| Haseeb Waqas Sugar Mills Limited |
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| Annual
Report 1999 |
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| Contents |
|
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| Company
Information |
|
| Notice
of Annual General Meeting |
|
|
| Director's
Report |
|
| Pattern
of Holding of Shares |
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| Auditors'
Report |
|
| Balance Sheet |
|
| Profit
and Loss Account |
|
| Cash
Flow Statement |
|
| Notes
to the Accounts |
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|
|
| COMPANY
INFORMATION |
|
|
| BOARD
OF DIRECTORS |
|
| Mian
Muhammad Ilyas Miraj |
|
Chief Executive/Chairman |
|
| Mian
Muhammad Ijaz Miraj |
|
| Mrs.
Shahzadi Ilyas |
|
| Mrs.
Yasmeen Riaz |
|
| Mrs.
Ayesha Ijaz |
|
| Sohail
Ahmad Butt |
|
| Zia Mustafa |
|
|
| COMPANY
SECRETARY |
|
| M.Y. Sabir |
|
|
| AUDITORS |
|
| M/S.
Saeed Methani & Co. |
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| Chartered
Accountants |
|
|
| BANKERS |
|
| Habib
Bank Limited |
|
| National
Bank of Pakistan |
|
| Allied
Bank of Pakistan Ltd. |
|
| The
Bank of Punjab |
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| Muslim
Commercial Bank Ltd. |
|
| United
Bank Ltd. |
|
|
| REGISTRAR |
|
| Softlink
(Pvt.) Ltd. |
|
| Wings Arcade |
|
| 1-K
(Commercial) |
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| Model
Town Lahore. |
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|
| LEGAL
ADVISOR |
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| Shahid
Jamil Khan Advocate |
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| 19-Dinga
Singh Building, |
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| 46
- The Mall, Lahore. |
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| REGISTERED
OFFICE |
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| 103-B/1,
M.M. Alam Road, |
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| Gulberg
III, Lahore - Pakistan. |
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|
| MILLS |
|
| Mirajabad, |
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| Teh.
Nankana Sahib, |
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| Distt.
Sheikhupura. |
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|
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| NOTICE
OF ANNUAL GENERAL MEETING |
|
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| NOTICE
is hereby given that the 8th Annual General Meeting of the shareholders of
Haseeb Waqas Sugar |
|
| Mills
Limited will be held at its Registered Office 103-B-1, MM. Alam Road, Gulberg
III, Lahore, on Friday, |
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| April
28, 2000, at 9:00 A.M. to transact the following business:- |
|
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| To
confirm the minutes of the 7th Annual General Meeting held on April 30, 1999. |
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| To
receive, consider and adopt the Annual Audited Accounts of the Company for
the year ended September |
|
| 30,
1999 together with Directors' and Auditors' Reports thereon. |
|
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| To
appoint Auditors and fix their remuneration, the retiring Auditors M/S. Saeed
Methani & Co., Chartered |
|
| Accountants,
Lahore, being eligible, have offered themselves for re-appointment. |
|
|
| To
transact such other business which may be placed before the meeting with the
permission of the |
|
| Chair. |
|
|
| On
behalf of the Board |
|
|
| Lahore: |
|
M.Y. SABIR |
|
| April 06, 2000. |
|
Company Secretary |
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| NOTES: |
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| 1.
The Share Transfer Book of the Company will remain closed from April 20, 2000
to April 28, 2000 (both |
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| days
inclusive) and no transfer will be accepted for registration during this
period. |
|
|
| 2.
A member entitled to attend and vote at this meeting may appoint another
member as his/her proxy to |
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| attend
and vote instead of him/her. Proxies in order to be effective must be
received at the Registered |
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| Office
of the Company not less than 48 hours before the time fixed for the meeting
and must be duly |
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| stamped,
signed and witnessed by two persons. |
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|
| 3.
Shareholders are requested to immediately notify the Company of any change in
their addresses, if any, |
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| to
our Registrar, namely, Soft Link (Pvt.) Limited, Wings Arcade 1-K,
(Commercial) Model Town, Lahore. |
|
|
| 4.
