| Genertech Pakistan Limited |
|
|
|
|
|
|
|
| Annual
Report 2001 |
|
|
|
| CONTENTS |
|
|
| COMPANY
INFORMATION |
|
|
| NOTICE
OF MEETING |
|
|
| PATTERN
OF HOLDING OF SHARES |
|
| DIRECTORS'
REPORT |
|
|
| AUDITORS'
REPORT |
|
|
| BALANCE
SHEET |
|
|
| PROFIT
AND LOSS ACCOUNT |
|
|
| CASH
FLOW STATEMENT |
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| NOTES
TO THE ACCOUNTS |
|
|
|
|
| COMPANY
INFORMATION |
|
|
| CHAIRMAN/CHIEF
EXECUTIVE |
Jahangir Elahi |
|
|
|
|
| DIRECTORS |
|
Jahangir Elahi |
|
|
|
Tanvir Elahi |
|
|
|
Amir Jahangir |
|
|
|
Shahrukh Elahi |
|
|
|
Sheikh Muhammad Ashraf |
|
|
|
Tariq Latif |
|
|
|
Muhammad Shafiq Gill
(Nominee ICP) |
|
|
|
| CORPORATE
SECRETARY |
Tariq Latif |
|
|
| AUDITORS |
|
M/s Zahid Jamil & Co. |
|
|
|
Chartered Accountants |
|
|
|
(Member of IGAF
Worldwide) |
|
|
|
|
| LEGAL
ADVISOR |
M/s. Rizvi & Company |
|
|
|
|
| BANKERS |
|
Askari Commercial Bank
Limited |
|
|
|
Emirates Bank
International P.J.S.C. |
|
|
|
The Bank of Punjab |
|
|
|
Union Bank Limited |
|
|
|
United Bank Limited |
|
|
| REGISTERED
OFFICE |
31/C-1, Ghalib Road,
Gulberg III, |
|
|
|
Lahore - Pakistan. |
|
|
|
Tel: (042) 5710216-20 /
5751811-14 |
|
|
|
Fax: (042) 5712881 /
5756686 |
|
|
|
|
| PLANT |
|
49th Kilometer, Lahore
Multan Road, |
|
|
|
Near Bhai Pheru, Tehsil
Chunian, |
|
|
|
District Kasur. |
|
|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
|
| Notice
is hereby given that the Eleventh Annual General Meeting of the Shareholders
of |
|
| the
company will be held at the registered office at 31/C-1, Ghalib Road, |
|
| Gulberg
III, Lahore, on Monday December 31, 2001 at 11.00 A.M. to transact the
following |
|
| business: |
|
|
| 1.
To confirm minutes of the last Annual General Meeting. |
|
|
|
|
| 2.
To receive and adopt the audited accounts for the year ended June 30, 2001
together |
|
| with
the Auditors' and Directors' report thereon. |
|
|
|
| 3.
To appoint auditors for the current year and fix their remuneration. The
present |
|
| auditors
M/s. Zahid Jamil & Co., Chartered Accountants, (Member of IGAF Worldwide) |
|
| being
eligible, have offered themselves for re-appointment. |
|
|
| 4.
To discuss any other matter with the permission of the chair. |
|
|
|
|
By order of the Board |
|
|
|
|
|
|
|
TARIQ LATIF |
|
| Lahore:
December 01, 2001 |
|
Corporate Secretary |
|
|
| NOTES: |
|
|
| 1.
The Share Transfer Books of the company shall remain closed from December 22, |
|
| 2001
to December 31, 2001 (both days inclusive). Transfers received in order, at
31/C-1, |
|
| Ghalib
Road, Gulberg III, Lahore, the Shares Department of the company, at the close
of |
|
| business
on December 21, 2001 shall be treated in time. |
|
|
| 2.
A member entitled to attend and vote at the meeting may appoint another |
|
| member
as his / her proxy to attend and vote instead of him / her. Proxies in order
to be |
|
| effective
must be received at the company's registered office not less than 48 hours |
|
| before
the time for holding the meeting. Account and sub account holders of the |
|
| Central
Depository System appointing proxies must attach attested copy of their
National |
|
| Identity
Card with the proxy form. |
|
|
| 3.
