| Pakistan Papersack Corporation Limited |
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| Annual
Report 2001 |
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| Contents |
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| COMPANY
INFORMATION |
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| MILESTONES |
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| NOTICE
OF ANNUAL GENERAL MEETING |
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| DIRECTORS'
REPORT TO THE SHAREHOLDERS |
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| PATTERN
OF SHAREHOLDINGS |
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| AUDITORS'
REPORT TO THE MEMBERS |
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| BALANCE
SHEET |
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| PROFIT
& LOSS ACCOUNT |
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| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
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| STATEMENT
OF CHANGES IN |
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| NOTES
TO THE ACCOUNTS |
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| STATEMENT
U/S 237 (1) (e) OFTHE COMPANIES ORDINANCE, 1984 |
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| ACCOUNTS
OF NOBLE COMPUTER SERVICES (PVT.) LTD. |
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| CONSOLIDATED
ACCOUNTS |
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| Company
Information |
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| BOARD
OF DIRECTORS |
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| Rafiq M. Habib |
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Chairman |
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| S. Z. Kazmi |
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Chief Executive &
Managing Director |
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| Ali S. Habib |
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| Kersi
D. Kapadia |
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| Mohamedali
R. Habib |
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| Shamsuddin
Khan |
NIT Nominee |
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| Imran Hussain |
|
NIT Nominee |
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| COMPANY
SECRETARY |
S.M.A. Naqvi |
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| AUDITORS |
|
Hyder Bhimji & Co. |
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Chartered Accountants |
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| LEGAL
ADVISER |
S. Mahboob Rizvi |
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Advocate |
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| BANKERS |
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Habib Bank AG Zurich |
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Habib Bank Limited |
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Hongkong & Shanghai
Banking Corporation |
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Metropolitan Bank Limited |
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National Bank of Pakistan |
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| FACTORIES |
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Stepped-end Division |
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Hub Chowki, Balochistan |
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Balochistan Laminates
Division |
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Hub Chowki, Balochistan |
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| REGISTERED
OFFICE |
5th Floor, Siddiqsons
Towers, |
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3-Jinnah Cooperative
Housing Society, |
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Sharea Faisal, Karachi,
Pakistan. |
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Tel: 4312030-34 |
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Fax: 92 - 21 - 4312198 |
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E-Mail: ppcl@cyber.net.pk |
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| REGIONAL
SALES |
1st Floor, E-83/A, Super
Town, |
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| OFFICE |
|
Walton Road, |
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Lahore Cantt. |
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Tel: 6664571 |
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| MILESTONES |
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| The |
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| Company |
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| through the |
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| years |
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| Development |
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| and Growth |
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| 1973 |
Company incorporated. |
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| 1976 |
Converted into Public
Limited Company. |
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| 1981 |
Established Balochistan
Laminates Division at Hub Chowki. |
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| 1982 |
Top Company Award
received from The Karachi Stock Exchange |
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|
(Guarantee) Limited for
the years 1978, 1979, 1980 and 1981. |
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| 1982 |
Gold Mercury
International Award received. |
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| 1983 |
Corporate Excellence
Award received for the years 1978 - 1982 from |
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|
Management Association of
Pakistan. |
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| 1984 |
Top Companies Award
received from The Karachi Stock Exchange |
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|
(Guarantee) Limited for
the year 1983. |
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| 1986 |
Established Stepped-End
Division at Hub Chowki. |
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| 1998 |
Top Companies Award
received from The Karachi Stock Exchange |
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|
(Guarantee) Limited for
the year 1997. |
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| 2000 |
Achieved ISO 9000
Certification. |
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| 2001 |
Received Export
Performance Award (Merit Category) by Stepped-end |
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|
Division and Balochistan
Laminates Division of the Company, given by |
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|
Federation of Pakistan
Chamber of Commerce and Industry. |
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| Notice
of Meeting |
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| Notice
is hereby given that the 27th Annual General Meeting of the Company will be
held at Raffia |
|
| Choudri
Memorial Hall, Sidco Avenue Centre, 264 R.A. Lines, Karachi, on Saturday,
December 1, 2001 |
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| at
12.00 Noon to transact the following business · |
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| ORDINARY
BUSINESS: |
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| 1)
