| Chashma Sugar Mills Limited |
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| Annual
Report 1999 |
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| CONTENTS |
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| Board
of Directors |
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|
|
| Notice
of Meeting |
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|
|
| Directors' Report |
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|
|
| Pattern
of Share Holdings |
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|
| Auditors' Report |
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|
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| Balance
Sheet |
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| Profit and Loss Accounts |
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| Cash Flow Statement |
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| Notes to the Accounts |
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| BOARD
OF DIRECTORS |
|
|
| CHAIRMAN
/ CHIEF EXECUTIVE |
KHAN AZIZ SARFARAZ KHAN |
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|
|
| DIRECTORS |
|
BEGUM ZARI SARFARAZ |
|
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|
BEGUM LAILA SARFARAZ |
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|
ISKANDAR M. KHAN |
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|
|
BEGUM MEHMOODA SALIM KHAN |
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|
ABDUL QADAR KHATTAK |
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|
MUHAMMAD RAFIQ KHAN |
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|
USMAN RASHID (NDFC) |
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| COMPANY
SECRETARY |
|
MUJAHID BASHIR |
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| AUDITORS |
|
MESSRS HAMEED CHAUDHRI
& CO., |
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|
|
CHARTERED ACCOUNTANTS |
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|
|
| REGISTERED
OFFICE |
|
GUNNER LANE, OFF l 1-FORT |
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|
ROAD, PESHAWAR CANTT |
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| FACTORY |
|
DERA ISMAlL KHAN |
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|
PHONE: 750090,750091 |
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|
| EIGHT
YEARS' REVIEW |
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|
|
| CANE |
SUGAR |
|
|
| YEAR |
CRUSHED TONS |
RECOVERY % |
PRODUCED TONS |
|
|
| 1992 |
174,454 |
8.69 |
15,093 |
|
| 1993 |
328,422 |
8.43 |
27,699 |
|
| 1994 |
436,302 |
8.41 |
36,701 |
|
| 1995 |
507,706 |
8.66 |
44,001 |
|
| 1996 |
495,543 |
8.02 |
38,884 |
|
| 1997 |
370,489 |
7.72 |
28,616 |
|
| 1998 |
744,391 |
8.47 |
63,025 |
|
| 1999 |
828,703 |
7.84 |
64,963 |
|
|
|
| NOTICE
OF MEETING |
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| NOTICE
IS HEREBY GIVEN that 12th Annual General Meeting of the |
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| shareholders
of Chashma Sugar Mills Limited, will be held on 31st March, 2000. at |
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| 10.30
A.M. at the Registered Office of the Company at l 1-Fort Road, Peshawar |
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| for
transacting the following business:- |
|
|
| 1.
To confirm the minutes of the last meeting held on 27th March, 1999. |
|
|
| 2.
To receive and consider the Audited Accounts of the Company together |
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| with
the Directors' and Auditors' reports for the year ended 30th September, |
|
| 1999. |
|
|
| 3.
To declare a dividend. |
|
|
| 4.
To appoint auditors for the year 1999 - 2000 and to fix their remuneration.
The |
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| outgoing
auditors, Messrs. Hameed. Chaudhri & Co., Chartered Accountants, |
|
| offer
themselves for 're-appointment. |
|
|
| 5.
To approve remuneration of Directors. |
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|
| 6.
To transact any other ordinary business of the Company as may be permitted by |
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| the Chair. |
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| The
share transfer books of the Company will remain closed for entitlement of |
|
| dividend
from 20th March, 2000 to 30th March, 2000 (Both days inclusive). |
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|
BY ORDER OF THE BOARD |
|
|
| PESHAWAR |
|
(MUJAHID BASHIR) |
|
| March
01, 2000. |
|
SECRETARY |
|
|
| N.B.
1. Member unable to attend in person may kindly send proxy form attached with
the Balance sheet |
|
| signed
and witnessed to the Company at least 48 hours before the time of the
meeting. No Person |
|
| shall
act as proxy unless he is entitled to be present and vote in his own right. |
|
|
| 2.
Members are requested to notify any change in address immediately. |
|
|
| 3.
