| Ittehad Chemical Ltd - 2004 |
====================================================================================== BALANCE SHEET AS AT JUNE 30, 2004 ====================================================================================== 2004 2003 Notes (Rupees in thousand) ====================================================================================== ASSETS NON CURRENT ASSETS Tangible fixed assets 3 844,001 666,717 Mercury in cells 30,562 27,515 Mercury held for capital expenditure 2,044 1,228 Spares held for capital expenditure 4 1,962 82,620 878,569 778,280 Investments 5 57,705 57,538 Security deposits 11,962 6,808 Deferred cost 6 3,451 3,269 951,687 845,895 CURRENT ASSETS Stores, spares and loose tools 7 112,702 106,778 Stock in trade 8 40,340 40,395 Trade debts 9 205,995 148,748 Advances, deposits, prepayments and other receivables 10 146,834 151,306 Cash and bank balances 11 30,731 286,742 536,602 733,969 1,488,289 1,579,864 TOTAL ASSETS EQUITY AND LIABILITIES CAPITAL AND RESERVES Authorized share capital 30,000,000 ordinary shares of Rs. 10/- each 300,000 300,000 Issued, subscribed and paid up capital 25,000,000 ordinary shares of Rs. 10/- each 12 250,000 250,000 Capital reserve - Fair value reserve 167 - Unappropriated profit 206,026 160,870 Shareholders' equity 456,193 410,870 NON CURRENT LIABILITIES Redeemable capital 13 249,800 249,900 Long term loans 14 257,885 368,945 Liabilities against assets subject to finance leases 15 - 218 Deferred liabilities 16 63,389 27,486 571,074 646,549 CURRENT LIABILITIES Current portion of long term liabilities 17 100,193 71,377 Short term running finances 18 181,481 56,967 Creditors, accrued and other liabilities 19 179,343 144,076 Refundable to unsuccessful subscribers of Term Finance Certificates (TFCs) - 212,525 Dividends 20 5 37,500 461,022 522,445 CONTINGENCIES AND COMMITMENTS 21 - - TOTAL EQUITY AND LIABILITIES 1,488,289 1,579,864 ====================================================================================== ====================================================================================== PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2004 ====================================================================================== Notes 2004 2003 (Rupees in thousand) ====================================================================================== Sales 22 1,513,920 1,321,118 Cost of sales 23 1,285,458 1,156,066 Gross profit 228,462 165,052 Other income 24 2,667 2,705 231,129 167,757 Administrative and selling expenses 25 96,201 71,891 Other charges 26 5,040 6,934 101,241 78,825 Operating profit 129,888 88,932 Financial charges 27 41,764 12,871 Net profit for the year 88,124 76,061 Taxation 28 Current 7,800 19,980 Prior -474 8,241 Deferred 35,642 698 42,968 28,919 Profit after taxation 45,156 47,142 Unappropriated profit brought forward 160,870 151,228 Balance available for appropriation 206,026 198,370 Appropriation: Proposed final dividend Nil (2003: at Rs.1.5 per share) - 37,500 Unappropriated profit carried forward 206,026 160,870 Basic and diluted earnings per share 29 Before provision for taxation Rs. 3.52 Rs. 3.04 After provision for taxation Rs. 1.81 Rs. 1.89 ====================================================================================== ====================================================================================== CASH FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 2004 ====================================================================================== 2004 2003 NOTE (Rupees in thousand) ====================================================================================== CASH FLOW FROM OPERATING ACTIVITIES Profit before taxation 88,124 76,061 Adjustments for items not involving movement of funds: Depreciationmortization 65,454 18,176 Provision for gratuity 301 273 Reversal of gratuity liability due to actuarial valuation - -276 Loss / (gain) on sale of fixed assets 14 -590 Mercury consumed 6,427 7,226 Provision for doubtful debts, advances and deposits 248 1,128 Financial charges 41,764 12,871 Deposits and advances written off 707 6 Amortization of deferred cost 801 - 203,840 114,875 Decrease/(Increase) in current assets Stores, spares and loose tools 74,734 -63,006 Stock in trade 55 -744 Trade debts -57,495 -44,813 Advances, deposits, prepayments and other Receivables 19,698 5,311 36,992 -103,252 (Decrease/Increase in current liabilities Refundable to unsuccessful subscribers of TFCs -212,525 212,525 Creditors, accrued and other liabilities 39,527 -21,174 67,834 202,974 Taxes paid -22,552 -35,766 Gratuity paid -40 -21 Net cash inflow from operating activities 45,242 167,187 CASH FLOW FROM INVESTING ACTIVITIES Additions to operating fixed assets -617,373 -63,727 Adjustment for items not involving movement of funds: Transfer from capital work in progress 571,427 52,621 Transfer from leased to owned assets 429 6,400 -45,517 -4,706 Additions to capital work in progress -198,235 -442,462 Proceeds from sale of fixed assets 110 564 Mercury purchases -10,090 -9,332 Long term investments - -1,280 Long term deposits -5,154 - Deferred cost -983 -3,269 Net cash outflow from investing activities -259,869 -460,485 CASH FLOW FROM FINANCING ACTIVITIES Redeemable capital -100 250,000 Long term loans -81,990 408,562 Liabilities against assets subject to finance leases -472 -3,167 Financial charges paid -45,841 -7,098 Dividend paid -37,495 -37,500 Short term running finances 124,514 -46,960 Net cash (outflow) / inflow from financing activities -41,384 563,837 Net (decrease)/increase in cash and cash equivalents -256,011 270,539 Cash and cash equivalents at the beginning of the year 286,742 16,203 Cash and cash equivalents at the end of the year 11 30,731 286,742 ====================================================================================== =======================================================================================
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED JUNE 30, 2004
=======================================================================================
Issued, Capital Un- Total
subscribed reserve - Fair appropriated
and paid up value reserve profit
capital
(Rupees in thousand)
=======================================================================================
Balance as at June 30, 2002 250,000 - 151,228 401,228
Profit after taxation for the - - 47,142 47,142
Proposed dividend - - (37,500) (37,500)
Balance as at June 30, 2003 250,000 - 160,870 410,870
Fair value gain - 167 - 167
Profit after taxation for the - - 45,156 45,156
Balance as at June 30, 2004 250,000 167 206,026 456,193
