| Altern Energy Limited |
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| Annual
Report 2001 |
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| Contents |
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| COMPANY
INFORMATION |
|
| NOTICE
OF MEETING |
|
| DIRECTORS'
REPORT |
|
| AUDITORS'
REPORT |
|
| BALANCE
SHEET |
|
| PROFIT
AND LOSS ACCOUNT |
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| CASH
FLOW STATEMENT |
|
| NOTES
TO THE ACCOUNT |
|
| PATTERN
OF SHAREHOLDING |
|
|
|
| COMPANY
INFORMATION |
|
|
| CHIEF
EXECUTIVE |
|
| Mr.
Habib Rehman Khan |
|
|
| BOARD
OF DIRECTORS |
|
| Mr.
Habib Rehman Khan |
|
| Mr.
Tariq Khalil Khan |
|
| Mr.
Zafar Mahmud Ahmed |
|
| Brig
(R) Akhtar Hafeez |
|
| Mr.
Omar Habib Khan |
|
| Mrs.
Fauzia Khan |
|
| Mrs.
Ayesha Khan |
|
|
| SECRETARY |
|
| Mr.
Anjum Pervaiz |
|
|
| AUDITORS |
|
| Yusaf
Saeed & Company |
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| Chartered
Accountants |
|
|
| REGISTERED
OFFICE |
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| Nawa-e-Waqt
House, |
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| 4-Shahrah~e-Fatima
Jinnah, Lahore |
|
|
| HEAD OFFICE |
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| 73-K,
Model Town, Lahore |
|
|
| REGISTERAR
SHARES |
|
| Uni
Corporate & Financial Service |
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| Westland
Trade Centre, |
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| Opp:
Flyover, Shaheed-e-Millat Road, Karachi. |
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| Tel:
4313205-4313206 Fax: 4313207 |
|
|
| BANKERS |
|
| United
Bank Limited |
|
| Bank
of Khyber |
|
| Citibank NA |
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| Albaraka
Islamic Bank |
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| National
Bank of Pakistan |
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|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
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| Notice
is hereby given that the 7th Annual General Meeting of Altern Energy Limited,
will be held on December |
|
| 15,2001
at 4:00 P.M. at Pearl Continental Hotel, Shaharah-e-Quaid-e-Azam, Lahore, to
transact the following |
|
| business: |
|
|
| 1.
To confirm the minutes of the 6th Annual General Meeting held on January
31,2001. |
|
|
| 2.
To receive, consider and adopt the Audited Accounts of the Company for the
year ended June 30, 2001 |
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| together
with Reports of the Directors and Auditors thereon. |
|
|
| 3.
To appoint Auditors of the Company and fix their remuneration. The present
Auditors Yusuf Saeed & |
|
| Co.
Chartered Accountants, are being retired. They have offered themselves for
reappointment. |
|
|
| 4.
To select Seven Directors fixed under Section 178 (1) of the Companies
Ordinance, 1984, in place of |
|
| the
following retiring directors. |
|
| 1.
Mr. Habib Rehman Khan |
|
2. Mr. Tariq Khalil Khan |
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| 3.
Brig. (R) Akhtar Hafeez |
|
4. Mr. Zafar Mahmud Ahmed |
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| 5.
Mr. Omar Habib Khan |
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6. Mrs. Fauzia Khan |
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| 7.
Mrs. Ayesha Khan |
|
|
| 5.
To transact any other business with the permission of the Chair. |
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|
By Order of the Board |
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|
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|
ANJUM PERVAIZ |
|
| Lahore:
November 23, 2001 |
|
Secretary |
|
|
| NOTES: |
|
| 1.
Share Transfer Books of the Company will remain closed from December 9,2001
to December 15,2001 |
|
| (both
days inclusive). |
|
|
| 2.
A member of the Company 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
representatives. The instrument of proxy |
|
| duly
executed should be lodged at the Registered Office of the Company at
Nawa-e-Waqt House, |
|
| 4-Shahrah-e-Fatima
Jinnah, Lahore not later than 48 hours before the time of meeting. |
|
|
| 3.
Any member who seeks to contest the election to the office of Directors
should file with the Company at the |
|
| Registered
Office at Nawa-e-Waqt House, 4-Shahrah-e-Fatima Jinnah, Lahore not later than
14 days before |
|
| the
date of election as a Director alongwith written consent to act as Director. |
|
|
| 4.
