| Genertech Pakistan Limited |
|
|
|
|
|
| Annual
Report 1999 |
|
|
|
|
| Contents |
|
|
| COMPANY
INFORMATION |
|
| NOTICE
OF MEETING |
|
| PATTERN
OF HOLDING OF SHARES |
|
| DIRECTORS
REPORT |
|
| AUDITORS
REPORT |
|
| BALANCE
SHEET |
|
| PROFIT
AND LOSS ACCOUNT |
|
| CASH
FLOW STATEMENT |
|
| NOTES
TO THE ACCOUNTS |
|
|
|
| COMPANY
INFORMATION |
|
|
|
| CHAIRMAN |
|
Jahangir Elahi |
|
| CHIEF
EXECUTIVE |
|
Alamgir Elahi |
|
| DIRECTORS |
|
Jahangir Elahi |
|
|
|
Tanvir Elahi |
|
|
|
Ahmed Jahangir |
|
|
|
Amir Jahangir |
|
|
|
Akhlaq Ali Khan |
|
|
|
Humayun Nabi Jan |
|
|
|
| COMPANY
SECRETARY |
|
Humayun Nabi Jan |
|
| GENERAL
MANAGER (ACCOUNTS) |
Nadir Ali Awan |
|
| AUDITORS |
|
M/s Zahid Jamil & Co. |
|
|
Chartered Accountants |
|
|
(An Independent Member of
BKR |
|
|
International) |
|
|
| LEGAL
ADVISOR |
|
M/s. Rizvi & Company |
|
|
|
| BANKERS |
|
ABN-AMRO Bank |
|
|
Askari Commercial Bank
Limited |
|
|
Emirates Bank
International P.J.S.C. |
|
|
Trust Investment Bank
Limited |
|
|
Union Bank Limited |
|
|
Escorts Investment Bank
Limited |
|
|
The Bank of Punjab |
|
|
| REGISTERED
OFFICE |
|
31/C-1, Ghalib Road,
Gulberg III, |
|
|
|
Lahore - Pakistan. |
|
|
|
Tel: (042) 5710216-20 /
5751811-14 |
|
|
|
Fax: (042) 5712881 /
5756686 |
|
|
|
| PLANT |
|
49th Kilometer, Lahore
Multan Road, |
|
|
Near Bhai Pheru, Tehsil
Chunian, |
|
|
District Kasur. |
|
|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
|
| Notice
is hereby given that the Ninth Annual General Meeting of the Shareholders of |
|
| Genertech
Pakistan Limited will be held at the Registered office of the company at
31/C-1, |
|
| Ghalib
Road, Gulberg III, Lahore, on Friday December 31, 1999 at 11.00 A.M. to |
|
| transact
the following business. |
|
|
| 1.
To confirm the minutes of the last General Meeting. |
|
|
| 2.
To receive and adopt the audited accounts for the year ended June 30, 1999
together |
|
| with
the Auditors' and Directors' report thereon. |
|
|
| 3.
To approve Cash Dividend @20.00% i.e. Rs. 2.00 per share as recommended by |
|
| the
Board of Directors. |
|
|
| 4.
To appoint auditors for the current year and fix their remuneration. The
present |
|
| auditors
M/s. Zahid Jamil & Co. Chartered Accountants, (An Independent Member of |
|
| BKR
International), being eligible, have offered themselves for re-appointment. |
|
|
| 5.
To discuss any matter with the permission of the chair. |
|
|
| For
and on behalf of |
|
| BOARD
OF DIRECTORS |
|
|
| HUMAYUN
NABI JAN |
|
| Company
Secretary |
|
|
| Lahore:
November 26, 1999 |
|
|
| NOTES: |
|
|
| 1.
The Share Transfer Books of the Company shall remain closed from December 21, |
|
| 1999
to December 30, 1999 (both days inclusive). Transfers received in order, at
31/C-1, |
|
| Ghulib
Road, Gulberg III, Lahore, the Share Department of the Company, at the close
of |
|
| Business
on December 20, 1999 shall be treated in time for the purpose of payment of |
|
| dividend
to. transferees. |
|
|
| 2.