=======================================================================================NOTES TO THE ACCOUNTS FOR THE YEAR ENDED JUNE 30, 20041. LEGAL STATUS AND NATURE OF BUSINESS Ittehad Chemicals Limited (the Company) was incorporated on September 28, 1991 to takeover the assets of Ittehad Chemicals and Ittehad Pesticides under a Scheme of Arrangement dated June 18, 1992 as a result of which the Company became a wholly owned subsidiary of Federal Chemical and Ceramics Corporation (Private) Limited. The Company was privatised on July 03, 1995 when 90% of the shares were transferred to the buyer. The Company was listed on Karachi Stock Exchange on April 14, 2003 when sponsors of the Company offered 25% of the issued, subscribed and paid up share of the Company to the general public. The registered office of the Company is situated at 39, Empress Road, Lahore. The Company is engaged in business of manufacturing and selling caustic soda and other allied chemicals. 2. SIGNIFICANT ACCOUNTING POLICIES 2.1. STATEMENT OF COMPLIANCE These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan and the requirements of Companies Ordinance 1984. Approved accounting standards comprise of such International Accounting Standards (IASs) as notified under the provisions of the Companies Ordinance, 1984. Wherever the requirements of the Companies Ordinance 1984 or directives issued by the Securities and Exchange Commission of Pakistan (SECP) differ with requirements of these standards, the requirements of Companies Ordinance, 1984 or the requirements of the said directives take precedence. 2.2. COST CONVENTION These financial statements have been prepared under the historical cost convention without any adjustments for the effect of inflation or current values and for financial assets and financial liabilities, if any, in accordance with recognition and measurement criteria as laid down in IAS - 39. 2.3. STAFF RETIREMENT BENEFITS The Company operates an un-funded gratuity scheme for its permanent employees. Provision is based on actuarial valuation of the scheme carried out as at June 30, 2003 in accordance with IAS-19 "Employee Benefits" and the resulting vested portion of past service cost has been charged to income in the current year. Contribution is made to this scheme on the basis of actuarial recommendations. Actuarial gains and losses at each valuation date are charged to profit and loss account. Gratuity is payable to staff on completion of prescribed qualifying period of service under the scheme. A recognised provident fund scheme is also in operation, which covers all permanent employees. The Company and the employees make equal contributions. 2.4. TAXATION a) Current The charge for current year is higher of the amount computed on taxable income at the current rates of taxation after taking into account tax credits and rebates, if any, and minimum tax computed at the prescribed rate on turnover. The charge for current tax also includes adjustments, where considered necessary, to provision for tax made in previous years arising from assessments framed during the year for such years. b) Deferred Deferred tax is computed using the balance sheet liability method providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the liability is settled based on tax rates that have been enacted or subsequently enacted at the balance sheet date. A deferred tax asset is recognized only to the extent that it is probable that future taxable profit will be available and the credits can be utilized. 2.5. TANGIBLE FIXED ASSETS These are stated at cost less accumulated depreciation and impairment, if any, except land and capital work in progress which are stated at cost. Cost comprises of actual cost including exchange differences (Note: 2.15), interest and charges (Note: 2.16) and trial run operational results. Depreciation is charged on all fixed assets by applying the reducing balance method at the rates specified in fixed assets note. Depreciation on assets is charged from the month of addition while no depreciation is charged for the month in which assets are disposed off. Maintenance and normal repairs are charged to income as and when incurred while cost of major replacements and improvements, if any, are capitalized. Gains and losses on disposal and retirement of an asset are included in the profit and loss account. 2.6. ACCOUNTING FOR LEASES The Company accounts for assets acquired under financial leases by recording the assets and related liabilities. The amounts are determined on the basis of discounted value of total minimum lease payments and residual value of the assets at the end of the lease period to be paid by the Company. Financial charges are allocated to accounting periods in a manner so as to provide constant periodic rate of charge on the outstanding liability. Depreciation is charged at rates specified in the related note to write off the assets over its estimated useful life in view of certainty of the ownership of the assets at the end of the lease. 2.7. MERCURY IN CELLS This is stated at annual moving average cost. 2.8. MERCURY HELD FOR CAPITAL EXPENDITURE This is stated at annual moving average cost. 2.9. INVESTMENTS a) Subsidiaries Investment in subsidiary companies is carried at cost. However, provision for diminution in value is made, if considered permanent. b) Associate Investments in associated undertaking is stated at cost less impairment in value, if any, in pursuance to IAS.-28, "Accounting for Investments in Associates". c) Others Other investment is classified as" available for sale" and is recognized at cost, being the fair value of consideration given including acquisition charges. After initial recognition investments are measured at fair value. Gains and losses on investments available for sale, are recognized as separate component of equity until investments are sold, disposed off, or until the investment is determined to be impaired, at which time the accumulated gains / losses previously reported in equity are included in profit and loss of the Company. The fair value of publicly traded investment is based on quoted market prices at the balance sheet date. 2.10. DEFERRED COST Expenses incurred on issue of Term Finance Certificates (TFCs) are amortized over a period of five years from the date of issue of TFCs. 2.11. STORES AND SPARES Stores and spares are valued at moving average cost less provision for obsolescence as determined by the management. Items in transit are valued at cost comprising invoice values plus other charges paid thereon. 2.12. STOCK IN TRADE These are valued at lower of cost and net realizable value. Cost is determined as follows: Raw and packing materials - Moving average cost Raw and packing materials in transit - Invoice value plus other expenses incurred thereon Work in process - Cost of material as above plus proportionate production overheads Finished goods - Average cost of manufacture which includes proportionate production overheads including duties and taxes paid thereon, if any Net realizable value represents estimated selling prices in the ordinary course of business less expenses incidental to make the sale. 2.13. CASH AND CASH EQUIVALENTS For the purposes of cash flow statement, cash and cash equivalent consists of cash in hand and balances with banks net of borrowings not considered as being in the nature of financing activities. 2.14. IMPAIRMENT The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If such indication exists, the carrying amounts of such assets are reviewed to assess whether they are recorded in excess of their recoverable amount. Where carrying value exceeds recoverable amount, assets are written down to the recoverable amount. 2.15. FOREIGN CURRENCY TRANSLATION Assets and liabilities in foreign currencies, if any, are translated at exchange rates prevailing at the balance sheet date. Exchange gains and losses arising on repayments and translation of foreign currency loans are capitalized and incorporated in the cost of fixed assets acquired from the proceeds of these loans. Other exchange differences arising during the year are included in profits currently. 2.16. INTEREST AND CHARGES Interest and commitment charges on long term loans are capitalized for the period upto the date of commencement of commercial production of the respective plant and machinery acquired out of the proceeds of such loans. All other interest and charges are treated as expenses during the year. 2.17. TRADE DEBTS AND OTHER RECEIVABLES Trade debts and other receivables are carried at the amount billed / charged, less an estimate made for doubtful receivables based on review of outstanding amounts at the year end, if any. Provision is made against those having no activity during the last three years and is considered doubtful by the management. Balances considered bad and irrecoverable are written off when identified. 