| Al-Abbas Sugar Mills Limited |
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| Annual
Report 1998-99 |
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| CONTENTS |
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| Company
Information |
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| Notice
of Annual General Meeting |
|
| Directors'
Report |
|
| Pattern
of Share Holding |
|
| Auditors'
Report |
|
| Balance Sheet |
|
|
| Profit
& Loss Account |
|
| Cash
Flow Statement |
|
| Notes
to the Accounts |
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|
|
| COMPANY
INFORMATION |
|
|
| BOARD
OF DIRECTORS |
HAJI ABDUL GHANI |
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|
Chairman |
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|
MR. SHUNAID QURESHI |
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|
Chief Executive |
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|
MR. MUHAMMAD IQBAL USMAN |
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|
MR. TARIQ USMAN BHATTI |
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MR. MUHAMMAD AYOUB |
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|
MR. KHALID USMAN BHATTI |
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MR. ABDUL SATTAR RAJA |
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MR. DURAID QURESHI |
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|
MR. ASIM GHANI |
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| COMPANY
SECRETARY |
MR. MUHAMMAD SULEMAN
KANJIANI |
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|
| AUDITORS |
|
HAROON ZAKARIA & CO |
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|
Chartered Accountants |
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| LEGAL
ADVISOR |
MR. MUHAMMAD MAZHAR ALI |
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|
Advocate |
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| REGISTERED
OFFICE |
4th Floor, P.N.S.C.
Building, |
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|
Moulvi Tamizuddin Khan
Road, |
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|
Karachi. |
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|
Tel: 5611895-96 &
5611724 |
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|
Fax: 92-21-5610778 |
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| MILL |
|
Mirwah Gorchani, |
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|
Distt. Mirpurkhas. |
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| NOTICE
OF THE NINETH ANNUAL GENERAL MEETING |
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| NOTICE
is hereby given that the Nineth Annual Meeting of the Company will be held on
Saturday, |
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| the
25th March 2000 at 1530 hours at Raffia Choudri Memorial Centre, Ground
Floor, Sidco Avenue |
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| Centre,
Karachi to transact the following business: |
|
|
| 1.
To confirm the minutes of last Annual General Meeting held on 24th March,
1999. |
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|
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| 2.
To receive and adopt the Audited Accounts for the year ended 30th September,
1999 together |
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| with
the Directors' and Auditors' Reports thereon. |
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|
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| 3.
To appoint Auditors of the Company for the year 1999-2000 and to fix their
remuneration. |
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| The
retiring Auditors Messrs. Haroon Zakaria & Co. Chartered Accountants
being eligible, |
|
| have
offered themselves for re-appointment. |
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|
|
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| 4.
To approve the payment of cash dividend at the rate of 15% (Rupee 1.50 per
share) as |
|
| recommended
by the Directors. |
|
|
| 5.
To transact any other matter with the permission of the chair. |
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|
By Order of the Board. |
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|
MUHAMMAD SULEMAN KANJIANI |
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| Karachi,
Dated 24th February, 2000 |
|
Company Secretary |
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|
| NOTES: |
|
|
| 1.
The Share Transfer Books of the Company will remain closed and no transfer of
shares will |
|
| be
accepted for registration from 16th March, 2000 to 25th March, 2000 (both
days inclusive). |
|
|
| 2.
A member entitled to attend and vote at the General Meeting is entitled to
appoint a proxy |
|
| to
attend and vote on his behalf. Proxies in order to be valid must be received
at the Registered |
|
| Office
of the Company not later that 48 hours before the time of the Meeting. A
proxy must |
|
| be
a member of the Company. |
|
|
| 3.
