
International |
|
|
Habib Bank Limited |
|
|
United Bank Limited |
|
|
Muslim Commercial Bank
Limited |
|
|
National Bank of Pakistan |
|
|
Pakistan Industrial
Credit and Investment Corporation Limited |
|
|
National Development
Finance Corporation. |
|
|
Metropolitan Bank Limited |
|
|
Cres Bank Limited |
|
|
ABN-AMRO Bank |
|
|
Trust Investment Bank
Limited |
|
|
Prudential Commercial
Bank Limited |
|
|
Doha Bank Limited |
|
|
The Bank of Punjab |
|
|
Allied Bank of Pakistan
Limited |
|
|
Bank Alfalah Limited |
|
|
| AUDITORS |
|
Riaz Ahmad & Co. |
|
|
|
Chattered Accountants |
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|
|
| MILLS |
|
Jaranwala, District
Faisalabad. |
|
|
|
| REGISTERED/HEAD
OFFICE |
2nd Floor, Gulberg
Centre, |
|
|
Main Boulevard, Gulberg,
Lahore. |
|
|
Phone: 5762089 - 5762090 |
|
|
Fax: (042) 5712680 |
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|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
|
| Notice
is hereby given that the 32nd Annual General Meeting of the Shareholders of
HUSEIN SUGAR |
|
| MILLS
LIMITED will be held at 11.30 A.M. on Wednesday the 31st March, 1999 at its
Registered/Head |
|
| Office
- 2nd Floor, Gulberg Centre, Main Boulevard, Gulberg, Lahore to transact the
following business: |
|
|
| 1.
To confirm the Minutes of the 31st Annual General Meeting held on 31st March,
1998. |
|
|
| 2.
To receive and adopt Directors' and Auditors' Report and Accounts for the
year ended 30th |
|
| September,
1998. |
|
|
| 3.
To elect 8 directors of the company for a period of three years, commencing
from 31st March, |
|
| 1999
under section 178(1) of the Companies Ordinance, 1984. |
|
|
| The
following directors, retiring on 31st March, 1999, being eligible, offer
themselves for re- |
|
| election: |
|
|
| 1.
Mian Muhammad Aslam |
|
5. Mian Shahzad Aslam |
|
| 2.
Mian Shamim Anwar |
|
6. Mian Farrukh Naseem |
|
| 3.
Mian Sajjad Aslam |
|
7. Mian Aamir Naseem |
|
| 4.
Mian Muhammad Ali Tariq |
|
8. Mr. G.A. Zafar
(Nominee NIT) |
|
|
| 4.
To appoint Auditors for the year 1998-99 and fix their remuneration. The
retiring Auditors M/s. |
|
| Riaz
Ahmad & Company being eligible, offer themselves for reappointment. |
|
|
| 5.
To transact any other business with the permission of the Chairman. |
|
|
|
BY ORDER OF THE BOARD |
|
|
| LAHORE: |
|
(SYED SHABBIR HAIDER) |
|
| Dated:
9th March, 1999 |
|
COMPANY SECRETARY |
|
|
| NOTES: |
|
|
| 1.
The Share Transfer Books of the Company shall remain closed from 31st March
to 14th April, |
|
| 1999
(both days inclusive). |
|
|
| 2.
A member entitled to attend and vote at this meeting may appoint another
member as his/her |
|
| proxy
to attend and vote instead of him/her. Proxies in order to be effective must
be received by |
|
| the
Company not later than 48 hours before the meeting. |
|
|
| 3.
