| Essa Cement Industries Limited |
|
|
|
|
|
|
|
|
| Annual
Report 2000 |
|
|
| CONTENTS |
|
|
| Company
Information |
|
| Notice
of Meeting |
|
| Directors'
Report to the Members |
|
| Financial
Highlights |
|
| Pattern
of Share Holding |
|
| Auditors'
Report to the Members |
|
| Balance Sheet |
|
|
| Profit
and Loss Account |
|
| Cash
Flow Statement |
|
| Notes
to the Accounts |
|
|
|
| COMPANY
INFORMATION |
|
|
| BOARD
OF DIRECTORS |
CHAIRMAN & CHIEF
EXECUTIVE |
|
| MR.
ABDUL AZIZ ESSA |
|
| MRS.
HUMERA ESSA |
|
| MRS.
JAMILA YOUNUS DADA |
|
| MRS.
ZAITOON HAMZA DADA |
|
| MRS.
SAZINA JAWED ESSA |
|
| MR.
IRFAN AZIZ ESSA |
|
| MR.
ZAFARUDDIN SIDDIQUI |
|
|
| COMPANY
SECRETARY |
|
| MR.
ABDUL HAMEED |
|
|
| AUDITORS |
|
| F.R.
MERCHANT & CO, |
|
| CHARTERED
ACCOUNTANTS |
|
|
| BANKERS |
|
| HABIB
BANK LIMITED |
|
| NATIONAL
BANK OF PAKISTAN |
|
| MUSLIM
COMMERCIAL BANK LIMITED |
|
| ANZ
GRINDLAYS BANK |
|
| ALLIED
BANK OF PAKISTAN LIMITED |
|
| BOLAN
BANK LIMITED |
|
| SONERI
BANK LIMITED |
|
| BANK
AL HABIB LIMITED |
|
| FAYSAL
BANK LIMITED |
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| THE
BANK OF PUNJAB |
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|
| REGISTERED
OFFICE |
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| FL-2/1,
BLOCK-6, |
|
| GULSHAN-E-IQBAL, |
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| KARACHI-
75300 |
|
|
| FACTORY |
|
| DEH
KALO KOHAR |
|
| NOORIABAD
INDUSTRIAL AREA, |
|
| DISTRICT
DADU, (SINDH) |
|
|
|
| NOTICE
OF MEETING |
|
|
| NOTICE
IS HEREBY GIVEN that Annual General Meeting of the Company will be held on
Friday, |
|
| March
30, 2001 at 6.30 p.m. at the Registered Office of the Company at FL-2/1,
Block-6, |
|
| Gulshan-e-lqbal,
Karachi, to transact the following business: |
|
|
| 1)
To confirm the minutes of the last Annual General Meeting. |
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|
|
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| 2)
To receive and consider the Audited Accounts of the company for the year
ended |
|
| June
30, 2000 with the Directors' and the Auditors' Reports thereon. |
|
|
| 3)
To appoint Auditors for the year 2000-2001 and to fix their remuneration. |
|
|
| 4)
To transact any other business with the permission of the Chairman. |
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|
|
By Order of the Board |
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|
ABDUL HAMEED |
|
| KARACHI:
February 28, 2001 |
|
Secretary |
|
|
| NOTES: |
|
|
| 1)
The Share Transfer Books of the Company will remain closed from March 22,
2001 to March |
|
| 30,
2001 (both days inclusive). |
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|
|
|
| 2)
A member entitled to attend and vote at the Annual General Meeting may
appoint |
|
| another
member as the proxy to attend and vote on his/her behalf. Proxies must be
duly |
|
| filled,
signed and deposited at the Registered Office of the Company not less than 48 |
|
| hours
before the time of the meeting. |
|
|
| Shareholders
are requested to promptly notify the Company of any change in their |
|
| addresses,
if any. |
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|
|
|
|
| DIRECTORS'
REPORT TO THE MEMBERS |
|
|
| Your