A member entitled to attend and vote at the above meeting may appoint another |
|
| member
as his / her proxy to attend and vote instead of him / her. Proxies in order
to be |
|
| effective
must be received at the company's registered office not later than forty
eight hours |
|
| before
the' time for holding the meeting. Account and sub account holders of the |
|
| Central.
Depository System appointing proxies must attach attested copy of their
National |
|
| Identity
Card with the proxy form. |
|
|
| 3.
Accounts holders and sub-account holders, holding book entry securities of
the Company |
|
| in
CD S of Central Depositary Co. of Pakistan Ltd., who wish to attend the
Annual General |
|
| Meeting
are requested to please bring original National Identity Card with copy
thereof |
|
| duly
attested by their Bankers for identification purposes. |
|
|
| 4.
Shareholders are requested to promptly notify the Company of any change in
their |
|
| address
and send Zakat Declaration immediately. |
|
|
|
| PATTERN
OF SHARE HOLDING AS AT JUNE 30, 1999 |
|
|
| NUMBER
OF |
SHARE HOLDERS |
TOTAL |
|
| SHARE HOLDERS |
FROM |
|
TO |
|
|
| 94 |
1 |
-- |
100 |
9,350 |
|
| 2222 |
101 |
-- |
500 |
976,325 |
|
| 525 |
501 |
-- |
1000 |
418,000 |
|
| 621 |
1001 |
-- |
5000 |
1,573,300 |
|
| 159 |
5001 |
-- |
10000 |
1,178,250 |
|
| 36 |
10001 |
-- |
15000 |
421,500 |
|
| 19 |
15001 |
-- |
20000 |
278,800 |
|
| 7 |
20001 |
-- |
25000 |
183,700 |
|
| 18 |
25001 |
-- |
30000 |
441,900 |
|
| 7 |
30001 |
-- |
40000 |
264,400 |
|
| 3 |
40001 |
-- |
45000 |
137,300 |
|
| 6 |
45001 |
-- |
50000 |
202,300 |
|
| 2 |
50001 |
-- |
55000 |
110,500 |
|
| 3 |
55001 |
-- |
60000 |
153,250 |
|
| 1 |
60001 |
-- |
65000 |
65,900 |
|
| 3 |
65001 |
-- |
70000 |
112,000 |
|
| 4 |
71001 |
-- |
75000 |
305,600 |
|
| 5 |
90001 |
-- |
95000 |
278,800 |
|
| 4 |
95001 |
-- |
100000 |
398,500 |
|
| 2 |
110001 |
-- |
115000 |
136,700 |
|
| 3 |
115001 |
-- |
125000 |
2,811,000 |
|
| 1 |
151001 |
-- |
155000 |
158,000 |
|
| 1 |
161001 |
-- |
165000 |
68,300 |
|
| 2 |
176001 |
-- |
180000 |
156,000 |
|
| 2 |
236001 |
-- |
240000 |
253,500 |
|
| 2 |
326001 |
-- |
330000 |
338,300 |
|
| 1 |
516001 |
-- |
520000 |
420,950 |
|
| 2 |
591001 |
-- |
595000 |
499,500 |
|
| 1 |
1796001 |
-- |
1800000 |
1,301,025 |
|
| 1 |
2746001 |
-- |
2750000 |
2,354,550 |
|
| 1 |
3086001 |
-- |
3090000 |
1,992,500 |
|
| ---------- |
|
|
|
---------- |
|
| 3758 |
|
18,000,000 |
|
| ========== |
|
========== |
|
|
| CATEGORIES
OF |
NUMBER OF |
SHARES |
PERCENTAGE |
|
| SHARE
HOLDERS |
SHARE HOLDERS |
HELD |
|
|
| 1.
Individuals |
3671 |
8,662,425 |
48.12 |
|
| 2.
Investment Companies |
24 |
942,400 |
5.24 |
|
| 3.
Insurance Companies |
4 |
264,000 |
1.47 |
|
| 4.
Joint Stock Companies |
23 |
6,303,625 |
35.02 |
|
| 5.
Financial Institutions |
14 |
1,558,650 |
8.66 |
|
| 6.
Modaraba Companies |
5 |
64,000 |
0.36 |
|
| 7.
Foreign Investors |
9 |
157,200 |
0.87 |
|
| 8
Co-Operative Societies |
0 |
0 |
0.00 |
|
| 9.
