| Kohinoor Power Company Limited |
|
|
|
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|
| Annual
Report 2001 |
|
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| CONTENTS |
|
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| Company
information |
|
| Notice
of Annual General Meeting |
|
| Directors'
Report to the Shareholders |
|
| Auditors'
Report to the Members |
|
| Balance Sheet |
|
| Profit
and Loss Account |
|
| Cash
Flow Statement |
|
| Statement
of Changes in Equity |
|
| Notes
to the Accounts |
|
| Pattern
of Share Holding of Share |
|
|
|
| COMPANY
INFORMATION |
|
|
| BOARD
OF DIRECTORS |
|
| Mr.
M. Naseem Saigol |
Chairman/Chief' Executive |
|
| Mr.
M. Azam Saigol |
|
| Mr.
Shahid Sethi |
|
| Mr. Akbar Ali |
|
|
| Mr.
Muhammad Ilyas Bajwa |
|
| Mr.
Muhammad Asif Bajwa |
|
| Syed
Arshad A'la |
(ICP Nominee) |
|
|
| COMPANY
SECRETARY |
|
| Sheikh
Muhammad Shakeel, ACA |
|
|
| AUDITORS |
|
| M/s
Manzoor Hussain Mir & Co. |
|
| Chartered
Accountants |
|
|
| BANKERS |
|
| Askari
Commercial Bank Limited |
|
| Faysal
Bank Limited |
|
| Habib
Bank Limited |
|
| Muslim
Commercial Bank Limited |
|
| National
Bank of Pakistan |
|
| Union
Bank Limited |
|
|
| REGISTERED
OFFICE |
|
| 06-Egerton
Road, |
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| Lahore |
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| Tel:
6306131 (5 Lines) |
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| E-mail:
slgroup@brain.net.pk |
|
|
| WORKS |
|
| -Kohinoor
Nagar, Faisalabad |
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| -51-KM,
Multan Road, Bhai Pheru |
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| NOTICE
OF ANNUAL GENERAL MEETING |
|
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| Notice
is hereby given that the 10th Annual General Meeting of the Shareholders of
KOHINOOR POWER |
|
| COMPANY
LIMITED will be held on Monday, 31 December 2001 at 10:00 A.M. at 06-Egerton
Road, Lahore the |
|
| Registered
Office of the Company to transact the following Business:- |
|
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| 1.
To confirm the minutes of Extraordinary General Meeting held on 29 September
2001 |
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|
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| 2.
To receive and adopt the Annual Audited Accounts for the year ended 30 June
2001 |
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| along
with Director's and Auditors' Reports thereon. |
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|
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| 3.
To approve payment of Cash Dividend @ 5% (Re. 0.50 per share) as recommended
by the Board. |
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|
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| 4.
To appoint Auditors the hold 0fl`ice till the conclusion of the next Annual
General Meeting and to fix their |
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| remuneration. |
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|
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| 5.
Any other business with the permission of the Chair. |
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By Order of the Board |
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|
Sheikh Muhammad Shakeel |
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| Lahore:
December 08,2001 |
|
Company Secretary |
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| Notes: |
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| 1.
The Share Transfer Books of the Company will remain closed from 31 December
2001 to 07 January 2002 |
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| (both
days inclusive). Transfers Received in order at 06-Egerton Road, Lahore the
Registered Office of the |
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| Company
upto the close of Business on 30 December 2001 will be treated in time for
the payment of |
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| dividend
to the Transferees. |
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|
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| 2.
A member entitled to attend and vote at this meeting may appoint another
Member as proxy. Proxies in |
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| order
to be effective, must be received at 06- Egerton Road, Lahore, the Registered
Office of the |
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| Company
not later than forty - eight hors before the time for holding the meeting and
must be duly |
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| stamped,
signed and Witnessed. |
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|
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| 3.
Members whose shares are deposited with Central Depository System (CDS) are
requested to bring their |
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| original
National Identity Cards original Passports alongwith their Account Numbers in
CDS for |
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| attending
the meeting. |
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|
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| 4.
Members of all recognized Fiqahs may file with the company their declaration
(if any) for non-deduction |
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| of zakat. |
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|
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| 5.
