| Suzuki Motorcycles Pakistan Limited |
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| Annual
Report 2000 |
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| Contents |
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| Board
of Directors |
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| Notice
of the Annual General Meeting |
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| Chairman's
Review |
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| Directors'
Report to the Shareholders |
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| Pattern
of Shareholdings |
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| Auditors'
Report to the Members |
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| Balance Sheet |
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|
| Profit
and Loss Account |
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| Cash
Flow Statement |
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| Notes
to the Accounts |
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| BOARD
OF DIRECTORS |
DANISHMAND |
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|
KENJI YAMAMOTO |
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|
KAZUYA FUKUZAWA |
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|
MUTSUMI TAKAMATSU, |
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|
YASUO SUZUKI |
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CAPT. (RETD) BASHIR AHMED |
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|
MASATO WATNABE |
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|
ZAHEER AHMED |
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|
MIDHAT AZIM KIDWAI |
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| CHAIRMAN |
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DANISHMAND |
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| CHIEF
EXECUTIVE |
DANISHMAND |
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| SECRETARY |
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MIDHAT A. KIDWAI |
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| AUDITORS |
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SIDAT HYDER QAMAR &
CO. |
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Chartered Accountants |
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| BANKERS: |
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DEUTSCHE BANK |
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THE BANK OF TOKYO -
MITSUBISHI, LTD. |
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BANK AL HABIB LTD. |
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MUSLIM COMMERCIAL BANK
LTD. |
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ABN-AMRO BANK |
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INDUSTRIAL DEVELOPMENT
BANK OF PAKISTAN |
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| REGISTRAR |
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FERGUSON ASSOCIATES (PVT)
LIMITED |
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STATE LIFE BUILDING l-A, |
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I.I. CHUNDRIGAR ROAD, |
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KARACHI. |
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| REGISTERED
OFFICE: |
F/14, MAURIPUR LINK ROAD, |
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S.I.T.E., KARACHI-75730. |
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| TELEPHONE
NOS: |
PABX 2578840- 43 |
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DIR 2573309 - 2577754 -
2575189 |
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E-mail:
suzukimc@paknet3.ptc.pk |
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FAX:
9221 2563895 |
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| NOTICE
OF THE ANNUAL GENERAL MEETING |
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| Notice
is hereby given that the 37th Annual General Meeting of the Company will be
held at Beach |
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| Luxury
Hotel, Moulvi Tamizuddin Khan Road, Karachi, on 21st December, 2000 at 9:00
a.m. to |
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| transact
the following business: |
|
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| ORDINARY
BUSINESS: |
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|
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| 1.
To confirm the minutes of the Annual General Meeting held on 31st December,
1999. |
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| 2.
To receive, consider and adopt the Audited Accounts of the Company for the
year |
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| ended
30th June 2000 together with the Directors' and Auditors' Reports thereon. |
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| 3.
To appoint Auditors for the year ending 30th June, 2001 and to fix their
remuneration. |
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BY THE ORDER OF THE BOARD |
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|
MIDHAT A. KIDWAI |
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| Dated:
14 November, 2000 |
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(COMPANY SECRETARY) |
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| NOTES: |
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| 1.
The share transfer books shall remain closed from 14th December, 2000 to 21st |
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| December,
2000 (both days inclusive) |
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| 2.
A member entitled to attend and vote at the Annual General Meeting is
entitled to |
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| appoint
another person as a proxy who is entitled on his own behalf to be present and |
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| vote
at the meeting to he/she is appointed to act at the meeting as the
representative |
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| of
a corporation. |
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|
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| 3.
The instrument appointing a proxy must be received at the Registered Office
of the |
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| Company
not later than forty eight hours before the meeting. |
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| 4.
Account holders and sub account holders holding book entry securities of the |
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| Company
in Central Depository Company who wish to attend the Annual General |
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| Meeting
are requested to bring original National Identity Cards for identification |
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| purpose.