2.18. CASH AND BANK BALANCES Cash and bank balances are carried at cost. 2.19. TRADE AND OTHER PAYABLES Liabilities for trade and other amounts payable are carried at cost which is the fair value of the consideration to be paid in the future for the goods and services received. 2.20. PROVISIONS Provisions are recognized when the Company has a present, legal or constructive obligation as a result of past events and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount can be made. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimates. 2.21. REVENUE RECOGNITION Sales are recognised on despatch of goods to customers. Interest income is recognised on accrual basis. 2.22. RECOATING EXPENSES OF DSA PLANT Provision has been made in these accounts for the erosion of coating on the anodes during the year based on best estimates available. 2.23. FINANCIAL INSTRUMENTS All the financial assets and financial liabilities are recognized at the time when the Company becomes a party to the contractual provisions of the instrument. Any gains or losses on de-recogmtion of the financial assets and financial liabilities are taken to profit and loss account currently. 2.24. OFFSETTING OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES A financial asset and a financial liability is offset and the net amount is reported in the balance sheet if the Company has legally enforceable right to setoff the recognized amount and intend either to settle on a net basis or to realize the asset and settle the liability simultaneously. 2.25. TRANSACTIONS WITH RELATED PARTIES Transactions with related parties are based on the policy that all transactions between the Company and the related parties are carried out at arm's length. These prices are determined in accordance with the methods prescribed in the Companies Ordinance, 1984. 3. OPERATING FIXED ASSETS ===========================================================================================================================================================
Notes (Rupees in thousand)
COST DEPRECIATION Written
PARTICULARS As on Additions (Deletions) Trial As on Rate As on (Adjust- For the As on down value
01-07-03 run 30-06-04 % 01-07-03 mens) year 30-06-04 as on
profit 30-06-04
===========================================================================================================================================================
Owned
Freehold land 486 - - - 486 - - - - 486
Buildings on freehold
land 3.1 & 3.2 34,183 34,606 - (50) 68,739 5- 10 15,609 - 4,238 19,847 48,892
Railway sidings 1,950 - - - 1,950 10 1,562 - 39 1,601 349
Plant and machinery
3.1 & 3.2 286,078 575,425 - (839) 860,664 10 138,917 - 56,543 195,460 665,204
Other equipments 33,435 - - - 33,435 15 23,176 - 1,539 24,715 8,720
Furniture and fixtures 2,737 706 - - 3,443 10 1,111 - 218 1,329 2,114
Office equipments 6,752 2,172 (355) - 8,569 15-30 3,512 (230) 942 4,224 4,345
Vehicles 17,356 4,464 - - 21,820 20-25 11,175 325 1,771 13,271 8,549
382,977 617,373 (355) (889) 999,106 195,062 95 65,290 260,447 738,659
Leased
Vehicles 1,712 - (429) - 1,283 20 787 (325) 164 626 657
384,689 617,373 (784) (889) 1,000,389 195,849 (230) 65,454 261,073 739,316
Capital work in progress
Plant and machinery 464,193 174,080 (539,300) - 98,973 - - - - 98,973
Building 13,684 24,155 (32,127) - 5,712 - - - - 5,712
477,877 198,235 (571,427) - 104,685 . - - - 104,685
Total Rupees - 2004 862,566 815,608 (572,211) (889) 1,105,074 195,849 (230) 65,454 261,073 844,001
Total Rupees - 2003 416,520 506,189 (60,143) - 862,566 178,557 (884) 18,176 195,849 666,717
===========================================================================================================================================================3.1. TRIAL OPERATIONS ACCOUNT (RUPEES IN THOUSAND)======================================================================================
2004 2003
(Rupees in thousand)
======================================================================================
Sales 33,237
Less: Sales tax 4,335
Commission 500
4,835
Net sales 28,402
Cost of goods sold
Raw material consumed 3,983
Salaries, wages and benefits 1,074
Fuel and power 21,389
Factory overheads 246
Repair and maintenance 1,329
Cost of goods manufactured 28,021
Finished goods closing stock -2,171
Cost of sales 25,850
Gross profit 2,552
Operating expenses_
Admin expenses 558
Selling expenses 874
Financial charges 231
1,663
Total operational profit transferred to
operating assets 889
======================================================================================3.1.1. OPERATIONAL PROFIT HAS BEEN TRANSFERRED TO OPERATING ASSETS AS======================================================================================
2004 2003
(Rupees in thousand)
======================================================================================
Plant and machinery 839
Building on freehold land 50
889
======================================================================================3.2. Additions in building and plant and machinery include interest and charges amounting to Rs.2.169 million and Rs. 35.479 million respectively on finances utilized for the new project.3.3. Effective from July 1, 2003 the Company has revised its accounting estimates in respect of depreciation on tangible fixed assets. Depreciation on additions is charged from the month in which the asset is put to use and on disposals, up to the month the asset has been in use, in line with the recommendations of The Institute of Chartered Accountants of Pakistan. Had the Company not changed its accounting estimates the profit before tax for the year would have decreased by Rs.17.193 million. 3.4. DEPRECIATION CHARGE FOR THE YEAR HAS BEEN ALLOCATED AS UNDER ======================================================================================
2004 2003
Notes (Rupees in thousand)
======================================================================================
Cost of sales 23 63,552 16,265
Administrative and selling expenses 25 1,902 1,911
65,454 18,176
======================================================================================4. SPARES HELD FOR CAPITAL======================================================================================
2004 2003
(Rupees in thousand)
======================================================================================
Spares in hand 1,962 78,000
Spares in transit - 4,620
1,962 82,620
======================================================================================5. LONG TERM INVESTMENTS======================================================================================
2004 2003
Notes (Rupees in thousand)
======================================================================================
Investment in subsidiary company - Unquoted
Ittehad Energy Limited
28,000 (2003: 28,000) fully paid
ordinary shares of Rs. 10/- each 5.1 280 280
Equity held: 80 % (2003: 80%)
Advance against issue of shares 1,000 1,000
1,280 1,280
Investment in associate - Unquoted
Chemi Visco Fibre Limited
5,625,000 (2003: 5,625,000)
fully paid ordinary shares of Rs. 10/- each
Equity held: 7.91 % (2003: 7.91 %) 5.1 56,250 56,250
(Chief Executive: Mr. Usman Ghani Khatri)
Available for sale
Others - Quoted
National Bank of Pakistan Limited 175 8
57,705 57,538
======================================================================================5.1. Breakup value of unquoted investments based on latest audited accounts is Rs. 56.755 million (2003: Rs. 56.530 million). No provision has been made for the diminution in value as the management considers the investments realisable at amounts in excess of carrying value.6. DEFERRED COST ======================================================================================
2004 2003
(Rupees in thousand)
