| Al-Abbas Sugar Mills Limited |
|
|
|
|
|
|
|
| Annual
Report 2000 |
|
|
|
| CONTENTS |
|
|
| Company
Information |
|
| Notice of Annual General
Meeting |
|
| Directors' Report |
|
| Pattern of Share Holding |
|
| Auditors' Report |
|
| Balance
Sheet |
|
|
| Profit
& Loss Account |
|
| Cash
Flow Statement |
|
| Notes
to the Accounts |
|
|
|
| COMPANY
INFORMATION |
|
|
| BOARD
OF DIRECTORS |
|
HAJI ABDUL GHANI |
|
|
Chairman |
|
|
|
MR. SHUNAID QURESHI |
|
|
Chief Executive |
|
|
|
MR. MUHAMMAD IQBAL USMAN |
|
|
|
MR. TARIQ USMAN BHATTI |
|
|
|
MR. MUHAMMAD AYOUB |
|
|
|
MR. KHALID USMAN BHATTI |
|
|
|
MR. ABDUL SATTAR RAJA |
|
|
|
MR. DURAID QURESHI |
|
|
|
MR. ASIM GHANI |
|
|
| COMPANY
SECRETARY |
|
MR. MUHAMMAD SULEMAN
KANJIANI |
|
|
|
| AUDITORS |
|
HAROON ZAKARIA & CO. |
|
|
Chartered Accountants |
|
|
| LEGAL
ADVISOR |
|
MR. MUHAMMAD MAZHAR ALI |
|
|
Advocate |
|
|
| REGISTERED
OFFICE |
|
4th Floor, P.N.S.C.
Building, |
|
|
Moulvi Tamizuddin Khan
Road, |
|
|
Karachi. |
|
|
Tel: 5611895-96 &
5611724 |
|
|
Fax: 92-21-5610778 |
|
|
| MILL |
|
Mirwah Gorchani, |
|
|
Distt. Mirpurkhas. |
|
|
|
| NOTICE
OF THE TENTH ANNUAL GENERAL MEETING |
|
|
| NOTICE
is hereby given that the Tenth Annual General Meeting of the Company will be
held on |
|
| Wednesday,
the 28 February, 2001 at 1600 hours at Raffia Chaudri Memorial Centre, Ground
Floor, Sidco |
|
| Avenue
Centre, Karachi to transact the following business: |
|
|
| 1.
To confirm the minutes of last Annual General Meeting held on 25th March,
2000. |
|
|
| 2.
To receive and adopt the Audited Accounts for the year ended 30th September,
2000 together with |
|
| the
Directors' and Auditors' Report thereon. |
|
|
| 3.
To appoint Auditors of the Company for the year 2000-2001 and to fix their
remuneration. The |
|
| retiring
Auditors Messers. Haroon Zakaria & Co. Chartered Accountants being
eligible, have offered |
|
| themselves
for re-appointment. |
|
|
| 4.
To approve the payment of cash dividend at the rate of 15% (Rupee1.50 per
share) as recommended |
|
| by
the Directors. |
|
|
| Special
Business |
|
| 5.
To elect Directors of the Company in accordance with the provisions of the
Companies Ordinance, |
|
| 1984.
The number of elected Directors of the Company fixed by the Board of
Directors in their |
|
| meeting
held on January 18, 2001 is Seven (7). The retiring Directors are Haji Abdul
Ghani, Shunaid |
|
| Qureshi,
Muhammad Iqbal Usman, Tariq Usman Bhatti, Muhammad Ayoub, Khalid Usman |
|
| Bhatti,
Abdul Sattar Raja, Duraid Qureshi and Asim Ghani. |
|
|
| 6.
To transact any other business, with the permission of the Chair. |
|
|
| By
Order of the Board. |
|
|
| MUHAMMAD
SULEMAN KANJIANI |
|
| Company
Secretary |
|
|
| Karachi,
Dated 29th January, 2001 |
|
|
| NOTES: |
|
| 1.
