| Pak Leather Craft Limited |
|
|
|
|
|
|
|
| Annual
Report 2000 |
|
|
|
| CONTENTS |
|
|
| Company
Information |
|
| Notice
of Meeting |
|
| Directors'
Report |
|
| Pattern
of Shareholding |
|
| Auditors'
Report |
|
| Balance
Sheet |
|
| Profit
& Loss Account |
|
| Cash
Flow Statement |
|
| Statement
of Changes in Equity |
|
| Notes
to the Accounts |
|
|
|
| COMPANY
INFORMATION |
|
|
| BOARD
OF DIRECTORS |
|
| Mohammad
Khurshid Ahmed |
Chairman |
|
| Mohammad
Saleem Ahmed |
|
Chief Executive |
|
| Dr.
Mohammad Shoaib Ahmed |
Director |
|
| Tariq
Mustafa Khan |
|
Director |
|
| Hussain
Aqa Naqvi |
|
Director (Nominee of NIT) |
|
| Mumtaz
All Memon |
|
Director (Nominee of ICP) |
|
|
| COMPANY
SECRETARY |
|
| Ahmed
Saeed |
|
|
| BANKERS |
|
| Credit
Agricole Indosuez Bank |
|
| Prudential
Commercial Bank Limited |
|
| Albaraka
Islamic Bank |
|
| Bank
AI-Falah Ltd. |
|
| United
Bank Ltd. |
|
| Allied
Bank of Pakistan |
|
|
| AUDITORS |
|
| S.M.
Rehan & Co. |
|
| Chartered
Accountants |
|
|
| LEGAL
ADVISOR |
|
| Shakiel
Z. Lari Advocate |
|
|
| REGISTERED
OFFICE |
|
| Plot
16 Sector 7A, |
|
| Korangi
Industrial Area, |
|
| Karachi. |
|
|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
|
| Notice
is hereby given that the 13th Annual General Meeting of the members of Pak
Leather Crafts |
|
| Limited
will be held on Saturday, the 23rd December, 2000 at 10.00 a.m. at the
Auditorium of FTC |
|
| Building,
Sharea Faisal, Karachi to transact the following business: |
|
|
| A.
ORDINARY BUSINESS: |
|
| 1.
To confirm the minutes of the 12th Annual General Meeting held on 30th
December, 1999. |
|
|
| 2.
To receive, consider and adopt the audited accounts of the Company for the |
|
| year
ended 30th June, 2000 together with the Directors' and Auditors' Reports
thereon. |
|
|
| 3.
To approve the payment of cash dividend at the rate of Rs. 1.25 per share
(12.50%) as |
|
| recommended
by the Board of Directors for the year ended June 30, 2000. |
|
|
| 4.
To appoint Auditors for the year ending June 30, 2001 and to fix their
remuneration. |
|
|
| B.
SPECIAL BUSINESS |
|
| 5.
To approve the enhancement in remuneration of working Directors including
Chief |
|
| Executive. |
|
|
| 6.
To transact any other business with the permission of the chair. |
|
|
|
By Order of the Board |
|
|
|
(Ahmed Saeed) |
|
| Karachi:
December 01,2000 |
|
Company Secretary |
|
|
| NOTES: |
|
| 1.
To determine the entitlement of dividend the Share Transfer Books of the
Company will remain |
|
| closed
from 16th December, 2000 to 23rd December, 2000 (both days inclusive). |
|
|
| 2.
A member entitled to attend and vote at this meeting may appoint another
member as his/her |
|
| proxy
to attend the meeting and vote instead of him/her. No person shall act as a
proxy who |
|
| is
not a member of the Company. Proxies in order to be effective must be
received by the |
|
| Company
not less than 48 hours before the meeting. |
|
|
| 3.
Members are requested to immediately notify the Company of any change in
their Addresses. |
|
|
| 4.