Members are requested to notify the Company change in their addresses, if
any. |
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| DIRECTORS'
REPORT TO THE SHAREHOLDERS |
|
|
| The
Directors of your company are pleased to present their 10th annual report
together with the Company's |
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| audited
accounts for the year ended June 30, 2001. |
|
|
| POWER
GENERATION RESULTS |
|
| The
3rd generating set of 5.08 Megawatt became redundant in the last financial
year has again started |
|
| commercial
production from January 2001. As a result of becoming the 3rd engine
operational. capacity |
|
| utilization
of the plant registered an increase of 6% and generated 78,363 Megawatt hours
electrical power |
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| as
compared to 70,470 Megawatt hours during the previous year. In the next year,
the plant utilization will |
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| further
improve due to continuous production of power from the 3rd generating set. |
|
|
| FINANCIAL
RESULTS |
|
| During
the year under review, there was a decrease in profit after tax of 8.82%
which was mainly due the |
|
| increasing
trend in the furnace oil prices. The average per ton furnace oil price has
increased to Rs 10,252 |
|
| (net
of sales tax) in the year under review as against per ton price of Rs 6,889
in the last financial year. thus |
|
| showing
as increase of 49% in the furnace oil consumption. The Company could not
maintain its |
|
| profitability
at the level of last year as it does not have any control over the prices of
electrical power as well |
|
| as
the prices of furnace oil being used as raw material for generation of
electrical power. |
|
|
| The
summarized position of financial results is as under: |
|
|
|
|
2001 |
2000 |
|
|
|
(Rupees in
thousand) |
|
|
|
| Revenue
generated from sale of electrical power |
|
261,458 |
200,606 |
|
| Gross profit |
|
|
2,440 |
37,257 |
|
| Administrative
& General Expenses |
|
2,120 |
2,549 |
|
| Financial
charges |
|
31,611 |
39,835 |
|
| Other income |
|
|
44,009 |
44 |
|
| Unusual
& non recurring items |
|
-- |
35,936 |
|
| Workers'
profit participation fund |
|
636 |
1,542 |
|
| Taxation-prior
years relief |
|
1,233 |
-- |
|
| Profit
after taxation |
|
13,315 |
29,311 |
|
| Un-appropriated
profit brought forward |
|
917 |
1,606 |
|
| Profit
available for appropriation |
|
14,232 |
30,917 |
|
|
|
|
|
| Appropriations: |
|
| Proposed
cash dividend @ 5% (2000 @ 10%) |
|
6,000 |
12,000 |
|
| Transferred
to general reserves |
|
8,000 |
18,000 |
|
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|
------------------ |
------------------ |
|
|
|
14,000 |
30,000 |
|
|
|
------------------ |
------------------ |
|
| Un-appropriated
profit carried forward to Balance Sheet |
232 |
917 |
|
|
|
========== |
========== |
|
| Earning
per share |
|
1.110 |
2.443 |
|
|
|
| FUTURE
PROSPECTS |
|
| We
foresee that with the start up of production of 3rd generating set along with
reduction in the prices of |
|
| furnace
oil in the international as well as in the local markets and slight increase
in the WAPDA tariff will |
|
| improve
the profitability of your company in future. |
|
|
| DIVIDEND |
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| Your
directors are pleased to recommend a cash dividend @ 5% (Re. 0.5 per share)
out of the profits |
|
| earned
during the year. |
|
|
| AUDITORS
AND THEIR REPORT |
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| The
present auditors M/s. Manzoor Hussian Mir & Co., Chartered Accountants,
retire and being eligible, |
|
| offer
themselves for re-appointment. |
|
|
| The
Company has not made any advance to its associated company and thus has not
violated the |
|
| provisions
of section 208 of the Companies Ordinance, 1984. The advances at note #
16(ii) represent |
|
| charges
recoverable for delayed payments from Kohinoor Industries Limited (KIL)
against energy billing. |
|
| Trade
debts accumulated due to delayed payments of energy billing from KIL.
