| Al-Noor Sugar Mills Ltd - 2001 |
============================================================================================== BALANCE SHEET AS AT 30TH SEPTEMBER, 2001 ============================================================================================== 2001 2000 Note (Rupees in thousand) ============================================================================================== SHARE CAPITAL AND RESERVES Authorised Capital 20,000,000 ordinary shares of Rs. 10.00 each 200,000 200,000 Issued, subscribed and paid-up capital 2 185,703 185,703 Reserves: General reserve 162,000 162,000 Unappropriated (loss)/profit (24,715) 1,866 137,285 163,866 322,988 349,569 REDEEMABLE CAPITAL 3 188,500 17,830 OBLIGATIONS UNDER FINANCE LEASE 4 93,371 70,179 DEFERRED LIABILITIES 5 117,753 112,490 CURRENT LIABILITIES AND PROVISIONS Short term running finance and borrowings 6 626,331 417,456 Current maturity of redeemable capital and finance 7 151,484 96,704 Creditors, accrued and other liabilities 8 162,457 119,985 Proposed dividend - 18,570 940,272 652,715 CONTINGENCIES AND COMMITMENTS 9 - - 1,662,884 1,202,783 FIXED ASSETS - TANGIBLE Operating assets 10 759,915 789,259 Capital work-in-progress 11 93,915 529 853,830 789,788 LONG TERM INVESTMENTS 12 26,631 26,631 LONG TERM LOANS AND ADVANCES 13 91 171 LONG TERM DEPOSITS 14 6,627 11,234 DEFERRED COST 15 7,243 4,441 CURRENT ASSETS Stores and spares 16 106,785 110,797 Stock-in-trade 17 514,522 105,096 Trade debts (unsecured and considered good) 571 11,844 Loans, advances, deposit, prepayments and other receivables 18 97,704 82,007 Bank and cash balances 19 48,880 60,774 768,462 370,518 1,662,884 1,202,783 ============================================================================================== ============================================================================================== PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30TH SEPTEMBER, 2001 ============================================================================================== 2001 2000 Note (Rupees in thousand) ============================================================================================== Sales 20 1,335,760 1,360,333 Cost of sales 21 1,151,526 1,101,585 Gross profit 184,234 258,748 Administration and selling expenses 22 89,544 89,278 Operating profit 94,690 169,470 Other income 23 39,641 29,427 134,331 198,897 Financial charges 24 150,105 139,996 Other charges 25 3,789 9,609 153,894 149,605 (Loss)/profit before taxation (19,563) 49,292 Taxation 26 7,018 29,474 (Loss)/profit after taxation (26,581) 19,818 Unappropriated profit brought forward 1,866 618 (24,715) 20,436 Appropriations: Proposed cash dividend nil (2000: @ 10%) - (18,570) Unappropriated (loss)/profit carried forward (24,715) 1,866 (Loss)/earning per share - Basic and diluted 33 (1.43) 1.07 ============================================================================================== ==============================================================================================
CASH FLOW STATEMENT FOR THE YEAR ENDED 30TH SEPTEMBER, 2001
==============================================================================================
2001 2000
(Rupees in thousand)
==============================================================================================
CASH FLOW FROM OPERATING ACTIVITIES
(Loss)/profit before taxation (19,563) 49,292
Adjustment for non cash charges and other items:
Depreciation 42,648 42,165
Provision for obsolete spare items - 5,000
Amortization of deferred cost (1,811) -
Profit on sale of operating assets (368) (604)
Provision for staff gratuity 2,844 4,415
Other deferred liabilities (excluding interest) 4,000 1,367
Financial charges 150,105 139,996
Cash generated before working capital changes 177,855 241,631
(Increase)/decrease in current assets
Stores and spares 4,012 (6,499)
Stock-in-trade (409,426) 60,432
Trade debts 11,273 (9,913)
Loans, advances, prepayments and
other receivables (excluding income tax) (4,905) (8,875)
(399,046) 35,145
Increase/(decrease) in current liabilities
Creditors accrued and other liabilities
(excluding financial charges & unclaimed dividend) 19,408 (20,143)
Cash (used in)/generated from operation (201,783) 256,633
Taxes paid (17,809) (22,948)
Payment for staff gratuity (1,582) (1,543)
Deferred liabilities paid (excise duty and sales tax) - (12,631)
Financial charges paid (127,121) (136,960)
Long term loans and advances 80 200
Net cash (used in)/generated from operating activities (348,215) 82,751
CASH FLOW FROM INVESTING ACTIVITIES
Fixed capital expenditure (106,860) (23,454)
Sale proceed of operating assets (net off sales tax) 538 993
Net cash (used in) investing activities (106,322) (22,461)
CASH FLOW FROM FINANCING ACTIVITIES
Issuance of Term Finance Certificates 261,160 -
Obligation under finance lease 82,531 20,000
Long term deposits 4,607 (1,003)
Deferred cost (991) (4,441)
Repayment of redeemable capital and finance lease (95,048) (78,035)
Short term running finance and borrowings 208,875 21,312
Dividends paid (18,491) (13,839)
Net cash generated/(used in) from financing activities 442,643 (56,006)
Net (decrease)/increase in cash and cash equivalents (11,894) 4,284
Cash and bank balance at the beginning of the year 60,774 56,490
Cash and bank balance at the end of the year 48,880 60,774
==============================================================================================NOTES TO THE ACCOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 20012. ISSUED, SUBSCRIBED AND PAID UP CAPITAL ========================================================================================
2001 2000
(Rupees in thousand)
========================================================================================
3,617,635 Ordinary shares of Rs.10.00 each
fully paid up in cash. 36,177 36,177
814,637 Ordinary shares of Rs. 10.00 each
fully paid up issued to P.I.C.I.C 8,146 8,146
in terms of loan agreement
40,000 Ordinary shares of Rs. 10.00 each fully paid up
issued to I.C.P in terms of debenture trust 400 400
20,000 Ordinary shares of Rs. 10.00 each fully paid up
issued to State Life Insurance Corporation of
Pakistan in terms of debenture trust deed 200 200
