| Lawrencepur Woollen & Textile Mills
Limited |
|
|
|
|
|
|
| Annual
Report 2001 |
|
|
|
| CONTENTS |
|
|
| Company
Information |
|
| Financial
Highlights |
|
| Notice
of Annual General Meeting |
|
| Directors'
Report |
|
| 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 Shareholdings |
|
|
|
| COMPANY
INFORMATION |
|
|
|
| Board
of Directors |
Ahmed Dawood |
|
|
|
M. Hussain Dawood |
|
|
|
Shahzada Dawood (Chief
Executive) |
|
|
|
Khan Amir Abdullah Khan
Rokhri |
|
|
|
Taj Mohammad Khanzada |
|
|
|
D.S.O.M.C.
(Fakhar-e-Kashmir) |
|
|
|
Khawaja Amanullah |
|
|
|
A. Aziz Moon |
|
|
|
|
| Company
Secretary |
Aftab Ahmed Qaiser |
|
|
|
| Auditors |
|
M. Hussain Chaudhury
& Co. |
|
|
|
Chartered Accountants |
|
|
|
|
| Bankers |
|
Habib Bank Limited |
|
|
|
Bank A1-Habib Limited |
|
|
|
Askari Commercial Bank
Limited |
|
|
|
|
| Registered
Office |
35-A, Shahrah-e-Abdul
Hameed Bin Baadees |
|
|
|
(Empress Road), Lahore. |
|
|
|
Phones: (042) 6301601 -
07 |
|
|
| Mills |
|
Dawoodpur, |
|
|
|
|
District Attock. |
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|
|
|
Phones: (0597) 641074 -
76 |
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|
|
| FINANCIAL
HIGHLIGHTS |
|
| Five
Years at a Glance |
|
|
|
|
|
|
(All amounts in thousands) |
|
|
|
|
| Particulars |
|
2001 |
2000 |
1999 |
1998 |
1997 |
|
|
|
|
|
| Turnover |
|
298,730 |
245,452 |
259,032 |
250,741 |
257,511 |
|
| Profit
before taxation |
45,687 |
29,500 |
26,869 |
26,491 |
56,213 |
|
| Profit
after taxation |
29,837 |
21,000 |
16,869 |
16,991 |
43,213 |
|
| Paid up capital |
|
|
| - Ordinary |
|
50,222 |
50,222 |
50,222 |
50,222 |
50,222 |
|
| - Preference |
|
25,960 |
25,960 |
25,960 |
25,960 |
25,960 |
|
| Number
of shares (ordinary) |
5,022,217 |
5,022,217 |
5,022,217 |
5,022,217 |
5,022,217 |
|
| (numbers) |
|
|
| Owners' equity |
|
245,569 |
248,202 |
238,181 |
234,948 |
220,293 |
|
| Break
up value of shares of |
48.90 |
49.42 |
47.43 |
46.78 |
43.86 |
|
| Rs. 10 each |
|
|
| (rupees) |
|
|
| Earning
per share-basic |
5.48 |
3.72 |
2.89 |
2.92 |
8.14 |
|
| (rupees) |
|
|
| Dividend |
|
60% |
30% |
22.50% |
-- |
22.50% |
|
| (percentage) |
|
|
| Total assets |
|
347,579 |
358,479 |
349,585 |
341,592 |
355,590 |
|
|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
|
| Notice
is hereby given that the forty-first Annual General Meeting of the members of |
|
| Lawrencepur
Woollen & Textile Mills Limited will Insha Allah be held on December 06,
2001 at |
|
| 10:30
a.m. at the Registered Office of the Company at Lahore to transact the
following business after |
|
| recitation
from the Holy Quran: |
|
|
| 1.
To confirm the minutes of the fortieth Annual General Meeting held on
November 24, 2000; |
|
|
|
|
| 2.
To receive, consider and adopt the Audited Accounts of the Company for the
year ended |
|
| June
30, 2001 together with the Directors' and Auditors' Reports thereon; |
|
|
|
|
| 3.
