| Leather Up Limited |
|
|
|
|
|
|
|
| Annual
Report 2000 |
|
|
|
| CONTENTS |
|
|
| Corporate
Profile |
|
| Directors'
Report |
|
| Statistical
Data |
|
| Pattern
of Shareholding |
|
| Notice
of Meeting |
|
| Auditor's
Report to the Members |
|
| Balance
Sheet |
|
| Profit
& Loss Account |
|
| Statement
of Changes in Financial Position |
|
| Notes
to the Accounts |
|
|
|
| Corporate
Profile |
|
|
| BOARD
OF DIRECTORS |
|
|
| S.
Khalid H. Shah |
Chief Executive /
Director |
|
| M. A. Shah |
|
Director |
|
| Shahjehan
Shah |
Director |
|
| R. All Shah |
|
Director |
|
| G. K. Shah |
|
Director |
|
| R. A. Shah |
|
Director |
|
| Aasim Shah |
|
Director |
|
|
| COMPANY
SECRETARY |
|
| Shafqat Mahmood Khokhar |
|
|
| AUDITORS |
|
| Rahim Iqbal Rafiq & Company |
Punjwani & Company |
|
| Chartered Accountants |
Chartered Accountants |
|
|
| LEGAL
ADVISOR |
|
| Abdul
Halim Pirzada & Company |
|
| Advocates |
|
|
| BANKERS |
|
| Muslim
Commercial Bank Ltd. |
|
| United
Bank Limited |
|
| Habib
Bank Limited |
|
| Faysal
Bank Limited |
|
|
| REGISTERED
OFFICE/FACTORY |
|
| Plot
No. 23/C, 15th Commercial Street, |
|
| Phase
II Ext., Defence Housing Authority, Karachi. |
|
|
| Plot
No. 20/C, Sunset Lane 9, Phase-II Ext., |
|
| D.H.A.,
Karachi. |
|
|
|
| DIRECTORS'
REPORT |
|
|
| The
Directors of your Company are pleased to present you herewith 9th Annual
Report together with the |
|
| Audited
Accounts of the Company and the Auditor's Report thereon. |
|
|
| FINANCIAL
RESULTS: |
|
|
30-06-2000 |
30-06-99 |
|
|
Rupees |
Rupees |
|
| Profit
from operations |
|
10,592,059 |
4,846,114 |
|
| Provision
for taxation |
|
815,797 |
822,567 |
|
|
------------ |
------------ |
|
| Profit
after tax, |
|
9,776,262 |
4,023,547 |
|
| Un-appropriated
profit |
|
| brought
forward from last year |
|
10,877,138 |
12,853,591 |
|
|
------------ |
------------ |
|
| Available
for appropriation |
|
20,653,400 |
16,877,138 |
|
|
| Proposed
cash dividend @ 10% (199'8-10%) |
|
6,000,000 |
6,000,000 |
|
|
------------ |
------------ |
|
| Unappropriated
profit |
|
14,653,400 |
10,877,138 |
|
|
========== |
========== |
|
| Earning
per share after tax |
|
1.63 |
0.67 |
|
|
| Your
company is trying its level best to maintain profitability in these trying
times. As you are aware the export |
|
| market
in general and leather sector in particular has been besieged with manifold
problems since few years. |
|
|
| Cyclic
recession and saturation in our traditional markets (Germany France etc.) on
one end, coupled with |
|
| inflationary
pressure (Prices) and availability of raw materials on the other end leaves
alot to be desired. |
|
|
| The
management and team of workers have put in a tremendous effort to meet
commitments with our buyers and |
|
| execute
and fulfill orders in these difficult conditions. |
|
|
| However,
we hope the recession of Europe should bottom out and we hope for improved
situation in the near |
|
| future.
By the grace of almighty Allah and your blessings, the management was able to
squeeze profitability out |
|
| of
other areas of operation. The directors therefore, proposed 10% final cash
dividend (i.e. Re. 1.00 per share) |
|
| for
the current financial year. |
|
|
| We
are pleased to say that we have been able to share profits with our
shareholders for the fifth consecutive year, |
|
| which
is commendable as you would agree and this is also in line with the
principles and policies of the |
|
| management.
