| Bhanero Textile Mills Ltd - 2001 |
=================================================================================== BALANCE SHEET AS AT SEPTEMBER 30, 2001 ----------------------------------------------------------------------------------- NOTE 2001 2000 Rupees Rupees =================================================================================== CAPITAL AND LIABILITIES CAPITAL AND RESERVES Authorised share capital 3 30,000,000 30,000,000 Issued, subscribed and paid-up share capital 4 30,000,000 30,000,000 REVENUE RESERVES General reserves 5 341,100,000 295,000,000 Un-appropriated profit 66,777 40,777 371,166,777 325,040,777 REDEEMABLE CAPITAL 6 - 8,818,025 LONG TERM LIABILITIES Long term loans 7 33,937,935 29,666,666 Obligation under finance lease 8 34,982,381 10,226,821 Excise and custom duty payable 9 13,099,110 10,840,444 82,019,426 50,733,931 DEFERRED LIABILITIES Gratuity 10 20,044,623 17,005,380 Deferred taxation 44,026,178 27,090,852 64,070,801 44,096,232 CURRENT LIABILITIES Short term bank borrowings 11 - 186,617,258 Current maturity of long term liabilities 12 86,311,596 32,647,346 Creditors, accruals and other laiabilities 13 108,202,295 89,556,173 Provision for taxation 49,757,278 59,663,582 Proposed dividend 15,000,000 75,000,000 259,271,169 443,484,359 CONTINGENCIES AND COMMITMENTS 14 - - 776,528,173 872,173,324 ----------------------------------------------------------------------------------- PROPERTY AND ASSETS TANGIBLE ASSETS Operating fixed assets 15 417,926,365 334,659,710 Capital work-in-progress 16 9,055,104 7,144,461 426,981,469 341,804,171 LONG TERM LOAN 17 6,329,451 5,780,268 LONG TERM INVESTMENTS 18 300,000 2,578,992 LONG TERM DEPOSITS 7,867,876 2,546,277 CURRENT ASSETS Stores, spares and loose tools 19 9,242,400 13,952,322 Stock in trade 20 113,233,554 98,191,513 Trade debts 21 103,293,638 254,771,428 Loans and advances 22 81,531,834 105,255,610 Deposits, prepayments and other receivables 23 6,940,976 3,508,619 Cash and bank balances 24 20,806,975 43,784,124 335,049,377 519,463,616 776,528,173 872,173,324 =================================================================================== =================================================================================== PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED SEPTEMBER 30, 2001 ----------------------------------------------------------------------------------- NOTE 2001 2000 RUPEES RUPEES =================================================================================== Sales (Net) 25 1,439,058,470 1,308,310,098 Cost of Sales 26 1,239,110,905 938,177,509 Gross Profit 199,947,565 370,132,589 OPERATING EXPENSES Administrative 27 34,847,913 33,835,333 Selling and Distribution 28 30,493,438 36,258,693 65,341,351 70,094,026 Operating Profit 134,606,214 300,038,563 Other Income 29 24,187,134 413,021 158,793,348 300,451,584 Financial Charges 30 71,252,639 64,146,982 Other Charges 31 4,400,785 12,193,105 75,653,424 76,340,087 Profit before taxation 83,139,924 224,111,497 TAXATION: 32 - Current Year 4,564,540 45,192,738 - Deferred 16,935,326 21,073,796 - Prior Year 514,058 (7,369,608) 22,013,924 58,896,926 Profit after taxation 61,126,000 165,214,571 Unappropriated profit brought forward 40,777 26,206 Available for appropriation 61,166,777 165,240,777 APPROPRIATIONS Proposed dividend @ 50% (2000 @ 250%) 15,000,000 75,000,000 Transferred to general reserves 46,100,000 90,200,000 61,100,000 165,200,000 Un-appropriated profit carried forward 66,777 40,777 EARNING PER SHARE 33 Rs. 20.38 Rs.55.07 =================================================================================== ===================================================================================
CASH FLOW STATEMENT FOR THE YEAR ENDED SEPTEMBER 30, 2001
-----------------------------------------------------------------------------------
2001 2000
RUPEES RUPEES
===================================================================================
A. CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxation 83,139,924 224,111,497
Adjustment for depreciation 46,068,162 37,027,880
Gratuity transitional loss 646,930 -
Provision for gratuity 4,533,477 7,835,500
Financial charges 71,252,639 64,146,982
Loss/(Gain) on disposal of fixed assets 1,143,769 569,855
Dividend Income (489,057) (397,763)
Interest Income (339,389) (585,113)
Gain on sale of investment (397,763) -