directors have pleasure in presenting their report alongwith audited accounts
and auditors' |
|
| report
thereon for the year ended June 30, 2000. |
|
|
| PRODUCTION: |
|
| The
production of Clinker and Cement for the period are given as under: |
|
|
|
|
1999-2000 |
1998-99 |
|
|
|
M. Tons |
M. Tons |
|
|
| Clinker |
|
240,860 |
161,451 |
|
| Ordinary
Portland Cement. |
|
224,120 |
139,422 |
|
| Slag Cement |
|
29,190 |
32,440 |
|
| Sulphate
Resistance Cement |
|
6,540 |
6,670 |
|
|
|
|
| SALES
& MARKETING: |
|
| The
company was able to sell 262,766 m.tons of cement during the year ended 30th
June, 2000 |
|
| as
against 174,785 m.tons sold during the preceding year registering an increase
of 50.34% from |
|
| the
previous year. |
|
|
| Gross
Sales Revenue amounted to Rs.941.355 million, out of which Rs. 367.872
million were paid |
|
| to
the government as Excise Duty. Net sales revenue amounted to Rs. 573.483
million. |
|
|
| FINANCIAL
RESULTS: |
|
| Inspite
of lower capacity utilization, sharp increase in price of furnace oil since
August 1999 and |
|
| wide
fluctuation in selling prices, the company managed to earn an operating
profit of Rs. |
|
| 63.068
million as against Rs. 68.452 million earned during the preceding year. Net
profit for the |
|
| year
after prior years adjustments and provision for taxation amounted to Rs.
6.085 million. |
|
|
| PATTERN
OF SHAREHOLDING: |
|
| The
Shareholding Pattern of the company as on June 30, 2000 is included in the
Annual Report. |
|
|
| DEBT
SERVICING: |
|
| Due
to financial constraints, we approached Overseas Credit & Investment Co.
Ltd for |
|
| restructuring
of loans. The matter is in advance stage and we expect that restructuring
will be |
|
| done
in near future. |
|
|
| AUDITORS: |
|
| The
present Auditors M/s. F.R. Merchant & Co., Chartered Accountants, retire
and being eligible |
|
| offer
themselves for reappointment as Auditors of the Company for the year
2000-2001. |
|
|
| BOARD
OF DIRECTORS: |
|
| It
is with profound sorrow, grief and regret that we inform you of the sudden
demise of our |
|
| beloved
director/company secretary Mr. Jawed Aziz Essa (Inna Lillahe Va Inna Elaihe
Rajeoon), |
|
| He
was the pillar of our company, a dynamic entrepreneur and indeed an asset for
us. We all |
|
| pray
from the bottom of our hearts for his success in the hereafter endless life.
It is our obligation |
|
| to
him to follow his policies and fulfill his aims with equal resolve, and also
pledge that we shall |
|
| carry
forward his noble mission in such a way so as to meet his desires and
expectations. |
|
|
| The
vacancy created in the Board of Directors has been filled by Mrs. Sazina
Jawed Essa. |
|
|
| ACKNOWLEDGEMENT: |
|
| The
Board express its thanks for the valuable services, loyality and commendable
efforts |
|
| rendered
by the executives, staff members and workers of the Company, during the year
under |
|
| review,
and wish to place on record its appreciation for the same. |
|
|
|
|
|
|
For and on behalf of the Board |
|
|
|
|
|
|
|
|
|
ABDUL AZIZ ESSA |
|
| KARACHI:
February 28, 2001 |
|
Chairman/Chief Executive |
|
|
|
| FINANCIAL
HIGHLIGHTS |
|
|
|
|
(Figures in
Thousand) |
|
|
|
|
|
|
2000 |
1999 |
1998 |
1997 |
1996 |
1995 |