======================================================================================
Expenses incurred on issue of Term Finance
Certificates 3,269 3,269
Add: Expenditure incurred during the year 983 -
4,252 3,269
Less: Amortization for the year 801 -
3,451 3,269
======================================================================================7. STORES, SPARES AND LOOSE TOOLS======================================================================================
2004 2003
(Rupees in thousand)
======================================================================================
Stores 14,541 14,709
Spares:
in hand 119,370 114,166
in transit 931 -
120,301 114,166
Loose tools 292 335
135,134 129,210
Less: Provision for obsolete stores and spares 22,432 22,432
112,702 106,778
======================================================================================8. STOCK IN TRADE======================================================================================
2004 2003
(Rupees in thousand)
======================================================================================
In hand 19,007 17,385
In transit 4,999 -
24,006 17,385
Packing materials 1,117 363
Work in process 2,546 1,113
Finished goods 12,671 21,534
40,340 40,395
======================================================================================9. TRADE DEBTS======================================================================================
2004 2003
Notes (Rupees in thousand)
======================================================================================
Secured
Considered good 116,806 68,418
Unsecured
Considered good 9.1 89,189 80,330
Considered doubtful 22,865 23,259
112,054 103,589
228,860 172,007
Less: Provision for doubtful debts 9.2 22,865 23,259
205,995 148,748
======================================================================================9.1. These include balances due from associated companies aggregating Rs. 32.034 million (2003: Rs. 1.838 million) comprising of the following:======================================================================================
2004 2003
(Rupees in thousand)
======================================================================================
Chemi Visco Fibre Limited. 22,113 289
Chemitex Industries Limited 9,503 1,407
Chemi Dyestuff Industries (Private) Limited 418 138
Dyechem Industries (Private) Limited - 4
32,034 1,838
======================================================================================Maximum aggregate amount remaining outstanding from associated companies at the end of any month during the year was Rs. 34.232 million (2003: Rs. 21.478 million).9.2. MOVEMENT OF PROVISION FOR DOUBTFUL DEBTS IS AS FOLLOWS ======================================================================================
2004 2003
(Rupees in thousand)
======================================================================================
Opening balance 23,259 23,017
Adjustment on account of:
Reversal for amount of
doubtful debts realised -642 -50
Provision for doubtful
debts for the year 248 292
Net adjustment -394 242
Closing balance 22,865 23,259
======================================================================================10. ADVANCES, DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES======================================================================================
2004 2003
Notes (Rupees in thousand)
======================================================================================
To employees 1,574 2,199
For supplies and services 10.1 5,842 7,747
Against import 570 18,971
Income tax 10.2 100,109 111,856
108,095 140,773
Considered doubtful
For supplies and services 1,225 1,225
109,320 141,998
Less: Provision for doubtful advances 1,225 1,225
108,095 140,773
Trade deposits
Considered good 3,000 6,769
Considered doubtful 364 364
3,364 7,133
Less: Provision for doubtful deposits 364 364
3,000 6,769
Prepayments 864 1,918
Other receivables
Income tax refundable 28,446 1,473
Insurance claims receivable 6,165 -
Others 264 373
34,875 1,846
146,834 151,306
======================================================================================10.1. These include a balance due from Chemi Multifabrics Limited, an associated company, amounting to NIL (2003: Rs.0.213 million).10.2. THE AMOUNT COMPRISES AS FOLLOWS ======================================================================================
2004 2003
(Rupees in thousand)
======================================================================================
Advance income tax 148,796 172,723
Less: Provision for taxation 48,687 60,867
100,109 111,856
======================================================================================11. CASH AND BANK BALANCES======================================================================================
2004 2003
Note (Rupees in thousand)
======================================================================================
Cash in hand 221 259
Cash at banks
In current accounts 30,490 286,463
In deposit accounts 11.1 20 20
30,510 286,483
30,731 286,742
======================================================================================11.1. The rate of interest on deposit accounts are ranging from 1.50% to 3% per annum (2003: 1.5% to 3% per annum).12. ISSUED, SUBSCRIBED AND PAID UP CAPITAL ===================================================================
2004 2003
(Rupees in thousand)
===================================================================
100,000 Ordinary shares of Rs.10/- each
fully paid in cash 1,000 1,000
24,900,000 Ordinary shares of Rs.10/- each
issued as fully paid for
consideration other than cash 249,000 249,000
25,000,000 250,000 250,000
===================================================================13. REDEEMABLE CAPITAL======================================================================================
2004 2003
Note (Rupees in thousand)
======================================================================================
Term finance certificates (TFCs) - Secured 249,900 250,000
Less: Current portion shown under current
Liabilities 17 100 100
249,800 249,900
======================================================================================The TFCs have been issued as fully paid scrip of Rs. 5,000 denomination or exact multiple thereof for general public and Rs. 100,000 denomination or exact multiple thereof for Pre-IPO investors. These are listed on Karachi Stock Exchange (Guarantee) Limited.TERMS AND CONDITIONS Call option The Company may redeem the TFCs by way of the exercise of the call option by giving notice in writing to the TFC holders and the Trustee at least sixty days prior to the option redemption date. The call option will be exercisable after a period of 18 mouths from the last date of public subscription. The call option may only be exercised by the Company with respect to all of the outstanding TFCs. Put option The investors have no right to exercise put option. Rate of return The return on TFCs is payable semi annually and is calculated at the State Bank of Pakistan's discount rate plus 2.50% per annum with a floor of 7% per annum and cap of 12% per annum. Principal redemption Principal amount shall be redeemed in six semi annual installments after a grace period of twenty four months from the last date of public subscription. Security The TFCs are secured by way of first pari passu charge on all present and future fixed assets of the Company with 15% margin by hypothecation charge and memorandum confirming constructive deposit of title deeds. Trustee In order to secure the interests of the TFC holders, ORIX Investment Bank Pakistan Limited (ORIX) has been appointed as Trustee for the issue. ORIX will be paid trustee fee at 0.035% per annum of the outstanding principal. The fee shall be payable at the beginning of each year commencing from the date of signing of Trust Deed and on subsequent anniversary thereof. The Trustee shall ensure that the terms and conditions of the security documents are adhered to and that the interests of the TFC holders are safe guarded by taking actions that it deems necessary in the event of any breach of terms and conditions of the TFC instrument, the Trust Deed and the security documents by the Company. Redemption reserve No redemption reserve has been established for redemption of TFCs in view of the projected financial cash flows. The Company shall have adequate funds to meet its financial obligations arising from the issue of TFCs. 14. LONG TERM LOANS ======================================================================================