Statement under Section 160 (b) of the Companies Ordinance, 1984 is being
sent to the |
|
| Members
alongwith the Notice. |
|
|
| STATEMENT
UNDER SECTION 160(b) OF THE COMPANIES ORDINANCE, 1984 WITH RESPECT |
|
| TO
SPECIAL BUSINESS CONTAINED IN THE NOTICE OF MEETING. |
|
| An
amount of Rs. 3,000,000 will be proposed as the aggregate sum of remuneration
including all |
|
| perquisites
of directors including chief executive from the financial year 2000-2001 in
the form of |
|
| the
following Ordinary Resolution: |
|
|
| "RESOLVED
that the aggregate sum not exceeding Rs. 3,000,000 as the remuneration |
|
| including
all perquisites of directors and chief executive is hereby approved from the
financial |
|
| year
2000-2001 ". |
|
|
| The
directors and chief executive are interested in the Company business to the
extent of remuneration |
|
| payable
to them and to the extent of their shareholding in the Company. |
|
|
|
| DIRECTORS'
REPORT FOR THE YEAR ENDED JUNE 30, 2000 |
|
|
| The
Directors of your company welcome you to the 13th Annual General Meeting and
place before |
|
| you
the Annual Report alongwith audited accounts for the year ended June 30,
2000. |
|
|
| FINANCIAL
RESULTS |
|
| The
financial results of the Company for the year under report are shown below. |
|
|
|
2000 |
1999 |
|
|
(Rupees) |
(Rupees) |
|
| Profit/(Loss)
from Operations |
|
10,617,702 |
9,877,048 |
|
| Taxation |
|
(2,328,470) |
(2,105,499) |
|
|
------------ |
------------ |
|
| Profit
after tax |
|
8,289,232 |
7,771,549 |
|
| Un-Appropriated
Profit/(Loss) B/F |
|
22,447,762 |
(7,773,787) |
|
|
------------ |
------------ |
|
|
30,736,994 |
(2,238) |
|
| Transfer
from General reserve |
|
-- |
25,000,000 |
|
|
------------ |
------------ |
|
| Available
for Appropriation |
|
30,736,994 |
24,997,762 |
|
| Proposed
Dividend @ 12.50% (1999: @ 7.50%) |
|
(4,250,000) |
(2,550,000) |
|
|
------------ |
------------ |
|
| Un-Appropriated
Profit/(Loss) C/F |
|
26,486,994 |
22,447,762 |
|
| Profit/(Loss)
per share after tax |
|
2.44 |
2.28 |
|
|
| YEAR
AT A GLANCE |
|
| The
management feels pleasure in announcing financial results for the year ending
June, 2000. |
|
| The
Leather Industry has been gaining momentum during the second half of the
year. Although |
|
| we
could only maintain our sales as compared to last year but our gross profit
ratio has increased |
|
| to
15.82% as compared with 13.85% of preceding year. The Leather Garment fashion
is coming |
|
| back
in European countries. Our efforts to enter into new markets and re-establish
contacts with |
|
| some
of the big importers are yielding results. The full impact of our effort,
Inshallah, will be reflected |
|
| in
the next financial year. |
|
|
| Despite
high inflation your management has taken absolute care for controlling
production cost, |
|
| administrative
and selling expenses as well. |
|
|
|
| DIRECTORS'
REPORT FOR THE YEAR ENDED JUNE 30, 2000 |
|
|
| DIVIDEND |
|
| In
view of better operating results for the year under review your directors are
pleased to recommend |
|
| dividend
@ 12.50% for the year under report. |
|
|
| FUTURE
PROSPECTS |
|
| As
you have been informed, that Leather Industry throughout the world is getting
upward trend |
|
| and
we are trying our best to fetch maximum share to boost our sales
significantly. In this regard |
|
| we
are trying to explore new markets and follow the latest trends. We hope to
have better operating |
|
| results
for the forthcoming year. However the improvement is subject to better global
as well as |
|
| national
political and economic conditions coupled with better law and order situation
specially |
|
| in Karachi. |
|
|
| APPOINTMENT
OF AUDITORS |
|
| Messes.
