| Fecto Cement Industrial Ltd - 2001 | ||
=========================================================================== BALANCE SHEET AS AT JUNE 30, 2001 =========================================================================== NOTE (Rupees in Thousands) 2001 2000 =========================================================================== SHARE CAPITAL =========================================================================== Authorised: 50,000,000 Ordinary Shares of Rs. 10/- each 500,000 500,000 Issued, subscribed and paid-up: 45,600,000 Ordinary Shares of Rs. 10/- each Issued for Cash 456,000 456,000 GENERAL RESERVES 150,000 150,000 ACCUMULATED (LOSS)/PROFIT (40,314) 39,633 565,686 645,633 LONG TERM LOANS 4 42,680 71,133 DEFERRED LIABILITIES 5 186,557 241,217 LONG TERM DEPOSITS 6 15,637 17,737 CURRENT LIABILITIES: Short Term Running Finance 7 159,341 - Current Maturity of Long Term Liabilities 4 28,453 28,453 Creditors, Accrued & Other Liabilities 8 208,299 211,306 Provision for Taxation 5,901 63,130 Proposed Dividend - 45,600 401,994 348,489 CAPITAL COMMITMENTS 9 1,212,554 1,324,209 --------------------------------------------------------------------------- OPERATING FIXED ASSETS 10 736,004 811,034 CAPITAL WORK IN PROGRESS 11 2,456 - LONG TERM DEPOSITS 4,503 4,505 CURRENT ASSETS: Stores and Spares 12 314,037 311,862 Stock-in-Trade 13 38,502 35,158 Trade Debtors-Unsecured Considered Good 13,531 4,087 Advances and Prepayments 14 60,737 77,337 Cash and Bank Balances 15 42,784 80,226 469,591 508,670 1,212,554 1,324,209 =========================================================================== =========================================================================== PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2001 =========================================================================== NOTE (Rupees in Thousands) 2001 2000 =========================================================================== SALES-NET 16 1,173,676 1,208,111 COST OF SALES 17 1,177,012 970,826 GROSS (LOSS)/PROFIT (3,336) 237,285 OPERATING EXPENSES General & Administrative 18 50,968 40,022 Selling & Distribution 19 25,993 24,113 76,961 64,135 (80,297) 173,150 FINANCIAL CHARGES 20 40,680 33,716 OTHER INCOME 21 (6,529) (3,634) WORKERS' FUNDS 22 45 11,836 34,196 41,918 (LOSS)/PROFIT BEFORE TAXATION (114,493) 131,232 PROVISION FOR TAXATION Current Year 23 5,901 63,130 Prior Year 2,028 2,376 Deferred (42,475) (17,658) (34,546) 47,848 (LOSS)/PROFIT AFTER TAXATION (79,947) 83,384 (Rupees) (Loss)/Earning per share - basic 24 (1.75) 1.83 =========================================================================== ===========================================================================
CASH FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 2001
===========================================================================
(Rupees in Thousands)
2001 2000
===========================================================================
Cash Flows from Operating Activities
(Loss)/Profit before Taxation (114,493) 131,232
Adjustments for:
Depreciation 81,003 89,800
Gain on Disposal of Fixed Assets -658 (1,002)
Loss on Retirement/Scrapping of Fixed Assets - 3,670
Financial Charges 40,680 33,716
Operating Profit before Working Capital Changes 6,532 257,416
Increase in Stores and Spares (2,175) (26,235)
Increase in Stock-in-Trade (3,344) (17,691)
Increase in Trade Debtors (9,444) (1,278)
Increase in Advances and Prepayments (6,461) (4,105)
Increase/(Decrease) in Short Term Running Finance 159,341 (30,834)
Decrease in Creditors,
Accrued and Other Liabilities (9,812) (2,707)
Cash Generated from Operations 134,637 174,566
Financial Charges Paid (46,431) (95,822)
Income Tax Paid/Deducted at Source (42,098) (9,173)
Long Term Deposits Received (2,100) (2,105)
Long Term Deposits Given 2 (79)
Net Cash Flow from Operating Activities 44,010 67,387
Cash Flows from Investing Activities
Fixed Capital Expenditure (6,925) (9,063)
Capital Work-in-progress (2,456) -
Sale Proceeds of Fixed Assets 1,610 1,918
Net Cash used in Investing Activities (7,771) (7,145)
Cash Flows from Financing Activities
Repayment of Long Term Loans (28,453) (28,453)
Dividend Paid (45,228) (2)
Net Cash used in Financing Activities (73,681) (28,455)
Net (Decrease)/Increase in Cash & Bank Balances (37,442) 31,787
Cash and Bank Balances as at July 1 80,226 48,439
Cash and Bank Balances as at June 30 42,784 80,226