2004 2003
Notes (Rupees in thousand)
======================================================================================
Secured
Banking companies
Metropolitan Bank Limited 14.1 8,302 19,372
Askari Commercial Bank Limited 14.2 80,000 100,000
Other Financial institutions
Saudi Pak Agricultural and
Industrial Corporation - 5,346
Saudi Pak Agricultural and
Industrial Corporation 14.3 75,000 75,000
Pakistan Industrial Credit and
Investment Corporation 14.4 174,423 199,997
337,725 399,715
Less: Current portion shown
under current liabilities 17 99,840 70,770
237,885 328,945
Unsecured
Directors 14.5 5,672 13,617
Others 14.5 14,328 26,383
20,000 40,000
257,885 368,945
======================================================================================14.1. This finance is secured against second floating charge over fixed assets of the Company, and carries markup at 3 months average KIBOR Ask rate plus 1.82% (with floor of 4.75%) per annum. Loan is repayable in eight quarterly installments commencing from April 2003. Last installament is due in February 2005.14.2. This finance is secured against first pari passu charge over fixed assets of the Company and carries mark up at 6 months average KIBOR Ask rate plus 3.21% (with floor of 5.00%) per annum. Loan is repayable in ten quarterly installments commencing from December 2003. Last installment is due in March 2006. 14.3. This finance is secured against first pari passu charge over present and future fixed assets of the Company and carries mark up at 6 months average KIBOR Ask rate plus 2.70% (with floor of 5.40%) per annum. Loan is repayable in fourteen quarterly installments commencing from November 2004. Last installment is due in February 2008. 14.4. This finance is secured against first pari passu charge over all assets of the Company except inventories and carries mark up at the rate of 6.00% per annum. Loan is repayable in twenty quarterly installments commencing from December 2003. Last installment is due in September 2008. 14.5. These loans are unsecured, interest free and are not repayable within next twelve months. 15. LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASES ======================================================================================
2004 2003
Note (Rupees in thousand)
======================================================================================
Secured
Balance as on 01 July 725 3,629
Less: Payments during the year 472 2,904
253 725
Less: Payable within one year shown
under current liabilities 17 253 507
- 218
======================================================================================The above liabilities represent the unpaid balance of the total of minimum lease payments and the residual value payable at the end of lease discounted at the rate of 9% per annum.Remaining aggregate rentals of Rs. 0.143 million inclusive of mark-up of Rs. 0.0027 million are payable in equal monthly installments under lease agreement as follows: =========================================================
Up to one Total Total
Year 2004 2003
(Rupees in thousand)
=========================================================
Minimum lease payments
Outstanding 256 256 760
Less: Finance charges not due 3 3 35
Present value of minimum lease
payments 253 253 725
Less: Current portion shown under
current liabilities 253 507
- 218
=========================================================In case of termination of the agreement, the Company shall pay the entire amount of rentals for unexpired period of lease agreement. Taxes, repairs and insurance costs are to be borne by the Company.Liabilities are secured against personal guarantees of Directors, demand promissory notes and bills of exchange and security deposits of Rs 0.113 million (2003: Rs.0.157 million) included in advances, deposits and prepayments. At the end of the lease period, the ownership of the assets shall be transferred to the Company on payment of residual values. 16. DEFERRED LIABILITIES ======================================================================================
2004 2003
Note (Rupees in thousand)
======================================================================================
Provision for gratuity 1,898 1,637
Deferred taxation 16.1 61,491 25,849
63,389 27,486
======================================================================================16.1. DEFERRED TAX LIABILITY COMPRISES AS FOLLOWS======================================================================================
2004 2003
(Rupees in thousand)
======================================================================================
Taxable temporary differences
Tax depreciation allowances 120,207 25,208
Finance lease arrangements 141 70
Deferred cost 1,208 1,144
121,556 26,422
Deductible temporary differences
Provision for gratuity -664 -573
Unused tax losses -59,401 -
61,491 25,849
======================================================================================17. CURRENT PORTION OF LONG TERM LIABILITIES======================================================================================
2004 2003
Notes (Rupees in thousand)
======================================================================================
Redeemable capital 13 100 100
Long term loans 14 99,840 70,770
Liabilities against assets
subject to finance
leases 15 253 507
100,193 71,377
======================================================================================18. SHORT TERM RUNNING FINANCES======================================================================================
2004 2003
Notes (Rupees in thousand)
======================================================================================
Secured
Banking Companies
Muslim Commercial Bank Limited 18.1 85,309 1,703
Prime Commercial Bank Limited - 2
Metropolitan Bank Limited 18.2 7,158 -
Askari Commercial Bank Limited 18.3 9,014 55,262
Bank of Punjab 18.4 50,000 -
Faisal Bank 18.5 30,000 -
181,481 56,967
======================================================================================18.1. This facility is secured against first pari passu charge over present and future fixed and current assets of the Company and hypothecation of stocks of chemicals and carries markup at 6 months average KIBOR Ask rate plus 1% spread (with floor of 3.50%) per annum. The limit of finance is Rs. 90.00 million (2003: Rs. 60.00 million).18.2. This facility is secured against second charge over present and future current and fixed assets of the Company and carries mark up at 3 months average KIBOR Ask rate plus 1.82% (with floor of 4.75%) per annum. The limit of finance is Rs. 60.00 million (2003: Rs. 40.00 million). 18.3. This facility is secured against first pari passu hypothecation charge over current assets of the Company and carries mark-up at 6 months average KIBOR Ask rate plus 1.71% (with floor of 3.50%) per annum. The limit of finance is Rs. 150.00 million (2003: Rs. 80.00 million). 18.4. This facility is secured against floating charge over all present and future current assets of the Company and carries mark-up at 6 months average KIBOR Ask rate plus 130 bps (with floor of 4.00%) per annum. The limit of finance is Rs. 50.00 million (2003: NIL). 18.5. This facility is secured against first floating charge on current assets of the Company and carries mark up at 6 months average of KIBOR Ask rate plus 175 bps (with floor of 4.50%) per annum. The limit of finance is Rs.100.00 million (2003: NIL). 19. CREDITORS, ACCRUED AND OTHER LIABILITIES ======================================================================================
