| Data Agro Limited |
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| Annual
Report 2000 |
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| CONTENTS |
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| Company
Information |
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| Notice
of Meeting |
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| Directors'
Report |
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| Auditors'
Report |
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| Balance Sheet |
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| Profit
& Loss Account |
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| Cash
Flow Statement |
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| Notes
to the Accounts |
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| Pattern
of Share Holding |
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|
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| COMPANY
INFORMATION |
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| Chief Executive: |
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Mr. Faaiz Rahim Khan |
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| Directors: |
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Mr. Umar Sadik |
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Mr. Shamim Ahmad Khan |
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Mr. Ayub Khan |
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Mr. Asif Rahim Khan |
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|
Mrs. Badar Hussain |
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|
Mr. Sohail Ahmad Khan |
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| Company
Secretary: |
Mr. Muhammad Azam |
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| Auditors: |
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M/s Mansha Mohsin Dossani
Khan & Co. |
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|
Chartered Accountants |
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|
3rd, Floor Sharjah
Centre, |
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|
62-Shadman Market,
Lahore. |
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| Bankers: |
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Al-Baraka Islamic |
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|
|
Bank B.S.C. (EC.) |
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|
|
Habib Bank Limited |
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|
|
Allied Bank of Pakistan
Limited |
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|
The Bank of Punjab |
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|
Muslim Commercial Bank
Ltd. |
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|
Gulf Commercial Bank Ltd. |
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| Legal Advisor: |
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Ashtar Ali &
Associates |
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| Registered
Office: |
3-A, Race View, Jail
Road, |
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|
Lahore. |
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| Factory: |
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Khanewal-Kabirwala Road, |
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District Khanewal. |
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| NOTICE
OF ANNUAL GENERAL MEETING |
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| Notice
is hereby given that the 8th Annual General Meeting of Shareholders of Data |
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| Agro
Limited will be held on Saturday December 23, 2000 at 2.00 P.M. at the |
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| Registered
Office of the company at 3-A, Race View, Jail Road, Lahore to transact |
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| the
following business: |
|
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| 1.
To confirm the minutes of the 7th Annual General Meeting held on December 30,
1999. |
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| |
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| 2.
To receive and adopt the Audited 'Accounts of the company alongwith Directors
and |
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| Auditors
reports thereon, for the year ended June 30, 2000. |
|
|
| 3.
To appoint Auditors of the company for the year ended June 30, 2001 and to
fix their |
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| remuneration.
The retiring Auditors M/s Mansha Mohsin Dossani Khan & Company |
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| (Chartered
Accountants), being eligible have offered themselves for reappointment. |
|
|
| 4.
Any other business with the permission of the chair. |
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|
| The
Share Transfer Books of the Company will remain close form December 21, 2000 |
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| to
December 27, 2000 ( both days inclusive ). |
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|
BY ORDER OF THE BOARD |
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| Lahore |
|
(MUHAMMAD AZAM) |
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| November
29, 2000. |
|
Company Secretary |
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| NOTES: |
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| (a)
A member entitled to attend and vote at the above meeting may appoint another
as |
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| proxy.
