PAKISTAN TELEPHONE CABLES LIMITED
ANNUAL REPORT
YEAR 2003
Vision Statement
To be recognized globally by producing
a high quality cable to click the resources
efficiently and effectively.
Mission Statement
Our mission is to be the leader
among corporation. We will strive
to achieve excellence in any endeavors
we undertake. To fulfil this mission, we
must be both responsive and anticipatory
as we serve our major constituencies.
Management competence, customer service,
technical progress, employee opportunity
development, stockholders return, community
well-being, national and international
responsibilities.
CONTENTS
VISION / MISSION
COMPANY INFORMATION
NOTICE OF THE MEETING
DIRECTORS REPORT
FINANCIAL POSITION AT GLANCE
STATEMENT OF COMPLIANCE WITH BEST
PRACTICES OF CORPORATE GOVERNANCE.
AUDITORS REPORT TO THE MEMBERS
BALANCE SHEET
PROFIT AND LOSS ACCOUNT.
CASH FLOW STATEMENT
NOTES TO THE ACCOUNTS
PATTERN OF SHAREHOLDING
CORPORATE INFORMATION
BOARD OF DIRECTORS
RAZA ABDUL AZIZ AL-RAEE			CHAIRMAN / CHIEF EXECUIVE
AIJAZ ABDUL AZIZ AL-RAEE			DIRECTOR
RIYADH ABDUL AZIZ AL-RAEE			DIRECTOR
RABIA BARKAT ALI			DIRECTOR
MUHAMMAD KASHIF			DIRECTOR
SUMIAH SAEED-UR-REHMAN			DIRECTOR
ASMA HAFEEZ			DIRECTOR
AUDIT COMMITTEE
AIJAZ ABDUL AZIZ AL-RAEE			CHAIRMAN
RIYADH ABDUL AZIZ AL-RAEE
RABIA BARKAT ALI
MUHAMMAD ISHAQ AHMED			SECRETARY
CHIEF FINANCIAL OFFICER7SECRETARY
MUHAMMAD ISHAQ AHMED
AUDITORS
MIS. KHALID MAJID REHMAN
SARFAAZ RAHIM IQBAL RAFIQ & CO.
CHARTERED ACCOUNTANTS, KARACHI.
BANKERS
PICIC COMMERCIAL BANK LIMITED
BANKAL-FALAH LIMITED
ABN-AMRO BANK LIMITED
MUSLIM COMMERCIAL BANK LIMITED
REGISTERED OFFICE/FACTORY
18TH MILE RCD HIGHWAY 27/3/2
MOUZA BAIRUT, TEHSIL HUB
DISTRICT LASBELLA
BALUCHISTAN.
LIAISON OFFICE
ROOM NO. 107,
ELAHI CENTRE, 2ND FLOOR,
PREEDY STREET, SADDAR
KARACHI.
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the 20th Annual General Meeting of the Shareholders of PAKISTAN TELEPHONE
CABLES LIMITED will be held on Tuesday the 23rd December, 2003 at 14.30 Hours at Registered Office
18th Mile RCD Highway 27/3/2 Mouza Bairut, Tehsil Hub, District Lasbella, Baluchistan to transact the
following business:
1.       To confirm the minutes of the 19th Annual General Meeting of the Company held on Thursday
the 24th October, 2002.
2.       To receive, consider and adopt the audited accounts of the company for the year ended June 30,
2003 together with the auditor's report thereon and Director's report for the year then
ended.
3.       To elect 7 (Seven) Directors as fixed under section 178 of the Companies Ordinance, 1984 for a
period of three years.
4.       To appoint auditors for the year 2003-2004 and to fix their remuneration.
5.       To transact any other business with the permission of the chairman.
By order of the Board
(Muhammad Ishaq Ahmed)
Dated: 18th November, 2003                                                                     Company Secretary
Notes:
1.       Share Transfer Books of the Company will remain close from 22-12-2003 to 29-12-2003
(both days inclusive).
2.       All members are entitled to attend and vote at the meeting. A member may appoint a proxy
who be a member of the Company.
3.       The instrument appointing the proxy and other authority under which it is signed, or a notarially
certified copy thereof, must be lodged at the company's Registered Office or Liaison
Office duly revenue stamped of Rs. 5/- and signed not later than 48 hours before the time of
the meeting.
4.       Notice of intention of any person seeking election as a director of the company according to
Section 178 of the Companies Ordinance 1984 must be received by the company at least 14
days before the Annual General Meeitng.
5.       Any change of address should be notified immediately to the company.
6. CDC Account Holders will further have to follow the under mentioned guidelines as laid down
in Circular No. 1 Dated January 26, 2002 issued by the Securities & Exchange Commission of
Pakistan.
FOR ATTENDING THE MEETING
(i)      Incase of individuals, the account holder or sub-account holders and / or the persons whose
securities in group and their registration details are up-loaded as per the regulations, shall
authenticate his / her identity by showing his / her original national identity card (N.I.C.) or original
passport at the time of attending the meeting.
(ii) In case of corporate entity, the Board of Directors' resolution / Power of Attorney with specimen
signature of the nominee shall be produced (unless it has been provided earlier) at the time of meeting.
FOR APPOINTING PROXIES
(i) Incase of individuals, the account holders or sub-account holders and / or the persons whose securities
in Group account and their registration details are up-loaded as per the regulations, shall submit
the proxy form as per the above requirement.
(ii) The proxy shall be witnessed by two persons whose names, addresses and NIC numbers shall be
mentioned on the form.
(iii) Attested copies of NIC or Passport of the beneficial owner and the proxy shall be furnished with
the proxy form.
