| Kohinoor Power Company Limited |
|
|
|
|
|
|
|
| Annual
Report 2000 |
|
|
|
| CONTENTS |
|
|
| Company
Information |
|
| Notice
of Annual General Meeting |
|
| Directors'
Report to the Shareholders |
|
| Pattern
of Holding of Shares |
|
| Auditors'
Report to the Members |
|
| Balance
Sheet |
|
| Profit
& Loss Account |
|
| Cash
Flow Statement |
|
| Notes
to the Accounts |
|
|
|
| COMPANY
INFORMATION |
|
|
| BOARD
OF DIRECTORS |
|
| Mr.
M. Naseem Saigol |
|
Chairman/Chief Executive |
|
| Mr.
M. Azam Saigol |
|
| Mr.
Shahid Sethi |
|
| Mr.
Imran Iqbal |
|
| Mr.
Muhammad Ilyas Bajwa |
|
| Mr.
Muhammd Asif Bajwa |
|
| Syed
Arshad A'la |
|
| (ICP
Nominee) |
|
|
| COMPANY
SECRETARY |
|
| Sheikh
Muhammad Shakeel, ACA |
|
|
| AUDITORS |
|
| M/s
Manzoor Hussain Mir & Co. |
|
| Chartered
Accountants |
|
|
| BANKERS |
|
| Askari
Commercial Bank Limited |
|
| Faysal
Bank Limited |
|
| Habib
Bank Limited |
|
| Muslim
Commercial Bank Limited |
|
| National
Development Finance Corporation |
|
| National
Bank of Pakistan |
|
| Union
Bank Limited |
|
|
| REGISTERED
OFFICE |
|
| 06-Egerton
Road, |
|
| Lahore |
|
| Tel:
6306131 (5 Lines) |
|
|
| WORKS |
|
| -
Kohinoor Nagar, |
|
| Faisalabad |
|
| -
51- Km, Multan Road, |
|
| Bhai Pheru. |
|
|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
|
| Notice
is hereby given that the Ninth Annual General Meeting of the Shareholders of
KOHINOOR POWER |
|
| COMPANY
LIMITED will be held on Saturday 23 December 2000 at 09:30 A.M. at 06-Egerton
Road, Lahore, |
|
| the
Registered Office of the Company to transact the following business:- |
|
|
| 1.
To confirm the minutes of Eighth Annual General Meeting held on 31 December
1999. |
|
|
| 2.
ToreceiveandadopttheAnnualAuditedAccountsfortheyearended30June 2000 along
with |
|
| Directors'
and Auditors' Reports thereon. |
|
|
| 3.
To approve payment of Cash Dividend @ 10% (Re. 1 per share) as recommended by
the Board. |
|
|
| 4.
To appoint Auditors to hold office till the conclusion of the next Annual
General Meeting and to fix their |
|
| remuneration. |
|
|
| 5.
Any other business with the permission of the Chair. |
|
|
|
By Order of the Board |
|
|
| Lahore:
December 01, 2000 |
|
(Sheikh Muhammad Shakeel) |
|
|
Company Secretary |
|
|
| NOTES: |
|
| 1.
The Share Transfer Books of the Company will remain closed from 23 Dec. 2000
to |
|
| 29
December 2000 (both days inclusive). Transfers received in order at
06-Egergton Road, |
|
| Lahore
the Registered Office of the Company upto the close of Business on 22
December 2000 |
|
| will
be treated in time for the payment of dividend to the Transferees. |
|
|
| 2.
A member entitled to attend and vote at this meeting may appoint another
member as proxy. Proxies |
|
| in
order to be effective, must be received at the Registered Office of the
Company not later than |
|
| forty-eight
hours before the time of the meeting and must be duly stamped, signed and
witnessed. |
|
|
| 3.
Members whose shares are deposited with Central Depository System (CDS) are
requested to |
|
| bring
their original National identity Cards along with their Account Numbers in
CDS for attending |
|
| the meeting. |
|
|
| 4.
Members of all recognized Fiqahs may file with the Company their declarations
(if any) for non |
|
| -deduction of Zakat. |
|
|
| 5.
Members are requested to notify the Company change in their addresses, if
any. |
|
|
|
| DIRECTORS'
REPORT TO THE SHAREHOLDERS |
|
|
| Your
Directors pleased to present the 9th Annual Report of the company together
with Auditors' Report for |
|
| the
year ended June 30,2000. |
|
|
| OPERATIONS |
|
| During
the year under review, your company generated 70.470 million units as
compared to last years' |
|
| 91.598
million units. The reason for lower generation is the reduced demand from our
customer M/s |
|
| Kohinoor
Industries Limited. Our customer as informed in our earlier reports has
closed its outdated |
|
| 60,000
spindles which resulted in reduction of electricity demand by it. |
|
|
| FINANCIAL
RESULTS |
|
| During
the financial year under review, the profits of the company has decreased
mainly due to |
|
| phenomenal
increase in the price of furnace oil and high-speed diesel oil. Furnace oil
price has increased |
|
| four
times during the year ended June 30,2000 and reached to the level of Rs.
