| AKD Securities & Safe Deposit Company
Limited |
|
|
|
|
| Annual
Report 2001 |
|
|
|
| Contents |
|
|
| Company
Information |
|
| Notice
of Meeting |
|
| Directors'
Report |
|
| Auditors'
Report |
|
| Balance
Sheet |
|
| Profit
& Loss Account |
|
| Cash
Flow Statement |
|
| Statement
of Changes in Equity |
|
| Notes
to the Accounts |
|
|
|
| COMPANY
INFORMATION |
|
|
| Board
of Directors |
|
| Mr.
Aqeel A. Karim Dhedhi |
|
| (Chairman) |
|
| Mr.
Faisal Bengali |
|
| (Chief
Executive) |
|
| Mr.
Haji A. Karim Haji Abdul Rehman Dhedhi |
|
| Ms.
Hina Aqeel |
|
| Mrs.
Mehrunnisa Siddique |
|
| Mr.
Tariq Adam Ghumra |
|
| Mrs.
Yasmeen Aqeel A. Karim |
|
|
| Company
Secretary |
|
| Mr.
Ilyas Haji Ahmed |
|
|
| Auditors |
|
| Hyder
Bhimji & Co. |
|
| Chartered
Accountants |
|
|
| Bankers |
|
| Muslim
Commercial Bank Ltd. |
|
| United
Bank Ltd. |
|
|
| Legal
Advisors |
|
| Saiyda
Dilshad Begum |
|
|
| Registered
Office |
|
| 533-534,
Karachi Stock Exchange Bldg., |
|
| Karachi-74000 |
|
| Tel:
(92-21) 2436461 (3 lines) |
|
| Fax:
(92-21) 2426429 |
|
|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
|
| Notice
is hereby given that the Sixty Sixth Annual General Meeting of the
Shareholders |
|
| of
the Company will be held at the Registered Office of the Company at 533-534, |
|
| Karachi
Stock Exchange Building, Stock Exchange Road, Karachi, on Friday December |
|
| 28,
2001, at 10:00 a.m. to, transact the following business: |
|
|
| 1.
To confirm the Minutes of the Annual General Meeting held on December 30,
2000. |
|
|
| 2.
To receive, consider and adopt the Annual Accounts for the year ended June
30, 2001 |
|
| together
with Directors and Auditors Report thereon. |
|
|
| 3.
To appoint Auditors and to fix their remuneration. |
|
|
| 4.
To transact any other business with the permission of the chair, |
|
|
|
By order of the Board |
|
|
|
|
| Place'
Karachi |
|
|
|
| Dated'
December 1, 2001 |
|
Company Secretary |
|
|
| NOTES: |
|
|
| 1.
The Share Transfer books of the Company will remain closed from December 21, |
|
| 2001
to December 28, 2001 (both days inclusive.) |
|
|
| 2.
A member entitled to attend and vote at this meeting may appoint a proxy. A
proxy |
|
| form
must be received at the Registered Office of the Company duly stamped, signed |
|
| and
witnessed not less than 48 hours before the meeting. |
|
|
| 3.
Members are requested to notify the Company of any change in their address. |
|
|
|
|
| DIRECTORS'
REPORT |
|
|
| The
Directors have pleasure in presenting the Annual Report together with the
Audited Accounts for |
|
| the
year ended June 30, 2001. |
|
|
| The
Financial results are as follows: |
|
|
| Profit for the year before
taxation |
|
Rs. |
13,400 |
|
| Provision for taxation |
|
Rs. |
(260,691) |
|
|
|
---------- |
|
| Profit / (Loss) after taxation |
|
Rs. |
(247,291) |
|
| Unappropriated Profit brought
forward |
|
Rs. |
1,041,778 |
|
|
|
---------- |
|
| Profit
carried forward to Balance Sheet |
|
Rs. |
794,487 |
|
|
========== |
|
|
|
|
| During
the year The Company earned a profit of Rs. 13,400/- as against a profit of
Rs. 1,768,414/- of |
|
| the
last year. The decline in profit is mainly due to inactive & bearish
trend on the Stock Exchange |
|
| and
provision against debts considered doubtful amounting to Rs. 313,360/-. The
Company could not |
|
| generate
sufficient capital gain as reported last year due to above mentioned reason.