The Share Transfer Books of the Company will remain closed and no transfer of
shares will be accepted for registration |
|
| from
21st February 2001 to 28th February, 2001 (both days inclusive). |
|
| 2.
A member entitled to attend and vote at the General meeting is entitled to
appoint a proxy to attend and vote on |
|
| his
behalf. Proxies in order to be valid must be received at the Registered
Office of the company not later than 48 |
|
| hours
before the time of the Meeting. A proxy must be a member of the Company. |
|
| 3.
Shareholders are advised to notify the company of any change in their address
immediately to ensure prompt delivery |
|
| of mails. |
|
| CDC
Account Holders will further have to follow the undermentioned guidelines as
laid down by the Securities and Exchange |
|
| Commission
of Pakistan. |
|
|
| A.
For Attending the Meeting: |
|
| i)
In case of individuals, the account holder or sub-account holder and/or the
person whose securities are in group |
|
| and
their registration details are uploaded as per the Regulations, shall
authenticate his identity by showing |
|
| his
original national Identity Card (NIC) 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 the meeting. |
|
|
| B.
For Appointing Proxies: |
|
| i)
In case of individuals, the account holder or sub-account holder and/or the
person whose securities are in group |
|
| account
and their registration details are uploaded as per the Regulations, shall
submit the proxy form as |
|
| per
the above requirement. |
|
|
| ii)
The proxy form shall be witnessed by two persons whose names, addresses and
NIC numbers shall be |
|
| mentioned
on the form. |
|
|
| iii)
Attested copies on NIC or the passport of the beneficial owners and the proxy
shall be furnished with the proxy |
|
| form. |
|
|
| iv)
The proxy shall produce his original NIC or original passport at the time of
the meeting. |
|
|
| v)
In case of corporate entity, the Board of Directors' resolution/power of
attorney with specimen signature shall |
|
| be
submitted (unless it has been provided earlier) along with proxy form to the
Company. |
|
|
|
| DIRECTORS'
REPORT |
|
|
| The
Directors have pleasure in presenting their Annual Report together with the
Company's |
|
| Audited
Accounts for the year ended 30th September 2000. |
|
|
| The
year 1999-2000 is HISTORICAL YEAR for your Company. By the Grace of Allah we
have |
|
| crossed
another milestone towards our goal of long lasting sustainability, as
Distillery Project has |
|
| not
only been fully implemented but also did Trial Run satisfactorily. |
|
|
| As
reported in our last report Sugar Cane Crop has performed very badly.
Consequently not only |
|
| capacity
utilization has decreased considerably, but also cost of cane increased
tremendously which |
|
| has
decreased Gross Profit from Rs. 164.95 million to Rs. 111.34 million.
However, by good planning |
|
| and
timely decision by your management and good price of sugar your company
managed to earn |
|
| Rs.
