| Lawrencepur Woollen & Textile Mill
Limited |
|
|
|
|
|
|
| Annual
Report 2000 |
|
|
|
| CONTENTS |
|
|
| Company Information |
|
| Notice of Annual General
Meeting |
|
| Directors' Report |
|
|
| Auditors'
Report to the Members |
|
| Balance Sheet |
|
|
| Profit & Loss Account |
|
| Cash Flow Statement |
|
| Statement
of Changes in Equity |
|
| Notes to the Accounts |
|
| Pattern of Shareholdings |
|
|
|
| COMPANY
INFORMATION |
|
|
| Board
of Directors |
Ahmed Dawood |
|
|
M. Hussain Dawood (Chief
Executive) |
|
|
Khan Amir Abdullah Khan
Rokhri |
|
|
Taj Mohammad Khanzada |
|
|
D.S.O.M.C.
(Fakhar-e-Kashmir) |
|
|
|
Shahzada Dawood |
|
|
Khawaj a Amanullah |
|
|
Sardar All Khan |
|
|
| Company
Secretary |
Aftab Ahmed Qaiser |
|
|
| Auditors |
|
M. Hussain Chaudhury
& Co. |
|
|
Chartered Accountants |
|
|
| Bankers |
|
Habib Bank Limited |
|
|
Bank AI-Habib Limited |
|
|
National Bank of Pakistan |
|
|
Askari Commercial Bank
Limited |
|
|
| Registered
Office |
35-A, Shahrah-e-Abdul
Hameed Bin Baadees |
|
|
(Empress Road), Lahore. |
|
|
Phones: (042) 6301601 -
07 |
|
|
| Mills |
|
Dawoodpur, |
|
|
District Attock. |
|
|
Phones: (0597) 641074 -
76 |
|
|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
|
| Notice
is hereby given that the Fortieth Annual General Meeting of the members of
Lawrencepur |
|
| Woollen
& Textile Mills Limited will Insha Allah be held on November 24, 2000 at
10:00 a.m. at the |
|
| Registered
Office of the Company at Lahore to transact the following business after
recitation from |
|
| the
Holy Quran: |
|
|
| Ordinary
Business |
|
|
| 1.
To confirm the minutes of the thirty-nineth Annual General Meeting held on
December 7, 1999. |
|
|
| 2.
To receive, consider and adopt the Audited Accounts of the Company for the
year ended |
|
| June
30, 2000 together with the Directors' and Auditors' Reports thereon. |
|
|
| 3.
To consider and approve payment of cash dividend as recommended by the
Directors. |
|
|
| 4.
To appoint Auditors and to fix their remuneration. The retiring Auditors M/s.
M. Hussain |
|
| Chaudhury
& Co., being eligible, offer themselves for re-appointment. |
|
|
| 5.
To transact any other business with the permission of the Chairman. |
|
|
| Special
Business |
|
|
| To
consider and if thought fit, pass with or without modification the following
resolution as a Special |
|
| Resolution
for disposal of surplus and obsolete machinery and equipment of the Company. |
|
|
| "Resolved
that the Chief Executive of the Company be and is hereby authorized to
dispose off surplus |
|
| and
obsolete machinery and equipment of the Company". |
|
|
|
BY ORDER OF THE BOARD |
|
|
|
|
| Lahore |
|
Aftab Ahmed Qaiser |
|
| October
26, 2000 |
|
(Company Secretary) |
|
|
| Statement
Under Section 160 (1) (b) of the Companies Ordinance, 1984. |
|
| Some
machinery and equipment is either idle or underutilized and it is, therefore,
decided to dispose |
|
| them off. |
|
|
| Notes: |
|
| 1.
The share transfer books of the Company will remain closed from November 17,
2000 to |
|
| November
24, 2000 (both days inclusive). |
|
|
| 2.
