| AL-ASIF
SUGAR MILLS LIMITED |
|
|
|
|
|
|
|
| ANNUAL
REPORT 2004 |
|
|
| DIRECTORS'
REPORT |
|
|
| GENERAL |
|
| Sugarcane
is the fourth largest agricultural crop after cotton, wheat and rice and
Sugar Industry is the vital organ of Pakistan's |
|
| economy
around which the financial statistics revolve. The price of sugar, depends
upon demand and supply position. The supply |
|
| position
of sugar in the nineties depended largely on Sindh Sugar production, as Sindh
was a net exporter of sugar to other |
|
| provinces.
This situation has changed. Sindh has scarce water supply and a crop like
sugar cane requires a good amount of water |
|
| and
a larger period to grow; the farmer has thus diversified to other crops in
the Province of Sindh. On the other hand Punjab has |
|
| cultivated
improved varieties and their milling capacity has increased, which has made
Punjab self-sufficient in sugar: in fact |
|
| Punjab
sugar has even been seen in Sindh. |
|
|
| The
Sindh Sugar Mills financial structure has largely reversed compared to what
it was a decade ago. Most of the Sindh Sugar Mills |
|
| are
running into losses. There is a worsening crop situation in the two lower
Sindh districts of Badin and Thatta. Months and months |
|
| pass
without irrigation water being released in the canals. The land of Thatta is
being encroached by sea. The effect of last floods in |
|
| district
Thatta, specifically the area near the coast, which was in undated by
floodwaters for a longer period, and which forms the |
|
| supply
area of sugarcane to many mills, resulted in both losses of yield as well as
recovery. |
|
|
| The
season under report was short supply season for your mill, and the prices of
sugar also remained subdued, resulting in gross |
|
| losses
to the company. |
|
|
| The
reduction in sugarcane rate has somewhat saved us from extra losses; however,
due to almost no sugarcane in our area, we had |
|
| to
buy the same from other areas resulting in extra burden in the form of
transport subsidy. By and large, management succeeded |
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| in
keeping the cane cost within limit. |
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|
| You
are aware that the company does not have any liquidity. It generates funds
through sale of molasses, advances and deposits |
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| from
sugar brokers. The trend continued despite heavy liquidity positions of banks
and DFl's countrywide, but do not qualify to |
|
| borrow
from banks. We had to sell our sugar production promptly after production to
recycle and regenerate funds for working |
|
| capital;
due to our above exercise, we have not been able to harvest the benefits of
marginal sugar price rise in the market. During |
|
| the
term of operational activity, we sold our product even below Rs.15/- per kg.
to meet the demand of sugarcane purchase. |
|
| However,
a month after the season was over, the local sugar price and molasses price
jumped due to sudden shortage in the |
|
| neighboring
country. Prices of sugar are now stabilizing around Rs.18/- per kg. but we do
not have any stock. |
|
|
| "Allhumdulilah
the management has succeeded in negotiation of loans with banks / DFI's in
the light of circular No: 29 dated: Oct, |
|
| 2002.