(iv)    The proxy shall produce his / her original NIC or original Passport at the time of the meeting.
(v) Incase of corproate entity, the Board of Directors' resolution / Power of attorney with specimen
signature shall be submitted (unless it has been provided earlier) alongwith proxy form to the company.
REPORTS OF DIRECTORS
The directors takes pleasure in presenting their 20th Annual Report on the performance alongwith the
audited financial statement of the company for the year ended June 30, 2003.
PRINCIPAL ACTIVITIES
The company is principally engaged in the manufacturing and sales of Telecommunication Cables of various
specification to its principal consumer M/s. Pakistan Telecommunication Company Ltd., (PTCL) Islamabad
and Ministry of Defence (SCO) Rawalpindi.
BUSINESS REVIEW
Review of Business activities of the company is as follows:
Company's sales suffered a decline by over 10% as compared to last year due to various reasons which
also brought down its Gross Profit substantially. Tough competition by foreign manufacturers in Pakistan
Telecommunications Company Ltd, International Tender led to reduction in selling prices as well as distribution
of ordered quantity among local and foreign bidders. Price increase were also experienced in fuel, cost of
raw materials and Stores & Spare consumed. The increase in quantity sold during the year as compared
to last year was not helpful and generating higher profit for the reasons mentioned above.
Despite difficult conditions, the company manage to close the year with operating profit of Rs. 10.20 million
which would have been higher, had the burden of increase the freight, handling, delivery and liquidated
damages for delayed deliveies werenot borne by the company.
Under the circumstances the Chief Executive has volunteered to slash his salary from Rs.800,0007- per
month to Rs. 100,0007- per month drawn during the year. This has resulted in reduction of administrative
expenses by Rs. 8.40 million and increase in advances by the same amount which he shall repay to the
company in due course of time.
EXPANSION OF PROJECT
The expansion plant is in progress at in estimated total outlay of Rs. 90.00 Million. Machinery valued at Rs.
34.62 million has already been imported from China under lease agreement with Orix Leasing Paksitan
Ltd., civil works is heading as plant duly supported by Chinese Technical Assistance as well as from local
professionals.
With the completion of expansion, the company would achieved the capability of Hi-Tech telephone cables
producer and operate efficiently to reduce cost and accept orders for manufacturing increase quantity with
increase in production capacity.
FINANCAL RESULT
The financial results are summarized as under:
					Year Ended
					30-06-2003
					Rupees
Net Profit for the year before taxation
Out of which the Directors have accounted					3,757,142
for taxation as under:
Current					-2,073,783
Prior					-
Deferred					(20.804,382)	-22,878,165
(Loss) after taxation						-19,121,023
Proposed divided NIL (2002 = 20% Rs. 2 per share)					-
Accumulated Loss Brought Forward					-128,203,595
Accumulated Loss Carried Forward                   '					-147,324,618
Earning per share (Loss Rs. 0.911) (2002: Profit Rs. 3.769)
PRODUCTION
The company produced 654460 Conductor Core Kilometer (CCKM) comprising of 4468 KM finished telecomm
cables during the year. The production is achieved 40.15% greater than the last year.
SALES
Sales during the year amounted to Rs. 372.95 Million (2002: Rs. 422.97 Million). Sale revenues decreased
by 11.82% as compared to last year. The management has also expressed that the sales has increased
in quantitative terms but in Rupee terms, it has gone drawn due to substantial decline in prices quoted in
Tender (International) offered by Pakistan Telecommunication Company Ltd., Islamabad.
GROSS PROFIT
The gross profit for the year was considerably lower at 14.67% as compared with 31.38% for the previous
year.
FINANCIAL REPORTING & FRAMEWORK
(i) The company has implemented the requirement of the Code of Corproate relevant of the year ended
June 30, 2003. A prescribed statement by the management together with the
auditors' review report thereon is annexed to this report.
(ii)     Statement under clause six of the Code
a.       The financial statement prepared by the management of the Company, present fairly, its state
of affairs, the results of its operations, cash flows and changes in equity.
b.       Proper books of accounts of the Company have been maintained.
c.       Appropriate accounting policies have been consistently applied in preparation of financial
statements and accounting estmates are based on reasonable & prudent judgement.
d.       International Accounting Standads have been followed in preparation of financial statements
without any material departure.
e.       The system of internal control is sound in design and have been effectively implemented
and monitored.
f.        There are no doubts about the Company's ability to continue is going concern.
g.       There has been no material departure from the best practices of corporate governance,
as detailed in the listing regulations.
g.      Summarized key operating and financial data of last six years is tabulated. (Annexed).
			RUPEES
i.       Oustanding taxes and levies:
Income Tax Provision (Current)			2.073 Million
IncomeTax Provision (Deferred)			20.804 Million
Workers' Profit Participation Fund			12.686 Million
Sales Tax			0.335 Million
j.       The details of Board meeting held and attended by the directors is as follows:
Name of Director			No. of Meetings Attended
Mr. Abdul Aziz AI-Raee			1
Mr. Raza Abdul Aziz AI-Raee			4
Mr. Nisar Abdul Aziz AI-Raee			4
Mr. Riyadh Abdul Aziz AI-Raee			4
Mr. Ejaz Abdul Aziz AI-Raee			4
Mr. Mian Ghulam Abbas			1
Mr. Mr. Aqeel Ahmed			4
Mrs. Rabia Barkat AN			4
Mr. Muhammad Kashif			1
Mrs. Asma Hafeez AI-Raee			1
Mrs.Sumiah Saeed ur Rehman			1
k.      The prescribed patern of share holding is included in Report.
SAFETY, HEALTHY AND ENVIRONMENT