Shareholders are requested to immediately notify change in address, if any. |
|
|
|
| DIRECTORS'
REPORT |
|
|
| Your
Directors have pleasure in presenting the 32nd Annual Report along with the
Audited Accounts of |
|
| the
Company for the Financial Year ended on 30th September, 1998. |
|
|
| CANE
CRUSHING AND PRODUCTION |
|
|
| Our
Crushing Season ended on April 29, 1998 after 164 days of crushing whereas
last year it had ended |
|
| on
April 27, 1997 after 171 days of crushing. Your company managed to crush a
record 740,854 M. Tons |
|
| of
sugarcane and produced a record 57,861 M.Tons of sugar at an average recovery
of 7.81%, whereas |
|
| last
year only 485,715 M.Tons of sugarcane was crushed and only 37,319 M. Tons of
sugar were |
|
| produced
at an average recovery of 7.68%. |
|
|
| FINANCIAL
RESULTS |
|
|
| The
financial results of the company are extremely disappointing due to the
following adverse factors: |
|
|
| (1)
High Domestic Stocks: The record national sugar production of over 3.5
Million Tons and the |
|
| high
national carry over stocks resulted in high domestic sugar stocks. |
|
|
| (2)
Depressed Sugar Prices: The sugar sales prices remained depressed due to high
sugar |
|
| stocks. |
|
|
| High
Sugarcane Prices: The Government increased the sugarcane support price from
Rs.24.00 |
|
| per
40 Kg. To Rs.35.00 per 40 Kg. This increase of 45.83% had a major impact on
the cost of |
|
| production
as sugarcane constitutes approximately 60% of the cost of production. |
|
|
| (4)
Delay in Export Permission: The only way of reducing domestic sugar stocks
was by exporting |
|
| sugar.
This permission was received only after half the crushing season was over.
Moreover, by |
|
| the
time export permission was received world sugar prices had crashed. Export
was not possible |
|
| without
financial incentives. These were also delayed due to unavailability of funds. |
|
|
| (5)
Logistic Problems: For Sugar Mills in Punjab, the only viable export market
was India. |
|
| However,
export to India was viable only through Wagha. Due to logistic constraints
only a limited |
|
| number
of wagons are allowed to cross the Border by train. No trade by road is
allowed. Your |
|
| company
could export only 692 M. Tons of sugar due to these logistic problems. |
|
|
| The
details of the financial results for the fiscal year 1997-98 are appended
below:- |
|
|
|
(RUPEES IN THOUSAND) |
|
|
1998 |
1997 |
|
| Net
Profit/(Loss) for the year after provision for taxation |
(28,362) |
13.02 |
|
| Unappropriated
Profit of last year's Account |
|
62 |
44 |
|
|
---------- |
---------- |
|
| Net
Profit/(Loss) available for appropriation |
|
(28,300) |
13,062 |
|
|
| Your
Directors propose appropriations as under: |
|
|
| Transfer
to General Reserve. |
|
- |
3,000 |
|
| Bonus Shares |
|
Nil |
10,000 |
|
|
---------- |
---------- |
|
| Balance
Profit/(Loss) carried forward to next year |
|
(28,300) |
62 |
|
|
| FUTURE
PROSPECTS |
|
|
|
| The
Crushing Season started on November 16, 1998. Till 2® March 1999, your
company had crushed |
|
| 486,439
M. Tons of sugarcane and produced 31,732 M. Tons of sugar at an average
recovery of 6.67%. |
|
|
| The
prospects for the year are not very encouraging. On the negative side, the
situation is as follows: |
|
|
| 1.
Sucrose Levels-Sucrose Levels in cane have fallen to historic lows due to
red-rot disease and |
|
| general
deterioration in the wide spread but un-approved CO-1148 variety of
sugarcane. This |
|
| problem
is especially critical in Central Punjab where your Mills is located. |
|
|
| 2.
World Market Situation-The World Sugar Market has been badly hit by the
massive devaluation |
|
| of
the Brazalian currency. Sugar prices have touched an eleven years low. |
|
|
| 3.
Increase in Indian Import Duty -The increase in Indian import duty on sugar
has further |
|
| reduced
the viability of sugar exports from Pakistan. |
|
|
| 4.
Rupee Appreciation-The recent rupee appreciation has also reduced the
competitiveness of |
|
| Pakistani
export. This can only be overcome by an increase in the duty drawback
allowed. |
|
|
| 5.
