| Exide Pakistan Limited |
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| Annual
Report 2000 |
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| CONTENTS |
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| EXIDE
PAKISTAN LTD |
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| CORPORATE
PROFILE |
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| NOTICE
OF MEETING |
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| CHAIRMAN'S
REVIEW |
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| REPORT
OF THE DIRECTORS |
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|
| PERFORMANCE
HIGHLIGHTS |
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|
| GRAPHIC
ILLUSTRATION |
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|
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| PATTERN
OF SHAREHOLDING |
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| BALANCE
SHEET |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
|
| STATEMENT
OF CHANGES IN EQUITY |
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|
| CASH
FLOW STATEMENT |
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|
|
| NOTES
TO THE ACCOUNTS |
|
|
| STATEMENT
UNDER SECTION 237 OF |
|
| THE
COMPANIES ORDINANCE, 1984 |
|
|
| AUTOMOTIVE
BATTERY COMPANY LTD |
|
| CORPORATE
PROFILE |
|
|
|
| CHAIRMAN'S
REVIEW |
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|
|
| REPORT
OF THE DIRECTORS |
|
|
| PATTERN
OF SHAREHOLDING |
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
| BALANCE
SHEET |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
|
| STATEMENT
OF CHANGES IN EQUITY |
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|
| CASH
FLOW STATEMENT |
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|
|
| NOTES
TO THE ACCOUNTS |
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|
| FIVE
YEARS AT A GLANCE |
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|
| CHLORIDE
PAKISTAN (PRIVATE) |
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| CORPORATE
PROFILE |
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|
|
| REPORT
OF THE DIRECTORS |
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|
|
| AUDITORS'
REPORT TO THE MEMBERS |
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|
|
| BALANCE
SHEET |
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|
|
| STATEMENT
OF CHANGES IN |
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| FINANCIAL
POSITION |
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|
|
| NOTES
TO THE ACCOUNTS |
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|
|
| CONSOLIDATED
ACCOUNTS |
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| AUDITORS'
REPORT TO THE MEMBERS |
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|
|
| CONSOLIDATED
BALANCE SHEET |
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|
|
| CONSOLIDATED
PROFIT AND LOSS ACCOUNT |
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|
| CONSOLIDATED
STATEMENT OF CHANGES IN EQUITY |
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| CONSOLIDATED
CASH FLOW STATEMENT |
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|
| CONSOLIDATED
NOTES TO THE ACCOUNTS |
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|
|
|
| CORPORATE
PROFILE |
|
|
| BOARD
OF DIRECTORS |
|
| Arif Hashwani |
|
- Chairman |
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| S.H.M. Zaidi |
|
- Managing Director/Chief
Executive |
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| Vazir
Ali F. Mohammad |
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| Rajabali
Panjwani |
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| Altaf
Hashwani |
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| Hussain
Hashwani |
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| Muhammad Asif |
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| COMPANY
SECRETARY |
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| S.
Haider Mehdi |
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|
| BANKERS |
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| Emirates
Bank International PJSC. |
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| The
Hongkong and Shanghai Banking Corporation Ltd. |
|
| Habib
Bank Ltd. |
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| Muslim
Commercial Bank Ltd. |
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| Gulf
Commercial Bank Ltd. |
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| (Formerly
Schon Bank Ltd.) |
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| National
Bank of Pakistan |
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| American
Express Bank Ltd. |
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| ANZ
Grindlays Bank Ltd. |
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|
| AUDITORS |
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| A.F.
Ferguson & Co. |
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| SOLICITORS |
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| Orr,
Dignam & Co. |
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| REGISTERED
OFFICE |
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| 40-K, Block 6 |
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| Dr.
Mahmood Hussain Road |
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| Off
Sharae Faisal |
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| P.E.C.H.S., |
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| Karachi-75400 |
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|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
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| Notice
is hereby given that the Forty-Seventh Annual General |
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| Meeting
of the shareholders of Exide Pakistan Limited will be held |
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| on
Thursday, September 14, 2000 at 10.30 hours at Karachi Marriott |
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| Hotel,
Abdullah Haroon Road, Karachi to transact the following |
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| business: |
|
|
| ORDINARY
BUSINESS: |
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| 1.
To read and confirm minutes of the Forty-Sixth Annual General |
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| Meeting
of the shareholders of the Company held on June 16, 1999 |
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|
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| 2.
To receive and adopt the Audited Statements of Accounts for |
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| the
year ended March 31,2000 together with the Directors' and |
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| Auditors'
reports thereon. |
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| 3.
To declare final dividend for the year ended March 31, 2000, |
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| as
recommended by the Directors. |
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| 4.