Any individual Beneficial Owner of CDC, entitled to attend and vote at this
meeting, must bring his/her |
|
| NIC
or Passport to prove his/her identity, and in case of Proxy must enclose an
attested copy of his/her |
|
| NIC
or Passport. Representatives of corporate members should bring the Board of
Directors' resolu- |
|
| tion/power
of attorney for such purpose. At the time of meeting, the Proxy must produce
his/her original |
|
| NIC
or Passport. |
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|
|
| DIRECTORS'
REPORT |
|
|
| The
Board of Directors welcome you to the eighth Annual General meeting of the
company and present the Audited |
|
| Accounts
for the year ended September 30, 1999. |
|
|
| The
operational performance for the year under review is as under: |
|
|
|
1999 |
1998 |
|
|
| Sugar
cane Crushed |
(M.T.) |
931,634 |
1,003,996 |
|
| Sugar
Produced |
(M.T.) |
70,372 |
80,720 |
|
| Sugar
Recovery: |
|
7.55% |
8.04% |
|
| Days Worked |
|
152 |
156 |
|
|
| Decrease
in sugar production of 10,348 M. Tons compared to last year resulted on
account of: |
|
| a)
Decrease in sugarcane crushed by 72,362 M. Tons and; |
|
| b)
Decrease in sugar recovery to 7.55% from 8.04% in 1998. |
|
|
| Decline
in sugar recovery resulted mainly because of viral attack on sugarcane crop
and excessive cultivation of |
|
| Indian
variety of cane. |
|
|
| As
a result of both decline in sugarcane crushed and sugar recovery, your
company incurred loss during the year, |
|
| and
marginal increase in average sales price could not offset the increase in
overall costs. |
|
|
| CURRENT
YEAR'S PROSPECTS |
|
|
| Area
of sugarcane in the country was less by about 15 % to 20 % than the previous
year's acreage. In addition, per |
|
| acre
yield of sugarcane also decreased by 20 % to 25 % compared to previous year's
due to no rain fall and |
|
| discontinuation
of flat rate for agricultural tube wells. This resulted in lesser
availability of sugarcane to the Mills. |
|
|
| Growers
exploited shortage of the cane, and created a price war between the Mills.
Consequently, Mills have to pay |
|
| about
25 % more for sugarcane than the Government announced support price. |
|
|
| Despite
the above stated problems, your management has managed to crush 469,252
(M.T.) Sugarcane with slight |
|
| increase
in recovery percentage. Results of the current year are expected to show
improvement as there has been |
|
| some
increase in selling rates of sugar in local market over last year. |
|
|
| Finally,
we appeal to the Government that the availability of sugar should be
estimated carefully, and only actual |
|
| shortfall
may be allowed to be imported, to save precious foreign exchange of the
country. |
|
|
| LISTING
WITH THE CENTRAL DEPOSITORY COMPANY OF PAKISTAN LTD. ( CDC ) |
|
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| Company
has listed itself with the C.D.C to facilitate its shareholders for smooth
transaction of shares at Stock |
|
| Exchanges. |
|
|
| AUDITORS |
|
|
| The
present auditors M/S Saeed Methani & Co., Chartered Accountants retire
and being eligible, offer themselves |
|
| for
reappointment. |
|
|
| YEAR
2000 COMPLIANCE OF COMPUTER SYSTEM |
|
|
| The
company took measures to comply with the requirements of Y2K, and is now Y2K
compliant. |
|
|
| THE
