| JDW Sugar Mills 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 Annual General 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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| Statement
of Changes in Equity and Reserves |
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| Notes
to the Accounts |
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| Pattern
of shareholding |
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| COMPANY
INFORMATION |
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| BOARD
OF DIRECTORS: |
Syed Ahmad Mahmood |
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Chairman |
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Mr. Jahangir Khan Tareen |
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Chief Executive |
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Mrs. Amina Tareen |
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Mrs. Sameera Mahmood |
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Syed Ali Akbar Mahmood |
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|
Mr. Ijaz Ahmad Phulpoto |
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|
Mr. Muhammad Nawaz |
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| COMPANY
SECRETARY: |
Mr. Asad Rashid |
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| AUDITORS: |
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M/s Taseer Hadi &
Khalid & Co. |
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Chartered Accountants |
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| LEGAL
ADVISOR: |
Cornelius, Lane &
Mufti |
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| BANKERS
TO THE COMPANY: |
Habib Bank Limited |
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Muslim Commercial Bank
Limited |
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|
National Development
Finance Corporation |
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|
The Bank of Punjab |
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|
Escort Investment Bank
Limited |
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| REGISTERED
OFFICE: |
32-N, Industrial Area |
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Gulberg - II, Lahore. |
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| FACTORY
SITE: |
Mouza Sharin, Jamal Din
Wali |
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Distt. Rahim Yar Khan. |
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| NOTICE
OF MEETING |
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| Notice
is hereby given that 11th Annual General Meeting of JDW Sugar Mills Limited
will be held at |
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| Company's
Registered Office, 32-N, Industrial Area, Gulberg- II, Lahore, on Monday,
30th April, 2001 |
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| at
09:00 A.M. to transact the following business: |
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| 1.
To confirm the minutes of Extra Ordinary General Meeting held on 31st day of
October 2000. |
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| 2.
To receive, consider and adopt the audited accounts of the company for the
year ended 30th |
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| September
2000 together with the report of the Auditors' and Director's thereon. |
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| 3.
To appoint Auditors of the Company for the year 2000-01 and fix their
remuneration. The retiring |
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| Auditors'
Messers Taseer Hadi Khalid & Co. Chartered Accountants, being eligible,
have offered |
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| themselves
for reappointment as Auditors of the Company. |
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| 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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| Lahore |
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|
(ASAD RASHID) |
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| Dated:
April 08, 2001 |
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COMPANY SECRETARY |
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| NOTES: |
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| 1.
The shares transfer books of the company will remain closed and no transfer
of shares will be |
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| accepted
for registration from 23rd April, 2001 to 30th April, 2001 (both days
inclusive). |
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| 2.
A member entitled to attend and vote at the General Meeting may appoint
another member as his |
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| /
her proxy to attend and vote instead of him / her behalf at the meeting.
Proxies must be |
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| deposited
at the Company's at the Registered Office not less than forty eight hours
before the |
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| time
of holding of meeting. |
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| 3.
Members are requested to notify immediately the change of address, if any. |
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JDW SUGAR MILLS LIMITED |
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Registered Office: 32-N, Industrial AREA, |
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|
Gulberg - II, Lahore. |
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| DIRECTORS'
REPORT |
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| Dear
Shareholders, |