===========================================================================NOTES TO THE ACCOUNTS FOR THE YEAR ENDED JUNE 30, 20014. LONG TERM LOANS � SECURED ===========================================================================
(Rupees in Thousands)
NOTE 2001 2000
===========================================================================
Local Currency Loans:
National Development Finance Corporation:
Term Loan No. 1 4.1 52,800 73,920
Term Loan No.4 4.2 18,333 25,666
71,133 99,586
Less: Current Maturity 28,453 28,453
42,680 71,133
===========================================================================4.1. This represents the outstanding balance as on June 30, 1989 of foreign currency loan of US Dollar 28,550 million obtained from National Development Finance Corporation, converted into local currency term loan of Rupees 446,078 million at the exchange rate prevailing on June 30, 1989.The balance due as on May 01, 1999 has been staggered by National Development Finance Corporation and is payable in 10 semi annual installments commencing from June 30, 1999. Markup @ 18% per annum will be charged and in case of delay in payment additional markup @ 4% per annum will be charged on the amount remaining unpaid after the due date. The loan is secured by way of a first charge on all movable and immovable properties of the Company and personal guarantees of sponsoring directors. 4.2. This represents the unpaid interest amounting to Rs. 195,550 million on the above foreign currency loan capitalized by National Development Finance Corporation as local currency term loan. The balance due as on May 01, 1999 has been staggered by National Development Finance Corporation and is payable in 10 semi annual installments commencing from June 30, 1999. Markup @ 18% per annum will be charged and in case of delay in payment additional markup @ 4% per annum will be charged on the amount remaining unpaid after the due date. The loan is secured by way of a first charge on all movable and immovable properties of the Company and personal guarantees of sponsoring directors. 5. DEFERRED LIABILITIES ===========================================================================
(Rupees in Thousands)
NOTE 2001 2000
===========================================================================
Deferred Taxation 5.1 153,507 195,982
Deferred Markup 45,236 50,987
Less: Transferred to Current Liabilities 12,186 5,752
33,050 45,235
186,557 241,217
===========================================================================5.1. DEFERRED CREDITS ARISING IN RESPECT OF:===========================================================================
(Rupees in Thousands)
2001 2000
===========================================================================
Accelerated Tax Depreciation 176,001 195,982
Deferred debits arising in respect of:
Assessed Tax Losses (22,494) -
153,507 195,982
===========================================================================6. LONG TERM DEPOSITS � UNSECURED===========================================================================
(Rupees in Thousands)
NOTE 2001 2000
===========================================================================
Dealers 6.1 12,462 14,562
Suppliers and Contractors 6.2 3,175 3,175
15,637 17,737
===========================================================================6.1. This represents interest free security deposits, received from cement agency holders and is repayable on cancellation or withdrawal of agency.The Company on terms of written contract with the agency holders is entitled to utilise the deposits, as provided in Section 226 of the Companies Ordinance, 1984. 6.2. This represents interest free security deposits received from suppliers and contractors and is repayable after the satisfactory execution or the cancellation of agreements. The Company is entitled in terms of written contract with the contractors and suppliers to utilise the deposits, as provided in Section 226 of the Companies Ordinance, 1984. 7. SHORT TERM RUNNING FINANCE � SECURED The Company has aggregate running finance facilities of Rs. 170.0 million (2000: Rs. 120.0 million) available from a financial institution and a commercial bank. These arrangements are secured by way of first charge over all the company's movable and immovable properties and hypothecation of company's stock in trade, stores & spares, book debts, machinery and personal guarantees of sponsoring directors of the company. The Rate of markup ranges from 45-55 paisas (2000: 50-57 paisas) per Rs. 1,000 per day. 8. CREDITORS, ACCRUED AND OTHER LIABILITIES ===========================================================================
