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IDEAL ENERGY LIMITED
Annual Reports 2003
CONTENTS
COMPANY INFORMATION
NOTICE OF MEETING
DIRECTORS' REPORT
STATEMENT OF COMPLIANCE
OPERATING AND FINANCIAL DATA
REVIEW REPORT
AUDITORS' REPORT
BALANCE SHEET
PROFIT AND LOSS ACCOUNT
STATEMENT OF CHANGES IN EQUITY
CASH FLOW STATEMENT
NOTES TO THE ACCOUNTS
PATTERN OF SHAREHOLDING
DIRECTORS REPORT TO THE MEMBER
In the name of Allah the Most Merciful and Most Benevolent.
The Director's feel pleasure in submitting their Annual report together with the company
Financial statement for the year ended June 30, 2003 and Auditor's report thereon.
Operating result during 01-07-2002 to 30-06-2003 are given below:
					2003	2002
Operating profit					35,576,961	15,809,949
Other Income					-	503,490
					35,576,961	16,313,439
Less: Financial Charges					3,034,355	4,157,733
Provision for W.P.P.F					1,630,498	611,609
					4,664,853	4,769,342
Profit for the year before taxation					30,912,108	11,544,097
Taxation					39,713	17,880
Profit for the year after Taxation					30,872,395	11,526,217
Un-appropriated Profit B/F					55,941,747	59,493,527
Profit available for appropriations					86,814,142	71,019,744
Proposed Cash Dividend @ 25 %					20,000,000	16,000,000
(Rs. 2.5 per share)
Un-appropriated profit C/F					66,814,142	55,019,744
This year as expected the better results achieved inspite of increase in Furnace oil prices
which changes fortnightly. Highest rate was in March 2003 which comes to Rs. 14409
per ton
Waste heat economizer has also increased revenue.
Dividend:
Inspite of increase in Furnace oil prices, your company has earned net profit Rs.
30,872,395 and Board of Director's pleased to approve 25% cash dividend as compared
to last year dividend (@20%).
Sale:
Sales revenue during the year has increased by 40.026 million.
Your directors wish to place their appreciation on record to the shareholders and Bankers
of the Company for their continued guidance and support and also playing the vital role
in the progress of the Company.
The Directors are passed'to record their appreciation and hope that the same spirit of
devotion and dedication will continue in future.
STATEMENTS OF CORPORATE AND FINANCIAL REPORTING FRAME WORK
a.    The financial statements prepared by the management of company, present fairly
its State of affairs, the result of its operations, cash flow and charges in equity.
b.   Proper books of account of the company have been maintained.
c.    Appropriate accounting policies have been consistently applied in preparation of
Financial statement except a change in accounting policy as disclose in notes to
the accounts and accounting estimates are based on reasonable and prudent
Judgment.
NOTICE OF MEETING
Notice is hereby given that the 9th Annual General Meeting of IDEAL ENERGY
LIMITED will be held at 404, 4lh Floor Business center, Dunally road, Karachi on
Tuesday, October 28, 2003. At 03.00.p.m. to transact the following business:
1.         To confirm the minutes of the last Annual General Meeting held at October 05,
2002
2.         To receive, consider and adopt the audited accounts for the year ended June 30,
2003 together with the Auditor's and Directors report thereon.
3.         To approve the payment of cash dividend @ 25% ( Rs. 2.50 per share) in the
ordinary share Capital of the Company as recommended by the board of Directors
4.         To appoint auditors for the current year and to fix their remuneration. The present
auditors M/s M. Yousuf Adil Saleem & Co; Chartered Accountants, being
eligible, have offered themselves for re-appointment.
5.         To transact any other ordinary business of the Company with the permission of
the chair.
KARACHI                                                           BY ORDER OF THE BOARD
JAVED ABBAS NAQVI
September 30, 2003                                               COMPANY SECRETARY
NOTES:
1.         The share transfer book of the company remains closed from 23al October, 2003
to 28n October, 2003 (both days inclusive). Transfers received in order at the
registered office of the Company at the close of business hours on 22nd October
2003 will be treated in time for the purposes of the dividend to transferees.
2.         A member entitle to attend and vote this meeting may appoint another member as
proxy, proxies in order to be effective must be received at the Registered office of
the Company not less than 48 hours before the time of the meeting.