|
|
|
|
|
|
|
|
|
|
| NET SALES |
|
573,483 |
377,904 |
172,571 |
270,954 |
300,613 |
310,612 |
|
|
|
|
|
| RESULT |
|
|
|
| PROFIT
BEFORE TAX |
9,086 |
50,920 |
(10,143) |
11,918 |
41,614 |
88,845 |
|
| PROFIT
AFTER TAX |
6,086 |
48,920 |
(11,043) |
16,267 |
29,015 |
70,670 |
|
|
|
|
|
| NET
RETURN OF TURNOVER % |
1.06 |
12.94 |
(6,40) |
6.00 |
9.65 |
22.75 |
|
| CURRENT
ASSETS |
203,407 |
281,339 |
229,423 |
188,831 |
184,302 |
156,415 |
|
| CURRENT
LIABILITIES |
184,021 |
281,336 |
254,363 |
171,174 |
127,282 |
90,633 |
|
|
|
|
| CURRENT
RATIO |
|
| ASSETS:
LIABILITIES |
1.11: 1 |
1.00:1 |
0.90:1 |
1.10:1 |
1.45:1 |
1.73:1 |
|
|
|
|
| DISTRIBUTABLE
RESERVES |
194,026 |
222,570 |
173,650 |
216,175 |
228,528 |
199,513 |
|
| SHAREHOLDERS
EQUITY |
574,953 |
568,867 |
519,948 |
530,991 |
514,724 |
342,611 |
|
| NUMBER
OF SHARES |
38,093 |
34,630 |
34,630 |
31,482 |
28,620 |
14,310 |
|
|
|
|
| EARNING
PER SHARE |
|
| OF
RS. 10 EACH |
0.16 |
1.41 |
(0.32) |
0.52 |
1.01 |
4.94 |
|
|
| BREAK-UP
VALUE |
|
| PER SHARE |
RS. |
15.09 |
16.43 |
15.01 |
16.87 |
17.98 |
23.94 |
|
|
|
| PATTERN
OF SHAREHOLDING AS AT JUNE 30, 2000 |
|
|
| SHAREHOLDINGS |
|
SHAREHOLDERS |
|
TOTAL |
|
|
|
|
SHARES HELD |
|
| FROM |
1 |
TO |
100 |
282 |
8,791 |
|
| FROM |
101 |
TO |
500 |
447 |
102,855 |
|
| FROM |
501 |
TO |
1000 |
195 |
132,048 |
|
| FROM |
1001 |
TO |
5000 |
491 |
1,122,007 |
|
| FROM |
5001 |
TO |
10000 |
180 |
1,291,051 |
|
| FROM |
10001 |
TO |
15000 |
270 |
2,905,858 |
|
| FROM |
15001 |
TO |
20000 |
53 |
889,176 |
|
| FROM |
20001 |
TO |
25000 |
321 |
7,046,833 |
|
| FROM |
25001 |
TO |
30000 |
153 |
3,999,380 |
|
| FROM |
30001 |
TO |
35000 |
42 |
1,329,888 |
|
| FROM |
35001 |
TO |
45000 |
1 |
43,560 |
|
| FROM |
45001 |
TO |
50000 |
1 |
45,919 |
|
| FROM |
50001 |
TO |
60000 |
1 |
58,685 |
|
| FROM |
60001 |
TO |
75000 |
2 |
126,082 |
|
| FROM |
75001 |
TO |
130000 |
1 |
77,449 |
|
| FROM |
130001 |
TO |
150000 |
1 |
132,002 |
|
| FROM |
150001 |
TO |
160000 |
2 |
308,568 |
|
| FROM |
160001 |
TO |
170000 |
2 |
354,212 |
|
| FROM |
190001 |
TO |
300000 |
1 |
213,155 |
|
| FROM |
300001 |
TO |
500000 |
1 |
355,678 |
|
| FROM |
500001 |
TO |
900000 |
1 |
812,410 |
|
| FROM |
900001 |
TO |
1025000 |
4 |
3,750,273 |
|
| FROM |
1025001 |
TO |
2000000 |
5 |
6,128,719 |
|
| FROM |
2000001 |
TO |
3000000 |
1 |
2,918,213 |
|
| FROM |
3000001 |
TO |
4000000 |
1 |
3,939,893 |
|
|
------------------ |
------------------ |
|
|
2,459 |
38,092,705 |
|
|
========== |
========== |
|
|
| CATEGORIES
OF SHAREHOLDERS |
NUMBER |
SHARES HELD |
PERCENTAGE |
|
|
|
|
| INDIVIDUALS |
|
2,418 |
35, 717,017 |
93.76 |
|
| INVESTMENT
COMPANIES |
|
28 |
978,312 |
2.57 |
|
| INSURANCE
COMPANIES |
|
4 |
485,163 |
1.27 |
|
| JOINT
STOCK COMPANIES |
|
-- |
-- |
-- |
|
| FINANCIAL
INSTITUTIONS |
|
9 |
912,213 |
2.39 |
|
| CORPORATE
LAW AUTHORITY |
-- |
-- |
-- |
|
| ADMINISTRATOR
ABANDONED |
-- |
-- |
-- |
|
| PROPERTY |
|
-- |
-- |
-- |
|
| CHARITABLE |
|
-- |
-- |
-- |
|
| OTHERS |
|
-- |
-- |
-- |
|
|
|
------------------ |
------------------ |
------------------ |
|
|
|
2,459 |
38,092,705 |
100 |
|
|
|
========== |
========== |
========== |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of ESSA CEMENT INDUSTRIES LIMITED as