Increase in Sales Tax-The increase in Sales Tax by 2.5% has also hurl the
industry. The only |
|
| positive
factor is that we expect Insha Allah to get better prices for main product,
i.e. sugar in the |
|
| domestic
market in comparison to the previous year. |
|
|
| Shareholding: |
|
| Pattern
of holding of shares by Shareholders of the company as at 30th September,
1998, as required |
|
| under
Section 236(2)(d) of the Companies Ordinance, 1984, is enclosed. |
|
|
| Auditors: |
|
|
| The
retiring auditors M/s. Riaz Ahmad & Company, Chattered Accountants, being
eligible offer |
|
| themselves
for re-appointment for the ensuing year. |
|
|
| Appreciation: |
|
|
| The
relationship among the staff, workers and management with the blessing of
Almighty Allah remains |
|
| highly
satisfactory. It gives me a great pleasure to thank them all for significant
contribution they have |
|
| made
during the year under review and I hope the same spirit will continue for all
time to come. |
|
|
|
On behalf of the Board |
|
|
|
(MIAN MUHAMMAD ASLAM) |
|
| Dated:
3rd March, 1999 |
|
CHIEF EXECUTIVE |
|
|
|
| FORM '34' |
|
| THE
COMPANIES ORDINANCE 1984 (SECTION 2:36) |
|
| PATTERN
OF SHAREHOLDINGS AS AT SEPTEMBER 30, 1998 |
|
|
|
|
| No. of |
SHAREHOLDING |
Total |
|
| Shareholders |
From |
To |
Shares held |
|
| 174 |
1 |
100 |
4427 |
|
| 137 |
101 |
500 |
42233 |
|
| 71 |
501 |
1000 |
48856 |
|
| 93 |
1001 |
5000 |
206552 |
|
| 10 |
5001 |
10000 |
68548 |
|
| 9 |
10001 |
15000 |
114227 |
|
| 2 |
15001 |
20000 |
31555 |
|
| 2 |
25001 |
30000 |
54511 |
|
| 1 |
40001 |
45000 |
43732 |
|
| 1 |
45001 |
50000 |
45920 |
|
| 6 |
50001 |
55000 |
323370 |
|
| 2 |
55001 |
60000 |
118660 |
|
| 1 |
60001 |
65000 |
62330 |
|
| 1 |
75001 |
80000 |
79197 |
|
| 1 |
80001 |
85000 |
81947 |
|
| 2 |
100001 |
105000 |
200166 |
|
| 2 |
115001 |
120000 |
237342 |
|
| 2 |
125001 |
130000 |
255245 |
|
| 1 |
170001 |
175000 |
172943 |
|
| 1 |
190001 |
195000 |
192496 |
|
| 1 |
230001 |
235000 |
230557 |
|
| 1 |
235001 |
240000 |
238805 |
|
| 1 |
255001 |
260000 |
259219 |
|
| 2 |
305001 |
310000 |
618791 |
|
| 1 |
380001 |
385000 |
381146 |
|
| 1 |
505001 |
510000 |
505241 |
|
| 1 |
555001 |
560000 |
559161 |
|
| 1 |
575001 |
580000 |
578888 |
|
| 1 |
585001 |
590000 |
586643 |
|
| 1 |
620001 |
625000 |
620591 |
|
| 1 |
635001 |
640000 |
638222 |
|
| 1 |
720001 |
725000 |
723330 |
|
| 1 |
740001 |
745000 |
742493 |
|
| 1 |
1930001 |
1935000 |
1932656 |
|
| - |
1935001 |
11000000 |
- |
|
| ---------- |
---------- |
---------- |
---------- |
|
| 534 |
|
11000000 |
|
| ========== |
========== |
========== |
========== |
|
| Note:
The slabs not applicable have not been shown. |
|
|
| Categories of |
|
Number of |
|
|
| Shareholders |
|
Shareholders |
Shares held |
Percentage |
|
|
|
|
|
| Individuals |
|
514 |
7080445 |
64.37% |
|