PATTERN OF SHAREHOLDING |
|
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| The
pattern of shareholding as on September 30, 1999 is annexed. |
|
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| APPRECIATION |
|
|
| The
management employees relations remained cordial and the Directors record
their appreciation for their devotion, |
|
| sense
of responsibility and loyalty. |
|
|
| On
behalf of Board of Directors |
|
|
| Lahore |
|
Muhammad Ilyas Miraj |
|
| April 03, 2000 |
|
Chief Executive |
|
|
|
| PATTERN
OF HOLDING OF SHARES |
|
| HELD
BY THE SHAREHOLDERS AS AT 30TH SEP. 1999 |
|
|
| Shareholding |
|
|
| No. of Shareholders |
From |
To |
Total Shares Held |
|
|
| 111 |
|
1 |
100 |
11100 |
|
| 2705 |
|
101 |
500 |
1310100 |
|
| 488 |
|
501 |
1000 |
486200 |
|
| 685 |
|
1001 |
5000 |
1993000 |
|
| 156 |
|
5001 |
10000 |
1262400 |
|
| 41 |
|
10001 |
15000 |
518300 |
|
| 37 |
|
15001 |
20000 |
696500 |
|
| 23 |
|
20001 |
25000 |
522800 |
|
| 19 |
|
25001 |
30000 |
555300 |
|
| 2 |
|
30001 |
35000 |
67000 |
|
| 5 |
|
35001 |
40000 |
192900 |
|
| 3 |
|
40001 |
45000 |
132000 |
|
| 5 |
|
45001 |
50000 |
242100 |
|
| 1 |
|
50001 |
55000 |
50500 |
|
| 1 |
|
55001 |
60000 |
60000 |
|
| 1 |
|
70001 |
75000 |
75000 |
|
| 1 |
|
75001 |
80000 |
80000 |
|
| 1 |
|
80001 |
85000 |
85000 |
|
| 2 |
|
95001 |
100000 |
200000 |
|
| 1 |
|
140001 |
145000 |
145000 |
|
| 1 |
|
270001 |
275000 |
272800 |
|
| 1 |
|
300001 |
305000 |
304100 |
|
| 1 |
|
305001 |
310000 |
310000 |
|
| 1 |
|
320001 |
325000 |
324800 |
|
| 3 |
|
330001 |
335000 |
1000500 |
|
| 2 |
|
395001 |
400000 |
797500 |
|
| 1 |
|
445001 |
450000 |
447400 |
|
| 1 |
|
495001 |
500000 |
498300 |
|
| 1 |
|
595001 |
600000 |
600000 |
|
| 1 |
|
615001 |
620000 |
617600 |
|
| 1 |
|
640001 |
645000 |
640500 |
|
| 1 |
|
665001 |
670000 |
667000 |
|
| 1 |
|
695001 |
700000 |
697000 |
|
| 1 |
|
710001 |
415000 |
712500 |
|
| 2 |
|
765001 |
770000 |
1537000 |
|
| 1 |
|
1000001 |
1005000 |
1001000 |
|
| 2 |
|
1965001 |
1970000 |
3937500 |
|
| 1 |
|
2660001 |
2665000 |
3663500 |
|
| 1 |
|
3040001 |
3045000 |
3041000 |
|
| 1 |
|
3640001 |
3645000 |
3644800 |
|
| ---------- |
|
---------- |
---------- |
---------- |
|
| 4313 |
|
32400000 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
|
|
|
| Categories
of Shareholders |
Number |
Shares Held |
Percentage |
|
|
| individuals |
|
4285 |
24,674,500 |
76.16 |
|
| Investment
Companies |
7 |
539,400 |
1.66 |
|
| Insurance
Companies |
2 |
622,600 |
1.92 |
|
| Joint
Stock Companies |
2 |
3,648,800 |
11.26 |
|
| Financial
Institutions |
5 |
212,200 |
0.654 |
|
| Modarabas |
|
1 |
1,800 |
0.01 |
|
| Leasing
Companies |
3 |
497,400 |
1.54 |
|
| Others |
|
8 |
2,203,300 |
6.80 |
|
|
---------- |
---------- |
---------- |
|
| Total |
|
4313 |
32,400,000 |
100.00 |
|
|
---------- |
---------- |
---------- |
|
| Others |
|
| Government
Authorities |
|
| Modaraba
Management Companies |
5 |
698,000 |
2.15 |
|
| Non-Resident |
|
2 |
1,195,300 |
3.69 |
|
| Trust |
|
1 |
310,000 |
0.96 |
|
|
---------- |
---------- |
---------- |
|
| Total |
|
8 |
2,203,300 |
6.80 |
|
|
---------- |
---------- |
---------- |
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed Balance Sheet of HASEEB WAQAS SUGAR MILLS LIMITED as
at September 30, |
|
| 1999
