| Kohinoor Genertek Limited |
|
|
|
|
|
|
|
|
| Annual
Report 1998 |
|
|
|
| CONTENTS |
|
|
| Company
Information |
|
| Notice
of Annual General Meeting |
|
| Directors'
Report to the Shareholders |
|
| Auditors'
Report to the Members |
|
| Balance
Sheet |
|
| Profit
and Loss Account |
|
| Cash
Flow Statement |
|
| Notes
to the Accounts |
|
| Pattern
of Shares Held by the Shareholders |
|
|
|
|
|
| COMPANY
INFORMATION |
|
|
| BOARD
OF DIRECTORS |
|
|
| MR.
TARIQ SAYEED SAIGOL |
|
Chairman |
|
| MR.
SARMAD AMIN |
|
Chief Executive |
|
| MR.
TAUFIQUE SAYEED SAIGOL |
|
| MR.
AAMIR FAYYAZ SHEIKH |
|
| MR.
ASAD FAYYAZ SHEIKH |
|
| MR.
SAYEED TARIQ SAIGOL |
|
| MR.
USMAN SAID |
|
| MR.
WUSOOQ KHALEELI |
|
(Nominee of NIT) |
|
|
| COMPANY
SECRETARY |
|
| MR.
MUHAMMAD ASHRAF |
|
|
| AUDITORS |
|
| M/S.
AVAIS HYDER ZAMAN RIZWANI, |
|
| CHARTERED
ACCOUNTANTS |
|
|
| BANKERS |
|
| PRIME
COMMERCIAL BANK LIMITED |
|
| GULF
COMMERCIAL BANK LIMITED |
|
| UNION
BANK LIMITED |
|
|
| REGISTERED
OFFICE |
|
| 42-LAWRENCE
ROAD, |
|
| LAHORE. |
|
| TEL:
6302261-6302262 |
|
| FAX:
92-42-6368721 |
|
|
| PROJECT |
|
| 8TH
KILOMETER, MANGA RAIWIND ROAD, |
|
| DISTRICT
KASUR. |
|
| TEL:
04951-391941-45 |
|
| FAX:
04951-391948 |
|
|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
|
| Notice
is hereby given that the 6th Annual General Meeting of the members of
Kohinoor Genertek |
|
| Limited
will be held on Thursday, December 24, 1998 at 10.30 a.m. at its Registered
Office, 42- |
|
| Lawrence
Road, Lahore, to transact the following business:- |
|
|
| 1.
To confirm the minutes of the 5th Annual General Meeting held on December 29,
1997. |
|
|
|
|
| 2.
To receive, consider and adopt the audited accounts of the Company for the
year ended |
|
| June
30, 1998 together with the Directors' and Auditors' Reports thereon. |
|
|
|
|
| 3.
To approve the payment of final cash dividend @ Rs. 1.75 per share of Rs.
10/= each |
|
| (17.5%),
for the year ended June 30, 1998, as recommended by the Directors. |
|
|
| 4.
To appoint Auditors and fix their remuneration. M/s. Avais Hyder Zaman
Rizwani, Chartered |
|
| Accountants,
the retiring auditors, being eligible offer themselves for re-appointment. |
|
|
| 5.
To transact any other business with the permission of the Chair. |
|
|
|
|
BY ORDER OF THE BOARD |
|
|
|
|
|
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| Lahore:
December 01, 1998. |
|
(MUHAMMAD ASHRAF) |
|
|
|
|
Company Secretary |
|
|
| NOTES: |
|
|
| 1.
The share transfer books of the Company shall remain closed from December 24,
1998 to |
|
| December
30, 1998 (both days inclusive). Transfers received in order at the Registered
Office |
|
| of
the Company by the close of business on December 23, 1998 will be treated in
time. |
|
|
| 2.
A member entitled to vote at this meeting is entitled to appoint another
member as proxy. |
|
| Proxies
in order to be effective must be received at 42-Lawrence Road, Lahore, the |
|
| Registered
Office of the Company not less than 48 hours before the meeting and must be |
|
| duly
stamped, signed and witnessed. |
|
|
| 3.
Shareholders are requested to promptly notify the Company of any change in
their |
|
| addresses. |
|
|
|
|
| DIRECTORS'
REPORT TO THE SHAREHOLDERS |
|
|
| The
Directors of your company welcome you 'to the 6th Annual General Meeting of
the Company |
|
| and
take pleasure in placing before you their report alongwith audited accounts
and auditors' |
|
| report
thereon for the year ended 30th June 1998. |
|
|
| Operating
Results |
|
| Your
company earned a net profit of Rs. 75.086 million as compared to Rs. 52.099
million last year. |
|
| The
major reason for this improvement is increase in production efficiency,
increase in WAPDA |
|
| tariff
from March 1998 and strict monitoring of production costs. |
|
|
|
|
(Rupees in thousand) |
|
|
|
|
1998 |
1997 |
|
|
|
|
|
|
| Net
profit of the Company for the year ended 30th June
1998 |
75,086 |
52,099 |
|
| Unappropriated
profit brought forward |
32,127 |
28,928 |
|
|
---------- |
---------- |
|
| Profit
available for appropriation |
|
107,213 |
81,027 |
|
| Appropriations: |
|
| Interim
Cash Dividend @ Rs. 3/- per share |
- |
48,900 |
|
| Proposed
Final Cash Dividend @ Rs. 1.75 per share |
28,525 |
- |
|
|
---------- |
---------- |
|
|
|
28,525 |
48,900 |
|
|
|
---------- |
---------- |
|
| Unappropriated
profit carried forward |
78,688 |
32,127 |
|
|
|
========== |
========== |
|
| Earning
per share (Rupees) |
|
4.61 |
3.20 |
|
|
|
|
|
| Future
Prospects |
|
| The
management of the Company is exerting its best efforts for maximum capacity
utilisation and it |
|
| is
hoped that there will be an increase in profitability of the Company during
the current financial |
|
| year. |
|
|
| Millennium
Bug |
|
| The
database that has been used to develop the software systems is compliant with
year 2000. |
|
| However,
there are some modifications required in input forms and output reports to
handle the |
|
| century
in four digits and the Company is taking measures to ensure that all its
computer |
|
| applications,
process controllers and hardware systems are free of the millennium bug and
year |
|
| 2000
compliant well before the turn of the century. |
|
|
| Dividend |
|
| Your
Directors have recommended a final cash dividend @ Rs. 1.75 per share of Rs.