10,000 Ordinary shares of Rs. 10.00 each fully paid up
issued to N.I.T in terms of debenture trust 100 100
14,067,98 Ordinary shares of Rs. 10.00 each fully paid up
issued as bonus shares. 140,680 140,680
149,526 149,526
185,703 185,703
========================================================================================3. REDEEMABLE CAPITAL (NON PARTICIPATORY - SECURED)======================================================================================================================================
Listed (Rupees in thousand)
PICIC SAUDI PAK TFC OIBPL BFM GLM AIB 2001 2000
======================================================================================================================================
Balance 750 17,080 203,619 20,000 5,000 12,500 20,000 278,949 64,257
Less:
Current maturity shown
under current liabilities
Note No. 7 750 6,711 25,488 20,000 5,000 12,500 20,000 90,449 46,427
--------------------------------------------------------------------------------------------------------------------------------------
- 10,369 178,131 - - - - 188,500 17,830
--------------------------------------------------------------------------------------------------------------------------------------
Purpose LMM LCF TFC TF MI MI MI
Sanctioned/Sale price/
Disbursed Amount
(Rs. in Million) 23.993 30.000 203.660 20.000 5.000 12.500 20.000
Purchase price
(Rs. in Million) 38.195 51.207 326.074 26.565 6.169 14.625 25.592
Maximum prompt
payment rebate
(Rs. in Million) 6.366 - 13.234 2.315 - - 2.042
Effective rate
of mark-up
(per annum) 8% 19.50% * 17.00% 20.00% 17.00% 17.50%
(ceiling rate)
Remaining number
of instalments 1 9 9 1 1 1 1
Equal Equal Equal One One Lump One Lump One Lump
Mode of payment Quarterly Quarterly Half Yearly Lump sum Sum Payment Sum Payment Sum Payment
Payment
Date of payment of
last instalment 01.10.2001 13.12.2003 01.10.2005 31.12.2001 31.10.2001 11.01.2002 12.02.2002
======================================================================================================================================*Expected Profit Minimum of 16.50% and a maximum of 18.50% p.a. to be paid semi-annually in arrears.The exact profit rate for each redemption will be decided as the State Bank of Pakistan Discount Rate + 2.50%. Rate will be set at the beginning of each semi-annual period for the profit due at the end of that semi-annual period. The rate will be calculated on the basis of the prevailing SBP Discount Rate, two days before the commencement of the semi-annual period for which the profit rate is being computed. SECURITIES: PICIC (LMM) Legal mortgage on the company's present and future immovable properties and a first charge by way of hypothecation in respect of present and future machinery and first floating charge on all other assets. Pending the completion, execution and registration of the mortgage deed as a fore stated, the company has created in favour of PICIC a first pari passu charge by way of equitable mortgage on the company's immovable properties, both present and future. SAUDI PAK First pari passu charge by way of equitable mortgage on the company's fixed assets. LISTED TFC First exclusive charge/mortgage over specified assets of ANSML viz. Medium Density Fibre Board (Lasani wood) plant & machinery, land upon which the medium density fibre board is situated. Ranking charge/mortgage over all other fixed assets of the company i.e. sugar mills, including land and building both present and future. OIBPL Hypothecation of Stock of Sugar. BFM Hypothecation of stores and spares and receivables. GLM Hypothecation of stores and spares and receivables. AIB Pledge of stock of sugar and personal guarantees of Directors. OTHER PARTICULARS: SAUDI PAK Liquidated damages are applicable @ 71 paisas per day per thousand of the amount defaulted. LISTED � TFC Orix Investment Bank Limited has been appointed as trustees on behalf of TFC holders. Accordingly, a trust deed dated September 19, 2000 has been executed. OIBPL-TF Liquidated damages are applicable @ 22% of the amount defaulted. BFM-MI Liquidated damages are applicable @ 25% of the amount defaulted. GLM-MI Penalty of Rs. 2,800/- per day charge of the amount defaulted. AIB Liquidated damages are applicable @ 20% of the amount defaulted. ABBREVIATION DENOTES: PICIC Pakistan Industrial Credit & Investment Corporation. SAUDI PAK Saudi Pak Industrial and Agricultural Investment (Pvt) Ltd. OIBPL Orix Investment Bank Pakistan Ltd. BFM B.F.Modaraba GLM Guardian Leasing Modaraba AIB Atlas Investment Bank Ltd TFC Term Finance Certificates TF Term Finance. LCF Local Currency Finance. MI Musharika Investment 4. OBLIGATIONS UNDER FINANCE LEASE =====================================================================================================================================
(i) The amount of future payments and the period in which they will become due are:
=====================================================================================================================================
(Rupees in thousand)
=====================================================================================================================================
2001 2000
NDLC FUDLM SPLCL OLPL ULL DLCL FGM
=====================================================================================================================================
Year to Sept. 30, 2001 - - - - - - - - 70,802
Year to Sept. 30, 2002 9,061 13,308 15,543 16,803 10,405 8,056 10,699 83,875 61,285
Year to Sept. 30, 2003 - - 786 9,598 12,854 8,056 7,262 38,556 16,378
Year to Sept. 30, 2004 - - - 9,325 12,854 4,014 646 26,839 4,660
Year to Sept. 30,2005 - - 9,325 12,854 - - 22,179 -
Year to Sept. 30, 2006 - - 9,552 12,854 - - 22,406 -
Year to Sept.30.2007 - - - - 12,854 - - 12,854 -
Year to Sept.30, 2008 - - - - 8,927 - - 8,927 -
--------------------------------------------------------------------------------------------------------------------------------------
9,061 13,308 16,329 54,603 83,602 20,126 18,607 215,636 153,125
--------------------------------------------------------------------------------------------------------------------------------------
Less:
Financial charges
allocated to