Further the |
|
| Income
Tax pertaining to Assessment year 1997-98 & 2000-2001 were reassessed by
the Inspecting |
|
| Additional
Commissioner of Income Tax on the plea that the income from business &
capital gain |
|
| are
two distinct and separate head of income and should be allocated accordingly.
The department |
|
| raised
a demand of Rs. 259,491/- which was paid by the Company. Due to reason
mentioned above |
|
| the
Company suffered a after tax loss of Rs. 247,291/-. |
|
|
| Future
Outlook |
|
| The
future profitability of the Company depends on the trend in the Stock Market
which is sluggish |
|
| at
present and the Directors are not in a position to give any firm commitment.
However your |
|
| management
is trying hard to report better profit in the ensuing year. |
|
|
| Auditors |
|
| The
Auditors M/s Hyder Bhimji & Co., Chartered Accountants retire and being
eligible offer |
|
| themselves
for appointment in the coming year. |
|
|
| Pattern
of Shareholding |
|
| The
pattern of shareholding as on June 30, is annexed to this report. |
|
|
| Acknowledgment |
|
| We
offer our sincere gratitude to the Board of Directors for their guidance and
support during the |
|
| year.
We also wish to place our appreciation for the Shareholders, Auditors,
Securities & Exchange |
|
| Commission
of Pakistan and Staff of the Company. |
|
|
| On
behalf of the Board of Directors. |
|
|
| FAISAL
BENGALI |
|
| Chief
Executive |
|
| Karachi
the December 1, 2001 |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed Balance Sheet of M/S. AKD SECURITIES & SAFE |
|
| DEPOSIT
CO. LTD, as at June 30, 2001 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 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 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 |
|
| 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 the Statement of Changes in Equity together with the notes |
|
| forming
part thereof confirm 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, 2001 and of the loss, its cash flows |
|
| and
changes in equity for the year then ended; and |
|
|
| d)
in our opinion, no Zakat was deductible at source under the Zakat and Ushr |
|
| Ordinance,
1980. |
|
|
|
HYDER BHIMJI & CO. |
|
|
| KARACHI:
the December 1, 2001 |
|
CHARTERED ACCOUNTANTS |
|
|
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 2001 |
|
|
|
|
|
2001 |
2000 |
|
|
Note |
Rupees |
Rupees |
|
| CAPITAL
& RESERVES |
|
| AUTHORISED |
|
3 |
100,000,000 |
100,000,000 |
|
| Issued,
Subscribed & Paid Up |
|
|
========== |
========== |
|
| Capital |
|
4 |
22,312,531 |
1,488,443 |
|
| Reserve
for Bonus Shares |
|
-- |
742,815 |
|
| Unappropriated
Profit |
|
7,944,871 |
1,041,778 |
|
|
---------- |
---------- |
|
|
3,025,740 |
3,273,036 |
|
| CURRENT
LIABILITIES |
|
| Accrued
Expenses & Other Liabilities |
|
5 |
4,815,911 |
481,591 |
|
| Deposit-Key
Deposit Lockers |
|
362,901 |
36,290 |
|
| Unclaimed
Dividend |
|
280,300 |
353,022 |
|
| Provision
for Taxation |
|
1,254,541 |
29,842 |
|
|
---------- |
---------- |
|
|
923,635 |
900,745 |
|
|
---------- |
---------- |
|
|
3,949,375 |
4,173,781 |
|
|
========== |
========== |
|
| FIXED
ASSETS |
|
| Operating
Assets |
|
6 |
687,665 |
802,871 |
|
|
| CURRENT
ASSETS |
|
| Trade Debts |
|
7 |
-- |
313,360 |
|
| Short
Term Investments |
|
8 |
1,770,629 |
629 |
|
|
|
|
|
| Prepayments |
|
9 |
30,137 |
-- |
|
| Advance
Income Tax |
|
|
-- |
153,079 |
|
| Cash
& Bank Balances |
|