Provision for diminution in value of investments 25,000 397,763
122,443,768 108,995,104
Operating profit before working capital changes 205,583,692 333,106,601
(Increase)/decrease in current assets
Stocks, stores and spares (10,332,119) 62,683,406
Trade debts 151,477,790 (39,905,232)
Loans and advances 28,142,041 12,085,749
Deposits, prepayments and other receivables (3,432,357) 4,583,621
165,855,355 39,447,544
(Decrease)/Increase in current liabilities
Short term bank borrowings (186,617,258) (167,982,700)
Creditors, accrued and other liabilities 23,398,331 (101,983,828)
Worker�s profit participation fund 97,785 8,387,782
(163,121,142) (261,578,746)
208,317,905 110,975,399
Cash generated from operations
Payment for:
Taxes (19,403,167) (2,780,566)
Gratuity (2,141,164) (1,501,429)
Financial charges (76,201,737) (62,205,193)
(97,746,068) (66,487,188)
NET CASH INFLOW FROM OPERATING ACTIVITIES 110,571,837 44,488,211
-----------------------------------------------------------------------------------
Balance b/f 110,571,837 44,488,211
B. CASH FLOW FROM INVESTING ACTIVITIES
Proceeds from disposal of fixed assets 18,140,000 2,810,000
Fixed capital expenditure (150,529,229) (51,403,222)
Increase in long term loans (549,183) (3,327,369)
Proceeds from sale of investments 2,651,755 -
Long term deposits (5,321,599) (1,788,051)
Interest received 339,389 585,113
Dividend received 489,057 397,763
NET CASH (OUTFLOW) FROM INVESTING ACTIVITIES (134,779,810) (52,725,766)
-----------------------------------------------------------------------------------
C. CASH FLOW FROM FINANCING ACTIVITIES
Repayment of redeemable capital (7,421,953) (6,246,903)
Proceeds from finance lease 52,000,000 17,880,500
Custom duty paid 2,258,666 -
Receipt of long term loan 61,813,809 52,000,000
Repayment of long term loan (20,328,184) (73,000,000)
Repayment of liability against assets
subject to finance lease (12,190,618) (3,250,621)
Dividend paid (74,900,896) (25,531,059)
NET CASH (OUTFLOW)/INFLOW
FROM FINANCING ACTIVITIES 1,230,824 (38,148,083)
Net increase in cash and cash equivalents (22,977,149) (46,385,638)
Cash and cash equivalents at
beginning of the year 43,784,124 90,169,762
Cash and cash equivalents at
ending of the year 20,806,975 43,784,124
===================================================================================NOTES TO THE ACCOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 20013. AUTHORISED SHARE CAPITAL: ===================================================================================
2001 2000
RUPEES RUPEES
===================================================================================
3,000,000 (2000: 3,000,000)
Ordinary shares of Rs. 10/= each 30,000,000 30,000,000
===================================================================================4. ISSUED, SUBSCRIBED AND PAID-UP SHARE CAPITAL:===================================================================================
2001 2000
RUPEES RUPEES
===================================================================================
1,762,500 (2000: 1,762,500)
Ordinary shares of Rs. 10/= each
fully paid in cash 17,625,000 17,625,000
1,237,500 (2000: 1,237,500)
Ordinary shares of Rs. 10/=
each fully paid as Bonus Shares 12,375,000 12,375,000
30,000,000 30,000,000
===================================================================================5. GENERAL RESERVES===================================================================================
2001 2000
RUPEES RUPEES
===================================================================================
Opening balance 295,000,000 204,800,000
Add: Transferred from profit and loss
account 46,100,000 90,200,000
341,100,000 295,000,000
===================================================================================6. REDEEMABLE CAPITAL: (SECURED)===================================================================================
2001 2000
NOTE RUPEES RUPEES
===================================================================================
As at October 1, 16,239,978 22,486,881
Paid during the year (7,421,953) (6,246,903)
8,818,025 16,239,978
Transferred to current maturity 12 (8,818,025) (7,421,953)
As at September 30, - 8,818,025