Proxy forms submitted by any such account holders and sub account holders |
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| must
be accompanied with attested copies of the National Identity Cards of such |
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| account
holders and sub account holders. |
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| CHAIRMAN'S
REVIEW |
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| It
is my privilege to place before you the Company's 37th Annual Report for the
year ended 30th June |
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| 2000. |
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|
| General: |
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| Pakistan
economy in a recession for over three years, remained weak and disturbed
during 1999- |
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| 2000
due to severe internal and external press0res. Government continued to
restrict its spending |
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| demanded
by budgetary constraints. Textiles and tractors offered important bright
spots but demand |
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| continued
weak for most of the industries. |
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|
| Motorcycle
Market |
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|
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| Due
to economic recession, capital goods industries were hardest hit. This
situation was more |
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| pronounced
in the motorcycle industry. Demand for motorcycles was at the same low level
as the last |
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| two
years. Sales of motorcycles during the year was about 15% lower than in
1995-96. Motorcycles |
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| are
mostly used by lower middle class income group, whose income levels have not
grown with |
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| inflationary
movements. Therefore motorcycle prices were getting out of reach of many
potential |
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| users.
Export Sales were low due to problems in some of our foreign markets; our
cost and prices |
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| were
also important reasons for lack of success in this area. |
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| Gross Profit |
|
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| As
a result of downward movement of Pak Rupee against the Japanese yen, as well
as the general |
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| inflationary
pressures, costs rose substantially which could not be passed on to the
consumer as that |
|
| would
have reduced sales drastically. Gross Profit margin was sharply lower from
30.85% in 1998- |
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| 99
to 23.95% in 1999-2000. |
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|
| Selling
and Administration Expenses |
|
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| These
expenses were 38% lower, going down from Rs. 90.6 million to Rs.56.0 million
as we wrote |
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| back
Rs. 12.445 million in 1999-2000, against having made a provision of doubtful
debts of Rs. 24.572 |
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| million
in 1989-99. This has been done under the same formula which was used to make
the provision. |
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| Financial
Charges |
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|
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| We
were able to obtain Foreign Currency loan from SMC, Japan at attractive
rates. Also interest rates |
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| and
forward exchange cover fee remained low. Therefore Financial Charges were
reduced from |
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| Rs.
32.076 million in 1998-99 to Rs. 17.350 million in 1999-2000. |
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| Profit
& Loss Situation |
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|
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| Due
to lower selling expenses and financial charges, the Company incurred a
substantially reduced |
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| loss
of Rs. 4.744 million in 1999-2000 as against a loss of Rs. 44.848 million in
1998-99, despite a |
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| sharp
reduction in gross profit rate. |
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| Future
Prospects |
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|
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| As
mentioned in my last year's review, the company is now moving towards break
even point and |
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| profitability.
Sales at our Company owned and operated Showrooms are growing satisfactorily. |
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| Demand
from rickshaw makers for Suzuki Motorcycles is also gradually increasing as
customers are |
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| confident
about our motorcycle quality and re-sale price. Thus during the year
2000-2001, although |
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| sales
to Government and exports are likely to remain negligible, our motorcycle
sales are likely to |
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| continue
to improve, July-October 2000 motorcycles sales units and sales revenue are
substantially |
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| higher
than July-October 1999. Our Wire Harness project is progressing
satisfactorily. This is adding |
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| significantly
to our turnover. Total July-October 2000 revenue is about 70% higher than
July-October |
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| 1999.
Investment in a high quality wire harness project and other substantial
investments in important |
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| projects
are in hand to add to SMPL sales. Such moves reflect confidence and
commitment of Suzuki |
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| Motor
Corporation, Japan and your Company in the future of our country and our
Company. We are |
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| confident
that the trend in Sales growth will continue. |
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|
DANISHMAND |
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|
(CHAIRMAN) |
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|
| DIRECTORS'
REPORT TO THE SHAREHOLDERS |
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| Your
Directors are pleased to present their report and audited accounts for the
year ended 30th June, |
|
| 2000: |
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| Accounts: |
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|
|
Rupees |
|
|
| Loss
for the year |
|
|
(3,295,975) |
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| Taxation
- Current |
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|
(1,446,316) |
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| - Prior |
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|
(1,228) |
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|
|
|
------------------ |
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| Loss After Tax |
|
|
|
(4,743,519) |
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| Accumulated
Loss Brought Forward |
|
(324,773,785) |
|
|
------------------ |
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| Accumulated
Loss Carried Forward |
|
(329,517,304) |
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|
========== |
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|
|
| Chairman's
Review |
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| The
attached Chairman's Review gives the picture of the Company's activities and
performance |
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| during
1999-2000. The Directors of the Company endorse the contents of the Review. |
|
|
| Directors: |
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| Mr.