S.M Rehan & Co. Chartered Accountants have retired and being eligible,
have offered |
|
| themselves
for re-appointment. |
|
|
| WORKER
MANAGEMENT RELATIONSHIP |
|
| Your
management would like to place on record valued contribution of all the
members of the staff |
|
| and
workers towards achieving management's goals. The worker management
relationship remained |
|
| cordial
throughout the year, which resulted in the smooth operation of your company. |
|
|
| PATTERN
OF SHAREHOLDING |
|
| The
Pattern of Shareholding is annexed with this report. |
|
|
|
On behalf of the Board |
|
|
|
Mohammad Saleem Ahmed |
|
| November
23, 2000 |
|
Chief Executive |
|
|
|
| PATTERN
OF SHAREHOLDING AS AT JUNE 30, 2000 |
|
|
| NUMBER
OF |
|
SHARES HOLDINGS |
|
SHARES HELD |
|
| SHAREHOLDERS |
FROM |
|
TO |
OF Rs. 10/- EACH |
|
|
| 227 |
|
1 |
-- |
100 |
22,700 |
|
| 331 |
|
101 |
-- |
500 |
137,300 |
|
| 113 |
|
501 |
-- |
1000 |
106,000 |
|
| 78 |
|
1001 |
-- |
5000 |
176,300 |
|
| 8 |
|
5001 |
-- |
10000 |
70,900 |
|
| 4 |
|
10001 |
-- |
15000 |
52,500 |
|
| 1 |
|
20001 |
-- |
25000 |
25,000 |
|
| 1 |
|
25001 |
-- |
30000 |
30,000 |
|
| 1 |
|
35001 |
-- |
40000 |
40,000 |
|
| 1 |
|
55001 |
-- |
60000 |
58,300 |
|
| 20 |
|
85001 |
-- |
90000 |
1,800,000 |
|
| 1 |
|
90001 |
-- |
100000 |
92,000 |
|
| 1 |
|
165001 |
-- |
170000 |
167,800 |
|
| 1 |
|
620001 |
-- |
625000 |
621,200 |
|
| ------------ |
|
------------ |
|
| 788 |
|
3,400,000 |
|
| ========== |
|
========== |
|
|
|
|
|
| CATEGORIES
OF SHAREHOLDERS |
|
|
| Particulars |
|
Number |
Shares held |
Percentage |
|
| Individuals |
|
782 |
2,477,200 |
72.86 |
|
| Investment
Companies |
|
2 |
632,000 |
18.59 |
|
| Insurance
Companies |
|
2 |
197,800 |
5.82 |
|
| Joint
Stock Companies |
|
1 |
92,000 |
2.71 |
|
| Private
Limited Companies |
|
1 |
1,000 |
0.02 |
|
|
------------ |
------------ |
------------ |
|
|
788 |
3,400,000 |
100.00 |
|
|
========== |
========== |
========== |
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of PAK LEATHER CRAFTS 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
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 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 June 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. |
|
|
| Dated:
December 01,2000 |
|
S.M. Rehan & Co. |
|
| Karachi |
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
NOTE |
RUPEES |
RUPEES |
|
| CAPITAL
& RESERVES |
|
| Authorised
share capital |
|
| 5,000,000
Ordinary Shares |
|
| of
Rs. 10/- each |
|
50,000,000 |
50,000,000 |
|
|
========== |
========== |
|
| Issued,
subscribed and paid up capital |
|
3 |
34,000,000 |
34,000,000 |
|
| Unappropriated
profit/(loss) |
|
26,486,994 |
22,447,762 |
|
|
------------ |
------------ |
|
|
60,486,994 |
56,447,762 |
|
|
| LIABILITIES
AGAINST ASSETS |
|
| SUBJECT
TO FINANCE LEASE |
|
4 |
353,061 |
160,337 |
|
|
|
|
| RETIREMENT
BENEFITS |
|
5 |
2,008,960 |
2,083,770 |
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
| Short
term finances |
|
6 |
125,000,000 |
125,000,000 |
|
| Current
maturity of long term liabilities |
|
4 |
228,421 |
245,287 |
|
|
|
|
| Creditors
