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DATA AGRO LIMITED
ANNUAL REPORT 2004
Chief Executive:		Mr. Faaiz Rahim Khan
Directors:		Mr. Umar Sadik
		Mr. Shamim Ahmad Khan
		Mr. Muhammad Ayub Khan
		Mr. Asif Rahim Khan
		Mrs. Badar Hussain
		Mr. Sohail Ahmad Khan
Company Secretary:		Mr. Usman Khalil
Audit Committee:		Mr. Faaiz Rahim Khan (Chairman)
		Mr. Shamim Ahmad Khan (Member)
		Mr. Muhammad Ayub Khan (Member)
Auditors:		M/s Mansha Mohsin Dossani Khan & Co.
		Chartered Accountants
		3rd. Floor Sharjah Centre,
		62-Shadman Market, Lahore.
Bankers:		AI-Baraka Islamic Bank B.S.C. (E.G.)
		Habib Bank Limited
		Allied Bank of Pakistan Limited
		The Bank of Punjab
		Muslim Commercial Bank Ltd.
		P1CIC Commercial Bank Ltd. /
Legal Advisor:		Ashtar AN & Associates
Registered Office:		3-A, Race View, Jail Road,
		Lahore.
Factory:		Khanewal -Kabirwala Road,
		District Khanewal.
DIRECTOR'S REPORT
The Directors of your company are pleased to present the 1 2th annual report alonq with the audited accounts for
the year ended June 30, 2004.
Performance Review
In this year the company has processed seeds of cotton, wheat, paddy etc. There is a considerable increase in
the capacity utilization as compared to last year.				2004	2003
				(M.Ton)	(M.Ton)
Production				4,746	2,802
Financial Results
The summary of the financial results is being furnished hereunder for a quick glance.
				2004	2003
				(Rupees)	(Rupees)
Sales				25,941,834	20,947,064
Cost of sale				17.928625	17,086,460
Gross profit				8,013,209	3,887,604
Less:
Operating expenses				4,606,558	4,759,130
Financial & other charges				753,972	33,871
Other income				543,761	120,099
Profit before taxation				3,196,440	-785,298
Taxation (Including impact of deferred taxation )				7,213,896	-248,536
Profit/ (loss) after taxation				10,410,336	-1,033,834
Unappropriated profit/floss) broughtforward				-66,731,151	-66,697,317
				-56,320,817	-66,731,151
Transferfrom surplus on revaluation of fixed assets				19,828,074	-
Unappropriated profit/floss) carried forward				-36,492,743	-66,731,151
Auditors
The Code of Corporate Governance requires all listed companies to change their external auditors after every
five years. In the light of Code, the present auditors, M/s. Mansha Mohsin Dossani Khan & Company, Chartered
Accountants, retires and having completed five years as external auditors are not eligible for reappointment.
The audit committee thus has recommended the appointment of Messrs Sarwars, Chartered Accountants.
Staff Relations
The company continuous to benefit from the efforts and dedication of all its employees. The directors
are pleased to record their appreciation for the hard work and devotion to duty by all cadres of
employee.
Acknowledgment
I want to thank our employees, customers, and suppliers for their continued support and faith in the company. Ail
our shareholders must closely examine the result and see that we are making progress in the right direction. 1
would like to express our gratitude to share holders who have patiently waited for the revival of the company.
STATEMENT OF COMPLIANCE WITH CODE OF
CORPORATE GOVERNANCE
This statement is being presented jo comply with the Code of Corporate Governance contained in listing
regulations of the stock exchanges where the company's share are listed, for the purpose of establishing a
framework of good governance, where by a listed company is managed in compliance with the best practices of
corporate governance.
The company has applied the principal contained in the Code in the following manner:
1 . The election of the board of directors was held before the Code of Corporate Governance became applicable.
2. None of the members of the board are director in more than ten listed companies.                         ,
3. All the directors of the companies are registered as tax payers and none of them has defaulted in payment of
any loan to a banking company, DPI, or an NBFI or, being a member of a Stock Exchange, has been declared /
as a defaulter by that Stock Exchange.
4. The company has prepared "Statement of Ethics and Business Practices" which has been singed by all
directors and employees.
5. The board has developed a "Vision /Mission Statement" over all corporate strategy and significant policies
.of the company.
appointment and determination of remuneration and terms and conditions of employmen of the CEO and
other executive directors, have been taken by the board.
7. The meetings of the board where presided over by the chairman and the board meet at least once every
quarter, written notices of the board meetings , along with the agenda and working papers, where normally
circulated at least seven days before the meetings. The minutes of the meeting were appropriately recorded
and circulated. 8. A board is in the process of arranging orientation courses for its directors to further appraise them of their
duties and responsibilities.