===================================================================================The TFCs representing purchase price of Rs. 139,885,664 issued to State Life Insurance Corporation, bear markup at the rate of 22%.However a timely repayment entitles a rebate of 4%. These are repayable in twenty four equal half yearly instalments commencing from 9 March 1991. The redeemable capital of State Life Insurance Corporation (SLIC) is secured by first pari-passu charge on all the present and future moveable and immovable properties of the Unit-II. 7. LONG TERM LOANS AND DEBENTURES - (SECURED) ====================================================================================================================
Custom Term Medium Term Medium Term
Debentures Finance Loan Finance 2001 2000
(Secured) (Secured) (Secured) (Secured) RUPEES RUPEES
====================================================================================================================
As at Oct 1, 994,850 40,000,000 - 9,000,000 49,994,850 70,994,850
Add: received during the year - - 61,813,809 - 61,813,809 52,000,000
Less: payments / adjustments (994,850) (13,333,334) - (6,000,000) (20,328,184) (73,000,000)
- 26,666,666 61,813,809 3,000,000 91,480,476 49,994,850
Less: Transferred to
current maturity 12 - 13,333,334 41,209,206 3,000,000 57,542,540 20,328,184
As at Sept 30, - 13,333,332 20,604,603 - 33,937,935 29,666,666
NOTES 7.1 7.2 7.3 7.4
====================================================================================================================7.1. The custom debentures, carrying interest rate @ 11% were issued in favour of Collector of Customs concerning deferred portion of custom duty on import of last machinery of Unit-II.7.2. This represents term finance obtained during the last year. This is repayable in half yearly installments commencing from 7 August 2000 and expiring on 8 May 2003. It carries implicit rate of return @ 25% per annum which may be reduced to 13.25% by availing prompt payment bonus and rebates, if repaid as stipulated by the bank. This is secured against first pari passu charge on plant and machinery of Unit-II of the company. 7.3. This represents medium term funding from a banking company and is secured by subordinate charge on stock and book debts of Unit-II. The principal amount is payable in three half yearly equal instalments. Mark up on the loan would be State Bank�s Discounted rate + a margin of 2% per annum and is payable quarterly in arrears. Pricing to be re-determined and fixed at the beginning of each quarter. 7.4. This is a markup based financing, for an aggregate amount of Rs. 12 million, for a period of 2 years extendable at the option of lender. This financing carries mark up @ 18% per annum payable quarterly. This is secured against second charge over all present and future fixed assets and personal guarantees of sponsoring directors. 8. OBLIGATION UNDER FINANCE LEASE - (SECURED) The future outstanding payments and the period in which they will become due are: ===================================================================================
2001 2000
NOTE RUPEES RUPEES
===================================================================================
Year to September 30, 2001 - 6,854,758
2002 26,548,318 6,854,758
2003 24,229,216 4,535,656
2004 14,352,960 -
65,130,494 18,245,172
Less: Financial charges not yet due 10,197,082 3,121,142
54,933,412 15,124,030
Less: Transferred to
current maturity 12 19,951,031 4,897,209
Present value of minimum lease payment payable later than
one year but not later than five years. 34,982,381 10,226,821
===================================================================================The company has entered into various lease arrangements containing bargain purchase option with following leasing companies for leasing of various assets.===================================================================================
Description Instalments Date of Date of Expiry
Commencement
===================================================================================
Saudi Pak Leasing Co Ltd. 36 Monthly Dec 01, 1999 No 01, 2002
Saudi Pak Leasing Co Ltd. 36 Monthly Mar 16, 2000 Feb 16, 2003
Saudi Pak Leasing Co Ltd. 36 Monthly May 02, 2000 Apr 02, 2003
Security Leasing Co Ltd. 36 Monthly Aug 28, 2000 Jul 28, 2003
Security Leasing Co Ltd. 36 Monthly Sep 22, 2000 Aug 22, 2003
Pacific Leasing Co Ltd. 36 Monthly Mar 15, 2001 Feb 15, 2004
Pacific Leasing Co Ltd. 36 Monthly June 23, 2001 May 23, 2004