10 each |
|
| (17.50%)
for the year ended 30th June, 1998. |
|
|
| Auditors |
|
| The
auditors M/s. Avais Hyder Zaman Rizwani, Chartered Accountants, retire and
being eligible |
|
| offer
themselves for re-appointment. |
|
|
| Pattern
of Share Holding |
|
| The
pattern of share holding of the Company is included in the Annual Report. |
|
|
| Acknowledgment |
|
| The
Directors place on record their appreciation for the dedicated efforts made
by the Staff and |
|
| Executives
of the Company and hope that the same spirit of devotion and dedication will
continue |
|
| in future. |
|
|
|
|
for and on behalf of the Board |
|
|
|
|
|
|
| Lahore:
November 21, 1998. |
|
(SARMAD AMIN) |
|
|
|
|
Chief Executive |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of Kohinoor Genertek Limited as at 30
June 1998 |
|
| and
the related profit and loss account and cash flow statement, together with
the notes forming |
|
| part
thereof, for the year then ended and we state that we have obtained all the
information and |
|
| explanations
which to the best of our knowledge and belief were necessary for the purposes
of our |
|
| audit
and, after due verification thereof, we report that: |
|
|
| (a)
in our opinion, proper books of account have been kept by the Company as
required by the |
|
| Companies
Ordinance, 1984; |
|
|
| (b)
in our opinion: |
|
|
| (i)
the balance sheet and profit and loss account together with the notes thereon
have |
|
| been
drawn up in conformity with the Companies Ordinance, 1984 and are in |
|
| agreement
with the books of account and are further in accordance with the 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 cash flow statement, together
with the |
|
| notes
forming part thereof, give the information required by the Companies
Ordinance, 1984 |
|
| in
the manner so required and respectively give a true and fair view of the
state of the |
|
| Company's
affairs as at 30 June 1998 and of the profit and cash flow for the year then
ended; and |
|
|
|
|
| (d)
in our opinion no Zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
|
|
|
|
AVAIS HYDER ZAMAN |
|
| Lahore:
November 21, 1998. |
|
Chartered Accountants |
|
|
|
|
| BALANCE
SHEET AS AT 30 JUNE 1998 |
|
|
|
|
|
1998 |
1997 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| SHARE
CAPITAL AND RESERVES |
|
|
|
|
|
|
| Authorised
Capital |
|
|
|
| 30,000,000
ordinary shares of Rs. 10 each |
|
300,000,000 |
300,000,000 |
|
|
|
|
========== |
========== |
|
| Issued,
subscribed and paid-up capital |
3 |
163,000,000 |
163,000,000 |
|
| Capital
reserve |
|
4 |
98,000,000 |
98,000,000 |
|
| Unappropriated
profit |
|
|
78,688,418 |
32,126,785 |
|
|
|
|
---------- |
---------- |
|
|
|
|
339,688,418 |
293,126,785 |
|
|
|
|
|
| LONG
TERM LOANS - Secured |
|
5 |
22,938,635 |
119,671,662 |
|
| DEFERRED
LIABILITY - Gratuity |
|
6 |
756,100 |
369,850 |
|
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
|
|
|
|
| Current
portion of long term loans |
|
5 |
119,671,662 |
- |
|
| Short
term finance - Secured |
|
7 |
77,594,011 |
73,334,914 |
|
| Creditors,
accrued and other liabilities |
8 |
31,663,019 |
91,329,385 |
|
| Proposed
dividend |
|
|
28,525,000 |
- |
|
|
|
|
---------- |
---------- |
|
|
|
|
257,453,692 |
164,664,299 |
|
| CONTINGENCIES
AND COMMITMENTS |
|
9 |
- |
- |
|
|
|
|
---------- |
---------- |
|
|
|
|
620,836,845 |
577,832,596 |
|
|
|
|
========== |
========== |
|
|
| FIXED
CAPITAL EXPENDITURE |
|
|
|
|
|
| Operating
fixed assets |
|
10 |
384,418,162 |
419,387,441 |
|
| Capital
work-in-progress |
|
11 |
1,211,667 |
177,623 |
|
|
|
|
---------- |
---------- |
|
|
|
|
385,629,829 |
419,565,064 |
|
|
|
|
|
|
| LONG
TERM INVESTMENT |
|
12 |
60,900,000 |
60,900,000 |
|
| DEFERRED
COST |
|
13 |
5,784,906 |
7,713,206 |
|
| CURRENT
ASSETS |
|
|
|
| Stores,
spares and loose tools |
|
14 |
37,846,588 |
14,142,849 |
|
| Stock
of oil and lubricants |
|
15 |
12,264,826 |
7,128,856 |
|
| Trade debts |
|
16 |
37,881,924 |
35,109,309 |
|
| Advances,
deposits & prepayments |
|
17 |
76,514,478 |
27,926,308 |
|
| Other
receivables |
|
18 |
1,777,051 |
628,161 |
|
| Cash
and bank balances |
|
19 |
2,237,243 |
4,718,843 |
|
|
|
|
---------- |
---------- |
|
|
|
|
168,522,110 |
89,654,326 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
620,836,845 |
577,832,596 |
|
|
|
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
SARMAD AMIN |
|
WUSOOQ KHALEELI |