and accrued expenses |
|
7 |
81,226,571 |
66,443,177 |
|
| Workers'
profit participation fund |
|
8 |
607,401 |
521,160 |
|
| Proposed
dividend |
|
4,250,000 |
2,550,000 |
|
|
------------ |
------------ |
|
|
211,312,393 |
194,759,624 |
|
|
| CONTINGENCIES
AND |
|
| COMMITMENTS |
|
9 |
-- |
-- |
|
|
------------ |
------------ |
|
|
274,161,408 |
253,451,493 |
|
|
========== |
========== |
|
|
| PROPERTY
& ASSETS |
|
| FIXED
CAPITAL EXPENDITURE |
|
|
| Operating
assets |
|
10 |
21,554,463 |
30,433,706 |
|
| Capital
work-in-progress |
|
449,106 |
-- |
|
|
------------ |
------------ |
|
|
22,003,569 |
30,433,706 |
|
|
| INVESTMENTS |
|
11 |
-- |
300,000 |
|
| CURRENT
ASSETS |
|
| Stores
and spares |
|
12 |
5,715,787 |
5,871,726 |
|
| Stock
in trade |
|
13 |
185,827,812 |
81,625,813 |
|
| Trade debts |
|
14 |
5,965,433 |
4,927,873 |
|
| Advances,
deposits and prepayments |
|
15 |
5,924,369 |
9,091,837 |
|
| Other
receivables |
|
16 |
22,948,616 |
19,336,326 |
|
| Cash
and bank balances |
|
17 |
25,775,822 |
1,864,212 |
|
|
|
------------ |
------------ |
|
|
252,157,839 |
222,717,787 |
|
|
------------ |
------------ |
|
|
274,161,408 |
253,451,493 |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
MOHAMMAD KHURSHID AHMED |
|
MOHAMMAD SALEEM AHMED |
|
|
CHAIRMAN |
|
CHIEF EXECUTIVE |
|
|
|
| PROFIT
AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
NOTE |
RUPEES |
RUPEES |
|
|
| Sales |
|
18 |
313,562,882 |
309,129,803 |
|
| Cost of sales |
|
19 |
263,942,217 |
266,304,910 |
|
|
|
------------ |
------------ |
|
| Gross
profit/(loss) |
|
|
49,620,665 |
42,824,893 |
|
|
|
|
| OPERATING
EXPENSES |
|
|
|
| Administration |
|
20 |
10,584,964 |
9,513,480 |
|
| Selling |
|
21 |
17,821,404 |
15,648,857 |
|
|
|
------------ |
------------ |
|
|
28,406,368 |
25,162,337 |
|
|
| Operating
profit/(Loss) |
|
21,214,297 |
17,662,556 |
|
| Financial
charges |
|
22 |
11,397,301 |
12,041,364 |
|
|
|
------------ |
------------ |
|
|
|
9,816,996 |
5,621,192 |
|
|
|
|
| Other
income |
|
23 |
1,359,532 |
4,802,016 |
|
|
|
------------ |
------------ |
|
| Profit/(Loss)
for the year |
|
11,176,528 |
10,423,208 |
|
|
| Other
charges |
|
24 |
558,826 |
546,160 |
|
|
|
------------ |
------------ |
|
| Profit/(Loss)
before taxation |
|
10,617,702 |
9,877,048 |
|
| Taxation |
|
|
|
| -Current year |
|
2,175,000 |
20,000,001 |
|
| - Prior year |
|
153,470 |
105,499 |
|
|
------------ |
------------ |
|
|
2,328,470 |
2,105,499 |
|
|
------------ |
------------ |
|
| Profit/(Loss)
after taxation |
|
8,289,232 |
7,771,549 |
|
| Unappropriated
profit/(Loss) b/f |
|
22,447,762 |
(7,773,787 |
|
|
------------ |
------------ |
|
|
30,736,994 |
(2,238) |
|
| Transfer
from general reserve |
|
-- |
25,000,000 |
|
| Proposed
dividend @ 12.50% (1999: 7.5%) |
|
4,250,000 |
2,550,000 |
|
|
------------ |
------------ |
|
| Unappropriated
profit/(Loss) c/f |
|
26,486,994 |
22,447,762 |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
MOHAMMAD KHURSHID AHMED |
|
MOHAMMAD SALEEM AHMED |
|
|
CHAIRMAN |
|
CHIEF EXECUTIVE |
|
|
|
| CASH
FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
NOTE |
RUPEES |
RUPEES |
|
| A.