3.         Shareholders who have deposited their share into Central Depository Company
are being advised to bring his/her original NIC or Passport to prove his/her
identity. Representatives of corporate members should bring the usual documents
required for such purpose.
4.         Shareholders are requested to promptly notify the change of addresses.
STATEMENT OF COMPLIANCE WITH THE CODE OF CORPORATE
GOVERNANCE
This Statement is being presented to comply with the Code of Corporate Governance
contained in Regulations No. 37 of listing regulations of Chapter XIII of the purpose of
establishing a framework of good governance, whereby a listed company is managed in
compliance with the best practices of corporate governance.
The Company has applied the principles contained in the Code in the following manner:
1.   The Company encourages representation of independent non-executive directors
representing minority interests on its Board of Directors. At present the Board
includes one executive and six non-executive directors.
2.   The directors have confirmed that non of them is serving as a director in more
than ten listed companies, including this Company.
3.   All the directors of the Company are registered as tax payers and non of then has
defaulted in payment of any loan to a banking company, or a DPI or and NBFI or,
being a member of a stock exchange, has been declared as a defaulter by that
stock exchange.
4.   The company has prepared a " Statement of Ethics and Business Practices" which
has been singed by all the directors and employees of the company.
5.   The Board has developed a vision/mission statement, overall corporate strategy
and significant policies of the Company. A complete record of particulars of
significant policies along with the dates on which they were approved and
amended has been maintained.
6.   All the powers of the Board have been duly exercised and decisions on material
transactions, including appointment and determination and terms and conditions
of employment of the CEO and other executive directors, have been taken by the
Board.
7.   The meeting of the Board were presided over by the Chairman and, in his
absence, by a director elected by the Board for this purpose and the Board met at
least once in every quarter. Written notice of the Board meetings, along with
agenda and working papers, were circulated at least seven days before the
meetings. The minutes were appropriately record and circulated.
8.   The Board arranged an orientation course for its directors during the year to
apprise them of their duties and responsibilities. More course will follow in
future.
9.   The Board has been approved appointment of CFO, Company Secretary and Head
of Internal Audit, Including Their remuneration and terms and conditions of
employment, as determined by the CEO, when new appointments are made.
10. The director's report for this year has been prepared in compliance with the
requirements of the Code and fully describes the salient matters required to be
disclosed.
d.    International accounting standards, as applicable in Pakistan have been followed
in preparation of financial statement.
e.    The system of internal control is sound in design and has been effectively
implemented and monitored.
f.    There are no significant doubt upon the company's ability to continue as going
concern.
g.   There  has been  no  material  departure  from  the best practices  of corporate
governance as detailed in the listing regulations.
h.   Key operating and financial data of last six year in summarized from with this
report,
i.    During the year 4 meetings of the board of directors were held attendance by each
directors is as follows.
Name of Directors				No of meetings attended
NISAR AHMAD SHEIKH				4
MUHAMMAD ARSHAD				4
MUHAMMAD ANWAR SAJ.1AD				4
MUHAMMAD SAEED				3
AMJAD SAEED				4
SHAHZAD AHMAD				4
NAUREEN SHAHZAD				—
Trading of Shares
Director, company secretary, CFO Head of internal Audit and their spouses and minor
children has not purchase or sold shares during the year.
Statement of Director's Responsibility
Board of Directors is mindful of its responsibilities and duties under legal and corporate
frame work.  The  board  defines  and  establishes  Company's  overall  objectives  and
directions and monitors status thereof. Short term and long term plans and business
performance targets are set by Chief Executive under over all policy frame work of the
Board.
There has been non-material departure from the best practices of Corporate Governance,
as detailed in the listing regulations.
Audit Committee:
Audit committee was established to assist Board in discharging its responsibilities for
Corporate Governance,  Financial  Reporting and Corporate Control.  The Committee
consists of three members.
Pattern of Share Holding:
A statement showing the pattern of shareholding as at June 30, 2003 is attached
Future Prospects:
Due to deregulation of the Furnace oil prices have changed 24 times during the year As
the prices of Furnace oil is fixed fortnightly.
Future profitability of the company mainly depend on electricity tariff and Furnace oil
prices.
Acknowledgement:
1 also express my appreciation to the workers, staff and officers of your company for their
hard work, Zeal and dedication.
For and on behalf of the board
NISAR AHMAD SHEIKH