To appoint auditors for the year 2000-2001 and fix their |
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| remuneration. |
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|
By order of the Board |
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|
|
S. HAIDER MEHDI |
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| Karachi:
July 20, 2000 |
|
Company Secretary |
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|
| NOTES |
|
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| 1.
A member entitled to attend and vote at the Annual General |
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| Meeting
is entitled to appoint another member as a proxy to |
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| attend
and vote on his/her behalf. Proxies in order to be valid |
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| must
be deposited with the Company not less than 48 hours |
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| before
the time appointed for the meeting. |
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|
| 2.
The Share Transfer Books of the Company will remain closed |
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| from
September 06, 2000 to September 14, 2000, both days |
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| inclusive. |
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|
| 3.
Members are requested to notify the Company of any change |
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| in
their address at the Registered Office at 40-K, Block-6, |
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| Dr.
Mehmood Hussain Road, Off Sharea Faisal, P.E.C.H.S., |
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| Karachi-75400. |
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|
|
| CHAIRMAN'S
REVIEW |
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|
| IN
THE NAME OF ALLAH |
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| THE
MOST BENEFICENT |
|
| AND
MERCIFUL |
|
|
| I
have the privilege of welcoming you to the 47th Annual General |
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| Meeting
of your Company and presenting the Audited Statements |
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| of
Accounts and my review on the operating performance of your |
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| Company
for the year ended March 31, 2000. |
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|
| OVERVIEW : |
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| The
economic scenario continued to be under pressure and remained |
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| subdued
during the year under review. The GDP grew by 4.5 percent |
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| but
overall manufacturing sector recorded growth by only 1.6 percent |
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| as
against 4.7 percent achieved last year. Although the agriculture |
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| sector
grew by 5.5 percent but the demand of automotive batteries |
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| during
the peak business season in the Organized Sector was |
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| lower
than the historical anticipated demand. The plunge in demand |
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| during
peak business season is attributed to severe competition with |
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| the
un-organized sector comprising influx of smuggled batteries, |
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| under
invoiced imports and the replators. These adverse factors |
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| badly
affected the operating environment of automotive battery |
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| industry
like other industrial segments and the overall battery industry |
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| witnessed
negative growth during the period under report. |
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|
| The
operating performance of your Company's Chemical Plant was |
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| satisfactory
in its first complete year of commercial production. |
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|
| In
view of highly adverse operating environment, your Company |
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| recorded
a pre-tax profit of Rs. 30.54m as against Rs. 43.43m |
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| achieved
in 1999 but despite that it maintained its leadership in the |
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| market. |
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|
| The
negative factors briefly enumerated. above also impacted the |
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| operating
performance of the subsidiary of your Company, namely |
|
| Automotive
Battery Company Limited which recorded pre-tax profit |
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| of
Rs. 4.3m as compared with Rs. 5.7m recorded in the year |
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| preceding immediately. |
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|
| SALES: |
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| Your
Company achieved total sales revenue of Rs. 813.94m for the |
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| year
under review against Rs. 733.34m of the preceding year. |
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|
| Sales
volume in Replacement Sector reduced from the last year. |
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| However,
the demand for batteries from tractor assemblers and the |
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| government
segment improved over the last year as a result of which |
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| the
total sales volume remained at par with that of last year. Sale |
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| of
Industrial and Diesel Engine Starting batteries also reduced |
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| because
of decreased demand from this sector. |
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|
| PRODUCTION
: |
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| Production
activities were effectively planned and synchronized with |
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| the
market requirement both in terms of quantity and quality despite |
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| disruptions
caused by power failure and other infrastructure |
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| constraints.
Your management's quest for maintaining high standards |
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| of
quality control continued unabated. Emphasize on quality control |
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| at
all stages of production was implemented with greater zeal for |
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| further
fortifying quality standards. |
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|
| PROFITABILITY: |
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| Factors
such as persisted economic recession, extension of additional |
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| discounts
in view of severe market competition, increase in manpower |
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| and
utilities costs and payment of sales tax (under protest) on |
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| batteries
supplied as Original Equipment during the period from |
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| January
1990 to November 1995 gave rise to cost of sales by 14 |
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| percent
as compared to 11 percent growth in the sales revenue. |
|
| The
Gross Profit in turn reduced from Rs. 136.75m to Rs. 132.99m |
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| during
the period under review. However, in view of strict vigilance, |
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| Administration
and Selling Expenses increased marginally by 2.9 |
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| percent
despite double-digit local inflation. The Financial charges |
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| were
up by 39 percent on account of accrued mark-up on LMM loan |
|
| for
the Sulphuric Acid Plant. |
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|
| The
total assets of your company increased from Rs. 519.4m to |
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| Rs.