9. The director's report for the year has been prepared in compliance with the requirements of the Code and fully
described the salient matters required to be disclosed.
10. The financial statements of the company were duly endorsed by the CEO and CFO before approval of the
board.                             ,
11. The directors, CEO and executives do not hold any interest in the share of the company other than that
disclosed in the pattern of shareholdings.
12. The company has complied with all the corporate and financially reporting requirements of the Code.
1 3. The board has formed an audit committee. It compromise of three members, of which all are non executive
directors including chairman of the committee.
14. The meeting of the audit committee are planned to be held at least once every quarter prior to approval of
interim and final result of the company as required by the Code.
1 5. The statutory auditors of the company have confirmed that they have been given a satisfactory rating under
the quality controlled review program of the Institute of Chartered Accountants of Pakistan, that they or
any of the partner of the firrn, their spouses and the minor children do not hold shares of the company and the
firms and allits partners are in compliance with International Federation of Accountants
(IFAC) guidelines on Code of ethics and adopted by Institute of Chartered Accountants of Pakistan.
16. The statutory auditors or the persons associated with them have been appointed to provide other services
except in accordance with the listing regulations and the auditors have confirmed that they have observed
IFAC guidelines in this regards.
1 7.,We confirm that all other material principles contained in the Code of Corporate Governance have been
complied with.
PROFIT AND LOSS ACCOUNT
			2004	2003	2002	2001	2000	1999	1998
			Rupees	Rupees	Rupees	Rupees	Rupees	Rupees	Rupees
Sales			25,941,834	20,974,064	20,403,341	24,057,482	28,745,367	30,053,426	25,635,194
Cost of Sales			17,928,625	17,086,460	16,490,176	18,402,781	26,450,405	40,392,134	18,493,782
Gross Profit/ (Loss)			8,013,209	3,887,604	3,913,165	5,654,701	2,294,962	-10,338,708	7,141,412
Operating Expenses			4,606,558	4,759,130	4,578,814	4,924,587	5,747,301	6,100,636	4,158,800
Administrative			2,418,102	2,537,363	2,619,912	2,799,414	2,752,671	3,553,567	2,102,475
Selling			2,188,456	2,221,769	1,958,902	2,125,173	2,994,630	2,547,069	2,056,325
Operating Profit/ (Loss)			3,406,651	-871,526	-665,649	730,114	-3,452,339	-16,439,344	2,982,612
Other Income			543,761	120,099	279,709	413,299	376,255	1,047,642	331,070
Financial Charges and other charges			753,972	33,871	326,788	463,933	3,021,821	9,089,283	8,372,389
Profit / (Loss) for the year before taxation			3,196,440	-785,298	-712,728	679,480	-6,097,905	-24,480,985	-5,058,707
Unusual Items			-	-	-	-	-	-	11,634,334
Provision for Taxation			3,196,440 7,213,895	(785,298) (248.536)	(712,728) (112,483)	679,480 197,355	(6,097,905) (178,421)	(24,480,985) (50,089)	6,575,627
Profit / (Loss) for the year after taxation			10,410,335	-1,033,834	-825,211	876,835	-6,276,326	-24,531,074	6,575,627
Unappropriated Profit / (Loss) Brought forward			-66,731,151	-65,697,317	-64,872,106	-65,748,941	-59,472,615	-34,941,541	-41,517,000
Unappropriated Profit / (Loss) Carried forward			-36,492,743	-66,731,151	-65,697,317	-64,872,106	-65,748,941	-59,472,615	-34,941,373
STATEMENT OF ETHICS AND BUSINESS PRACTICES
Data Agra Limited was established with an aim of producing quality delinted cotton seed for its growers. The
following core values have been incorporated in our system to promote ethical business practices while
producing quality products.
THE QUALITY OF PRODUCT
We strive to produce the best quality delinted cotton seed for our customers. We continuously update our selves
with technological advancements in seed delinting technology and strive to implement these changes in our
company. We maintain all relevant technical and professional standards to be compatible with the requirements
of the trade.
EMPLOYEES
Recruitment of personnel on merit offering training and career development, equal opportunities of growth, no
discrimination or harassment and reward for achievements. Improved working conditions, ensuring safety and
health. Terminal benefits as per policy on retirement or redundancy.
be avoided and disclosed where it exists and guidance sought.
CUSTOMER RELATION
Ensure Customer satisfaction by providing quality products at competitive prices and ensuring, after sale service
and advice. Prompt, efficient attention to complaints is integral to our client care commitment.
SHARE HOLDERS, FINANCIAL INSTITUTIONS & CREDITORS
Protection of investment made in the company. We focus- on maximizing long term share holder's value through
strong financial performance and returns, disciplined and profitable expansion. A commitment to accurate and
timely communication on achievements arib prospects.