C.D.C shareholders desiring to attend the meeting are requested to bring
their original National Identity Cards, |
|
| Account
and particpants I.D numbers, for identification purpose, and in case of
proxy, to enclose an attested |
|
| copy
of his / her National Identity Card. |
|
|
|
| DIRECTORS'
REPORT |
|
|
| The
Directors have pleasure in presenting their annual report alongwith the
Audited |
|
| Accounts
of the Company for the year ended 30th September, 1999. |
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| 1.
SUGARCANE SEASON '1998- 99 |
|
|
| The
Sugarcane crushing season which started on 25th November, 1998 and ended |
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| on
2nd May, 1999. The Sugarcane growers were paid Rs. 35/- per 40 kgs, the
support |
|
| price
fixed by the Government. Recovery from sugarcane was below the bench mark |
|
| recovery
of 8.50%. The main reason for this decline was red rots diseases on sugarcane |
|
| and
increase in the cultivation of unapproved sugarcane variety CO J1148. |
|
|
| 2.
CURRENT SEASON 1999- 2000 |
|
|
| The
current season started on 19th November 1999 and we have crushed 594,575 tons
of |
|
| sugarcane,
producing 47,503 tons of sugar upto 29th February 2000 at an average |
|
| recovery
of 8.02%. We anticipate to crush about 700,000 tons sugarcane during the
season |
|
| and
hope to produce approximately 56,000/57,000 tons of sugar and 35,000 tons of |
|
| molasses.
While we are happy to report that the sugarcane area in D.I. Khan district
has |
|
| increased
but we are facing difficulties in procurement of sugarcane as the other sugar
mills |
|
| of
Punjab are purchasing sugarcane from our area due to the shortage of
sugarcane in |
|
| Punjab. |
|
|
| 3.
SALES TAX ON SUGAR |
|
|
| Sales
tax on sugar is 15 percent but we have :to pay 3 percent additional sales tax |
|
| because
all the sugar buyers are unregistered. This is unfair as we have been
penalized |
|
| for
inability of CBR to register the traders. |
|
|
| 4.
DIVIDEND |
|
|
| The
Directors recommend the payment of cash dividend @ 20% out of the profits
available |
|
| for
appropriation. |
|
|
| 5.
GENERAL RESERVE |
|
|
| A
sum of Rs. 50.00 million has been transferred to general reserve. |
|
|
| 6. STAFF |
|
|
| Labour
and Management relations remained cordial during the year. All employees |
|
| were
paid bonus equivalent to 4 ~ months salary in addition to other amenities and |
|
| statutory
benefits. |
|
|
| 7.
AUDITORS |
|
|
| The
present auditors, Messrs Hameed Chaudhri & Co. Chartered Accountants, |
|
| Lahore
retire and being eligible offer themselves for re-appointment. |
|
|
| 8.
LISTING WITH CENTRAL DEPOSITORY COMPANY |
|
|
| During
the fiscal year the Company has been listed with the CDC to facilitate the |
|
| shareholders
of the Company for smooth transaction of shares at Lahore, Karachi |
|
| and
Islamabad Stock Exchanges. |
|
|
| 9.
PATTERN OF SHARE HOLDING |
|
|
| Pattern
of shareholding of the Company is annexed. |
|
|
| 10.