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| Your
directors are pleased to present the 11th Annual audited Accounts of the
company for the year |
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| ended
September 30, 2000. The period under review is the 7th full crushing season
availed by the |
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| company
and comparison of cane crushing and sugar produced is as under:- |
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|
1999-2000 |
1998-1999 |
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| Season Started |
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|
01-11-1999 |
20-11-1998 |
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| Season Closed |
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|
10-03-2000 |
27-04-1999 |
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| Days worked |
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|
131 |
159 |
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| Average
daily crushing |
|
(Tonnes) |
3,730 |
4,309 |
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| Sugar
Cane Crushed |
|
(Tonnes) |
488,665 |
685,097 |
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| Sugar
Cane Crushed |
|
(Maunds) |
13,092,508 |
18,355,390 |
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| Sugar recovery |
|
(%) |
9.216 |
9.106 |
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| Sugar
production |
|
(Tonnes) |
45,025 |
62,408 |
|
| Molasses
recovery |
|
(%) |
4.590 |
4.429 |
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| Molasses
production |
|
(Tonnes) |
22,424 |
30,348 |
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| In
the year under review, the company achieved the production level of 45,025
metric tonnes which |
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| was
comparatively less than the target of 60,000 metric tonnes |
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| FINANCIAL
RESULTS |
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| Unfortunately,
our total production was even less than last year. We recorded a net loss of |
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| Rs.41,872,279
for the year. |
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| The
drop in production was due to shortage of cane due to low yield in the area
during season 1999- |
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| 2000
which is under review due to low monsoon and Wapda's policy change of
disallowing flat rate |
|
| facility
for electric tubewells which led to sharp reduction in water availability for
sugarcane crop. |
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| Our
efforts on developing sugarcane in our area and working with farms will
continue as we feel that |
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| good
sugar cane production is the key to long term success. |
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| Further
the efficiency of the plant could not be fully achieved due to design
problems in the equipment |
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| installed
to remove the bottlenecks in the process to minimize the losses in
production. This was due |
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| to
mistakes by foreign suppliers and quite beyond the control of management. |
|
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| However,
our efforts for improving area and yield of sugarcane production are
continuing. |
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| CURRENT
SEASON |
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| The
position since the start of season till end of season is summarized below. |
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|
2000-2001 |
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| Season Started |
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|
28-10-2000 |
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| Season Closed |
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|
31-03-2001 |
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| Days worked |
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|
155 |
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| Sugar
Cane Crushed |
|
(Tonnes) |
643,056 |
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| Sugar recovery |
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(%) |
9.11 |
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| Sugar Bagged |
|
(Tonnes) |
58,441 |
|
| Raw
Sugar Remelted |
|
(Tonnes) |
8,860 |
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| Total
Sugar Bagged |
|
(Cane+Raw) |
1,346,020 |
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| Molasses
production |
|
(Tonnes) |
30,429 |
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| By
the grace of Allah Almighty the season has been good and availability of cane
was regular as |
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| during
the sowing season the shortage of water was well tackled by the company's
experts by |
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| providing
peter engines to the farmers on partial payment and balance payment with
supply of cane |
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| during
the season which did not effect the yield and sowing. |
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| In
addition 15,000 M. Tonnes of Raw Sugar has been imported for remelting and
refining to fill the gap |
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| of