34.54 million as Profit on Trading which in turn enabled the company to
maintain reasonable |
|
| level
of Profitability. |
|
|
| Summary
of operating results is given as under:- |
|
|
|
2000 |
|
1999 |
|
|
| Net
Profit before taxation |
|
Rs. |
71,388,533 |
Rs. |
88,212,204 |
|
| Provision
for taxation |
|
Rs. |
24,695,762 |
Rs. |
29,166,340 |
|
|
|
|
| Profit
after taxation |
|
Rs. |
46,692,771 |
Rs. |
59,045,864 |
|
| Prior
year adjustment |
|
|
-- |
Rs. |
-- |
|
| Un-appropriated
profit brought forward |
Rs. |
3,583,728 |
Rs. |
581,314 |
|
|
|
|
| Profit
available for appropriation |
Rs. |
50,276,499 |
Rs. |
59,627,178 |
|
| Appropriations: |
|
|
|
| Transfer
to General Reserve |
|
Rs. |
20,000,000 |
Rs. |
30,000,000 |
|
| Proposed
Dividend @ 15% (1999: 15%) |
Rs. |
26,043,450 |
Rs. |
26,043,450 |
|
|
|
|
| Un-appropriated
profit carried forward |
Rs. |
46,043,450 |
Rs. |
56,043,450 |
|
|
Rs. |
4,233,049 |
Rs. |
3,583,728 |
|
|
| Season
Started on |
|
01-11-1999 |
|
04-11-1998 |
|
| Season
closed on |
|
02-03-2000 |
|
15-04-1999 |
|
| Days worked |
|
123 |
|
163 |
|
| Cane
Crushed (Tons) |
|
502,332 |
|
709,501 |
|
| Sugar
Recovery (%) |
|
9.47 |
|
9.08 |
|
| Sugar
Production (Tons) |
|
47,469 |
|
64,421 |
|
|
| CREDIT
RATING |
|
| The
Pakistan Credit Rating Agency (Pvt.) Limited (PACRA) has assigned the Long
Term Rating |
|
| of
A - (A minus) and Short Term Rating of A2 (single A two). |
|
|
| FUTURE
OUT LOOK |
|
| The
Crushing campaign for the crushing year 2000 - 2001 commenced on 3rd
November, 2000 and |
|
| till
26th January 2001 total 314,966 Mt.'s oŁ Cane Crushed with Average Recovery
of 9.00%. |
|
| However,
due to following factors it is expected that once again Sugar Cane
availability will be |
|
| very
difficult and your mill will not get sufficient Sugar Cane for Crushing
during the Current |
|
| Season: |
|
|
| 1.
Insufficient Monsoon/Winter Rains |
|
|
| 2.
Shortage of Irrigation Water |
|
|
| 3.
Old variety of Sugarcane Seed, which need immediate replacement, as it has
already |
|
| lost
its potential as far as Yield and Recovery, is concerned. |
|
|
| Therefore
Sugar Cane shortage is the highest challenge for Sugar Industry in Pakistan
generally |
|
| and
Province oŁ Sindh Particularly. As Sindh has suffered a lot due to shortage
o~ Irrigation Water |
|
| and
on the top of that almost there was no Rain either in Monsoon or in winter.
However, your |
|
| Management
fully appreciates Government's decision to allow Sugar Industry to import
500,000 |
|
| Mt.'s
of Raw Sugar without payment of custom duty. We think it will greatly help
the country |
|
| to
reduce its dependence on Imported Refined Sugar and also help country to
utilize Manufacturing |
|
| Capacity
of Sugar Industry at maximum level. We also like to point out that despite of
fact that |
|
| Sugar
Industry is trying its best to use its Production Capacity at Maximum Level
by Refining |
|
| Imported
Raw Sugar, Government is still continuing with policy of Import of Refined
Sugar of low |
|
| quality
at very low rate of custom duty. |
|
|
| DISTILLERY
PLANT |
|
| As
stated earlier this Plant will go a long way in achieving stability and
sustainability. |
|
| With
the help of Allah we have already entered into International Market, which
will make very |
|
| significant
contribution towards Government efforts to achieve US$ 10 Billion Export
Target for |
|
| the
year 2000-2001. |
|
|
| PATTERN
OF SHARE HOLDING |
|
| The
pattern of share holding is provided on page No.6. |
|
|
| AUDITORS |
|
| Messers.
