| Kohinoor Power Company Limited |
|
|
|
|
|
|
|
| Annual
Report 1999 |
|
|
|
| CONTENTS |
|
|
| Company
Information |
|
| Notice
of Annual General Meeting |
|
| Directors'
Report to the Shareholders |
|
| Pattern
of Holding of Shares |
|
| Auditors'
Report to the Members |
|
| Balance
Sheet |
|
| Profit
& Loss Account |
|
| Cash
Flow Statement |
|
| Notes
to the Accounts |
|
|
|
| COMPANY
INFORMATION |
|
|
| BOARD
OF DIRECTORS |
|
|
| Mr.
M. Naseem Saigol |
|
Chairman/Chief Executive |
|
| Mr.
M. Azam Saigol |
|
| Mr.
Shahid Sethi |
|
| Mr.
Imran Iqbal |
|
| Mr.
Muhammad Ilyas Bajwa |
|
| Mr.
Muhammad Asif Bajwa |
|
| Syed
Arshad A'la |
|
(ICP Nominee) |
|
|
| COMPANY
SECRETARY |
|
|
| Sheikh
Muhammad Shakeel, ACA |
|
|
| AUDITORS |
|
|
| M/s
Manzoor Hussain Mir & Co. |
|
| Chartered
Accountants |
|
|
| BANKERS |
|
|
| Askari
Commercial Bank Limited |
|
| Faysal
Bank Limited |
|
| Habib
Bank Limited |
|
| Muslim
Commercial Bank Limited |
|
| National
Development Finance Corporation |
|
| National
Bank of Pakistan |
|
| Union
Bank Limited |
|
|
| REGISTERED
OFFICE |
|
|
| 06-Egerton
Road, Lahore |
|
| Tel:
6306131 (5 Lines) |
|
|
| WORKS |
|
|
| Kohinoor
Nagar, |
|
| Faisalabad |
|
|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
|
| Notice
is hereby given that the Eighth Annual General Meeting of the Shareholders of
Kohinoor Power |
|
| Company
Limited will be held on Friday December 31, 1999 at 10:00 A.M. at 14
Kilometers Ferozepur |
|
| Road,
Lahore to transact the following business:- |
|
|
| 1.
To confirm the minutes of the Seventh Annual General Meeting held on December
31, 1998. |
|
|
| 2.
To receive and adopt the Annual Audited Accounts for the year ended June 30,
1999 alongwith |
|
| Directors'
and Auditors' Reports thereon. |
|
|
| 3.
To approve payment of Cash Dividend @ 12.5% (Rs. 1.25 per share) as
recommended by the Board. |
|
|
| 4.
To appoint Auditors to hold office till the conclusion of the next Annual
General Meeting and to fix their |
|
| remuneration. |
|
|
| 5.
Any other business with the permission of the Chair. |
|
|
|
By Order of the Board |
|
|
| Lahore:
December 10, 1999 |
|
(SHEIKH MUHAMMAD SHAKEEL) |
|
|
Company Secretary |
|
|
| 1.
The Share Transfer Books of the Company will remain closed from December 31,
1999 to |
|
| 06
January 2000 (both days inclusive). Transfers received in order at 06-Egerton
Road, Lahore the |
|
| Registered
Office of the Company upto the close of business on December 30, 1999 will be
treated in |
|
| time
for the payment of dividend to the transferees. |
|
|
| 2.
A member entitled to attend and vote at this Meeting may appoint another
member as proxy. Proxies |
|
| in
order to be effective, must be received at the Registered Office of the
Company not later than forty- |
|
| eight
hours before the time of the meeting and must be duly stamped, signed and
witnessed. |
|
|
| 3.
Members of all recognized fiqahs may file with the Company their declaration
(if any) for Non-Deduction |
|
| of Zakat. |
|
|
| 4.
Member are requested to notify the Company change in their addresses, if any. |
|
|
| 5.