Proxies in order to be effective must be received at the Registered Office of
the |
|
| Company
not later than forty eight hours before the time of meeting must be duly |
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| stamped,
signed and witnessed. |
|
|
| (B)
Members are requested to notify the Company of any change in their addresses. |
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| DIRECTOR'S
REPORT |
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| The
Directors of your company are pleased to present the 8th annual report
alongwith the audited accounts for |
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| the
year ended June 30,2000. |
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|
| Performance
Review |
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| In
this year your company has processed seeds of cotton, wheat, paddy etc. There
is considerable increase |
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| in
the capacity utilization as compared to last year. |
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|
|
|
|
2000 |
1999 |
|
|
|
|
(M. Ton) |
(M. Ton) |
|
|
| Production |
|
|
1,760 |
1,160 |
|
|
| Financial
Results |
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| The
summary of the financial results is being furnished hereunder for a quick
glance. |
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|
|
|
2000 |
1999 |
|
|
|
|
(Rupees) |
(Rupees) |
|
|
| Sales |
|
|
26,962,828 |
30,053,426 |
|
| Cost of Sale |
|
|
26,450,405 |
40,392,134 |
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|
|
|
------------------ |
------------------ |
|
| Gross
Profit / (loss) |
|
|
512,423 |
(10,338,708) |
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|
|
|
|
|
|
| Less: |
|
|
|
|
| Operating
Expenses |
|
|
5,747,301 |
6,100,636 |
|
| Financial
& Other Charges |
|
|
3,021,821 |
9,089,283 |
|
| Other Income |
|
|
2,158,794 |
1,047,642 |
|
| Taxation |
|
|
178,421 |
50,089 |
|
|
|
|
------------------ |
------------------ |
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| Loss
after taxation |
|
|
6,276,326 |
24,531,074 |
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|
========== |
========== |
|
|
| The
company suffered a Net Loss of Rs. 6.276 million (1999: Loss Rs. 24.531
million). Due to the efforts of your |
|
| management,
the loss for the year has been decreased by Rs. 18.255 million (which is 3
time less as compared |
|
| to
last year), in spite of decrease in the overall sales. We continued to make
progress in our diversification policy |
|
| in
terms of crops. Another positive aspect has been controlling total debts by
inducting Rs. 28.879 million from |
|
| directors
as loan, which is primarily interest free. Your company has repaid debts of
Rs. 35.698 million during the |
|
| period
due to which there is a saving of Rs. 6.07 million in form of financial
costs, as compared to last year. |
|
|
| Earning
per share |
|
| Earning
per share of Rs. 10/-each is Rs. -1.57 as compared to Rs. -6.13 last year. |
|
|
| Auditors Report |
|
| The
auditors in their report have drawn attention to the factors that raises
doubt regarding company's ability to |
|
| continue
as a going concern. The steps taken by the management to keep successful
operation of the company |
|
| have
been clearly stated above. The board of director's are determined to keep
your company a going concern |
|
| and
make it very profitable in the near future with low debt and diversification
in sales. |
|
|
| Keeping
this in view the management has raised addition of funding of Rs. 28.879
million (interest free director |
|
| loan),
These funds have been utilized in retirement of interest bearing debts, and
saved an amount of Rs. 6.07 |
|
| million
in financial costs as compared to last year. |
|
|
| Auditors |
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| The
present auditors Messrs. Mansha Mohsin Dossani Khan & Company, Chartered
Accountants, retire and |
|
| being
eligible, offer themselves for reappointment. |
|
|
| Pattern
of Shareholding |
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| A
statement showing pattern of shareholdings in the company is attached. |
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|
| Acknowledgment |
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| We
would like to thank our customers, bankers and devoted staff for their valued
support and continued |
|
| patronage.
I feel confident that future of your company is bright and is in safe hands.
May Allah bless the |
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| management
and staff of your company to fell up to your expectations. |
|
|
| Place: Lahore. |
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|
FAAIZ RAHIM KHAN |
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| November
23, 2000 |
|
Chief Executive |
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|
|
| AUDITOR'S
REPORT TO THE MEMBERS |
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| We
have audited the annexed balance sheet of DATA AGRO LIMITED as at June 30, 2000 |
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| and
the related profit and loss account, cash flow statement and statement of
changes in |
|
| equity
together with the notes forming part thereof, for the year then ended and we
state that |
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| we
have obtained all the information and explanations which, to the best of our
knowledge. |
|
| and
belief, were necessary for the purpose of our audit. |
|
|
| It
is the responsibility of the company' s management to establish and maintain
a system of |
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| internal
control, prepare and present the above said statements in conformity with the |
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| approved
accounting standards and the requirements of the Companies Ordinance, 1984. |
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| Our
responsibility is to express an opinion on these statements based on our
audit. |
|
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| We
conduct our audit in accordance with the auditing standards as applicable in
Pakistan. |
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| These
standards require that we plan and perform the audit to obtain reasonable
assurance |
|
| about
whatever the above said statements are free of any material misstatement. An
audit |
|
| includes
examining on test basis, evidence supporting the amount and disclosures in
the |
|
| above
said statement, 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 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
polices 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, cash flow statement and |
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| statement
of changes in equity together with the notes forming part thereof conform |
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| 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 |
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| June
30, 2000 and of the loss, its cash flows and changes in equity for the year
then |
|
| ended; and |
|
|
| d.