M. Watanabe, Mr. Y. Suzuki and Capt (Retd.) Bashir Ahmed have come on our
Board of Directors. |
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| Earlier
Mr. A. Kobayashi and Mr. H. Nagao had resigned from the Board. |
|
|
| Auditors: |
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| The
present auditors M/s Sidat Hyder Qamar & Co., Chartered Accountants
retire and being eligible, |
|
| offer
themselves for reappointment. |
|
|
| Pattern
of Shareholding: |
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| The
pattern of holding of the shares of the Company as on 30th June, 2000 is
annexed. |
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|
ON BEHALF OF THE BOARD |
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|
|
|
|
|
DANISHMAND |
|
| 14th,
November, 2000 |
|
(CHAIRMAN) |
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|
|
| PATTERN
OF SHAREHOLDING AS AT JUNE 30, 2000 |
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|
Size of Holding |
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|
Number of |
Number of |
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|
of Rs. 10 Shares |
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|
Shareholders |
Rs. 10 Shares |
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|
Held |
|
|
|
|
| 1 |
-- |
100 |
|
3,047 |
80,664 |
|
| 101 |
-- |
500 |
|
598 |
172,423 |
|
| 501 |
-- |
1000 |
|
267 |
222,511 |
|
| 1001 |
-- |
5000 |
|
387 |
909,318 |
|
| 5001 |
-- |
10000 |
|
78 |
559,929 |
|
| 10001 |
-- |
15000 |
|
23 |
297,288 |
|
| 15001 |
-- |
20000 |
|
11 |
202,001 |
|
| 20001 |
-- |
25000 |
|
10 |
222,509 |
|
| 25001 |
-- |
30000 |
|
5 |
144,700 |
|
| 30001 |
-- |
35000 |
|
4 |
129,700 |
|
| 35001 |
-- |
40000 |
|
4 |
151,156 |
|
| 45001 |
-- |
50000 |
|
1 |
47,600 |
|
| 50001 |
-- |
55000 |
|
1 |
50,100 |
|
| 55001 |
-- |
60000 |
|
1 |
56,500 |
|
| 135001 |
-- |
140000 |
|
1 |
136,500 |
|
| 155001 |
-- |
160000 |
|
1 |
156,100 |
|
| 160001 |
-- |
165000 |
|
1 |
161,735 |
|
| 1520001 |
-- |
1525000 |
|
1 |
1,520,905 |
|
| 1715001 |
-- |
1720000 |
|
1 |
1,717,746 |
|
| 1835001 |
-- |
1840000 |
|
1 |
1,835,304 |
|
| 35120001 |
-- |
35125000 |
|
1 |
35,124,269 |
|
|
|
|
|
------------------ |
------------------ |
|
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|
Total: |
4,444 |
43,898,958 |
|
|
|
|
========== |
========== |
|
|
| CATEGORY
OF SHAREHOLDING |
|
|
| Categories
of Shareholders |
|
|
|
|
|
NON-CDC |
NON-CDC |
NON-CDC |
NON-CDC |
TOTAL |
TOTAL |
|
|
| Shareholder's |
|
No. of |
No. of |
No. of |
No. of |
No. of |
No. of |
|
|
| Category |
|
Shareholders |
Shares |
Shareholders |
Shares |
Shareholders |
Shares |
Percentage |
|
|
|
|
|
|
|
| Individuals |
|
4,232 |
2,856,994 |
141 |
552,274 |
4,373 |
3,409,268 |
7.77 |
|
| Investment
Companies |
4 |
4,137 |
2 |
13,078 |
6 |
17,215 |
0.03 |
|
| Insurance
Companies |
10 |
50,093 |
2 |
23,000 |
12 |
730.93 |
0.17 |
|
| Modarabas |
|
3 |
20,100 |
-- |
-- |
3 |
20,100 |
0.05 |
|
| Joint
Stock Companies |
20 |
60,555 |
7 |
30,500 |
27 |
91,055 |
0.21 |
|
| Financial
institutions |
14 |
3,317,411 |
3 |
4,034 |
17 |
3,321,445 |
7.56 |
|
| Suzuki
Motor Corporation Japan |
1 |
35,124,269 |
-- |
-- |
1 |
35,124,269 |
80.01 |
|
| Pakistan
Automobile Corp. Ltd |