Y2K COMPLIANCE OF COMPUTER SYSTEM |
|
|
| The
company took measures to comply with the requirements of Y2K compliance of |
|
| computer
system. |
|
|
| The
Directors appreciate the spirit of good work done by the company's staff at
all |
|
| levels. |
|
|
|
ON BEHALF OF THE BOARD |
|
|
| PESHAWAR
:March 1, 2000. |
( KHAN AZIZ SHARFARAZ
KHAN ) |
|
|
CHAIRMAN / CHIEF
EXECUTIVE |
|
|
|
| PATTERN
OF HOLDING OF THE SHARES HELD BY THE SHAREHOLDERS |
|
| AS
AT 30TH SEPTEMBER, 1999 |
|
|
| SHARE |
|
TOTAL |
|
| HOLDERS |
SHAREHOLDING |
SHARESHELD |
|
|
| 417 |
From |
1 |
to |
100 |
Shares |
41,700 |
|
| 3,600 |
From |
101 |
to |
500 |
Shares |
1,624,800 |
|
| 144 |
From |
501 |
to |
1,000 |
Shares |
138,100 |
|
| 184 |
From |
1,001 |
to |
5,000 |
Shares |
494,000 |
|
| 43 |
From |
5,001 |
to |
10,000 |
Shares |
340,300 |
|
| 14 |
From |
10,001 |
to |
15,000 |
Shares |
167,300 |
|
| 7 |
From |
15,001 |
to |
20,000 |
Shares |
129,300 |
|
| 7 |
From |
20,001 |
to |
2,500.00 |
Shares |
154,400 |
|
| 6 |
From |
25,001 |
to |
30,000 |
Shares |
174,900 |
|
| 10 |
From |
30,001 |
to |
65,000 |
Shares |
431,400 |
|
| 8 |
From |
70,001 |
to |
130,000 |
Shares |
770,100 |
|
| 3 |
From |
195,001 |
to |
200,000 |
Shares |
600,000 |
|
| 1 |
From |
200,001 |
to |
250,000 |
Shares |
205,000 |
|
| 1 |
From |
250,001 |
to |
295,000 |
Shares |
255,500 |
|
| 1 |
From |
295,001 |
to |
335,000 |
Shares |
331,000 |
|
| 2 |
From |
415,001 |
to |
520,000 |
Shares |
880,000 |
|
| 3 |
From |
520,001 |
to |
Above |
Shares |
12,390,200 |
|
| ---------- |
|
|
|
|
|
---------- |
|
| 4,451 |
|
19,128,000 |
|
| ========== |
|
========== |
|
|
|
|
|
| Categories
of Shareholders |
Numbers |
Shares Held |
Percentage |
|
| Individuals |
|
4,423 |
6,064,700 |
31.71 |
|
| Investment
Companies |
|
11 |
2,285,400 |
11.95 |
|
| Insurance
Companies |
|
2 |
9,800 |
0.05 |
|
| Joint
Stock Companies |
|
14 |
10,568,100 |
55.25 |
|
| Sarfaraz
Distt: Hospital |
|
1 |
200,000 |
1.05 |
|
|
---------- |
---------- |
---------- |
|
|
4,451 |
19,128,000 |
100.00 |
|
|
========== |
========== |
========== |
|
|
|
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS OF |
|
| CHASHMA
SUGAR MILLS LIMITED |
|
|
| We
have audited the annexed Balance Sheet of CHASHMA SUGAR MILLS LIMITED as at
30 |
|
| September,
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 purposes 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 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 of our information and according to the
explanations given to |
|
| us,
the Balance Sheet, Profit and Loss Account and the 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 30 September, 1999 and of the profit and cash
flows for |
|
| the
year then ended; and |
|
|
|
|
| (d)
in our opinion, no Zakat was deductible at source under the Zakat and Ushr
Ordinance, |
|
| 1980. |
|
|
|
HAMEED CHAUDHRI &
CO., |
|
| LAHORE:
MARCH 02, 2000 |
|
CHARTERED ACCOUNTANTS. |
|
|
|
| BALANCE
SHEET AS AT 30 SEPTEMBER, 1999 |
|
|
|
|
1999 |
1998 |
|
|
Note |
Rupees |
Rupees. |
|
| SHARE
CAPITAL AND RESERVES |
|
| Authorised
capital |
|
| 22,000,000
ordinary shares |
|
| of
Rs.10 each |
|
220,000,000 |
220,000,000 |
|
|
========== |
========== |
|
| Issued,
subscribed and paid-up capital |
|
| 19,128,000
ordinary shares of Rs.10 |
|