Members are requested to notify the change in their address, if any,
immediately. |
|
|
| 5.
Any individual beneficial owner of CDC, entitled to vote at the meeting, must
bring his/her NIC with him/her |
|
| to
prove his / her identity, and in case of proxy, a copy of shareholder's
attested NIC must be attached with |
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| the
proxy form. Representatives of corporate members should bring the usual
documents required for such |
|
| purpose. |
|
|
|
| DIRECTORS'
REPORT TO THE SHAREHOLDERS |
|
|
| Dear
Shareholders, |
|
| The
Directors of Altern Energy Limited welcome you on the 7th Annual General
Meeting of your company |
|
| and
present their report together with the Audited Financial Statements of the
Company for the year |
|
| ended
June 30, 2001. |
|
|
| We
are pleased to report that your project has successfully achieved Commercial
Operations which were |
|
| accepted
by WAPDA with effect from June 6, 2001. The company we required to complete
certain formalities |
|
| as below: |
|
|
| The
company shall supply the copies of certificates to WAPDA confirming that the
Complex complies |
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| with
the described environmental standards. |
|
|
| Certain
certificates required under Section 3.3(v) of the PPA will be submitted
within three months |
|
| from the date. |
|
|
| The
company shall, within four months arrange for additional storage of cooling
water. |
|
|
| Necessary
work for supply and storage of cooling water has been complete. The company
is confident to |
|
| meet
the said requirements. |
|
|
| Currently
the AEL power plant has been commissioned at the Dependable Capacity of 9.75
MW in |
|
| accordance
with the MOU dated August 9, 1999. However, further expansion allowed by
WAPDA under |
|
| the
said MOU is also being planned by the company. |
|
|
| The
profit and loss account presented is for the period of approximately one
month. The main reason for |
|
| the
loss is depreciation of fixed assets and some disputed amount on account of
energy billing which has |
|
| not
been accrued in these accounts. However, Company expects that the situation
will improve in the next |
|
| financial
year on the expectation that WAPDA will clear the company's claims. |
|
|
| Acknowledgment |
|
| The
Directors wish to thank all shareholders and bankers for their continued
support and confidence in |
|
| the Company. |
|
|
| The
Directors also wish to place on record their appreciation for the work of the
staff of the Company. |
|
|
| Auditors |
|
| The
present auditors Yusuaf Saeed & Co. Chartered Accountants, are being
retire and they have offered |
|
| themselves
for reappointment for the year 2001-2002. |
|
|
| Pattern
of Share Holding |
|
| The
pattern of share holding as on June 30, 2001 as required under Section 236 of
the Companies |
|
| ordinance,
1984 is enclosed. |
|
|
|
For and on the behalf of the Board of Directors. |
|
|
|
|
|
HABIB REHMAN KHAN |
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| Lahore:
November 10, 2001 |
|
Chief Executive |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of Altern Energy Limited as at June
30, 2001, and the related profit |
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| and
loss account, cash flow statement and statement of changes in equity together
with the notes forming part |
|
| thereof,
for the period then ended and we state that we have obtained all the