The SBP Committee has conveyed its decision in Oct, 2004. The final approval
from individual Banks/ DFI's is awaited. In |
|
| future
your company will be in a position to avail credit facility from the banks
and will not bear high financial cost." |
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|
| Particulars |
|
|
30th |
30th |
|
|
|
September |
September |
|
|
|
2004 |
2003 |
|
| Season Started |
|
|
10-12-03 |
25-12-2002 |
|
| Season Closed |
|
|
28-03-2004 |
12-04-03 |
|
| No. Days Worked |
|
|
109 |
109 |
|
| Sugarcane
Crushed |
|
(M.Ton) |
229,327 |
265,822 |
|
|
(Mounds) |
5,733,187 |
6,645,550 |
|
| Sugar recovery |
|
(%) |
8.975 |
9.746 |
|
| Sugar production |
|
(M.Ton) |
20,556 |
26,126 |
|
| Molasses
Production |
|
(M.Ton) |
11,558 |
13,171 |
|
|
| FINANCIAL
RESULTS |
|
|
|
|
30th September |
30th September |
|
| Particulars |
|
2004 |
2003 |
|
|
Rs. |
Rs. |
|
| Sale |
|
277,905,399 |
407,025,797 |
|
| Cost
of Goods Sold |
|
-314,703,555 |
-395,505,344 |
|
| Gross
Profit/ (Loss) |
|
-36,798,156 |
11,520,453 |
|
| Administrative
Expenses |
|
-20,724,507 |
-19,304,644 |
|
| Selling
& Distribution Exp |
|
-340,913 |
-423,733 |
|
| Financial
& Other Charges |
|
-3,230,439 |
-31,411,162 |
|
| * Other Income |
|
115,778,430 |
101,696 |
|
| Profit/(Loss)
before Taxation |
|
54,684,415 |
-39,517,390 |
|
| Provision
for Taxation |
|
-1,389,527 |
-2,035,129 |
|
| Profit
/ (Loss) after Taxation |
|
53,294,888 |
-41,552,519 |
|
|
| SEASON
2004-2005 |
|
| The
ensuing season is a nightmare for Sindh Sugar Industry, particularly sugar
mills of Thatta. There is hardly any crop worth |
|
| mentioning
to harvest. Crop will have to be brought from out zone, which due to lower
sugar price has become uneconomical. |
|
| Government
had announced the mills start-up date as October 1, 2004, which was
meaningless as mills were not ready by that time. |
|
| Start-up
was then shifted gradually to November 1, 2004 even at that time growers
could not get the harvesting started. The final |
|
| date
was announced as November 20, 2004; however, either there is inadequate
sugarcane to harvest or the growers are keeping the |
|
| sugarcane
un-harvested for price to rise, in both the cases mills are running at half
the capacity. In this situation we will see many |
|
| mills
closing down. |
|
|
| The
company has entered into an operating lease agreement, for a period of two
years, with Dewan Sugar Mills Limited ("DSML"), |
|
| whereby
the company has vested exclusive right of its production facility to Dewan
Sugar Mills Limited. The lease arrangement will |
|
| ensure
sufficient cash flow to enable the company to meets its obligations for
payment of installment arising out of settlement in |
|
| terms
of S.B.P. circular 29. In the prevailing circumstances of price war our lease
arrangement with Dewan Sugar Mills Ltd. Is a very |
|
| healthy
sign and plays a vital role in the operation of Mills. |
|
|
| HEALTH.
SAFETY AND ENVIRONMENT |
|
| Appropriate
facilities existed for safeguarding the health of employees in accordance
with the Factories Act 1948 and National |
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| Environment
Quality Standard (N.E.Q.5.) for Sugar Industry. We are collaborating with
Environmental Protection Agency, Govern- |
|
| ment
of Sindh and facilities are being developed at site to minimize the emissions
to the desired standard level. |
|
|
| INFORMATION
TECHNOLOGY |
|
| Improvement
and up-gradation of the existing instruments are being continuously made to
keep up with the requirements of |
|
| technological
advancement in this field. |
|
|
| PATTERN
OF SHAREHOLDING OF THE ORDINARY SHARES BY |
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| THE
SHARE HOLDERS AS ON 30th SEPTEMBER, 2004 |
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|
|