| each
fully paid in cash |
|
3 |
191,280,000 |
191,280,000 |
|
| General
reserve |
|
27 |
156,000,000 |
106,000,000 |
|
| Un
appropriated profit |
|
332,534 |
877,041 |
|
|
---------- |
---------- |
|
|
347,612,534 |
298,157,041 |
|
| LONG
TERM FINANCES AND LOANS |
|
| Long
term finances under |
|
| mark-up
arrangements |
|
4 |
0 |
23,198,500 |
|
| Long
term loans |
|
40,593,708 |
64,286,865 |
|
| Long
term loans from Holding |
|
| Company
and Associated |
|
| Undertaking |
|
6 |
0 |
11,000,000 |
|
|
|
---------- |
---------- |
|
|
40,593,708 |
98,485,365 |
|
|
| CURRENT
LIABILITIES |
|
| Current
portion of long |
|
| term
liabilities |
|
7 |
57,952,637 |
98,399,176 |
|
| Short
term finances |
|
8 |
200,928,494 |
224,911,157 |
|
| Creditors,
accruals and |
|
|
|
| other
liabilities |
|
9 |
45,442,904 |
55,429,710 |
|
| Excise
duty and sales tax payable |
|
10 |
42,062,464 |
34,094,971 |
|
| Provision
for taxation |
|
1,123,704 |
0 |
|
| Unclaimed
dividend |
|
243,376 |
243,972 |
|
| Proposed
dividend |
|
38,256,000 |
0 |
|
|
---------- |
---------- |
|
|
386,009,579 |
413,078,986 |
|
|
| CONTINGENCIES
AND COMMITMENTS |
11 |
---------- |
---------- |
|
|
774,215,821 |
809,721,392 |
|
|
========== |
========== |
|
|
| FIXED
CAPITAL EXPENDITURE |
|
|
|
| Operating
fixed assets |
|
12 |
436,764,799 |
472,556,684 |
|
| Capital
work-in-progress |
|
13 |
15,575,723 |
7,117,512 |
|
| Stores
held for capital expenditure |
|
11,920,189 |
9,271,329 |
|
|
---------- |
---------- |
|
|
464,260,711 |
488,945,525 |
|
|
| SECURITY
DEPOSITS |
|
93,765 |
129,765 |
|
|
|
| CURRENT
ASSETS |
|
| Stores
and spares |
|
14 |
38,764,929 |
37,128,022 |
|
| Stock-in-trade |
|
15 |
133,657,000 |
188,880,000 |
|
| Trade
debtors - Unsecured |
|
| -
Considered good |
|
102,143,794 |
61,045,947 |
|
| Advances,
deposits, prepayments |
|
| and
other receivables |
|
16 |
27,182,506 |
28,767,709 |
|
| Cash
and bank balances |
|
17 |
8,113,116 |
4,824,424 |
|
|
|
---------- |
---------- |
|
|
309,861,345 |
320,646,102 |
|
|
---------- |
---------- |
|
|
774,215,821 |
809,721,392 |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
ISKANDAR M. KHAN |
|
MUHAMMAD RAFIQ KHAN |
|
KHAN AZIZ SARFARAZ KHAN |
|
|
DIRECTOR |
|
DIRECTOR |
|
CHAIRMAN / CHIEF EXECUTIVE |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED 30 SEPTEMBER, 1999 |
|
|
|
|
1999 |
1998 |
|
|
Note |
Rupees |
Rupees |
|
|
| SALES - Net |
|
18 |
1,111,549,907 |
811,335,253 |
|
| COST
OF SALES |
|
19 |
932,608,310 |
719,697,287 |
|
|
|
---------- |
---------- |
|
| GROSS
PROFIT |
|
178,941,597 |
91,637,966 |
|
| OPERATING
EXPENSES |
|
| Administrative
and general |
|
20 |
15,985,619 |
16,606,449 |
|
| Selling
and distribution |
|
21 |
2,324,558 |
1,971,691 |
|
|
|
---------- |
---------- |
|
|
18,310,177 |
18,578,140 |
|
|
---------- |
---------- |
|
| OPERATING
PROFIT |
|
160,631,420 |
73,059,826 |
|
|
| OTHER
INCOME |
|
22 |
7,747 |
2,014,814 |
|
|
|
---------- |
---------- |
|
|
160,639,167 |
75,074,640 |
|
|
| OTHER
CHARGES |
|
| Financial
- net |
|
23 |
60,405,207 |
62,869,708 |
|
| Miscellaneous |
|
24 |
6,723,263 |
688,401 |
|
| Workers'
(profit) participation fund |
|
4,675,500 |
11,000 |
|
|
---------- |
---------- |
|
|
71,803,970 |
63,569,109 |
|
|
---------- |
---------- |
|
| PROFIT