Account holders and sub-account holders, holding book entry securities of the
company |
|
| in
CDS of Central Depository Co. of Pakistan Ltd., who wish to attend this
meeting |
|
| are
requested to please bring original National Identity Card with copy thereof |
|
| duly
attested by their Bankers for identification purpose. |
|
|
| 4.
Shareholders are requested to promptly notify the company of any change in
their |
|
| addresses. |
|
|
|
|
|
|
| 112 |
1 |
-- |
100 |
6,839 |
|
| 256 |
101 |
-- |
500 |
72,885 |
|
| 1564 |
501 |
-- |
1000 |
884,930 |
|
| 913 |
1001 |
-- |
5000 |
1,796,754 |
|
| 190 |
5001 |
-- |
10000 |
1,236,280 |
|
| 91 |
10001 |
-- |
15000 |
1,093,130 |
|
| 23 |
15001 |
-- |
20000 |
415,620 |
|
| 26 |
21001 |
-- |
25000 |
602,360 |
|
| 19 |
25001 |
-- |
30000 |
557,920 |
|
| 2 |
30001 |
-- |
35000 |
71,650 |
|
| 3 |
35001 |
-- |
40000 |
117,260 |
|
| 4 |
40001 |
-- |
45000 |
184,480 |
|
| 3 |
45001 |
-- |
50000 |
146,030 |
|
| 12 |
50001 |
-- |
55000 |
646,500 |
|
| 2 |
55001 |
-- |
60000 |
116,100 |
|
| 1 |
60001 |
-- |
65000 |
62,300 |
|
| 1 |
65001 |
-- |
70000 |
68,650 |
|
| 2 |
70001 |
-- |
75000 |
151,050 |
|
| 1 |
75001 |
-- |
80000 |
75,900 |
|
| 1 |
80001 |
-- |
85000 |
82,080 |
|
| 1 |
85001 |
-- |
90000 |
87,600 |
|
| 3 |
100001 |
-- |
110000 |
322,000 |
|
| 1 |
135001 |
-- |
140000 |
135,970 |
|
| 1 |
140001 |
-- |
145000 |
142,000 |
|
| 1 |
160001 |
-- |
165000 |
165,000 |
|
| 1 |
185001 |
-- |
190000 |
186,050 |
|
| 1 |
190001 |
-- |
195000 |
192,500 |
|
| 2 |
230001 |
-- |
240000 |
474,700 |
|
| 1 |
290001 |
-- |
295000 |
291,200 |
|
| 1 |
345001 |
-- |
350000 |
349,600 |
|
| 3 |
606001 |
-- |
675000 |
1,959,070 |
|
| 1 |
705001 |
-- |
710000 |
706,420 |
|
| 1 |
745001 |
-- |
750000 |
748,500 |
|
| 1 |
935001 |
-- |
940000 |
939,235 |
|
| 1 |
1301001 |
-- |
1305000 |
1,309,687 |
|
| 1 |
1366001 |
-- |
1370000 |
1,373,680 |
|
| 1 |
2025001 |
-- |
2030000 |
2,028,070 |
|
| ------------------ |
|
|
|
------------------ |
|
| 3248 |
|
|
|
19,800,000 |
|
| ========== |
|
|
|
========== |
|
|
| CATEGORIES
OF |
|
Number of |
Shares |
|
|
| SHARE
HOLDERS |
|
Share Holders |
held |
Percentage |
|
|
| 1. Individuals |
|
3,132 |
7,998,753 |
40.40 |
|
| 2.
Investment Companies |
|
17 |
135,370 |
0.68 |
|
| 3.
Insurance Companies |
|
5 |
1,072,300 |
5.42 |
|
| 4.
Joint Stock Companies |
|
54 |
6,588,197 |
33.28 |
|
| 5.
Financial Institutions |
|
18 |
3,184,555 |
16.08 |
|
| 6.
Modaraba Companies |
|
5 |
22,150 |
0.11 |
|
| 7.
Foreign Investors |
|
8 |
57,995 |
0.29 |
|
| 8.