2004 2003
Notes (Rupees in thousand)
======================================================================================
Trade creditors 11,428 10,835
Accrued liabilities 19.1 130,860 88,961
Advances from customers 5,359 10,137
Deposits-interest free repayable on
demand 13,988 13,673
161,635 123,606
Accrued mark up/interest
Secured
Short term running finances 1,621 3,136
Long term loans 2,404 4,649
Term finance certificates 274 754
4,299 8,539
Sales tax payable 6,387 4,529
Income tax deducted at source 422 269
Workers' profit participation fund 19.2 4,852 4,203
Workers welfare fund 1,689 2,852
Other liabilities - others 59 78
179,343 144,076
======================================================================================19.1. These include a balance due to Chemi Multifabrics Limited, an associated company amounting to Rs.5.962 million (2003: NIL). Maximum aggregate amount remaining outstanding at the end of any month during the year was Rs.5.962 million (2003: Rs. 14.380 million).19.2. WORKERS' PROFIT PARTICIPATION FUND ======================================================================================
2004 2003
Notes (Rupees in thousand)
======================================================================================
Balance as on 01 July 4,203 5,360
Interest at prescribed rate 27 268 299
4,471 5,659
Less: Amount paid to fund 4,271 5,536
200 123
Current year's allocation at 5% 26 4,652 4,080
Closing balance as at June 30 4,852 4,203
======================================================================================The Company retains the allocation of this fund for its business operations till the amounts are paid to the fund together with interest at prescribed rate under the Act.20. DIVIDENDS ======================================================================================
2004 2003
(Rupees in thousand)
======================================================================================
Proposed - 37,500
Unclaimed 5 -
5 37,500
======================================================================================21. CONTINGENCIES AND COMMITMENTS21.1. CONTINGENT LIABILITIES a) Claim lodged by M/s Saigol Brothers Limited (SBL), of Rs. 2.608 million (2003: Rs. 2.608 million) on account of rent of storage tanks at Faisalabad used by Ittehad Chemicals Limited from July 1, 1973 to March 10, 1982 of which only Rs. 0.044 million (2003: Rs. 0.044 million) has been acknowledged and provided for in the accounts. b) Demand created for assessment year 1996 - 1997 with respect to disallowance of expenses incurred on account of Golden Hand Shake and Voluntary Separation Scheme amounting to Rs. 56.437 million for reason of non-deduction of withholding tax on payment has been set aside by the Honorable Income Tax Appellate Tribunal (ITAT) with direction to re compute the tax liability by using the specified methodology. The Inspecting Additional Commissioner (IAC), vide his order dated December 23, 2003, has restored the original assessment under section 66A without considering the directions of ITAT. Management is planning to file a revised petition before ITAT and Reference Application has already been filed before the Learned Lahore High Court. In the event of adverse decision the Company would be faced with a charge against profit of Rs.34.107 million. c) Deputy Commissioner of Income Tax (DCIT) had determined liability for assessment year 2002-03 amounting to Rs.46.112 million. Company has filed an appeal to the Commissioner of Income Tax (Appeals) against the decision of DCIT. In the event of adverse decision the Company would be faced with a charge of Rs.10.205 million against profit. d) Sales tax department, with respect to the audits, conducted by them for the years from 1990-91 to 2001-2002 have issued demand cum show cause notices of principal amount aggregating to Rs. 17.786 million, plus any additional tax to be paid up to the date of payment of principal amount. Management is contesting the demands before appropriate sales tax authorities. Cases for demands pertaining to the years 1990 - 1991 to 1993 - 1994 aggregating to Rs. 14.208 million were heard by the Additional Collectorate of Sales tax and their final decision in this respect is awaited. In the event of adverse decisions in pending adjudication the Company would be faced with a charge against profit and liability of Rs. 17.786 million (2003: Rs.19.208 million). e) Letters of guarantee outstanding as at June 30, 2004 amounted to Rs. 30.443 million. (2003: Rs.19.175 million). 21.2. COMMITMENTS Commitments as on June 30, 2004 were as follows: Against letters of credit amounting to Rs. 303.836 million (2003: Rs. 33.566 million) Capital commitments amounting to Rs. 7.722 million. (2003: Rs. 5.268 million) 22. SALES ======================================================================================
2004 2003
(Rupees in thousand)
======================================================================================
SALES
Sales
Manufacturing 1,825,415 1,550,097
Trading 2,050 261
1,827,465 1,550,358
Less: Sales tax 290,335 208,784
Commission 23,210 20,456
313,545 229,240
1,513,920 1,321,118
======================================================================================22.1. The amount under this head includes export sales amounting to Rs. 11.906 million (2003: Rs. 3.218 million).23. COST OF SALES ======================================================================================
2004 2003
Notes (Rupees in thousand)
======================================================================================
Raw materials consumed
Opening stock 17,385 18,939
Purchases 144,367 117,837
161,752 136,776
Raw materials traded -1,250 -
Closing stock -19,007 -17,385
141,495 119,391
Other overheads
Stores, spares and loose tools consumed 84,188 72,878
Packing materials consumed 1,919 885
Production supplies consumed 12,308 4,491
Mercury consumed 6,427 7,226
Salaries, wages and benefits 23.1 58,039 57,254
Fuel and power 880,938 845,003
Repairs and maintenance 15,716 23,624
Insurance 2,850 2,721
Depreciation 3.4 63,552 16,265
Vehicle running expenses 6,507 5,205
Postage, printing and stationery 2,228 2,030
Other expenses 839 1,244
1,135,511 1,038,826
Work in process
Opening 1,113 1,098
Closing -2,546 -1,113
-1,433 -15
Cost of goods manufactured 1,275,573 1,158,202
Cost of raw materials traded 1,250 -
Cost of stores traded 110 -
Finished goods
Opening 21,534 19,137
Purchases of trading goods - 261
Stock issued for capital expenditures -338 -
Closing 12,671 21,534
8,525 -2,136
1,285,458 1,156,066
======================================================================================23.1. This amount includes Rs. 0.249 million (2003: Rs. 0.244 million) in respect of employees' retirement benefits.24. OTHER INCOME ======================================================================================
2004 2003
Note (Rupees in thousand)
======================================================================================
Return on bank balances 57 1
Dividend income 5 2
Gain on sale of fixed assets - 590
Recovery of bad debts 642 449
Sales of scrap 1,963 1,240
Rental income - 147