10 |
1,460,944 |
2,903,842 |
|
|
|
---------- |
---------- |
|
|
|
3,261,710 |
3,370,910 |
|
|
|
---------- |
---------- |
|
|
3,949,375 |
4,173,781 |
|
|
========== |
========== |
|
| NOTE:
The annexed notes form an integral part of these accounts. |
|
|
|
Faisal Bengali |
|
Tariq Adam Ghumra |
|
| Karachi
the December 1, 2001 |
Chief Executive |
|
Director |
|
|
|
| PROFIT
& LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 2001 |
|
|
|
|
2001 |
2000 |
|
|
Note |
Rupees |
Rupees |
|
| Operating
Revenue |
|
11 |
240,000 |
429,521 |
|
| Capital
Gain / (Loss) on Investment |
|
12 |
541,053 |
1,690,600 |
|
|
---------- |
---------- |
|
|
781,053 |
2,120,121 |
|
|
| Operating
Expenses |
|
13 |
454,293 |
351,707 |
|
| Provision
against debts considered doubtful |
|
313,360 |
-- |
|
|
---------- |
---------- |
|
|
767,653 |
351,707 |
|
|
---------- |
---------- |
|
| Net
Profit before taxation |
|
13,400 |
1,768,414 |
|
| Provision
for Taxation - Current |
|
(1,200) |
(29,842) |
|
| - Prior |
|
(259,491) |
|
|
---------- |
---------- |
|
|
(260,691) |
(29,842) |
|
|
---------- |
---------- |
|
| Net
Profit / (Loss) after taxation |
|
(247,291) |
1,738,572 |
|
| Unappropriated
Profit brought forward |
|
1,041,778 |
46,021 |
|
|
---------- |
---------- |
|
|
794,487 |
1,784,593 |
|
| Appropriation: |
|
|
| Reserve
for Bonus Shares (2000: 50%) |
|
-- |
742,815 |
|
|
---------- |
---------- |
|
|
-- |
742,815 |
|
|
---------- |
---------- |
|
| Unappropriated
Profit carried forward to Balance Sheet |
|
794,487 |
1,041,778 |
|
|
========== |
========== |
|
| Earning
per share |
|
15 |
(1.11 ) |
11.70 |
|
|
| NOTE:
The annexed notes form an integral part of these accounts. |
|
|
|
Faisal Bengali |
|
Tariq Adam Ghumra |
|
| Karachi
the December 1, 2001 |
Chief Executive |
|
Director |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED JUNE 30, 2001 |
|
|
|
2001 |
2000 |
|
|
Rupees |
Rupees |
|
| Cash
Generated from Operating Activities |
|
| Net
Profit Before Taxation |
|
13,400 |
1,768,414 |
|
| Adjustment
for: |
|
|
|
| Reserve
for Bonus shares |
|
(5) |
-- |
|
| Depreciation |
|
115,206 |
105,652 |
|
|
---------- |
---------- |
|
| Profit
before working capital changes |
|
128,601 |
1,874,066 |
|
|
| Changes
in working capital:- |
|
| (Increase)
/ Decrease in Current Assets: |
|
| Trade Debts |
|
313,360 |
-- |
|
| Prepayments |
|
(30,137) |
-- |
|
| Increase
/ (Decrease) in Current Liabilities: |
|
|
|
| Accrued
Expenses & Other Liabilities |
|
-- |
(10,000) |
|
|
---------- |
---------- |
|
|
283,223 |
(10,000) |
|
|
---------- |
---------- |
|
| Cash
generated from operations |
|
411,824 |
1,864,066 |
|
| Taxes Paid |
|
(12,000) |
(21,000) |
|
|
---------- |
---------- |
|
|
(12,000) |
(21,000) |
|
|
---------- |
---------- |
|
| Net
Cash Generated from Operating Activities |
|
399,824 |
1,843,066 |
|
|
| Cash
(Outflow) / Inflow from Investing Activities |
|
| Fixed
Capital Expenditure |
|
-- |
323,413 |
|
| Investment |
|
(1,770,000) |
-- |
|
| Security
Deposit |
|
-- |
(323,413) |
|
|
---------- |
---------- |
|
| Net
cash inflow / (outflow) from investing activities |
|
(1,770,000) |
-- |
|
|
---------- |
---------- |
|
|
(1,370,176) |
1,843,066 |
|
| Cash
(Outflow) / Inflow from Financing Activities |
|
| Payment
of Dividend |
|
(72,722) |
-- |
|
|
---------- |
---------- |
|
| Net
Increase in Cash & Cash equivalent |
|
(1,442,898) |
1,843,066 |
|
| Cash