Number of |
Shan |
eholding |
Total Shares |
|
|
|
Shareholder |
From |
To |
Held |
Percentage |
|
|
1,508 |
1 |
100 |
150,357 |
1.03 |
|
|
1,929 |
101 |
500 |
820,729 |
5.6 |
|
|
89 |
501 |
1,000 |
80,195 |
0.55 |
|
|
120 |
1,001 |
5,000 |
272,190 |
1.86 |
|
|
11 |
5,001 |
10,000 |
84,700 |
0.58 |
|
|
5 |
10,001 |
15,000 |
58,700 |
0.4 |
|
|
3 |
15,001 |
20,000 |
51,400 |
0.35 |
|
|
3 |
20,001 |
25,000 |
73,000 |
0.5 |
|
|
1 |
30,001 |
35,000 |
30,700 |
0.21 |
|
|
1 |
50,001 |
55,000 |
52,200 |
0.36 |
|
|
2 |
95,001 |
100,000 |
200,000 |
1.36 |
|
|
2 |
145,001 |
150,000 |
300,000 |
2.05 |
|
|
1 |
225,001 |
230,000 |
227,600 |
1.55 |
|
|
1 |
245,001 |
250,000 |
249,000 |
1.7 |
|
|
1 |
285,001 |
290,000 |
290,000 |
1.98 |
|
|
1 |
315,001 |
320,000 |
312,700 |
2.13 |
|
|
2 |
545,001 |
550,000 |
1,100,000 |
7.5 |
|
|
1 |
580,001 |
585,000 |
583,000 |
3.98 |
|
|
1 |
730,001 |
735,000 |
733,333 |
5 |
|
|
1 |
3,070,001 |
3,075,000 |
3,072,100 |
20.95 |
|
|
1 |
5,920,001 |
5,925,000 |
5,924,762 |
40.4 |
|
|
3,684 |
|
14,666,666 |
100 |
|
|
| Name of Director |
|
No. of Meetings Attended |
|
| 1)
Mr. Qazi Amjad Abid Abbasi |
|
2 |
|
| 2)
Mr. M. Arshad Mirza |
|
4 |
|
| 3)
Mrs. Husna Amjad Kazi |
|
3 |
|
| 4)
Mr. Ali Akber Junejo |
|
1 |
|
| 5)
Mr. Haji Sher Jamali |
|
2 |
|
| 6)
Mr. Shaikh Aftab Ahmed (I.D.B.P) |
|
2 |
|
| 7)
Mr. Kamal Shoaib (N.I.T) |
|
2 |
|
| 8)
Mr. Mohd. Abdul Samad (N.I.T) |
|
3 |
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|
| FUTURE
PROSPECTS |
|
| The
past was the indicator to the future and the future prospects of sugar mills
in Lower Sindh especially in Thatta are bleak & |
|
| cloudy
unless there is improvement in the availability of water. Water shortage has
turned the growers away from cultivation of |
|
| sugarcane.
Soil has become bitter due to flood backwater in the coastal areas. The
situation is more critical in lower Sindh area |
|
| compared
to the position in Upper and Central Sindh areas. |
|
|
| The
future of sugar industry is dependant on the cost of raw material, increase
in sugarcane support price without adequate |
|
| protection
to Sugar Industry in Sindh is also harming this vital economic sector of
rural Sindh, however, there is least botheration in |
|
| official circles. |
|
|
| The
availability of liquid resources in the country should also contribute to the
well being of the sector, which is still to materialize |
|
| in
our case. Patronage from Federal and Provincial government is necessary for
the revival of the industry on sounder footing i.e. |
|
| support
price of sugar to match the increasing manufacturing cost. |
|
|
| ACKNOWLEDGEMENT |
|
| We
would like to take this opportunity to convey our deep appreciation to the
shareholders, the workers, staff and officers of the |
|
| Company
for their patience, tolerance and forbearance, as well as the assistance and
cooperation to the management during these |
|
| hard days. |
|
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| We
would also like to thank our valued dealers, suppliers, financiers and
shareholders for their cooperation and the trust reposed |
|
| in our Company. |
|
|
| In
the end, let us pray to Almighty Allah to guide us in all our pursuits of
national development and for the betterment of your |
|
| organization,
Ameen. |
|
|
| CATEGORYWISE
SHAREHOLDING AS ON 30-09-2004 |
|
|
| SHAREHOLDERS |
|
NUMBER OF |
PERCENTAGE OF |
|
| CATEGORY |
|
SHARES HELD |
SHAREHOLDING |
|
| INDIVIDUALS
|
3.983.071 |
27.16 |
|
| DIRECTORS,
CEO & THEIR SPOUSE AND |
|
|
|
| MINOR
CHILDREN |
|
|
|
| Mr. Qazi Amjad Abid Abbasi |
|
5,924,762 |
40.4 |
|
| Mr. M. Arshad Mirza |
|
733,333 |
5 |
|
| Mrs. Husna Amjad Kazi |
|
24,000 |
0.16 |
|
| Mr. Ali Akber Junejo |
|
25,000 |
0.17 |
|
| Mr. Haji Sher Jmali |
|
30,700 |
0.21 |
|
|
|
|
|
| LIMITED
COMPANIES |
|
|
|
| M/s.