and the related Profit and Loss Account and the 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 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 respec- |
|
| tively
give a true and fair view of the state of the Company's affairs as at
September 30, 1999 and of the loss |
|
| and
the Cash Flow Statement for the year then ended; and |
|
|
| (d)
In our opinion, no Zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
|
|
| Lahore |
|
Sd/- |
|
| April 01,2000 |
|
Saeed Methani & CO., |
|
|
CHARTERED ACCOUNTANTS |
|
|
|
| BALANCE
SHEET AS AT SEPTEMBER 30, 1999 |
|
|
|
NOTE |
1999 |
1998 |
|
|
|
RUPEES |
RUPEES |
|
| CAPITAL
AND RESERVES |
|
|
| Authorised
Capital |
|
| 35,000,000
Ordinary Shares of RS. 10/- each |
|
35,000,000 |
35,000,000 |
|
|
========== |
========== |
|
|
| Issued,
Subscribed and Paid up |
|
350,000,000 |
324,000,000 |
|
| Reserves |
|
| Surplus
on Revaluation on Fixed Assets |
|
517,441,565 |
-- |
|
| Un-appropriated
Profit/(Loss) |
|
(78,087,633) |
(71,468,719) |
|
|
----------- |
----------- |
|
|
763,353,932 |
342,531,281 |
|
|
|
|
| LONG
TERM LOANS |
|
6 |
260,174,432 |
247,675,958 |
|
|
|
|
| LIABILITIES
AGAINST ASSETS SUBJECT |
|
|
|
| TO
FINANCE LEASE |
|
7 |
57,370,046 |
31,099,040 |
|
|
| DEFERRED
LIABILITIES |
|
8 |
78,345,416 |
-- |
|
|
| CURRENT
LIABILITIES |
|
|
| Short
Term Loans |
|
9 |
350,306,226 |
281,979,123 |
|
| Current
Portion of Long Term Liabilities |
|
10 |
127,453,562 |
134,217,684 |
|
| Creditors,
Provisions and Accrued Liabilities |
|
11 |
140,076,191 |
265,552,197 |
|
| Provision
for Taxation |
|
10,557,696 |
6,941,875 |
|
|
---------- |
---------- |
|
|
628,393,675 |
688,690,879 |
|
|
---------- |
---------- |
|
| CONTINGENCIES
AND COMMITMENTS |
|
12 |
1,787,637,501 |
1,309,997,158 |
|
|
=========== |
=========== |
|
| PROPERTY
AND ASSETS |
|
|
| Fixed Assets |
|
13 |
1,109,932,365 |
600,857,588 |
|
| Assets
Subject to Finance Lease |
|
14 |
169,351,261 |
143,333,657 |
|
| Capital
Work in Progress |
|
15 |
-- |
5,418,415 |
|
|
|
---------- |
---------- |
|
|
|
1,279,283,626 |
749,609,660 |
|
| LONG
TERM DEPOSITS |
|
|
|
|
2,159,500 |
2,159,500 |
|
| DEFERRED
EXPENSES |
|
16 |
-- |
1,655,500 |
|
|
| CURRENT
ASSETS |
|
|
| Stores
and Spares |
|
65,153,772 |
73,589,4O3 |
|
| Stock in Trade |
|
333,280,9O7 |
309,718,950 |
|
| Advances,
Deposits and Prepayments |
|
17 |
100,715,797 |
162,524,455 |
|
| Cash
and Bank Balances |
|
18 |
7,043,899 |
10,739,690 |
|
|
---------- |
---------- |
|
|
506,194,375 |
556,572,498 |
|
|
|
|
|
---------- |
---------- |
|
|
1,787,637,501 |
1,309,997,158 |
|
|
========== |
========== |
|
| The
annexed notes from 1 to 32 form an integral part of the financial statements. |
|
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 1999 |
|
|
|
|
1999 |
1998 |
|
|
NOTE |
RUPEES |
RUPEES |
|
|
| SALES |
|
19 |
1,144,461,720 |
1,149,784,330 |
|
| COST
OF SALES |
|
20 |
995,875,718 |
985,211,709 |
|
|
|
----------- |
----------- |
|
| GROSS
PROFIT |
|
148,586,002 |
164,572,621 |
|
| OPERATING
EXPENSES |
|
| Administrative
Expenses |
|
21 |
20,095,537 |
21,056,195 |
|
| Selling
Expenses |
|
22 |
27,840,874 |
36,125,576 |
|
|
|
----------- |
----------- |
|
|
|
47,936,411 |
57,181,771 |
|
|
|
----------- |
----------- |
|
| OPERATING
PROFIT |
|
|
100,649,591 |
107,390,850 |
|
| Non-Operating
.Income |
|
23 |
568,635 |