We hope to do better in the coming years and share better profits. |
|
|
| WORKER
MANAGEMENT RELATION: |
|
| The
management will like to put on the record valued contribution of all members
of the staff and workers towards |
|
| achieving
results in general. The worker management relation remained excellent
throughout the year which |
|
| resulted
in the smooth operation of your company. This is a team work and we hope it
shall continue in the same |
|
| atmosphere
during the coming years. |
|
|
| APPOINTMENT
OF AUDITORS: |
|
| The
present auditors M/s. Punjwani & Company Chartered Accountants and Rahim
Iqbal Rafiq & Co. Chartered |
|
| Accountants
retiring at the Annual General Meeting and being eligible, have offered
themselves for re- |
|
| appointment.
One of the shareholders of the company has given notice under section 253 of
the Companies |
|
| Ordinance,
1984 to appoint only M/s. Rahim Iqbal Rafiq & Co. Chartered Accountants,
as sole auditor of the |
|
| company. |
|
|
| PATTERN
OF SHARE HOLDING: |
|
| The
pattern of share holding is annexed with this report. |
|
|
| THANKS
AND APPRECIATION: |
|
| To
our shareholders for their trust. and support now as well as in difficult
times. |
|
|
|
By order of the Board |
|
|
| Dated:
December 02, 2000. |
|
S. KHALID H. SHAH |
|
|
Chief Executive |
|
|
|
| STATISTICAL
DATA |
|
|
|
01-07-99 |
01-07-98 |
|
|
30-06-2000 |
30-06-99 |
|
|
Rupees |
Rupees |
|
| PERIOD
AT A GLANCE |
|
| Turnover |
|
163,159,399 |
164,513,390 |
|
| Profit
before tax |
|
10,592,059 |
4,846,114 |
|
| Taxation |
|
815,797 |
822,567 |
|
| Profit
after tax |
|
9,776,262 |
4,023,547 |
|
| Gross
assets employed |
|
30,788,646 |
29,624,371 |
|
| Paid-up
capital |
|
60,000,000 |
60,000,000 |
|
| Shareholders
equity |
|
76,853,400 |
73,077,138 |
|
| Earning
per share before tax |
|
1.77 |
0.81 |
|
|
| Cash
dividend |
|
@ 10% i.e. |
@ 10% i.e. |
|
|
Re. 1.00/Share |
Re. 1.00/Share |
|
|
|
| PATTERN
OF SHAREHOLDINGS (Form 34) |
|
| As
at June 30, 2000 |
|
|
|
|
Number of |
SHAREHOLDING |
|
TOTAL SHARES |
|
| S. No. |
Share Holder |
FROM |
|
TO |
HELD |
|
| 1 |
607 |
1 |
|
100 |
60,700 |
|
| 2 |
1,591 |
101 |
|
500 |
778,400 |
|
| 3 |
74 |
501 |
|
1,000 |
71,900 |
|
| 4 |
89 |
1,001 |
|
5,000 |
222,100 |
|
| 5 |
14 |
5,001 |
|
10,000 |
108,600 |
|
| 6 |
1 |
10,001 |
|
15,000 |
11,400 |
|
| 7 |
2 |
15,001 |
|
20,000 |
35,000 |
|
| 8 |
1 |
25,001 |
|
30,000 |
26,000 |
|
| 9 |
1 |
50,001 |
|
55,000 |
53,500 |
|
| 10 |
3 |
55,001 |
|
60,000 |
169,900 |
|
| 11 |
1 |
70,001 |
|
75,000 |
73,700 |
|
| 12 |
1 |
75,001 |
|
80,000 |
80,000 |
|
| 13 |
1 |
80,001 |
|
85,000 |
81,100 |
|
| 14 |
1 |
85,001 |
|
90,000 |
89,000 |
|
| 15 |
1 |
90,001 |
|
95,000 |
92,000 |
|
| 16 |
3 |
95,001 |
|
100,000 |
296,300 |
|
| 17 |
1 |
145,001 |
|
150,000 |
150,000 |
|
| 18 |
1 |
235,001 |
|
240,000 |
240,000 |
|
| 19 |
1 |
245,001 |
|
250,000 |
250,000 |
|
| 20 |
1 |
385,001 |
|
390,000 |
389,800 |
|
| 21 |
1 |
400,001 |
|
