Welcome to PakSearch.com Pakistan's Premier Business Information
Service


For business information, annual reports, laws, ordinances, regulations and articles.




Google
 
Web Paksearch.com
Gul Ahmed Textile Mills Limited
Annual Report 2000
CONTENTS
Company Information
Notice of Meeting
Directors' Report
Auditors' Report
Balance Sheet
Profit and Loss Account
Cash Flow Statement
Statement of Changes in Equity
Notes to the Accounts
Pattern of Shareholding
COMPANY INFORMATION
BOARD OF DIRECTORS IQBAL ALIMOHAMMED - Chief Executive
DR. AMJAD WAHEED - (NIT)
BASHIR H. ALIMOHAMMED
GHULAM HAJI ALIMOHAMMED
JAWAID IQBAL
ZAIN BASHIR
ZIAD BASHIR
COMPANY SECRETARY MOHAMMED HUSSAIN, FCA
BANKERS ABN AMRO BANK NV
AMERICAN EXPRESS BANK LIMITED
BANK AL HABIB LIMITED
CITIBANK, N.A.
DEUTSCHE BANK AG
HABIB BANK AG ZURICH
HABIB BANK LIMITED
SOCIETE GENERALE THE FIB
STANDARD CHARTERED BANK
STANDARD CHARTERED GRINDLAYS BANK LIMITED
UNION BANK LIMITED
UNITED BANK LIMITED
AUDITORS HYDER BHIMJI & CO.
Chartered Accountants
REGISTERED OFFICE PLOT NO. 82
MAIN NATIONAL HIGHWAY
LANDHI, KARACHI-75120
SHARES DEPARTMENT PLOT NO. HT/3A
LANDHI INDUSTRIAL AREA
KARACHI-75120
MILLS LANDHI INDUSTRIAL AREA
KARACHI-75120
E-MAIL finance@gulahmed.com
WEBSITE www.gulahmed.com
NOTICE OF MEETING
Notice is hereby given that the 48th Annual General Meeting of Gul Ahmed Textile Mills Limited will be held at Avari
Towers, 242, Fatima Jinnah Road, Karachi, on Saturday March 31, 2001 at 10:00 A.M. to transact the following
business:
1. To receive, consider and adopt the Directors' Report and Audited Accounts for the year ended
September 30, 2000 and Auditors' Report thereon.
2. To approve the payment of cash dividend @ 70% as recommended by the Board.
3. To appoint Auditors and fix their remuneration.
4. To transact any other ordinary business as may be placed before the meeting with the permission
of the Chairman.
By Order of the Board
Karachi: JAWAID IQBAL
February 28, 2001 Director
NOTES:
1. Share Transfer Books of the Company will remain closed from March 22, 2001 to March 31,2001
(both days inclusive).
2. A member entitled to vote at the meeting may appoint a proxy. Proxies in order to be effective, must
be received at the Registered Office of the Company duly stamped and signed not later than 48
hours before the meeting.
3. Shareholders who have deposited their shares into Central Depository Company of Pakistan
Limited, must bring their original National Identity Card (NIC) or Original Passport at the time of
attending the meeting. If proxies are granted by such shareholders the same must be accompanied
with attested copies of the NIC or the Passport of the beneficial owners. Representatives of
corporate members should bring the usual documents required for such purpose.
4. A proxy must be a member of the Company.
5. Shareholders are requested to immediately notify the change of address, if any.
DIRECTORS' REPORT
Your Directors are pleased to present the 48th Annual Report and the audited accounts for the year ended
September 30, 2000.
These accounts include the results of Excel Textile Mills Limited which has merged with the Company effective
October 01,1999. As you are aware the scheme of arrangement for amalgamation between the Company and
Excel Textile Mills Limited was approved by the shareholders in the Extra Ordinary General Meeting held on
December 19, 2000 and sanctioned by the Honorable High Court of Sindh in its order dated January 18, 2001.
OPERATING RESULTS Rs. 000s
Operating results of the Company are noted below:
Profit after providing depreciation
of Rs. 180 million amounts to 625,801
Less: Provision for taxation 67,650
-----------
Profit after taxation 558,151
Add: Unappropriated profit brought forward 5,320
Accumulated profit of Excel Textile Mills Limited 84,337
-----------
Amount available for appropriation 647,808
==========
Appropriations
Proposed dividend 238,513
General reserve 400,000
Amount carried forward 9,295
-----------
647,808
==========
Your Company's performance during the year under review has been exceptionally good. Profit before tax has
increased to Rs. 626 million from Rs. 182 million.
Earnings per share work out to Rs. 16.38.
In order to comply with the requirements of IAS-19, Management is arranging actuarial valuation of the
Company's gratuity liability.
DIVIDEND
Your Directors are pleased to recommend cash dividend @ 70% that is Rs. 7/- per share.
FUTURE PROSPECTS
A record capital expenditure of Rs. 372 million has been incurred by the Company on its balancing,
modernization and replacement as well as expansion programme. The areas where this investment has been
made include processing, printing and finishing, upgrading of the spinning back process facilities and setting
up of a most modern laboratory having top of the line testing equipments.
In the current fiscal year the Company has plans both for upgrading of the existing facilities as well as addition
to capacity in spinning and weaving.
On the economic side after the approval of Stand-by Arrangement by the IMF and debt rescheduling by the
Paris Club, signs of modest recovery in the economy are now visible and it is expected that investors confidence
will also build up.
However the economic slowdown in the US and its possible adverse impact on European Union is a cause of
worry for sustaining the momentum of growth in export sales.
BOARD OF DIRECTORS
There has been no change in the composition of the Board of Directors during the year under review.
PATTERN OF SHAREHOLDING
A statement showing the pattern of shareholding in the Company as at September 30, 2000 is included in the report.