|
|
|
Chief Executive |
|
Director |
|
|
|
|
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED 30 JUNE 1998 |
|
|
|
|
|
1998 |
1997 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| Sales |
|
20 |
389,407,553 |
262,841,952 |
|
| Cost
of generation |
|
21 |
282,832,064 |
190,229,091 |
|
|
|
|
---------- |
---------- |
|
| Gross
Profit |
|
|
106,575,489 |
72,612,861 |
|
|
|
|
| Operating
expenses |
|
22 |
5,633,473 |
5,692,810 |
|
|
|
|
---------- |
---------- |
|
| Operating
profit |
|
|
100,942,016 |
66,920,051 |
|
| Other
income |
|
23 |
3,905,245 |
1,703,242 |
|
|
|
|
---------- |
---------- |
|
|
|
|
104,847,261 |
68,623,293 |
|
|
|
|
---------- |
---------- |
|
| Financial
and other charges |
|
24 |
20,118,156 |
11,853,971 |
|
| Amortisation
of deferred cost |
|
|
1,928,300 |
1,928,300 |
|
| Workers'
profit participation fund |
|
|
4,140,040 |
2,742,051 |
|
|
|
|
---------- |
---------- |
|
|
|
|
26,186,496 |
16,524,322 |
|
|
|
|
---------- |
---------- |
|
| Net
profit for the year |
|
|
78,660,765 |
52,098,971 |
|
| Taxation
- Prior year's |
|
25 |
3,574,132 |
- |
|
|
|
|
---------- |
---------- |
|
|
|
|
75,086,633 |
52,098,971 |
|
| Unappropriated
profit brought forward |
|
32,126,785 |
28,927,814 |
|
|
|
|
---------- |
---------- |
|
| Profit
available for appropriation |
|
|
107,213,418 |
81,026,785 |
|
| Appropriation: |
|
|
|
| Interim
dividend @ Rs. Nil (1997: Rs. 3) per share |
- |
48,900,000 |
|
| Final
proposed dividend Rs. 1.75 (1997: Rs. Nil) per share |
28,525,000 |
- |
|
|
|
|
---------- |
---------- |
|
|
|
28,525,000 |
48,900,000 |
|
|
|
---------- |
---------- |
|
| Unappropriated
profit carried forward |
|
78,688,418 |
32,126,785 |
|
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
SARMAD AMIN |
|
WUSOOQ KHALEELI |
|
|
Chief Executive |
|
Director |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED 30 JUNE 1998 |
|
|
|
|
|
1998 |
1997 |
|
|
|
|
Note |
Rupees |
Rupees |
|
|
|
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| Cash
generated from operations |
|
29 |
32,582,657 |
152,251,764 |
|
| Financial
charges paid |
|
|
(18,197,359) |
(10,516,401) |
|
| Gratuity
paid |
|
|
(27,800) |
- |
|
| Tax paid |
|
|
(3,574,132) |
- |
|
|
|
|
---------- |
---------- |
|
| Net
cash inflow from operating activities |
|
10,783,366 |
141,735,363 |
|
|
|
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
| Fixed
capital expenditure |
|
(8,966,606) |
(177,454,772) |
|
| Long
term investment |
|
- |
(60,900,000) |
|
| Proceeds
from sale of fixed assets |
|
- |
630,000 |
|
|
|
---------- |
---------- |
|
| Net
cash (outflow) from investing activities |
|
(8,966,606) |
(237,724,772) |
|
|
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
| Dividend
paid |
|
|
(27,236,995) |
(20,919,825) |
|
| Long
term loans |
|
|
22,938,635 |
119,671,662 |
|
|
|
|
---------- |
---------- |
|
| Net
cash (outflow)/inflow from financing activities |
(4,298,360) |
98,751,837 |
|
|
|
|
| Net
(decrease)/increase in cash & cash equivalents |
(2,481,600) |
2,762,428 |
|
| Cash
and cash equivalents at the beginning of the year |
4,718,843 |
1,956,415 |
|
|
|
|
---------- |
---------- |
|
| Cash
and cash equivalents at the end of the year |
30 |
2,237,243 |
4,718,843 |
|
|
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
SARMAD AMIN |
|
WUSOOQ KHALEELI |
|
|
Chief Executive |
|
Director |
|
|
|
| NOTES
TO THE ACCOUNTS |
|
| FOR
THE YEAR ENDED 30 JUNE 1998 |
|
|
| 1.
THE COMPANY AND ITS OPERATIONS |
|
| Kohinoor
Genertek Limited was incorporated in February, 1993 as a public limited
company in |
|
| Pakistan
under the Companies Ordinance, 1984 with the primary object to undertake
power |
|
| generation,
distribution and supply of electricity. The shares of the company are quoted
on Karachi |
|
| and
Lahore Stock Exchanges. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
| The
principal accounting policies adopted in the preparation of these accounts
are summarized |
|
| below: |
|
|
|
| 2.1
Accounting convention |
|
| These
accounts have been prepared under the historical cost convention without any |
|
| adjustment
for the effects of inflation or current values. |
|
|
|
|
| 2.2
Staff retirement benefits |
|
| The
company has been operating an unfunded gratuity scheme for its employees
whose |
|
| period
of service is one year or more for which provision annually is made to cover
the |
|
| obligation.