To consider and approve payment of cash dividend as recommended by the
Directors; |
|
|
|
|
| 4.
To appoint Auditors and to fix their remuneration. The retiring Auditors M/s.
M. Hussain |
|
| Chaudhury
& Co., being eligible, offer themselves for re-appointment; |
|
|
| 5.
To elect seven Directors of the Company for a period of three years as fixed
by the Board under |
|
| section
178(1) of the Companies Ordinance 1984 in place of the following retiring
Directors: |
|
|
| 1.
Mr. Ahmed Dawood |
2. Mr. M. Hussain Dawood |
|
| 3.
Mr. Shahzada Dawood |
4. Khan Amir Abdullah
Khan Rokhri |
|
| 5.
Mr. Taj Mohammad Khanzada |
6. Khawaja Amanullah |
|
| 7.
Mr. A. Aziz Moon |
|
|
| 6.
To transact any other business with the permission of the Chairman. |
|
|
|
|
By Order of the Board |
|
|
|
|
|
|
| Lahore |
|
|
Aftab Ahmed Qaiser |
|
| November
08, 2001 |
|
(Company Secretary) |
|
|
| Notes: |
|
|
| 1.
The share transfer books of the Company will remain closed from November 29,
2001 to |
|
| December
06, 2001 (both days inclusive). |
|
|
|
|
|
|
| 2.
A member entitled to attend and vote at the Meeting may appoint another
member as his / her |
|
| proxy
to attend and vote. Votes may be given personally or by proxy or by an
attorney or in case |
|
| of
Corporation by a duly authorized representative. The instrument of proxy duly
executed |
|
| should
be lodged at the Registered Office of the Company not later than forty-eight
hours before |
|
| the Meeting. |
|
|
|
|
| 3.
The members are requested to notify the change in addresses, if any,
immediately. |
|
|
| 4.
Any person, who seeks to contest as Director of the Company, must file with
the Company at the |
|
| Registered
Office, a notice of his intention not later than fourteen days before the
Annual General |
|
| Meeting
in accordance with section 178(3) of the Companies Ordinance 1984. |
|
|
|
| DIRECTORS'
REPORT |
|
|
| The
Directors are pleased to present their Annual Report together with the
Audited Accounts for the |
|
| year
ended June 30,2001 before the forty-first Annual General Meeting of the
Company. |
|
|
| Financial
Results |
|
|
| The
gross profit has increased to Rs. 71,641,010 during the year under review, as compared to |
|
| Rs.
56,031,896 for the previous year. The gross profit percentage has increased
to 23.98% as |
|
| compared
to 22.83% for the previous year. Consequently the net profit before taxation
for the year is |
|
| Rs.
45,686,630 as compared to Rs. 29,499,783 for the previous
year, after providing for all the |
|
| operating,
administrative, selling, distribution, financial expenses and depreciation of |
|
| Rs.