--------------------------------------------------------------------------------------------------------------------------------------
future period 673 1,388 2,215 15,615 33,602 3,956 3,781 61,230 32,669
--------------------------------------------------------------------------------------------------------------------------------------
8,388 l1,920 14,114 38,988 50,000 16,170 14,826 154,406 120,456
Less:
Current maturity:-
Shown under current
liabilities (Note 7) 8,388 11,920 13,397 11,237 2,447 5,583 8,063 61,035 50,277
--------------------------------------------------------------------------------------------------------------------------------------
- - 717 27,751 47,553 10,587 6,763 93,371 70,179
--------------------------------------------------------------------------------------------------------------------------------------
LMM,IM LMM
(II) Purpose LMM LMM & IM LMM & IM & VEHICLE IM LMM & VEHICLE
--------------------------------------------------------------------------------------------------------------------------------------
(Ill) Terms and conditions
of lease facilities.
1) Number of leases
availed 2 2 5 5 1 1 4
2) Annual financing rate
(monthly/quarterly/
half yearly compounding
basis) used as 20.97% 21.00% 19.19% 17.00% 20.50%
discounting factor & & & to 16.756% 18.80% to
ranging between 24.22% 21.25% 22.00% 22.95% 21.90%
3) Remaining No. of installments
ranging between 3&9 2&4 1 to3 3to20 13 9 2to9
4) Instalments Monthly Quarterly
intervals ranging & Quarterly Half yearly Quarterly Half yearly Quarterly &
between Quarterly Half yearly
5) Lease rental payable
in each instalment 30,000 208,570 378,000 123,810 3,978,125 195,536
except last one & & to to & 2,014,000 to
ranging between rupees 1,974,146 2,860,545 2,725,000 1,616,635 6,427,000 2,108,500
Last instalment 398,553 341,820 786,240 273,810 257,436
ranging between & & to to 8,927,000 4,014,000 to
rupees 4,474,146 4,176,334 4,339,730 2,773,100 2,788,105
6) Fine payable per
month on over
due rentals if any. 2% 3% 2.50% 3% 3% - 2%
=====================================================================================================================================
================================================================
ABBREVIATIONS DENOTE:
================================================================
NDLC : National Development Leasing Corporation Limited
FUDLM : First UDL Modaraba
SPLCL : Saudi Pak Leasing Company Limited
ULL : Union Leasing Limited
OLPL : Orix Leasing Pakistan Limited
DLCL : Dawood Leasing Corporation Limited
FGM : First Grindlays Modaraba
LMM : Locally manufactured machinery
IM : Imported machinery
================================================================5. DEFERRED LIABILITIES:==============================================================================================
2001 2000
Note (Rupees in thousand)
==============================================================================================
Deferred taxation 5.1 47,342 47,342
Excise duty including interest thereon 9.3 35,120 35,120
Cane development cess and surcharge 5.2 12,728 11,616
Provision for staff gratuity 19,674 18,412
Employees compensated. absences 1,519 -
Further sales tax 9.6 1,370 -
117,753 112,490
==============================================================================================5.1. DEFERRED TAXATIONNet liability for deferred taxation arising due to all major temporary differences (credits and debits) computed under the balance sheet liability method is estimated at Rs. 63,900 million (2000: Rs. 54,339 million) of which Rs. 9,561 million is in respect of current year. The deferred tax liability to the extent of Rs. 16,558 million has not been provided as it is unlikely to crystallize within foreseeable future. Moreover, applicability of revised International Accounting Standard - 12 (Income Taxes) requiring full provision, has been deferred by the Institute of Chartered Accountants of Pakistan till accounting years commencing on and after January 1, 2002. 5.2. CANE DEVELOPMENT CESS AND SURCHARGE The surcharge on cess levied through Finance (amendment) Act, 1991, at the rate of 15 paisas per 40 kilograms of cane crushed is to be shared equally by the mill and growers. The levy has been challenged in the Court of law. However, the liability has fully been provided for to the extent of 50% of company's share. Since the matter is pending in the Court, therefore, management feels that the matter is not likely to be finalized within one year. 6. SHORT TERM RUNNING FINANCE AND BORROWINGS: ==============================================================================================
2001 2000
Note (Rupees in thousand)
==============================================================================================
Secured:
Commercial Banks 6.1 562,974 239,002
Other financial institutions 6.2 63,000 171,808
Unsecured:
Due to directors and associated company 6.3 357 6,646
626,331 417,456
==============================================================================================6.1. Running finance facilities available are upto Rs. 680.00 million (2000: Rs. 370.00 million). Markup applicable is ranging between Re. 0.4383 to Re. 0.5205 per thousand per diem.6.2. The sanctioned amount against various financial arrangements aggregated Rs. 63 million (2000: Rs. 217 million). The effective rates of profit/mark-up, per thousand per diem, are ranging between Re. 0.4657 to Re. 0.4836 (2000: Re. 0.4932 to Re.0.60). The four (2000: seven) settlement/repayment dates are falling between February 10, 2002 to August 15, 2002 (2000: November 5, 2000 to October 31, 2001). 6.3. Interest @15% per annum is payable on amount due to directors on daily product basis. SECURITIES: (Note 6.1 & 6.2) Hypothecation on stock of raw sugar, refined sugar, board and raw material, stores and spares, receivable, other current assets and second charge on fixed assets. 7. CURRENT MATURITY ==============================================================================================
2001 2000
NOTE (Rupees in thousand)
==============================================================================================
Redeemable capital 3 90,449 46,427
Finance lease 4 61,035 50,277
151,484 96,704