However, as per directive |
|
| of
Honorable Securities and Exchange Commission of Pakistan, the Company has
charged interest to KIL |
|
| against
outstanding balance of energy billing. |
|
|
| Provisions
for taxes amounting to Rs. 6.309 million have not made in these accounts due
to the reason that |
|
| company
has agitated the levies in the Appellate Tribunals. |
|
|
| PATTERN
OF SHARE HOLDING |
|
| A
statement showing pattern of share holding as on June 30, 2001 is annexed. |
|
|
| ACKNOWLEDGMENT |
|
| We
wish to thank to our banks and shareholders for their continued support and
confidence on the |
|
| Company.
We are pleased to record our appreciation of the services rendered by the
employees of the |
|
| Company
and hope that the same spirit of devotion will continue in future. |
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|
|
|
For and on behalf of the Board |
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|
|
|
|
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| Lahore |
|
|
|
|
| December
08,2001 |
|
CHIEF EXECUTIVE |
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of KOHINOOR POWER
COMPANY LIMITED as at |
|
| 30th
June, 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 |
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| 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 the 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, and subject to the observations expressed below
and extent to which the |
|
| notes
referred to may effect, 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 |
|
| 30th
June, 2001 and of the profit, its cash flows and changes in equity for the
year then ended; and |
|
|
| (i)
Amounts due from Kohinoor Industries Limited, an associated company
(excluding normal |
|
| trade
credit) are Rs. 241.878 Million to which when interest and charges for
delayed payments to |
|
| the
tune of Rs 60.494 Million are added, these aggregate to Rs. 302.372 Million,
These are in |
|
| excess
of 30% of share-holder's equity amounting to Rs. 392.232 Million which is
contrary to |
|
| provisions
of section 208 of the Companies Ordinance, 1984. Attention is also invited to |
|
| Note 15 & 16(ii). |
|
|
|
|
| (ii)
No provision is made for taxes amounting to Rs. 6.309 Million indicated at
Note 10. |
|
|
| (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 under section 7 of
that ordinance |
|
|
| Lahore |
|
|
(MANZOOR HUSSAIN MIR & CO.) |
|
| December
8. 2001 |
|
CHARTERED ACCOUNTANTS |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 2001 |
|
|
|
|
|
2001 |
2000 |
|
|
|
NOTE |
Rupees |
Rupees |
|
| SHARE
CAPITAL & RESERVES |
|
|
| SHARE
CAPITAL |
|
(3) |
120,000,000 |
120,000,000 |
|
|
|
|
|
|
| RESERVES |
|
(4) |
272,000,000 |
264,000,000 |
|
|
|
|
|
|
| UNAPPROPRIATED
PROFIT |
|
|
232,050 |
916,608 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
392,232,050 |
384,916,608 |
|
|
|
|
|
| LONG
TERM LOANS |
|
(5) |
187,189,039 |
204,618,969 |
|
|
|
|
|
|
| LIABILITIES
AGAINST ASSETS |
|
|
|
| SUBJECT
TO FINANCE LEASE |
|
(6) |
-- |
2,626,342 |
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
| SHORT
TERM LOANS |
|
(7) |
3,666,097 |
18,458,551 |