AUDITORS
The present auditors Hyder Bhimji & Co., Chartered Accountants, retire and offer themselves for re-appointment.
EMPLOYEES' RELATIONS
Relationship with the employees remained cordial and the Board is pleased to record its appreciation for the
hard work and dedication shown by them.
For and on behalf of the Board
Karachi: IQBAL ALIMOHAMMED
February 28, 2001 Chief Executive
AUDITORS' REPORT
TO THE MEMBERS
We have audited the annexed Balance Sheet of GUL AHMED TEXTILE MILLS LIMITED as at September 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 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 account 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 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, except the deviation of IAS-19 as more fully explained in Note No.9.1 and give
the information required by the Companies Ordinance, 1984, in the manner so required and
respectively with the exception of the matter reported earlier, give a true and fair view of the state
of the Company's affairs as at September 30, 2000 and of the profit, its cash flow and changes in
equity for the year then ended; and
(d) in our opinion, 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.
Karachi: HYDER BHIMJI & CO.
February 28, 2001 Chartered Accountants
BALANCE SHEET AS AT SEPTEMBER 30, 2000
2000 1999
Note Rs. 000s
SHARE CAPITAL AND RESERVES
Authorised capital 500,000 500,000
50,000,000 ordinary shares of Rs.10 each ========== ==========
Issued, subscribed and paid-up capital 3 286,260 286,260
Share capital under issue 4 54,473 --
Reserves 5 972,645 551,086
Unappropriated profit 9,295 5,320
------------ ------------
1,322,673 842,666
REDEEMABLE CAPITAL 6 -- 32,445
LONG TERM LOANS 7 363,934 330,830
DEFERRED LIABILITIES
Taxation 8 49,670 46,470
Gratuity 9 21,176 17,579
------------ ------------
70,846 64,049
CURRENT LIABILITIES AND PROVISIONS
Short term running finance 10 1,537,221 1,545,177
Short term loans 11 210,217 --
Current maturity of redeemable capital
and long term loans 12 199,789 207,373
Creditors and accrued liabilities 13 463,829 334,028
Other liabilities 14 3,236 1,289
Provision for taxation - net 18,494 --
Proposed dividend 238,513 71,565
------------ ------------
2,671,299 2,159,432
CONTINGENT LIABILITIES AND COMMITMENTS 15
------------ ------------
4,428,752 3,429,422
========== ==========
TANGIBLE FIXED ASSETS
Operating assets 16 1,732,613 1,321,453
Capital work-in-progress 17 82,971 33,627
------------ ------------
1,815,584 1,355,080
LONG TERM INVESTMENT -- 50
LONG TERM LOANS AND ADVANCES 18 7,975 2,895
LONG TERM DEPOSITS 3,201 2,303
CURRENT ASSETS
Stores and spares 19 106,167 97,456
Stock-in-trade 20 759,339 616,727
Trade debts 21 959,909 807,023
Loans, advances, prepayments and
other receivables 22 131,294 115,919
Short term investment 23 537,821 430,264
Cash and bank balances 24 107,462 1,705
------------ ------------
2,601,992 2,069,094
------------ ------------
4,428,752 3,429,422
========== ==========
The annexed notes form an integral part of these accounts.
IQBAL alimohammed JAWAID IQBAL
Chief Executive Director
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED SEPTEMBER 30, 2000
2000 1999
Note Rs. 000s
Sales 25 4,516,744 4,362,814
Cost of sales 26 3,383,219 3,719,909
----------- -----------
Gross profit 1,133,525 642,905
Administrative expenses 27 146,046 124,179
Selling expenses 28 128,024 88,131
----------- -----------
274,070 212,310
----------- -----------
Operating profit 859,455 430,595
Other income 29 4,942 4,939
----------- -----------
864,397 435,534
Financial charges 30 202,560 243,158
Workers' profit participation fund 33,092 9,619
Workers' welfare fund 2,944 991
----------- -----------
238,596 253,768
----------- -----------
Profit for the year before taxation 625,801 181,766
Provision for taxation 31 67,650 27,000
----------- -----------
Profit for the year after taxation 558,151 154,766
Unappropriated profit brought forward 32 89,657 2,119
----------- -----------
Profit available for appropriation 647,808 156,885
Appropriations
Proposed dividend @ Rs. 7/- 238,513 71,565
(1999: Rs. 2.50) per share
General reserve 400,000 80,000
----------- -----------
638,513 151,565
----------- -----------
Unappropriated profit carried forward 9,295 5,320
========== ==========
Earnings per share (Rs.) 33 16.38 5.41
The annexed notes form an integral part of these accounts.