To receive and adopt the Audited Accounts for the year ended June 30, 2001
together with the |
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| Reports
of the Directors and Auditors thereon. |
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| 2)
To approve Cash Dividend @ 15% i.e. Rs. 0.75 per share for the financial year
ended June 30, |
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| 2001
as recommended by the Board of Directors. |
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| 3)
To appoint Auditors for the year 2001-2002 and fix their remuneration. |
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By order of the Board |
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(S. M. A. Naqvi) |
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| Karachi:
November 8, 2001 |
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|
Company Secretary |
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| NOTES: |
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| i)
The Shares Transfer Books of the Company will remain closed from Thursday,
November 15, |
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| 2001
to Saturday, December 1, 2001 (both days inclusive). Shares may be lodged for
transfer |
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| with
our Registrar M/s. Noble Computer Services (Pvt.) Ltd., 14-Banglore Town
Housing Society, |
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| Sharea
Faisal, Karachi. Shareholders are advised to notify the Registrar of any
change in their |
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| addresses. |
|
|
| ii)
A member entitled to attend and vote at this meeting, may appoint another
member as his/her |
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| proxy
to attend and vote for him/her. Proxies in order to be effective must be
received at the |
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| Registered
Office of the Company not less than 48 hours before the time for holding the
meeting. |
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| A
proxy must be a member of the Company. |
|
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| iii)
CDC shareholders desiring to attend the meeting are requested to bring their
original National |
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| Identity
Card, Account and participant's I.D. numbers, for identification purpose and
in case of |
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| proxy,
to enclose an attested copy of his/her National Identity Card. |
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| DIRECTORS'
REPORT TO THE SHAREHOLDERS |
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| FOR
THE YEAR ENDED JUNE 30, 2001 |
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| The
Directors of your Company are pleased to welcome you to the twenty-seventh
Annual General Meeting of |
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| your
Company and place before you the Company's Annual Report and the audited
accounts for the fiscal |
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| year
ended June 30, 2001. |
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|
| FINANCIAL
RESULTS: |
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| The
financial results of the Company for the year under review are summarized as
under: |
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|
2001 |
2000 |
|
|
|
Rs.'000 |
Rs,'000 |
|
|
| Operating Profit |
|
|
32,992 |
61,405 |
|
| Trading
Profit/(Loss) |
|
4 |
(1,891) |
|
| Other Income |
|
|
14,609 |
22,936 |
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|
------------------ |
------------------ |
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|
47,605 |
82,450 |
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|
------------------ |
------------------ |
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| Financial
Expenses |
|
20,619 |
23,214 |
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| Other Charges |
|
|
1,688 |
3,875 |
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|
------------------ |
------------------ |
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|
22,307 |
27,089 |
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------------------ |
------------------ |
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| Profit
before Taxation |
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|
25,298 |
55,361 |
|
| Provision
for Taxation |
|
|
5,249 |
16,002 |
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|
------------------ |
------------------ |
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|
20,049 |
39,359 |
|
| Un-appropriated
Profit B/F |
|
178 |
1,067 |
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|
------------------ |
------------------ |
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|
|
20,227 |
40,426 |
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|
========== |
========== |
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| Appropriations: |
|
| Proposed
Cash Dividend @ 15% i.e. Rs. 0.75 per share |
|
| (2000
- 25% i.e. Rs. 1.25 per share) |
|
10,349 |
17,248 |
|
| Transferred
to General Reserve |
|
9,500 |
23,000 |
|
| Un-appropriated
Profit C/F |
|
378 |
178 |
|
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|
------------------ |
------------------ |
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|
|
20,227 |
40,426 |
|
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|
========== |
========== |
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| PAPERSACK
OPERATIONS: |
|
| The
construction activities in the country have remained depressed during the
year; with no major |
|
| announcement
of new infrastructure development projects in public and/or private sector,
causing the demand |
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| for
cement and, through it, papersacks to remain low. |
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|
| The
import of sack kraft paper, which is our basic raw material, continues to be
unjustly subjected to customs |
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| duty
@ 30 percent, whereas customs duty on all other intermediate raw materials is
being levied @ 20 percent. |
|
| In
addition, your company is bearing additional import cost of raw materials, as
all duties are being levied on |
|
| assessed
import values which are higher than the actual cost of raw material. |
|
|
| During
the year, the Rupee continued its downward trend against the US Dollar with
spot exchange rates |
|
| ranging
from Rs. 52.30 (as on 01-07-2000) to Rs. 63.75 (as on 30-06-2001), thereby
depreciating by 22 |
|
| percent. |
|
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| Needless
to say, your management is sparing no efforts in pursuing these issues with
the concerned |
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| government
authorities to seek redress. |
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| During
the year under review, rising cost of raw material and other inputs, coupled
with the declining trend of |
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| selling
prices posed a substantial threat to your company. However, the company is
striving hard to improve its |
|
| performance.