Members whose shares are deposited with Central Depository System are
requested to bring their |
|
| original
National Identity Card alongwith their Account Number in Central Depository
System for |
|
| attending
the meeting. |
|
|
|
| DIRECTORS
REPORT |
|
|
| The
Directors of your company feel pleasure in presenting before you 8th Annual
report of the company |
|
| together
with Audited Accounts for the year ended June 30, 1999. |
|
|
| OPERATIONAL
RESULTS |
|
|
| Your
Company operates a 15 MW power generating plant. The operational results of
the plant during the |
|
| year
under review are satisfactory. The plant generated and distributed
electricity 91.598 million units (kWh) |
|
| as
compared to generation and distribution of electricity 87.931 million units
(kWh) in the previous year. The |
|
| company
attained slight improvement in its utilization mainly due to increased demand
from single customer |
|
| i.e
Kohinoor Industries Limited. |
|
|
| FINANCIAL
RESULTS |
|
|
| The
revenue generated from the sale of electricity is Rs. 296.622 million as
against Rs. 275.582 million |
|
| during
the previous year. The company also registered a slight increase in gross
profit and net profit. The |
|
| financial
results of the company for the year under review are summarized below: |
|
|
|
|
|
1999 |
1998 |
|
|
|
|
(Rupees in
Thousand) |
|
|
| Gross profit |
|
96,601 |
89,402 |
|
| Administrative
& General Expenses |
|
1,977 |
1,377 |
|
|
----------- |
----------- |
|
| Operating
profit |
|
94,624 |
88,025 |
|
| Financial
charges |
|
58,840 |
54,709 |
|
|
----------- |
----------- |
|
|
35,784 |
33,316 |
|
| Other
income |
|
1,777 |
840 |
|
|
----------- |
----------- |
|
|
37,561 |
34,156 |
|
| Worker's
profit participation fund |
|
1,878 |
1,707 |
|
|
----------- |
----------- |
|
| Profit
for the year |
|
35,683 |
32,449 |
|
| Un-appropriated
profit brought forward |
|
923 |
474 |
|
| Appropriations |
|
----------- |
----------- |
|
| Proposed
cash dividend @ 12.5% (1998 @ 7.5%) |
|
15,000 |
9,000 |
|
| Transferred
to General Reserves |
|
20,000 |
23,000 |
|
|
----------- |
----------- |
|
|
35,000 |
32,000 |
|
|
----------- |
----------- |
|
| Un-appropriated
profit |
|
1,606 |
923 |
|
|
|
========== |
========== |
|
| DIVIDEND |
|
|
|
| Your
directors recommend a cash dividend @. 12.5% (Rs 1.25 per share) out of the
profits earned during |
|
| the year. |
|
|
| EARNING
PER SHARE |
|
|
| In
the light of the financial results for the year under review the earning per
share comes to |
|
| Rs.2.97
(1998-Rs.2.7). |
|
|
| FUTURE
PROSPECTS |
|
|
| During
September 1999 the buyer M/S Kohinoor Industries Limited has reduced its
production capacity by |
|
| scrapping
outdated 60,000 spindles. That has resulted reduction in electric demand from
the buyer. In order |
|
| to
eliminate its adverse effect on company's profitability, the directors has
finally decided to relocate one |
|
| electric
generating set of 5 MW from Faisalabad to Chunian Industrial Estate for
supplying power to two |
|
| associated
companies namely Azam Textile Mills Limited and Saritow Spinning Mills
Limited who are presently |
|
| getting
supply from Genertech Pakistan Limited. Negotiations with the lenders are in
process and hopefully |
|
| these
will be finalized by 1st week of January. The directors are also studying a
proposal to supply electricity |
|
| to
neighboring "Kohinoor Town" and Proposed "Kohinoor Commercial
District". This will ultimately increase |
|
| the