Haroon Zakaria & Company, Chartered Accountants, retiring auditors of the
Company |
|
| offer
themselves for re-appointment for the year 2000-2001. |
|
|
| At
the end the management record appreciation to all Workers and Non-management
Staff, Banks |
|
| and
Financial Institutions for their Co-operation and contribution towards the
betterment of the |
|
| company. |
|
|
|
For and on behalf of Board of Directors |
|
|
of |
|
|
AL-ABBAS SUGAR MILLS LIMITED |
|
|
|
SHUNAID QURESHI |
|
| Karachi:
the 29th January, 2001 |
|
Chief Executive |
|
|
|
| PATTERN
OF SHARE HOLDING |
|
| AS
AT SEPTEMBER 30, 2000 |
|
|
|
| NUMBER OF |
|
SHARE
HOLDINGS |
TOTAL |
|
| SHARE
HOLDERS |
From |
To |
SHARES HELD |
|
| 370 |
|
1 |
100 |
36,900 |
|
| 1865 |
|
101 |
500 |
883,100 |
|
| 101 |
|
501 |
1,000 |
98,700 |
|
| 126 |
|
1,001 |
5,000 |
333,100 |
|
| 22 |
|
5,001 |
10,000 |
167,000 |
|
| 8 |
|
10,001 |
15,000 |
100,600 |
|
| 8 |
|
15,001 |
20,000 |
151,700 |
|
| 5 |
|
20,001 |
25,000 |
122,900 |
|
| 5 |
|
25,001 |
35,000 |
164,600 |
|
| 2 |
|
35,001 |
45,000 |
86,400 |
|
| 2 |
|
45,001 |
50,000 |
97,900 |
|
| 1 |
|
50,001 |
55,000 |
50,100 |
|
| 3 |
|
55,001 |
60,000 |
169,900 |
|
| 1 |
|
60,001 |
70,000 |
68,000 |
|
| 2 |
|
70,001 |
85,000 |
167,000 |
|
| 2 |
|
85,001 |
100,000 |
199,300 |
|
| 1 |
|
100,001 |
105,000 |
104,000 |
|
| 2 |
|
105,001 |
135,000 |
241,500 |
|
| 6 |
|
135,001 |
1,045,000 |
3,342,632 |
|
| 3 |
|
1,045,001 |
1,400,000 |
3,721,436 |
|
| 2 |
|
1,400,001 |
2,550,000 |
4,158,232 |
|
| 1 |
|
2,550,001 |
2,900,000 |
2,897,300 |
|
| ----------- |
----------- |
----------- |
----------- |
----------- |
|
| 2,538 |
|
17,362,300 |
|
| ========== |
========== |
========== |
========== |
========== |
|
|
|
| Categories
of Shareholders |
|
Numbers |
Shares held |
Percentage |
|
| Individuals |
|
2,510 |
11,525,100 |
66.38 |
|
| Insurance
Companies |
|
1 |
1,500 |
0.01 |
|
| Investment
Companies |
|
1 |
650,000 |
3.74 |
|
| Joint
Stock Companies |
|
18 |
2,121,200 |
12.22 |
|
| Financial
Institutions |
|
7 |
2,964,500 |
17.07 |
|
| Charitable
Trust |
|
1 |
100,000 |
0.58 |
|
|
----------- |
----------- |
----------- |
|
| Total |
|
2,538 |
17,362,300 |
100.00 |
|
|
========== |
========== |
========== |
|
|
|
|
|
| AUDITORS'
REPORT |
|
|
| We
have audited the annexed balance sheet of MESSRS. AL-ABBAS SUGAR MILLS
LIMITED |
|
| as
at September 30, 2000, and the related profit & loss account, cash flow
statements and |
|
| statement
of changes in equity together with 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. |
|
|
| It
is the responsibility of the Company's management to establish and maintain a
system of |
|
| internal
control, and prepare and present the above said statements in conformity with
the |
|
| approved
accounting standards and the requirements of the Companies Ordinance, 1984.
