| Lucky Cement Limited |
|
|
|
|
|
|
|
| Annual
Report 2001 |
|
|
|
| CONTENTS |
|
|
| Company
Information |
|
|
| Notice
of Meeting |
|
|
| Directors'
Report |
|
|
| Graphs,
Yearwise Statistical Summary and Ratio Analysis |
|
| Auditors' Report |
|
|
|
| Balance Sheet |
|
| Profit
& Loss Account |
|
| Cash
Flow Statement |
|
|
| Statement
of Changes in Equity |
|
|
| Notes
to the Accounts |
|
|
| Statement
and Report under Section 237 of the Companies Ordinance, 1984 |
|
| Lucky
Powertech Limited |
|
|
| Consolidated
Accounts |
|
|
| Pattern
of Shareholding |
|
|
|
|
| COMPANY
INFORMATION |
|
|
| BOARD
OF DIRECTORS |
|
Abdul Razzak Tabba
(Chairman/Chief Executive) |
|
|
|
Muhammad Yunus Tabba |
|
|
|
Muhammad Sohail Tabba |
|
|
|
Muhammad Ali Tabba |
|
|
|
Imran Yunus Tabba |
|
|
|
Muhammad Javed Tabba |
|
|
|
Anis Wahab Zuberi |
|
|
|
M Aliuddin Ansari |
|
|
|
|
| EXECUTIVE
DIRECTOR |
|
Abdur Razzaq Thaplawala |
|
|
|
|
| COMPANY
SECRETARY & |
|
Muhammad Abid Ganatra |
|
| GENERAL
MANAGER FINANCE |
|
ACA, ACMA, ACIS |
|
|
|
|
| STATUTORY
AUDITORS |
|
M. Yousuf Adil Saleem
& Co., |
|
|
|
|
Chartered Accountants |
|
|
|
|
|
| COST
AUDITORS |
|
Munaf Yousuf & Co., |
|
|
|
|
Chartered Accountants |
|
|
|
|
|
| BANKERS |
|
|
Metropolitan Bank Limited |
|
|
|
Muslim Commercial Bank
Limited |
|
|
|
Soneri Bank Limited |
|
|
|
|
| REGISTERED
OFFICE / FACTORY |
Pezu, District Lakki
Marwat |
|
|
|
N.W.F.P. |
|
|
|
|
| HEAD OFFICE |
|
6-A, Muhammad Ali Housing
Society, |
|
|
|
A. Aziz Hashim Tabba
Street, |
|
|
|
Karachi-75350. |
|
|
|
UAN # (021) 111-786-555 |
|
|
|
|
| SALES
OFFICES |
|
|
|
|
|
| 2nd
Floor, A1-Hassan Plaza, |
|
Aptma House, Jamrud Road, |
|
| Jamia
Ashrafia, Main Ferozpur Road, |
Peshawar. |
|
| Lahore. |
|
UAN # (091) 111-786-555 |
|
| UAN
# (042) 111-786-555 |
|
|
|
|
|
| Gold
Crest Plaza, 20 Azmat |
|
Saddar Bazar, Bannu Road, |
|
| Wasti
Road, Near Chowk Dera Adda, |
Near Main Flying Coach
Adda, |
|
| Multan. |
|
D.I. Khan. |
|
| Tel
# (061) 540021 - 510021 |
|
UAN # (0961) 111-786-555 |
|
| 167-A,
Adamjee Road, |
|
6-A, Muhammad Ali Housing
Society, |
|
| Rawalpindi
Cantt, Rawalpindi. |
|
A. Aziz Hashim Tabba
Street, Karachi. |
|
| UAN
#(051) 111-786-555 |
|
UAN #(021) 111-786-555 |
|
|
| SHARES
DEPARTMENT |
|
404, 4thFloor, Trade
Tower, Abdullah Haroon Road, |
|
|
|
|
Karachi. Tel # 5685930 -
5687839 |
|
|
| Note:
W.e.f. 1st Jan. 2002 the shares department will be shifted at 6-A, Muhammad
Ali Housing Society, Karachi-75350 |
|
|
|
| NOTICE
OF 8TH ANNUAL GENERAL MEETING |
|
|
|
| Notice
is hereby given that the 8th Annual General Meeting of the members of Lucky Cement |
|
| Limited will be held on Friday, the 28th December, 2001 at 11:00 a.m.,
at the Registered Office |
|
| of
the Company situated at factory premises Pezu, District Lakki Marwat,
N.W.F.P. to transact |
|
| tire
following business: |
|
|
| 1.