527.7m while the capital employed surged up from Rs. 337.8m |
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| to
Rs. 340.1m. Average Inventory turnover went up from 4.2 times |
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| to
4.9 times. The average collection period reduced marginally from |
|
| 38
to 35 days, while the current ratio remained at par with that of |
|
| last
year. The break-up value of the shares of your company was |
|
| Rs.
47.76 per share as on March 31, 2000 as against its nominal |
|
| value
of Rs. 10.00 per share. |
|
|
| The
matter for payment of sales tax on batteries supplied as Original |
|
| Equipment
is pending for adjudication before the Appellate Tribunal, |
|
| Customs,
Central Excise and Sales Tax, Karachi. |
|
|
| FUTURE
OUTLOOK: |
|
| The
persistent economic slump and growing competition will continue |
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| to
affect the historical growth of local Automotive Battery Industry. |
|
| The
influx of smuggled batteries, under invoiced imports and availability |
|
| of
replated products will further aggravate the operating environment. |
|
| The
adjustment of Pak Rupee parity and increase in energy charges |
|
| would
raise the cost of basic inputs substantially. However, the |
|
| Government
has withdrawn Central Excise Duty on Separators |
|
| produced
by your Company for in-house consumption through the |
|
| Finance
Ordinance, 2000, which will reduce the manufacturing |
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| cost
marginally. |
|
|
| It
is hoped that in view of strategy instituted by the present |
|
| government
for revival of the national economy, the present |
|
| recessionary
trend is not expected to last long but will certainly |
|
| take
time before the Normalcy is restored. Nevertheless, your |
|
| management
is determined to make all out efforts for ensuring your |
|
| Company's
leadership in the market. |
|
|
| ACKNOWLEDGMENT: |
|
| On
my behalf and on behalf of the Board of Directors of the Company, |
|
| I
wish to express my thanks to all shareholders of the Company, |
|
| the
executives, the staff and the workers for their sincere efforts. |
|
| The
CBA of the Company concluded a two-year agreement effective |
|
| July
01,1999. I also take this opportunity to thank our main-dealers, |
|
| the
retailers and the valued customers in the Government and |
|
| Original
Equipment Sectors of the Market. Financiers of your |
|
| Company
provided their valuable support and cooperation throughout |
|
| the
year and I look forward for their sustained support. |
|
|
| ARIF
HASHWANI |
|
| Chairman |
|
| Karachi:
July 20, 2000 |
|
|
|
| REPORT
OF THE DIRECTORS |
|
|
| Your
Directors are pleased to present their report together |
|
| with
the Audited Statements of Accounts and the Auditors' |
|
| Report
thereon for the year ended March 31, 2000. |
|
|
| FINANCIAL
HIGHLIGHTS |
|
|
|
Rs. (000) |
|
|
| Profit
before Taxation |
|
30,543 |
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| Less Taxation |
|
10,858 |
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|
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| Profit
after Taxation |
|
19,685 |
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| Unappropriated
Profit Brought Forward |
|
4,379 |
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|
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|
24,064 |
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| Transfer
from General Reserves |
|
8,109 |
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|
----------- |
|
| Profit
available for Appropriation |
|
32,173 |
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| Appropriations: |
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| Special
dividend @ 15% out of the general |
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| reserves
of the company as at March 31,1999 |
8,109 |
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|
|
| Proposed
final dividend @ 15% |
|
8,109 |
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| Transfer
to General Reserves |
|
12,000 |
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|
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| Unappropriated
Profit Carried Forward |
|
3,955 |
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|
========== |
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| Earnings
Per Share |
|
Rs. 3.64 |