Our |
|
| responsibility
is to express an opinion on these statements based on our audit. |
|
|
| We
conducted our audit in accordance with the auditing standards as applicable
in Pakistan. |
|
| These
standards require that we plan and perform the audit to obtain reasonable
assurance |
|
| about
whether the above said statements are free of any material misstatement. An
audit |
|
| includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the |
|
| above
said statements. An audit also includes assessing the accounting policies and
significant |
|
| estimates
made by management, as well as, evaluating the overall presentation of the
above |
|
| said
statements. We believe that our audit provides a reasonable basis for our
opinion and, after |
|
| due
verification, we report that: |
|
|
| (a)
in our opinion, proper books of accounts have been kept by the company as
required by |
|
| the
Companies Ordinance, 1984; |
|
|
| (b)
in our opinion: |
|
|
| (i)
the balance sheet and profit & loss account together with the notes
thereon have |
|
| been
drawn up in conformity with 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 & loss account, cash flow statement and
statement of changes |
|
| in
equity together with notes forming part thereof conform with approved
accounting |
|
| standards
as applicable in Pakistan, and, 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 September 30, 2000 and of the Profit for
the year |
|
| then
ended; and |
|
|
| (d)
in our opinion no zakat deductible at source under the Zakat and Ushr
Ordinance, 1980 |
|
| (XVIII
of 1980), was deducted by the company and deposited in the Central Zakat Fund |
|
| established
under Section 7 of that Ordinance. |
|
|
|
HAROON ZAKARIA & COMPANY |
|
| Karachi;
29th January, 2001 |
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET AS AT SEPTEMBER 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
NOTES |
Rupees |
Rupees |
|
|
| SHARES
CAPITAL AND RESERVES |
|
| AUTHORISED
CAPITAL |
|
| 17,500,000
Ordinary Shares of Rs. 10/- each |
|
175,000,000 |
175,000,000 |
|
|
========== |
========== |
|
| ISSUED,
SUBSCRIBED AND PAID-UP CAPITAL |
3 |
173,623,000 |
173,623,000 |
|
| GENERAL
RESERVE |
|
4 |
200,000,000 |
180,000,000 |
|
| UN-APPROPRIATED
PROFIT |
|
|
4,233,049 |
3,583,728 |
|
|
|
----------- |
----------- |
|
|
|
377,856,049 |
357,206,728 |
|
| REDEEMABLE
CAPITAL |
|
5 |
94,258,169 |
43,571,037 |
|
| LONG
TERM LOAN |
|
6 |
18,345,846 |
10,295,000 |
|
| DEFERRED
LIABILITIES |
|
7 |
136,209,814 |
118,403,280 |
|
| CURRENT
LIABILITIES |
|
|
|
| Current
Portion of Redeemable Capital |
|
8 |
67,410,399 |
74,975,936 |
|
| Short
Term Finances |
|
9 |
70,000,000 |
20,000,000 |
|
| Creditors,
Accrued & Other Liabilities |
|
10 |
107,752,510 |
71,063,189 |
|
| Provision
for Taxation |
|
12,870,945 |
7,895,072 |
|
| Proposed
Dividend |
|
26,043,450 |
26,043,450 |
|
|
----------- |
----------- |
|
|
284,077,304 |
199,977,647 |
|
| CONTINGENCIES
& COMMITMENTS |
|
11 |
-- |
-- |
|
|
----------- |
----------- |
|
|
910,747,182 |
729,453,692 |
|
|
========== |
========== |
|
|
| TANGIBLE
FIXED ASSETS |
|
| Operating