To confirm the minutes of 7th Annual General Meeting held on 14th December,
2000. |
|
|
|
|
| 2.
To receive, consider and adopt the audited accounts of the Company for the
year ended |
|
| on
June 30, 2001, together with the Directors' and the Auditors' Reports
thereon. |
|
|
|
|
| 3.
To declare cash dividend of Re. 0.75 per share (@7.5%) for the year ended
June 30, |
|
| 2001
as recommended by the Directors. |
|
|
|
|
|
| 4.
To appoint Auditors and fix their remuneration for the year 2001-2002. The
present |
|
| Auditors,
Messrs M. Yousuf Adil Saleem & Co., Chartered Accountants, retire and be- |
|
| ing
eligible, offer themselves for reappointment. |
|
|
|
|
|
| 5.
To transact any other business with the permission of the Chairman. |
|
|
|
|
|
|
|
By Order of the Board |
|
|
|
|
|
|
|
|
|
Muhammad Abid Ganatra |
|
| Karachi,
29th November, 2001. |
|
Company Secretary |
|
|
| NOTES: |
|
|
| 1.
The shares transfer books of the Company will be closed from Friday 21st
December, |
|
| 2001
to 28th December, 2001 (both days inclusive). Transfer received in order at
the |
|
| shares
department at 404, 4th Floor, Trade Tower, Abdullah Haroon Road, Karachi upto
the |
|
| close
of business on Thursday December 20, 2001, will be considered in time to be |
|
| eligible
for payment of Dividend to the transferees. |
|
|
|
|
|
| 2.
A member entitled to attend and vote may appoint another member as his/her
proxy to |
|
| attend
and vote instead of him/her. |
|
|
|
|
|
| 3.
An individual beneficial owner of shares from CDC must bring his/her original
NIC or |
|
| Passport,
Account and Participant's I.D. numbers to prove his/her identity. A
representa- |
|
| tive
of corporate members from CDC must bring the Board of Directors' Resolution
and/ |
|
| or
Power of Attorney and the specimen signature of the nominee. |
|
|
| 4.
The members are requested to notify change in their address, if any, to the
Company's |
|
| shares
department at 404, 4th Floor, Trade Tower, Abdullah Haroon Road, Karachi. |
|
|
| Note:
W.e.f. 1st Jan. 2002 the shares department will be shifted at 6-A, Muhammad
Ali Housing Society, Karachi-75350 |
|
|
|
| DIRECTORS'
REPORT |
|
|
| We
have pleasure to present a review of the company's performance during the
year |
|
| 2000-2001
together with income statement for the year ended on 30th June, 2001 and |
|
| balance
sheet of the company as on that date. |
|
|
| Overview |
|
| As
you will see from the annexed financial statement there was an overall
improvement |
|
| in
company's performance during the year. The earning per share improved from
Re. |
|
| 0.92
in the preceding year to Rs. 1.05 during the year under report. The profit
before tax |
|
| increased
from Rs. 244.031 million in 1999-2000 to Rs. 267.187 million in the year un- |
|
| der
report. This was possible mainly because of substantial reduction in
financial charges |
|
| of
the company. Your company was not only able to meet all its repayment
obligations in |
|
| time
but was also able to repay some of the borrowings in advance. This enabled
the |
|
| company
to reduce its long term obligations from Rs. 291 million on 30-06-2000 to Rs. |
|
| 184
million on 30-06-2001. The outstanding liabilities against financial lease
were paid |
|
| off
in full during the current year and there was no outstanding balance as on
30-06-2001 |
|
| on
this account. The debt equity ratio of the company stood at 0.08:1 at the end
of the |
|
| year.