Asif Agencies |
|
15,400 |
0.11 |
|
| M/s.
Pak Grease Mfg. Co. (Pvt.) Ltd. |
|
9,500 |
0.06 |
|
| M/s.
General Chemical Ltd. |
|
5,000 |
0.03 |
|
| M/s.
Valika Art Fabrics Ltd. |
|
9,000 |
0.06 |
|
|
|
|
| FINANCIAL
INSTITUTIONS |
|
|
|
| M/s.
National Bank of Pakistan (Trustee Department) |
|
3,072,100 |
20.95 |
|
| M/s.
Habib Bank Limited |
|
2,000 |
0.01 |
|
| M/s.
Pakistan Industrial Credit Investment Corporation Limited |
228,100 |
1.56 |
|
| M/s.
Investment Corporation of Pak. |
|
290,000 |
1.98 |
|
|
|
|
| INSURANCE
COMPANIES |
|
|
|
| M/s.
Adamjee Insurance Co. Ltd. |
|
1,000 |
|
0.01 |
|
|
|
|
| INVESTMENT
COMPANIES |
|
|
|
| M/s.
Karachi Investment Co. (Pvt) Ltd. |
|
1,000 |
0.01 |
|
| M/s.
The Pakistan Fund |
|
312,700 |
2.13 |
|
|
| SIX
YEARS' REVIEW AT A GLANCE |
|
|
| Description |
|
2004 |
2003 |
2002 |
2001 |
2000 |
1999 |
|
| Trading results: |
|
|
|
| Turnoverr
(Net Sales) |
277,905 |
407,025 |
210,680 |
495,684 |
377,225 |
285,646 |
|
| Gross
profit / (loss) |
-36,798 |
1,152 |
-50,104 |
12,303 |
-21,512 |
-18,595 |
|
| Operating
(loss) / profit |
-57,863 |
8,207 |
-68,310 |
-9,452 |
-40,483 |
-33,952 |
|
| (Loss)
/ profit before taxation |
54,684 |
-39,517 |
-152,999 |
-50,245 |
-82,663 |
-58,493 |
|
| (Loss)
/ profit after taxation |
53,294 |
-41,552 |
-154,175 |
-52,700 |
-83,347 |
-59,851 |
|
| Balance Sheet: |
|
|
|
| Shareholder
equity |
146,667 |
146,667 |
146,667 |
146,667 |
146,667 |
146,667 |
|
| Surplus
on Revaluation of F. Assets |
90,189 |
96,154 |
186,826 |
186,826 |
186,826 |
- |
|
| Accumulated
(loss) / profit |
-909,023 |
-971,495 |
-955,225 |
-801,049 |
-748,349 |
-665,002 |
|
| Property,
plant & equipment |
365,936 |
382,733 |
405,320 |
431,123 |
454,391 |
289,322 |
|
| Other
long term assets |
769 |
769 |
1,409 |
2,034 |
3,297 |
3,147 |
|
| Current assets |
|
72,095 |
123,346 |
115,958 |
125,649 |
115,966 |
108,088 |
|
| Current liabilities |
|
283,524 |
451,128 |
363,406 |
350,289 |
288,121 |
188,782 |
|
| Long
term liabilities |
827,444 |
784,394 |
781,013 |
676,074 |
700,389 |
730,111 |
|
| Significant
results: |
|
|
| Gross
profit / (loss) ratio % |
-13.241 |
0.283 |
-23.78 |
2.48 |
-5.7 |
-6.51 |
|
| (Loss)
/ profit before tax ratio % |
19,677 |
-9.709 |
-72.62 |
-10.14 |
-21.91 |
-20.48 |
|
| Current ratio |
|
0.254 |
0.273 |
0.32 |
0.36 |
0.4 |
0.57 |
|
| Earning per share |
|
3.63 |
-2.83 |
-10.51 |
-3.59 |
-5.68 |
-4.08 |
|
|
| STATEMENT
OF ETHICS & BUSINESS PRACTICES |
|
| The
Company's policy is to conduct business with honesty and integrity and be
ethical in all its dealings, showing |
|
| respect
for the interest of those with whom it has a relationship. |
|
|
| The
Company complies with all laws and regulations. The Company believes in fair
competition and supports |
|
| appropriate
competition laws. |
|
|
| The
Company does not support any political party, not contributes to the funds of
group whose activities promote |
|
| party
interests. Company will promote its legitimate business interest through
trade associations. |
|
|
| The
Company is committed to provide products, which consistently offer value in
terms of price and quality and |
|
| are
safe for their intended use, to satisfy customer needs and expectations. The
Company is committed to run its |
|
| business
in an environmentally sound and sustainable manner. The Company recognizes
its social responsibility |
|
| and
will contribute to community activities as a good corporate citizen. |
|
|
| The
Company believes in and fully adheres to the reliability of financial