==============================================================================================8. CREDITORS, ACCRUED AND OTHER LIABILITIES==============================================================================================
2001 2000
Note (Rupees in thousand)
==============================================================================================
Creditors 38,970 57,229
Accrued expenses 22,693 25,614
Payable to financial Institution 41 1,187
Mark up/Interest accrued on secured loan
Redeemable capital 18,544 1,341
Financial charges on leased assets 2,699 1,753
Short term finance 20,895 16,060
42,138 19,154
Custom duty 9.4 199 199
Sales Tax 43,232 9,599
Worker's profit participation fund 8.1 330 2,904
Due to associated undertakings
(unsecured and interest free) 4,881 1,105
Deposit against contract 6,709 -
Deposits and retentions 1,632 1,224
Brokerage and commission on sugar 420 640
Unclaimed dividends 597 517
Due to provident fund 328 360
Apprenticeship money 8.2 31 30
Others 256 223
162,457 119,985
==============================================================================================8.1. WORKER'S PROFIT PARTICIPATION FUND==============================================================================================
2001 2000
Note (Rupees in thousand)
==============================================================================================
Balance October 1, 2,904 1,944
Less:
Paid to trustees 2,603 1,722
Left out amount deposited with
government treasury 301 222
2,904 1,944
- -
Add: Provision for the current year - 2,671
Interest due on fund utilized in the
company's business shown
under financial charges 24 330 233
330 2,904
330 2,904
============================================================================================== (a) The amount utilized by the company during the year was Rs. 2,903 million (2000: Rs. 1,944 million).8.2. The apprenticeship money has been deposited in a separate bank account (Note � 19) as required by section 227 of the Companies Ordinance, 1984. 9. CONTINGENCIES AND COMMITMENTS 9.1. The Company's commitments on September 30, 2001 are as follows: =============================================================================
2001 2000
(Rupees in million)
=============================================================================
Capital expenditure - -
Letter of credits - 21,550
=============================================================================9.2. The Company has issued continuing guarantee to bank aggregating Rs. 50 million (2000: Rs. 82.50 million) in consideration of the banks making loans to cane growers for the purchase of seeds and fertilizers.9.3. The guarantee amounting to Rs. 19,045 million was issued to Collector, Central Excise and Land Customs, Hyderabad in respect of payment of 50% central excise duty against clearance of sugar stocks of 17,799,50 metric tons. The issue is related to denial of excise duty exemption by declaring full crushing season at minimum of 180 days vide notification of December 23, 1992. The Company has disputed against the denial of exemption and has filed a constitutional petition before the Honourable High Court of Sindh. However, the excise duty liability has been fully provided for including compounding interest @ 14% per annum thereon. The guarantees have been encashed by the Collector, Central Excise and Land Customs, Hyderabad for the full principal amount of Rs. 19.045 million. 9.4. The Company had applied to the Government of Pakistan for declaring Medium Density Fibre Board Industry as "Key Industry" under SRO 458(1)/88 dated June 26, 1988 as the project is using 100% local raw material. Pending the declaration as Key Industry, the Central Board of Revenue has allowed the Company to get the consignments of plant and machinery cleared against bank guarantees. The Collector of Customs has presented Bank guarantees for encashment and the company accordingly filed a writ in the High Court of Sindh there against. The High Court in its order has allowed the Collector of Customs to get the bank guarantees encashed with the conditions that in case bank guarantees are encashed and the decision goes in favour of the Company. The amount of bank guarantees encashed will be refunded alongwith 14% markup. Total amount of duties involved is Rs. 8,893 million which had been fully provided for in the accounts in the relevant prior year, out of which Rs. 8,694 million has been paid upto September 30, 1999. 9.5. A demand of Rs. 6,216 million in respect of sales tax on in house use of bagasse as fuel was raised by the Collectorate of Sales Tax, Hyderabad. The Company has disputed the liability and has filed an appeal before the Sales Tax Appellate Tribunal, Karachi, the outcome of which is pending. However, to avail a relief from further levy of additional tax and penalties, as facilitated through SRO 1349(1)/99 dated 17th December, 1999, the company has paid total tax due of Rs. 11,795 million, including an additional tax of Rs. 4,413 million which has been shown as advances at note 18 of these accounts. 9.6. The Company has filed petition before Honorable High Court of Sindh challenging the levy of further tax against taxable supplies made to persons other than registered person under section 3(1A) of the Sales Tax Act, 1990. However, the entire liability till November 30, 2000 against such further tax has been paid by the company including additional tax and penalties. During December, 2000 a judgment in favour of Company was awarded by the Honourable High Court of Sindh. Accordingly, Company has filed claim for refund of such further tax amounting to Rs.48.99 million. Management feels that refund will take substantial time to be realized, on realization, this will be recognized accordingly. Further, through the Finance Act, 2000-2001 the definition of unregistered persons for the purpose of sales tax was amended. Accordingly, Sales Tax department has raised a demand for further tax @ 3% in respect of sales made to unregistered persons, which has been contested by the Company before the Sales Tax Tribunal in the light of Sindh High Court Judgment. However, the Company has deposited Rs. 1,370 million against the said demand upto September 30, 2001. 10. OPERATING ASSETS � TANGIBLE =========================================================================================================================