Your company, thus, has a robust balance sheet. |
|
|
| Production |
|
| For
last two years, the company was constantly working on the upgrading and
moderniz- |
|
| ing
its equipments. By the grace of Allah, the Almighty, these efforts have been
success- |
|
| ful
and we were able to increase our production capability to almost 2,400 tons
of clinker |
|
| per
day as against the original minimum design capacity of 2000 tons per day.
Simultane- |
|
| ous
improvement in the production capability of raw mill and cement mill was also
made |
|
| to
feed and to grind the increased clinker production capability. However,
inspite of in- |
|
| creased
production capability, the total production of the year could not be
increased |
|
| because
the operation of the plant had to conform to the market demand of cement
which |
|
| continued
to remain stagnant. During the year the clinker production was slightly
better |
|
| than
the preceding year but the cement production and sales on the other hand was
slightly |
|
| less
than the previous year as can be seen from the following figures: |
|
|
|
|
1999-2000 |
2000-2001 |
|
|
|
|
(Tons) |
(Tons) |
|
|
|
| Clinker
Produced |
|
819,180 |
824,190 |
|
| Cement
Produced |
|
856,928 |
825,830 |
|
| Cement Sold |
|
837,184 |
821,476 |
|
|
| With
the increase in the production capability, the company was able to achieve
substan- |
|
| tial
economy in its fuel consumption which came down from about 92 Kg in the year |
|
| ended
on 30-06-2000 per ton of clinker to about 84 Kg in the year under report. The |
|
| company's
management is actively working on further improvement and hope to achieve |
|
| better
heat consumption in future. |
|
|
| Sales |
|
| The
company sold 821,476 tons of cement during the year' under report as against
837,184 |
|
| tons
in the preceding year. The average ex-factory selling price also carne down
from Rs. |
|
| 3,855
per ton to Rs. 3,752 per ton. The company's net retention however increased
by |
|
| about
9% during the year because of reduction of excise duty from Rs. 1,400 per ton
to |
|
| Rs.
1,000 per' ton with effect from 5th September, 2000. The average retention
would |
|
| have
been better but for an unhealthy competition which was initiated by some
cement |
|
| producers
in the cement market immediately after the revival of sales tax exemption to |
|
| your
company in September 2000 with a motive to deprive your company of the
benefits |
|
| of
a truncated exemption (for less than 10 months) against five year's exemption
prom- |
|
| ised
at the time of initiation of the project. The competition was so fierce that
at a certain |
|
| time
retail prices of cement came down from an average of about Rs. 4,000 to Rs.
2,800 |
|
| per
ton. This un-healthy and motivated competition continued from September 2000
to |
|
| March
2001 when prices started stabilizing. As already reported in the last year's
report, |
|
| your
company also have an almost permanent dis-advantage of Rs. 150 to Rs. 200 per |
|
| ton
in freight charges on cement as compared to most of the other companies
because of |
|
| distance
between location of its plant from main market. This will always have a
negative |
|
| impact
on company's net retention per ton as compared to other companies. |
|
|
| Production
Costs |
|
| The
furnace oil is the main element of cost in cement production. Its prices were
substan- |
|
| tially
higher during the year under report as compared to preceding year. The
average |
|
| cost
of furnace oil per ton during the year 1999-2000 was Rs. 8,194 per ton. The
average |
|
| increased
to Rs. 12,569 per ton during the year ended on 30-06-2001. This works out to |
|
| an
increase of more than 53%. As a consequence of increase in cost of furnace
oil, the |
|
| cost
of electricity generated by Lucky Powertech Ltd a wholly owned subsidiary of
your |
|
| company
also increased substantially. |
|
|
| Until
30th June, 2000, the Government was operating a freight equalization pool
which |
|
| equalized
the freight payable on furnace oil by all buyers irrespective of their
locations. |
|
| Thus
the price of furnace oil was uniform for all the consumers in Pakistan. The
freight |
|
| equalization