However, in the succeeding year the company has disbanded the gratuity scheme |
|
| and
has introduced Provident Fund Scheme with effect from 1 October, 1998. |
|
|
| 2.3
Taxation |
|
| By
virtue of clause 176 of part 1 of Second Schedule to the Income Tax
Ordinance, 1979, |
|
| profits
and gains of the company are exempt from levy of income tax. The company is
also |
|
| exempt
from minimum tax on turnover under clause 20 of the part IV of Second
Schedule to |
|
| the
Income Tax Ordinance, 1979. |
|
|
|
|
| 2.4
Fixed capital expenditure |
|
| All
fixed capital expenditures are stated at cost less accumulated depreciation
except |
|
| freehold
land and capital work in progress which are stated at cost. Depreciation is |
|
| calculated
on reducing balance method at normal rates specified in Note 10. Full year's |
|
| depreciation
is charged on additions whereas no depreciation is charged on deletions
during |
|
| the year. |
|
|
|
|
|
| Maintenance
and normal repairs are charged to income as and when incurred. Major |
|
| renewals
and improvements are capitalized. |
|
|
|
|
| Gains/losses,
if any, on disposal of assets are taken to profit and loss account. |
|
|
| 2.5
Deferred cost |
|
| The
deferred cost is being amortized over a period of five years beginning from
the full year |
|
| of
commercial production i.e. year ended 30 June 1997. |
|
|
| 2.6
Stocks, stores and spares |
|
| These
are valued at moving average cost, except stores in transit which are stated
at actual |
|
| cost. |
|
|
|
|
|
| 2.7
Revenue recognition |
|
| Revenue
from supply of electricity is recognized on issue of bills to customers. |
|
|
| 2.8
Foreign currency translation |
|
| Foreign
currency assets and liabilities, if any are translated at the rate prevailing
on the date |
|
| of
balance sheet. Foreign currency transactions, if any, are converted at the
rate applicable |
|
| on
the date of transaction. Resulting gain or loss, if any, relating to
acquisition of assets is |
|
| capitalised
and for other transactions, charged to revenue. |
|
|
| 2.9
Investments |
|
| These
are stated at cost. |
|
|
|
|
|
|
1998 |
1997 |
|
|
|
|
Rupees |
Rupees |
|
| 3.
ISSUED, SUBSCRIBED & PAID UP CAPITAL |
|
|
|
| 16,300,000
ordinary shares of Rs. 10 each |
|
| fully
paid in cash |
|
|
163,000,000 |
163,000,000 |
|
|
|
|
========== |
========== |
|
| 4.
CAPITAL RESERVES |
|
|
|
| Premium
against issuance of shares |
|
|
98,000,000 |
98,000,000 |
|
|
|
|
|
|
========== |
========== |
|
| 5.
LONG TERM LOANS - Secured |
|
|
| Union
Bank Limited |
|
|
5.1 |
119,671,662 |
119,671,662 |
|
| Prime
Commercial Bank Limited |
|
5.2 |
22,938,635 |
- |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
|
142,610,297 |
119,671,662 |
|
|
|
|
|
|
119,671,662 |
- |
|
|
|
|
---------- |
---------- |
|
|
|
|
22,938,635 |
119,671,662 |
|
|
|
|
========== |
========== |
|
|
|
|
| 5.1
This represents the amount of Usance Letter of Credit (ULC) established by
Union Bank |
|
| Limited
for Japanese Yen 329.674 million (1997: Japanese Yen 329.674 million)
including |
|
| interest
amounting to Japanese Yen 26.374 million. The said Letter of Credit, which
was |
|
| established
in April 1996 for import of one Niigata engine, shall mature before the end
of |
|
| November
1998. On the basis of exchange rate currently prevailing the Company is
liable to |
|
| pay
in excess of Rs. 20 million more on the liability as above due to loss in
value (devaluation) |
|
| of
Pak Rs. against Japanese Yen over the period. |
|
|
|
|
| The
above facility is secured by creating first registered and equitable
pari-passu charge on |
|
| the
assets of the Company valuing upto Rs. 175 million. |
|
|
|
|
| 5.2
This represents the amount of Usance Letter of Credit (ULC) established by
Prime |
|
| Commercial
Bank Limited for Japanese Yen 66.796 million (1997: Rs. Nil) in September
1997 |
|
| for
import of spare parts for Niigata engine, the maturity date of which is
November 1999. |
|
| The
above facility is secured by creating first registered and equitable mortgage
pari-passu |
|
| charge
over fixed assets of the Company of a value upto Rs. 27 million and first |
|
| hypothecation
charge over stocks and receivables of the Company also valuing upto Rs. 27 |
|
| million
and personal guarantees of directors. |
|
|
|
|
| 6.
DEFERRED LIABILITY - Gratuity |
|
|
|
|
|
| Balance
brought forward |
|
|
369,850 |
100,250 |
|
|
|
|
|
|
| Provision
during the year |
|
|
414,050 |
269,600 |
|
| Payments
to outgoing staff |
|
|
27,800 |
- |
|
|
|
|
---------- |
---------- |
|
|
|
|
386,250 |
269,600 |
|
|
|
|
---------- |
---------- |
|
|
|
|
756,100 |
369,850 |
|
|
|
|
========== |
========== |
|
|
|
|
| 7.
SHORT TERM FINANCE - Secured |
|
| The
financing was obtained from various financial institutions and banks under
mark-up |
|
| arrangements
aggregating Rs. 82 million (1997: Rs. 74 million). The rate of mark-up ranges
from |
|
| 19%
to 23.5% (1997 · 20% to 23.5%). The purchase price of these facilities is to
be settled on |
|
| various
dates upto June 1999. |
|
|
|
|
| The
arrangements are secured by way of pari-passu charges over fixed assets,
hypothecation of |
|
| the
Company's stocks, trade debts and other receivables, pledge of shares (Shares
of Maple Leaf |
|
| Cement
Factory Limited. Please see note 12 on Long term investments), bank
guarantees and |
|
| personal
guarantees of sponsor directors. |
|
|
|
|
|
|
|
|
|
1998 |
1997 |
|
|
|
|
Rupees |
Rupees |
|
| 8.