(Rupees in thousand)
=========================================================================================================================
Cost Depreciation
Addition/ Accumulated Depreciation Accumulated Book Normal
PARTICULARS Cost at (Sales)/ Cost at Depreciation Charge Depreciation Value as at Annual
01-10-2000 Transfer* 30-09-2001 1-10-2001 for the year/ 30-09-2001 30-9-2001 Rate %
(on disposal)
=========================================================================================================================
OWNED:
Freehold land 3,786 - 3,786 - - - 3,786 -
Factory building:
on free hold land 22,353 - 22,353 17,113 524 17,637 4,716 10
Non factory building:
on free hold land 48,908 235 49,143 21,574 1,596 23,170 25,973 5-10
on leasehold land 9,675 - 9,675 5,102 228 5,330 4,345 5
Plant and machinery 959,834 578 977,067 415,530 27,667 444,449 532,618 10
16,655 * 1,252*
Furniture, fixture
and fitting 10,284 108 10,392 6,764 363 7,127 3,265 10
Office equipment 22,692 2,527 25,219 15,755 3,123 18,878 6,341 33
Vehicles 13,771 26 15,319 10,841 711 12,474 2,845 20
(828) (658)
2,350 * 1,580*
1,091,303 3,474 1,112,954 492,679 34,212 529,065 583,889
(828) (658)
19,005 * 2,832 *
LEASED:
Plant and machinery 203,547 10,000 196,892 15,445 8,083 22,276 174,616 10
(16,655) * (l,252)*
Vehicles 5,707 (2,350) * 3,357 3,174 353 1,947 1,410 20
(1,580)*
209,254 10,000 200,249 18,619 8,436 24,223 176,026
(19,005) * (2,832)*
2001 RUPEES 1,300,557 13,474 1,313,203 511,298 42,648 553,288 759,915
(828) (658)
2000 RUPEES 1,172,501 129,399 1,300,557 470,087 42,165 511,298 789,259
(1,343) (954)
=========================================================================================================================
================================================================
10.1. THE DEPRECIATION HAS BEEN ALLOCATED AS FOLLOWS:
================================================================
SUGAR BOARD TOTAL
================================================================
Manufacturing 23,881 12,393 36,274
Administration and Selling 4,395 1,979 6,374
28,276 14,372 42,648
================================================================10.2. Depreciation on Sugar plant and machinery has been charged on actual crushing days i.e. 145 days (2000: 132 days).10.3. Depreciation on MDFB plant and machinery has been charged on the basis of 300 days (2000: 300 days). 11. CAPITAL WORK-IN-PROGRESS BOARD UNIT: ==============================================================================================
2001 2000
(Rupees in thousand)
==============================================================================================
Plant and Machinery 88,032 509
Building 4,433 -
Advance for capital expenditure 1,450 20
93,915 529
93,915 529
==============================================================================================12. LONG TERM INVESTMENTS==============================================================================================
2001 2000
NOTE (Rupees in thousand)
==============================================================================================
In associated company:
3,299,784 (2000: 3,299,784) ordinary shares of Rs. 10.00
each of Shahmurad Sugar Mills Limited-listed company 21,631 21,631
Equity held 15.625% (2000: 15.625%)
Market value Rs. 23.263 million (2000: Rs. 58.571 million)
500,000 (2000: 500,000) ordinary shares of Rs. 10.00 each
of Al-Noor Modaraba Management (Pvt) Limited 12.1 5,000 5,000
Equity held 14.285% (2000: 14.285%)
Break-up value Rs.3.07 (2000: Re.1.15) per share
(Chief Executive: Mr. Azam Sakrani)
26,631 26,631
==============================================================================================12.1. Considering the projected future profitability of Al-Noor Modaraba Management (Pvt) Limited, management feels that the diminution in the value of investment is temporary in nature and the provision for permanent diminution as required by the company's accounting policy is therefore not necessary.13. LONG TERM LOANS AND ADVANCES ==============================================================================================
2001 2000
NOTE (Rupees in thousand)
==============================================================================================
(Considered good)
Due from executives 121 414
Less: Receivable within one year 18 121 243
- 171
Due from other employees 1,593 1,867
Less: Receivable within one year 18 1,502 1,867
91 -
91 171
- -
Outstanding for period exceeding three years - -
Others 91 171
91 171
==============================================================================================Loans to executives are generally granted for purchase of house, car and for domestic needs and are repayable over a period of 10 years.All the loans are granted to the employees of the company in accordance with the terms of employment. The maximum aggregate amount due from executives at the end of any month during the year was Rs. 0.171 million (2000: Rs. 0.814 million). 14. LONG TERM DEPOSITS ==============================================================================================
2001 2000
(Rupees in thousand)
==============================================================================================
Deposits
Leasing companies 5,924 8,677
Central depository company 300 300
Others 403 2,257
6,627 11,234
==============================================================================================15. DEFERRED COST==============================================================================================
2001 2000
(Rupees in thousand)
==============================================================================================
Advisory, placement fee and commission 5,770 3,710
Rating fee 617 414
Listing fee 100 100
Other charges 2,567 217
9,054 4,441
Less:Amortization (1,811) -
7,243 4,441
==============================================================================================This represent expenses incurred in relation to the future issue of term finance certificates.16. STORES AND SPARES ==============================================================================================