===================================================================================Taxes, repairs and maintenance, insurance and other costs relating to the leased assets are borne by the company. Implicit rate of return ranges between 15.50% to 19%.9. EXCISE AND CUSTOM DUTY PAYABLE ===================================================================================
2001 2000
NOTE RUPEES RUPEES
===================================================================================
Excise duty payable 9.1 9,587,657 9,587,657
Custom duty payable 9.2 3,511,453 1,252,787
13,099,110 10,840,444
===================================================================================9.1. This represents central excise duty payable on bank loans. The matter has been decided in the Sindh High Court in favour of the company.However the provision would be continued as the Federation of Pakistan has filed an appeal before the Supreme Court of Pakistan against the said orders of the Sindh High Court. 9.2. This represents disputed amounts with custom authorities against import of machinery. 10. GRATUITY ===================================================================================
2001 2000
RUPEES RUPEES
===================================================================================
Opening balance 17,005,380 10,671,309
Add: Transitional loss / (gain) 646,930 -
17,652,310 10,671,309
Add:
Current service cost 3,172,291 7,835,500
Interest service cost 1,361,186 -
4,533,477 7,835,500
22,185,787 18,506,809
Less: Payments during the year (2,141,164) (1,501,429)
20,044,623 17,005,380
===================================================================================11. SHORT TERM BANK BORROWINGS - (SECURED)===================================================================================
2001 2000
NOTE RUPEES RUPEES
===================================================================================
11.1 - 186,617,258
===================================================================================11.1. Aggregate financing facilities of Rs. 1.450 billion (2000: Rs 1.310 billion) are available from various commercial banks at mark up rates ranging between 7% to 14.75% per annum. These facilities are expiring on different dates.The arrangements are secured by pari passu hypothecation charge, pledge of stocks, lien on export bills under collection, and by way of personal guarantees of sponsoring directors of the company. 12. CURRENT MATURITY OF LONG TERM LIABILITIES: ===================================================================================
2001 2000
RUPEES RUPEES
===================================================================================
Custom debenture - 994,850
Long term loans 57,542,540 19,333,334
Redeemable capital 8,818,025 7,421,953
Obligations under finance lease 19,951,031 4,897,209
86,311,596 32,647,346
===================================================================================13. CREDITORS, ACCRUALS AND OTHER LIABILITIES:===================================================================================
2001 2000
NOTE RUPEES RUPEES
===================================================================================
Trade creditors 54,215,682 26,324,100
Accrued expenses 29,191,454 39,688,953
Interest / mark-up accrued on long term loans 2,223,953 4,311,510
Mark-up accrued on short term bank borrowings 2,038,506 5,155,696
Lease finance charges 283,981 28,332
Workers� profit participation fund 13.1 11,893,127 11,795,342
Workers� welfare fund 30,956 30,956
Unclaimed dividend 187,542 88,438
Sales tax payable 5,885,634 -
Others 2,251,460 2,137,846
108,202,295 89,556,173
===================================================================================13.1. WORKERS� PROFIT PARTICIPATION FUND:===================================================================================
2001 2000
RUPEES RUPEES
===================================================================================
Opening balance 11,795,342 3,407,560
Interest credited during the year 2,302,516 1,192,646
14,097,858 4,600,206
Contributions for the year 4,375,785 11,795,342
18,473,643 16,395,548
Less: payments during the year 6,580,516 4,600,206
11,893,127 11,795,342