1,454,905 |
|
|
|
----------- |
----------- |
|
|
|
101,21 8,226 |
108,845,755 |
|
| Financial
Charges |
|
24 |
163,254,947 |
147,719,707 |
|
|
|
----------- |
----------- |
|
| NET
PROFIT/(LOSS) BEFORE TAXATION |
|
|
(62,036,721) |
(38,873,952) |
|
| Prior
Year's Adjustment |
|
309,667,372 |
-- |
|
|
----------- |
----------- |
|
|
(93,003,093) |
(38,873,952) |
|
|
----------- |
----------- |
|
| Provision
For Taxation |
|
3,615,821 |
6,941,875 |
|
|
----------- |
----------- |
|
| NET
PROFIT/(LOSS) AFTER TAXATION |
|
(96,618,914) |
(45,815,827) |
|
| Net
Profit / (Loss) Brought Forward |
|
(71,468,719) |
(25,652,892) |
|
|
----------- |
----------- |
|
| PROFIT/(LOSS)
AVAILABLE FOR APPROPRIATION |
|
(168,087,633) |
(71,468,719) |
|
| Transferred
From General Reserve |
|
90,000,000 |
-- |
|
|
----------- |
----------- |
|
| UN-APPROPRIATED
PROFIT/(LOSS) CARRIED FORWARD |
|
(78,087,633) |
(71,468,719) |
|
|
========== |
========== |
|
| The
annexed notes from 1 to 32 form an integral part of the financial statements. |
|
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED SEPTEMBER 30, 1999 |
|
|
|
1999 |
1998 |
|
|
|
RUPEES |
RUPEES |
|
|
| a)
CASH FROM OPERATING ACTIVITIES |
|
| Net
Profit/(Loss) Before Taxation |
|
(62,036,721) |
(45,815,827) |
|
| Add: |
|
|
|
| Items
not involving Movements of Funds |
|
|
|
| Depreciation: |
|
|
|
| Operating
Assets |
|
36,981,904 |
35,309,857 |
|
| Assets
subject to Finance Lease |
|
4,077,922 |
6,828,704 |
|
| Amortisation
of Deferred Cost |
|
1,655,500 |
1,655,500 |
|
|
---------- |
---------- |
|
|
42,715,326 |
43,794,061 |
|
|
---------- |
---------- |
|
| OPERATING
PROFIT/(LOSS) BEFORE |
|
| WORKING
CAPITAL CHANGES |
|
(19,321,395) |
(2,021,766) |
|
|
| CHANGES
IN WORKING CAPITAL |
|
| (Increase)/Decrease
in Current Assets: |
|
|
| Stores
and Spares |
|
8,435,631 |
3,068,501 |
|
| Stock in Trade |
|
(23,561,957) |
(120,296,601) |
|
| Advances,
Deposits and Prepayments |
|
61,808,658, |
(31,263,3,91) |
|
|
---------- |
---------- |
|
|
46,682,332 |
(148,491,491 ) |
|
|
|
|
| Increase/(Decrease)
In Current Liabilities |
|
|
| Short
Term Borrowing |
|
68,327,103 |
109,133, 8471 |
|
| Creditors
and Accrued Liabilities |
|
(46,690,845) |
48,266,625 |
|
|
---------- |
---------- |
|
|
21,636,258 |
157,400,472 |
|
|
---------- |
---------- |
|
| Increase
in Working Capital |
|
68,318,590 |
8,908,981 |
|
|
---------- |
---------- |
|
| NET
CASH FROM OPERATING ACTIVITIES |
|
48,997,195 |
6,887,215 |
|
|
|
|
| b)
CASH FLOW FROM INVESTING ACTIVITIES |
|
|
|
| Fixed
Capital Expenditure |
|
(53,292,227) |
(5,964,979) |
|
| Sale
of Fixed Assets |
|
50,346,095 |
-- |
|
| Capital
Work in Progress |
|
-- |
(56,186) |
|
| Long
Term Deposits |
|
-- |
4,850,000 |
|
|
---------- |
---------- |
|
| NET
CASH USED IN INVESTING ACTIVITIES |
|
(2,946,132) |
(1,171,165) |
|
|
| c)
CASH FROM FINANCING ACTIVITIES |
|
| Long
Term Loans Repayments |
|
(26,485,666) |
55,306,291 |
|
| Payment
to leasing companies |
|
(17,970,290) |
(45,442,308) |
|
| Dividend
Payments |
|
(5,290,979) |
(6,515,784) |
|
|
---------- |
---------- |
|
|
(49,746,935) |
3,348,199 |
|
| NET
(DECREASE) /INCREASE IN CASH AND |
|
---------- |
---------- |
|
| BANK
BALANCES (a+b+c) |
|
(3,695,872) |
9,064,249 |
|
|
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