A member entitled to attend and vote at the Meeting may appoint another
member as his / her |
|
| proxy
to attend and vote. Votes may be given personally or by proxy or by an
attorney or in case |
|
| of
corporation by a duly authorised representative. The instrument of proxy duly
executed |
|
| should
be lodged at the Registered Office of the Company not later than forty-eight
hours before |
|
| the Meeting. |
|
|
| 3.
The members are requested to notify the change in addresses, if any,
immediately. |
|
|
|
| DIRECTORS'
REPORT |
|
|
| The
Directors are pleased to present their Annual Report together with the
Audited Accounts for the |
|
| year
ended June 30, 2000 before the fortieth Annual General Meeting of the
Company. |
|
|
| Financial
Results |
|
| The
gross profit reduced to Rs. 56,031,896 during the year under review, as
compared to Rs. |
|
| 56,611,007
for the previous year owing to reduction in sales. However, the gross profit
percentage |
|
| has
improved to 22.83% as compared to 21.85% for the previous year. Consequently
the net profit |
|
| before
taxation has reached a figure of Rs. 29,499,783 as compared to Rs. 26,869,474
of the previous |
|
| year,
after providing for all the operating, administrative, selling &
distribution, financial expenses |
|
| and
depreciation of Rs. 45,915,72! for the year. The summary of the financial
results is being |
|
| furnished
hereunder for a quick glance. |
|
|
|
2000 |
1999 |
|
|
Rupees |
Rupees |
|
| Sales |
|
245,452,328 |
259,032,279 |
|
| Gross profit |
|
56,031,896 |
56,611,007 |
|
| Operating
profit |
|
29,874,472 |
30,049,488 |
|
| Other income |
|
5,551,364 |
880,171 |
|
|
========== |
========== |
|
| Profit
before taxation |
|
29,499,783 |
26,869,474 |
|
| Provision
for taxation |
|
| (net
off deferred tax credit) |
|
8,500,000 |
10,000,000 |
|
|
----------- |
----------- |
|
| Profit
after taxation |
|
20,999,783 |
16,869,474 |
|
| Un-appropriated
profit brought forward |
|
63,879,441 |
60,646,365 |
|
|
----------- |
----------- |
|
| Profit
available for appropriation |
|
84,879,224 |
77,515,839 |
|
|
========== |
========== |
|
| Dividend |
|
| The
Directors recommend a payment of cash dividend of 30% (Rs. 3 per share) on
the paid up capital |
|
| of
the Company. Accordingly the following appropriations have been made: |
|
|
| Profit
available. for appropriation |
|
84,879,224 |
77,515,839 |
|
| Appropriations: |
|
| Dividend
on cumulative redeemable preference |
|
| Shares
@ 9% (1999: 9%) |
|
2,336,400 |
2,336,400 |
|
| Dividend
on ordinary shares @ 30% |
|
| (1999: 22.5%) |
|
15,066,651 |
11,299,998 |
|
|
----------- |
----------- |
|
|
17,403,051 |
13,636,398 |
|
|
----------- |
----------- |
|
| Un-appropriated
profit carried forward |
|
67,476,173 |
63,879,441 |
|
|
========== |
========== |
|
| Earning
Per Share - Basic |
|
3.72 |
2.89 |
|
|
| Future
Prospects |
|
| The
sales during the current year indicate that the year 2000-2001 will be much
better than the year |
|
| under
review. It is expected that there will be significant improvement in the over
all results. |
|
| However,
considering the devaluation of the Pak. Rupee, our increased costs on account
of imported |
|
| raw
materials may offset the good results if the decline in the value of the
rupee is not halted. |
|
|
| Pattern
of Shareholdings |
|
| A
statement reflecting the pattern of shareholdings is attached to the Annual