Charitable Trusts |
0 |
0 |
0.00 |
|
| 10. Others |
|
8 |
47,700 |
0.26 |
|
|
---------- |
---------- |
---------- |
|
|
3758 |
18,000,000 |
100.00 |
|
|
========== |
========== |
========== |
|
|
|
| DIRECTOR'S
REPORT |
|
|
| The
directors of your company welcome you to the ninth Annual General Meeting of
the |
|
| company
and present their report together with audited financial statement of the
company |
|
| for
the year ended June 30th, 1999. |
|
|
| OPERATING
RESULTS AND APPROPRIATIONS |
|
|
| During
the period under review, the economy of the country experienced nothing short
of a |
|
| turmoil.
The year began with the level of confidence in economy at its' lowest ebb and
fear |
|
| of
country's default on its' financial commitments looming large on the horizon.
The |
|
| uncertainty
vis-a-vis restructuring of national debt with World Bank and Pairs club,
coupled |
|
| with
escalation of hostilities between India and Pakistan, ultimately resulting in
to a large- |
|
| scale
skirmish at Kargil, heightened the economic chaos. |
|
|
| As
the flip side of this disarray, your company benefited from the relative
stability in furnace |
|
| oil
prices up to May 1999, when these were increased again, by another 10.33
percent. |
|
| The
last quarter of the year also witnessed an unprecedented move by WAPDA when
it |
|
| reduced
it's tariff by around 11% April 1st, 1999. The industrial sector in the
country has |
|
| been
demanding a reduction and on rationalization of electricity tariff and this
recent reduction |
|
| appears
to be realization of fact that the cost of electricity in the country is one
of the |
|
| highest
in world, thus rendering our industry in-competitive. We strongly support
every |
|
| reduction
in industrial electricity tariff, however we feel that this tariff level is
not sustainable |
|
| unless: |
|
| Government
agrees to reduce surcharge it collects on furnace oil & other POL
products. |
|
| Public
utilities reduce their line losses and theft to an acceptable level. |
|
| Public
utilities improve on their resource allocation and reduce wastage. |
|
|
| The
terrible financial state of public utility corporations is no secret, even
with much touted |
|
| plan
for reduction in line losses to acceptable levels, these corporations can not
sustain |
|
| much
longer without proper reflection of these factors in the electricity tariff.
Alternatively |
|
| GOP
will have to extend substantial subsidies, which does not seem feasible
considering |
|
| the
overall health of exchequer and conditionalities under various agreements
with loan/aid |
|
| given
agencies. |
|
|
| The
highlights of Operating results for the year are as under, giving an EPS of
PRs.4.53 |
|
| (PRs.3.17-
1998). |
|
|
|
(PRs.000 |
|
|
1999 |
1998 |
|
| Sales (net) |
|
588,011 |
540,287 |
|
| Gross Profit |
|
149,478 |
127,863 |
|
| Operating
Profit |
|
141,860 |
121,689 |
|
| Net Profit |
|
81,486 |
57,101 |
|
| Un-appropriated
profit brought forward |
|
8,713 |
8,112 |
|
|
| The
Board of Directors is pleased to recommend following appropriation: |
|
|
|
1999 |
1998 |
|
| Transfer
to General Reserve |
|
45,000 |
25,000 |
|
| Dividend
(20%) |
|
36,000 |
31,500 |
|
|
| As
regards the operating efficiency levels, the salient features of the
operations are as |
|
| under: |
|
|
1999 |
1998 |
|
| Operating
Efficiency Level |
|
84.25% |
78.84% |
|
| Auxiliary
consumption |
|
2.10% |