During the year, sales of papersacks amounted to Rs. 386 million - a decline
of 1.3 percent over |
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| preceding
year's sales of Rs. 391 million, whereas, production and sales volume of
papersacks increased by |
|
| 3
percent and 1.55 percent, respectively. |
|
|
| Exports:
Your company's efforts to encourage exports of papersacks have borne positive
results, with export |
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| increasing
to Rs. 42.07 million - an increase of 225 percent over preceding year's
export of Rs. 12.96 million. |
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| The
management is confident of producing better results in future. |
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|
| LAMINATES
OPERATIONS: |
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| The
sales during the year amounted to Rs. 346 million, an increase of 12.4
percent over preceding years sales |
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| of
Rs. 307 million, while operating profit decreased from Rs. 15.4 million to
Rs. 8.4 million mainly due to the |
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| increase
in international raw material prices and devaluation of the Pak Rupee impacts
of which could not be |
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| passed
on to the customers due to intense competition. |
|
|
| Exports:
During the year under review, exports of Decorative and Industrial Laminates
showed a growth of 75 |
|
| percent
over the preceding year, i.e. from Rs. 24 million to Rs. 42 million. |
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|
| FOREST
PRODUCTS DIVISION: |
|
| In
view of continuous losses, the management has closed down the operations of
the Division and is in the |
|
| process
of winding it up. The Directors have also decided to dispose of the fixed
assets of this division. |
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|
| EXPORT
PERFORMANCE AWARD: |
|
| Your
management is pleased to report that both the divisions - Papersack and
Laminates, have been awarded |
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| the
FPCCI Export Performance Award for the year 1999 - 2000 (Merit Category) for
the export of papersacks |
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| and
decorative laminates. |
|
|
| PATTERN
OF SHAREHOLDINGS: |
|
| The
Pattern of Shareholdings as at June 30, 2001 is provided on Page No. 8 of
this Report. |
|
|
| FUTURE
OUTLOOK: |
|
| The
gradual depletion of foreign exchange reserves and downward trend of the
Rupee are going to cause a |
|
| serious
problem for import based industries like ours. In addition, rising inflation
and unfavourable investment |
|
| climate
has lead to a progressive decline in construction activity in the country,
resulting in the reduced |
|
| demand
for cement. We are hopeful that the government will initiate policies
conducive to investment |
|
| opportunities
to simulate the economy, which will result in the overall improvement of
business and industrial |
|
| activities. |
|
|
| CHANGE
OF DIRECTORS: |
|
| Messers
Zubair Ahmed and Musa Raza both nominees of NIT having resigned, the
vacancies caused thereby |
|
| have
been filled by fresh nominations of Messers Shamsuddin Khan and Imran Hussain