IQBAL alimohammed JAWAID IQBAL
Chief Executive Director
CASH FLOW STATEMENT
FOR THE YEAR ENDED SEPTEMBER 30, 2000
2000 1999
Rs. 000s
CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxation 625,801 181,766
Adjustments for:
Depreciation 179,515 150,511
Staff gratuity 6,255 5,178
Financial charges 258,672 251,777
Provision for slow moving/obsolete stores and spares 4,647 --
Provision for doubtful debts 5,634 --
Long term investment written off 50 --
Profit on sales of operating assets (1,891) (2,204)
Interest income (56,112) (8,619)
----------- -----------
1,022,571 578,409
Changes in working capital:
(Increase)/Decrease in current assets
Stores and spares 9,871 (17,489)
Stock-in-trade 123,268 218,292
Trade debts (63,654) (233,676)
Loans, advances, prepayments and other receivables (5,716) 1,742
----------- -----------
63,769 (31,131)
Increase in current liabilities
Creditors, accrued and other liabilities 124,318 59,472
----------- -----------
188,087 28,341
----------- -----------
Cash generated from operations 1,210,658 606,750
Payments for:
Staff gratuity (5,934) (3,249)
Financial charges (284,314) (264,797)
Income tax (29,126) (35,886)
Long term loans and advances (5,080) (674)
----------- -----------
Net cash generated from operating activities 886,204 302,144
CASH FLOW FROM INVESTING ACTIVITIES
Capital expenditure (372,002) (198,858)
Sale proceeds of operating assets 18,616 5,960
Interest received 49,558 7,704
Long term deposits (436) 91,257
----------- -----------
Net cash used in investing activities (304,264) (93,937)
CASH FLOW FROM FINANCING ACTIVITIES
Short term loans 125,629 --
Redemption of redeemable capital (31,190) (27,734)
Long term borrowings 200,000 57,240
Long term borrowings - repayments (280,551) (280,855)
Dividends paid (75,367) (50,095)
----------- -----------
Net cash used in financing activities (61,479) (301,444)
----------- -----------
Net increase/(decrease) in cash and cash equivalents 520,461 (93,237)
Cash and cash equivalents - at the beginning of the year (1,113,208) (1,019,971)
- transferred on merger (299,191) --
----------- -----------
(1,412,399) (1,019,971 )
----------- -----------
Cash and cash equivalents - at the end of the year (891,938) (1,113,208)
========== ==========
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include:
Short term investment 537,821 430,264
Cash and bank balances 107,462 1,705
Short term running finance (1,537,221) (1,545,177)
----------- -----------
(891,938) (1,113,208)
========== ==========
IQBAL alimohammed JAWAID IQBAL
Chief Executive Director
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED SEPTEMBER 30, 2000
Rs. 000s
Shares Revenue Share Accumulated Total
Capital Reserve Premium Profit
Balance as at September 30, 1998 286,260 340,000 131,086 2,119 759,465
Profit for the year -- -- -- 154,766 154,766
Transferred from profit and loss account -- 80,000 -- (80,000) --
Proposed dividend -- -- -- (71,565) (71,565)
------------ ------------ ------------ ------------ ------------
Balance as at September 30, 1999 286,260 420,000 131,086 5,320 842,666
Unappropriated profit transferred on merger -- -- -- 84,337 84,337
Profit for the year -- -- -- 558,151 558,151
Capital under issue 54,473 -- -- -- 54,473
Book difference of share capital under issue -- -- 21,559 -- 21,559
Transferred from profit and loss account -- 400,000 -- (400,000) --
Proposed dividend -- -- -- (238,513) (238,513)
------------ ------------ ------------ ------------ ------------
Balance as at September 30, 2000 340,733 820,000 152,645 9,295 1,322,673
========== ========== ========== ========== ==========
IQBAL alimohammed JAWAID IQBAL
Chief Executive Director
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED SEPTEMBER 30, 2000
1. THE COMPANY AND ITS OPERATIONS
1.1 Gul Ahmed Textile Mills Limited is a public limited company incorporated in Pakistan and is listed on the
Karachi and Lahore Stock Exchanges. It is engaged in the manufacture and sale of textile products.
1.2 Assets, liabilities and accumulated profits of Excel Textile Mills Limited have been merged with the
Company with effect from 01 October, 1999 at carrying values in its (Excel Textile Mills Limited)
books of account, in accordance with the scheme of arrangement sanctioned by Honorable High
Court of Sindh. Profit and loss account figures for the current year include operating results of Excel
Textile Mills Limited.
2. SIGNIFICANT ACCOUNTING POLICIES
2.1 Accounting convention
Accounts of the Company have been prepared on historical cost convention, modified by
adjustments of exchange difference referred in Note 2.2.
2.2 Foreign currency translation
Assets and liabilities in foreign currencies are translated in Pak Rupees at the rates ruling on the
balance sheet date or as fixed under contractual agreements.
Foreign currency transactions are translated in Pak Rupees at the rates ruling on the transaction
date or as fixed under contractual agreements.
Exchange differences on loans and deposits created to hedge these loans are adjusted to assets
acquired under the loans. Other exchange differences are included in current year's income.
2.3 Retirement gratuity
The Company provides for the liability of gratuity payable to its employees under the law.
2.4 Taxation
Provision for current taxation is based on taxable income at the current rates of taxation after
considering tax credits and rebates, if any. Deferred taxation is accounted for on all material timing
differences using the liability method.
2.5 Fixed assets
Fixed assets are stated at cost less accumulated depreciation except leasehold land and capital
work-in-progress which are stated at cost. Depreciation is charged on reducing balance method at
rates specified in the note on operating assets. Full year's depreciation is charged on additions
except major additions or extensions to production facilities which are depreciated on pro-rata basis
for the period of use during the year and no depreciation is charged on assets in the year of its
disposal. Gains and losses on disposal of fixed assets are included in current year's income.
2.6 Stores and spares
Stores, chemicals and spares are valued at average cost and goods-in-transit are stated at actual cost.
2.7 Stock-in-trade
Raw materials are valued at average cost. Finished goods are valued at lower of average
manufacturing cost and net realisable value. Work-in-process is valued at average cost of raw
materials plus a proportion of the production overheads. Waste products are valued at net realisable
value.
2.8 Trade debts
Debts considered irrecoverable are written off and provision is made for debts considered doubtful.
2.9 Revenue recognition
Sales are recorded on despatch of goods to buyers
2000 1999
Rs. 000s
3. ISSUED, SUBSCRIBED AND PAID-UP CAPITAL
17,484,722 ordinary shares of Rs. 10 each
fully paid issued for cash 174,847 174,847
11,141,249 ordinary shares of Rs.10 each
fully paid issued as bonus shares 111,413 111,413
------------ ------------
286,260 286,260
========== ==========
4. SHARE CAPITAL UNDER ISSUE
Share capital to be issued to shareholders of
Excel Textile Mills Limited 54,473 --
========== ==========
In accordance with the scheme of arrangement sanctioned by Honorable High Court of Sindh for
amalgamation, the Company will issue its 5,447,326 ordinary shares of Rs. 10 each credited as fully paid
to the shareholders of Excel Textile Mills Limited in the ratio of one fully paid ordinary share of Rs.10 each
of the Company for every 1.39 ordinary shares of Rs.10 each of Excel Textile Mills Limited.