CREDITORS, ACCRUED AND OTHER LIABILITIES |
|
| Creditors |
|
16,375,814 |
52,670,137 |
|
| Accrued expenses |
|
1,057,071 |
2,460,695 |
|
| Mark-up accrued
on short term finance |
1,811,234 |
2,657,844 |
|
| Commission payable on
letter of credit |
|
2,767,407 |
- |
|
| Workers' profit
participation fund |
8.1 |
8,097,003 |
3,689,492 |
|
| Electricity duty |
|
|
|
406,901 |
213,093 |
|
| Income tax deduction at source |
|
|
127,581 |
30,952 |
|
| Unclaimed dividend |
|
|
743,180 |
27,980,175 |
|
| Retention money |
|
276,828 |
1,626,997 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
31,663,019 |
91,329,385 |
|
|
|
|
========== |
========== |
|
|
|
|
| 8.1
Workers' profit participation fund |
|
| At beginning of the year |
|
|
3,689,492 |
911,170 |
|
| Allocation for the year |
|
|
4,140,040 |
2,742,051 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
7,829,532 |
3,653,221 |
|
| Interest
on funds utilised in the |
|
|
| company's business |
|
24 |
439,663 |
105,271 |
|
| Less: Amount paid |
|
|
172,192 |
69,000 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
267,471 |
36,271 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
8,097,003 |
3,689,492 |
|
|
|
|
========== |
========== |
|
|
| 9.
CONTINGENCIES & COMMITMENTS |
|
|
|
| 9.1
The Company is contingently liable to pay custom duty and regulatory duty
etc. amounting to |
|
| Rs.
33.388 million on import of three engines. The Company, however, filed a writ
petition in |
|
| January
1997 against levy of the duties before the Hon'able Lahore High Court, on
which the |
|
| Hon'able
Court passed an interim order staying recovery of the said dues. |
|
|
| 9.2
Bank guarantees have been issued by a bank of the Company aggregating Rs. 10
million |
|
| (1997
· Rs. 10 million). |
|
|
| 10.
OPERATING FIXED ASSETS-Tangible |
|
|
|
|
DEPRECIATION |
|
|
Cost at |
Additions/ |
Cost at |
|
Book value |
Depreciation |
| Particulars |
|
1 July |
(Deletions) |
30 June |
Accumulated |
For the |
Accumulated |
at 30 |
Rate % |
|
|
|
1997 |
|
1998 |
at 1 July |
year |
at 30 June |
June |
per annum |
|
|
1997 |
|
1998 |
1998 |
|
|
----------------------------------------------------------------------------------------------- |
| Freehold
land |
|
2,070,086 |
- |
2,070,086 |
- |
- |
- |
23,070,086 |
- |
| Building
on freehold land |
40,347,396 |
- |
40,347,396 |
5,013,003 |
3,533,439 |
8,546,442 |
31,800,954 |
10 |
| Plant
and machinery |
|
416,338,059 |
6,883,218 |
423,221,277 |
39,576,272 |
38,364,501 |
77,940,773 |
345,280,504 |
10 |
| Electrical
installation |
367,188 |
51,390 |
418,578 |
47,735 |
37,084 |
84,819 |
333,759 |
10 |
| Furniture
and fixture |
|
1,114,073 |
187,929 |
1,302,002 |
167,196 |
113,481 |
280,667 |
1,021,325 |
10 |
| Office
equipment |
|
574,260 |
- |
574,260 |
95,100 |
47,916 |
143,016 |
431,244 |
10 |
| Computers |
|
485,759 |
133,000 |
618,759 |
101,547 |
51,721 |
153,268 |
465,491 |
10 |
| Vehicles |
|
4,591,469 |
677,025 |
5,268,494 |
1,499,995 |
753,700 |
2,253,695 |
3,014,799 |
20 |
|
----------------------------------------------------------------------------------------------- |
| 1998 Rupees |
|
465,888,290 |
7,932,562 |
473,820,852 |
46,500,848 |
42,901,842 |
89,402,690 |
384,418,162 |
|
|
=============================================================================================== |
| 1997 Rupees |
|
287,387,435 |
179,171,308 |
465,888,290 |
10,383,447 |
36,251,493 |
46,500,849 |
419,387,441 |
|
|
|
(670,453) |
|
(134,091) |
|
|
|
=============================================================================================== |
|
|
|
1998 |
1997 |
|
|
|
Rupees |
Rupees |
|
|
|
|
|
| 10.1
The depreciation charge for the year has been allocated as under: |
|
|
|
|
| Cost
of generation |
|
Note 21 |
42,411,672 |
35,707,721 |
|
| Operating
expenses |
|
Note 22 |
490,170 |
543,772 |
|
|
|
|
---------- |
---------- |
|
|
|
|
42,901,842 |
36,251,493 |
|
|
|
|
========== |
========== |
|
|
|
|
|
| 11.
CAPITAL WORK-IN-PROGRESS |
|
|
| Building |
|
|
|
1,211,667 |
177,623 |
|
|
|
========== |
========== |
|
|
|
|
|
| 12.
LONG TERM INVESTMENT- at cost |
|
|
| Associated
undertaking - quoted |
|
|
| Maple
Leaf Cement Factory Limited |
|
|
| 6,000,000
(1997: 6,000,000) fully paid |
|
| Ordinary
shares of Rs. 10/- each |
|
60,900,000 |
60,900,000 |
|
|
|
|
========== |
========== |
|
|
|
|
| Aggregate
market quoted value of investment is Rs. 19.2 million (1997 : Rs. 51.9
million). No |
|
| provision
has been made for diminution in value of the investment as it is considered
temporary by |
|
| the
management in the context of its intention to hold the investment on a long
term basis. |
|
|
|
|
| 13.