Reversal of provision for gratuity
due to application of IAS - 19 30.4 - 276
2,667 2,705
======================================================================================25. ADMINISTRATIVE AND SELLING EXPENSES======================================================================================
2004 2003
Notes (Rupees in thousand)
======================================================================================
Salaries, wages and benefits 25.1 23,748 21,698
Travelling and conveyance 8,235 6,305
Advertisement 1,179 1,249
Telephone, telex and postage 2,423 1,442
Marketing service charges 15,389 13,416
Freight 33,659 18,930
Rent, rates and taxes 1,911 1,729
Printing and stationery 2,662 1,195
Legal and professional charges 520 583
Fuel and power 1,273 1,027
Provision for bad and doubtful debts 248 1,128
Bad debts / Advances
and deposits written off 707 6
Repair and maintenance 415 454
Depreciation 3.4 1,902 1,911
Loss on disposal of fixed assets 14 -
Amortization of deferred cost 801 -
Donations 25.2 1,115 818
96,201 71,891
======================================================================================25.1. This amount includes Rs 0.175 million (2003: Rs. 0.192 million) in respect of employees' retirement benefits.25.2. Donations do not include any donee in whom any Director of the Company or their spouse have any interest. 26. OTHER CHARGES ======================================================================================
2004 2003
Note (Rupees in thousand)
======================================================================================
Expenses on listing at stock exchange - 1,224
Auditor's remuneration
Audit fee 125 125
Half yearly review fee 50 -
Tax and certification charges 188 330
Out of pocket expenses 25 12
388 467
Workers' profit participation fund 19.2 4,652 4,080
Workers' welfare fund - 1,163
5,040 6,934
======================================================================================27. FINANCIAL CHARGES======================================================================================
2004 2003
Note (Rupees in thousand)
======================================================================================
Markup/interest on:
Long term loans 36,362 1,392
Finance leases 33 263
Short term running finances 3,591 9,777
Workers' profit participation fund 19.2 268 299
40,254 11,731
Bank charges and commission 1,431 1,117
Exchange loss 79 23
41,764 12,871
(Percentage)
======================================================================================28. NUMERICAL RECONCILIATION BETWEEN======================================================================================
2004 2003
(Rupees in thousand)
======================================================================================
THE AVERAGE EFFECTIVE TAX RATE
AND THE APPLICABLE TAX RATE
Applicable tax rate 35
Tax effect of amounts that are:
Deductible for tax purposes -18.47
Not deductible for tax purposes 10.38
Effect of charge in prior years 10.83
Chargeable to tax at different rates -0.64
Effect of deferred tax charge 0.92
3.02
Average effective tax rate charged to profit and lo
account 38.02
======================================================================================28.1. In view of tax losses for the year provision for current taxation has been made on the basis of minimum tax payable under section 113 of the Income Tax Ordinance, 2001 at the rate of one half of one percent of turnover.29. BASIC AND DILUTED EARNINGS PER SHARE ======================================================================================
2004 2003
======================================================================================
Number of shares in thousand
Average issued ordinary shares 25,000 25,000
(Rupees in thousand)
Profit before provision for taxation (Rupees) 88,124 76,061
Profit after provision for taxation 45,156 47,142
Earnings per share before
provision for taxation Rs.3.52 Rs. 3.04
Earnings per share after provision for taxation Rs. 1.81 Rs. 1.89
======================================================================================30. DEFINED BENEFIT PLAN30.1. GENERAL DESCRIPTION The scheme provides for terminal benefits for all its permanent employees who qualify for the scheme. The defined benefit payable to each employee at the end of his service comprises of total number of years of his service multiplied by last drawn basic salary including cost of living allowance. Annual charge is based on actuarial valuation carried out as at June 30, 2003 using the Projected Unit Credit Method. The charge for the year ended June 30, 2004 has been estimated in the actuarial valuation report using the same assumptions. 30.2. SIGNIFICANT ACTUARIAL ASSUMPTIONS Following are significant actuarial assumptions used in the valuation: Discount rate: 8% per annum Expected rate of increase in salary: 7% per annum 30.3. RECONCILIATION OF PAYABLE TO DEFINED BENEFIT PLAN ======================================================================================
2004 2003
(Rupees in thousand)
======================================================================================
Present value of obligation 1,898 1,597
Unrecognized actuarial loss - 40
Liability recognized in balance sheet 1,898 1,637
======================================================================================30.4. MOVEMENT OF THE LIABILITY RECOGNIZED IN THE BALANCE SHEET======================================================================================
2004 2003
Note (Rupees in thousand)
======================================================================================
Opening net liability 1,637 1,661
Reversal of liability due to
actuarial valuation 24 - -276
1,637 1,385
Charge for the year 301 273
Contribution paid to outgoing employees -21
Closing net liability 1,898 1,637
======================================================================================30.5. CHARGE FOR THE YEAR======================================================================================
2004 2003
(Rupees in thousand)
======================================================================================
Current service cost 173 162
Interest cost 128 111
Charge for the year 301 273
======================================================================================31. REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVESThe aggregate amount charged in the accounts for the year for remuneration, including certain benefits, to the Chief Executive, Directors and Executives of the Company are as follows: ================================================================================
Chief Executive Directors Executives
2004 2003 2004 2003 2004 2003
Rupees in Rupees in Rupees in
thousand thousand thousand
================================================================================
Managerial
remuneration 400 400 1,411 320 14,553 11,617
House rent allowance 180 180 626 144 6,549 5,228
Medical expenses 20 20 48 16 728 581
600 600 2,085 480 21,830 17,426
Number of persons 1 1 4 1 91 62
================================================================================The Company also provides the Chief Executive and some of the Directors and Executives with free use of cars and mobile phones.32. CAPACITY AND PRODUCTION ========================================================================================================================
Installed capacity Actual production Reasons for shortfall
Tons Tons
2004 2003 2004 2003
========================================================================================================================
Caustic Soda 106,051 64,020 68,961 60,677 Production remained below the
installed capacity because production
at IEM plant was under keen
observation during trial run period.