shortage of sugar in the country in which incentives were given by the
government on import duty. |
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| After
remelting of the raw sugar the sugar produced will be approximately 73,000 M.
Tonnes. As |
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| reported
in the last report that company planned the enhancement but instead of
enhancing capacity, |
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| the
company preferred the addition of equipment to increase the efficiency of the
plant through |
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| decreasing
the losses in recovery and by not taking the cleaning during the season due
to the addition |
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| of
alternate vessels. |
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| As
there is still water shortage in the country, the company stepped up the
putting up supply of Peter |
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| engines
in the area without .waiting for the canal water to give the grower an
incentive to grow cane in |
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| the
area to have better yields. |
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| Insha
Allah, the comparative performance will be better than other sugar mills in
Punjab because of |
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| timely
action and interaction with the growers of our area. |
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| SHARE
HOLDING |
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| Pattern
of share holding by shareholders of the company as at September 30, 2000, as
required |
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| under
Section 236(2) (d) of Companies Ordinance, 1984 is enclosed. |
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| AUDITORS |
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| The
present Auditors Messrs. Taseer Hadi Khalid & Co. , Chartered Accountants
retire and being |
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| eligible
offer themselves for reappointment. |
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| APPRECIATIONS |
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| The
Staff of your company are enthusiastic and professional. We would remiss in
not recoding our |
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| sincere
appreciation for their hard work. |
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|
On behalf of the Board |
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|
(JAHANGIR KHAN TAREEN) |
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| Lahore:
April 08, 2001 |
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CHIEF EXECUTIVE |
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| AUDITORS'
REPORT TO THE MEMBERS |
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| We
have audited the annexed balance sheet of JDW Sugar Mills Limited as at
September 30, 2000 |
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| and
the related profit and loss account, cash flow statement and statement of
changes in equity, |
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| together
with the notes forming part thereof, for the year then ended and we state
that we have |
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| obtained
all the information and explanations which, to the best of our knowledge and
belief, were |
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| necessary
for the purposes of our audit. |
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| It
is the responsibility of the company's management to establish and maintain a
system of internal |
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| control,
and prepare and present the above said statements in conformity with the
approved |
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| accounting
standards and the requirements of the Companies Ordinance, 1984. Our
responsibility is |
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| to
express an opinion on these statements based on our audit. |
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| We
conducted our audit in accordance with auditing standards as applicable in
Pakistan. These |
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| standards
require that we plan and perform the audit to obtain reasonable assurance
about whether |
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| the
above said statements are free of any material misstatement. An audit
includes examining, on a |
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| test
basis, evidence supporting the amounts and disclosures in the above said
statements. An audit |
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| also
includes assessing the accounting policies and significant estimates made by
management, as |
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| well
as, evaluating the overall presentation of the above said statements. We
believe that our audit |
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| provides
a reasonable basis for our opinion and, after due verification, we report
that: |
|
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| a)
in our opinion, proper books of account have been kept by the company as
required by the |
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| Companies
Ordinance, 1984; |
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|
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| b)
in our opinion: |