SUPPLIERS
Prompt settling of bills. Co-operation to achieve qualify and efficiency, no bribery or excess hospitality accepted
or given.
SOCIETY/COMMUNITY
Compliance with the spirit of laws. Timely payment of all Government taxes and dues. Eliminate the release of
substance that may cause environmental damage. Financial assistance for promoting education and social
activities including games and. donations charity to deserving.
GENERAL
The Company shall neither support any political party nor contribute funds to groups or associations whose
activities promote political interest through trade association.
IMPLEMENTATION
Company   Board  to   ensure   implementation   of  these   codes,   regular  monitoring,   review  for
modification /amendment where necessary.
BALANCE SHEET AS
			Notes	2004	2003
CAPITAL & LIABILITIES				(Rs.)	(Rs.)
SHARE CAPITAL & RESERVES
Authorized capital
5,000,000 (2803: 5,000,000) ordinary shares				50,000,000	50,000,000
ofRs. 10 each
Issued, subscribed and paid up capital
4,000,000 ordinary shares of Rs. 10 each fully
paid in cash				40,000,000	40,000,000
Unappropriated profitless)				-36,492,743	-86,731,151
				3,507,257	-26,731,151
SURPLUS ON REVALUATION
OF FIXED ASSETS			3	13,131,150	32,959,224
NON-CURRENT LIABILITIES
Long term finance			4	40,378,943	39,878,943
Redeemable capital			5	-	-
Deferred Liabilities			6	803,042	-
CURRENT LIABILITIES
Trade and other payables			7	5,198,983	4,679,970
Current portion of redeemable capital				-	3,500,758
Provision for taxation			8	139,804	115,337
				5,338,787	8,296,065
CONTINGENCIES AND COMMITMENTS			9	-	-
				63,159,179	54,403,080
PROFIT & LOSS ACCOUNT
FOR THE YEAR ENDED JUNE 30, 2004
			Notes	2004                      2003 (Rs.)                     (Rs.)	2003
SALES			18	25,941,834	20,974,064
COST OF SALES			19	17,928,625	17,086,460
Gross profit				8,013,209	3,887,604
OPERATING EXPENSES
Administrative & general expenses			20	2,418,102	2,537,363
Selling & distribution expenses			21	2,188,456	2,221,767
				4,606,558	4.759.130
Operating profit/(loss)				3,406,651	-871,526
Financial and other charges			22	753,972	33,871
Taxation			24	7,213,985	-248,536
Profit / (loss) after taxation				10,410,335	-1,033,834
Unappropriated profit / (loss) brought forward				-66,731,151	-65,697,317
				-56,320,817	-66,731,151
Transfer from surplus on revaluation of fixed
assets (Note#3)				19,828,074	-
Unappropriated profit / (loss) carried forward				-36,492,743	-66,731,151
STATEMENT OF CHANGES IN EQUITY
AS AT JUNE 30,2004
PARTICULARS		SHARE CAPITAL (Rs.)	SURPLUS ON REVALUATION	UNAPPROPRIATED PROFIT/(LOSS) (Rs.)	TOTAL (Rs.)
Balance as at June 30, 2002		40,000,000	32,959,224	-65,697,317	7,261,907
Profit / (loss) for the year		-	.	(1,033,834-)	-1,033,834
Balance as at June 30, 2003		40,000,000	32,959,224	-66,731,151	6,228,073
Profit/(loss) for the year				10,410,335	10,410,335
Transferred from revaluation surplus
Prior		-	-18,434,731	.18,434,731	-
Current		-	-1,393,343	1,393,343-	-
Balance as at June 30, 2004		40,000,000	13,131,150	-36,492,743	16,638,407
The   company opted second proviso to sub section 2 of section 235 of the Company
Ordinance, 1984 read with SRO45(1 )/2003 dated January 13, 2003 issued by the Securities
and Exchange Commission of Pakistan. The company hasl transferred ofRs. 1 9,828, 074/-
(Including Rs.18,434,731/- relating to prior years) as incremental depreciation from
surplus on revaluation of fixed assets to unappropriated profit/(loss). Had there been no
change in the accounting policy, the unappropriated loss of the company would have been
higher by Rs 19. 828, 074/-. Proforma statement showing accumulative effects of this
change in policy under the allowed alternative treatment of IAS 8 (Net Profit or Loss
for the Period, Fundamentals Errors and changes in accounting Policies) is given in note
no. 19.2.
Stocks, stores and spares
Stock in trade is valued at lower of cost and net realizable value. Cost of Major stock items
is determined as follows: Stores, spares and loss tools.At moving average cost (obsolete items«at nil
value)
Raw material:                                        At annual average cost.
Finished goods and work in progress:     Comprised of direct material, labour and
appropriate manufacturing over heads.