information and explantations 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 |
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| prepare
and present the above said statements in conformity with the approved
accounting standards and the |
|
| requirements
of the Companies Ordnance, 1984. Our responsibility is to express and 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 that above said statements |
|
| are
free of any material misstatements. 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 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 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 loss, its cash |
|
| flows
and changes in equity for the year then ended; and |
|
|
| D)
in our opinion, no Zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
|
|
|
YUSUF SAEED & CO. |
|
| Lahore:
November 15, 2001 |
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 2001 |
|
|
|
|
2001 |
2000 |
|
|
NOTE |
RUPEES |
RUPEES |
|
| CAPITAL
AND LIABILITIES |
|
| SHARE
CAPITAL |
|
| Authorized |
|
| 26,000,000
ordinary shares of Rs. 10/- each |
|
260,000,000 |
260,000,000 |
|
|
========== |
========== |
|
| Issued,
subscribed and paid up |
|
221,000,000 |
221,000,000 |
|
| Accumulated
Loss |
|
(3,636,405) |
-- |
|
|
---------- |
---------- |
|
| Shareholder's
Equity |
|
217,363,595 |
221,000,000 |
|
| SPONSOR'S
LOAN - UNSECURED |
|
9,294,580 |
-- |
|
| LONG
TERM LOANS - SECURED |
|
4 |
234,035,802 |
265,060,028 |
|
|
|
|
| DEFERRED
LIABILITY- GRATUITY |
|
280,250 |
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
| Current
portion of long term loans |
|
5 |
72,707,431 |
-- |
|
| Finances
under mark up arrangements |
|
6 |
33,998,745 |
16,969,435 |
|
| Creditors,
accrued and other liabilities |
|
7 |
74,618,091 |
3'1,248,997 |
|
|
|
---------- |
---------- |
|
|
|
181,324,267 |
48,218,432 |
|
| CONTINGENCIES
AND COMMITMENTS |
|
8 |
|
|
---------- |
---------- |
|
|
642,298,494 |
534,278,460 |
|
|
========== |
========== |
|
| PROPERTY
& ASSETS |
|
| FIXED
CAPITAL EXPENDITURE |
|
| Operating
fixed assets |
|
9 |
585,576,032 |
6,961,549 |
|
| Capital
work in progress |
|
10 |
-- |
402,198,923 |
|
|
---------- |
---------- |
|
|
585,576,032 |
409,160,472 |
|
|
| LONG
TERM DEPOSITS AND |
|
| DEFERRED
COSTS |
|
11 |
9,670,402 |
9,670,402 |
|
| Pre
incorporation expenses |
|
|
1,302,420 |
1,302,420 |
|
| Un-allocated
capital expenditure |
|
12 |
-- |
60,657,646 |
|
|
| CURRENT
ASSETS |
|
| Store & Spares |
|
2,230,831 |
-- |
|
| Trade debtors |
|
13 |
13,958,179 |
-- |
|
| Advances,
deposits, prepayments |
|
| and
other receivables |
|
14 |
13,025,582 |
33,906,228 |
|
| Cash
and bank balances |
|
15 |
16,535,048 |
19,581,292 |
|
|
|
---------- |
---------- |
|
|
45,749,640 |
53,487,520 |
|
|
---------- |
---------- |
|
|
642,298,494 |
534,278,460 |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
HABIB REHMAN KHAN |
|
BRIG, (R) AKHTAR HAFEEZ |
|
|
Chief Executive |
|
Director |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE PERIOD ENDED JUNE 30, 2001 |
|
|
|
|
2001 |
2000 |
|
|
NOTE |
RUPEES |
RUPEES |
|
| Sales |
|
16 |
11,478,044 |
-- |
|
|
|
|
|
| Cost of sales |
|
17 |
11,852,472 |
-- |
|
|
|
---------- |
---------- |
|
| Gross Loss |
|
(374,428) |
-- |
|
|
|
|
| Operating
expenses: |
|
|
|
| Administration
& general |
|
18 |
509,535 |
-- |
|
|
|
---------- |
---------- |
|
| Operating
profit |
|
|
(883,963) |
-- |
|
|
|
|
|
| Other income |
|
19 |