1 |
1,835,304 |
-- |
-- |
1 |
1,835,304 |
4.18 |
|
| Government
Organizations |
2 |
9 |
-- |
-- |
2 |
9 |
0.00 |
|
| Others |
|
-- |
-- |
2 |
7,200 |
2 |
7,200 |
0.02 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
4,287 |
43,268,872 |
157 |
630,086 |
4,444 |
43,898,958 |
100 |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of SUZUKI
MOTORCYCLES PAKISTAN |
|
| LIMITED as at 30 June 2000 and the related profit and loss account and
the statement of changes |
|
| in
financial position (cash flow statement), 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 and,
after due verification |
|
| thereof,
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 |
|
| change
in accounting policy as stated in note 2.3.3 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 and the profit and loss account and the statement of
changes |
|
| in
financial position (cash flow statement), together with the notes forming
part thereof, |
|
| 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 loss and the changes in financial position (cash
flows) |
|
| for
the year then ended; and |
|
|
|
|
|
| d)
in our opinion, no zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
|
|
|
|
SIDAT HYDER QAMAR & CO. |
|
| KARACHI:
14 NOVEMBER 2000 |
|
CHARTERED ACCOUNTANTS |
|
|
|
|
| BALANCE
SHEET AS AT 30 JUNE 2000 |
|
|
|
|
|
|
NOTE |
2000 |
1999 |
|
| Capital
and Reserves |
|
|
|
| Authorised
Capital |
|
| 60,000,000
(1999: 60,000,000) |
|
| ordinary
shares of Rs. 10/- each |
|
|
600,000,000 |
600,000,000 |
|
|
|
|
|
========== |
========== |
|
|
| Issued,
subscribed and paid-up capital |
|
|
|
|
| 43,898,958
(1999: 43,898,958) fully paid |
|
|
|
|
| ordinary
shares of Rs. 10/- each issued for cash |
3 |
438,989,580 |
438,989,580 |
|
|
| Capital reserves |
|
|
3 |
5,932,000 |
5,932,000 |
|
|
| Accumulated
loss |
|
3 |
(329,517,304) |
(324,773,785) |
|
|
|
|
|
|
------------------ |
------------------ |
|
|
|
115,404,276 |
120,147,795 |
|
|
|
|
|
|
| Surplus
on revaluation of fixed assets |
|
35,297,981 |
35,297,981 |
|
|
| Deferred
liabilities |
|
|
2,094,600 |
1,777,108 |
|
|
| Current
liabilities |
|
| Short-term
loans |
|
5 |
215,500,000 |
201,500,000 |
|
|
| Running
finances under mark-up arrangements |
6 |
8,416,063 |
26,270,359 |
|
|
| Creditors,
accrued and other liabilities |
7 |
24,906,409 |
21,136,499 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
248,822,472 |
248,906,858 |
|
|
| Contingencies
and commitments |
|
8 |
-- |
-- |
|
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
Rupees |
401,619,329 |
406,129,742 |
|
|
|
========== |
========== |
|
|
| Fixed
Assets - Tangible |
|
| Operating
assets - at book value |
|
9 |
122,591,840 |
116,365,958 |
|
|
|
| Long-term
loans |
|
10 |
256,055 |
901,464 |
|
| Long-term
deposits |
|
|
1,841,550 |
1,025,650 |
|
| Long-term
installment sales receivables |
11 |
9,645,650 |
6,250,163 |
|
|
|
|
|
|
|
| Current Assets |
|
| Loose tools |
|
1,052,152 |
585,477 |
|
| Stocks-in-trade |
|
12 |
98,412,098 |
109,606,275 |
|
| Current
maturity of long term installment |
|
|
| sales
receivables |
|
11 |
20,822,837 |
8,287,727 |
|
| Trade debts |
|
13 |
89,876,656 |
104,439,404 |
|
| Loans,
advances, deposits, prepayments, investment |
|
| property