(Rupees in Thousands)
NOTE 2001 2000
===========================================================================
Creditors for Goods 8,080 7,147
Accrued Expenses 25,040 20,400
Workers' Profit Participation Fund 8.1 - 7,153
Markup on Long Term Finance Utilised
Under Markup Arrangements - Secured 12,186 5,752
Advances from Customers 83,915 82,853
Due to Associated Companies 53,161 71,099
Royalty Payable 270 239
Excise Duty Payable 1,381 1,392
Sales Tax Payable 12,309 150
Taxes Withheld 388 233
Unclaimed Dividend 9,944 9,587
Unpaid Dividend 262 248
Other Liabilities 1,363 5,053
208,299 211,306
===========================================================================8.1. WORKERS' PROFIT PARTICIPATION FUND===========================================================================
(Rupees in Thousands)
2001 2000
===========================================================================
Opening Balance 7,153 256
Add: Contribution for the year - 7,153
Interest accrued 671 18
7,824 7,427
Less: Payment during the year 7,824 274
- 7,153
===========================================================================9. CAPITAL COMMITMENTS===========================================================================
(Rupees in Thousands)
2001 2000
===========================================================================
Capital commitments for acquisition of
machinery and consultancy. 22,500 -
===========================================================================
==================================================================================================================================================
10. OPERATING FIXED ASSETS
==================================================================================================================================================
(Rupees in Thousands)
COST DEPRECIATION Written
Items As at As At As At During As At Down Value
July 01 Sale/ June-30 Rate July 01 the Adjust- June-30 As At June
2000 Additions Disposals 2001 Percent 2000 year ment 2001 30, 2001
==================================================================================================================================================
Freehold Land 18,084 - - 18,084 - - - - - 18,084
Factory Building
on Freehold Land 248,673 - - 248,673 10% 145,546 10,313 - 155,859 92,814
Non-Factory
Building on Freehold Land 111,180 - - 111,180 5% 41,649 3,477 - 45,126 66,054
Office Premises 2,415 - - 2,415 5% 914 75 - 989 1,426
Plant, Machinery
and Equipments 1 1,438,035 - - 1,438,035 10% 875,329 56,271 - 931,600 506,435
Quarry Transport
Equipments 240,162 - - 240,162 20% 208,689 6,295 - 214,984 25,178
Furniture, Fixtures and
Equipments 26,502 1,461 - 27,963 10% 12,519 1,544 - 14,063 13,900
Motor Vehicles 27,770 5,464 2,899 30,335 20% 17,141 3,028 1,947 18,222 12,113
2001 2,112,821 6,925 2,899 2,116,847 1,301,787 81,003 1,947 1,380,843 736,004
2000 2,114,098 9,063 10,340 2,112,821 1,217,741 89,800 5,754 1,301,787 811,034
==================================================================================================================================================
===========================================================================
2001 2000
===========================================================================
ALLOCATION:
===========================================================================
Excavation Cost 17,975 20,803
Manufacturing Cost 59,396 65,596
Administrative and General 2,795 2,637
Selling and Distribution 837 764
81,003 89,800
===========================================================================
================================================================================================================
10.1. DETAILS OF OPERATING FIXED ASSETS DISPOSED OFF DURING THE YEAR IS AS FOLLOWS:
================================================================================================================
(Rupees in Thousands)
================================================================================================================
Accumulated Book Sale Mode of Particulars of
Description Cost Depreciation Value Proceeds Disposal Purchaser