Report. |
|
|
| Auditors |
|
| The
Auditors Messrs M. Hussain Chaudhury & Co., Chartered Accountants retire
at the conclusion |
|
| of
the Annual General Meeting. Being eligible, offer themselves for
re-appointment. |
|
|
| Staff
Relations |
|
| The
Company continues to benefit from the efforts and dedication of all its
employees. The Directors |
|
| are
pleased to record their appreciation for the hard work and devotion to duty
by all cadres of |
|
| employees. |
|
|
|
ON BEHALF OF THE BOARD |
|
|
| LAHORE |
|
Taj Mohammad Khanzada |
|
| October
16, 2000 |
|
Chairman of the Meeting |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed Balance Sheet of LAWRENCEPUR WOOLLEN & TEXTILE |
|
| MILLS
LIMITED as at June 30, 2000 and the related Profit and Loss Account, Cash
Flow |
|
| Statement
and Statement of Changes in Equity together with the notes forming part
thereof, for the |
|
| year
then ended and we state that we have obtained all the information and
explanations which, to the |
|
| best
of our knowledge and belief, were necessary for the 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
except for the changes as stated in note 2.2 with which we concur; |
|
|
| (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 & Loss Account, Cash Flow Statement and Statement
of Changes in |
|
| Equity
together with the notes forming part thereof conform with approved accounting |
|
| standards
as applicable in Pakistan, and give the information required by the Companies |
|
| Ordinance,
1984, in the manner so required and respectively give a true and fair view of
the |
|
| state
of the Company's affairs as at June 30, 2000 and of the profit, its cash
flows and changes in |
|
| equity
for the year then ended; and |
|
|
| d)
in our opinion 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. |
|
|
| LAHORE |
|
(M. HUSSAIN CHAUDHURY & co.) |
|
| October
17, 2000 |
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 2000 |
|
|
|
Note |
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
| CAPITAL
AND LIABILITIES |
|
| Share
Capital & Reserves |
|
| Share Capital: |
|
| Authorised |
|
3 |
100,000,000 |
100,000,000 |
|
|
|
========== |
========== |
|
| Issued,
subscribed and fully paid up |
|
4 |
76,182,170 |
76,182,170 |
|
| Reserves |
|
5 |
104,543,613 |
104,543,613 |
|
|
|
------------ |
------------ |
|
|
|
180,725,783 |
180,725,783 |
|
| Un-appropriated
Profit |
|
|
67,476,173 |
63,879,441 |
|
|
|
|
------------ |
------------ |
|
|
|
248,201,956 |
244,605,224 |
|
| Obligations
Under Finance Lease |
|
6 |
1,008,464 |
1,415,591 |
|
| Deferred
Liabilities |
|
|
|
|
|
|
| Deferred
taxation |
|
7 |
5,000,000 |
6,500,000 |
|
| Provision
for gratuity |
|
8 |
40,696,103 |
37,376,774 |
|
|
------------ |
------------ |
|
|
45,696,103 |
43,876,774 |
|
| Current
Liabilities |
|
| Current
portion of obligations under finance lease |
6 |
407,127 |
329,677 |
|
| Short
term finance-secured |
|
9 |
-- |
12,843,493 |
|
| Creditors,
accrued charges and other liabilities |
10 |
44,527,406 |
31,252,894 |
|
| Provision
for taxation |
|
11 |
1,450,655 |
1,624,900 |
|
| Proposed
dividend on ordinary shares |
|
15,066,651 |
11,299,998 |
|
| Proposed
dividend on preference shares |
|
2,336,400 |
2,336,400 |
|
|
63,788,239 |
59,687,362 |
|
| Contingencies
and Commitments |
|
12 |
-- |
-- |
|
|
|
|
------------ |
------------ |
|
|
358,694,762 |
349,584,951 |