| Insurance
Companies |
|
4 |
828901 |
7.54% |
|
| Investment
Companies |
|
4 |
871570 |
7.92% |
|
| Financial
Institutions |
|
3 |
2025529 |
18.41% |
|
| OTHERS |
|
| Corporate
Law Authority |
|
1 |
1 |
- |
|
| Pakistan
Cloth Merchants Association |
1 |
1304 |
0.01% |
|
| Administrator
Abandoned Properties |
1 |
766 |
0.01% |
|
| Joint
Stock Companies |
|
4 |
18178 |
0.17% |
|
| Modaraba
Companies |
|
2 |
173306 |
1.58% |
|
|
----------- |
----------- |
----------- |
|
| Total |
|
534 |
11000000 |
100.00% |
|
|
=========== |
=========== |
=========== |
|
|
| CONDENSED
FINANCIAL DATA |
|
|
|
(RUPEES IN MILLIONS) |
|
|
| INCOME |
|
1998 |
1997 |
1996 |
1995 |
1994 |
|
|
|
|
| Sale
& Revenue |
719.84 |
757.75 |
747.32 |
636.20 |
56,387 |
|
| Expenses |
|
|
|
| Cost of Sales |
|
651.85 |
673.17 |
611.27 |
531.94 |
495.42 |
|
| Selling
& Admin. |
42.25 |
35.62 |
32.54 |
26.86 |
24.22 |
|
| Interest |
|
52.38 |
32.97 |
27.56 |
27.44 |
34.56 |
|
| Others |
|
9.22 |
0.83 |
3.85 |
2.50 |
0.49 |
|
| Taxes
on Income |
(7.50) |
2.14 |
13.60 |
14.99 |
0.18 |
|
| INCOME (LOSS) |
|
(28.36) |
13.02 |
58.49 |
33.47 |
9.36 |
|
|
| FINANCIAL
POSITION |
|
| Assets |
|
| Current |
|
333.38 |
111.46 |
84.93 |
58.88 |
80.47 |
|
| Security
Deposit |
8.06 |
6.85 |
5.23 |
4.57 |
4.41 |
|
| Investments |
|
1.65 |
10.86 |
10.86 |
8.36 |
10.86 |
|
| Fixed |
|
269.40 |
260.62 |
257.23 |
258.44 |
262.70 |
|
| Total Assets |
|
612.49 |
389.79 |
358.25 |
330.25 |
358.44 |
|
|
|
|
| LIABILITIES
AND EQUITY |
|
|
| Shod
term borrowings |
211.17 |
Nil |
Nil |
Nil |
52.82 |
|
| Other
Current liabilities |
132.58 |
78.85 |
69.43 |
64.57 |
48.48 |
|
| Long
term debts |
36.79 |
39.84 |
29.53 |
64.88 |
91.94 |
|
| Deferred
taxation/liabilities |
12.00 |
22.80 |
' 24.00 |
24.00 |
12.17 |
|
| Equity |
|
219.95 |
248.30 |
235.29 |
176.80 |
153.03 |
|
| Total
Liabilities and Equity |
612.49 |
389.79 |
358.25 |
330.25 |
358.44 |
|
|
|
| SELECTED
FINANCIAL DATA |
|
|
(RUPEES IN THOUSAND) |
|
|
(Except per share data) |
|
|
|
1998 |
1997 |
1996 |
1995 |
1994 |
|
|
| Net
Sales Revenue |
719,837 |
757,756 |
747,318 |
636,200 |
563,868 |
|
| Net
Income/(Loss) |
(35,866) |
15,159 |
72.09 |
47,457 |
9,186 |
|
| Earning/(Loss)
per Share |
(3.26) |
1.52 |
8.29 |
5.45 |
1.19 |
|
|
| Dividends
declared per share: |
|
| Cash |
|
Nil |
Nil |
Nil |
10% |
Nil |
|
| Bonus |
|
Nil |
10% |
14.93% |
Nil |
12.50% |
|
| Total
Assets 612,487 |
389,791 |
358,249 |
330,253 |
358.44 |
|
| Long
Term Debts |
36,791 |
39,836 |
29.53 |
64,886 |
91,943 |
|
| Return
on shareholders equity |
12.90 |
5.24% |
24.85% |
18.31% |
6.00% |
|
| Book
Value per share |
19.99 |
24.83 |
27.04 |
20.32 |
19.79 |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of HUSEIN SUGAR MILLS LIMITED as at
30th |
|
| September
1998 and the related profit and loss account and statement of sources and