Fixed Assets |
|
12 |
725,071,535 |
546,335,061 |
|
| Capital
Work-in-Progress |
|
13 |
1,906,673 |
32,986,610 |
|
|
----------- |
----------- |
|
|
726,978,208 |
579,321,671 |
|
|
| LONG
TERM LOANS |
|
14 |
351,240 |
705,756 |
|
| LONG
TERM DEPOSITS |
|
15 |
758,052 |
788,052 |
|
|
| CURRENT
ASSETS |
|
| Stores,
Spares & Loose Tools |
|
16 |
60,188,768 |
51,309,686 |
|
| Stock-in-Trade |
|
17 |
27,048,958 |
8,158,527 |
|
| Trade
Debts (unsecured considered good) |
|
|
20,094,083 |
7,349,970 |
|
| Loans
and Advances |
|
18 |
55,589,422 |
47,326,275 |
|
| Trade
Deposits and Short |
|
|
|
| Term
Pre-Payments |
|
19 |
3,049,325 |
2,527,193 |
|
|
| Other
Receivables |
|
444,501 |
-- |
|
| Income
Tax Refundable |
|
-- |
7,545,003 |
|
| Cash
and Bank Balances |
|
20 |
16,244,625 |
24,421,559 |
|
|
|
----------- |
----------- |
|
|
182,659,682 |
148,638,213 |
|
|
----------- |
----------- |
|
|
910,747,182 |
729,453,692 |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
NOTES |
Rupees |
Rupees |
|
| SALES |
|
21 |
819,716,992 |
1,047,751,859 |
|
| COST
OF GOODS SOLD |
|
22 |
708,377,152 |
882,799,592 |
|
|
----------- |
----------- |
|
| GROSS PROFIT |
|
111,339,840 |
164,952,267 |
|
| OPERATING
EXPENSES |
|
| Administrative |
|
23 |
23,264,339 |
16,979,235 |
|
| Selling
and Distribution |
|
24 |
1,043,034 |
15,165,078 |
|
|
|
----------- |
----------- |
|
|
|
24,307,373 |
32,144,313 |
|
|
|
|
|
| OPERATING
PROFIT |
|
|
87,032,467 |
132,807,954 |
|
| OTHER
INCOME |
|
25 |
36,800,642 |
1,963,195 |
|
|
----------- |
----------- |
|
|
123,833,109 |
134,771,149 |
|
|
| FINANCIAL
CHARGES |
|
26 |
48,687,285 |
41,916,197 |
|
| OTHER
CHARGES |
|
27 |
3,757,291 |
4,642,748 |
|
|
|
----------- |
----------- |
|
|
|
52,444,576 |
46,558,945 |
|
|
|
----------- |
----------- |
|
| PROFIT
BEFORE TAXATION |
|
|
71,388,533 |
88,212,204 |
|
| TAXATION |
|
29 |
24,695,762 |
29,166,340 |
|
|
----------- |
----------- |
|
| PROFIT
AFTER TAXATION |
|
46,692,771 |
59,045,864 |
|
| UN-APPROPRIATED
PROFIT BROUGHT FORWARD |
|
3,583,728 |
581,314 |
|
|
----------- |
----------- |
|
| PROFIT
AVAILABLE FOR APPROPRIATION |
|
50,276,499 |
59,627,178 |
|
| APPROPRIATIONS |
|
| Transfer
to General Reserve |
|
20,000,000 |
30,000,000 |
|
| Proposed
Dividend @ 15% (1999: 15%) |
|
26,043,450 |
26,043,450 |
|
|
----------- |
----------- |
|
|
46,043,450 |
56,043,450 |
|
|
----------- |
----------- |
|
| UN-APPROPRIATED
PROFIT CARRIED FORWARD |
|
4,233,049 |
3,583,728 |
|
|
========== |
========== |
|
| Earning
per share |
|
31 |
2.69 |
3.40 |
|
|
| The
annexed notes form an integral part of these notes. |
|
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 2000 |
|
|
|
2000 |
1999 |
|
|
Rupees |
Rupees |
|
| A.
CASH FROM OPERATING ACTIVITIES |
|
| Cash generated from operation |
(Note 30) |
|
123,265,605 |
283,509,944 |
|
|
| Financial
charges paid |
|
(27,394,306) |
(49,078,679) |
|
| Tax paid |
|
(5,047,949) |
(2,124,495) |
|
|
----------- |
----------- |
|
|
(32,442,255) |
(51,203,174) |
|
|
----------- |
----------- |
|
| Net
cash from operating activities |
|
90,823,350 |
232,306,770 |
|
|
========== |
========== |
|