5. RESERVES
Revenue reserve
General reserve 420,000 340,000
Add: Transfer from profit and loss account 400,000 80,000
----------- -----------
820,000 420,000
Capital reserve
Shares premium 131,086 131,086
Book difference of capital under scheme of arrangement
for amalgamation 21,559 --
----------- -----------
152,645 131,086
----------- -----------
972,645 551,086
========== ==========
6. REDEEMABLE CAPITAL - SECURED
Habib Bank Limited - Long term finance -- 2,885
National Investment Trust Limited -TFCs (note 6.1) 32,445 60,262
----------- -----------
32,445 63,147
Less: Current maturity shown under current liabilities 32,445 30,702
----------- -----------
-- 32,445
========== ==========
Amount Rate of Total Amount of Instalment
(Rs. 000s) Mark-up Mark-up Re-payment Period (Rs. 000s)
Paisa/Rs. 1000
Per Day     (Rs. 000s)
6.1 150,000 44 152,724 Dec,1992 to Jun,2001 12,000 uptoJun,1994
18,195 from Dec,1994
both half yearly
Finance from Habib Bank Limited was repaid during the year.
TFCs issued to National Investment Trust Limited are secured by first pari passu charge by way of
equitable mortgage over the fixed assets of the Company.
2000 1999
Rs. 000s
7. LONG TERM LOANS - SECURED
7.1 Suppliers Credit 2 -- 6,003
7.2 Suppliers Credit 4 -- 13,801
7.3 Suppliers Credit 5 -- 19,541
7.4 Citibank, N.A. Loan 3 12,500 25,000
7.5 Orix Investment Bank Pakistan Limited -- 20,000
7.6 Suppliers Credit 7 87,011 113,460
7.7 Suppliers Credit 8 44,298 60,764
7.8 Bank AL Habib Limited Loan 1 25,000 58,333
7.9 Bank AL Habib Limited Loan 2 25,000 --
7.10 Standard Chartered Bank 20,000 40,000
7.11 Suppliers Credit 9 106,137 123,532
7.12 Habib Bank Limited 100,000 --
7.13 Suppliers Credit 10 11,332 --
7.14 Standard Chartered Grindlays Bank Limited 100,000 --
----------- -----------
531,278 480,434
Less: Current maturity shown under current liabilities 167,344 149,604
----------- -----------
363,934 330,830
========== ==========
7.1 to 7.3 Suppliers Credit 2,4 and 5 were repaid during the year.
7.4 Citibank,N.A. Loan 3 is repayable in four annual equal instalments commencing from October,
1997. Mark-up is payable half yearly @ 1.5% above the average State Bank's repurchase rate
of Short Term Federal Bonds during the previous instalment period with a minimum rate of
16.5% per annum. The loan is secured by hypothecation charge over specified machinery.
7.5 Orix Investment Bank Pakistan Limited Loan was repaid during the year.
7.6 Suppliers Credit 7 is repayable in 12 half yearly equal instalments commencing from May,
1999. Interest is payable half yearly @ 1.5% above six months DEM LIBOR. The loan is
guaranteed by Habib Bank Limited and the guarantee is secured by hypothecation charge
over the fixed assets of the Company.
7.7 Suppliers Credit 8 is repayable in 12 half yearly equal instalments commencing from August,
1998. Interest is payable half yearly @1.5% above six months DEM LIBOR. The loan is
guaranteed by Habib Bank AG Zurich and the guarantee is secured by hypothecation charge
over specified fixed assets.
7.8 & 7.9 Bank AL Habib Limited Loans 1 and 2 are repayable in 12 quarterly equal instalments
commencing from September, 1998. Mark-up is payable quarterly @ 16% per annum. The loan
is secured by hypothecation charge over specified machinery.
7.10 Standard Chartered Bank Loan is repayable in five half yearly equal instalments commencing
from September, 1999. Mark-up is payable @ 2.5% above the last six months weighted average
of Short Term Federal Bonds cut-off rate, with a minimum rate of 41.10 paisas per Rs.1,000 per
day. The loan is secured by hypothecation charge over specified machinery.
7.11 Suppliers Credit 9 is repayable in 12 half yearly equal instalments commencing from May, 2000.
Interest is payable half yearly @ 1.5% above six months DEM LIBOR. The loan is guaranteed
by Habib Bank Limited and the guarantee is secured by hypothecation charge over the fixed
assets of the Company.
7.12 Habib Bank Limited Loan is repayable in nine half yearly equal instalments commencing from
December 2000. Mark-up is payable on average cut-off yield on Treasury Bills auction during
the six months immediately preceding the mark-up payment date plus 250 basis points with a
minimum rate of 15% per annum. The loan is secured by hypothecation charge over the fixed
assets of the Company.
7.13 Supplier Credit 10is repayable in 10halfyearlyequal instalments commencing from April, 1996.
Interest is payable half yearly @1.5% above six months USD LIBOR. The loan is secured
against machinery acquired through this facility.
7.14 Standard Chartered Grindlays Bank Limited Loan is repayable in eight half yearly equal
instalments commencing from January, 2002. Mark-up is payable quarterly @ 1.5% above SBP
discount rate immediately preceding the previous mark-up payment date with a minimum rate
of 13% per annum. The loan is secured by way of pari passu charge over the fixed assets of the
Company.
8. TAXATION
Liability for deferred taxation as on the Balance Sheet date has been provided in full.