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|
|
|
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| (i)
the balance sheet and profit and loss account, together with the notes
thereon have |
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| been
drawn up in conformity with the Companies Ordinance, 1984, and are in |
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| agreement
with the books of account and are further in accordance with accounting |
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| policies
consistently applied; |
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|
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| (ii)
the expenditure incurred during the year was for the purpose of the company's |
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| business; and |
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|
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| (iii)
the business conducted, investments made and the expenditure incurred during
the |
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| year
were in accordance with the objects of the company; |
|
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| c)
in our opinion and to the best of our information and according to the
explanations given to |
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| us,
the balance sheet, profit and loss account, cash flow statement and statement
of changes |
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| 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 |
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| state
of the company's affairs as at September 30, 2000 and of the loss, its cash
flows and |
|
| statement
of changes in equity for the year then ended; and |
|
|
| d)
without qualifying our opinion, we draw attention to: |
|
|
| *
notes 2.2 and 24 to the financial statements. The going concern position of
the company is |
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| dependent
upon the continued support of financial institutions and success of its
future |
|
| business plans. |
|
|
|
|
|
|
| *
notes 6.1.1 to 6.1.3 to the financial statements whereby there is a degree of
uncertainty |
|
| inherent
in the deferral arrangement as explained in these notes. |
|
|
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| e)
in our opinion no Zakat was deductible by the company under Section 7 of the
Zakat and Ushr |
|
| Ordinance, 1980. |
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|
TASEER HADI KHALID & CO. |
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| LAHORE
April 08, 2001 |
|
Chartered Accountants |
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|
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|
| BALANCE
SHEET AS AT SEPTEMBER 30, 2000 |
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|
Note |
2000 |
1999 |
|
|
|
|
(Rupees) |
(Rupees) |
|
|
|
| CAPITAL
AND LIABILITIES |
|
|
|
| SHARE
CAPITAL AND RESERVES |
|
|
|
| AUTHORISED
CAPITAL |
|
| 25,000,000
ordinary shares of Rs. 10/- each |
|
250,000,000 |
250,000,000 |
|
|
|
|
========== |
========== |
|
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|
| ISSUED,
SUBSCRIBED AND PAID-UP CAPITAL |
|
| 20,577,200
Ordinary shares of Rs. 10/- each |
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| fully
paid in cash |
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|
205,772,000 |
205,772,000 |
|
|
| ACCUMULATED
(LOSS)/PROFIT |
|
(11,656,538) |
30,215,741 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
194,115,462 |
235,987,741 |
|
|
|
|
|
|
| LONG
TERM LOANS- SECURED |
3 |
153,251,783 |
141,431,070 |
|
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| LIABILITIES
AGAINST ASSETS SUBJECT TO |
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| FINANCE
LEASE |
|
4 |
41,874,296 |
47,351,855 |
|
|
| LONG
TERM AND DEFERRED LIABILITIES |
|
| Staff
retirement benefits |
|
|
32,648,092 |
24,704,850 |
|
| Loans
from directors |
|
5 |
58,161,555 |
28,683,675 |
|
| Other
long term liabilities |
|
6 |
122,079,664 |
113,919,180 |
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
| Current
and overdue portion of long term loans and |
|
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| liabilities
against assets subject to finance lease |
7 |
191,469,389 |
120,270,025 |
|
| Short
term borrowings- secured |
|
8 |
21,107,064 |
80,759,044 |
|
| Creditors,
accrued and other liabilities |
9 |
220,193,628 |
200,526,728 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
432,770,081 |
401,555,797 |
|
| CONTINGENCIES
AND COMMITMENTS |
10 |
0 |
0 |
|
|
|
|
------------------ |
------------------ |
|
|
|
1,034,900,933 |
993,634,168 |
|
|
========== |
========== |
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|
| These
accounts should be read in conjunction with the annexed notes. |
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|
|
| LAHORE:
APRIL 08, 2001 |
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|
|
| PROPERTY
AND ASSETS |
|
|
|
| TANGIBLE
FIXED ASSETS |
|
| Operating
assets - at cost less accumulated |
|
| depreciation |
|
11 |
753,368,187 |
639,175,662 |
|
|
| CAPITAL
WORK IN PROGRESS |
|
| - Civil works |
|
|
3,079,752 |
64,102,108 |
|
| -
Plant and machinery |
|
|
0 |
50,000,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
3,079,752 |
114,102,108 |
|
| STORES
HELD FOR CAPITAL EXPENDITURE |
12 |
20,943,100 |
20,943,100 |
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Stores,
spare and loose tools |
|
13 |
55,870,420 |
47,077,365 |
|
| Stock in trade |
|
14 |
10,062,985 |
253,660 |