2.25% |
|
| Line losses |
|
0.68% |
1.02% |
|
|
| Y2K
COMPLIANCE |
|
|
| Your
company had taken up the issue proactively, and all it's plant &
equipment, computer |
|
| hardware
and software is fully Y2K compliant. |
|
|
| AUDITORS |
|
|
| The
retiring auditors Messers Zahid Jamil & Company, Chartered Accountants
(An |
|
| independent
member of BKR International) being eligible offer themselves for
re-appointment. |
|
|
| ACKNOWLEDGMENT |
|
|
| Directors
wish to place on record their appreciation for the dedicated work of staff
and |
|
| executives
of the company. |
|
|
| PATTERN
OF SHAREHOLDING |
|
|
| The
pattern of shareholding as on June 30, 1999 as required under section 236 of
the |
|
| Companies
Ordinance, 1984 is enclosed. |
|
|
| For
and on behalf of |
|
| Board
of Directors |
|
|
| Alamgir
Elahi |
|
| Chief
Executive |
|
|
| Lahore:
November 26, 1999. |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of GENERTECH PAKISTAN LIMITED as at |
|
| June
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 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 purposes 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, except for the effect of the matter referred to in note 10.1, 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 June 30, 1999 and of the profit and the cash |
|
| flow
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. |
|
|
| LAHORE: |
|
(ZAHID JAMIL &
COMPANY) |
|
| DATED:
November 26, 1999 |
(CHARTERED ACCOUNTANTS) |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 1999 |
|
|
|
|
NOTE |
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
| SHARE
CAPITAL & RESERVES |
|
|
| Authorised
share capital |
|
| 20,000,000
ordinary shares of Rs. 10 each |
|
200,000,000 |
200,000,000 |
|
|
========== |
========== |
|
| Issued,
subscribed & paid up share capital |
|
| 18,000,000
ordinary shares of Rs. 10 each |
|
| fully
paid up in cash |
|
180,000,000 |
180,000,000 |
|
|
| Premium
on issue of shares |
|
114,945,750 |
114,945,750 |
|
| Revenue
reserve |
|
3 |
175,000,000 |
130,000,000 |
|
| Unappropriated
profit |
|
9,199,233 |
8,713,398 |
|
|
479,144,983 |
433,659,148 |
|
|
| LONG
TERM LOAN |
|
4 |
78,324,324 |
156,648,050 |
|
|
|
|
| LIABILITIES
AGAINST ASSETS SUBJECT |
|
|
| TO
FINANCE LEASE |
|
5 |
61,696,639 |
98,901,141 |
|
|
| CURRENT
LIABILITIES |
|
|
| Current
portion of long term liabilities |
|
6 |
118,182,159 |
112,131,011 |
|
| Short
term running finance |
|
7 |
132,070,658 |
124,463,256 |
|
| Creditors,
accrued & other liabilities |
|
8 |
37,508,881 |
37,552,925 |
|
| Dividend
payable |
|
|
42,604,107 |
36,695,903 |
|
|
|
---------- |
---------- |
|
|
|
330,365,805 |
310,843,095 |
|
|
|
|
| CONTINGENCIES
& COMMITMENTS |
|
9 |
-- |
-- |
|
|
|
|
|
---------- |
---------- |
|
|
949,531,751 |
1,000,051,434 |
|
|
========== |
========== |
|
| TANGIBLE
FIXED ASSETS |
|
| Operating
fixed assets |
|
10 |
695,827,656 |
718,171,240 |
|
|
| Capital
work-in-progress |
|
11 |
17,009,813 |
20,375,000 |
|
|
712,837,469 |
738,546,240 |
|
|
| LONG
TERM DEPOSITS |
|
12 |
15,822,281 |
17,609,266 |
|
|
| DEFERRED
COST |
|
13 |
-- |
1,061,432 |
|
|
| CURRENT
ASSETS |
|
|
| Stores
& spares |
|
14 |
68,327,921 |
63,951,340 |
|
| Trade debts |
|
15 |
75,856,355 |
86,766,144 |
|
|
| Advances,
prepayments & other |
|
| receive b le |
|
16 |
17,234,958 |
28,981,972 |
|
|
|
|
| Cash
& bank balances |
|
17 |
59,452,767 |
63,135,040 |
|
|