& Cash Equivalent at the beginning of the year |
|
2,903,842 |
1,060,776 |
|
|
---------- |
---------- |
|
| Cash
& Cash Equivalent at the end of the year |
|
1,460,944 |
2,903,842 |
|
|
========== |
========== |
|
|
|
|
|
Faisal Bengali |
|
Tariq Adam Ghumra |
|
| Karachi
the December 1, 2001 |
Chief Executive |
|
Director |
|
|
|
|
|
|
|
|
|
|
|
| STATEMENT
OF CHANGES IN EQUITY |
|
|
|
| FOR
THE YEAR ENDED JUNE 30, 2001 |
|
|
|
|
|
|
|
|
|
Issued, |
Reserve for |
|
|
|
subscribed |
Business |
Accumulated |
Total |
|
|
& paid up |
Shares |
Profit |
|
|
|
Rupees |
Rupees |
Rupees |
Rupees |
|
| Balance
as at June 30, 1999 |
1,488,443 |
-- |
46,021 |
1,534,464 |
|
| Profit
for the year |
|
-- |
-- |
1,738,572 |
1,738,572 |
|
| Reserve
for Bonus Shares |
|
-- |
742,815 |
(742,815) |
-- |
|
|
---------- |
---------- |
---------- |
---------- |
|
| Balance
as at June 30, 2000 |
1,488,443 |
742,815 |
1,041,778 |
3,273,036 |
|
| Profit
for the year |
|
-- |
-- |
(247,291) |
(247,291) |
|
| Reserve
for Bonus Shares |
|
742,810 |
(742,815) |
-- |
(5) |
|
|
---------- |
---------- |
---------- |
---------- |
|
| Balance
as at June 30, 2001 |
2,231,253 |
-- |
794,487 |
3,025,740 |
|
|
========== |
========== |
========== |
========== |
|
|
|
| NOTES
TO THE ACCOUNTS FOR THE YEAR ENDED JUNE 30, 2001 |
|
|
| 1.
THE COMPANY AND ITS BUSINESS: |
|
| The
Company was incorporated as a Public Limited Company in the year 1936 and its |
|
| shares
are quoted on the Karachi Stock Exchange. The principal activity of the
Company |
|
| is
to deal in and act as underwriters/advisors for shares and securities and
also engage |
|
| in
leasing/hiring of safe deposit lockers. |
|
|
| 2.
ACCOUNTING POLICIES: |
|
| 2.1
Accounting Convention |
|
| The
accounts of the Company are prepared under historic cost convention. |
|
|
| 2.2
Fixed Assets: |
|
| a)
Fixed Assets are stated at cost less accumulated depreciation. |
|
| b)
Full year's depreciation is charged on the Assets acquired during the year, |
|
| whereas
no depreciation is charged in the year of disposal. |
|
| c)
Depreciation is charged on the Assets by reducing balance method. |
|
| d)
Normal repairs and maintenance are charged to income as & when incurred. |
|
|
| 2.3
Short Term Investment: |
|
| Investment
in quoted shares is stated at cost. Provision for diminution in the value |
|
| of
investment is made in the accounts if any. |
|
|
| 2.4
Trade Debts: |
|
| These
are stated net of provision for doubtful debts. Full provision is made
against |
|
| debts
considered doubtful. |
|
|
| 2.5
Revenue Recognition: |
|
| a)
Realised gains on investment |
|
| Capital
gain or losses on sale of investments are taken to income in the period |
|
| in
which they arise. |
|
| b)
Dividend income is recognised at the time of book closure of the company |
|
| declaring
the dividend. |
|
| c)
Consultancy and advisory fee are recognised as and when services are |
|
| provided. |
|
| d)
Hiring income of lockers is recognised as and when locker services are |
|
| provided. |
|
|
| 2.6
Taxation: |
|
| The
charge for current taxation is based on taxable income, if any, at the
current |
|
| rate
of taxation after considering admissible tax credits and rebates, if any. The |
|
| Company's
accounts for deferred taxation based on the material timing differences |
|
| using
the liability method, but does not account for any net deferred tax. |
|
|
|
|
2001 |
2000 |
|
|
Rupees |
Rupees |
|
| 3.