Also sanctioned power load was not
available for IEM plant upto February
2004 and available power was
utilized for better product mix
Liquid Chlorine 9,900 9,900 9,141 8,219 Lack of demand.
Hydrochloric acid 123,750 123,750 82,777 77,757 Lack of demand.
Sodium Hypochlorite 49,500 49,500 42,161 34,348 Lack of demand.
Bleaching Earth 3,300 3,300 2,524 2,011 Lack of demand.
Sulphuric acid 3,300 3,300 1,132 1,247 Not sold in view of widely fluctuating
prices. Plant operated for internal
consumption purposes only
Zinc Sulphate 600 600 175 - Low production because of non
availability of required raw materials
within the Country
========================================================================================================================33. TRANSACTIONS WITH RELATED PARTIES INCLUDING ASSOCIATED UNDERTAKINGSThe related parties including associated undertakings comprise, local associated undertakings, staff retirement funds, Directors and key management personnel. Transactions with related parties other than remuneration and benefits to key management personnel under the terms of their employment are as follows: ======================================================================================
2004 2003
(Rupees in thousand)
======================================================================================
Marketing services charges 15,643 13,417
Sale of goods and services 62,543 18,722
Contribution to staff retirement benefit plan 123 122
======================================================================================34. FINANCIAL INSTRUMENTS RELATED DISCLOSURES34.1. LIQUIDITY RISK Liquidity risk is the risk that the Company will encounter difficulties in raising funds to meet commitments associated with financial instruments. The Company believes that it is not exposed to any significant level of liquidity risk. 34.2. CURRENCY RISK Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. The Company's exposure to currency risk in respect of financial liabilities in United States dollars is Rs. 303.836 million (2003: Rs. 33.566 million). 34.3. CONCENTRATION OF CREDIT RISK Credit risk represents the accounting loss that would be recognized at the reporting date if counter parties fail completely to perform as contracted. The Company manages this risk through having exposures only to those parties, which are considered to be credit worthy and obtaining security deposit wherever applicable. All financial assets except cash and bank balances are subject to credit risk. 34.4. INTEREST RATE RISK Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in the interest rates. The Company manages this risk through risk management strategies. Interest rate risk of the Company's financial assets and financial liabilities can be evaluated from following schedule: ============================================================================================================================
Interest/markup bearing Non-interest/markup bearing
Maturity More Sub total Maturity More Sub total
up to than one up to than one Total
one year year one year year
(Rupees I thousand for the year ended June 30,2004)
============================================================================================================================
Financial assets
Long term Investments - - - - 57,705 57,705 57,705
Long term deposits - - - - 11,962 11,962 11,962
Trade debts - - - 205,995 - 205,995 205,995
Advances deposits and other receivables - - - 45,861 - 45,861 45,861
Cash and bank balances 20 - 20 30,711 - 30,711 30,731
20 - 20 282,567 69,667 352,234 352,254
Financial liabilities
Term finance certificates 100 249,800 249,900 - - - 249,900
Long term loans 99,840 237,885 337,725 - 20,000 20,000 357,725
Liabilities against assets subject
to finance lease 253 - 253 - - - 253
Deferred liabilities - - - - 1,898 1,898 1,898
Short term running finances 181,481 - 181,481 - - - 181,481
Creditors, accrued and other liabilities - - - 179,343 - 179,343 179,343
Dividend - - - 5 - 5 5
281,674 487,685 769,359 179,348 21,898 201,246 970,605
On balance sheet gap (281,654) (487,685) (769,339) 103,219 47,769 150,988 (618,351)
Unrecognized financial assets
and financial liabilities
Capital commitments - - - 7,722 - 7,722 7,722
Letter of credit - - - 303,836 - 303,836 303,836
Off balance sheet gap - - - 311,558 - 311,558 311,558
Net financial assets/(liabilities) (281,654) (487,685) (769,339) (208,339) 47,769 (160,570) (929,909)
============================================================================================================================Effective interest rates are mentioned in the respective notes to the accounts.=================================================================================================================================
Interest/markup bearing Non-interest/markup bearing
Maturity More Sub total Maturity More Sub total
up to than one up to than one Total
one year year one year year
=================================================================================================================================
Financial assets
Long term Investments - - - - 57,538 57,538 57,538
Long term deposits - - - - 6,808 6,808 6,808
Trade debts - - - 148,748 - 148,748 148,748
Advances, deposits and other
receivables - - - 37,532 - 37,532 37,532
Cash and bank balances 20 - 20 286,722 - 286,722 286,742
20 - 20 473,002 64,346 537,348 537,368
Financial liabilities
Term finance certificates - 250,000 250,000 - - - 250,000
Long term loans 70,770 328,945 399,715 - 40,000 40,000 439,715
Liabilities against assets
subject to finance leases 507 218 725 - - - 725
Deferred liabilities - - - - 1,637 1,637 1,637
Short term running finances 56,967 - 56,967 - - - 56,967
Refundable against oversubscribed TFCs - - - 212,525 - 212,525 212,525
Creditors, accrued and other liabiliti - - - 144,076 - 144,076 144,076
Dividend - - - 37,500 - 37,500 37,500
128,244 579,163 707,407 394,101 41,637 435,738 1,143,145
On balance sheet gap (128,224) (579,163) (707,387) 78,901 22,709 101,610 (605,777)
Unrecognized financial assets and
financial liabilities
Capital commitments - - - 5,268 - 5,268 5,268
Letters of credit - - - 33,566 - 33,566 33,566
Off balance sheet gap - - - 38,834 - 38,834 38,834
Net financial assets/(liabilities) (128,224) (579,163) (707,387) 40,067 22,709 62,776 (644,611)
=================================================================================================================================34.5. FAIR VALUE OF FINANCIAL INSTRUMENTSThe carrying value of all the financial assets and financial liabilities are estimated to approximate their fair values. 35. NUMBER OF EMPLOYEES Total number of employees (including contracted) at the year-end was 655 (2003: 646). 36. DATE OF AUTHORIZATION FOR ISSUE The Board of Directors of the Company authorized these financial statements for issue on September 22, 2004. 37. GENERAL Figures have been rounded off to the nearest Rupees in thousands. |