405,000 |
404,800 |
|
| 22 |
1 |
460,001 |
|
465,000 |
464,900 |
|
| 23 |
1 |
500,001 |
|
505,000 |
500,500 |
|
| 24 |
1 |
595,001 |
|
600,000 |
600,000 |
|
| 25 |
1 |
750,001 |
|
755,000 |
750,400 |
|
| ------------ |
------------ |
------------ |
------------ |
------------ |
------------ |
|
|
6,000,000 |
|
| ========== |
========== |
========== |
========== |
========== |
========== |
|
| NOTE:
The slabs not applicable lave not been shown. |
|
|
| CATEGORIES
OF |
NO. OF |
NO. OF |
HOLDING |
|
| SHAREHOLDERS |
SHARE |
SHARES |
PERCENTAGE |
|
|
HOLDERS |
HELD |
|
|
| Individuals |
|
2,398 |
5,238,200 |
87.30 |
|
| Joint
Stock Companies (C.D.C) |
1 |
750,400 |
12.51 |
|
| Financial
Institutions |
1 |
11,400 |
0.19 |
|
|
------------ |
------------ |
------------ |
|
|
2,400 |
6,000,000 |
100.00 |
|
|
========== |
========== |
========== |
|
|
|
|
| Break-Down
of Pattern of Shareholding |
|
| with
CDC of Pakistan Limited |
|
|
| CATEGORIES
OF |
NO. OF |
NO. OF |
HOLDING |
|
| SHAREHOLDERS |
SHARE |
SHARES |
PERCENTAGE |
|
|
HOLDERS |
HELD |
|
|
| Financial
Institutions |
3 |
193,000 |
25.72 |
|
| Individuals |
|
209 |
502,400 |
66.95 |
|
| Insurance
Companies |
4 |
15,000 |
2.00 |
|
| Investment
Companies |
1 |
2,000 |
0.27 |
|
| Joint
Stock Companies |
11 |
29,000 |
3.86 |
|
| Modarabas |
|
1 |
3,000 |
0.40 |
|
| Others |
|
4 |
6,000 |
0.80 |
|
|
------------ |
------------ |
------------ |
|
|
233 |
750,400 |
100.00 |
|
|
========== |
========== |
========== |
|
|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
| (For
the Year Ended June 30, 2000) |
|
|
| Notice
is hereby given that the 9th Annual General Meeting of Leather Up Limited
will be held on Tuesday, |
|
| 26th
December 2000, at 5.00 p.m. at Defence Authority Sunset Garden,
Khayaban-e-Jami, D.H.A., Karachi |
|
| to
transact the following business: |
|
|
| 1.
To confirm the minutes of the Extra Ordinary General Meeting held on 2rid
June, 2000. |
|
|
| 2.
To receive, consider and adopt the audited accounts of the Company for the
Year ended June, 30 |
|
| 2000
together with the Reports of the Auditor and Directors. |
|
|
| 3.
To approve the payment of dividend @ Re. 1.00 per share i.e. 10% as
recommended by the Board. |
|
|
| 4.
To appoint auditors for the year ending June 30, 2001 and to fix their
remuneration. The present |
|
| auditors
M/s. Rahim Iqbal Rafiq & Company, Chartered Accountants and M/s. Punjwani
& Company, |
|
| Chartered
Accountants being eligible, have offered themselves for re-appointment. One
of the |
|
| shareholders
of the Company has given notice under section 253 of the Companies Ordinance,
1984 |
|
| to
appoint only M/s. Rahim Iqbal Rafiq & Company, Chartered Accountants, as
sole auditors of the |
|
| Company. |
|
|
| 5.
To transact any other business with the permission of the Chairman. |
|
|
|
By Order of the Board |
|
|
|
Shafqat Mahmood Khokhar |
|
| Dated:
December 05, 2000. |
|
Company Secretary |
|
|
| NOTES: |
|
| 1.