Leasing Companies |
|
1 |
22,000 |
0.11 |
|
| 9. Others |
|
8 |
718,680 |
3.63 |
|
|
|
------------------ |
------------------ |
------------------ |
|
| TOTAL:- |
|
3,248 |
19,800,000 |
100.00 |
|
|
|
========== |
========== |
========== |
|
|
|
|
|
|
| DIRECTORS'
REPORT |
|
|
| The
directors of your company welcome you to the Eleventh Annual General Meeting
of the |
|
| company
and present their report together with the audited financial statement of the
company |
|
| for
the year ended June 30, 2001. |
|
|
| OPERATING
RESULTS |
|
| The
period under review is marred with high purchasing price of Heavy Furnace Oil
(HFO) as |
|
| compared
to last year ended on June 30, 2000. The HFO and HSD prices continued on
higher |
|
| side
and HFO remained in five digits during the year. The lowest price recorded
was Rs. 11,349 |
|
| per
ton and the highest price was Rs. 15,109 per ton (Inclusive of all
incidentals). On overall |
|
| average
basis, there is almost 50% increase in HFO prices as compared to last
financial year. |
|
|
| After
deregulation of POL prices, no regulatory authority is yet formed and as a
result PSO is |
|
| provided
maximum benefit of monopoly. Furthermore, in parallel with international
market, the |
|
| timely
impact of downward changes in HFO price was not transferred to end users.
Hence the |
|
| prices
of HFO remained on higher side and recorded highest ratio to the revenue. As
a |
|
| consequence,
the ratio for HFO and lube to sales jumped from 67% in year 2000 to 82% in
year |
|
| 2001.
As a result, first time in the history of your company, since commercial
production, loss |
|
| for
Rs. 84.80 Million was recorded on annual basis. |
|
|
| It
is pertinent to mention here that this year's revenue figure is the highest
ever recorded in the |
|
| history
of your company. But benefit of this could not be achieved due to high
purchasing price |
|
| of
HFO. Even minor increase in WAPDA tariff could not give any positive impact.
However, |
|
| after
close of financial year under review, the HFO prices came down and operating
results for |
|
| second
half of the current year are comparatively better. |
|
|
| Despite
the obvious hardships explained above, your company met all its liabilities
on account |
|
| of
repayment of suppliers credit loan on due time. Though it added to the
current year's |
|
| financial
cost, but the default on this account could have resulted in higher cost to
the company, |
|
| due
to expiry of foreign exchange risk coverage contract with State Bank of
Pakistan. |
|
| Furthermore,
in spite of these financial stresses, the management tried its best to adhere
to the |
|
| standardized
maintenance requirements of the plant to keep its operational life and
efficiency |
|
| level
on optimum, which again resulted into enhanced bank borrowings and
comparatively |
|
| high
financial cost. |
|
|
| It
is important to mention here that all other cost factors for manufacturing
and administrative |
|
| purposes
were remained in limits as set forth by the management. During the year under |
|
| review,
the Zakat was properly deducted, however by omission could not deposited in
time.. |
|
|
| DIVIDEND |
|
| Viewing
the financial results for the year being reported, the board of directors of
your company |
|
| decided
to pass over the dividend for the year. |
|
|
| EARNING
PER SHARE |
|
| These
financial results brought Earning Per Share from Rs. 0.56 to Rs. (4.28). |
|
|
|
| FUTURE
PROSPECTS |
|
| In
continuance of our remarks mentioned in last Half Yearly Accounts, under
presently |
|
| developing
economic / political scenario at local as well as at international level, the
future |
|
| planning
and targets are getting more difficult and uncertain. It seems that the
present |
|
| economic