9,680/- per ton (net of |
|
| sales
tax) as against per ton .price of Rs. 5,278.7/-(net of sales tax) at the
beginning of the year, thus |
|
| showing
an increase of 83.38%. The summarized position of the financial results is as
under: |
|
|
|
2000 |
1999 |
|
|
(Rupees in
Thousand) |
|
|
| Gross profit |
|
37,256 |
96,601 |
|
| Administrative
& General Expenses |
|
2,549 |
1,977 |
|
|
------------ |
------------ |
|
| Operating
profit |
|
34,707 |
94,624 |
|
| Financial
charges |
|
39,834 |
58,840 |
|
| Other
income |
|
43 |
1,777 |
|
| Unusual
& non recurring items |
|
35,936 |
-- |
|
|
------------ |
------------ |
|
|
35,979 |
1,777 |
|
|
------------ |
------------ |
|
|
30,852 |
37,561 |
|
| Workers'
profit participation fund |
|
1,542 |
1,878 |
|
|
------------ |
------------ |
|
| Profit
for the year |
|
29,310 |
35,683 |
|
| Un-appropriated
profit brought forward |
|
1,606 |
923 |
|
|
------------ |
------------ |
|
| Profit
available for appropriation |
|
30,916 |
36,606 |
|
| Appropriations |
|
| Proposed
cash dividend @ 10% (1999 @ 12.5%) |
|
12,000 |
15,000 |
|
| Transferred
to General Reserves |
|
18,000 |
20,000 |
|
|
------------ |
------------ |
|
|
30,000 |
35,000 |
|
|
------------ |
------------ |
|
| Un-appropriated
profit carried forward to Balance Sheet |
|
916 |
1,606 |
|
|
========== |
========== |
|
| EARNING
PER SHARE |
|
| In
the light of financial results for the year under review the earning per
share comes to Rs. 2.443 |
|
| (1999
Rs. 2.97) |
|
|
| FUTURE
PROSPECTS |
|
| With
the deregulation of the furnace oil price and elimination of freight pool
system by the Government of |
|
| Pakistan,
price of furnace oil has been increased by almost 55 % since 1st July 2000.
This will have |
|
| substantial
adverse impact on the profitability of the company. However, upward revision
in the electricity |
|
| tariff
by WAPDA till the reporting date and expected increase in tariff as requested
by WAPDA to NEPRA |
|
| would
to certain extent will counter the adverse impact of increase in furnace oil
prices. 'The company has |
|
| successfully
shifted and erected the 3rd generating set at Chunian industrial Estate
nearby to its two sister |
|
| concerns
namely M/S Azam Textile Mills Limited and Saritow Spinning Mills Limited.
Th(~ generating set |
|
| has
started supplying electricity to its sisters concerns. This has resulted the
maximum utilization of our |
|
| generating
capacity. The turnover of the company will increase by almost 35% in the
current financial |
|
| year.