|
|
========== |
========== |
|
|
| PROPERTY
AND ASSETS |
|
| Operating
Fixed Assets |
|
13 |
65,432,834 |
76,732,677 |
|
| Investments |
|
14 |
6,000 |
6,000 |
|
| Long
Term Deposits |
|
|
216,120 |
216,120 |
|
| Deferred
Cost |
|
15 |
4,282,862 |
-- |
|
| Current
Assets |
|
|
|
|
| Stores
and spare parts |
|
16 |
50,209,424 |
47,575,298 |
|
| Stock in trade |
|
17 |
175,352,228 |
159,168,490 |
|
| Goods
in transit |
|
|
6,339,764 |
4,377,683 |
|
| Book debts |
|
18 |
30,567,627 |
50,124,225 |
|
| Advances,
deposits, prepayments and |
|
| other
receivables |
|
19 |
10,741,454 |
8,022,258 |
|
| Cash
and bank balances |
|
20 |
15,546,449 |
3,362,200 |
|
|
|
------------ |
------------ |
|
|
288,756,946 |
272,630,154 |
|
|
------------ |
------------ |
|
|
358,694,762 |
349,584,951 |
|
|
========== |
========== |
|
| Notes:
The annexed notes (1 - 35) form an integral part to these accounts. |
|
|
|
M. Hussain Dawood |
|
Khawaja Amanullah |
|
|
Chief Executive |
|
Director |
|
|
|
| PROFIT
& LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
|
Note |
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
| Sales |
|
21 |
245,452,328 |
259,032,279 |
|
| Cost
of Goods Sold |
|
22 |
189,420,432 |
202,421,272 |
|
|
|
|
------------ |
------------ |
|
| Gross Profit |
|
56,031,896 |
56,611,007 |
|
|
| Operating
Expenses |
|
| Administrative
& general |
|
23 |
13,262,662 |
12,535,334 |
|
| Selling
& distribution |
|
24 |
12,894,762 |
14,026,185 |
|
|
------------ |
------------ |
|
|
26,157,424 |
26,561,519 |
|
|
------------ |
------------ |
|
| Operating
Profit |
|
29,874,472 |
30,049,488 |
|
| Other income |
|
25 |
5,551,364 |
880,171 |
|
|
|
|
| Financial
and other charges |
|
26 |
5,926,053 |
4,060,185 |
|
|
|
------------ |
------------ |
|
| Profit
Before Taxation |
|
29,499,783 |
26,869,474 |
|
| Provision
for taxation: |
|
| - Current |
|
10,000,000 |
10,000,000 |
|
| - Deferred |
|
(1,500,000) |
-- |
|
|
------------ |
------------ |
|
| Profit
After Taxation |
|
20,999,783 |
16,869,474 |
|
|
|
|
| Un-appropriated
Profit Brought Forward |
|
63,879,441 |
60,646,365 |
|
|
|
------------ |
------------ |
|
| Profit
available for appropriation |
|
84,879,224 |
77,515,839 |
|
| Appropriations |
|
|
|
| Proposed
dividend on ordinary shares |
I |
|
15,066,651 |
11,299,998 |
|
| Proposed
dividend on preference shares |
|
2,336,400 |
2,336,400 |
|
|
------------ |
------------ |
|
|
17,403,051 |
13,636,398 |
|
|
------------ |
------------ |
|
| Un-appropriated
Profit Carried Forward |
|
67,476,173 |
63,879,441 |
|
|
|
========== |
========== |
|
| Earning
Per Share - Basic |
|
27 |
3.72 |
2.89 |
|
|
|
|
|
|
| Notes:
The annexed notes (1 - 35) form an integral part to these accounts. |
|
|
|
M. Hussain Dawood |
|
Khawaja Amanullah |
|
|
Chief Executive |
|
Director |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
|
Note |
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| Cash
generated from operations |
|
28 |
51,817,693 |
16,495,097 |
|
| Less:
Payments: |
|
|
|
| -
Financial charges |
|
|
(1,121,650) |
(1,830,837) |
|
| -
Income tax |
|
|
(10,172,614) |
(20,562,774) |
|
| - Staff gratuity |
|
|
(3,587,011) |
(6,448,898) |
|
|
|
------------ |
------------ |
|
|
|
(14,881,275) |
(28,842,509) |
|
|
|
------------ |
------------ |
|
| Net
cash inflow / (outflow) from operating activities |
|
36,936,418 |
(12,347,412) |