on the Board for the |
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| remaining
term ending 14-10-2003. The Board places on record its appreciation for the
valuable services |
|
| rendered
by the outgoing Directors and welcomes the new Directors. |
|
|
| APPOINTMENT
OF AUDITORS: |
|
| The
retiring auditors M/s. Hyder Bhimji & Co., Chartered Accountants, being
eligible, offer themselves for re- |
|
| appointment. |
|
|
| EMPLOYEES
RELATIONS: |
|
| The
relations between the Management and Workers continued to remain cordial
throughout the year. |
|
| Additionally,
the Directors would like to place on record their appreciation for the
efforts of the management, |
|
| staff
members, employees and workers. |
|
|
| ACKNOWLEDGEMENT: |
|
| The
Management wishes to acknowledge the continuous support and patronage of the
institutions and cement |
|
| units
associated with our company. The management would also like to thank them for
their cooperation and |
|
| look
forward to receiving the same in the future, which will give tremendous
encouragement to our company. |
|
|
|
|
On behalf of the |
|
|
|
Board of Directors |
|
|
|
|
|
|
|
|
|
S. Z. Kazmi |
|
| Karachi:
October 11, 2001. |
|
Chief Executive |
|
|
|
| PATTERN
OF SHAREHOLDINGS AS AT 30.6.2001 |
|
|
| NUMBER OF |
|
SHARE HOLDINGS |
|
TOTAL |
|
| SHARE |
|
RS. 5/- EACH |
|
SHARES HELD |
|
| HOLDERS |
|
|
|
| 690 |
1 |
-- |
100 |
26,008 |
|
| 629 |
101 |
-- |
500 |
166,531 |
|
| 221 |
501 |
-- |
1,000 |
173,775 |
|
| 324 |
1,001 |
-- |
5,000 |
719,547 |
|
| 44 |
5,001 |
-- |
10,000 |
315,409 |
|
| 14 |
10,001 |
-- |
15,000 |
182,920 |
|
| 4 |
15,001 |
-- |
20,000 |
67,032 |
|
| 14 |
20,001 |
-- |
25,000 |
321,940 |
|
| 10 |
25,001 |
-- |
30,000 |
276,564 |
|
| 3 |
30,001 |
-- |
35,000 |
92,021 |
|
| 4 |
35,001 |
-- |
40,000 |
149,100 |
|
| 1 |
40,001 |
-- |
45,000 |
44,500 |
|
| 1 |
45,001 |
-- |
50,000 |
47,451 |
|
| 1 |
65,001 |
-- |
70,000 |
69,100 |
|
| 3 |
75,001 |
-- |
80,000 |
231,191 |
|
| 3 |
85,001 |
-- |
90,000 |
263,261 |
|
| 4 |
95,001 |
-- |
100,000 |
385,800 |
|
| 3 |
105,001 |
-- |
110,000 |
327,400 |
|
| 2 |
110,001 |
-- |
115,000 |
225,609 |
|
| 1 |
115,001 |
-- |
120,000 |
118,292 |
|
| 1 |
120,001 |
-- |
125,000 |
120,488 |
|
| 1 |
130,001 |
-- |
135,000 |
131,414 |
|
| 2 |
145,001 |
-- |
150,000 |
293,622 |
|
| 4 |
240,001 |
-- |
245,000 |
979,867 |
|
| 1 |
265,001 |
-- |
270,000 |
267,696 |
|
| 1 |
425,001 |
-- |
430,000 |
427,800 |
|
| 1 |
2,625,001 |
-- |
2,630,000 |
2,628,654 |
|
| 1 |
4,745,001 |
-- |
4,750,000 |
4,745,520 |
|
| ------------------ |
|
|
------------------ |
------------------ |
|
| 1,988 |
|
TOTAL |
|
13,798,512 |
|
| ========== |
|
========== |
========== |
|
|
|
|
|
| CATEGORIES
OF |
|
NUMBER OF |
SHARES |
PERCENTAGE |
|
| SHAREHOLDERS |
|
SHARE |
HELD |
% |
|
|
HOLDERS |
|
|
| Individuals |
|
1,947 |
3,736,447 |
27.08 |
|
| Investment
Companies |
|
2 |
113,097 |
0.82 |
|
| Insurance
Companies |
|
6 |
732,222 |
5.31 |
|
| Joint
Stock Companies |
|
18 |
296,368 |
2.15 |
|
| Financial
Institutions |
|
3 |
3,056,754 |
22.15 |
|
| Modaraba
Companies |
|
-- |
-- |
-- |
|
| Foreign
Investors |
|
7 |
5,833,487 |
42.28 |
|
| Co-operative
Societies |
|
2 |
1,827 |
0.01 |
|
| Charitable
Trusts |
|
1 |
21,898 |