DEFERRED COST |
|
|
|
| Deferred
cost |
|
|
9,641,506 |
9,641,506 |
|
| Less:
Amortization |
|
|
|
|
| At
beginning of the year |
|
1,928,300 |
- |
|
| During
the year |
|
1,928,300 |
1,928,300 |
|
|
|
---------- |
---------- |
|
|
|
3,856,600 |
1,928,300 |
|
|
|
---------- |
---------- |
|
|
|
5,784,906 |
7,713,206 |
|
|
|
|
========== |
========== |
|
|
|
|
|
| 14.
STORES, SPARES AND LOOSE TOOLS |
|
|
| Stores |
|
|
|
1,548,657 |
5,425,598 |
|
| Spares |
|
|
|
35,857,319 |
8,350,406 |
|
| Loose tools |
|
|
|
440,612 |
366,845 |
|
|
|
---------- |
---------- |
|
|
|
37,846,588 |
14,142,849 |
|
|
|
|
========== |
========== |
|
|
|
|
|
| 15.
STOCK OF OIL AND LUBRICANTS |
|
|
| Furnace oil |
|
|
|
6,150,030 |
1,345,638 |
|
| Diesel oil |
|
|
|
2,389,610 |
1,232,217 |
|
| Lube oil |
|
|
|
3,725,186 |
4,551,001 |
|
|
|
---------- |
---------- |
|
|
|
12,264,826 |
7,128,856 |
|
|
|
|
========== |
========== |
|
|
|
|
|
| 16.
TRADE DEBTS- Unsecured |
|
|
| Considered
good |
|
16.1 |
37,881,924 |
35,109,309 |
|
|
|
|
|
|
========== |
========== |
|
|
| 16.1
These include Rs. 14.444 million (1997: Rs. 13.43 million) due from
associated undertakings. |
|
|
|
|
| The
maximum aggregate amount due from associated undertakings at the end of any
month |
|
| during
the year was Rs. 15.871 million (1997: Rs. 14.111 million). |
|
|
|
|
|
|
|
|
1998 |
1997 |
|
|
|
Rupees |
Rupees |
|
| 17.
ADVANCES, DEPOSITS AND PREPAYMENTS |
|
|
| Advances
- Unsecured considered good |
|
| To
employees |
|
|
17.1 |
232,568 |
261,257 |
|
| To
suppliers and contractors |
|
2,450,478 |
2,520,043 |
|
| Income
Tax deducted at source |
|
384,792 |
1,273,352 |
|
| Deposit set aside for
usance letters of credit |
17.2 |
73,404,769 |
23,851,505 |
|
| Prepaid
expenses |
|
|
41,871 |
20,151 |
|
|
|
---------- |
---------- |
|
|
|
76,514,478 |
27,926,308 |
|
|
|
|
========== |
========== |
|
|
| 17.1
Advances to employees include Rs. 28,000 (1997 : Rs. 67,250) due from
executives. |
|
|
| The
maximum aggregate amount due from executives at the end of any month during
the |
|
| year
was Rs. 211,676 (1997: Rs. 150,000). |
|
|
|
|
| 17.2
This represents the balance built up by the Company on monthly basis for
repayment of long |
|
| term
loans as referred to in note 5, the maturity dates of which are November 1998
and |
|
| November
1999. It includes an amount of US $1,245,113 which is converted into Pak
rupees |
|
| at
the rate of exchange prevailing at the balance sheet date. |
|
|
|
|
| 18.
OTHER RECEIVABLES |
|
|
|
| Unsecured
- considered good |
|
|
| Due
from associated undertakings |
|
18.1 |
606,907 |
359,446 |
|
| Mark-up
receivable |
|
|
1,170,144 |
268,715 |
|
|
|
|
---------- |
---------- |
|
|
|
|
1,777,051 |
628,161 |
|
|
|
|
========== |
========== |
|
|
|
|
| 18.1
The maximum aggregate amount due form associated undertakings at the end of
any month |
|
| during
the year was Rs. 606,907 (1997' Rs. 531,514). |
|
|
|
|
| 19.
CASH AND BANK BALANCES |
|
|
| Cash
in hand |
|
|
222,449 |
168,718 |
|
| Cash
at banks |
|
|
|
| -On
deposit accounts |
|
|
1,831,306 |
4,388,102 |
|
| -
On current accounts |
|
|
183,488 |
162,023 |
|
|
|
---------- |
---------- |
|
|
|
2,237,243 |
4,718,843 |
|
|
|
|
========== |
========== |
|
|
|
|
|
| 20. SALES |
|
|
|
| Gross Sales |
|
|
|
391,835,556 |
264,668,570 |
|
| Less:
Electricity duty |
|
|
2,428,003 |
1,826,618 |
|
|
|
---------- |
---------- |
|
|
|
389,407,553 |
262,841,952 |
|
|
|
|
========== |
========== |
|
|
|
|
|
| 21.
COST OF GENERATION |
|
|
|
| Oil
and lubricants consumed |
|
|
202,472,543 |
134,332,533 |
|
| Water
dozing chemical consumed |
|
|
5,680,862 |
7,734,412 |
|
| Salaries,
wages and benefits |
|
|
7,595,835 |
6,175,385 |
|
| Insurance |
|
|
1,159,906 |
879,377 |
|
| Repair
and maintenance |
|
|
20,873,054 |
3,692,846 |
|
| Depreciation |
|
10.1 |
42,411,672 |
35,707,721 |
|
| Other
expenses |
|
|
2,638,192 |
1,706,817 |
|
|
|
|
---------- |
---------- |
|
|
|
|
282,832,064 |
190,229,091 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
1998 |
1997 |
|
|
|
|
Rupees |
Rupees |
|
| 22.