===================================================================================14. CONTINGENCIES AND COMMITMENTS14.1. CONTINGENT LIABILITIES a) Appeal filed by the government of Sindh in the Supreme Court of Pakistan against judgement of the High Court of Sindh at Karachi allowing the petition challenging the levy and collection of professional tax for the limited companies is pending. b) The company has issued indemnity bonds amounting to Rs. 36.131 million in favour of collector of customs in lieu of custom levies against various statutory notifications and the indemnity bonds furnished by the company are likely to be released after fulfillment of the terms of related SROs. 14.2. CAPITAL COMMITMENTS: (a) The company has established irrevocable letters of credit for Rs. 1.935 million. (b) The projected cost of factory building is estimated to be Rs. 12 million. 15. OPERATING FIXED ASSETS ===========================================================================================================================================================
COST DEPRECIATION
As at Additions Disposal/ As at Rate As at Disposal/ For the As at W.D.V. AS AT
Particulars 01-10-00 Adjustment 30-09-01 % 01-10-00 Adjustment year 30-09-01 30-09-01
===========================================================================================================================================================
Own assets:
Land
Lease-Hold 433,414 - - 433,414 - - - - 433,414
Free-Hold 3,916,726 - - 3,916,726 - - - - 3,916,726
Factory Building
Lease-Hold 53,804,398 - - 53,804,398 10% 23,188,094 - 3,061,630 26,249,724 27,554,674
Free-Hold 55,527,419 2,142,531 - 57,669,950 10% 29,525,429 - 2,814,452 32,339,881 25,330,069
Non Factory Building
Lease-Hold 4,896,028 7,040,747 - 11,936,775 5% 2,584,826 - 467,597 3,052,423 8,884,352
Free Hold 14,358,803 1,204,038 - 15,562,841 5% 5,077,656 - 524,259 5,601,915 9,960,926
Plant and Machinery 510,806,202 132,792,758 (97,952,011) 545,646,949 10%273,989,259 (26,956,309)29,861,400 276,894,350 268,752,599
Factory Equipment 14,502,224 - - 14,502,224 10% 8,461,087 - 604,114 9,065,201 5,437,023
Office-Equipment 12,049,235 702,845 - 12,752,080 10% 5,608,399 - 714,368 6,322,767 6,429,313
Furniture & Fixture 3,230,292 725,845 - 3,956,137 10% 1,669,336 - 228,680 1,898,016 2,058,121
Vehicles 14,783,223 4,009,822 (1,507,280) 17,285,765 20% 8,413,568 (1,219,213) 2,018,282 9,212,637 8,073,128
Rupees 688,307,964 148,618,586 (99,459,291) 737,467,259 358,517,654 (28,175,522)40,294,782 370,636,914 86,830,345
Leased assets:
Plant and Machinery 4,450,000 - 52,000,000 56,450,000 10% 445,000 - 5,600,500 6,045,500 50,404,500
Vehicles 1,080,500 - - 1,080,500 20% 216,100 - 172,880 388,980 691,520
Rupees 5,530,500 - 52,000,000 57,530,500 661,100 - 5,773,380 6,434,480 51,096,020
Total 2001: Rupees 693,838,464 148,618,586 (47,459,291) 794,997,759 359,178,754 (28,175,522)46,068,162 377,071,394 417,926,365
Total 2000: Rupees 657,593,567 50,650,628 (14,405,731) 693,838,464 327,646,250 (5,495,376)37,027,880 359,178,754 834,659,710
===========================================================================================================================================================15.1. DEPRECIATION HAS BEEN ALLOCATED TO:===================================================================================
2001 2000
Note RUPEES RUPEES
===================================================================================
Cost of Sales 26 42,933,952 34,330,277
Administrative 27 3,134,210 2,697,603
46,068,162 37,027,880
===================================================================================15.2. DETAIL OF DISPOSAL OF FIXED ASSETS (BY NEGOTIATION)===================================================================================================
Description Cost Accumulated Book Sale Gain/ Sold to
Depreciation Value Proceeds (Loss)
===================================================================================================
Plant & Machinery
RING FRAMES 2,898,903 1,696,418 1,202,485 1,150,000 (52,485) N.P. WATER PROOF
TEXTILE MILLS
PLOT NO. M-3, HUB
DISTRICT LASBELA, BALOCHISTAN
RING FRAMES 11,595,609 6,785,671 4,809,938 4,800,000 (9,938) N.P. COTTON MILLS (PVT) LTD.
702 UNI TOWER
I.I. CHUNDRIGAR ROAD, KARACHI.
RING FRAMES 2,898,903 1,696,418 1,202,485 1,200,000 (2,485) DIAMOND INTERNATIONAL
CORPT LTD
702 UNI TOWER
I.I. CHUNDRIGAR ROAD,
KARACHI.
RING FRAMES 7,905,515 4,643,724 3,261,791 3,000,000 (261,791) ABDULLAH TEXTILE MILLS
(PVT) LTD
RC-1 / 1-A,
NISHTER-BAB-E-URDU ROAD,
KARACHI.
RING FRAMES 14,197,017 8,338,564 5,858,453 5,175,000 (683,453) GANI SPINNING MILLS LTD
301, 3rd FLOOR
TRADE CENTRE, BLOCK 13-A
GULSHAN IQBAL, KARACHI.