at |
|
| June
30, 2000 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 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 |
|
| 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 account have been kept by the company as
required |
|
| by
the Companies Ordnance, 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 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, cash flow statement and |
|
| statement
of changes in equity together with the 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 |
|
| June
30, 2000 and of the Profit, 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 & Ushr
Ordinance, |
|
| 1980. |
|
|
|
|
|
F.R. MERCHANT & CO. |
|
| KARACHI:
February 28, 2001 |
|
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 2000 |
|
|
|
NOTE |
2000 |
1999 |
|
|
|
| SHARE
CAPITAL AND RESERVES |
|
| Authorised |
|
| 50,000,000
ordinary shares of Rs. 10/- each |
|
500,000,000 |
500,000,000 |
|
|
|
|
========== |
========== |
|
| Issued,
subscribed and paid-up capital |
3 |
380,927,050 |
346,297,320 |
|
| Reserves |
|
4 |
194,025,830 |
222,569,927 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
574,952,880 |
568,867,247 |
|
| LONG
TERM LOANS |
|
5 |
664,668,174 |
670,626,419 |
|
| LIABILITIES
AGAINST ASSETS |
|
|
|
| SUBJECT
TO FINANCE LEASE |
|
6 |
9,778,783 |
21,615,696 |
|
|
|
|
|
|
| DEFERRED
LIABILITIES |
|
7 |
10,413,447 |
-- |
|
|
|
| CURRENT
LIABILITIES |
|
|
|
| Current
maturity of long term loans |
5 |
199,022,894 |
152,049,049 |
|
| Current
maturity of liabilities against |
|
|
| assets
subject to finance lease |
|
6 |
19,841,153 |
18,245,171 |
|
| Creditors,
accured and other liabilities |
8 |
166,459,303 |
222,596,328 |
|
| Running
finances under mark-up arrangements |
9 |
11,944,152 |
56,122,584 |
|
| Provision
for taxation |
|
|
5,617,333 |
2,617,333 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
402,884,835 |
451,630,465 |
|
| CONTINGENCIES
AND COMMITMENTS |
10 |
|
|
------------------ |
------------------ |
|
|
|
Rupees |
1,662,698,119 |
1,712,739,827 |
|
|
|
|
========== |
========== |
|
|
| FIXED
ASSETS - Tangible |
|
|
|
| Operating
Assets |
|
11 |
1,120,252,068 |
1,139,993,459 |
|
| Capital
work-in-progress |
|
12 |
334,898,216 |
287,266,655 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,455,150,284 |
1,427,260,114 |
|
|
|
|
|
|
| LONG
TERM DE POSITS |
|
4,140,346 |
4,140,346 |
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Stores
and spares |
|
13 |
110,492,299 |
108,194,150 |
|
| Stock-in-trade |
|
14 |
66,040,138 |
97,968,749 |
|
| Trade debts |
|
15 |
6,910,750 |
48,024,954 |
|
| Advances,
deposits, prepayments |
|
|
| and
other receivables |
|
16 |
14,716,843 |
15,287,311 |
|
| Cash
and bank balances |
|
17 |
5,247,459 |
11,864,203 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
203,407,489 |
281,339,367 |
|
|
|
|
------------------ |
------------------ |
|
|
Rupees |
1,662,698,119 |
1,712,739,827 |
|
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts, |
|
|
|
ABDUL AZIZ ESSA |
|
HUMERA ESSA |
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
|
NOTE |
2000 |
1999 |
|
|
| Sales |
|
|
641,982,765 |
941,355,350 |
|
| Less:
Excise duty |
|
|
264,078,816 |
367,872,400 |
|