This has positive impact on the profitability of the company but future
profitability of the Company is |
|
| mainly
dependent on the increase in electricity tariff and reduction in furnace oil
price. |
|
|
| DIVIDEND |
|
| Your
directors are pleased to recommend a cash dividend @ 10 % (Re. 1 per share)
out of the profits |
|
| earned
during the year. |
|
|
| AUDITORS
AND THEIR REPORT |
|
| The
present auditors M/s. Manzoor Hussain Mir & Company, Chartered
Accountants, retire and being |
|
| eligible,
offer themselves for re-appointment. |
|
|
| No
interest has been charged on the amount recoverable from the customer mainly
due to the substance of the |
|
| transaction
(trade debt) on the one hand and reduced discount rate allowed to buyer on
the other hand. In |
|
| addition
to prompt payments received from the customers, the Company also managed to
receive amount |
|
| against
receivable balance in the current year. |
|
|
| Provisions
has not been made for penalty imposed under section 12(6) of Corporate Assets
Tax and Tax on |
|
| Bonus
Shares. We have filed appeals before CIT (Appeals) where the matter is
subjudice. |
|
|
| PATTERN
OF SHAREHOLDING |
|
| A
statement-showing pattern of shareholding as on June 30, 2000 is annexed. |
|
|
| ACKNOWLEDGMENT |
|
| We
wish to thank to our banks, financial institutions and shareholders for their
continued support and |
|
| confidence
on the company. We are pleased to record our appreciation of the services
rendered by the |
|
| employees
and hope that the same spirit of devotion will continue in future. |
|
|
|
For and on behalf of the
Board |
|
| Lahore |
|
| December
01,2000 |
|
CHIEF EXECUTIVE |
|
|
|
| PATTERN
OF SHARE HOLDING |
|
| AS
AT JUNE 30, 2000 |
|
|
| NO. OF |
|
SHAREHOLDING |
|
|
TOTAL |
|
| SHAREHOLDERS |
FROM |
|
TO |
|
SHARES HELD |
|
| 160 |
|
1 |
-- |
100 |
SHARES |
9,220 |
|
| 351 |
|
101 |
-- |
500 |
SHARES |
118,450 |
|
| 475 |
|
501 |
-- |
1000 |
SHARES |
379,510 |
|
| 475 |
|
1001 |
-- |
5000 |
SHARES |
1,107,125 |
|
| 88 |
|
5001 |
-- |
10000 |
SHARES |
661,440 |
|
| 25 |
|
10001 |
-- |
15000 |
SHARES |
327,935 |
|
| 15 |
|
15001 |
-- |
20000 |
SHARES |
266,100 |
|
| 5 |
|
20001 |
-- |
25000 |
SHARES |
115,680 |
|
| 7 |
|
25001 |
-- |
30000 |
SHARES |
192,390 |
|
| 5 |
|
30001 |
-- |
35000 |
SHARES |
162,400 |
|
| 5 |
|
35001 |
-- |
40000 |
SHARES |
186,960 |
|
| 1 |
|
45001 |
-- |
50000 |
SHARES |
50,000 |
|
| 1 |
|
50001 |
-- |
55000 |
SHARES |
53,000 |
|
| 2 |
|
70001 |
-- |
75000 |
SHARES |
142,080 |
|
| 1 |
|
75001 |
-- |
80000 |
SHARES |
79,300 |
|
| 1 |
|
90001 |
-- |
95000 |
SHARES |
95,000 |
|
| 1 |
|
95001 |
-- |
100000 |
SHARES |
100,000 |
|
| 1 |
|
115001 |
-- |
120000 |
SHARES |
117,750 |
|
| 1 |
|
145001 |
-- |
150000 |
SHARES |
150,000 |
|
| 1 |
|
155001 |
-- |
160000 |
SHARES |
158,160 |
|
| 1 |
|
175001 |
-- |
180000 |
SHARES |
177,000 |
|
| 1 |
|
180001 |
-- |
185000 |
SHARES |
185,000 |
|
| 2 |
|
245001 |
-- |
250000 |
SHARES |
498,500 |
|
| 1 |
|
275001 |
-- |
280000 |
SHARES |
275,500 |
|
| 1 |
|
355001 |
-- |
360000 |
SHARES |
355,500 |
|
| 1 |
|
560001 |
-- |
565000 |
SHARES |
563,820 |
|
| 1 |
|
2695001 |
-- |
2700000 |
SHARES |
2,700,000 |
|
| 1 |
|
2770001 |
-- |
2775000 |
SHARES |
2,772,180 |
|
| ----------- |
----------- |
----------- |
----------- |
----------- |
----------- |
----------- |
|
| 1630 |
|
12,000,000 |
|
| ========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
| Note:
The slabs not applicable, have not been shown. |
|
|
| CATEGORIES
OF SHAREHOLDERS |
NUMBER OF |
NUMBER OF |
PERCENTAGE |
|
|
SHAREHOLDERS |
SHARES HELD |
|
|
| Individuals |
|
1555 |
3586185 |
29.89 |
|
| Investment
Companies |
|
10 |
96450 |
0.80 |
|
| Insurance
Companies |
|
1 |
563820 |
4.70 |
|
| Joint
Stock Companies |
|
27 |
5787330 |
48.23 |
|
| Financial
Institutions |
|
16 |
1692460 |
14.10 |
|
| Foreign
Companies |
|
6 |
63845 |
0.53 |
|
| Modaraba
& Leasing Companies |
10 |
194360 |
1.62 |
|
| Others |
|
5 |
15550 |
0.13 |
|
|
----------- |
----------- |
----------- |
|
|
1630 |
12000000 |
100.00 |
|
|
========== |
========== |
========== |
|
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of KOHINOOR POWER COMPANY LIMITED as
at 30 June |
|
| 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 the 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 accounts
have been kept by the company as required by the |
|
| Companies
Ordinance, 1984; |
|
| (b) in our opinion; |
|
| i)
the balance sheet and profit and loss account together with the notes
thereon, have been |
|
| drawn
up in conformity with the companies ordinance, 1984, and are in agreement
with |
|
| the
books of account and are further in accordance with accounting policies
consistently |
|
| applied; |
|
| ii)
the expenditure incurred during the year was for the purpose of the company's
business; |
|
| and |
|
| iii)
the business conducted, investments made and the expenditure incurred during
the year |
|
| were
in accordance with the objects of the company; |
|
|
| (c)
in our opinion and to the best of our information and according to the
explanations given to us, the |
|
| balance
sheet, profit and loss account, cash flow statement and statement of changes
in equity |
|
| together
with the notes forming part thereof conform with approved accounting
standards as |
|
| applicable
in Pakistan, and, give the information required by the Companies Ordinance,
1984, in |
|
| the
manner so required and respectively give a true and fair view of the state of
the company's |
|
| affairs
as at 30 June 2000 and of the profit, its cash flows and changes in equity
for the year then |
|
| ended; and |
|
| (i)
This year too no interest has been charged on the amounts due from Kohinoor |
|
| Industries
Limited and attention in this behalf is invited to Note No. 15. |
|
| (ii)
No provision is made for the taxes listed at Note No. 10.2 amounting to |
|
| Rs.