AUTHORISED CAPITAL |
|
| 10,000,000
Ordinary shares of Rs 10/- each. |
|
100,000,000 |
100,000,000 |
|
|
========== |
========== |
|
|
|
|
| 4.
ISSUED, SUBSCRIBED & |
|
| PAID
UP CAPITAL |
|
| 49,521
Ordinary shares of Rs 10/- |
|
| fully paid in cash. |
|
495,210 |
495,210 |
|
| 173,323
Ordinary shares of Rs 10/- (2000-99042) |
|
| issued as fully paid Bonus
Shares |
|
1,733,230 |
990,420 |
|
| 479
Ordinary shares of Rs 10/- each |
|
| forfeited |
|
2,813 |
2,813 |
|
|
---------- |
---------- |
|
|
2,231,253 |
1,48 8,443 |
|
|
========== |
========== |
|
|
|
|
| 5.
ACCRUED EXPENSES & OTHER LIABILITIES |
|
| Accrued Expenses |
|
25,006 |
25,006 |
|
| Other Liabilities |
|
456,585 |
456,585 |
|
|
---------- |
---------- |
|
|
481,591 |
481,591 |
|
|
========== |
========== |
|
|
|
|
| 6.
FIXED ASSETS |
|
|
COST |
|
DEPRECIATION |
|
| Particulars |
|
As at |
Addition |
As at |
Rate |
As at |
For the |
As at |
Value as on |
|
30-06-00 |
|
30-06-01 |
% |
30-06-00 |
year |
30-06-01 |
30-06-01 |
| Furniture |
|
276,350 |
-- |
276,350 |
10 |
101,132 |
17,522 |
118,654 |
157,696 |
| Office
Equipment |
413,500 |
-- |
413,500 |
10 |
154,219 |
25,929 |
180,148 |
233,352 |
| Computers |
|
296,663 |
-- |
296,663 |
20 |
65,883 |
46,156 |
112,039 |
184,624 |
| Motor
Vehicle |
148,000 |
-- |
148,000 |
20 |
29,600 |
23,680 |
53,280 |
94,720 |
| Lockers |
|
32,500 |
-- |
32,500 |
10 |
13,308 |
1,919 |
15,227 |
17,273 |
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
| Total
Rs! 2001 |
843,600 |
-- |
1,167;013 |
|
364,142 |
|
115;206 479,348 |
687;665 |
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
| Total
Rs. 2000 |
843,600 |
323,413 |
1,167,013 |
|
258,490 |
105,652 |
364,142 |
802,871 |
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
|
| 6.1
The depreciation rate on computers have been revised from 10% to 20% as the |
|
| management
has re-estimated useful life of this asset. Had the depreciation rate not
been |
|
| revised
the profit for the year would have been increased by Rs. 23,078/-. |
|
|
| 7.
TRADE DEBTS- (UNSECURED) |
|
| Considered Good |
|
-- |
313,360 |
|
| Considered Doubtful |
|
313,360 |
-- |
|
|
---------- |
---------- |
|
|
313,360 |
313,360 |
|
| Provision against debt
considered doubtful |
|
(313,360) |
-- |
|
|
---------- |
---------- |
|
|
-- |
313,360 |
|
|
|
========== |
========== |
|
|
|
2001 |
2000 |
|
|
Rupees |
Rupees |
|
| 8.
SHORT TERM INVESTMENT |
|
| 119 shares Pakistan
Jute & Synthetics Ltd. |
|
629 |
629 |
|
| (1999:119
shares) |
|
|
|
| 100,000
shares of Dewan Salman Fibres Ltd. |
8.1 |
1,770,000 |
-- |
|
|
|
|
---------- |
---------- |
|
|
1,770,629 |
629 |
|
|
========== |
========== |
|
|
|
|
| 8.1
The market value of Investment as at |
|
|
|
| June
30, 2001 is Rs. 1,810,000/= |
|
|
| 9.
PREPAYMENTS |
|
| P |