future demand of electric power and further improve the capacity utilization
of the generating sets. |
|
|
| YEAR
2000 COMPLIANCE |
|
|
| The
Directors have the pleasure to state that the computers and software of the
Company are year 2000 |
|
| compliant. |
|
|
|
| AUDITORS
AND THEIR REPORT |
|
|
| The
present auditors M/s. Manzoor Hussain Mir & Company, Chartered
Accountants, retire and being eligible, |
|
| offer
themselves for re-appointment. |
|
|
| Provision
has not been made for income tax charged by the taxation authority on the
interest accrued to the |
|
| Company
during the years ended 1992-93, 1995-96 and 1996-97. All profits and gains
derived by the Company |
|
| are
exempt under clause 176 of the second schedule of the income Tax Ordinance,
1979. We have filed |
|
| appeals
before CIT (Appeals) and a constitutional writ before Lahore High Court
against taxability of interest. |
|
| Therefore,
no provision has been taken into account. Similarly, the Company has filed
appeal against penalty |
|
| imposed
under Corporate Assets Tax Law where the matter is subjudice. |
|
|
| No
interest has been charged on the amount recoverable from the customer mainly
due to the substance of |
|
| the
transaction (trade debt) on the one hand and reduced discount rate allowed to
buyer on partial payment |
|
| of
bills as per agreement dated December 08, 1997 on the other hand. However,
the company is trying to |
|
| recover
the full value of the bills from the customer and the customer is doing
prompt payments from the last |
|
| six months. |
|
|
| PATTERN
OF HOLDING OF SHARES |
|
|
| A
statement showing the pattern of holding of shares as on June 30, 1999 is
appended herewith. |
|
|
| ACKNOWLEDGMENT |
|
|
| We
wish to thank our banks & financial institutions and shareholders for
their continued support and confidence |
|
| on
the company. We are pleased' to record our appreciation of the services
rendered by the employees and |
|
| hope
that the same spirit of devotion and cooperation will continue in future. |
|
|
|
For and on behalf of the
Board |
|
|
| Lahore |
|
| December
10,1999 |
|
CHIEF EXECUTIVE |
|
|
|
| PATTERN
OF HOLDING OF SHARES |
|
| HELD
BY THE SHAREHOLDERS, AS AT JUNE 30, 1999 |
|
|
| NO. OF |
|
SHAREHOLDING |
TOTAL |
|
| SHAREHOLDERS |
FROM |
|
TO |
SHARES HELD |
|
|
| 141 |
1 |
-- |
100 Shares |
8,290 |
|
| 313 |
101 |
-- |
500 Shares |
101,250 |
|
| 530 |
501 |
-- |
1000 Shares |
409,575 |
|
| 482 |
1001 |
-- |
5000 Shares |
1,088,320 |
|
| 87 |
5001 |
-- |
10000 Shares |
661,545 |
|
| 29 |
10001 |
-- |
15000 Shares |
370,875 |
|
| 12 |
15001 |
-- |
20000 Shares |
205,750 |
|
| 5 |
20001 |
-- |
25000 Shares |
108,180 |
|
| 7 |
25001 |
-- |
30000 Shares |
192,850 |
|
| 5 |
30001 |
-- |
35000 Shares |
160,900 |
|
| 5 |
35001 |
-- |
40000 Shares |
184,000 |
|
| 3 |
45001 |
-- |
50000 Shares |
141,225 |
|
| 1 |
55001 |
-- |
60000 Shares |
59,000 |
|
| 1 |
80001 |
-- |
85000 Shares |
83900 |
|
| 2 |
85001 |
-- |
90000 Shares |
175,080 |
|
| 1 |
90001 |
-- |
95000 Shares |
90,840 |
|
| 1 |
95001 |
-- |
100000 Shares |
100,000 |
|
| 1 |
145001 |
-- |
150000 Shares |
150,000 |
|
| 1 |
155001 |
-- |
160000 Shares |
158,160 |
|
| 1 |
165001 |
-- |
170000 Shares |
168,000 |
|
| 1 |
190001 |
-- |
195000 Shares |
190,060 |
|
| 1 |
215001 |
-- |
220000 Shares |
217,700 |
|
| 1 |
245001 |
-- |
250000 Shares |
248,500 |
|
| 1 |
330001 |
-- |
335000 Shares |
334,500 |
|
| 1 |
355001 |
-- |
360000 Shares |
355,500 |
|
| 1 |
560001 |
-- |