CASH FLOW FROM OPERATING ACTIVITIES |
|
| Net
profit/(Loss) before taxation |
|
10,617,702 |
9,877,048 |
|
| ADJUSTMENT
FOR NON CASH CHARGES AND OTHER ITEMS |
|
| Depreciation |
|
13,026,609 |
12,476,583 |
|
| Gain
on sale of fixed assets |
|
(202,000) |
(4,602,500) |
|
| Provision
for gratuity |
|
2,923,131 |
350,000 |
|
| Gratuity paid |
|
(367,123) |
(624,661) |
|
|
------------ |
------------ |
|
|
12,749,799 |
7,599,422 |
|
|
------------ |
------------ |
|
|
23,367,501 |
17,476,470 |
|
| (INCREASE)/DECREASE
IN CURRENT ASSETS |
|
| Store
and spares |
|
155,939 |
(497,755) |
|
| Stock
in trade |
|
(4,201,999) |
40,960,992 |
|
| Trade
debtors |
|
(1,037,560) |
885,528 |
|
| Advance,
deposits and prepayments |
|
2,612,050 |
(3,467,062) |
|
| Other
receivables |
|
(3,612,290) |
4,235,606 |
|
|
------------ |
------------ |
|
|
(6,083,860) |
42,117,309 |
|
| INCREASE/(DECREASE)
IN CURRENT LIABILITIES |
|
| Short
term finances |
|
-- |
(10,000,000) |
|
| Creditors
and accrued expenses |
|
14,758,229 |
(48,789,887) |
|
| Other
creditors |
|
86,241 |
479,408 |
|
|
------------ |
------------ |
|
|
14,844,470 |
(58,310,479) |
|
|
| Net
cash flow from operating activities |
|
32,128,111 |
1,283,300 |
|
|
| B.
CASH FLOW FROM INVESTING ACTIVITIES |
|
| Capital
expenditure |
|
(5,579,472) |
(11,555,034) |
|
| Sale
proceeds of fixed assets |
|
1,185,000 |
6,993,000 |
|
| Tax paid |
|
(1,773,052) |
(2,551,717) |
|
| Investment |
|
300,000 |
2,248,020 |
|
|
------------ |
------------ |
|
|
(5,867,524) |
(4,865,731) |
|
|
| C.
CASH FLOW FROM FINANCING ACTIVITIES |
|
| Lease
liabilities |
|
175,858 |
(125,381) |
|
| Dividend |
|
(2,524,835) |
-- |
|
|
------------ |
------------ |
|
| Net
cash outflow from financing activities |
|
(2,348,977) |
(125,381) |
|
|
------------ |
------------ |
|
| Net
increase/(decrease) in cash & cash equivalent (A+B+C) |
23,911,610 |
(3,707,812) |
|
| Cash
& cash equivalent at the beginning of the year |
|
1,864,212 |
5,572,024 |
|
|
------------ |
------------ |
|
| Cash
& cash equivalent at the end of the year |
|
25,775,822 |
1,864,212 |
|
|
========== |
========== |
|
|
|
|
|
|
MOHAMMAD KHURSHID AHMED |
|
MOHAMMAD SALEEM AHMED |
|
|
CHAIRMAN |
|
CHIEF EXECUTIVE |
|
|
|
| STATEMENT
OF CHANGES IN EQUITY FOR THE YEAR ENDED JUNE 30, 2000 |
|
|
|
RUPEES |
RUPEES |
RUPEES |
RUPEES |
|
|
Issued |
RENEW
RESERVE |
|
|
|
Share |
General |
Unappropriated |
|
|
|
Capital |
Reserve |
Profit/(Loss) |
Total |
|
| Balance
as at June 30, 1998 |
|
34,000,000 |
25,000,000 |
(7,773,787) |
51,226,213 |
|
| Transferred
to Unappropriated Profit |
-- |
(25,000,000) |
25,000,000 |