40,515,430 for the year. The summary of the financial
results and appropriation of profits is being |
|
| furnished
hereunder. |
|
|
|
|
2001 |
2000 |
|
|
|
Rupees |
Rupees |
|
|
|
|
|
| Sales |
|
|
298,729,928 |
245,452,328 |
|
| Gross profit |
|
|
71,641,010 |
56,031.90 |
|
| Operating
profit |
|
|
44,170,629 |
29,874,472 |
|
| Other income |
|
|
5,701,480 |
5,551,364 |
|
|
|
|
========== |
========== |
|
| Profit
before taxation |
|
|
45,686,630 |
29,499,783 |
|
| Provision
for taxation |
|
|
|
|
| (net
off deferred tax credit) |
|
|
(15,850,000) |
(8,500,000) |
|
|
|
|
------------------ |
------------------ |
|
| Profit
after taxation |
|
|
29,836,630 |
20,999,783 |
|
| Un-appropriated
profit brought forward |
|
67,476,173 |
63,879,441 |
|
|
|
|
------------------ |
------------------ |
|
| Profit
available for appropriation |
|
|
97,312,803 |
84,879,224 |
|
|
|
========== |
========== |
|
|
| Dividend |
|
| The
Directors recommend a payment of cash dividend of 30% (Rs. 3.00 per share) on
the paid up |
|
| capital
of the Company. Accordingly the following appropriations have been made: |
|
|
| Profit
available for appropriation |
|
|
97,312,803 |
84,879,224 |
|
|
|
| Appropriations: |
|
|
|
|
| Interim
dividend @ 30% already paid (2000: nil) |
|
15,066,651 |
-- |
|
| Final
dividend on ordinary shares @ 30% (2000: 30%) |
15,066,651 |
15,066,651 |
|
| Dividend
on cumulative redeemable preference |
|
|
|
| shares
@ 9% (2000: 9%) |
|
|
2,336,400 |
2,336,400 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
32,469,702 |
17,403,051 |
|
|
|
|
------------------ |
------------------ |
|
| Un-appropriated
profit carried forward |
|
64,843,101 |
67,476,173 |
|
|
|
|
========== |
========== |
|
| Earning
Per Share - Basic |
|
|
5.48 |
3.72 |
|
|
| Future
Prospects |
|
| The
sales during the current year indicate that the year 2001-02 will not be
favourably comparable to |
|
| the
profits of the year under review. The continued and acute recession in the
country coupled with |
|
| the
present Afghanistan situation further worsens the prospects at present for
the remaining financial |
|
| year.
Nevertheless, if the sales during the coming winter show improvement, the
prospects of |
|
| earnings
may equal the earnings of the year under review. |
|
|
| Pattern
of Shareholdings |
|
| A
statement reflecting the pattern of shareholdings is attached to the Annual
Report. |
|
|
| Auditors |
|
| The
Auditors Messrs M. Hussain Chaudhury & Co., Chartered Accountants retire
at the conclusion |
|
| of
the Annual General Meeting. Being eligible, offer themselves for
re-appointment. |
|
|
| Staff Relations |
|
| The
Company continues to benefit from the efforts and dedication of all its
employees. The Directors |
|
| are
pleased to record their appreciation for the hard work and devotion to duty
by all cadres of |
|
| employees. |
|
|
| Miscellaneous |
|
| The
Board would like to place on record with profound sorrow the passing away of
one of the |
|
| pioneering
members of the Group Seth Suleman Dawood, whose contribution to not only the
Group |
|
| but
country's corporate environment cannot be understated. |
|
|
| The
Board would like to express its grief for the demise of Mr. Sardar Ali Khan
who had a long |
|
| association
with the Company as one of its Directors. |
|
|
| The
Board offered Fateha for the departed souls and prayed to Allah to grant them
peace. |
|
|
|
|
On Behalf of the Board |
|
|
|
|
|
|
| Lahore |
|
|
Taj Mohammad Khanzada |
|
| October
18, 2001 |
|
(Chairman of the Meeting) |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed Balance Sheet of LAWRENCEPUR