pool was discontinued from 01-07-2000 and as a result, the buyers located |
|
| in
the North are being made to pay higher freight on furnace oil according to
the distance |
|
| of
their respective plants from Karachi as compared to their counterparts in
south. The |
|
| increase
in cost of furnace oil and other inputs due to normal inflationary condition
in the |
|
| country
partly offset by improved retention per ton, reduced our gross profit rate
and |
|
| operating
profit rate to 18.85% and 15.70% respectively during the year under review as |
|
| compared
to 21.38% and 18.56% respectively in the year ended on 30-06-2000. |
|
|
| Coal
as substitute to Furnace Oil |
|
| Pakistan's
Coal reserves are estimated at 184,658 million tons but out of these
estimated |
|
| reserves
only 4,006 million tons or 2.17% are classified as measured reserves. Most of |
|
| the
estimated reserves (97%) are in Lakhra and That fields of Sindh and entire
coal from |
|
| these
fields is generally of lignite type which has high moisture, high sulphur and
low |
|
| heating
value. It is therefore not a useful fuel for efficient operation of a cement
plant. |
|
| There
are small reserves (0.37% of country's total estimated reserves) in Sot Range
Quetta |
|
| which
can be described as bituminous coal. It has reasonably good moisture and
better |
|
| heating
value and sulphur content of around 4%. The coal from this source and some |
|
| other
sources in Punjab and NWFP can be used in cement industry if blended with im- |
|
| ported
coal. The sulphur contents in the imported coal is less than 1%. If it is
blended |
|
| with
indigenous coal of about 4% sulphur in proper ratio, the cement plant can
save itself |
|
| from
the problems associated with high sulphur. It is estimated that if 60%
imported coal |
|
| is
used with 40% indigenous coal and the entire cement industry in the country
switches |
|
| over
to the coal, the country can save US$ 113 million per annum out of the amount |
|
| presently
being spent on the import of furnace oil. |
|
|
| For
switching over to the coal, cement plants with a capacity about 2000 to 3000
tons a |
|
| day,
shall have to make a capital investment of atleast Rs. 300 millions. The
cement in- |
|
| dustry
in Pakistan has taken up this challenge and has started making this
investment. It is |
|
| however,
necessary that the Government persuades the coal mining industry to also mod- |
|
| ernize
its mining methods and set up coal washeries and beneficiation plants to
supply |
|
| coal
of improved quality. |
|
|
| Your
company started experimentation with substitution of furnace oil by coal in
last |
|
| quarter
of the year under report by using good quality indigenous coal in
pre-calciner |
|
| with
the help of indigenous crushing equipments. Inspite of problems created by
high |
|
| sulphur
content of the local coal, your company is now getting its 30% to 40% energy |
|
| from
coal. Although the operations are not as smooth and efficient as it could be
with |
|
| better
quality of coal and proper storage, pulverizing and feeding system. Your
company |
|
| is
now in process of importing equipments for a complete coal firing system and
hope to |
|
| switch
over to 100% coal in the beginning of next financial year. |
|
|
| Appropriation
of Profit |
|
| According
to the annexed profit & loss account, the company earned a net profit
before |
|
| tax
of Rs. 267.187 millions during the year under report. After accounting for
provision |
|
| for
taxation the net profit after tax comes to Rs. 256.169 million. There is an
accumulated |
|
| profit
brought forward from previous year amounting to Rs. 136.020 million. This,
to- |
|
| gether
with year's net profit after tax, makes available a total sum of Rs. 392.189
million |
|
| for
appropriation. Your Directors propose to appropriate the amount as follows: |
|
|
|
|
(Rupees in '000') |
|
|
| Profit
before taxation for the year 2000-2001 |
|
267,187 |
|
| Provision
for Taxation |
|
11,018 |
|
|
|
|
------------------ |
|
| Net
Profit after Taxation |
|
256,169 |
|
| Accumulated
Profit brought forward |
|
136,020 |
|
|
|
|
------------------ |
|
| Total
profit available for appropriation |
|
392,189 |
|
|
|
|
========== |
|
| Appropriation |
|
|
| - Dividend @ Re.