Shareholders are advised to notify the Company of any change in their address
immediately |
|
| to
ensure prompt delivery of mails. |
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|
| DIRECTORS'
REPORT |
|
|
| The
Board of Directors of A1-Abbas Sugar Mills Limited takes pleasure in
presenting the 9th Annual |
|
| Report
of your Company together with the Audited Accounts for the year ended
September 30, 1999. |
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|
| OPERATING
RESULTS FOR THE YEAR ENDED SEPTEMBER 30, 1999 |
|
|
| The
year of 1999 was a difficult year for the country as due to recession
economic activities showed |
|
| marked
reduction in over all economy of the country. However, by the Grace of
Almighty Allah |
|
| your
company earned historical profit before taxation. Not only this but all other
figures showed |
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| marked
improvement over last year. |
|
|
| By
the Grace of Almighty Allah your company continued its policy to keep Plant
and Machinery |
|
| at
highest possible level. Despite charge of depreciation of Rs. 31 Million
Fixed Assets have shown |
|
| a
net increase of Rs. 8.5 million, whereas the gross increase is Rs. 39.5
million which is clear |
|
| indication
that the management has continued its policy to keep operation of company
viable and |
|
| efficient
on very long-term basis. On the liability side the company paid Rs. 67
Million against |
|
| Long
Term Loans to Financial Institutions and Insha Allah you will see in the next
Annual Report |
|
| that
all Long Term Finances obtained for sugar plant will be paid off. |
|
|
| A
summary of financial/production figures is given as under: |
|
|
|
|
|
1999 |
1998 |
|
|
|
|
| Net
Profit before taxation |
|
Rs. 88,212,204 |
Rs. 37,190,096 |
|
| Provision
for taxation |
|
Rs. 29,166,340 |
Rs. 2,721,213 |
|
|
|
-------------------- |
-------------------- |
|
| Profit
after taxation |
|
Rs. 59,045,864 |
Rs. 34,468,883 |
|
| Prior
year adjustment |
|
-- |
Rs. 2,078,227 |
|
| Un-appropriated
profit brought forward |
|
Rs. 581,314 |
Rs. 1,396,504 |
|
|
|
-------------------- |
-------------------- |
|
| Profit
available for appropriation |
|
Rs. 59,627,178 |
Rs. 37,943,614 |
|
| Appropriations: |
|
|
|
|
| Transfer
to General Reserve |
|
Rs. 30,000,000 |
Rs. 20,000,000 |
|
| Proposed
Dividend @ 15% (1998: 10%) |
|
Rs. 26,043,450 |
Rs. 17,362,300 |
|
|
|
-------------------- |
-------------------- |
|
| Un-appropriated
profit carried forward |
|
Rs. 3,583,728 |
Rs. 581,314 |
|
|
|
-------------------- |
-------------------- |
|
|
|
|
| Season
Started on |
|
|
04-11-1998 |
06-11-1997 |
|
| Season
closed on |
|
|
15-04-1999 |
04-04-1998 |
|
| Days worked |
|
|
163 |
150 |
|
| Cane
Crushed (Tons) |
|
|
709,501 |
531,171 |
|
| Sugar
Recovery (%) |
|
|
9.08 |
10.38 |
|
| Sugar
Production (Tons) |
|
|
64,421 |
55,161 |
|
|
|
|
|
| MAJOR
ACHIEVEMENT |
|
|
|
| Distillery
Project |
|
| As
mentioned in our previous Half Yearly Report your management in order to
diversify its |
|
| production
and to keep the company safe at the maximum possible limit from the
disadvantage |
|
| of
being single line product is successfully implementing its Distillery
Project, which is at very |
|
| advance
stage of completion. |
|
|
| Credit Rating |
|
| The
Pakistan Credit Rating Agency (Private) Limited (PACRA) has assigned the long
term rating |
|
| of
BBB + (triple B plus) and short term rating of A2 (single A two). |
|
|
| FUTURE
OUT LOOK |
|
| Due
to reduction in sowing of cane, dry weather, bad crop and devastating cyclone
Sugar Cane |
|
| Crop
showed very discouraged performance. It is anticipated that over all
availability of cane is |
|
| less
by more than 25% as compared to last year which is unfortunate and will have
very serious |
|
| effect
on the profitability of the Sugar Industry. But Insha Allah with the help of
Allah and hard |
|
| work
of your management and staff we will manage maximum crushing and good
possible financial |
|
| results. |
|
|
| A
brief summary of crushing/production for the current season as on 21-02-2000
is given below: |
|
|
| Cane
crushed (Tons) |
|
481,955 |
|
| Sugar
Recovery (%) |
|
9.40 |
|
| Sugar
Production (Tons) |
|
44,860 |
|
|
| PATTERN
OF SHARE HOLDING |
|
| The
pattern of share holding is provided on page No.6. |
|
|
| AUDITORS |
|
| Messers.