0.16 |
|
| Others |
|
2 |
6,412 |
0.04 |
|
|
|
------------------ |
------------------ |
------------------ |
|
| TOTAL |
|
1,988 |
13,798,512 |
100.00 |
|
|
|
========== |
========== |
========== |
|
|
|
|
|
|
| AUDITORS'
REPORT TO THE MENIBERS |
|
|
| We
have audited the annexed Balance Sheet of Pakistan Papersack Corporation
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 account have been kept by the Company as
required by the |
|
| Companies
Ordinance, 1984; |
|
|
|
|
|
|
| b)
in our opinion: |
|
|
|
|
|
|
| i)
the Balance Sheet and Profit arid 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
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, was |
|
| deducted
by the Company and deposited into the Central Zakat Fund established under
Section 7 |
|
| of
that Ordinance. |
|
|
|
|
|
|
|
HYDER BHIMJI & CO. |
|
| Karachi:
October 11 2001 |
|
Chartered Accountants. |
|
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 2001 |
|
|
|
|
Note |
2001 |
2000 |
|
|
|
|
Rs. '000 |
Rs.'000 |
|
| CAPITAL
AND LIABILITIES |
|
|
|
| SHARE
CAPITAL AND RESERVES |
|
|
|
|
| Authorised
Capital: |
|
|
|
| 20,000,000
Ordinary Shares of Rs. 5/- each |
|
100,000 |
100,000 |
|
|
|
|
========== |
========== |
|
|
|
|
| Issued,
Subscribed & Paid-up Capital |
3 |
68,993 |
68,993 |
|
| General
Reserve - Revenue |
|
4 |
241,500 |
232,000 |
|
| Un-appropriated
Profit |
|
|
378 |
178 |
|
|
------------------ |
------------------ |
|
|
|
310,871 |
301,171 |
|
| LONG
TERM FINANCE |
|
5 |
2,406 |
-- |
|
| DEFERRED
LIABILITY-TAXATION |
|
6,400 |
6,500 |
|
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
| Short
Term and Running Finance utilised |
|
|
| under
Mark-up arrangements |
|
6 |
89,348 |
114,041 |
|
| Current
portion of Long Term Finance |
7 |
875 |
-- |
|
| Creditors,
Accrued and Other Liabilities |
8 |
77,183 |
73,830 |
|
| Proposed
Dividend |
|
|
10,349 |
17,248 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
177,755 |
205,119 |
|
| CONTINGENCIES
& COMMITMENTS |
9 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
497,432 |
512,790 |
|
|
|
========== |
========== |
|
|
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
| Karachi:
October 11, 2001. |
|
|
| PROPERTY
AND ASSETS |
|
|
|
| TANGIBLE
FIXED ASSETS |
|
|
|
| Operating
Assets |
|
10 |
54,389 |
55,924 |
|
| Capital
Work in progress - Plant & Machinery |
|
977 |
-- |
|
|
|
|
|
|
|
|
|
55,366 |
55,924 |
|
| LONG
TERM INVESTMENTS |
|
11 |
40,986 |
63,905 |
|
| LONG
TERM DEPOSITS |
|
|
1,656 |
1,987 |
|
|
|
|
|
|
| CURRENT
ASSETS |
|
| Stores & Spares |
|
12 |
13,829 |
13,234 |
|
| Stock-in-Trade |
|
13 |
165,882 |
210,481 |
|
| Trade Debts |
|
14 |
108,915 |
99,156 |
|
| Loans
& Advances |
|
15 |
34,591 |
48,540 |
|
| Deposits
& Prepayments |
|
16 |
2,831 |
2,511 |
|
| Other
Receivables |
|
17 |
36,365 |
10,471 |
|
| Current
portion of Long Term investment |
18 |
27,999 |
-- |
|
| Cash
& Bank Balances |
|
19 |
9,012 |
6,581 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
399,424 |
390,974 |
|
|
------------------ |
------------------ |
|
|
|
497,432 |
512,790 |
|
|
========== |
========== |
|
|
|
|
|
RAFIQ M. HABIB |
|
KERSI D. KAPADIA |
|
S. Z. KAZMI |
|
|
Chairman |
|
Director |
|
Chief Executive |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
< |