0.75 per share of Rs. 10/= each |
|
183,750 |
|
| -
Unappropriated profit carried forward |
|
208,439 |
|
|
|
|
------------------ |
|
| Total |
|
|
392,189 |
|
|
========== |
|
|
| Future
Prospects |
|
| Due
to various economic reasons, the demand for cement continues to be stagnant.
The |
|
| industry
in general, is utilizing about 60% of its production capacity. With the
recent |
|
| developments
in Afghanistan and implementation of some development projects, there is |
|
| a
possibility of increase in demand during the second half of the country. If
these hopes |
|
| materialize,
we can look forward to better prospects for cement industry in the coming |
|
| years. |
|
|
| Auditors |
|
| The
auditors, M. Yousuf Adil Saleem & Co, Chartered Accountants, retire and
being eligi- |
|
| ble
offer themselves for reappointment. |
|
|
| Pattern
of Shareholding |
|
| The
pattern of shareholding as on 30th June, 2001 is annexed to this report. |
|
|
| Subsidiary |
|
| The
audited accounts of the Lucky Powertech Limited, the company's wholly owned
sub- |
|
| sidiary,
for the year ended 30th June, 2001 are annexed to this report. |
|
|
| Acknowledgement |
|
| Your
directors acknowledge with appreciation, the efforts of company's managers,
tech- |
|
| nicians
and workers and the support extended by the company's bankers, dealers and |
|
| stockists
during the year. |
|
|
|
|
For and on behalf of the Board |
|
|
|
|
|
|
|
|
|
ABDUL RAZZAK TABBA |
|
| Karachi:
29th November, 2001 |
|
Chairman & Chief Executive |
|
|
|
|
| YEARWISE
STATISTICAL SUMMARY |
|
|
|
|
Rupees in '000' |
|
|
|
|
|
|
1997 |
1998 |
1999 |
2000 |
2001 |
|
|
|
|
|
| ASSETS
EMPLOYED |
|
|
|
| Fixed assets |
|
3,992 |
3,904 |
3,785 |
3,729 |
3,585 |
|
|
| Long
term investments |
200 |
200 |
200 |
200 |
200 |
|
|
| Long
term deposit and |
|
|
|
|
| deferred cost |
|
64 |
54 |
43 |
18 |
6 |
|
|
| Current assets |
|
366 |
426 |
498 |
620 |
784 |
|
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
| Total
assets employed |
4,622 |
4,584 |
4,526 |
4,567 |
4,575 |
|
|
|
|
========== |
========== |
========== |
========== |
========== |
|
|
|
|
| FINANCED BY |
|
|
|
|
| Shareholders'
equity |
3,413 |
3,294 |
3,350 |
3,576 |
3,648 |
|
|
| Long
term liabilities |
|
|
|
| Loans |
|
603 |
518 |
409 |
291 |
184 |
|
| Leasing |
|
101 |
107 |
76 |
-- |
-- |
|
| Current
portion of loans |
|
|
|
| and lease |
|
13 |
115 |
134 |
195 |
120 |
|
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
|
717 |
740 |
619 |
486 |
304 |
|
|
| Long
term deposits and |
|
|
|
|
|
| deferred
liabilities |
94 |
144 |
92 |
102 |
106 |
|
|
|
|
|
|
|
| Current
liabilities |
411 |
521 |
599 |
598 |
637 |
|
|
| Current
portion of loans |
|
|
|
|
| and lease |
|
(13) |
(115) |
(134) |
(195) |
(120) |
|
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
|
398 |
406 |
465 |
403 |
517 |
|
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
| Total
funds invested |
4,622 |
4,584 |
4,526 |
4,567 |
4,575 |
|
|
|
|
========== |
========== |
========== |
========== |
========== |
|
|
|
| TURNOVER