1,269 |
-- |
|
|
|
---------- |
---------- |
|
|
|
(882,694) |
-- |
|
|
|
|
|
| Financial
and other charges |
|
20 |
2,753,711 |
-- |
|
|
|
---------- |
---------- |
|
| Net
loss for the year carried forward to balance sheet |
|
(3,636,405) |
-- |
|
|
|
========== |
========== |
|
|
|
|
|
|
---------- |
---------- |
|
| Earning
per share of Rs. 10 each |
|
|
(0.16) |
-- |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
HABIB REHMAN KHAN |
|
BRIG. (R) AKHTAR HAFEEZ |
|
|
Chief Executive |
|
Director |
|
|
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| AS
AT JUNE 30, 2001 |
|
|
|
SHARE |
UN-APPROPRIATED |
|
|
|
CAPITAL |
PROFIT |
TOTAL |
|
| PARTICULARS |
|
RUPEES |
RUPEES |
RUPEES |
|
|
| Balance
as at June 30, 1999 |
|
221,000,000 |
|
221,000,000 |
|
|
|
|
| Movement
during the year |
|
-- |
|
-- |
|
|
---------- |
---------- |
---------- |
|
| Balance
as at June 30, 2000 |
|
221,000,000 |
|
221,000,000 |
|
|
|
|
| Movement
profit/(loss) for the year |
-- |
(3,636,405) |
(3,636,405) |
|
|
---------- |
---------- |
---------- |
|
| Balance
as at June, 30, 2001 |
|
221,000,000 |
(3,636,405) |
217,363,595 |
|
|
========== |
========== |
========== |
|
|
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
HABIB REHMAN KHAN |
|
BRIG. (R) AKHTAR HAFEEZ |
|
|
Chief Executive |
|
Director |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED JUNE 30, 2001 |
|
|
|
|
2001 |
2000 |
|
|
NOTE |
RUPEES |
RUPEES |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| Operating
loss before taxation |
|
- |
|
(3,636,405) |
-- |
|
|
| Adjustment
for: |
|
| Depreciation |
|
4,632,907 |
-- |
|
| Gratuity |
|
280,250 |
-- |
|
|
---------- |
---------- |
|
| Operating
profit before working capital changes |
|
1,276,752 |
-- |
|
|
|
|
| (Increase)/Decrease
in Trade debtors & stores |
|
1(12'885'990) |
-- |
|
| (Increase)/Decrease
in Advances |
|
(910,504) |
-- |
|
| (Increase)/Decrease
in Accrued expenses |
|
(8,456,873) |
-- |
|
|
---------- |
---------- |
|
|
(5,339,621) |
-- |
|
|
| NET
CASH FLOW FROM OPERATING |
|
| ACTIVITIES |
|
(4,062,869) |
-- |
|
| CASH
IN FLOW / (OUTFLOW) |
|
| FROM
INVESTING ACTIVITIES |
|
|
| Fixed
assets purchased |
|
(27,244,736) |
(972,300) |
|
| Capital
work in progress - Civil works |
|
-- |
(380,480) |
|
| Capital
work in progress - Machinery |
|
-- |
(47,821,858 |
|
| Unallocated
capital expenditure |
|
-- |
(18,809,772 |
|
|
---------- |
---------- |
|
| NET
CASH (OUTFLOW) FROM INVESTING |
|
| ACTIVITIES |
|
(27,244,736) |
(67,984,410) |
|
|
| CASH
INFLOW / (OUTFLOW) FROM FINANCING |
|
| ACTIVITIES |
|
| Land
term loans |
|
1,937,472 |
64,971,980 |
|
| Sponsor's
Loan received |
|
9,294,580 |
-- |
|
| Finances
under mark up arrangements |
|
17,029,310 |
(18,247) |
|
|
---------- |
---------- |
|
| NET
CASH INFLOW FROM FINANCING |
|
| ACTIVITIES |
|
28,261,362 |
64,953,733 |
|
|
| Net
(decrease)in cash and cash equivalents |
|
(3,046,244) |
(3,030,677) |
|
| Cash
and cash equivalents at beginning of the year |
|
19,581,292 |
22,611,969 |
|
|
---------- |
---------- |
|
| CASH
AND CASH EQUIVALENTS AT YEAR END |
15 |
16,535,048 |
19,581,292 |
|
|
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
HABIB REHMAN KHAN |
|
BRIG. (R) AKHTAR HAFEEZ |
|
|
Chief Executive |
|
Director |
|
|
|
| NOTES
TO THE ACCOUNTS FOR |
|
| THE
YEAR ENDED JUNE 30, 2001 |
|
|
| 1.
STATUS & NATURE OF BUSINESS |
|
| The
Company is incorporated in Pakistan and is listed on Karachi Stock Exchange.