2001 2000
(Rupees in thousand)
==============================================================================================
Stores 27,129 23,464
Spares 84,459 90,730
Stores and spares in transit 197 1,603
111,785 115,797
Less: Provision for obsolete spare items 5,000 5,000
106,785 110,797
==============================================================================================17. STOCK IN TRADE - WORK-IN-PROCESS==============================================================================================
2001 2000
(Rupees in thousand)
==============================================================================================
Sugar 9,031 2,242
Raw Material
Imported raw sugar 57,959 -
Finished goods
Sugar 417,206 46,784
MDF Sheets 28,961 31,949
Imported sugar - 24,119
Molasses 1,365 2
447,532 102,854
514,522 105,096
==============================================================================================18. LOANS, ADVANCES, DEPOSIT, PREPAYMENTS AND OTHER RECEIVABLES==============================================================================================
2001 2000
NOTE (Rupees in thousand)
==============================================================================================
Loan (considered good)
Due from - Executives 13 121 243
Other employees 13 1,502 1,867
1,623 2,110
Advances (considered good)
Employees 563 331
Financial institutions 750 750
For purchase and services 1,715 2,533
Growers 32,617 28,961
Sales tax on bagasse 9.5 11,791 11,795
Others 8 8
47,444 44,378
Short term deposit 6,909 657
Short term prepayments 846 566
Other Receivables
Associated undertakings 18.1 2,909 2,288
Guarantee margin 2,525 2,469
Transportation contractors 4,683 5,743
Advance Income Tax 14,591 3,799
Financial institutions 14,275 7,621
Letter of credit margin 564 10,882
Sales tax refundable - 161
Others 1,335 1,333
40,882 34,296
97,704 82,007
==============================================================================================18.1. The amount receivable on account of insurance claims amounting to Rs. 2.909 million (2000: Rs. 2.288 million).The maximum aggregate amount due from associated undertakings at the end of any month during the year was Rs. 4.502 million (2000: Rs. 2.513 million). 19. BANK AND CASH BALANCES ==============================================================================================
2001 2000
(Rupees in thousand)
==============================================================================================
With banks:
In call deposits (interest bearing) 3,049 7,904
In PLS account (Apprenticeship) 31 30
In current accounts 45,030 52,236
48,110 60,170
Cash in hand 770 604
48,880 60,774
==============================================================================================20. OPERATING RESULTSFigures of sales, cost of goods sold, gross profit, administration and selling expenses and operating profit for business segments are as follows: =========================================================================================================================
Note SUGAR BOARD TOTAL
2001 2000 2001 2000 2001 2000
(Rupees in thousand) (Rupees in thousand) (Rupees in thousand)
=========================================================================================================================
Sales
Local 1,288,303 1,219,958 246,860 345,706 1,535,163 1,565,664
Returns - - - 482 - 482
1,288,303 1,219,958 246,860 345,224, 1,535,163 1,565,182
Sales tax 166,322 154,595 32,657 49,641 198,979 204,236
Brokerage and commission 424 613 - - 424 613
166,746 155,208 32,657 49,641 199,403 204,849
Net Sales 20 1,121,557 1,064,750 214,203 295,583 1,335,760 1,360,333
Cost of goods sold 21 969,904 883,449 181,622 218,136 1,151,526 1,101,585
Gross profit 151,653 181,301 32,581 77,447 184,234 258,748
Administration and
selling expenses 22 73,113 73,004 16,431 16,274 89,544 89,278
Operating profit 78,540 108,297 16,150 61,173 94,690 169,470
=========================================================================================================================20.1. INTER-SEGMENT PRICINGTransfers between business segments are recorded at fair value. 20.2. SEGMENT ASSETS =========================================================================================================================
SUGAR BOARD TOTAL
2001 2000 2001 2000 2001 2000
(Rupees in thousand) (Rupees in thousand) (Rupees in thousand)
=========================================================================================================================
1,308,555 935,298 317,405 228,478 1,625,960 1,163,776
=========================================================================================================================20.3. SEGMENT LIABILITIES=========================================================================================================================
SUGAR BOARD TOTAL
2001 2000 2001 2000 2001 2000
(Rupees in thousand) (Rupees in thousand) (Rupees in thousand)
=========================================================================================================================
133,489 63,606 28,565 33,105 162,054 96,711
=========================================================================================================================20.4. NON-CASH ITEMS - (EXCLUDING DEPRECIATION)=========================================================================================================================
SUGAR BOARD TOTAL
2001 2000 2001 2000 2001 2000
(Rupees in thousand) (Rupees in thousand) (Rupees in thousand)
=========================================================================================================================
3,884 9,682 1,591 1,100 5,475 10,782
=========================================================================================================================20.5. FIXED CAPITAL EXPENDITURE=========================================================================================================================
SUGAR BOARD TOTAL
2001 2000 2001 2000 2001 2000
(Rupees in thousand) (Rupees in thousand) (Rupees in thousand)