RING FRAMES 6,456,064 3,795,514 2,660,550 2,400,000 (260,550) AISHA COTTON MILLS LTD
A-57, MANGHO PIR ROAD,
S.I.T.E., KARACHI.
Vehicles
W-1364 351,576 277,845 73,731 80,000 6,269 MOHAMMAD KHALID
A-28, ROW # 2, BLOCK-B
HCCHS, BLOCK 10/A,
GULSHAN IQBAL, KARACHI.
KCM-6580 34,000 30,350 3,650 35,000 31,350 RAFAY BIN TARIQ
HOUSE # D-8/30, FEDERAL
CAPITAL AREA, KARACHI.
CG-7907 419,695 363,364 56,331 75,000 18,669 AKHTAR ALAM
HOUSE # R-156 SECTOR 51,
NORTH KARACHI,
KARACHI.
V-5168 314,419 261,669 52,750 100,000 47,250 SYED MOHAMMAD ZAHID
15-MALL ROAD,
LAHORE
Z-6816 387,590 285,985 101,605 125,000 23,395 MOHAMMAD AKHTAR
521-G, M.A. JOHAR TOWN
LAHORE
Total Rupees 47,459,291 28,175,522 19,283,769 18,140,000 (1,143,769)
===================================================================================================16. CAPITAL WORK IN PROGRESS===================================================================================
2001 2000
NOTE RUPEES RUPEES
===================================================================================
Building and other civil work 16.1 9,047,578 7,015,162
Plant and machinery 7,526 129,299
9,055,104 7,144,461
===================================================================================16.1. IT REPRESENTS THE FACTORY BUILDING17. LONG TERM LOANS: ===================================================================================
2001 2000
NOTE RUPEES RUPEES
===================================================================================
Unsecured, Considered good
Loans to executives 17.1 7,211,473 5,453,023
Loans to employees 4,204,614 4,170,680
11,416,087 9,623,703
Current maturity (5,086,636) (3,843,435)
6,329,451 5,780,268
===================================================================================17.1. The amounts represent interest free loans given to the executives and employees as per the terms of employment and are repayable over 2 to 6 years.Aggregate balance includes Rs. 2,261,200 (2000: Rs. 2,365,197) outstanding for the period exceeding 3 years. 18. LONG TERM INVESTMENTS ===================================================================================
2001 2000
NOTE RUPEES RUPEES
===================================================================================
QUOTED:
Taha Spinning Mills Limited
50,000 ordinary shares (2000: 50,000
ordinary shares) of Rs. 10/- each 18.1 500,000 500,000
National Development Leasing Corporation
(2000: 530,351 ordinary shares) of Rs. 5/- each. - 10,874,609
500,000 11,374,609
Less: Provision for diminution
in the value of investment 200,000 8,795,617
300,000 2,578,992
===================================================================================18.1. The market value of these shares was Rs. 6.00 per share i.e. Rs. 300,000 as on 30 September 2001 (2000: Rs. 325,000 @ 6.50)19. STORES, SPARES AND LOOSE TOOLS: ===================================================================================
2001 2000
RUPEES RUPEES
===================================================================================
Stores 2,005,947 2,009,075
Spares 7,198,321 11,892,536
Loose tools 38,132 50,711
9,242,400 13,952,322
===================================================================================20. STOCK-IN-TRADE:===================================================================================
2001 2000
RUPEES RUPEES
===================================================================================
Raw material 55,932,212 57,851,353
Work-in-process 8,194,107 7,498,175
Finished goods 46,547,184 30,287,311
Waste 223,570 32,831
Packing material 2,336,481 2,521,843
113,233,554 98,191,513
===================================================================================21. TRADE DEBTORS===================================================================================
2001 2000
RUPEES RUPEES
===================================================================================
Foreign (Secured) 12,322,855 172,734,940
Local (Unsecured)
Considered good 90,970,783 82,036,488
Considered doubtful 2,288,814 -
93,259,597 82,036,488
105,582,452 254,771,428
Less: Provision for doubtful debts 2,288,814 -
103,293,638 254,771,428
===================================================================================22. LOANS AND ADVANCES:===================================================================================
2001 2000
NOTE RUPEES RUPEES
===================================================================================
Loans: unsecured, considered good
To executives and employees 17 5,086,636 3,843,435
Advance:
To associated undertakings 22.1 - 20,224,974
Income tax 39,313,366 34,895,101
Electricity supply 22,000,000 38,735,000
Suppliers 2,444,058 -
For purchase of office 12,299,728 7,181,199
Others 388,046 375,901
81,531,834 105,255,610