|
| Trade
debtors-Unsecured, considered good |
15 |
35,260,400 |
44,158,889 |
|
| Advances,
deposits, prepayments and other |
|
|
| receivables |
|
16 |
155,157,130 |
125,426,675 |
|
| Cash
and bank balances |
|
17 |
1,158,959 |
2,496,709 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
257,509,894 |
219,413,298 |
|
|
|
|
------------------ |
------------------ |
|
|
1,034,900,933 |
993,634,168 |
|
|
|
========== |
========== |
|
|
|
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
Note |
(Rupees) |
(Rupees) |
|
|
| SALES |
|
18 |
691,140,813 |
1,152,666,030 |
|
| COST
OF SALES |
|
19 |
626,721,623 |
964,035,243 |
|
|
|
|
------------------ |
------------------ |
|
| GROSS
PROFIT |
|
|
64,419,190 |
188,630,787 |
|
|
|
| OPERATING
EXPENSES |
|
| Administrative |
|
20 |
14,780,790 |
15,583,330 |
|
| Selling
and distribution |
|
21 |
5,511,371 |
17,681,479 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
20,292,161 |
33,264,809 |
|
|
|
|
------------------ |
------------------ |
|
| OPERATING
PROFIT |
|
|
44,127,029 |
155,365,978 |
|
|
|
|
|
|
| FINANCIAL
CHARGES |
|
22 |
85,693,497 |
79,172,604 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(41,566,468) |
76,193,374 |
|
|
|
|
|
|
| OTHER
(LOSS)/GAIN |
|
23 |
(305,811) |
455,340 |
|
|
|
|
------------------ |
------------------ |
|
| NET
(LOSS)/PROFIT FOR THE YEAR BEFORE |
|
| PROVISION
FOR WPPF AND WWF |
|
(41,872,279) |
76,648,714 |
|
| PROVISION
FOR: |
|
|
|
| -
WORKERS' PROFIT PARTICIPATION FUND |
|
0 |
3,832,436 |
|
| -
WORKERS' WELFARE FUND |
|
0 |
361,272 |
|
|
|
|
------------------ |
------------------ |
|
| NET
(LOSS)/PROFIT FOR THE YEAR |
|
(41,872,279) |
72,455,006 |
|
| ACCUMULATED
PROFIT/(LOSS) BROUGHT |
|
|
|
| FORWARD |
|
|
30,215,741 |
(42,239,265) |
|
|
|
------------------ |
------------------ |
|
| ACCUMULATED
(LOSS)/PROFIT CARRIED |
|
| FORWARD |
|
|
( 11,656,538) |
30,215,741 |
|
|
|
|
========== |
========== |
|
| (LOSS)/EARNINGS
PER SHARE |
|
28 |
(2.03) |
3.52 |
|
|
|
|
========== |
========== |
|
|
| These
accounts should be read in conjunction with the annexed notes. |
|
|
| LAHORE:
APRIL 08, 2001 |
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
|
(Rupees) |
(Rupees) |
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
|
|
| Cash
generated from operations |
|
| (Loss)/Profit
for the year |
|
(41,872,279) |
72,455,006 |
|
|
| Adjustments
for items not involving movement of cash |
|
| Depreciation |
|
|
47,576,868 |
41,134,350 |
|
| Loss/(Profit)
on disposal of fixed assets |
|
110,600 |
(418,506) |
|
| Financial
charges |
|
85,693,497 |
79,172,604 |
|
| Provision
for workers' profit participation fund |
|
0 |
3,832,436 |
|
| Provision
for staff retirement benefits |
|
3,712,844 |
3,236,646 |
|
|
|
------------------ |
------------------ |
|
|
|
137,093,809 |
126,957,530 |
|
| (Increase)/decrease
in current assets |
|
|
|
| Stores,
spares and loose tools |
|
(8,793,055) |
(3,399,413) |
|
| Advances,
deposits, prepayments and other receivables |
(23,673,623) |
4,576,756 |
|
| Stock in trade |
|
|
(9,809,325) |
135,175,724 |
|
| Trade debts |
|
|
8,898,489 |
(12,402,258) |
|
|
|
------------------ |
------------------ |
|
|
|
(33,377,514) |
130,749,635 |
|
|
|
|
|
|
| Increase/(decrease)
in current liabilities |
|
| Short
term borrowings |
|
(59,651,980) |
(140,089,216) |
|
| Creditors,
accrued and other liabilities |
|
3,259,150 |
21,544,889 |
|
|
|
------------------ |
------------------ |
|
|
|
(56,392,830) |
(118,544,327) |
|
|
|
------------------ |
------------------ |
|
| Cash
generated from operations |
|
5,451,186 |
211,617,844 |
|
|
| Financial
charges paid |
|
(82,861,027) |
(104,793,011) |
|
| Staff
retirement benefits paid |
|
(501,383) |
(1,653,891) |
|
| Taxes
(paid)/adjusted |
|
(1,277,572) |
275,881 |
|
|
------------------ |
------------------ |
|
| NET
CASH (OUTFLOW)/INFLOW FROM OPERATING |
|
| ACTIVITIES
CARRIED FORWARD |
|
(79,188,796) |
105,446,823 |
|
|
| NET
CASH (OUTFLOW)/INFLOW FROM OPERATING |
|
| ACTIVITIES
BROUGHT FORWARD |
|
(79,188,796) |
105,446,823 |
|
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
| Additions
to fixed assets |
|
|
(51,252,635) |
(139,458,960) |
|
| Sale
proceeds from disposal of fixed assets |
|
395,000 |
820,000 |
|
| Increase
in lease deposits |
|
|
(2,100,0000) |
(3,183,489) |
|
| Additions
to stores held for capital expenditure |
|
0 |
(20,943,100) |
|
|
|
|
------------------ |
------------------ |
|
| NET
CASH OUTFLOW FROM INVESTING ACTIVITIES |
(52,957,635) |
(162,765,549) |
|
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
| Increase
in obligations under finance lease |
|
159,944,611 |
53,715,662 |
|
| Increase/(Decrease)
in long term loans |
|
74,222,265 |
(20,598,929) |
|
| Increase
in loans from directors |
|
|
29,477,880 |
0 |
|
| Increase
in deferred liabilities |
|
|
11,114,075 |
25,127,217 |
|
|
|
|
------------------ |
------------------ |
|
| NET
CASH INFLOW FROM FINANCING ACTIVITIES |
130,808,681 |
58,243,950 |
|
|
|
------------------ |
------------------ |
|
| NET
(DECREASE)/INCREASE IN CASH AND |
|
| CASH
EQUIVALENTS |
|
|
(1,337,750) |
925,224 |
|
|
|
|
|
|
| Cash
and cash equivalents at the beginning of the year |
2,496,709 |
1,571,485 |
|
|
|
|
------------------ |
------------------ |
|
| CASH
AND CASH EQUIVALENTS AT THE END OF THE YEAR |
1,158,959 |
2,496,709 |
|
|
|
|
========== |
========== |
|
|
|
|
| These
accounts should be read in conjunction with the annexed notes. |
|
|
| LAHORE:
APRIL 08, 2001 |
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
| STATEMENT
OF CHANGES IN EQUITY AND RESERVES |