2000 1999
Rs. 000s
9. GRATUITY
Opening 17,579 15,650
Transferred on merger 3,276 --
Provision during the year 6,255 5,178
------------ ------------
27,110 20,828
Paid during the year (5,934) (3,249)
------------ ------------
21,176 17,579
========== ==========
9.1 The Company has accounted for the gratuity on liability method as per past history. However as
required by IAS-19, the liability has not been determined on actuarial valuation. It is expected that
the provision accounted for under liability method will be slightly more than liability which my arise
under actuarial valuation.
10. SHORT TERM RUNNING FINANCE - SECURED
10.1 Under mark-up arrangements
from banking companies
10.1 (a) - for operations 1,537,221 1,460,177
10.1 (b) - for hedging -- 85,000
------------ ------------
1,537,221 1,545,177
========== ==========
10.1(a) These are secured by hypothecation/floating charge over stores and spares, stock-in-trade,
trade debts and other receivables. Mark-up rates range from 7% to 14% per annum. Unavailed
facility at the year end was Rs. 2,210 million (1999:Rs. 1,724 million).
10.1(b) This facility was obtained against the security of US Dollar Bonds, referred to in note 23.
Mark-up rate is fixed according to the prevailing money market rates. Unavailed facility at the year end
was Rs. 500 million (1999:Rs. 315 million).
2000 1999
Rs.000s
11. SHORT TERM LOANS
These are from Directors and their associates
and are unsecured 210,217 --
========== ==========
12. CURRENT MATURITY OF REDEEMABLE CAPITAL
AND LONG TERM LOANS
Redeemable capital 32,445 30,702
Long term loans (note 12.1 ) 167,344 176,671
----------- -----------
199,789 207,373
========== ==========
12.1 Includes Rs. NIL (1999: Rs. 27 million) due but not paid as permission from State Bank of
Pakistan to remit equivalent foreign currency was awaited.
13. CREDITORS AND ACCRUED LIABILITIES
Creditors 296,584 184,211
Accrued expenses 100,495 89,249
Due to associated undertaking 714 --
Workers' profit participation fund 34,583 10,202
Mark-up accrued on redeemable capital (secured) 1,645 5,277
Interest accrued on secured loans (note 13.1) 14,771 24,297
Mark-up accrued on running finance (secured) 15,037 20,792
----------- -----------
463,829 334,028
========== ==========
13.1 Includes Rs. NIL (1999: Rs. 12 million) due but not paid as permission from State Bank of
Pakistan to remit equivalent foreign currency was awaited.
14. OTHER LIABILITIES
Unclaimed dividend 377 266
Others 2,859 1,023
----------- -----------
3,236 1,289
========== ==========
15. CONTINGENT LIABILITIES AND COMMITMENTS
15.1 The Company is contingently liable for:
(a) Rs. 82 million (1999: Rs. 38 million) against guarantees issued by Banks which are secured by
hypothecation/floating charge over stores and spares, stock-in-trade, trade debts and other
receivables.
(b) Post dated cheques amounting to Rs. 3 million (1999: Rs. 14 million) issued to various
Government Agencies.
15.2 Aggregate commitments for capital expenditure as at September 30, 2000 amounting to Rs. 775 million
(1999: Rs. 79 million).
16. OPERATING ASSETS
Rs. 000s
COST Written DEPRECIATION
Gul Ahmed Excel Accumulated down value
as at as at As depreciation as at Rate Charge
Oct. 1, Oct. 1, Additions Disposals at Sep. 30, upto Sep. Sep. 30, % for the
1999 1999 2000 30, 2000 2000 year
Leasehold lands 16,048 155 10,926 -- 27,129 -- 27,129 -- --
Buildings on
leasehold lands 152,236 133,933 22,648 -- 308,817 147,198 161,619 5 to 10  16,758
Plant and
machinery 2,049,628 402,868 248,181 25,881 2,674,796 1,223,509 1,451,287 10 142,599
Office equipment,
furniture and fixture  67,391 7,973 13,532 6,180 82,716 38,099 44,617 10 to 20  8,168
Transport
equipment 70,713 10,855 27,371 12,820 96,119 48,158 47,961 20 11,990
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Total 2000 2,356,016 555,784 322,658 44,881 3,189,577 1,456,964 1,732,613 179,515
========== ========== ========== ========== ========== ========== ========== ========== ==========
Total 1999 2,188,446 -- 177,160 9,590 2,356,016 1,034,563 1,321,453 150,511
========== ========== ========== ========== ========== ========== ========== ========== ==========
16.1 Additions to plant and machinery include net financial charges and exchange differences
amounting to Rs. 83 million credit (1999: Rs. 35 million credit).
16.2 Depreciation charge for the year has been allocated as follows:
2000 1999
Cost of goods manufactured (note 26.1 ) 171,347 143,922
Administrative expenses (note 27) 8,168 6,589
----------- -----------
179,515 150,511
========== ==========
16.3 Details of operating assets sold (by negotiation)
Rs. 000s
Written down Sale
Particulars  Cost value proceeds Names of purchasers
Plant and machinery 10,763 3,651 3,575 Ghani Spinning Mills
301, Trade Centre, Block 13-A
Gulshan-e-Iqbal, Karachi
1,262 421 600 A.J. Corporation
Quality Godown, Shershah
Karachi
2,512 1,081 1,100 Webtex (Pvt) Ltd.
Suite # 108, Block-9, KDA Scheme # 5
Clifton, Karachi
6,683 2,319 2,400 Cortex Traders
1002, Trade Centre, I.I. Chundrigar Road
Karachi
4,455 1,546 1,806 Siftaq International
New Block-2, Hockey Stadium
Liaquat barracks, Karachi
206 12 -- Scrapped
Office equipment,
furniture and fixture 544 73 55 Farid & Co.