BEFORE PRIOR YEAR'S |
|
| ITEM
AND TAXATION |
|
88,835,197 |
11,505,531 |
|
|
| EXCISE
DUTY - Prior year |
|
10.2 |
0 |
(11,293,880) |
|
|
|
---------- |
---------- |
|
|
88,835,197 |
211,651 |
|
| PROVISION
FOR TAXATION |
|
25.6 |
1,123,704 |
0 |
|
|
|
---------- |
---------- |
|
| PROFIT
AFTER TAXATION |
|
87,711,493 |
211,651 |
|
| UNAPPROPRIATED
PROFIT - Brought forward |
|
877,041 |
665,390 |
|
|
---------- |
---------- |
|
| PROFIT
AVAILABLE FOR APPROPRIATION |
|
88,588,534 |
877,041 |
|
| APPROPRIATION: |
|
| Transfer
to General Reserve |
|
50,000,000 |
0 |
|
| Proposed
dividend @ 20% (1998:Nil) |
|
38,256,000 |
0 |
|
|
---------- |
---------- |
|
|
88,256,000 |
0 |
|
|
| UNAPPROPRIATED
PROFIT |
|
| -
Carried to Balance Sheet |
|
332,534 |
877,041 |
|
|
========== |
========== |
|
| Earnings
per Share |
|
26 |
4.59 |
0.01 |
|
|
|
========== |
========== |
|
|
|
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
ISKANDAR M. KHAN |
|
MUHAMMAD RAFIQ KHAN |
|
KHAN AZIZ SARFARAZ KHAN |
|
|
DIRECTOR |
|
DIRECTOR |
|
CHAIRMAN / CHIEF EXECUTIVE |
|
|
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED 30 SEPTEMBER, 1999 |
|
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| Profit
for the year |
|
| -
Before prior year's item and taxation |
|
88,835,197 |
11,505,531 |
|
| Adjustments
for: |
|
|
|
| Depreciation |
|
47,995,626 |
51,775,906 |
|
| Loss
on disposal of vehicle and equipment |
|
0 |
51,484 |
|
| Interest
and profit on deposits |
|
(7,247) |
(182,016) |
|
| Interest
and mark-up |
|
|
|
| on
loans and finances |
|
59,910,876 |
62,487,769 |
|
| Net
decrease in working |
|
|
|
| capital
(note 'A') |
|
22,525,471 |
(130,476,534) |
|
|
---------- |
---------- |
|
| CASH
INFLOW (OUT FLOW)FROM OPERATING |
|
| ACTIVITIES
- Before taxation |
|
219,259,923 |
(4,837,860) |
|
|
| Income
tax paid |
|
(308,207) |
(153,609) |
|
| NET
CASH INFLOW (OUT FLOW) FROM OPERATING |
---------- |
---------- |
|
| ACTIVITIES
-. After taxation |
|
218,951,716 |
(4,991,469) |
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
| Fixed
capital expenditure |
|
(23,310,812) |
(9,936,346) |
|
| Insurance
claim of vehicle |
|
0 |
600,000 |
|
| Interest
and profit on deposits- net |
|
7,247 |
182,016 |
|
| Security
deposits |
|
36,000 |
(56,000) |
|
|
---------- |
---------- |
|
| NET
CASH (OUTFLOW) FROM INVESTING |
|
|
|
| ACTIVITIES |
|
(23,267,565) |
(9,210,330) |
|
|
---------- |
---------- |
|
|
195,684,151 |
(14,201,799) |
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
| Long
term loans paid to Holding Company |
|
| and
Associated Undertaking |
|
(54,848,000) |
0 |
|
| Long
term finances and loans repaid |
|
(43,490,196)1 |
(40,684,675) |
|
| Interest
and mark-up |
|
|
|
| paid
on loans and finances |
|
(70,074,004) |
(67,632.051) |
|
| Short
term finances - net |
|
(53,747,476) |
137,855,601 |
|
| Dividend
paid |
|
(596) |
(78,941) |
|
|
---------- |
---------- |
|
| NET
CASH (OUTFLOW)/INFLOW FROM FINANCING |
|
| ACTIVITIES |
|
(222,160,272) |
29,459,934 |
|
|
---------- |
---------- |
|
| (DECREASE)
/ INCREASE IN CASH AND |
|
|
|
| CASH
EQUIVALENTS |
|
(26,476:121) |
15,258,135 |
|
| CASH
AND CASH EQUIVALENTS |
|
|
|
| -
At the beginning of the year |
|
2,350,988 |
(12,907,147) |
|
| CASH
AND CASH EQUIVALENTS |
|
---------- |