WOOLLEN & TEXTILE |
|
| MILLS
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 accounts 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, 2001 and of the profit, 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 deposited in the Central Zakat Fund
established |
|
| under
Section 7 of that Ordinance. |
|
|
|
| Lahore |
|
|
(M. HUSSAIN CHAUDHURY & CO.) |
|
| Dated:
18 October, 2001 |
|
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 2001 |
|
|
|
|
Note |
2001 |
2000 |
|
|
|
|
Rupees |
Rupees |
|
| CAPITAL
AND LIABILITIES |
|
| Share
Capital and Reserves |
|
|
|
| Share Capital: |
|
| Authorized |
|
3 |
100,000,000 |
100,000,000 |
|
|
|
|
========== |
========== |
|
| Issued,
subscribed and fully paid up |
4 |
76,182,170 |
76,182,170 |
|
| Reserves |
|
5 |
104,543,613 |
104,543,613 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
180,725,783 |
180,725,783 |
|
| Un-appropriated
Profit |
|
|
64,843,101 |
67,476,173 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
245,568,884 |
248,201,956 |
|
| Obligations
Under Finance Lease |
6 |
846,847 |
792,344 |
|
|
|
|
|
| Deferred
Liabilities |
|
|
|
| Deferred
taxation |
|
7 |
3,600,000 |
5,000,000 |
|
| Provision
for gratuity |
|
8 |
41,393,914 |
40,696,103 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
44,993,914 |
45,696,103 |
|
| Current
Liabilities: |
|
|
|
| Current
portion of obligations under finance lease |
6 |
615,095 |
407,127 |
|
| Creditors,
accrued charges and other liabilities |
9 |
33,438,423 |
44,527,406 |
|
| Provision
for taxation |
|
10 |
4,713,230 |
1,450,655 |
|
| Proposed
dividend on ordinary shares |
|
15,066,651 |
15,066,651 |
|
| Proposed
dividend on preference shares |
|
2,336,400 |
2,336,400 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
56,169,799 |
63,788,239 |
|
| Contingencies
and Commitments |
11 |
------------------ |
------------------ |
|
|
|
|
347,579,444 |
358,478,642 |
|
|
|
|
========== |
========== |
|
|
| Notes: - The annexed notes (1 - 33) form an integral part to these
accounts. |
|
| - Auditors' report annexed. |
|
|
| PROPERTY
AND ASSETS |
|
| Operating
Fixed Assets |
|
12 |
45,436,192 |
65,432,834 |
|
| Long
Term Investments |
|
13 |
6,000 |
6,000 |
|
| Deferred Cost |
|
14 |
2,141,431 |
4,282,862 |
|
|
|
|
|
|
| Current
Assets: |
|
|
|
| Stores
and spare parts |
|
15 |
44,563,539 |
50,209,424 |
|
| Stock in trade |
|
16 |
151,200,655 |
175,352,228 |
|
| Goods in transit |
|
|
2,872,459 |
6,339,764 |
|
| Book debts |
|
17 |
50,747,852 |
30,567,627 |
|
| Advances,
deposits, prepayments and |
|
|
| other
receivables |
|
18 |
8,959,107 |
10,741,454 |
|
| Cash
and bank balances |
|
19 |
41,652,209 |
15,546,449 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
299,995,821 |
288,756,946 |
|
|
------------------ |
------------------ |
|
|
|
347,579,444 |
358,478,642 |
|
|
========== |
========== |
|
|
|
Shahzada Dawood |
|
|
Khawaja Amanullah |
|
|
Chief Executive |
|
|
Director |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 2001 |
|
|
|
Note |
2001 |
2000 |
|
|
|
Rupees |
Rupees |
|
|
|
|
|
| Sales |
|
20 |
298,729,928 |
245,452,328 |
|
| Cost
of Goods Sold |
|
21 |
227,088,918 |
189,420,432 |
|
|
|
|
------------------ |
------------------ |
|
| Gross Profit |
|
|
71,641,010 |
56,031,896 |
|
|
|
|
|
| Operating
Expenses |
|
|
|
| Administrative
and general |
|
22 |
13,119,511 |
13,262,662 |
|
| Selling
and distribution |
|
23 |
14,350,870 |
12,894,762 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
27,470,381 |
26,157,424 |
|
|
|
|
------------------ |
------------------ |
|
| Operating