position of the country is continuously deteriorating and recent incident of |
|
| September
11, 2001 added fuel to the situation. As a result the overall industry is
sharing the |
|
| burden
of these economic pressures. However, keeping in view some recent decrease in
HFO |
|
| prices
in international as well as in local market, management hopes for better
results from the |
|
| end
of second quarter of current year. |
|
|
| AUDITORS |
|
| The
retiring auditors M/S. Zahid Jamil & Company, Chartered Accountants,
(Member of IGAF |
|
| Worldwide)
being eligible offer themselves for re-appointment. |
|
|
| ACKNOWLEDGMENT |
|
| Directors
wish to place on record their appreciation for the dedicated work of staff
and |
|
| executives
of the company. |
|
|
| PATTERN
OF SHAREHOLDING |
|
| The
pattern of shareholding, as on June 30, 2001, as required under section 236
of the |
|
| Companies
Ordinance 1984, is enclosed. |
|
|
|
|
For and on behalf of |
|
|
|
BOARD OF DIRECTORS |
|
|
|
|
|
|
|
JAHANGIR ELAHI |
|
| Lahore:
December 01, 2001 |
|
Chief Executive |
|
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of Genertech
Pakistan Limited 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 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 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,
except for the effect of the matter referred to in note 11.1, 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, 2001 and of the loss and 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 not deposited in the Central Zakat Fund |
|
| established
under section 7 of that Ordinance. |
|
|
| LAHORE: |
|
|
ZAHID JAMIL & CO. |
|
| Dated:
November 30, 2001 |
|
(Chartered Accountants) |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 2001 |
|
|
|
|
NOTE |
2001 |
2000 |
|
|
|
|
Rupees |
Rupees |
|
|
| SHARE
CAPITAL AND RESERVES |
|
| Authorised
share capital |
|
| 20,000,000
ordinary shares of Rs. 10 each |
|
200,000,000 |
200,000,000 |
|
|
========== |
========== |
|
|
| Issued,
subscribed and paid up share capital |
|
| 19,800,000
ordinary shares of Rs. 10 each |
|
|
| fully
paid up in cash |
|
3 |
198,000,000 |
180,000,000 |
|
|
| Premium
on issue of shares |
|
|
114,945,750 |
114,945,750 |
|
|
| Reserve
for issue of bonus shares |
|
|
-- |
18,000,000 |
|
|
| Revenue
reserve |
|
4 |
165,000,000 |
165,000,000 |
|
|
| Unappropriated
(loss)/profit |
|
|
(81,554,378) |
3,249,042 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
396,391,372 |
481,194,792 |
|
|
|
| LONG
TERM LOAN |
|
5 |
84,500,000 |
-- |
|
|
|
| LIABILITIES
AGAINST ASSETS SUBJECT |
|
| TO
FINANCE LEASE |
|
6 |
92,175,080 |
99,132,944 |
|
|
|
| CURRENT
LIABILITIES |
|
|
|
| Current
portion of long term liabilities |
7 |
104,301,663 |
125,504,013 |
|
| Short
term bank borrowings |
|
8 |
270,596,184 |
164,003,349 |
|
| Creditors,
accrued and other liabilities |
9 |
53,780,311 |
45,758,559 |
|
| Dividend
payable |
|
|
4,550,498 |
17,737,698 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
433,228,656 |
353,003,619 |
|
| CONTINGENCIES
AND COMMITMENTS |
10 |
-- |
-- |
|
|
------------------ |
------------------ |
|
|
|
1,006,295,108 |
933,331,355 |
|
|
========== |
========== |
|
|
|
|
| TANGIBLE
FIXED ASSETS |
|
|
|
| Operating
fixed assets |
|
11 |
655,971,613 |
694,463,258 |
|
|
|
|
|
|
| Capital
work-in-progress |
|
12 |
22,795,675 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
678,767,288 |
694,463,258 |
|
|
| LONG
TERM DEPOSITS |
|
13 |
19,092,083 |
20,864,448 |
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Stores
and spares |
|
14 |
68,225,038 |
63,498,215 |
|
| Trade debts |
|
15 |
134,221,867 |
52,984,723 |
|
| Advances,
prepayments and other |
|
|
| receivables |
|
16 |
89,552,695 |
58,959,848 |
|
| Cash
and bank balances |