=========================================================================================================================
1,188 14,261 105,672 9,192 106,860 23,453
=========================================================================================================================21. COST OF GOODS SOLD=========================================================================================================================
Note SUGAR BOARD TOTAL
2001 2000 2001 2000 2001 2000
(Rupees in thousand) (Rupees in thousand) (Rupees in thousand)
=========================================================================================================================
Opening stock of finished goods 46,786 90,921 31,949 45,901 78,735 136,822
COST OF MANUFACTURE
Opening stock of work in
process 2,242 794 - - 2,242 794
Raw material consumed 21.1 1,225,719 701,055 82,949 90,789 1,308,668 791,844
Salaries, wages & benefits 21.2 60,826 61,745 14,310 11,658 75,136 73,403
Stores and spares consumed 25,546 37,799 9,924 13,384 35,470 51,183
Packing materials 12,074 9,387 - - 12,074 9,387
Fuel and oil 39,793 11,052 20,217 21,341 60,010 32,393
Power and water 7,859 6,695 26,087 42,777 33,946 49,472
Repairs and maintenance 5,885 10,662 4,920 4,478 10,805 15,140
Insurance 5,528 4,044 2,255 2,163 7,783 6,207
Other manufacturing expenses 5,762 4,386 7,014 6,018 12,776 10,404
Cane development cess
and surcharge 4,817 5,923 - - 4,817 5,923
Education cess 58 41 6 - 64 41
Depreciation 23,881 22,510 12,393 12,563 36,274 35,073
1,419,990 876,093 180,075 205,171 1,600,065 1,081,264
Less:
Closing stock of:
Work in process 9,031 2,242 - - 9,031 2,242
1,410,959 873,851 180,075 205,171 1,591,034 1,079,022
Molasses sale 69,270 18,916 - - 69,270 18,916
Electricity charged to MDFB - 14,553 - - 14,553
Bagasse sale - 1,068 - - 1,068
Sander dust sale - - 1,441 987 1,441 987
69,270 34,537 1,441 987 70,711 35,524
Cost of manufacture 1,341,689 839,314 178,634 204,184 1,520,323 1,043,498
1,388,475 930,235 210,583 250,085 1,599,058 1,180,320
Less:
Closing stock of finished goods 418,571 46,786 28,961 31,949 447,532 78,735
969,904 883,449 181,622 218,136 1,151,526 1,101,585
=========================================================================================================================21.1. Includes Rs. 500.040 million in respect of raw sugar consumed.21.2. Includes Rs. 1.529 (2000: Rs. 1.504) million in respect of contribution towards staff provident fund and Rs. 1.975 (2000: Rs. 3.105) million in respect of provision for staff gratuity. 22. ADMINISTRATION AND SELLING EXPENSES =================================================================================================================
Note SUGAR BOARD TOTAL
2001 2000 2001 2000 2001 2000
(Rupees in thousand) (Rupees in thousand) (Rupees in thousand)
=================================================================================================================
Salaries, wages & benefits 22.1 22,881 27,042 6,650 5,393 29,531 32,435
Staff welfare 7,490 7,834 547 673 8,037 8,507
Rent, rates and taxes 902 1,457 108 99 1,010 1,556
Electricity and gas charges 1,842 1,397 400 424 2,242 1,821
Repairs and maintenance 1,881 2,750 838 928 2,719 3,678
Chief Executive & Directors
remuneration & perquisite 31 2,902 2,418 - - 2,902 2,418
Legal and professional 961 929 122 122 1,083 1,051
Vehicle running 6,905 6,468 414 385 7,319 6,853
Insurance 827 925 829 773 1,656 1,698
Communication 3,037 2,650 667 649 3,704 3,299
Sales Promotion & Advertisement 130 121 807 1,146 937 1,267
Export sale expenses 8,889 - - - 8,889 -
Despatch and stacking 2,024 1,534 122 429 2,146 1,963
Entertainment expenses 973 1,003 297 79 1,270 1,082
Printing and stationary 997 810 376 281 1,373 1,091
Fees and subscription 559 571 80 12 639 583
Depreciation 4,395 5,393 1,979 1,699 6,374 7,092
Provision for obsolete spare items - 5,000 - - - 5,000
Others 5,518 4,702 2,195 3,182 7,713 7,884
73,113 73,004 16,431 16,274 89,544 89,278
=================================================================================================================22.1. Includes Rs. 0.658 (2000: Rs. 0.791) million in respect of contribution towards staff provident fund and Rs. 0.869 (2000 Rs. 1.310) million in respect of provision for staff gratuity.23. OTHER INCOME ==============================================================================================
2001 2000
Note (Rupees in thousand)
==============================================================================================
Profit on trading of fertilizer 23.1 12,120 15,432
Profit on trading of imported sugar 23.2 3,134 5,217
Insurance claim 2,909 4,132
Dividend Income 3,300 2,475
Sale of scrap 23.3 974 1,531
Profit on disposal of fixed assets-net 29 368 604
Rent 336 36
Liabilities written back 16,500 -
39,641 29,427
==============================================================================================23.1. PROFIT ON TRADING OF FERTILIZER==============================================================================================
2001 2000
(Rupees in thousand)
==============================================================================================
Sales 116,164 345,937
Less: Cost of goods sold
Opening stock - 1,297
Purchases 104,044 329,208
Closing stock - -
104,044 330,505
12,120 15,432
==============================================================================================23.2. PROFIT ON TRADING OF IMPORTED SUGAR==============================================================================================
2001 2000
(Rupees in thousand)
==============================================================================================
Sales 31,750 65,695
Less: Sales tax (4,497) (9,304)
27,253 56,391
Less: Cost of goods sold
Opening stock 24,119 -
Purchases - 75,293
Closing stock - (24,119)
24,119 51,174
3,134 5,217
==============================================================================================23.3. This excludes sales tax on scrap aggregating Rs. 0.174 (2000: Rs. 0.334) million.24. FINANCIAL CHARGES ==============================================================================================
2001 2000
Note (Rupees in thousand)
==============================================================================================