AND PROFIT |
|
| Turnover |
|
393 |
1,010 |
1,475 |
2,050 |
2,203 |
|
| Gross
profit |
|
82 |
66 |
263 |
438 |
415 |
|
| Operating profit |
|
46 |
9 |
211 |
380 |
346 |
|
| Profit/(1oss)
before taxation |
(25) |
(114) |
55 |
244 |
267 |
|
| Profit/(1oss)
after taxation |
(27) |
(119) |
55 |
226 |
256 |
|
| Proposed
cash dividend |
-- |
-- |
-- |
-- |
184 |
|
| Profit/(1oss)
carried forward |
(26) |
(146) |
(90) |
136 |
208 |
|
| Earnings
per share (Rupees) |
(0.110) |
(0.486) |
0.22 |
0.92 |
1.05 |
|
| Break
up value per share (Rupees) |
13.39 |
13.45 |
13.67 |
14.60 |
14.89 |
|
|
|
| RATIO
ANALYSIS |
|
| FOR
THE YEAR ENDED 30 JUNE 2001 |
|
|
|
|
|
|
2001 |
2000 |
|
| PROFITABILITY |
|
|
|
| Gross
profit to sales |
|
18.85% |
21.38% |
|
| Operating
profit to sales |
|
15.71% |
18.56% |
|
| Profit
before tax to sales |
|
12.13% |
1l.91% |
|
| Net
profit after tax to sales |
|
11.63% |
11.04% |
|
| Net
profit to total assets |
|
5.60% |
4.96% |
|
| increase
in sales over last year |
|
7.50% |
38.95% |
|
| Raw
and packing material to sales |
|
11.04% |
11.58% |
|
| Raw
and packing material to cost of sales |
|
13.61% |
14.72% |
|
| Fuel
and power to sales |
|
59.06% |
49.81% |
|
| Fuel
and power to cost of sales |
|
72.79% |
63.36% |
|
| Salaries,
benefits and wages to sales |
|
3.48% |
4.06% |
|
| Salaries,
benefits and wages to cost of sales |
|
4.28% |
5.16% |
|
| Other
cost of sales expenses to sales |
|
7.57% |
13.17% |
|
| Other
cost of sales expenses to cost of sales |
|
9.32% |
16.76% |
|
| Administrative
expenses to sales |
|
2.29% |
2.01% |
|
| Selling
and distribution expenses to sales |
|
0.86% |
0.81% |
|
| Income
tax to sales |
|
0.50% |
0.86% |
|
| Financial
charges to sales |
|
2.96% |
6.05% |
|
| Earning
per share (before tax) |
|
Rs. 1.09 |
Rs. 1.00 |
|
| Earning
per share (after tax) |
|
Rs. 1.05 |
Rs. 0.92 |
|
|
| SOLVENCY |
|
| Working
capital ratio |
|
|
Rs. 1.52: 1 |
Rs. 1.54: 1 |
|
| Acid test ratio |
|
|
Rs. 1.14: 1 |
Rs. 1.28: 1 |
|
| Working
capital turnover (sales)-times |
|
8.26 |
9.44 |
|
| Inventory
turnover (sales)- times |
|
|
14.86 |
24.17 |
|
| Inventory
turnover (COGS)- times |
|
|
12.05 |
19.00 |
|
|
| OVERALL
VALUATION AND ASSESSMENT |
|
| Return
on equity after tax |
|
|
10.46% |
9.24% |
|
| Book
value per share |
|
|
Rs. 14.89 |
Rs. 14.60 |
|
| Long-term
debts to equity ratio |
|
|
Rs. 0.08: 1 |
Rs. 0.14: 1 |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of Lucky Cement
Limited as at June 30, 2001 and the |
|
| related
profit and loss account, statement of changes in equity and 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. |
|
|
| 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 stand- |
|
| ards
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, evaluat- |
|
| ing
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 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 the accounting policies
consis- |
|
| tently applied; |
|
|
|
|
| ii)
the expenditure incurred during the year was for the purpose of the Company's
business; |
|
| and |
|
|
|
|
|