Uni Centre, I.I. Chundrigar Road
Karachi
453 54 57 Rambo Office Automation
I.I. Chundrigar Road
Karachi
814 98 35 Union Old Furniture Mart
Liaquatabad Furniture Market
Karachi
4,369 528 -- Scrapped
Transport equipment 377 124 195 Mr. Khursheed Ali
Akbari Masjid F-18/30
Pathan Colony
Karachi.
1,813 1,161 1,350 Toyota Central Motors
3, Main Shahrah-e-Faisal
Karachi
960 629 605 Grand Industries (Pvt) Ltd.
35-B, Block-6, P.E.C.H.S.
Karachi
147 16 60 Mr. Mohammed Safdar Khan
House # 36, Street # 3, Area 3A
Landhi, Karachi
120 20 43 Mr. Abdul Rauf
D-214, Block 14 Jut Lines
Karachi
657 172 335 Mr. Sibghatullah
A-143, Block T, North Nazimabad
Karachi
208 35 108 Mr. Rizwan
Flat No. C-5, Saify Plaza
Garden West
Karachi.
773 396 450 Ms. Shahnaz Khalid
140, Defence Officers Society 2
Malir Cantt, Karachi
707 289 335 Dr. Capt. Safdar Awan,
9-A/II-B Sunset Lane, Phase II, D.H.A.
Karachi
1,156 194 250 Mr. Zaki
Block 6, P.E.C.H.S
Karachi
942 309 330 Ms. Shagufta
A-7, KDA Scheme 1
Karachi
171 36 65 Ms. Yasmin Khan
House No. C/620, Parsi Colony
Sukkur, Sindh
4,619 3,548 4,608 Insurance Claim
Written down value below
Rs. 5,000 each 170 13 254 Various
------------ ------------ ------------
Total 2000  44,881 16,725 18,616
========== ========== ==========
Total 1999  9,590 3,756 5,960
========== ========== ==========
2000 1999
Rs. 000s
17. CAPITAL WORK-IN-PROGRESS
Machinery under installation 68,659 32,534
Building construction 13,110 --
Stores items held for capitalization 1,211 1,093
------------ ------------
82,971 33,627
========== ==========
18. LONG TERM LOANS AND ADVANCES
Considered good, due from
Executives 9,257 3,502
Less: Receivable within one year 3,686 1,813
------------ ------------
5,571 1,689
Other employees 6,954 4,272
Less: Receivable within one year 4,550 3,066
------------ ------------
2,404 1,206
------------ ------------
7,975 2,895
========== ==========
18.1 Loans and advances have been given for the purchase of cars, scooters and household equipment
and housing assistance in accordance with the terms of employment and are repayable in monthly
instalments.
18.2 The maximum amount due from Directors and Executives at the end of any month during the year
was Rs. NIL and Rs. 9 million respectively (1999: Rs. NIL and Rs. 4 million respectively).
18.3 Outstanding for a period exceeding three years Rs. 294 (000).
19. STORES AND SPARES
Stores and chemicals (including in transit Rs. 2 million; 44,748 38,411
1999: Rs. 8 million)
Spare parts 66,066 59,045
------------ ------------
110,814 97,456
Less: Provision for slow moving/obsolete stores and spares 4,647 --
------------ ------------
106,167 97,456
========== ==========
20. STOCK-IN-TRADE
Raw materials 275,046 206,069
Work-in-process 41,649 31,842
Finished goods 442,644 378,816
------------ ------------
759,339 616,727
========== ==========
21. TRADE DEBTS- UNSECURED
Considered good 959,909 807,023
Considered doubtful 5,634 --
------------ ------------
965,543 807,023
Less: Provision for doubtful trade debts 5,634 --
------------ ------------
959,909 807,023
========== ==========
22. LOANS, ADVANCES, PREPAYMENTS AND
OTHER RECEIVABLES - CONSIDERED GOOD
Current portion of loans and advances to employees (note 18) 8,236 4,879
Advances 51,946 41,514
Due from associated undertakings (note 22.1) -- 7,609
Prepayments and other receivables 17,399 2,366
Accrued interest 7,469 915
Sales tax refundable 13,443 11,602
Duty drawback receivable 32,801 35,245
Advance income tax - net -- 11,789
------------ ------------
131,294 115,919
========== ==========
22.1 The maximum aggregate amount due from associated undertakings at the end on any month during
the year was Rs. NIL (1999: Rs. 50 million)
23. SHORT TERM INVESTMENT
US Dollar Bonds 537,821 430,264
========== ==========
USD 9.241 million (1999: USD 8.371 million). These are under lien for borrowings referred to in note 10.1 (b)
24. CASH AND BANK BALANCES
In hand 919 263
With banks in - current accounts 2,636 1,442
- short term deposits 103,907 --
------------ ------------
107,462 1,705
========== ==========
2000 1999
Rs. 000s
25. SALES
Local 1,714,999 1,619,381
Export 2,810,237 2,749,140
------------ ------------
4,525,236 4,368,521
Less: Commission and brokerage 8,492 5,707
------------ ------------
4,516,744 4,362,814
========== ==========
26. COST OF SALES
Opening stock of finished goods 378,816 641,659
Finished goods transferred on merger 188,631 --
Add: Cost of goods manufactured (note 26.1) 3,052,926 3,197,639
Purchases and processing charges 205,490 259,427
------------ ------------
3,825,863 4,098,725
Less: Closing stock of finished goods 442,644 378,816
------------ ------------
3,383,219 3,719,909
========== ==========
26.1 Cost of goods manufactured
Raw materials consumed (note 26.2) 1,463,262 1,853,177
Stores consumed 523,486 498,470
Salaries, wages and benefits 445,239 360,605
Fuel, power and water 281,481 216,354
Insurance 27,594 20,628
Repairs and maintenance 116,492 95,845
Depreciation 171,347 143,922
Provision for slow moving/obsolete stores and spares 4,647 --
Other expenses 7,000 9,205
------------ ------------
3,040,548 3,198,206
Work-in-process
Opening 31,842 31,275
Transferred on merger 22,185 --
Closing (41,649) (31,842)
------------ ------------
12,378 (567)
------------ ------------
3,052,926 3,197,639
========== ==========
26.2 Raw materials consumed
Opening stock 206,069 162,085
Raw material transferred on merger 55,064 --
Purchases during the year 1,477,175 1,897,161
Closing stock (275,046) (206,069)