application |
|
| of
funds, 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 statement of sources
and |
|
| application
of funds, 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 loss and the changes in sources and application of funds for the year
then |
|
| ended; and |
|
|
| (d)
in our opinion, no Zakat was deductible at source under the Zakat and Usher
Ordinance, |
|
| 1980. |
|
|
|
RIAZ AHMAD AND COMPANY |
|
| FAISALABAD-
2nd March, 1999 |
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET AS AT 30 SEPTEMBER 1998 |
|
|
|
(RUPEES IN THOUSAND) |
|
|
NOTE |
1998 |
1997 |
|
| SHARE
CAPITAL AND RESERVES |
|
|
| Authorized
share capital |
|
| 20,000,000
Ordinary shares |
|
| of
Rupees 10 each |
|
200,000 |
200,000 |
|
|
============ |
============ |
|
| Issued,
subscribed and paid up share capital |
3 |
110,000 |
100,000 |
|
| Reserves |
|
4 |
138,244 |
148,244 |
|
| Unappropriated
Profit/(Loss) |
|
|
(28,300) |
62 |
|
|
|
219,944 |
248,306 |
|
|
|
|
| REDEEMABLE
CAPITAL |
|
5 |
4,034 |
8,067 |
|
|
|
| LIABILITIES
AGAINST ASSETS |
|
| SUBJECT
TO FINANCE LEASE |
|
6 |
32,757 |
31,769 |
|
|
|
|
|
|
| DEFERRED
TAXATION |
|
|
12,000 |
22,800 |
|
| CURRENT
LIABILITIES |
|
|
|
|
| Current
portion of long term liabilities |
7 |
28,444 |
26,890 |
|
| Shod
Term Finances |
|
8 |
211,171 |
- |
|
| Creditors,
accrued and other liabilities |
9 |
80,789 |
30,718 |
|
| Workers'
participation fund |
|
10 |
155 |
1,340 |
|
| Provision
for taxation |
|
|
22560 |
19,264 |
|
| Unclaimed
dividend |
|
|
633 |
637 |
|
|
----------- |
----------- |
|
|
343,752 |
78,849 |
|
| CONTINGENCIES AND
COMMITMENTS |
11 |
|
|
----------- |
----------- |
|
|
612,487 |
389,791 |
|
|
=========== |
=========== |
|
| TANGIBLE
FIXED ASSETS |
|
| Operating
fixed assets |
|
12 |
173,616 |
170,210 |
|
| Assets
subject to finance lease |
13 |
78,309 |
77,376 |
|
| Capital
work-in-progress |
|
14 |
17,477 |
13,036 |
|
|
|
----------- |
----------- |
|
|
|
269,402 |
260,622 |
|
|
|
|
|
| EQUITY
INVESTMENTS |
|
15 |
1,646 |
10,861 |
|
| LONG
TERM DEPOSITS |
|
16 |
8,056 |
6,846 |
|
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
|
| Stores,
spare parts and loose tools |
17 |
38,804 |
43,142 |
|
| Stock-in-trade |
|
18 |
230,278 |
7,076 |
|
| Trade debts |
|
19 |
16,278 |
2,057 |
|
| Advances,
prepayments and other receivables |
20 |
41,865 |
33,525 |
|
| Cash
and bank balances |
|
21 |
6,158 |
25,662 |
|
|
|
----------- |
----------- |
|
|
|
333,383 |
111,462 |
|
|
----------- |
----------- |
|
|
612,487 |
389,791 |
|
|
|
=========== |
=========== |
|
| The
annexed notes from an integral part of these accounts. |
|
|
| (MIAN
MUHAMMAD ASLAM) |
|
(MIAN AAMIR NASEEM) |
|
| CHIEF
EXECUTIVE |
|
DIRECTOR |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED 30 SEPTEMBER 1998 |
|
|
|
|
(RUPEES IN THOUSAND) |
|