Profit |
|
|
44,170,629 |
29,874,472 |
|
| Other income |
|
24 |
5,701,480 |
5,551,364 |
|
|
|
|
|
| Financial
and other charges |
|
25 |
4,185,479 |
5,926,053 |
|
|
|
|
------------------ |
------------------ |
|
| Profit
Before Taxation |
|
|
45,686,630 |
29,499,783 |
|
|
| Provision
for taxation: |
|
| - Current |
|
17,250,000 |
10,000,000 |
|
| - Deferred |
|
(1,400,000) |
(1,500,000) |
|
|
|
------------------ |
------------------ |
|
| Profit
After Taxation |
|
29,836,630 |
20,999,783 |
|
|
| Un-appropriated
Profit Brought Forward |
|
67,476,173 |
63,879,441 |
|
|
|
|
------------------ |
------------------ |
|
| Profit
available for appropriation |
|
|
97,312,803 |
84,879,224 |
|
|
|
|
| Appropriations: |
|
| Interim-dividend |
|
|
15,066,651 |
-- |
|
| Proposed
dividend on ordinary shares |
|
15,066,651 |
15,066,651 |
|
| Proposed
dividend on preference shares |
|
2,336,400 |
2,336,400 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
32,469,702 |
17,403,051 |
|
|
|
|
------------------ |
------------------ |
|
| Un-appropriated
Profit Carried Forward |
|
64,843,101 |
67,476,173 |
|
|
|
|
========== |
========== |
|
| Earning
Per Share - Basic |
|
26 |
5.48 |
3.72 |
|
|
|
|
| Notes: The annexed notes (1 - 33) form an integral part to these
accounts. |
|
| Auditors'
report annexed. |
|
|
|
Shahzada Dawood |
|
|
Khawaja Amanullah |
|
|
Chief Executive |
|
|
Director |
|
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED JUNE 30, 2001 |
|
|
|
Note |
2001 |
2000 |
|
|
|
Rupees |
Rupees |
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| Cash
generated from operations |
|
27 |
64,877,545 |
51,817,693 |
|
| Less: Payments |
|
| -
Financial charges |
|
(833,801) |
(1,121,650) |
|
| - Income tax |
|
(13,908,669) |
(10,172,614) |
|
| - Staff gratuity |
|
(6,348,275) |
(3,587,011) |
|
|
|
------------------ |
------------------ |
|
|
|
(21,090,745) |
(14,881,275) |
|
|
|
------------------ |
------------------ |
|
| Net
cash inflow from operating activities |
|
43,786,800 |
36,936,418 |
|
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
| Fixed
capital expenditure |
|
(4,861,586) |
(2,816,043) |
|
| Sale
proceeds of fixed assets |
|
19,077,263 |
4,436,441 |
|
|
|
------------------ |
------------------ |
|
| Net
cash inflow from investing activities |
|
14,215,677 |
1,620,398 |
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
| Obligations
under finance lease (net) |
|
(565,720) |
(329,677) |
|
| Dividend paid |
|
(31,330,997) |
(13,199,397) |
|
|
|
------------------ |
------------------ |
|
| Net
cash (outflow) from financing activities |
|
(31,896,717) |
(13,529,074) |
|
|
|
------------------ |
------------------ |
|
| Net
increase in cash and cash equivalents |
|
26,105,760 |
25,027,742 |
|
| Cash
and cash equivalents at the beginning of the year |
15,546,449 |
(9,481,293) |
|
|
|
------------------ |
------------------ |
|
| Cash
and cash equivalents at the end of the year |
|
41,652,209 |
15,546,449 |
|
|
========== |
========== |
|
|
|
|
|
Shahzada Dawood |
|
Khawaja Amanullah |
|
|
Chief Executive |
|
Director |
|
|
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| FOR
THE YEAR ENDED JUNE 30, 2001 |
|
|
|
|
|
2001 |
2000 |
|
|
|
|
Rupees |
Rupees |
|
| ISSUED,
SUBSCRIBED AND FULLY |
|
| PAID
UP SHARE CAPITAL |
|
|
| 5,022,217
ordinary shares of Rs. 10 each |
|
50,222,170 |
50,222,170 |
|
|
|
|
|
| 25,960
9% cumulative redeemable |
|
| preference
shares of Rs. 1,000 each |
|
25,960,000 |
25,960,000 |
|
|
------------------ |
------------------ |
|
|
|
76,182,170 |
76,182,170 |
|
|
|
------------------ |