The share transfer books of the company will remain closed from 26th December
to 3rd January, 2001 (both days |
|
| inclusive). |
|
|
| 2.
A member entitled to attend and vote at this meeting may appoint another
member as his/her proxy to attend and |
|
| vote
on his/her behalf. Proxies in order to be valid must be received by the
company not less than 48 hours before |
|
| the
time of the meeting. |
|
|
| 3.
Shareholders through CDC are requested to bring with them their National
Identity Card along with the |
|
| participant's
113 number and their account number at the time of attending the Annual
General Meeting in order |
|
| to
facilitate identification of the respective shareholders. |
|
|
| 4.
Shareholders are requested to promptly notify the company of any change in
their address. |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of LEATHER UP LIMITED as at June 30,
2000 and the related |
|
| profit
& 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 standard |
|
| 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 included
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 are 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 & 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
accounts and are further in accordance with the 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 & 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 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 30th June 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 was deducted |
|
| by
the company and deposited in the Central Zakat Fund established under section
7 of that |
|
| Ordinance. |
|
|
| Without
qualifying our opinion, we draw attention to the note 1 of the financial
statements. Expansion', |
|
| programme
has been deferred due to the reason stated in that note. |
|
|
|
Rahim Iqbal Rafiq & Co. |
|
Punjwani & Co. |
|
|
Chartered Accountants |
|
(Chartered Accountants) |
|
|
| KARACHI:
December 04, 2000. |
|
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 2000 |
|
|
|
|
Year |
Year |
|
|
|
Ended |
Ended |
|
|
|
June30, |
June 30, |
|
|
|
2000 |
1999 |
|
|
Note |
Rupees |
Rupees |
|
| SHARE
CAPITAL AND RESERVES |
|
| Authorised
share capital |
|
| 6,000,000
Ordinary shares |
|
| of
Rs. 10/- each |
|
60,000,000 |
60,000,000 |
|
|
| Issued,
subscribed and paid up capital |
|
3 |
60,000,000 |
60,000,000 |
|
| General
reserve |
|
2,200,000 |
2,200,000 |
|
| Unappropriated
profit |
|
14,653,400 |
10,877,138 |
|
|
|
76,853,400 |
73,077,138 |
|
| Liability
under Finance Lease |
|
4 |
842,980 |
-- |
|
|
| DEFERRED
LIABILITIES |
|
| Staff
retirement gratuity |
|
1,277,308 |
1,079,149 |
|
|
| CURRENT
LIABILITIES |
|
| Short
term Loans. |
|
5 |
86,900,000 |
102,500,000 |
|
| Creditors,
accrued and other liabilities |
|
6 |
34,754,883 |
24,501,840 |
|
| Provision
for taxation |
|
815,797 |
822.57 |
|
| Current
Portion of Lease Liability |
|
121,535 |
-- |
|
| Dividend
(Proposed 10%) |
|
6,000,000 |
6,000,000 |
|
|
------------- |
------------- |
|
|
128,592,215 |
133,824,407 |
|
| CONTINGENCIES
AND COMMITMENTS |
7 |
-- |
-- |
|
|
------------- |
------------- |
|
|
207,565,903 |
207,980,694 |
|
|
========== |
========== |
|
|
|
| TANGIBLE
FIXED ASSETS |
|
| Operating
fixed assets |
|
8 |
22,210,595 |
22,209,485 |
|
| DEFERRED
COST |
|
9 |
-- |
281,151 |
|
| INVESTMENTS |
|
10 |
23,676,414 |
236,764,114 |
|
| CURRENT
ASSETS |
|
|
|
|
| Stock-in-trade |