reporting and transparent transactions. |
|
|
| The
Company recruits and promotes employees on merit, and is committed to provide
safe and healthy working |
|
| conditions
for all its employees. It also believes in maintaining good communication
with employees. |
|
|
| The
Company is committed to preservation of the environment. |
|
|
| It
is the responsibility of the Board to ensure that the above principles are
complied with and the internal audit |
|
| committee
constituted by the Board will support them in the compliance. |
|
|
| Arrangements
are being made for orientation courses for its Directors during the year to
apprise them of their duties |
|
| and
responsibilities. |
|
|
| The
Board has approved appointment of CFO, Company Secretary and Head of Internal
Audit, including their |
|
| remuneration
and terms and conditions of employment, as determined by the CEO. |
|
|
| The
directors' report for this year has been prepared in compliance with the
requirements of the Code and fully |
|
| describes
the salient matters required to be disclosed. |
|
|
| The
financial statements of the Company were duly endorsed by CEO and CFO before
approval of the Board. |
|
|
| The
directors, CEO and executives do not hold any interest in the shares of the
Company other than that disclosed in |
|
|
| the
pattern of shareholding. |
|
|
| The
Company has complied with all the corporate and financial reporting
requirements of the Code. |
|
|
| The
Board has formed an audit committee. It comprises of 3 (three) members, of
whom 2 (two) are non-executive |
|
| directors
including the Chairman of the Committee. |
|
|
| The
meetings of the audit committee were held at least once every quarter prior
to approval of interim and final |
|
| results
of the Company and as required by the Code. The terms of reference of the
committee have been formed and |
|
| advised
to the committee for compliance. |
|
|
| The
Board has set-up effective internal audit function. |
|
|
| The
statutory auditors of the Company have confirmed that they have been given a
satisfactory rating under the |
|
| quality
control review programme of the Institute of Chartered Accountants of
Pakistan, that they or any of the |
|
| partners
of the firm, their spouses and minor children do not hold shares of the
Company and that the firm and all its |
|
| partners
are in compliance with International Federation of Accountants (IFAC)
guidelines on code of ethics as |
|
| adopted
by Institute of Chartered Accountants of Pakistan. |
|
|
| The
statutory auditors or the persons associated with them have not been
oppointed to provide other services except |
|
| in
accordance with the listing regulations and the auditors have confirmed that
they have observed IFAC guidelines |
|
| in this regard. |
|
|
| We
confirm that all other material principles contained in the Code have been
complied with. |
|
|
| REVIEW
REPORT TO THE MEMBERS ON STATEMENT |
|
| OF
COMPLIANCE WITH BEST PRACTICES OF |
|
| CODE
OF CORPORATE GOVERNANCE |
|
| We
have reviewed the Statement of Compliance with the best practices contained
in the Code of Corporate Governance |
|
| prepared
by the Board of Directors of Al-Asif Sugar Mills Limited to comply with the
Regulations No. 37 and Chapter XIII |
|
| of
Listing Regulations of the Karachi and Lahore Stock Exchanges respectively
where the Company is listed. |
|
|
| The
responsibility for compliance with the Code of Corporate Governance is that
of the Board of Directors of the Com- |
|
| pany.