================================================================================================================
VEHICLES:
Lancer 357 313 44 80 Negotiation Sheikh Mohsin Sadiq
House # 129, Market Road
Rawalpindi
Subaro Car 226 194 32 65 Negotiation Mr. Amjad Ali
House # l, Street # 1,
Phase 1, British Homes,
Peshawar Road,
Rawalpindi
Toyota Sprinter 261 212 49 160 Negotiation Mr. Shahid Mahmood Butt
House #4, Street 3,
Muslim Colony,
Samanabad, Lahore
Suzuki Khyber 270 219 51 120 Negotiation Mr. Nizamullah Khan
House # 183, PIB Colony,
Karachi
Toyota Corona 700 494 206 325 Negotiation Mr. Mohammed Usman Saeed
House # 19, Officers Colony,
Hayat Town, Wah
Toyota Corolla 631 424 207 430 Negotiation Mr. Wahid Hashim
B-212, Block-18,
Gulshan-e-Iqbal, Karachi
Suzuki Khyber 454 91 363 430 Insurance Adamjee Insurance
Claim Co. Ltd, & EFU General
Insurance Co. Ltd. Karachi
2001 2,899 1,947 952 1,610
2000 10,340 5,754 4,586 1,918
================================================================================================================11. CAPITAL WORK IN PROGRESS This represents the advances given for the procurement of machinery for the modification of existing firing system of the plant to make provision of coal firing and project examination and processing fee paid for availing facility from a financial institution. The total cost is estimated at Rs. 130 million which shall be financed partly by the company from its own resources and partly by loans from financial institutions, banks and leasing Companies. Messrs. Saudi Pak Industrial and Agricultural Investment Company (Private) Limited has already committed a loan of Rs. 50 million in this respect. The financial assistance from other sources is at advance stage. The management is of the opinion that with the modification of firing system the benefit of lower fuel cost shall accrue to the Company. 12. STORES AND SPARES ===========================================================================
(Rupees in Thousands)
2001 2000
===========================================================================
Stores 34,598 26,563
Spares 279,439 279,301
Store in transit - 5,998
314,037 311,862
===========================================================================13. STOCK IN TRADE===========================================================================
(Rupees in Thousands)
2001 2000
===========================================================================
Finished Goods 15,315 5,833
Work-in-Process 15,904 19,573
Raw Material 2,966 4,231
Packing Material 4,317 5,521
38,502 35,158
===========================================================================14. ADVANCES AND PREPAYMENTS===========================================================================
(Rupees in Thousands)
NOTE 2001 2000
===========================================================================
Advances-unsecured considered good:
Employees 1,987 1,991
Executives 14.1 4,732 2,868
Suppliers and Contractors 19,851 15,424
Advance Income Tax 18,845 41,906
Advance Excise Duty 1,491 9,877
Prepayments 13,831 5,271
60,737 77,337
===========================================================================14.1. The maximum aggregate amount due from executives of the Company at the end of any month during the year was Rs. 5.162 million (2000: Rs. 3.115 million).15. CASH AND BANK BALANCES ===========================================================================
(Rupees in Thousands)
2001 2000
===========================================================================
In Hand 574 481
With Banks 42,210 79,745
42,784 80,226
===========================================================================16. SALES � NET===========================================================================
(Rupees in Thousands)
2001 2000
===========================================================================
Sales 1,971,100 1,849,478
Less: Excise Duty 527,367 641,367
Sales Tax 227,391 -
Commission 42,666 -
797,424 641,367
1,173,676 1,208,111
===========================================================================17. COST OF SALES===========================================================================
(Rupees in Thousands)
2001 2000
===========================================================================
Raw and Packing Material Consumed:
Opening Stock 9,752 9,784
Purchases 112,517 118,122
Excavation Cost 72,988 73,129
195,257 201,035
Closing Stock (7,283) (9,752)
187,974 191,283
Fuel and Power 751,245 562,111