Mark up on:
Redeemable capital 36,799 16,031
Short term running finance 88,934 91,070
125,733 107,101
Interest on:
Excise duty 9.2 - 4,618
Workers' profit participation fund 8.1 330 233
330 4,851
Financial charges on leased assets 19,679 26,637
Front end and project examination fee 58 567
Bank guarantee and commission 935 841
Bank charges 1,649 1,598
Others 1,977 744
24,298 30,387
150,361 142,339
Less: Interest/profit earned on:
Staff members' loans - 1
Commercial bank deposits 256 2,342
256 2,343
150,105 139,996
==============================================================================================25. OTHER CHARGES==============================================================================================
2001 2000
Note (Rupees in thousand)
==============================================================================================
Sales tax penalties 117 5,573
Amortization of deferred cost 1,811 -
Workers' profit participation fund - 2,671
Charity and donation 25.1 1,660 1,223
Auditors' remuneration 27 193 137
Director's meeting fee 8 5
3,789 9,609
==============================================================================================25.1. None of the directors or their spouses had interest in any of the donees.26. TAXATION ==============================================================================================
2001 2000
(Rupees in thousand)
==============================================================================================
Turnover Tax - current 7,018 -
Presumptive tax
Tax withheld in respect of import of fertilizer 15,310 -
Tax withheld in respect of import of sugar 4,164 -
19,474 -
Deferred Taxation
Current - 3,489
Prior - 6,511
- 10,000
7,018 29,474
==============================================================================================27. AUDITORS' REMUNERATION==============================================================================================
2001 2000
(Rupees in thousand)
==============================================================================================
Audit fee
Statutory 100 90
Certification and special audit 13 25
Provident find 5 5
Out of pocket expenses 75 17
193 137
==============================================================================================28. TRANSACTIONS WITH ASSOCIATED UNDERTAKINGS==============================================================================================
2001 2000
(Rupees in thousand)
==============================================================================================
Purchases:
Services 12,157 9,602
Sales:
Services 36 36
Insurance claims 5,660 4,227
==============================================================================================29. PROFIT ON DISPOSAL OF OPERATING ASSETS======================================================================================================================
(Mode of sale by negotiation) (Rupees in thousand)
Original Accumulated Written Sale Profit Sold to
Description Cost Depreciation down value proceeds
======================================================================================================================
EMPLOYEE
Suzuki Khyber
Registration No. V-9159 252 199 53 200 147 Iqbal Siddiqui
C/o Al-Noor Sugar Mills Limited
District Nawabshah
Motorcycle Honda CD.70
Registration. No.KCK-8170 47 37 10 47 37 Abdul Hamid
C/o Al-Noor Sugar Mills Limited
District Nawabshah
OUTSIDER
Nissan Sunny
Registration No. R.3784 353 292 61 228 167 M. Nazir S/o Sh. Abdullah Khan
A.43, Shahmir Bungalow Block-17
Gulistan-e-Johar, Karachi.
Suzuki Daihatsu Pickup
Registration No. KF-5702 176 130 46 63 17 Safiullah
115. Rehmania Colony,
Chanessar Halt, Karachi
828 658 170 538 368
======================================================================================================================30. CAPACITY AND PRODUCTION IN METRIC TONS========================================================================
CAPACITY DAYS PRODUCTION DAYS
========================================================================
SUGAR UNIT 2001 23,167 160 71,904 145
2000 23,167 160 59,175 132
BOARD UNIT 2001 22,500 300 14,700 300
2000 22,500 300 16,120 300
========================================================================Reasons for under utilisation of Board Unit capacity:Due to dumping of imported medium density fiber board sheets in the market. 31. CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES REMUNERATION The aggregate amount charged in the accounts of the year for remuneration including all benefits to Chief Executive, Directors and Executives of the company were as follows: =======================================================================================
Chief (Rupees in thousand)
Executive Directors Executives
2001 2000 2001 2000 2001 2000
=======================================================================================
Remuneration 720 600 1,152 960 3,840 3,629
Provident fund - - - - 299 296
Perquisite (including
house rent and Bonus) 396 330 634 528 5,061 4,968
Reimbursable expenses including
travelling expenses 258 167 975 1,037 841 986
1,374 1,097 2,761 2,525 10,041 9,879
Number of persons 1 1 2 2 24 22
======================================================================================= i) The Chief Executive, certain Directors and Executives are provided with free use of company's cars.ii) Meeting fee paid to 6 Directors was Rs. 8,000(2000: 6 Directors Rs. 4,500) iii) Reimbursable expenses paid to non-salaried directors amounting to Rs. 0.324 million (2000: Rs 0.726 million) has not been taken in aforestated schedule. 32. NUMBER OF EMPLOYEES Total average number of employees (including permanent, seasonal and temporary) for the year are 897 (2000: 1031). 33. EARNING PER SHARE - BASIC AND DILUTED ==============================================================================================
2001 2000
==============================================================================================
(Loss)/profit after taxation (26,581) 19,818
Weighted average number of shares 18,570,252 18,570,252
(Loss)/earning per share (rupees) (1.43) 1.07
============================================================================================== |