in our opinion, no Zakat was deductible at source under the Zakat and Usher |
|
| Ordinance, 1980 |
|
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| Without
qualifying our opinion we draw attention to note 2.1 to the accounts which |
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| states
factors that raise doubt regarding the company's ability to continue as a |
|
| "Going
Concern" |
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|
| Place: Lahore. |
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|
MANSHA MOHSIN DOSSANI KHAN & CO. |
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| Date:
November 23, 2000 |
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|
(Chartered Accountants) |
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|
|
| BALANCE
SHEET AS AT JUNE 30, 2000 |
|
|
| CAPITAL
& LIABILITIES |
|
Note |
2000 |
1999 |
|
|
|
|
(Rs.) |
(Rs.) |
|
| SHARE
CAPITAL & RESERVES |
|
| Authorized
capital |
|
| 5,000,000
ordinary shares of Rs. 10 each |
|
50,000,000 |
50,000,000 |
|
|
========== |
========== |
|
|
| Issued,
subscribed and paid up capital |
|
| 4,000,000
ordinary shares of Rs. 10 each fully |
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| paid in cash |
|
|
40,000,000 |
40,000,000 |
|
| Accumulated
profit/(loss) |
|
|
(65,748,941) |
(59,472,615) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(25,748,941) |
(19,472,615) |
|
| SURPLUS
ON REVALUATION |
|
|
|
|
| OF
FIXED ASSETS |
|
3 |
32,959,224 |
32,959,224 |
|
|
|
|
|
|
| REDEEMABLE
CAPITAL |
|
4 |
15,500,332 |
30,167,254 |
|
| LONG
TERM LOANS |
|
5 |
28,878,943 |
-- |
|
| LIABILITIES
AGAINST ASSETS |
|
|
|
| SUBJECT
TO FINANCE LEASE |
|
6 |
1,520,120 |
3,420,356 |
|
|
| CURRENT
LIABILITIES |
|
| Short
term running finance |
|
|
-- |
4,382,042 |
|
| Current
portion of redeemable capital |
7 |
6,000,000 |
27,030,906 |
|
| Current
portion of liabilities against assets |
|
|
|
| subject
to finance lease |
|
|
2,375,147 |
1,899,644 |
|
| Advances
and deposits |
|
8 |
2,123,109 |
3,403,319 |
|
| Creditors,
accrued and other liabilities |
9 |
3,182,499 |
4,865,639 |
|
| Provision
for Taxation |
|
|
134,814 |
50,089 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
13,815,569 |
41,631,639 |
|
| CONTINGENCIES
AND COMMITMENTS |
10 |
-- |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
66,925,247 |
88,705,858 |
|
|
|
|
========== |
========== |
|
|
|
|
| FIXED
CAPITAL EXPENDITURES |
|
| Operating
fixed assets - tangible |
|
11 |
58,525,008 |
72,879,173 |
|
| Assets
subject to finance lease |
|
12 |
4,908,160 |
6,135,200 |
|
|
|
|
|
|
| DEFERRED
COSTS |
|
13 |
-- |
-- |
|
|
|
| CURRENT
ASSETS |
|
| Stores,
spares and loose tools |
|
14 |
1,409,418 |
1,600,500 |
|
| Stock in trade |
|
15 |
72,078 |
2,084,418 |
|
| Trade debtors |
|
16 |
1,255,443 |
4,150,953 |
|
| Advances,
deposits, prepayments |
|
|
| and
other receivables |
|
17 |
656,495 |
1,544,081 |
|
| Cash
and bank balances |
|
18 |
98,645 |
311,533 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
3,492,079 |
9,691,485 |
|
|
|
|
------------------ |
------------------ |
|
|
|
66,925,247 |
88,705,858 |
|
|
|
|
========== |
========== |
|
|
|
|
| The
annexed notes form an integral part of these accounts |
|
|
|
(FAAIZ RAHIM KHAN) |
|
(ASIF RAHIM KHAN) |
|
|
Chief Executive |
|
Director |
|
|
|
| PROFIT
& LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
|
Note |
2000 |
1999 |
|
|
|
(Rs.) |
(Rs.) |
|
|
|
|
| SALES |
|
19 |
26,962,828 |
30,053,426 |
|
| COST
OF SALES |
|
20 |
26,450,405 |
40,392,134 |
|
|
|
|
------------------ |
------------------ |
|
| Gross
Profit/(loss) |
|
|
512,423 |
(10,338,708) |
|
|
| OPERATING
EXPENSES |
|
|
|
| Administrative |
|
21 |
2,752,671 |
3,553,567 |
|
| Selling