Our responsibility is to review, to the extent where such compliance can be
objectively verified, whether the |
|
| Statement
of Compliance reflects the status of the Company's compliance with the
provisions of the Code of Corporate |
|
| Governance
and report if it does not. A review is limited primarily to inquiries of the
Company personnel and review of |
|
| various
documents prepared by the Company to comply with the Code. |
|
|
| As
part of our aduit of financial statements we are required to obtain an
understanding of the accounting and internal |
|
| control
systems sufficient to plan the audit and develop an effective audit approach.
We have not carried out any special |
|
| review
of the internal control system to enable us to express an opinion as to
whether the Board's statement on internal |
|
| control
covers all controls and the effectiveness of such internal controls. |
|
|
| Based
on our review nothing has come to our attention which causes us to believe
that the Statement of Compliance does |
|
| not
appropriately reflect the Company's compliance, in all material respects,
with the best practices contained in the Code |
|
| of
Corporate Governance as applicable for the year ended September 30th, 2004. |
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
| We
have audited the annexed balance sheet of AL-ASIF SUGAR MILLS LIMITED as at
September 30,2004 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: |
|
|
| 1. The Company continued to incur oprating
losses and upto September 30,2004 its accumulatd losses amounts |
|
| to
Rs. 909.023 million (2003: Rs. 971.495 million) which has resulted in the net
capital deficiency of Rs. 762.356 |
|
| million
(2003: Rs. 824.828 million). Its current liabilities exceeds current assets
by Rs. 211.428 million (2003: Rs. |
|
| 327.782
million). These conditions indicate the existence of a material uncertainty,
which cast significant |
|
| doubt
on the company's ability to continue as a going concern. The going concern
assumption use in the |
|
| preparation
of these financial statements is dependent on the ultimate outcome of the
mitigating factors men- |
|
| tioned
in note no. 1 to the financial statements. |
|
|
| 2. We refer to the matter of remaining long
term liability of Rs. 270.122 million (2003: Rs. 276.140 million) (note |
|
| 5.2.8)
which is pending being under discussion with previous management for final
settlement since the last |
|
| six
years. We have not been provided with information and explanation to
ascertain the final-outcome. |
|
|
| 3. We did not receive confirmations in
respect of loans from Bankers Equity Limited, United Bank Limited, |
|
| Investment
Corporation of Pakistan of Pakistan Ltd., Industrial Development Bank of
Pakistan Ltd., Habib |
|
| Bank
Limited, National Bank of Pakistan Limited and other financial institutions.
(Refer note no. 5) |
|
|
| (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, investment made and the expenditure incurred during
the year were in accor- |
|
| dance
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,
except for |
|
| the
effect of the matters stated in para 1 to 3 above and note 10 and to the
extent to which these may affect |
|
| the
financial results of the company, the Balance Sheet, Profit & 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
Companies Ordi- |
|
| nance,
1984, in the manner so required and respectively give a true and fair view of
the state of the |
|
| company's
affairs as at September 30,2004 and of the profit, 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. |
|
|
| (e) Without qualifying our opinion we draw
attention to note no. 1.3 and 5.2.9 to the financial statements. The |
|
| company
has reversed liability of Habib Bank Limited, United Bank Limited and
National Bank Limitd |
|
| (formerly
Mehran Bank Limited) upon receipt of implementation letter from these banks
and making |
|
| down
payment of ten percent. The income arising from this adjustment (note 22) is
dependent on meeting |
|
| of
the conditions about payment of twelve quarterly installments on due dates by
the Company as has |
|
| been
laid down in the letter issued by the Committee. |
|
|
| BALANCE
SHEET AS AT |
|
|
|
|
Note |
2004 |
2003 |
|
|
|
|
Rupees |
Rupees |
|
| SHARE CAPITAL |
|
|
|
| Authorised |
|
|
|
| 50,000,000
ordinary shares |
|
|
500,000,00 |