---------- |
---------- |
|
|
220,872,001 |
242,834,496 |
|
|
|
---------- |
---------- |
|
|
949,531,751 |
1,000,051,434 |
|
|
========== |
========== |
|
| The
annexed notes from 1 to 27 form an integral part |
|
| of
these accounts. Auditor's report to the members |
|
| is
annexed here to. |
|
|
| CHIEF
EXECUTIVE |
|
DIRECTOR |
|
|
|
| PROFIT
AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 1999 |
|
|
|
|
NOTE |
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
|
|
|
|
| SALES (Net) |
|
588,010,761 |
540,287,038 |
|
| COST
OF SALES |
|
18 |
438,532,861 |
412,423,911 |
|
|
|
---------- |
---------- |
|
| GROSS
PROFIT |
|
149,477,900 |
127,863,127 |
|
| ADMINISTRATIVE
& GENERAL EXPENSES |
19 |
7,618,009 |
6,173,587 |
|
|
|
|
---------- |
---------- |
|
| OPERATING
PROFIT |
|
|
141,859,891 |
121,689,540 |
|
|
|
|
|
| FINANCIAL
& OTHER CHARGES |
|
20 |
56,085,328 |
61,582,460 |
|
| WORKERS'
PARTICIPATION FUND |
|
4,288,728 |
3,005,354 |
|
|
|
---------- |
---------- |
|
|
|
60,374,056 |
64,587,814 |
|
|
|
---------- |
---------- |
|
| PROFIT
FOR THE YEAR |
|
81,485,835 |
57,101,726 |
|
|
|
| FORWARD |
|
8,713,398 |
8,111,672 |
|
|
|
---------- |
---------- |
|
| PROFIT
AVAILABLE FOR APPROPRIATION |
|
90,199,233 |
65,213,398 |
|
| APPROPRIATIONS |
|
|
| Transfer
to general reserve |
|
45,000,000 |
25,000,000 |
|
| Proposed
final dividend Rs. 2/- per share |
|
| (1998:
Rs. 1.75) |
|
36,000,000 |
31,500,000 |
|
|
---------- |
---------- |
|
|
81,000,000 |
56,500,000 |
|
|
| UNAPPROPRIATED
PROFIT CARRIED |
|
---------- |
---------- |
|
| FORWARD |
|
9,199,233 |
8,713,398 |
|
|
========== |
========== |
|
| Earning
per share |
|
24 |
4.53 |
3.17 |
|
|
| The
annexed notes from 1 to 27 form an integral part Of these accounts. |
|
|
| CHIEF
EXECUTIVE |
|
DIRECTOR |
|
|
|
| CASH
FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 1999 |
|
|
|
|
|
NOTE |
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
|
|
|
| CASH
FLOWS FROM OPERATING ACTIVITIES |
|
|
| Profit
for the year |
|
81,485,835 |
57,101,726 |
|
| Add:
Adjustments to reconcile profit to net cash |
|
| provided
by operating activities |
|
| Depreciation |
|
717,592,821 |
74,493,497 |
|
| Deferred
cost amortized |
|
1,061,431 |
1,061,431 |
|
|
---------- |
---------- |
|
|
72,820,713 |
75,554,928 |
|
|
---------- |
---------- |
|
| Cash
flows from operating activities before |
|
154,306,548 |
132,656,654 |
|
| working
capital changes |
|
|
|
| (Increase)/decrease
in current assets |
|
|
| Stores
& spares |
|
(4,376,581) |
(18,302,692) |
|
| Trade debts |
|
10,909,789 |
(19,351,727) |
|
| Advances,
prepayments & other receivable |
|
11,747,014 |
36,812,961 |
|
|
---------- |
---------- |
|
|
18,280,222 |
(841,458) |
|
| Increase/(decrease)
in current liabilities |
|
|
| Short
term running finance |
|
7,607,402 |
38,827,656 |
|
| Creditors,
accrued & other liabilities |
|
(44,044) |
4,381,067 |
|
|
---------- |
---------- |
|
|
7,563,358 |
43,208,723 |
|
|
---------- |
---------- |
|
| Net
cash used in operating activities |
|
180,150,128 |
175,023,919 |
|
|
| CASH
FLOWS FROM INVESTING ACTIVITIES |
|
|
| Fixed
assets acquired |
|
(48,113,190) |
(84,686,949) |
|
| Long
term deposits |
|
1,786,985 |
1,093,928 |
|
| Sale
proceeds of fixed assets |
|
2,062,679 |
20,873,424 |
|
|
---------- |
---------- |
|
| Net
cash used in investing activities |
|
(44,263,526) |
(62,719,597) |
|
| CASH
FLOWS FROM F |