3.378 Million. |
|
|
| (d)
in our opinion, Zakat deductible at source under the Zakat and Ushar
Ordinance, 1980, |
|
| was
deducted by the company and deposited in the central Zakat Fund under section
7 of |
|
| that
ordinance. |
|
|
| Lahore |
|
(MANZOOR HUSSAIN MIR & CO.) |
|
| December
01,2000 |
|
CHARTERED ACCOUNTANTS |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
NOTE |
Rupees |
Rupees |
|
| SHARE
CAPITAL AND RESERVES |
|
| SHARE
CAPITAL |
|
(3) |
120,000,000 |
120,000,000 |
|
| RESERVES |
|
(4) |
264,000,000 |
246,000,000 |
|
| UN-APPROPRIATED
PROFIT |
|
|
916,608 |
1,606,396 |
|
|
|
----------- |
----------- |
|
|
|
384,916,608 |
367,606,396 |
|
| LONG
TERM LOANS |
|
(5) |
204,618,969 |
10,392,621 |
|
| LIABILITIES
AGAINST ASSETS |
|
|
|
|
| SUBJECT
TO FINANCE LEASE |
|
(6) |
2,626,342 |
11,121,350 |
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
|
| SHORT
TERM LOANS |
|
(7) |
18,458,551 |
105,192,086 |
|
| CURRENT
PORTION OF LONG |
|
|
|
|
| TERM
LIABILITIES |
|
(8) |
113,525,093 |
158,083,135 |
|
| CREDITORS,
PROVISIONS AND |
|
|
|
|
| ACCRUED
LIABILITIES |
|
(9) |
17,629,395 |
59,336,818 |
|
| UN-CLAIMED
DIVIDEND |
|
|
961,893 |
184,865 |
|
| PROPOSED
DIVIDEND |
|
|
12,000,000 |
15,000,000 |
|
|
|
----------- |
----------- |
|
|
|
162,574,932 |
337,796,904 |
|
| CONTINGENCIES
& COMMITMENTS |
|
(10) |
-- |
-- |
|
|
----------- |
----------- |
|
|
754,736,851 |
726,917,271 |
|
|
========== |
========== |
|
|
| TANGIBLE
FIXED ASSETS |
|
| OPERATING
ASSETS OWN |
|
(11) |
218,821,430 |
186,504,614 |
|
| CAPITAL
WORK IN PROGRESS |
|
(12) |
31,969,400 |
|
| ASSETS
SUBJECT TO FINANCE LEASE |
|
(13) |
43,168,950 |
45,441,000 |
|
|
| LONG
TERM DEPOSITS |
|
1,300,000 |
6,800,000 |
|
|
| CURRENT
ASSETS |
|
| STORES
AND SPARES |
|
(14) |
43,272,886 |
26,147,361 |
|
| TRADE
DEBTS |
|
(15) |
377,275,853 |
389,681,434 |
|
|
|
|
|
| ADVANCES,
DEPOSITS AND |
|
|
|
|
| PREPAYMENTS |
|
(16) |
38,234,537 |
24,902,488 |
|
| SHORT
TERM INVESTMENT |
|
(17) |
-- |
46,800,000 |
|
| CASH
AND BANK BALANCES |
|
(18) |
693,795 |
640,374 |
|
|
|
----------- |
----------- |
|
|
459,477,071 |
488,171,657 |
|
|
|
----------- |
----------- |
|
|
754,736,851 |
726,917,271 |
|
|
========== |
========== |
|
| The
annexed notes (1) to (31) form an integral part of these financial
statements. |
|
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
(MANZOOR HUSSAIN MIR & CO.) |
|
|
CHARTERED ACCOUNTANTS |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
|
|
|
2000 |
1999 |
|
|
NOTE |
Rupees |
Rupees |
|
|
| SALES |
|
(19) |
210,606,419 |
296,622,187 |
|
| COST
OF SALES |
|
(20) |
173,349,577 |
200,020,266 |
|
|
|