565000 Shares |
563,820 |
|
| 1 |
2695001 |
-- |
2700000 Shares |
2,700,000 |
|
| 1 |
2770001 |
-- |
2775000 Shares |
2,772,180 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
|
|
| 1636 |
|
12,000,000 |
|
| ========== |
========== |
========== |
========== |
========== |
|
|
|
|
|
| Note:
The slabs not applicable, have not been shown. |
|
|
|
| CATEGORIES
OF SHAREHOLDERS |
NUMBER |
SHARES HELD |
PERCENTAGE |
|
|
|
|
| Individuals |
|
1570 |
3402195 |
28.35 |
|
| Investment
Companies |
|
10 |
606665 |
5.06 |
|
| Insurance
Companies |
|
2 |
565820 |
4.72 |
|
| Joint
Stock Companies |
|
24 |
5897155 |
49.14 |
|
| Financial
Institutions |
|
9 |
854760 |
7.12 |
|
| Foreign
Companies |
|
7 |
457105 |
3.81 |
|
| Leasing
& Modaraba Companies |
14 |
216300 |
1.80 |
|
|
---------- |
---------- |
---------- |
|
|
1636 |
12000000 |
100.00 |
|
|
========== |
========== |
========== |
|
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of Kohinoor Power Company 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 purposes of our audit and,
after due verification |
|
| thereof,
we report that: |
|
|
| (i)
No interest has been charged on amount recoverable from Kohinoor Industries
Limited; and attention |
|
| in
this behalf is invited to Note No. 15. |
|
|
| (ii)
No Provision is created for the taxes indicated at Note No. 10.2 aggregating
to Rs. 10.298 Million. |
|
| Subject
to above 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
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 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 under section 7 of that
Ordinance. |
|
|
| Lahore |
|
(MANZOOR HUSSAIN MIR
& co.) |
|
| December
10,1999 |
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 1999 |
|
|
|
NOTE |
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
|
| SHARE
CAPITAL AND RESERVES |
|
| SHARE
CAPITAL |
|
(3) |
120,000,000 |
120,000,000 |
|
|
|
|
|
| RESERVES |
|
(4) |
246,000,000 |
226,000,000 |
|
| UN-APPROPRIATED
PROFIT |
|
|
1,606,396 |
923,416 |
|
|
|
========== |
========== |
|
|
|
367,606,396 |
346,923,416 |
|
| LONG
TERM LOANS |
|
(5) |
10,392,621 |
67,420,197 |
|
| LIABILITIES
AGAINST ASSETS SUBJECT |
|
|
| TO
FINANCE LEASE |
|
(6) |
11,121,350 |
23,805,479 |
|
|
| CURRENT
LIABILITIES |
|
|
| SHORT
TERM LOANS |
|
(7) |
105,192,086 |
77,665,024 |
|
|
|
|
|
| CURRENT
PORTION OF LONG TERM |
|
|
|
|
| LIABILITIES |
|
(8) |
158,083,135 |
115,192,461 |
|
|
|
|
|
| CREDITORS,
PROVISIONS AND ACCRUED |
|
|
|
| LIABILITIES |
|
(9) |
59,521,683 |
24,810,891 |
|
|
|
|
| PROPOSED
DIVIDEND |
|
15,000,000 |
9,000,000 |
|
|
---------- |
---------- |
|
|
337,796,904 |
226,668,376 |
|
|
| CONTINGENCIES
& COMMITMENTS |
|
(10) |
-- |
-- |
|
|
---------- |
---------- |
|
|
726,917,271 |
664,817,468 |
|
|
========== |
========== |
|
|
| OPERATING
ASSETS-TANGIBLE |
|
| OWN |
|
(11) |
186,504,614 |
206,968,135 |
|
| ASSETS
SUBJECT TO FINANCE LEASE |
|
(12) |
45,441,000 |
50,490,000 |
|
| LONG
TERM INVESTMENTS |
|
(13) |
-- |
46,800,000 |
|
| LONG
TERM DEPOSITS |
|
|
6,800,000 |
6,800,000 |
|
| CURRENT
ASSETS |
|
|
|
|
| STORES
AND SPARES |
|
(14) |
26,147,361 |
36,365,706 |
|
| TRADE
DEBTS |
|
(15) |
389,681,434 |
294,312,142 |
|
| ADVANCES,
DEPOSITS AND |
|
|
|
| PREPAYMENTS |
|
(16) |
24,902,488 |
22,392,062 |
|
|
| SHORT
TERM INVESTMENT |
|
(17) |
46,800,000 |
-- |
|
| CASH
AND BANK BALANCES |
|
(18) |
640,374 |
689,423 |
|
|
|
---------- |
---------- |
|
|
488,171,657 |
353,759,333 |
|
|
|
|
|
---------- |
---------- |
|
|
726,917,271 |