|
|
|
------------------ |
------------------ |
|
| Net sales |
|
|
377,903,949 |
573,482,950 |
|
| Cost of sales |
|
18 |
300,248,227 |
498,127,106 |
|
|
|
|
------------------ |
------------------ |
|
| Gross profit |
|
|
77,655,722 |
75,355,844 |
|
|
| Administration
and selling |
|
| expenses |
|
19 |
12,287,196 |
9,203,885 |
|
|
|
|
------------------ |
------------------ |
|
| Operating profit |
|
|
63,068,648 |
68,451,837 |
|
| Other income |
|
20 |
177,900 |
126,395 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
63,246,548 |
68,578,232 |
|
|
|
|
------------------ |
------------------ |
|
| Financial
charges |
|
21 |
44,576,909 |
14,878,713 |
|
| Other charges |
|
22 |
488,191 |
2,779,976 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
45,065,100 |
17,658,689 |
|
|
|
|
------------------ |
------------------ |
|
| Profit
for the year |
|
|
18,181,448 |
50,919,543 |
|
| Prior
years' adjustments |
|
23 |
9,095,815 |
-- |
|
|
|
|
------------------ |
------------------ |
|
| Profit
before taxation |
|
|
9,085,633 |
50,919,543 |
|
| Taxation |
|
24 |
3,000,000 |
2,000,000 |
|
|
|
|
------------------ |
------------------ |
|
| Profit
after taxation |
|
|
6,085,633 |
48,919,543 |
|
| Accumulated
profit / (loss) brought forward |
|
7,940,197 |
(6,349,616) |
|
|
|
|
------------------ |
------------------ |
|
| Profit
available for appropriation |
|
|
14,025,830 |
42,569,927 |
|
|
|
|
|
|
| Appropriations: |
|
|
|
|
|
| Proposed
issue of bonus shares |
|
|
|
| in
the ratio of NIL (1999 - 1:10) |
|
|
-- |
34,629,730 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
-- |
34,629,730 |
|
|
|
|
------------------ |
------------------ |
|
| Accumulated
profit carried forward |
|
14,025,830 |
7,940,197 |
|
|
|
|
========== |
========== |
|
| Earnings
per share |
|
25 |
0.16 |
1.41 |
|
|
|
| The
annexed notes form an integral part of these accounts |
|
|
|
|
|
ABDUL AZIZ ESSA |
|
HUMERA ESSA |
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
|
|
2000 |
1999 |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| Profit
for the year |
|
18,181,448 |
50,919,543 |
|
| Add
/ (less) adjustments for non cash charges |
|
|
|
| Depreciation |
|
49,394,531 |
49,070,424 |
|
| Provision
for gratuity |
|
1,317,632 |
-- |
|
|
|
------------------ |
------------------ |
|
| Operating
profit before working capital changes |
|
68,893,611 |
99,989,967 |
|
|
| Movement
in working capital |
|
| (Increase)/decrease
in current assets |
|
| Stores
and spares |
|
(2,298,149) |
(8,431,733) |
|
| Stock-in-trade |
|
31,928,611 |
(15,562,683) |
|
| Trade debts |
|
41,114,204 |
(20,990,730) |
|
| Advances,
deposits, prepayments |
|
|
|
| and
other receivables |
|
570,468 |
(3,117,915) |
|
|
|
------------------ |
------------------ |
|
|
|
71,315,134 |
(48,103,061) |
|
| Increase/(decrease)
in current liabilities |
|
|
| Creditors,
accured and other liabilities |
|
(56,137,025) |
78,698,641 |
|
| Running
finances under mark-up arrangements |
|
(44,178,432) |
(53,725,590) |
|
|
|
------------------ |
------------------ |
|
|
|
(100,315,457) |
24,973,051 |
|
|
|
------------------ |
------------------ |
|
| Net
cash (used in)/from operating activities |
|
39,893,288 |
76,859,957 |
|
|
|