Stores and Spares Consumed 76,315 64,811
Salaries, Wages and Benefits 69,982 68,407
Insurance 16,542 16,521
Repairs and Maintenance 3,269 3,387
Rent, Rates and Taxes 60 61
Depreciation 59,395 65,596
Other Manufacturing Overheads 18,043 16,372
1,182,825 988,549
Add: Opening Work-in-Process 19,573 3,294
Less: Closing Work-in-Process (15,904) (19,573)
Cost of Goods Manufactured 1,186,494 972,270
Add: Opening Finished Goods 5,833 4,389
Less: Closing Finished Goods (15,315) (5,833)
Cost of Sales 1,177,012 970,826
===========================================================================18. GENERAL & ADMINISTRATIVE EXPENSES===========================================================================
(Rupees in Thousands)
NOTE 2001 2000
===========================================================================
Salaries, Wages and Benefits 22,603 19,549
Traveling and Conveyance 6,097 856
Vehicles Running Expenses 2,870 2,694
Communications 1,926 2,040
Printing and Stationery 818 584
Rent, Rates and Taxes 2,634 2,764
Utilities 2,655 2,099
Repairs and Maintenance 1,372 755
Legal and Professional Charges 2,969 3,198
Auditors' Remuneration 18.1 283 275
Donations 18.2 752 316
Depreciation 2,795 2,637
Miscellaneous 3,194 2,255
50,968 40,022
===========================================================================18.1. AUDITORS REMUNERATION=============================================================================
2001 2000
=============================================================================
Rahim Iqbal Taseer Hadi Rahim Iqbal Taseer Hadi
Rafiq & Co. Khalid & Co. Rafiq & Co. Khalid & Co.
=============================================================================
Audit Fee 112 112 112 112
Out of Pocket Expenses 27 32 26 25
139 144 138 137
283 275
=============================================================================18.2. None of the Directors or their spouses have any interest in the above donee Funds.19. SELLING & DISTRIBUTION EXPENSES ===========================================================================
(Rupees in Thousands)
2001 2000
===========================================================================
Salaries, Wages and Benefits 10,141 10,120
Traveling and Conveyance 795 564
Vehicles Running Expenses 1,497 1,450
Communications 1,600 1,461
Rent, Rates and Taxes 950 916
Repairs and Maintenance 381 358
Advertisement 4,339 3,970
Marking Fee 1,866 1,947
Depreciation 837 764
Miscellaneous 3,587 2,563
25,993 24,113
===========================================================================20. FINANCIAL CHARGES===========================================================================
(Rupees in Thousands)
2001 2000
===========================================================================
Markup on:
Long Term Loans 25,630 31,046
Running Finance 11,077 1,894
Interest on Workers' Profit Participation Fund 671 18
Legal Documentation Fee 2,057 -
Bank Commission and Charges 1,245 758
40,680 33,716
===========================================================================21. OTHER INCOME===========================================================================
(Rupees in Thousands)
2001 2000
===========================================================================
Markup on Bank Deposits 5,178 5,198
Gain on Sale of Fixed Assets 658 1,002
(Loss) on Retirement/Scrapping of Fixed Assets - -3,670
Scrap Sales 676 1,069
Miscellaneous 17 35
6,529 3,634
===========================================================================22. WORKERS FUNDS===========================================================================
(Rupees in Thousands)
2001 2000
===========================================================================
Workers' Profit Participation Fund - 7,153
Workers' Welfare Fund 45 4,683
45 11,836
===========================================================================23. TAXATIONThe Income Tax Assessments of the Company have been finalised upto and including Assessment year 2000-2001. 24. (LOSS)/EARNING PER SHARE � BASIC ===========================================================================
(Rupees in Thousands)
2001 2000
===========================================================================
(Loss)/Profit after taxation (79,946,118) 83,383,719
Number of ordinary shares 45,600,000 45,600,000
(Loss)/Earning per share (1.75) 1.83
=========================================================================== |