|
|
| CURRENT
PORTION OF LONG |
|
|
|
|
|
| TERM
LIABILITIES |
|
(8) |
91,877,476 |
113,525,093 |
|
|
| CREDITORS,
PROVISIONS & |
|
|
|
|
|
| ACCRUED
LIABILITIES |
|
(9) |
34,707,052 |
17,629,395 |
|
|
| UN-CLAIMED
DIVIDEND |
|
|
444,141 |
961,893 |
|
|
| PROPOSED
DIVIDEND |
|
|
6,000,000 |
12,000,000 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
136,694,766 |
162,574,932 |
|
|
| CONTINGENCIES
& COMMITMENTS |
(10) |
-- |
-- |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
716,115,855 |
754,736,851 |
|
|
|
|
|
========== |
========== |
|
|
|
| The
annexed notes (1) to (30) form an integral part of these financial
statements. |
|
|
|
(CHIEF EXECUTIVE) |
|
(DIRECTOR) |
|
|
| AUDITORS'
REPORT ANNEXED |
|
|
|
|
| TANGIBLE
FIXED ASSETS |
|
|
|
| OPERATING
ASSETS OWN |
|
(11) |
267,632,768 |
218,821,430 |
|
| CAPITAL
WORK IN PROGRESS |
|
(12) |
-- |
31,969,400 |
|
| ASSETS
SUBJECT TO FINANCE LEASE |
(13) |
41,010,503 |
43,168,950 |
|
|
|
|
|
|
| LONG
TERM DEPOSITS |
|
-- |
1,300,000 |
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| STORES
& SPARES |
|
(14) |
24,008,962 |
43,272,886 |
|
| TRADE DEBTS |
|
(15) |
301,927,565 |
377,275,853 |
|
|
|
|
|
|
| ADVANCES,
DEPOSITS & |
|
|
|
|
| PREPAYM
ENTS |
|
(16) |
81,038,088 |
38,234,537 |
|
|
|
|
|
|
| CASH
& BANK BALANCES |
|
(17) |
497,969 |
693,795 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
407,472,584 |
459,477,071 |
|
|
|
|
------------------ |
------------------ |
|
|
716,115,855 |
754,736,851 |
|
|
|
========== |
========== |
|
|
|
|
(MANZOOR HUSSAIN MIR & CO.) |
|
|
|
CHARTERED ACCOUNTANTS |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 2001 |
|
|
|
|
|
2001 |
2000 |
|
|
|
NOTE |
Rupees |
Rupees |
|
|
| SALES |
|
(18) |
261,457,725 |
210,606,419 |
|
| COST
OF SALES |
|
(19) |
259,018,129 |
173,349,577 |
|
|
|
|
------------------ |
------------------ |
|
| GROSS PROFIT |
|
|
2,439,596 |
37,256,842 |
|
|
|
|
|
| ADMINISTRATIVE
& GENERAL |
(20) |
2,119,584 |
2,549,471 |
|
|
|
|
------------------ |
------------------ |
|
| OPERATING
PROFIT |
|
|
320,012 |
34,707,371 |
|
|
| FINANCIAL
EXPENSES |
|
(21) |
31,610,802 |
39,834,607 |
|
|
|
|
| OTHER
INCOME |
|
(22) |
44,009,129 |
43,787 |
|
| UNUSUAL
& NON RECURRING ITEMS |
(23) |
-- |
35,936,304 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
44,009,129 |
35,980,091 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
12,718,339 |
30,852,855 |
|
| WORKERS'
PROFIT PARTICIPATION FUND |
|
635,917 |
1,542,643 |
|
|
|
|
------------------ |
------------------ |
|
| PROFIT
BEFORE TAXATION |
|
|
12,082,422 |
29,310,212 |
|
|
|
|
| TAXATION: |
|
|
(24) |
|
| Current Year |
|
|
|
(8,991) |
-- |
|
| Prior
Years Relief |
|
(24.1) |
1,242,011 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,233,020 |
-- |
|
|
|
|
------------------ |
------------------ |
|
| PROFIT
AFTER TAXATION |
|
|
13,315,442 |
29,310,212 |
|
|
| UNAPPROPRIATED
PROFIT BROUGHT FORWARD |
916,608 |
1,606,396 |
|
|
|
|
------------------ |
------------------ |
|
| PROFIT
AVAILABLE FOR APPROPRIATION |
|
14,232,050 |
30,916.61 |
|
|
|
|
|
|
|
| APPROPRIATIONS: |
|
| PROPOSED
DIVIDEND @ 5 % (2000 @ 10 %) |
|
| i.e.