Haroon Zakaria & Company, Chartered Accountants, retiring auditors of the
company |
|
| offer
themselves for re-appointment for the year 1999-2000. |
|
|
| At
the end the management record appreciation to all workers and non-management
staff, banks |
|
| and
financial institutions for their co-operation and contribution towards the
betterment of the |
|
| company. |
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|
|
|
For and on behalf of Board of Directors |
|
|
|
of |
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|
|
AL-ABBAS SUGAR MILLS LIMITED |
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|
|
|
|
|
|
|
SHUNAID QURESHI |
|
| Karachi:
the 24th February, 2000 |
|
Chief Executive |
|
|
|
| PATTERN
OF SHARE HOLDING |
|
| AS
AT SEPTEMBER 30, 1999 |
|
|
|
|
|
| NUMBER OF |
SHARE
HOLDINGS |
TOTAL |
|
| SHARE |
From |
To |
SHARES HELD |
|
| HOLDERS |
|
|
|
|
|
|
|
| 477 |
1 |
100 |
47,700 |
|
| 2,946 |
101 |
500 |
1,391,200 |
|
| 82 |
501 |
1,000 |
81,300 |
|
| 113 |
1,001 |
5,000 |
293,900 |
|
| 26 |
5,001 |
10,000 |
189,900 |
|
| 5 |
10,001 |
15,000 |
67,600 |
|
| 10 |
15,001 |
20,000 |
188,400 |
|
| 5 |
20,001 |
25,000 |
119,000 |
|
| 1 |
25,001 |
30,000 |
27,000 |
|
| 2 |
30,001 |
35,000 |
67,500 |
|
| 2 |
35,001 |
40,000 |
77,700 |
|
| 1 |
40,001 |
45,000 |
42,400 |
|
| 3 |
45,001 |
50,000 |
147,900 |
|
| 2 |
50,001 |
55,000 |
101,800 |
|
| 3 |
55,001 |
60,000 |
169,900 |
|
| 1 |
65,001 |
70,000 |
68,000 |
|
| 2 |
80,001 |
85,000 |
167,000 |
|
| 1 |
90,001 |
95,000 |
90,500 |
|
| 2 |
95,001 |
100,000 |
199,300 |
|
| 1 |
100,001 |
105,000 |
104,000 |
|
| 1 |
130,001 |
135,000 |
132,500 |
|
| 1 |
195,001 |
200,000 |
200,000 |
|
| 1 |
255,001 |
260,000 |
257,500 |
|
| 1 |
540,001 |
545,000 |
544,100 |
|
| 1 |
555,001 |
560,000 |
556,182 |
|
| 1 |
1,040,001 |
1,045,000 |
1,041,750 |
|
| 2 |
1,145,001 |
1,150,000 |
2,300,000 |
|
| 1 |
1,395,001 |
1,400,000 |
1,399,668 |
|
| 1 |
1,845,001 |
1,850,000 |
1,847,168 |
|
| 1 |
2,545,001 |
2,550,000 |
2,546,232 |
|
| 1 |
2,895,001 |
2,900,000 |
2,895,200 |
|
| ------------------ |
|
|
------------------ |
|
|
| 3,697 |
|
|
17,362,300 |
|
|
| ========== |
|
========== |
|
|
|
| Categories
of Shareholders |
|
Numbers |
Shares Held |
Percentage |
|
|
| Individuals |
|
3,672 |
11,197,800 |
64.49 |
|
| Insurance
Companies |
|
2 |
2,500 |
0.01 |
|
| Investment
Companies |
|
1 |
1,150,000 |
6.62 |
|
| Joint
Stock Companies |
|
11 |
743,900 |
4.28 |
|
| Financial
Institutions |
|
8 |
4,162,600 |
23.99 |
|
| Modarabas |
|
1 |
500 |
0.00 |
|
| Charitable Trust |
|
1 |
100,000 |
0.58 |
|
| Other |
|
1 |
5,000 |
0.03 |
|
|
|
------------------ |
------------------ |
------------------ |
|
| Total |
|
3,697 |
17,362,300 |
100.00 |
|
|
|
========== |
========== |
========== |
|
|
|
| AUDITORS'
REPORT |
|
|
| We
have audited the annexed balance sheet of AL-ABBAS SUGAR MILLS LIMITED as at |
|
| September
30, 1999 and the related Profit and Loss Account 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 purpose of our audit and, after due verification thereof, 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 thereof