& distribution |
|
22 |
2,994,630 |
2,547,069 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
5,747,301 |
6,100,636 |
|
|
|
|
------------------ |
------------------ |
|
| Operating
profit/(loss) |
|
|
(5,234,878) |
(16,439,344) |
|
| Financial
and other charges |
|
23 |
3,021,821 |
9,089,283 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(8,256,699) |
(25,528,627) |
|
|
|
|
|
|
| Other income |
|
24 |
2,158,794 |
1,047,642 |
|
|
|
|
------------------ |
------------------ |
|
| Profit
/ (loss) for the year before Taxation |
|
(6,097,905) |
(24,480,985) |
|
|
| Taxation |
|
25 |
(178,421) |
(50,089) |
|
|
|
|
------------------ |
------------------ |
|
| Profit
/ (loss) after Taxation |
|
|
(6,276,326) |
(24,531,074) |
|
|
| Unappropriated
Profit / (loss) brought forward |
|
(59,472,615) |
(34,941,541) |
|
|
|
|
------------------ |
------------------ |
|
| Unappropriated
Profit / (loss) carried forward |
|
(65,748,941) |
(59,472,615) |
|
|
|
|
========== |
========== |
|
| Earning/(loss)
per share |
|
28 |
(1.57) |
(6.13) |
|
|
| The
annexed notes form an integral part of these accounts |
|
|
|
(FAAIZ RAHIM KHAN) |
|
|
(ASIF RAHIM KHAN) |
|
|
Chief Executive |
|
|
Director |
|
|
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
|
|
|
2000 |
1999 |
|
|
|
(Rs.) |
(Rs.) |
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| Profit/(loss)
before tax |
|
|
(6,097,905) |
(24,480,985) |
|
| Adjustment for: |
|
|
|
|
| Depreciation |
|
|
7,329,319 |
8,462,484 |
|
| Amortization
of deferred costs |
|
|
-- |
291,832 |
|
| Profit
on disposal of fixed assets |
|
|
(108,480) |
(57,628) |
|
| Profit
on foreign exchange |
|
|
(163) |
(977) |
|
| Financial
charges |
|
|
3,021,821 |
9,089,283 |
|
|
|
|
------------------ |
------------------ |
|
| Operating
Profit before working capital changes |
|
4,144,592 |
(6,695,991) |
|
|
| (Increase)/decrease
in current assets |
|
| Stores,
spares and loose tools |
|
|
191,082 |
(393,053) |
|
| Stock in trade |
|
|
2,012,340 |
9,688,065 |
|
| Trade debtors |
|
|
2,895,510 |
1,619,257 |
|
| Advances,
deposits, prepayments and other receivables |
1,062,436 |
630,738 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
6,161,368 |
11,545,007 |
|
|
|
|
|
|
| Increase/(decrease)
in current liabilities |
|
|
|
| Advances
from customers |
|
|
(1,280,210) |
3,191,666 |
|
| Creditors,
accrued and other liabilities |
|
(574,127) |
1,327,589 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(1,854 337) |
4,519,255 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
|
| Cash
generated from / (utilized in) operation |
|
8,451,623 |
9,368,271 |
|
| Financial
charges paid |
|
|
(2,689,760) |
(4,668,382) |
|
| Profit
on foreign exchange |
|
|
163 |
977 |
|
| Income Tax paid |
|
|
(266,963) |
(12,290) |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash from/(used in) operating activities |
|
5,495,063 |
(4,688,576) |
|
|
|
|
|
| CASH
FLOW FORM INVESTING ACTIVITIES |
|
| Purchase
of fixed assets |
|
|
(21,900) |
(162,740) |
|
| Capital
work in progress |
|
|
7,782,266 |
-- |
|
| Sale
proceed of fixed assets |
|
|
600,000 |
137,500 |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash from / (used in) investing activities |
|
8,360,366 |
(25,240) |
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
|
|
| Repayment
of redeemable capital |
|
|
(37,140,485) |
(3,221,965) |
|
| Repayment
of finance lease liability |
|
(1,424,733) |
(2,280,000) |
|
| Repayment
of short-term running finance |
|
(1,700,000) |
(780,000) |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash from/(used in) financing activities |
|
(11,386,275) |
(6,281,965) |
|
|
------------------ |
------------------ |
|
|
| Net
Increase / (Decrease) In Cash And Cash Equivalent |