===================================================================================22.1. This represents mark up receivable. The maximum aggregate amount due from associated undertaking at the end of any month during the year was Rs. 20.225 million (2000: Rs. 46.490 million).23. DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES - (UNSECURED, CONSIDERED GOOD) ===================================================================================
2001 2000
RUPEES RUPEES
===================================================================================
Trade deposits 48,312 48,758
Balance with statutory authorities 21,692 21,692
Letters of credit 4,669,510 443,200
Sales tax refundable 409,903 883,497
Other receivables 1,791,559 2,111,472
6,940,976 3,508,619
===================================================================================24. CASH AND BANK BALANCES:===================================================================================
2001 2000
RUPEES RUPEES
===================================================================================
Cash in hand - 1,227,411
At bank, in current accounts 16,303,195 10,032,123
in deposit accounts - 32,524,590
in Foreign Currency current accounts 4,503,780 -
20,806,975 43,784,124
===================================================================================25. SALES (NET):===================================================================================
2001 2000
RUPEES RUPEES
===================================================================================
Export
- Direct export sales 761,554,219 721,459,826
- Indirect export sales 188,085,195 -
949,639,414 721,459,826
- Local 505,818,665 606,656,218
- Waste sales 18,432,812 15,149,003
1,473,890,891 1,343,265,047
Less:
Commission and brokerage 34,832,421 34,954,949
1,439,058,470 1,308,310,098
===================================================================================26. COST OF SALES:===================================================================================
2001 2000
NOTE RUPEES RUPEES
===================================================================================
Raw material consumed 26.1 859,151,864 538,514,917
Packing material consumed 24,846,700 24,793,974
Stores and spares consumed 45,278,362 43,331,356
Salaries, wages and benefits 26.2 75,287,894 90,533,235
Processing charges 4,988,309 6,618,840
Fuel and power 133,243,451 126,609,165
Insurance 2,635,014 4,537,925
Repairs and maintenance 2,798,641 6,690,810
Travelling and conveyance 245,948 229,673
Postage, telephone and facsimile 510,679 618,662
Vehicles running and maintenance 1,639,945 1,268,620
Rent, rates and taxes 114,985 95,260
Depreciation 15.1 42,933,952 34,330,277
Other manufacturing expenses 338,905 444,962
1,194,014,649 878,617,676
Opening Work-in-Process 7,498,175 12,877,784
Closing Work-in-Process (8,194,107) (7,498,175)
(695,932) 5,379,609
Cost of goods manufactured 1,193,318,717 883,997,285
Yarn purchased for export 62,242,800 39,532,900
Opening Finished Goods and waste 30,320,142 44,967,466
Closing Finished Goods and waste (46,770,754) (30,320,142)
(16,450,612) 14,647,324
1,239,110,905 938,177,509
===================================================================================26.1. RAW MATERIAL CONSUMED:===================================================================================
2001 2000
RUPEES RUPEES
===================================================================================
Opening stock 57,851,353 98,018,007
Purchase of raw material 883,250,299 498,348,263
941,101,652 596,366,270
Cost of raw cotton sold (26,017,576) -
Closing stock (55,932,212) (57,851,353)
859,151,864 538,514,917
===================================================================================26.2. Staff salaries and benefits includes the Rs. 3,778,107/- (2000: Rs. 6,888,800/-) in respect of gratuity.27. ADMINISTRATIVE EXPENSES: ===================================================================================
2001 2000
NOTE RUPEES RUPEES
===================================================================================
Directors remuneration 35 564,000 564,000
Salaries and other benefits 27.1 12,854,658 12,955,216
Printing and stationery 1,384,153 1,346,655
Rent, rates and taxes 1,430,353 1,547,170
Postage, telephone and facsimile 4,963,422 5,086,287
Travelling and conveyance 3,106,815 2,906,630
Legal and professional charges 455,879 1,029,569
Auditors� remuneration 27.2 100,000 90,000
Fine and penalty 27.3 26,971 4,099
Vehicles running and maintenance 2,211,925 2,097,573
Repair and maintenance 716,270 1,052,446
Charity and donations 27.4 700,000 1,496,800
Provision for doubtful debts 2,288,814 -
Depreciation 15.1 3,134,210 2,697,603
Other expenses 910,443 961,285
34,847,913 33,835,333
===================================================================================27.1. Staff salaries and benefits includes the Rs. 1,402,300/- (2000: Rs. 1,146,700/-) in respect of gratuity.27.2. AUDITORS REMUNERATION: ===================================================================================