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|
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|
| The
Chairman's Review dealing with the performance of |
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| the
Company during the year ended March 31,2000, future |
|
| prospects
and other matters of concern to the Company |
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| forms
part of this report. |
|
|
| Pattern
of shareholding as at March 31, 2000 is annexed |
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| to this report. |
|
|
| The
present auditors, Messrs : A. F. Ferguson & Co.; |
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| Chartered
Accountants, retire and being eligible, offer |
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| themselves
for reappointment. |
|
|
|
S.H.M. ZAIDI |
|
| Karachi:
July 20, 2000 |
Chief Executive |
|
|
|
| PERFORMANCE
HIGHLIGHTS |
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|
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|
(Rs. '000) |
|
|
1996 |
1997 |
1998 |
1999 |
2000 |
|
|
| Net Sales |
|
650,453 |
743,457 |
660,155 |
733,341 |
813,937 |
|
|
| Operating
Profit |
|
60,645 |
58,383 |
47,442 |
62,453 |
56,500 |
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| Profit
Before Tax |
|
41,896 |
34,802 |
35,332 |
43,429 |
30,543 |
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| Profit
After Tax |
|
26,896 |
22,832 |
23,832 |
35,929 |
19,685 |
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|
|
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| Cash Dividend |
|
10,219 |
-- |
-- |
6,487 |
16,218 |
|
|
25% |
-- |
-- |
12% |
30% |
|
|
|
|
| Stock
Dividend |
|
-- |
6,131 |
7,051 |
-- |
-- |
|
|
-- |
15% |
15% |
-- |
-- |
|
|
|
|
| Paid-up
Share Capital |
|
40,875 |
40,875 |
47,006 |
54,057 |
54,057 |
|
|
| Reserves/Unappropriated Profits |
137,714 |
160,546 |
178,247 |
200,638 |
204,105 |
|
|
| Shareholders'
Equity |
|
178,589 |
201,421 |
225,253 |
254,695 |
258,162 |
|
|
| Surplus
on Revaluation of |
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| Fixed Assets |
|
6,446 |
6,446 |
43,465 |
43,465 |
43,465 |
|
|
| Tangible
Fixed Assets |
|
33,545 |
27,509 |
80,456 |
165,218 |
160,265 |
|
| Net
Current Assets |
|
82,336 |
107,222 |
-125,104 |
99,334 |
108,846 |
|
|
| Net
Assets Employed |
|
185,600 |
207,867 |
268,718 |
298,160 |
301,627 |
|
|
|
Rupees |
|
|
| Earning
Per Share Before Tax |
|
10 |
9 |
8 |
8 |
6 |
|
| Earning
Per Share After Tax |
|
7 |
6 |
5 |
7 |
4 |
|
| Share
Break-up Value |
|
44 |
49 |
48 |
47 |
48 |
|
|
| Ratio of: |
|
Percent |
|
|
| Operating
Profit to Sales |
|
9% |
8% |
7% |
9% |
7% |
|
| Profit
Before Tax to Sales |
|
6% |
5% |
5% |
6% |
4% |
|
| Profit
After Tax to Sales |
|
4% |
3% |
4% |
5% |
2% |
|
| Return
on Equity |
|
15% |
11% |
11% |
14% |
8% |
|
| Return
on Net Assets Employed |
14% |
11% |
9% |
12% |
6% |
|
|
|
| PATTERN
OF SHAREHOLDINGS AS |
|
| AT
MARCH 31, 2000 |
|
|
| NUMBER OF |
RANGE OF SHAREHOLDING |
TOTAL SHARES |
|
| SHAREHOLDERS |
FROM |
TO |
HELD |
|
|
| 266 |
1 |
100 |
9,695 |
|
| 369 |
101 |
500 |
97,588 |
|
| 93 |
501 |
1000 |
67,090 |
|
| 79 |
1001 |
5000 |
157,639 |
|
| 3 |
5001 |
10000 |
21,653 |
|
| 2 |
10001 |
15000 |
25,487 |
|
| 1 |
30001 |
35000 |
33,604 |
|
| 1 |
35001 |
40000 |
39,662 |
|
| 3 |
95001 |
100000 |
298,651 |
|
| 1 |
140001 |
145000 |
144,544 |
|
| 1 |
195001 |
200000 |
200,000 |
|
| 1 |
310001 |
315000 |
310,909 |
|
| 1 |
720001 |
725000 |
723.02 |
|
| 1 |
905001 |
910000 |
906.53 |
|
| 1 |
1025001 |
1030000 |
1,027,587 |
|
| 1 |
1340001 |
1345000 |
1,342,080 |
|
| ---------- |
---------- |
---------- |
---------- |
|
| 824 |
|
5,405,737 |
|
| ---------- |
---------- |
---------- |
---------- |
|
|
|
| CATEGORIES |
|
PERCENTAGE |
|
| OF |
|
NUMBER |
SHARES |
OF |
|
| SHAREHOLDERS |
|
HELD |
TOTAL |
|
| Individuals |
|
807 |
4,147,735 |
76.73% |
|
| Joint
Stock Companies |
6 |
12,044 |
0.22% |
|
| Investment
Companies |
6 |
742,055 |
13.73% |
|
| Insurance
Companies |
5 |
503,903 |
9.32% |
|
|
---------- |
---------- |
---------- |
|
|
824 |
5,405,737 |
100.00% |
|
|
---------- |
---------- |
---------- |
|
|
|
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed Balance Sheet of Exide |
|
| Pakistan
Limited as at March 31,2000 and the related Profit |
|
| and
Loss Account, Statement of Changes in Equity and |
|
| Cash
Flow Statement, 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 |