664,817,468 |
|
|
========== |
========== |
|
| The
annexed notes (1) to (29) form an integral part of these financial
statements. |
|
|
|
| Chief
Executive |
|
Director |
|
(MANZOOR HUSSAIN MIR
& co.) |
|
|
Chartered Accountants |
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 1999 |
|
|
|
NOTE |
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
|
| SALES |
|
(19) |
296,622,187 |
275,582,298 |
|
| COST
OF SALES |
|
(20) |
200,020,266 |
186,179,972 |
|
|
|
|
--------- |
--------- |
|
| GROSS
PROFIT |
|
|
96,601,921 |
89,402,326 |
|
| OPERATING
EXPENSES |
|
|
|
| Administrative
& General |
|
(21) |
1,977,528 |
1,376,637 |
|
| Financial |
|
(22) |
58,840,140 |
54,709,012 |
|
|
|
--------- |
--------- |
|
|
60,817,668 |
56,085,649 |
|
|
--------- |
--------- |
|
| OPERATING
PROFIT |
|
35,784,253 |
33,316,677 |
|
| OTHER
INCOME |
|
1,776,779 |
840,155 |
|
|
--------- |
--------- |
|
|
37,561,032 |
34,156,832 |
|
| WORKERS
PROFIT PARTICIPATION FUND |
|
1,878,052 |
1,707,842 |
|
|
|
--------- |
--------- |
|
| PROFIT
BEFORE TAXATION |
|
35,682,980 |
32,448,990 |
|
| UN-APPROPRIATED
PROFIT BROUGHT |
|
| FORWARD |
|
923,416 |
474,426 |
|
|
--------- |
--------- |
|
| PROFIT
AVAILABLE FOR APPROPRIATION |
|
36,606,396 |
32,923,416 |
|
| APPROPRIATIONS: |
|
|
| Proposed
Dividend @ 12.5% (1998@ 7.5%) |
|
| i.e.
Rs. 1.25 Per Ordinary share of Rs.10 |
|
15,000,000 |
9,000,000 |
|
|
| Transferred
to general reserve |
|
20,000,000 |
23,000,000 |
|
|
--------- |
--------- |
|
|
35,000,000 |
32,000,000 |
|
| UN-APPROPRIATED
PROFIT CARRIED TO |
|
--------- |
--------- |
|
| BALANCE
SHEET |
|
1,606,396 |
923,416 |
|
|
========== |
========== |
|
| EARNING
PER SHARE |
|
(25) |
2.97 |
2.70 |
|
|
========== |
========== |
|
| The
annexed notes (1) to (29) form an integral part of these financial
statements. |
|
|
| Chief
Executive |
|
Director |
|
|
| Auditors'
Report Annexed |
|
(MANZOOR HUSSAIN MIR
& co.) |
|
|
Chartered Accountants |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED JUNE 30, 1999 |
|
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
| CASH
FLOWS FROM OPERATING ACTIVITIES |
|
|
| Net
profit before taxation |
|
35,682,980 |
32,448,990 |
|
| adjustment
for: |
|
| Depreciation |
|
25,767,021 |
28,565,178 |
|
|
| Financial
charges |
|
58,840,140 |
54,709,012 |
|
|
---------- |
---------- |
|
| Operating
profit before working capital changes |
|
120,290,141 |
115,723,180 |
|
| (Increase)/decrease
in stores and spares |
|
10,218,345 |
(5,374,029) |
|
| (Increase)/decrease
in trade debt |
|
(95,369,292) |
(64,588,815) |
|
| (Increase)/decrease
in advances prepayment and receivables |
(2,510,426) |
56,512 |
|
| Increase/(decrease)
in creditors, accrued and other liabilities |
|
1,001,421 |
(1,594,1 64) |
|
|
---------- |
---------- |
|
|
(86,659,952) |
(71,500,496) |
|
|
---------- |
---------- |
|
| Cash
generated from operations |
|
33,630,189 |
44,222,684 |
|
|
|
|
| Financial
charges paid |
|
(25,130,769) |
(49,835,788) |
|
|
---------- |
---------- |
|
| NET
CASH FROM OPERATING ACTIVITIES |
|
8,499,420 |
(5,613,104) |
|
|
| CASH
FLOWS FROM INVESTING ACTIVITIES |
|
|
| Fixed
capital expenditure |
|
(254,500) |
(806,878) |
|
|
| CASH
FLOWS FROM FINANCING ACTIVITIES |
|
|
|
27,527,062 |
49,909,600] |
|
|
(20,785,242 |
(41,573,322) |
|
|
(9,000,000 |
-- |
|
| Repayment
of lease finance |
|
(1,532,595) |
(6,035,789) |
|
|
---------- |
---------- |
|
| Net
cash generated / (used) in financing activities |
|
(8,293,969) |
6,803,683 |