and other receivables |
|
14 |
19,498,190 |
23,913,798 |
|
| Cash
and bank balances |
|
15 |
37,622,301 |
34,753,826 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
267,284,234 |
281,586,507 |
|
|
|
------------------ |
------------------ |
|
|
Rupees |
401,619,329 |
406,129,742 |
|
|
|
========== |
========== |
|
|
|
|
|
| Auditors'
Report Annexed |
|
| The
annexed notes form an integral pad of these accounts. |
|
|
|
CHAIRMAN & |
|
|
|
CHIEF EXECUTIVE |
|
|
DIRECTOR |
|
|
|
|
| PROFIT
AND LOSS ACCOUNT FOR THE YEAR ENDED 30 JUNE 2000 |
|
|
|
NOTE |
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
|
| Net sales |
|
| Motorcycles |
|
|
239,481,827 |
236,098,651 |
|
| Complete
built-up units |
|
|
9,503,085 |
2,573,614 |
|
| Spare parts |
|
|
18,941,821 |
15,025,970 |
|
| Wire
harness and components |
|
|
15,835,419 |
601,206 |
|
| Generators |
|
|
-- |
16,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
16 |
283,762,152 |
254,315,441 |
|
| Finance
income on installment sales |
|
5,501,111 |
1,330,827 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
289,263,263 |
255,646,268 |
|
| Cost
of goods sold |
|
17 |
(219,974,782) |
(176,772,363) |
|
|
------------------ |
------------------ |
|
| Gross profit |
|
|
69,288,481 |
78,873,905 |
|
| Selling
and administrative expenses |
18 |
(56,042,009) |
(90,611,164) |
|
|
|
|
------------------ |
------------------ |
|
| Operating
profit / (loss) |
|
|
13,246,472 |
11,737,259 |
|
|
|
|
------------------ |
------------------ |
|
| Financial
charges |
|
19 |
(17,349,860) |
(32,076,152) |
|
| Other income |
|
20 |
807,413 |
245,469 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(16,542,447) |
(31,830,683) |
|
|
------------------ |
------------------ |
|
| Loss
before taxation |
|
|
(3,295,975) |
(43,567,942) |
|
|
|
|
------------------ |
------------------ |
|
| Taxation
- current |
|
21 |
(1,446,316) |
(1,278,231) |
|
| - prior |
|
|
(1,228) |
(1,856) |
|
|
------------------ |
------------------ |
|
|
|
(1,447,544) |
(1,280,087) |
|
|
------------------ |
------------------ |
|
| Loss
after taxation |
|
|
(4,743,519) |
(44,848,029) |
|
| Accumulated
loss brought forward |
|
(324,773,785) |
(279,925,756) |
|
|
|
|
------------------ |
------------------ |
|
| Accumulated
loss carried forward |
Rupees |
(329,517,304) |
(324,773,785) |
|
|
|
|
------------------ |
------------------ |
|
| Loss
per share - Basic |
|
22 |
Rs. 0.11 |
Rs. 1.02 |
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
CHAIRMAN & |
|
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION (CASH FLOW STATEMENT) |
|
| FOR
THE YEAR ENDED 30 JUNE 2000 |
|
|
|
|
NOTE |
2000 |
1999 |
|
| CASH
FLOWS FROM OPERATING ACTIVITIES |
|
|
| Loss
before taxation |
|
(3,295,975) |
(43,567,942) |
|
| Adjustment
of non-fund items: |
|
|
|
| Depreciation |
|
|
13,428,845 |
11,505,969 |
|
| Financial
charges-net |
|
17,349,860 |
32,076,152 |
|
| Gain
on disposal of fixed assets |
|
(318,903) |
(187,440) |
|
| Inventory
write down |
|
3,477,561 |
-- |
|
| Provision
for gratuity |
|
515,680 |
478,940 |
|
| Provision
for doubtful debts |
|
-- |
24,571,974 |
|
| Reversal
of provision for doubtful debts |
|
(12,444,611) |
-- |
|
| Provision
for employees accumulating |
|
|
|
| Compens |