------------ ------------
1,463,262 1,853,177
========== ==========
27. ADMINISTRATIVE EXPENSES
Salaries and benefits 44,185 35,915
Rent, rates and taxes 8,892 9,006
Repairs and maintenance 5,033 3,791
Vehicle up keep 16,903 14,006
Conveyance and travelling 26,521 29,219
Printing and stationery 10,132 7,957
Postage and telecommunication 13,631 10,383
Legal and consultancy fees 2,405 4,545
Depreciation 8,168 6,589
Provision for doubtful debts 5,534 --
Auditors' remuneration (note 27.1) 153 173
Donations (note 27.2) 1,089 324
Other expenses 3,300 2,271
------------ ------------
146,046 124,179
========== ==========
27.1 Auditors' remuneration
Audit fee 110 70
Tax services 20 90
Audit of worker's profit participation fund
and other services 3 4
Out of pocket expenses 20 9
------------ ------------
153 173
========== ==========
27.2 Donations include Rs. 250(000) (1999:Rs. 250(000)) paid to Haji Alimohammed Foundation.
Mr. Iqbal Alimohammed, Chief Executive, Mr. Bashir H. Alimohammed, Director, Mr. Ghulam
Haji Alimohammed, Director and Mr. Ziad Bashir, Director are amongst the Trustees of the
Foundation.
28. SELLING EXPENSES
Freight and shipment expenses 104,674 68,371
Insurance and bank charges 1,761 1,397
Advertisement and publicity 12,144 6,559
Other expenses 9,445 11,804
------------ ------------
128,024 88,131
========== ==========
29. OTHER INCOME
Profit on sale of operating assets 1,891 2,204
Scrap sales 3,094 2,192
Provisions and unclaimed balances written back 7 537
Miscellaneous (50) 6
------------ ------------
4,942 4,939
========== ==========
30. FINANCIAL CHARGES
Mark-up on redeemable capital and
interest on long term loans 71,394 71,467
Mark-up on running finance 167,774 161,606
Interest on worker's profit participation fund 1,491 583
Bank charges 18,013 18,121
------------ ------------
258,672 251,777
Less: Interest income on - foreign currency deposits 52,924 7,549
- local currency deposits 3,188 1,070
------------ ------------
202,560 243,158
========== ==========
31. PROVISION FOR TAXATION
Deferred 3,200 --
Current 62,000 27,000
Prior 2,450 --
------------ ------------
67,650 27,000
========== ==========
32. UNAPPROPRIATED PROFIT BROUGHT FORWARD
Balance at the beginning of the year 5,320 2,119
Transferred on merger 84,337 --
------------ ------------
89,657 2,119
========== ==========
33. EARNINGS PER SHARE
Profit for the year 558,151 154,766
========== ==========
Number of shares
Average ordinary shares in issue during the year 28,625,971 28,625,971
Ordinary shares under issue 5,447,326 --
------------ ------------
34,073,297 28,625,971
========== ==========
Earnings per share (Rs.) 16.38 5.41
34. REMUNERATION OF DIRECTORS AND EXECUTIVES
Rs. 000s
2000 1999
Chief  Directors  Executives  Total Chief  Directors  Executives  Total
Executive  Executive 
Managerial remuneration 1,200 2,460 57,418 61,078 915 1,175 35,869 37,959
House rent allowance 480 1,014 19,643 21,137 393 507 12,938 13,838
Utility allowance 120 246 4,767 5,133 92 118 3,233 3,443
Other allowances -- -- 2,677 2,677 -- -- 2,010 2,010
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
1,800 3,720 84,505 90,025 1,400 1,800 54,050 57,250
========== ========== ========== ========== ========== ========== ========== ==========
Number of persons 1 4 230 235 1 2 169 172
34.1 The Chief Executive, Directors and certain Executives are provided with free use of Company cars.
34.2 The Chief Executive and some Directors are also provided with free residential telephones.
34.3 Aggregate amount charged in the accounts for the year for meeting fees to three Directors was
Rs. 4 (000) (1999: five Directors Rs. 5 (000)).
35. TRANSACTIONS WITH ASSOCIATED UNDERTAKINGS
The Company purchased from and sold to associated undertakings goods, materials and services in the
aggregate sum of Rs. 1 million and Rs. NIL respectively (1999: Rs. 9 million and Rs. 103 million
respectively). The basis of transactions is prevailing market rates.