----------- |
----------- |
|
| GROSS
PROFIT |
|
|
37,256,842 |
96,601,921 |
|
| ADMINISTRATIVE
& GENERAL |
|
(21) |
2,549,471 |
1,977,528 |
|
|
|
----------- |
----------- |
|
| OPERATING
PROFIT |
|
|
34,707,371 |
94,624,393 |
|
|
|
|
|
| FINANCIAL
EXPENSES |
|
(22) |
39,834,607 |
58,840,140 |
|
|
|
|
|
| OTHER
INCOME |
|
|
43,787 |
1,776,779 |
|
| UNUSUAL
& NON RECURRING ITEMS |
|
(23) |
35,936,304 |
-- |
|
|
----------- |
----------- |
|
|
35,980,091 |
1,776,779 |
|
|
----------- |
----------- |
|
|
30,852,855 |
37,561,032 |
|
| WORKERS'
PROFIT PARTICIPATION FUND |
|
1,542,643 |
1,878,052 |
|
|
|
|
| PROFIT
BEFORE TAXATION |
|
29,310,212 |
35,682,980 |
|
| UNAPPROPRIATED
PROFIT BROUGHT FORWARD |
|
1,606,396 |
923,416 |
|
|
----------- |
----------- |
|
| PROFIT
AVAILABLE FOR APPROPRIATION |
|
30,916,608 |
36,606,396 |
|
| APPROPRIATIONS: |
|
|
|
| PROPOSED
DIVIDEND @ 10% (1999 @ 12.5%) |
|
|
|
| i.e.
Re. 1 per ordinary share of Rs. 10 |
|
12,000,000 |
15,000,000 |
|
|
|
|
| TRANSFERRED
TO GENERAL RESERVES |
|
18,000,000 |
20,000,000 |
|
|
----------- |
----------- |
|
|
30,000,000 |
35,000,000 |
|
|
----------- |
----------- |
|
| UNAPPROPRIATED
PROFIT CARRIED FORWARD |
|
|
|
| TO
BALANCE SHEET |
|
916,608 |
1,606,396 |
|
|
========== |
========== |
|
| EARNING
PER SHARE |
|
(26) |
2.44 |
2.97 |
|
|
========== |
========== |
|
| The
annexed notes (1) to (31) form an integral part of these financial
statements. |
|
|
|
CHIEF EXECUTIVE |
|
(MANZOOR HUSSAIN MIR & CO.) |
|
DIRECTOR |
|
|
CHARTERED ACCOUNTANTS |
|
|
|
|
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED JUNE 30,2000 |
|
|
|
2000 |
1999 |
|
|
RUPEES |
RUPEES |
|
| CASH
FLOWS FROM OPERATING ACTIVITIES |
|
| Net
profit/(loss) before taxation |
|
29,310,212 |
35,682,980 |
|
| Adjustments
for: |
|
|
|
| Depreciation |
|
11,999,463 |
25,767,021 |
|
| Profit
on sale of shares |
|
(16,942,773) |
-- |
|
|
----------- |
----------- |
|
| Financial
charges |
|
39,834,607 |
58,840,140 |
|
| Operating
profit before working capital changes |
|
64,201,509 |
120,290,141 |
|
| (Increase)
/ decrease in stores and spares |
|
(17,125,524) |
10,218,345 |
|
| (Increase)
/decrease in trade debts |
|
12,405,581 |
(95,369,292 |
|
| (Increase)
/ decrease in advances prepayments and receivables |
(9,092,049)1 |
(2,510,426 |
|
| Increase
/ (decrease) in creditors, provisions and accrued liabilities |
11,119,377 |
1,001,421 |
|
|
----------- |
----------- |
|
|
(2,692,615) |
(86,659,952) |
|
|
----------- |
----------- |
|
| Cash
generated from operations |
|
61,508,894 |
33,630,189 |
|
| Financial
charges paid |
|
(91,884,380) |
(25,130,769) |
|
|
----------- |
----------- |