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 of our information and according to the
explanations given to |
|
| us,
the balance sheet, profit and loss account and cash flow statement, together
with the notes |
|
| forming
part thereof, 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 September 30, 1999 and of the Profit and the cash flow statement 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 in the Central Zakat Fund established under
Section |
|
| 7
of that Ordinance. |
|
|
|
|
|
|
|
|
HAROON ZAKARIA & COMPANY |
|
| Karachi:
24th February, 2000 |
|
Chartered Accountants |
|
|
|
|
|
| BALANCE
SHEET AS AT SEPTEMBER 30, 1999 |
|
|
|
|
1999 |
1998 |
|
|
NOTES |
Rupees |
Rupees |
|
|
|
|
| SHARES
CAPITAL AND RESERVES |
|
|
| AUTHORISED
CAPITAL |
|
|
|
| 17,500,000
Ordinary Shares of Rs. 10/- each |
|
175,000,000 |
175,000,000 |
|
|
|
|
========== |
========== |
|
| ISSUED,
SUBSCRIBED AND PAID-UP CAPITAL |
3 |
173,623,000 |
173,623,000 |
|
| GENERAL
RESERVE |
|
4 |
180,000,000 |
150,000,000 |
|
| UN-APPROPRIATED
PROFIT |
|
|
3,583,728 |
581,314 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
357,206,728 |
324,204,314 |
|
| REDEEMABLE
CAPITAL |
|
5 |
43,571,037 |
118,546,973 |
|
| LONG
TERM LOAN |
|
6 |
10,295,000 |
-- |
|
| DEFERRED
LIABILITIES |
|
7 |
104,946,936 |
90,270,480 |
|
|
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
| Current
Portion of Redeemable Capital |
|
8 |
74,975,936 |
67,559,800 |
|
| Short
Term Finances |
|
9 |
20,000,000 |
110,000,000 |
|
| Creditors,
Accrued & Other Liabilities |
|
10 |
71,063,189 |
37,688,870 |
|
| Provision
for Taxation |
|
|
21,351,416 |
429,136 |
|
| Proposed
Dividend |
|
|
26,043,450 |
17,362,300 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
213,433,991 |
233,040,106 |
|
| CONTINGENCIES
& COMMITMENTS |
|
11 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
729,453,692 |
766,061,873 |
|
|
|
|
|
========== |
========== |
|
|
| TANGIBLE
FIXED ASSETS |
|
|
|
| Operating
Fixed Assets |
|
12 |
546,335,061 |
537,786,824 |
|
| Capital
Work-in-Progress |
|
13 |
32,986,610 |
24,821,244 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
579,321,671 |
562,608,068 |
|
|
|
|
|
| LONG
TERM LOANS |
|
14 |
705,756 |
1,123,958 |
|
| LONG
TERM DEPOSITS & DEFERRED COST |
|
15 |
788,052 |
446,052 |
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Stores,
Spares & Loose Tools |
|
16 |
51,309,686 |
51,415,185 |
|
| Stock-in-Trade |
|
17 |
8,158,527 |
30,908,084 |
|
| Trade
Debts (unsecured considered good) |
|
|
7,349,970 |
822,400 |
|
| Loans
and Advances |
|
18 |
47,326,275 |
47,997,276 |
|
| Trade
Deposits and Short |
|
|
|
|
| Term
Pre-Payments |
|
19 |
2,527,193 |
2,458,659 |
|
| Export
Rebate Receivables |
|
|
-- |
56,070,000 |
|
| Income
Tax Refundable |
|
|
7,545,003 |
7,601,316 |
|
| Cash
and Bank Balances |
|
20 |
24,421,559 |
4,610,875 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
148,638,213 |
201,883,795 |
|
|
|
|
------------------ |
------------------ |
|
|
|
729,453,692 |
766,061,873 |
|
|
|
|
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
|
|
|
|
CHIEF EXECUTIVE |