36. CAPACITY AND PRODUCTION
2000 1999
(000s) (000s)
Unit Capacity Production Working Capacity Production
Cloth Sq. metres
(50 Picks converted)  47,221 46,923 3 shifts 37,621 37,152
Yarn Kgs. 22,922 23,814 3 shifts 23,021 22,396
(20 Counts converted)
37. FINANCIAL ASSETS AND LIABILITIES
Rs. 000s
Interest/mark-up bearing Non Interest/mark-up bearing
Maturity Maturity Sub Maturity Maturity Sub 2000 1999
upto one after one Total upto one after one Total Total Total
year year year year
Financial assets
Long term investment  -- -- -- -- -- -- -- 50
Long term loans and advances -- -- -- -- 7,975 7,975 7,975 2,895
Long term deposits  -- -- -- -- 3,201 3,201 3,201 2,303
Trade debts -- -- -- 959,909 -- 959,909 959,909 807,023
Loans, advances, prepayments
and other receivables     7,469 -- 7,469 9,399 -- 9,399 16,868 20,461
Short term investment      537,821 -- 537,821 -- -- -- 537,821 430,264
Cash and bank balances         103,907 -- 103,907 3,555 -- 3,555 107,462 1,705
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
649,197 -- 649,197 972,863 11,176 984,039 1,633,236 1,264,701
========== ========== ========== ========== ========== ========== ========== ==========
Financial liabilities
Redeemable capital 32,445 -- 32,445 -- -- -- 32,445 63,147
Long term loans 167,344 363,934 531,278 -- -- -- 531,278 507,501
Short term running finance 1,537,221 -- 1,537,221 -- -- -- 1,537,221 1,545,177
Short term loans -- -- -- 210,217 -- 210,217 210,217 --
Creditors and accrued liabilities 31,453 -- 31,453 394,893 -- 394,893 426,346 323,045
Proposed dividend -- -- -- 238,513 -- 238,513 238,513 71,565
Guarantees -- -- -- 82,000 -- 82,000 82,000 38,000
Commitments -- -- -- 775,000 -- 775,000 775,000 79,000
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
1,768,463 363,934 2,132,397 1,700,623 -- 1,700,623 3,833,020 2,627,435
========== ========== ========== ========== ========== ========== ========== ==========
37.1 Concentration of credit risk
Credit risk represents the accounting loss that would be recognized at the reporting date if counterparts
failed to perform as contracted. The Company believes that it is not exposed to major concentration of credit
risk.
37.2 Foreign exchange risk management
Foreign currency risk arises when receivables and payables exist due to transactions with foreign
undertakings. Payables exposed to foreign currency risk are covered partially through-forward foreign
exchange contracts and partially through hedging by purchase of US Dollar Bonds.
37.3 Fair value of financial assets and liabilities
The carrying amounts of the financial assets and liabilities approximate their fair values.
38. NUMBER OF EMPLOYEES
2000 1999
Number of employees at 30 September 5,984 5,684
========== ==========
39. GENERAL
39.1 Corresponding figures have been rearranged where necessary for comparison purposes and are in
respect of Gul Ahmed Textile Mills Limited only.
39.2 Figures have been rounded off to the nearest thousand rupees.
IQBAL ALIMOHAMMED JAWAID IQBAL
Chief Executive Director
PATTERN OF SHAREHOLDING
As AT SEPTEMBER 30, 2000
No. of Shareholders Shareholding Shares Held
668 From 1 to 100 26,705
687 From 101 to 500 147,629
118 From 501 to 1,000 84,554
134 From 1,001 to 5,000 288,432
14 From 5,001 to 10,000 92,713
10 From 10,001 to 15,000 124,036
1 From 15,001 to 20,000 16,315
4 From 20,001 to 25,000 91,584
1 From 25,001 to 30,000 26,881
3 From 30,001 to 35,000 93,953
1 From 35,001 to 40,000 38,629
2 From 40,001 to 45,000 82,553
2 From 55,001 to 60,000 114,486
3 From 60,001 to 65,000 186,744
1 From 65,001 to 70,000 67,765
6 From 80,001 to 85,000 490,779
2 From 85,001 to 90,000 174,048
2 From 105,001 to 110,000 215,161
1 From 110,001 to 115,000 111,683
1 From 120,001 to 125,000 120,519
2 From 125,001 to 130,000 256,383
1 From 130,001 to 135,000 134,740
1 From 135,001 to 140,000 135,128
1 From 140,001 to 145,000 140,433
4 From 145,001 to 150,000 588,282
1 From 160,001 to 165,000 163,185
4 From 165,001 to 170,000 672,970
1 From 205,001 to 210,000 206,164
1 From 225,001 to 230,300 229,255
1 From 270,001 to 275,300 272,461
2 From 275,001 to 280,300 558,325
1 From 280,001 to 285,300 281,116
1 From 285,001 to 290,300 288,658
1 From 295,001 to 300,000 299,980
1 From 300,001 to 305,000 300,781
5 From 305,001 to 310,000 1,537,181
1 From 315,001 to 320,000 319,600
1 From 355,001 to 360,000 357,281
1 From 415,001 to 420,000 419,404
3 From 420,001 to 425,000 1,269,905
1 From 430,001 to 435,000 432,832
2 From 520,001 to 525,000 1,047,510
3 From 530,001 to 535,000 1,600,182
1 From 550,001 to 555,000 552,032
1 From 595,001 to 600,000 595,960
1 From 850,001 to 855,000 850,406
1 From 1,185,001 to 1,190,000 1,186,359
1 From 1,255,001 to 1,260,000 1,257,414
1 From 1,300,001 to 1,305,000 1,303,573
1 From 1,320,001 to 1,325,000 1,323,618
1 From 1,660,001 to 1,665,000 1,662,162
1 From 1,735,001 to 1,740,000 1,738,609
1 From 1,870,001 to 1,875,000 1,874,326
1 From 2,170,001 to 2,175,000 2,174,587
----------- -----------
1,712 28,625,971
========== ==========
Categories of Shareholders Number Shares Held Percentage
Individuals 1,676 22,371,312 78.15
Investment Companies 11 995,234 3.48
Insurance Companies 6 1,480,197 5.17
Joint Stock Companies 6 14,732 0.05
Modaraba Companies 4 111,072 0.39
Financial Institutions 3 153,028 0.53
Foreign Investors 2 3,478,160 12.15
Charitable Institutions 2 17,478 0.06
Government Departments 2 4,758 0.02
----------- ----------- -----------
1,712 28,625,971 100.00
========== ========== ==========
Google
 
Web Paksearch.com




Home | About Us | Contact | Information Resources