OPERATING EXPENSES |
|
|
|
| Salaries
and benefits |
|
|
3,179,882 |
2,588,975 |
|
| Directors'
fee |
|
|
500 |
- |
|
| Travelling
and conveyance |
|
|
195,188 |
103,672 |
|
| Printing
and stationery |
|
|
325,549 |
315,795 |
|
| Books
and periodicals |
|
|
14,897 |
13,882 |
|
| Postage,
telephone and telegrams |
|
|
367,354 |
412,667 |
|
| Office
maintenance |
|
|
134,730 |
146,891 |
|
| Vehicle
running and maintenance |
|
|
457,980 |
414,646 |
|
| Advertisement |
|
|
42,250 |
138,897 |
|
| Entertainment |
|
|
96,917 |
88,277 |
|
| Legal
and professional |
|
|
101,045 |
163,753 |
|
| Fees
and subscription |
|
|
87,507 |
77,840 |
|
| Auditors'
remuneration |
|
22.1 |
40,000 |
35,000 |
|
| Charity
and donation |
|
22.2 |
- |
528,750 |
|
| Depreciation |
|
10.1 |
490,170 |
543,772 |
|
| Other
expenses |
|
|
99,504 |
119,993 |
|
|
|
|
---------- |
---------- |
|
|
|
|
5,633,473 |
5,692,810 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 22.1
Auditors' remuneration |
|
|
| Statutory
audit fee |
|
40,000 |
35,000 |
|
|
|
---------- |
---------- |
|
|
|
40,000 |
35,000 |
|
|
|
|
|
========== |
========== |
|
|
|
|
| 22.2
None of the directors or their spouses had any interest in the donees. |
|
|
|
|
| 23.
OTHER INCOME |
|
|
|
| Profit
on bank deposits |
|
|
| Rupees
accounts |
|
1,737,929 |
739,311 |
|
| Dollar
accounts |
|
1,416,553 |
400,644 |
|
| Profit
on disposal of fixed asset |
|
- |
93,638 |
|
| Exchange
gain |
|
750,763 |
469,649 |
|
|
|
---------- |
---------- |
|
|
|
3,905,245 |
1,703,242 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 24.
FINANCIAL AND OTHER CHARGES |
|
|
| Profit/Mark
up on: |
|
|
|
| Short
term finance |
|
|
16,054,241 |
10,769,223 |
|
| Workers'
profit participation fund |
|
8.1 |
439,663 |
105,271 |
|
| Commission
payable on letter of credit |
|
2,767,407 |
- |
|
| Bank
guarantee commission |
|
|
190,658 |
226,598 |
|
| Bank
charges |
|
|
666,187 |
752,879 |
|
|
|
|
---------- |
---------- |
|
|
|
|
20,118,156 |
11,853,971 |
|
|
|
|
|
========== |
========== |
|
|
|
| 25.
TAXATION- Prior year's |
|
| This
represents the amount paid for the assessment years 1995-96 & 1996-97. |
|
|
| 26.
REMUNERATION OF DIRECTORS AND EXECUTIVES |
|
|
| 26.1
Aggregate amount charged in the account for remuneration, including all
benefits to the |
|
| directors
and executives of the company is as follows: |
|
|
|
|
|
Directors |
Executives |
|
|
1998 |
1997 |
1998 |
1997 |
|
|
|
Rupees |
Rupees |
Rupees |
Rupees |
|
|
|
|
|
| Fee
for attending Board meeting |
500 |
- |
- |
- |
|
| Managerial
remuneration |
- |
- |
1,932,606 |
1,451,000 |
|
| House
rent and utilities |
- |
- |
1,052,823 |
709,350 |
|
| Bonus
and Ex-gratia |
|
- |
- |
411,090 |
89,683 |
|
| Other
allowances and reimbursements |
- |
- |
860,584 |
780,600 |
|
|
|
------------------------------------------------ |
|
|
|
500 |
- |
4,257,103 |
3,030,633 |
|
|
|
================================================= |
|
| Number
of persons |
|
1 |
- |
9 |
7 |
|
|
|
|
================================================= |
|
|
| 26.2
Six executives of the Company are provided with free use of Company's owned
and |
|
| maintained
cars. |
|
|
| 27.
TRANSACTIONS WITH ASSOCIATED UNDERTAKINGS |
|
|
| 27.1
The Company purchased from associated undertakings material and services
aggregating |
|
| Rs.
3.6 million (1997: Rs. 5.1 million). |
|
|
| 27.2
The Company sold to associated undertakings electric energy aggregating Rs.
148.462 |
|
| million
(1997: Rs. 125.727 million). |
|
|
| 28.
PLANT CAPACITY AND ACTUAL POWER GENERATION |
|
|
|
|
| Number
of generators installed |
|
3 |
3 |
|
| Number
of generators worked |
|
3 |
3 |
|
| Installed
capacity (Mega watt hour) |
|
137,361 |
101,306 |
|
| Actual
generation (Mega watt hour) |
|
111,976 |
91,541 |
|
|
| 28.1
Plant operation capacity is based on 330 days (1997: 330 days). |
|
|
| Reason
for low generation |
|
| Actual
power generation in comparison to plant capacity is low due to periodical,
scheduled |
|
| and
un-scheduled maintenance of generators and standby arrangements. |
|
|
|
|
|
1998 |
1997 |
|
|
|
Rupees |
Rupees |
|
| 29.