2,469,154 |
(1,618,629) |
|
| Cash
and Cash Equivalent at the Beginning of the period |
(2,370,509) |
(751,880) |
|
|
|
|
------------------ |
------------------ |
|
| Cash
and Cash Equivalent at the end of the period |
|
98,645 |
(2,370,509) |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
| Cash in hand |
|
|
68,866 |
36,771 |
|
| Cash at Bank:- |
|
|
|
|
| Current
/ foreign Accounts: |
|
|
|
|
| Debit |
|
|
29,779 |
274,762 |
|
| Credit |
|
|
-- |
(2,682,042) |
|
|
|
|
------------------ |
------------------ |
|
|
|
29,779 |
(2,407,280) |
|
|
|
------------------ |
------------------ |
|
|
|
|
98,645 |
(2,370,509) |
|
|
========== |
========== |
|
|
|
(FAAIZ RAHIM KHAN) |
|
|
(ASIF RAHIM KHAN) |
|
|
Chief Executive |
|
|
Director |
|
|
|
| NOTES
TO THE ACCOUNTS |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
| 1.
STATUS AND OPERATION |
|
| DATA
AGRO LIMITED was initially incorporated as a private limited company on
November |
|
| 10,
1992 and converted into a public limited company on March 06, 1994. The
company is |
|
| Listed
on Lahore and Karachi stock exchanges. The main activity of the company is |
|
| Production
and processing of agro seeds. |
|
|
| 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
|
|
| 2.1
The company has recorded a loss of Rs. 6.276 million after taxation,
accumulated losses of |
|
| Rs.
65.749 million and reported negative working capital of Rs. 10.324 million
i.e. excess of |
|
| current
liabilities over current assets. These factors creates substantial doubts as
to ability of |
|
| the
company to continue as a going concern. However, these accounts have been
prepared |
|
| on
going concern basis and without any adjustments relating to realization of
company' s |
|
| assets
and liquidation of its liabilities. The validity of these accounts largely
depends on |
|
| management's
future plans, favorable market conditions and continue financial support from |
|
| sponsors
and company bankers. |
|
|
| 2.2
Accounting convention |
|
| The
accounts have been prepared under the historical cost convention except to
the extent |
|
| that
certain fixed assets have been included at revalued amount. |
|
|
| 2.3
Staff retirement benefits |
|
| The
company operates an unfunded gratuity scheme. No provision for gratuity has
been |
|
| made
in these accounts as it is accounted for on payment basis. |
|
|
| 2.4
Tangible fixed assets and depreciation |
|
|
|
| a) Owned assets |
|
| These
are stated at cost or revaluation less accumulated depreciation except land
and |
|
| capital
work in progress which are stated at cost or revaluation. |
|
|
| Depreciation
is charged using diminishing balance method whereby the cost or revaluation |
|
| of
an asset is written off over its estimated useful life. |
|
|
| Full
years depreciation is charge in the year of addition while no depreciation is
charged is |
|
| the year of sale. |
|
|
| Minor
renewals or replacements are charged to the income of the year and major
renew |
|
| and
improvements are capitalized. |
|
|
| Gain
or loss on disposal of assets are included in current income. |
|
|
| b)
Assets subject to finance lease |
|
| Assets
subject to finance lease are stated at the lower of present value of minimum
lease |
|
| payments
at the inception of the lease and their fair value at that date. The
outstanding |
|
| obligations
under the lease financial charges allocated to future periods are accounted |
|
| for
as liabilities. Related financial expenses are charged to the profit and loss
account. |
|
| Assets
subject to finance lease are depreciated over the useful life of the assets
on a |
|
| reducing
balance method at the rates given in Note.12. Depreciation of leased assets
is |
|