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
| Fixed
capital expenditure |
|
(2,816,043) |
(6,025,949) |
|
| Sale
proceeds of fixed assets |
|
4,436,441 |
111,893 |
|
|
------------ |
------------ |
|
| Net
cash inflow / (outflow) from investing activities |
|
1,620,398 |
(5,914,056) |
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
| Obligations
under finance lease (net) |
|
(329,677) |
(266,963) |
|
| Dividend paid |
|
(13,199,397) |
(2,861,647) |
|
|
------------ |
------------ |
|
| Net
cash (outflow) from financing activities |
|
(13,529,074) |
(3,128,610) |
|
|
------------ |
------------ |
|
| Net
increase/(decrease) in cash and cash equivalents |
|
25,027,742 |
(21,390,078) |
|
| Cash
and cash equivalents at the beginning of the year |
|
(9,481,293) |
11,908,785 |
|
|
------------ |
------------ |
|
| Cash
and cash equivalents at the end of the year |
29 |
15,546,449 |
(9,481,293) |
|
|
========== |
========== |
|
|
|
|
|
M. Hussain Dawood |
|
Khawaja Amanullah |
|
|
Chief Executive |
|
Director |
|
|
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
|
2000 |
1999 |
|
|
Rupees |
Rupees |
|
| ISSUED,
SUBSCRIBED AND FULLY |
|
| PAID-UP
SHARE CAPITAL |
|
|
| 5,022,217
ordinary shares of Rs. 10 each |
|
50,222,170 |
50,222,170 |
|
|
| 25,960
9% cumulative redeemable |
|
| preference
shares of Rs. 1,000 each |
|
25,960,000 |
25,960,000 |
|
|
------------ |
------------ |
|
|
76,182,170 |
76,182,170 |
|
| RESERVES |
|
| Share
premium: |
|
| Balance
as on July 01 |
|
47,330,420 |
47,330,420 |
|
| Appropriation
from/(to) profit |
|
-- |
-- |
|
|
------------ |
------------ |
|
| Balance
as on June 30 |
|
47,330,420 |
47,330,420 |
|
|
|
|
| Capital
reserve: |
|
|
|
| Balance
as on July 01 |
|
598,609 |
598,609 |
|
| Appropriation
from/(to) profit |
|
-- |
-- |
|
|
------------ |
------------ |
|
| Balance
as on June 30 |
|
598,609 |
598,609 |
|
|
| General
reserve: |
|
| Balance
as on July 01 |
|
56,614,584 |
56,614,584 |
|
| Appropriation
from/(to) profit |
|
-- |
-- |
|
|
------------ |
------------ |
|
| Balance
as on June 30 |
|
56,614,584 |
56,614,584 |
|
|
| UN-APPROPRIATED
PROFIT |
|
| Balance
as on July 01, as previously reported |
|
63,879,441 |
54,222,072 |
|
| Effect
of change in accounting policy |
|
-- |
6,424,293 |
|
|
------------ |
------------ |
|
| Balance
as on July 01, restated |
|
63,879,441 |
60,646,365 |
|
| Profit
for the year after taxation |
|
20,999,783 |
16,869,474 |
|
| Dividend-final |
|
(17,403,051) |
(13,636,398) |
|
|
------------ |
------------ |
|
| Balance
as on June 30 |
|
67,476,173 |
63,879,441 |
|
|
------------ |
------------ |
|
| OWNERS'
EQU1TY |
|
248,201,956 |
244,605,224 |
|
|
========== |
========== |
|
|
|
|
M. Hussain Dawood |
|
Khawaja Amanullah |
|
|
Chief Executive |
|
Director |
|
|
|
|
| NOTES
TO THE ACCOUNTS |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
| 1.
THE COMPANY AND 1TS OPERATIONS |
|
| The
Company was incorporated in Pakistan on August 15, 1960 as a public limited
company. |
|
| Its
shares are quoted on the Karachi and Lahore Stock Exchanges. It is engaged in
the |
|
| manufacture
and sale of worsted yarns and fabrics. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
| 2.1
Accounting convention |
|
| These
financial statements have been prepared under historical cost convention,
without |
|
| any
adjustment for the effect of inflation or reference to current values. |
|