|
11 |
90,173,205 |
93,514,707 |
|
| Trade debts |
|
12 |
12,471,745 |
20,173,222 |
|
| Advances,
deposits, prepayments & other receivable |
13 |
8,230,873 |
16,504,457 |
|
| Cash
and bank balances |
|
14 |
50,803,071 |
31,621,258 |
|
|
|
------------- |
------------- |
|
|
161,678,894 |
161,813,644 |
|
|
------------- |
------------- |
|
|
207,565,903 |
207,980,694 |
|
|
========== |
========== |
|
|
|
|
|
S. KHALID H. SHAH |
|
SHAHJEHAN SHAH |
|
|
Chief Executive |
|
Director |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
|
|
Year |
Year |
|
|
Ended |
Ended |
|
|
June 30, |
June 30, |
|
|
2000 |
1999 |
|
|
Note |
Rupees |
Rupees |
|
| Sales |
|
15 |
179,286,067 |
179,010,013 |
|
| Cost
of goods sold |
|
16 |
(152,147,977) |
(143,630,019) |
|
|
------------- |
------------- |
|
| Gross Profit |
|
27,138,090 |
35,379,994 |
|
|
| Operating
Expenses |
|
| Administration |
|
17 |
10,379,354 |
10,209,304 |
|
| Selling
& distribution |
|
18 |
16,321,068 |
13,387,100 |
|
|
------------- |
------------- |
|
|
(26,700,422) |
(23,596,401) |
|
|
------------- |
------------- |
|
| Operating
Profit |
|
437,668 |
11,783,593 |
|
|
| Other
Income |
|
19 |
19,175,829 |
3,019,975 |
|
|
|
------------- |
------------- |
|
|
|
19,613,497 |
14,803,568 |
|
|
|
|
| Financial
charges |
|
20 |
8,539,482 |
9,702,395 |
|
| Worker's
profit participation fund |
|
481,956 |
255,059 |
|
|
------------- |
------------- |
|
|
(9,021,438) |
(9,957,454) |
|
|
------------- |
------------- |
|
| Profit
before taxation |
|
10,592,059 |
4,846,114 |
|
| Provision
for taxation |
|
21 |
(815,797) |
(822,567) |
|
|
|
|
------------- |
------------- |
|
| Profit
after taxation |
|
9,776,262 |
4,023,547 |
|
| Unappropriated
profit brought forward |
|
10,877,138 |
11,483,620 |
|
| Correction
of fundamental error |
|
-- |
1,369,971 |
|
|
------------- |
------------- |
|
| Adjusted
unappropriated profit |
|
20,653,400 |
16,877,138 |
|
|
| Appropriation |
|
| Proposed
dividend @ Re. 1.00 per share (1999: 10%) |
|
(6,000,000) |
(6,000,000) |
|
|
------------- |
------------- |
|
| Unappropriated
profit carried forward |
|
14,653,400 |
10,877,138 |
|
|
========== |
========== |
|
| Earning
per share |
|
22 |
1.63 |
0.67 |
|
|
|
S. KHALID H. SHAH |
|
SHAHJEHAN SHAH |
|
|
Chief Executive |
|
Director |
|
|
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION (CASH FLOW STATEMENT) |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
|
Year |
Year |
|
|
Ended |
Ended |
|
|
June 30, |
June 30, |
|
|
2000 |
1999 |
|
|
Rupees |
Rupees |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| Profit
before taxation |
|
10,592,059 |
4,846,114 |
|
| Adjustments
for: |
|
|
|
| Depreciation |
|
1,163,165 |
1,085 735 |
|
| Financial
charges |
|
8,539,482 |
9,702.40 |
|
| Gratuity net |
|
198,159 |
271,174 |
|
| Amortization
of deferred cost |
|
281,1 51 |
584,466 |
|
| Bad-debts
written off |
|
100,000 |
-- |
|
|
------------ |
------------ |
|
|
10,281,957 |
11,643,770 |
|
|
------------ |
------------ |
|
| Operating
profit before working capital changes |
|
20,874,016 |
16,489,884 |
|
|
| Changes
in working capital: |
|
| (Increase)
/ Decrease in current assets |
|
| Stock
in trade |
|
3,341,502 |
(26,679,827) |
|
| Trade debts |
|
7,601,477 |
10,543,723 |
|
| Advances,
deposits prepayments & other receivables |
|
8,273,584 |
(7,052,328) |
|
|
------------ |
------------ |
|
|
19,216,563 |
(23,188,432) |
|