CASH GENERATED FROM OPERATIONS |
|
|
|
|
|
| Profit
for the year |
|
|
78,660,765 |
52,098,971 |
|
| Adjustment
for non cash charges and other items |
|
|
| Depreciation |
|
|
42,901,842 |
36,251,493 |
|
| Amortisation
of deferred costs |
|
|
1,928,300 |
1,928,300 |
|
| Profit
on disposal of fixed assets |
|
|
- |
(93,638) |
|
| Financial
charges |
|
|
20,118,156 |
11,853,971 |
|
| Provision
for gratuity |
|
|
414,050 |
269,600 |
|
| Working
capital changes |
|
29.1 |
(111,440,456) |
49,943,067 |
|
|
|
|
---------- |
---------- |
|
|
|
|
32,582,657 |
152,251,764 |
|
|
|
|
========== |
========== |
|
| 29.1
Working capital changes |
|
|
|
|
|
| (Increase)/decrease
in current assets |
|
|
|
|
| Stores,
spares and loose tools |
|
|
(23,703,739) |
(3,942,273) |
|
| Stock
of oil and lubricants |
|
|
(5,135,970) |
26,692,990 |
|
| Trade debts |
|
|
(2,772,615) |
(17,514,415) |
|
| Advances,
deposits and prepayments |
|
|
(48,588,170) |
(19,526,451) |
|
| Other
receivables |
|
|
(1,148,890) |
(628,161) |
|
|
|
|
---------- |
---------- |
|
|
|
|
(81,349,384) |
(14,918,310) |
|
|
|
|
|
|
| Increase/(decrease)
in current liabilities |
|
| Short
term running finance - secured |
|
4,259,097 |
52,324,782 |
|
| Creditors,
accrued and other liabilities |
|
(34,350,169) |
12,536,595 |
|
|
|
|
---------- |
---------- |
|
|
|
|
(30,091,072) |
64,861,377 |
|
|
|
|
---------- |
---------- |
|
|
|
|
(111,440,456) |
49,943,067 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
| 30.
CASH AND CASH EQUIVALENTS |
|
| Cash
and cash equivalents included in cash flow statement comprise only cash and
bank balances |
|
| as
appearing in balance sheet. |
|
|
| 31. FIGURES |
|
|
| 31.1
Figures have been rounded off nearest to Rupee. |
|
|
| 31.2
Corresponding figures for prior year have been re-arranged wherever necessary
to facilitate |
|
| comparison. |
|
|
|
SARMAD AMIN |
|
WUSOOQ KHALEELI |
|
|
Chief Executive |
|
Director |
|
|
|
| PATTERN
OF SHARES HELD BY THE SHAREHOLDERS |
|
| AS
AT 30 JUNE 1998 |
|
|
| No. of |
Shareholding |
Total |
|
| Shareholders |
From |
To |
Shares Held |
|
|
| 16 |
1 |
100 |
1,280 |
|
| 3,547 |
101 |
500 |
1,766,700 |
|
| 133 |
501 |
1,000 |
132,500 |
|
| 187 |
1,001 |
5,000 |
568,600 |
|
| 54 |
5,001 |
10,000 |
462,820 |
|
| 20 |
10,001 |
15,000 |
237,300 |
|
| 10 |
15,001 |
20,000 |
184,900 |
|
| 9 |
20,001 |
25,000 |
218,500 |
|
| 3 |
25,001 |
30,000 |
84,000 |
|
| 10 |
35,001 |
40,000 |
394,500 |
|
| 1 |
40,001 |
45,000 |
40,500 |
|
| 3 |
45,001 |
50,000 |
150,000 |
|
| 1 |
50,001 |
55,000 |
53,500 |
|
| 1 |
60,001 |
65,000 |
63,500 |
|
| 1 |
75,001 |
80,000 |
80,000 |
|
| 4 |
95,001 |
100,000 |
396,500 |
|
| 1 |
155,001 |
160,000 |
156,000 |
|
| 1 |
165,001 |
170,000 |
169,500 |
|
| 1 |
200,001 |
205,000 |
202,000 |
|
| 2 |
235,001 |
240,000 |
475,400 |
|
| 1 |
295,001 |
300,000 |
295,500 |
|
| 1 |
395,001 |
400,000 |
397,000 |
|
| 1 |
995,001 |
1,000,000 |
1,000,000 |
|
| 1 |
1,090,001 |
1,095,000 |
1,095,000 |
|
| 1 |
2,155,001 |
2,160,000 |
2,156,000 |
|
| 1 |
2,755,001 |
2,760,000 |
2,756,700 |
|
| 1 |
2,760,001 |
2,765,000 |
2,761,800 |
|
| ---------- |
|
---------- |
|
| 4,012 |
|
GRAND TOTAL |
16,300,000 |
|
| ========== |
|
========== |
|
|
| Note:
The slabs not applicable have not been shown. |
|
|
| Categories
of |
|
Number of |
Number of |
Percentage of |
|
| Shareholders |
|
Shareholders |
Shares Held |
Issued Capital |
|
|
|
|
|
| Individuals |
|
3,989 |
5,040,600 |
30.923 |
|
| Investment
Companies |
|
8 |
1,547,400 |
9.493 |
|
| Joint
Stock Companies |
|
5 |
7,675,600 |
47.090 |
|
| Modaraba |
|
4 |
63,000 |
0.387 |
|
| Foreign
Investors |
|
6 |
1,973,400 |
12.107 |
|
|
|
---------- |
---------- |
---------- |
|
| GRAND TOTAL |
|
4,012 |
16,300,000 |
100.000 |
|
|
========== |
========== |
========== |
|
|
|
|
|
|
|
|
|
|
|
|