2001 2000
RUPEES RUPEES
===================================================================================
Audit fee 70,000 70,000
Out of pocket expenses 30,000 20,000
100,000 90,000
===================================================================================27.3. It represents penalties imposed by State Bank of Pakistan on export refinance loan.27.4. None of the directors or their spouses had any interest in the charity and donations paid during the year. 28. SELLING AND DISTRIBUTION EXPENSES: ===================================================================================
2001 2000
RUPEES RUPEES
===================================================================================
Freight on export sales 17,524,221 22,662,101
Freight on local sales 10,890,482 11,070,765
Other export expenses 2,078,735 2,525,827
30,493,438 36,258,693
===================================================================================29. OTHER INCOME:===================================================================================
2001 2000
NOTE RUPEES RUPEES
===================================================================================
Gain/(loss) on disposal of fixed assets (1,143,769) (569,855)
Dividend income 489,057 397,763
Interest income 339,389 585,113
Profit on sale of cotton 29.1 24,104,694 -
Gain on sale of investment 397,763 -
24,187,134 413,021
===================================================================================29.1. PROFIT ON SALE OF COTTON===================================================================================
2001 2000
RUPEES RUPEES
===================================================================================
Sale of raw cotton 50,122,270 -
Less: cost of raw cotton sold 26,017,576 -
24,104,694 -
===================================================================================30. FINANCIAL CHARGES (NET):===================================================================================
2001 2000
NOTE RUPEES RUPEES
===================================================================================
Lease finance charges 5,470,391 1,394,252
Interest on:
Workers� profit participation fund 13.1 2,302,516 1,192,646
7,772,907 2,586,898
Mark-up / interest on:
Redeemable capital 2,522,395 4,116,790
Long term loans 5,899,192 6,800,832
Short term loans 50,483,197 48,270,829
58,904,784 59,188,451
Bank charges and commission 4,573,434 3,762,702
Zakat 1,514 2,528
Gross financial charges 71,252,639 65,540,579
Less: gross interest recovered
from associated undertaking 1,393,597
Net financial charges 71,252,639 64,146,982
===================================================================================31. OTHER CHARGES:===================================================================================
2001 2000
RUPEES RUPEES
===================================================================================
Workers� profit participation fund 4,375,785 11,795,342
Provision for diminution in the
value of investment 25,000 397,763
4,400,785 12,193,105
===================================================================================32. TAXATION:32.1. CURRENT Provision for the current year has been made in these accounts amounting to Rs. 4,564,540/- (2000: Rs. 45,192,738/-). 32.2. DEFERRED ===================================================================================
2001 2000
RUPEES RUPEES
===================================================================================
Balance at October 01, 27,090,852 6,017,056
Deferred tax liability provided 16,935,326 21,073,796
Balance at September 30, 44,026,178 27,090,852
===================================================================================32.3. The Institute of Chartered Accountants of Pakistan (ICAP) has adopted the International Accounting Standard No. 12 �Income Taxes (Revised)� � IAS 12 which requires that the deferred tax liability should be recognized for all taxable temporary differences.According to directives issued by ICAP, IAS-12 is now applicable to the company with effect from the year ending September 30, 2003. Total deferred tax liability as on 30th September 2001 was Rs. 60,961,504/-. However, on grounds of prudence and as advised by ICAP, the company has charged during the years ended September 30, 2001 an amount of Rs. 16,935,326 (2000: Rs. 21,073,796) to make a partial provision for the deferred tax liability. 33. EARNING PER SHARE ===================================================================================
2001 2000
===================================================================================
Profit for the year Rs. 61,126,000 Rs. 165,214,571
Weighted average number of ordinary shares 3,000,000 3,000,000
Earning per share Rs. 20.38 Rs.55.07
=================================================================================== |