The principal objective |
|
| of
the company is to generate, distribute, sell and supply electric power to
Wapda. The company has |
|
| commenced
commercial operations w.e.f. June 6, 2001. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
| 2.1
Accounting Convention |
|
| These
accounts have been prepared under "Historical Cost Convention"
modified by capitalization of |
|
| exchange
differences referred in note 2.10. |
|
|
| 2.2
Compliance with IAS's |
|
| These
accounts comply with International Accounting Standards, where applicable in
Pakistan, in all |
|
| material
respects. |
|
|
| 2.3
Staff Retirement Benefits |
|
| The
company operates an un-funded gratuity scheme covering all its permanent
employees. Provision is |
|
| made
annually to cover the liability under the scheme. |
|
|
| 2.4 Taxation |
|
|
| The
company's profit and gains from power generation are exempt from tax under
the Clause 176 of Part |
|
| I
of Second Schedule of the Income tax ordinance 1979. |
|
|
| 2.5
Fixed Capital Expenditure and Depreciation |
|
| All
operating fixed assets except land are stated at cost less accumulated
depreciation. The land and |
|
| capital
work in progress are stated at cost. Cost of certain fixed assets comprise of
historical cost and |
|
| exchange
differences referred in note 2.10. |
|
|
| Operating
fixed assets are depreciated on reducing balance method so as to write off
the historical |
|
| cost
of an asset over its estimated useful life at annual rates mentioned in note
9. Full year's depreciation |
|
| is
charged in the year of addition and no depreciation is charged in the year of
disposal. |
|
|
| Currently
depreciation on building and plant & machinery is charged to cost of sale
for one month only |
|
| for
the period of commercial production. |
|
|
| Maintenance
and normal repairs are charged to unallocated capital expenditure as and when
incurred. |
|
| Major
renewals and repairs are capitalized. Gains and losses on disposals have been
set off against the |
|
| unallocated
capital expenditure. |
|
|
| 2.6
Pre-incorporation Expenses |
|
| These
costs shall be amortized over a period of five years on the commencement of
commercial |
|
| production.
These are to be amortized from the subsequent year. |
|
|
| 2.7
Un-allocated Capital Expenditure |
|
| All
expenses incurred after incorporation of the company are being accounted for
under this head of |
|
| account.
These costs are prorated to machinery and building after the commencement of
commercial |
|
| operations
of the company. |
|
|
| 2.8
Deferred Costs |
|
| These
costs shall be amortized over a period of there years after the commencement
of commercial |
|
| production.
These are to be amortized from the subsequent year. |
|
|
| 2.9
Stock and Stores |
|
| Stores
and spares are valued at moving average cost. |
|
| Raw
materials are valued at lower of FIFO cost and net realisable value. |
|
|
| 2.10
Foreign Currencies |
|
| All
assets and liabilities in foreign currencies are translated at the rate of
exchange prevailing on the |
|
| balance
sheet date. Exchange differences on loans utilised for the acquisition of
plant and machinery |
|
| are
capitalised. All other exchange differences have been set off against
financial charges. |
|
|
| 2.11
Financial and other charges |
|
| Financial
and other charges on long term loans are capitalized up to the date of actual
commercial |
|
| operations.
All other financial charges are charged to income. |
|
|
| 2.12
Revenue recognition |
|
| Energy
sale is recognised on transmission of electricity to WAPDA, whereas revenue
on account of |
|
| Capacity
Purchase Price is recognised when due. |
|
|
|
|
2001 |
2000 |
|
|
NOTE |
RUPEES |
RUPEES |
|
| 3.
SHARE CAPITAL |
|
| Share
issued for cash consideration |
|
| (18,200,000
ordinary shares of Rs. 10/- |
|
| each fully paid) |
|
182,000,000 |
182,000,000 |
|
| Shares
issued for consideration |
|
| Otherwise
than in cash (3,900,000 |
|
| ordinary
shares of Rs. 10/- each fully paid) |
|
39,000,000 |
39,000,000 |
|
|
---------- |
---------- |
|
|
221,000,000 |
221,000,000 |
|
|
========== |
========== |
|
|
| 4.
LONG TERM LOANS - SECURED |
|
| Long
term loans |
|
4.1 |
53,125,000 |
96,062,528 |
|
| Supplier's
credit |
|
4.2 |
180,910,802 |
168,997,500 |
|
|
|
---------- |
---------- |
|
|
234,035,802 |
265,060,028 |
|
|
========== |
========== |
|
|
| 4.1
Long term Loans |
|
|
|
Rate of |
No. of |
|
|
|
|
interest |
equal |
|
|
|
|
per |
quarterly |
Sanctioned |
|
| Lender |
|
annum |
installments |
Limited |
|
|
| a) United Bank |
|
14.50% |
8 - starting from |
85 million |
85,000,000 |
83,062,528 |
|
| Limited |
|
31 Oct. 01 |
|
|
| Less
current portion |
|
|
(31,875,000) |
-- |
|
|
|
---------- |
---------- |
|
|
|
53,125,000 |
83,062,528 |
|
|
|
|
| b)
Bank of Khyber |
0.47/1000 |
4 - starting from |
13 million |
13,000,000 |
13,000,000 |
|
|
day |
01 Jul. 01 |
|
| Less
current portion |
|
|
(13,000,000) |
-- |
|
|
========== |