|
17 |
16,436,137 |
42,560,863 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
308,435,737 |
218,003,649 |
|
|
|
|
------------------ |
------------------ |
|
|
1,006,295,108 |
933,331,355 |
|
|
========== |
========== |
|
|
|
|
| The
annexed notes from 1 to 27 form an integral part of these accounts. Auditor's
report |
|
| to
the members is annexed here to. |
|
|
|
JAHANGIR ELAHI |
|
TANVIR ELAHI |
|
|
Chief Executive |
|
Director |
|
|
|
| PROFIT
AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2001 |
|
|
|
NOTE |
2001 |
2000 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
|
| SALES (Net) |
|
|
596,301,539 |
561,949,981 |
|
| COST
OF SALES |
|
18 |
592,078,566 |
479,877,615 |
|
|
|
|
------------------ |
------------------ |
|
| GROSS
PROFIT |
|
|
4,222,973 |
82,072,366 |
|
| ADMINISTRATIVE
AND GENERAL EXPENSES |
19 |
10,555,209 |
8,591,730 |
|
|
|
|
------------------ |
------------------ |
|
| OPERATING
(LOSS) / PROFIT |
|
|
(6,332,236) |
73,480,636 |
|
|
|
|
|
|
| OTHER LOSS |
|
20 |
(1,649,503) |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(7,981,739) |
73,480,636 |
|
|
|
|
|
|
| FINANCIAL
CHARGES |
|
21 |
76,821,681 |
61,849,258 |
|
| WORKERS'
PARTICIPATION FUND |
|
-- |
581,569 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
76,821,681 |
62,430,827 |
|
|
------------------ |
------------------ |
|
| (LOSS)
/ PROFIT FOR THE YEAR |
|
(84,803,420) |
11,049,809 |
|
|
|
| UNAPPROPRIATED
PROFIT BROUGHT FORWARD |
3,249,042 |
9,199,233 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(81,554,378) |
20,249,042 |
|
|
| TRANSFER FROM REVENUE RESERVE |
|
-- |
10,000,000 |
|
|
|
|
------------------ |
------------------ |
|
| (LOSS)/PROFIT
AVAILABLE FOR APPROPRIATION |
(81,554,378) |
30,249,042 |
|
|
|
|
|
|
|
| APPROPRIATIONS |
|
| Bonus shares |
|
|
-- |
18,000,000 |
|
| Final
dividend Rs. Nil per share (2000: Rs. 0.50) |
|
-- |
9,000,000 |
|
|
|
------------------ |
------------------ |
|
|
|
-- |
27,000,000 |
|
|
| UNAPPROPRIATED
(LOSS)/PROFIT CARRIED |
|
| FORWARD |
|
(81,554,378) |
3,249,042 |
|
|
|
|
========== |
========== |
|
| Earning
per share |
|
|
(4.28) |
0.56 |
|
|
========== |
========== |
|
|
| The
annexed notes from 1 to 27 form an integral part of these accounts. |
|
|
|
JAHANGIR ELAHI |
|
TANVIR ELAHI |
|
|
Chief Executive |
|
Director |
|
|
|
| CASH
FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 2001 |
|
|
|
|
|
2001 |
2000 |
|
| CASH
FLOWS FROM OPERATING ACTIVITIES |
|
Rupees |
Rupees |
|
|
| (Loss)/Profit
for the year |
|
(84,803,420) |
11,049,809 |
|
| Add:
Adjustments to reconcile profit to net cash |
|
| provided
by operating activities |
|
| Depreciation |
|
|
67,534,339 |
71,425,221 |
|
| Loss/(Gain)
on sale of fixed assets |
|
1,649,503 |
-- |
|
|
|
------------------ |
------------------ |
|
|
|
69,183,842 |
71,425,221 |
|
| Cash
flows from operating activities before |
|
------------------ |
------------------ |
|
| working
capital changes |
|
(15,619,578) |
82,475,030 |
|
|
| (Increase)/decrease
in current assets |
|
|
|
| Stores
and spares |
|
|
(4,726,823) |
4,829,706 |
|
| Trade debts |
|
|
(81,237,144) |
22,871,632 |
|
| Advances,
prepayments and other receivables |
|
(30,592,847) |
(28,197,502) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(116,556,814) |
(496,164) |
|
| Increase/(decrease)
in current liabilities |
|
|
| Short
term bank borrowings |
|
1,065,928,351 |
31,932,691 |
|
| Creditors,
accrued and other liabilities |
|
8,021,752 |
8,249,678 |
|
|
|
------------------ |
------------------ |
|
|
|
|
|
114,614,587 |
40,182,369 |
|
|
|
|
|
------------------ |
------------------ |
|
| Net
cash used in operating activities |
|
(17,561,805) |
122,161,235 |
|
|
|
| CASH
FLOWS FROM INVESTING ACTIVITIES |
|
| Fixed
assets acquired |