|
|
DIRECTOR |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 1999 |
|
|
|
|
1999 |
1998 |
|
|
NOTES |
Rupees |
Rupees |
|
|
|
|
| SALES |
|
21 |
1,047,751,859 |
977,691,671 |
|
| COST
OF GOODS SOLD |
|
22 |
882,799,592 |
849,439,438 |
|
|
|
|
------------------ |
------------------ |
|
| GROSS
PROFIT |
|
|
164,952,267 |
128,252,233 |
|
|
|
|
|
|
| OPERATING
EXPENSES |
|
|
|
| Administrative |
|
23 |
16,979,235 |
13,387,587 |
|
| Selling
and Distribution |
|
24 |
15,165,078 |
24,292,228 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
32,144,313 |
37,679,815 |
|
|
|
|
------------------ |
------------------ |
|
| OPERATING
PROFIT |
|
|
132,807,954 |
90,572,418 |
|
| OTHER
INCOME |
|
25 |
1,963,195 |
78,913 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
134,771,149 |
90,651,331 |
|
|
|
|
------------------ |
------------------ |
|
| FINANCIAL
CHARGES |
|
26 |
41,916,197 |
50,600,437 |
|
| OTHER
CHARGES |
|
27 |
4,642,748 |
2,860,798 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
46,558,945 |
53,461,235 |
|
|
|
|
------------------ |
------------------ |
|
| PROFIT
BEFORE TAXATION |
|
|
88,212,204 |
37,190,096 |
|
| TAXATION |
|
28 |
29,166,340 |
2,721,213 |
|
|
|
|
------------------ |
------------------ |
|
| PROFIT
AFTER TAXATION |
|
59,045,864 |
34,468,883 |
|
| PRIOR
YEAR ADJUSTMENT |
|
-- |
2,078,227 |
|
| UN-APPROPRIATED
PROFIT BROUGHT FORWARD |
|
581,314 |
1,396,504 |
|
|
|
|
------------------ |
------------------ |
|
| PROFIT
AVAILABLE FOR APPROPRIATION |
|
59,627,178 |
37,943,614 |
|
|
|
|
|
|
| APPROPRIATIONS |
|
|
|
| Transfer
to General Reserve |
|
30,000,000 |
20,000,000 |
|
| Proposed
Dividend @ 15% (1998: 10%) |
|
26,043,450 |
17,362,300 |
|
|
|
------------------ |
------------------ |
|
|
|
56,043,450 |
37,362,300 |
|
|
|
------------------ |
------------------ |
|
| UN-APPROPRIATED
PROFIT CARRIED FORWARD |
|
3,583,728 |
581,314 |
|
|
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these notes. |
|
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 1999 |
|
|
|
|
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
|
|
|
|
|
| A.
CASH FROM OPERATING ACTIVITIES |
|
|
| Cash
generated from operation |
|
(Note 29) |
283,509,944 |
147,023,504 |
|
|
|
|
|
| Financial
charges paid |
|
|
(49,078,679) |
(48,171,494) |
|
| Tax paid |
|
|
(2,124,495) |
(3,500) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(51,203,174) |
(48,174,994) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
232,306,770 |
98,848,510 |
|
|
|
|
========== |
========== |
|
|
|
|
|
| B.
CASH FROM INVESTING ACTIVITIES |
|
|
| Fixed
capital expenditure |
|
(48,627,513) |
(38,118,714) |
|
| Proceeds
from disposal of fixed assets |
|
-- |
162,000 |
|
| Long
term loans & advances |
|
418,202 |
549,234 |
|
| Long
term deposits and deferred cost |
|
(342,000) |
1,183,490 |
|
|
|
------------------ |
------------------ |
|
| Net
cash used in investing activities |
|
(48,551,311) |
(36,223,990) |
|
|
|
|
========== |
========== |
|
|
|
|
| C.
CASH FROM FINANCING ACTIVITIES |
|
|
| Redemption
of redeemable capital |
|
(67,559,800) |
(60,988,930) |
|