Re. 0.50 per ordinary share of Rs. 10 |
|
6,000,000 |
12,000,000 |
|
| TRANSFERRED
TO GENERAL RESERVE |
|
8,000,000 |
18,000,000 |
|
|
------------------ |
------------------ |
|
|
14,000,000 |
30,000,000 |
|
| UNAPPROPRIATED
PROFIT CARRIED |
|
------------------ |
------------------ |
|
| FORWARD
TO BALANCE SHEET |
|
232,050 |
916,608 |
|
|
========== |
========== |
|
| EARNING
PER SHARE |
|
(25) |
1.11 |
2.44 |
|
|
========== |
========== |
|
|
| The
annexed notes (1) to (30) form an integral part of these financial
statements. |
|
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
|
|
|
(MANZOOR HUSSAIN MIR & CO.) |
|
|
|
|
CHARTERED ACCOUNTANTS |
|
|
|
| AUDITORS'
REPORT ANNEXED |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED JUNE 30, 2001 |
|
|
|
|
|
2001 |
2000 |
|
|
|
RUPEES |
RUPEES |
|
|
|
| CASH
FLOWS FROM OPERATING ACTIVITIES |
|
| Net
profit/(loss) before taxation |
|
12,082,422 |
29,310,212 |
|
| Adjustments
for: |
|
|
|
| Depreciation |
|
16,461,378 |
11,999,463 |
|
| Other income |
|
(44,009,129) |
(43,787) |
|
| W.P.P.F |
|
635,917 |
1,542,643 |
|
| Profit
on sale of shares |
|
-- |
(16,942,773) |
|
| Financial
charges |
|
31,610,802 |
39,834,607 |
|
|
|
------------------ |
------------------ |
|
| Operating
profit before working capital changes |
|
16,781,390 |
64,700,365 |
|
|
|
------------------ |
------------------ |
|
| (Increase)
/ decrease in stores and spares |
|
19,263,924 |
(17,125,524) |
|
| (Increase)
/ decrease in trade debts |
|
75,348,288 |
12,405,581 |
|
| (Increase)
/ decrease in advances prepayments and receivables |
1,817,632 |
(9,092,049) |
|
| Increase
/ (decrease) in creditors, accrued and other liabilities |
3,875,625 |
11,200,588 |
|
|
|
|
|
|
|
100,305,469 |
(26,11,404) |
|
|
|
|
------------------ |
------------------ |
|
| Cash
generated from operations |
|
117,086,859 |
63,088,961 |
|
| W.P.P.F Paid |
|
(1,860,675) |
(1,580,067) |
|
| Income tax paid |
|
(116,543) |
-- |
|
| Financial
charges paid |
|
(5,912,491) |
(91,884,380) |
|
|
|
------------------ |
------------------ |
|
| NET
CASH FROM OPERATING ACTIVITIES |
|
109,197,150 |
(30,375,486) |
|
|
|
|
| CASH
FLOWS FROM INVESTING ACTIVITIES |
|
| Fixed
capital expenditure |
|
(31,144,868) |
(74,013,629) |
|
| Investment |
|
|
-- |
63,742,773 |
|
| Margin released |
|
|
-- |
2,500,000 |
|
| Margin deposit |
|
|
-- |
(1,240,000) |
|
|
|
------------------ |
------------------ |
|
|
|
(31,144,868) |
(9,010,856) |
|
|
| CASH
FLOWS FROM FINANCING ACTIVITIES |
|
| Payment
of short term loans |
|
|
(14,792,454) |
(86,733,535) |
|
| Payment
of long term loans |
|
|
(32,703,559) |
148,309,531 |
|
| Dividend paid |
|
|
(12,000,000) |
(15,000,000) |
|
| Repayment
of lease finance |
|
|
(18,752,095) |
(7,136,233) |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash generated / (used) in financing activities |
|
(78,248,108) |
39,439,763 |
|
|
|
|
------------------ |
------------------ |
|
| Net
increase / (decrease) in cash |
|
|
(195,826) |
53,421 |
|
| Cash
and bank balances as at July l, 2000 |
|
693,795 |
640,374 |
|
|
|
|
------------------ |
------------------ |
|
| Cash
and bank balances as at June 30, 2001 |
|
497,969 |
693,795 |
|
|
========== |
========== |
|
|
|
| STATEMENT
OF CHANGES IN EQUITY |
|
|
| The
changes in equity is as follows: |
|
|
|
Share Capital |
Profit for the |
Reserves |
Total |
|
|
|
year and |
|
|
|
|
appropriations |
|
|
|
Rs. |
Rs. |
Rs. |
Rs. |
|
|
|
|
| Balance
as at July 1st 1999 |
120,000,000 |
1,606,396 |
246,000,000 |
367,606,396 |
|
| Net
profit for the year |
-- |
29,310,212 |
-- |
29,310,212 |
|
|
|
|
|
|
|
| Appropriations: |
|
| Proposed
Dividend |
-- |
(12,000,000) |
-- |
(12,000,000) |
|
