| Agriautos Industries Ltd - 2001 |
=================================================================================== BALANCE SHEET AS AT JUNE 30, 2001 =================================================================================== 2001 2000 Note (Rs. in �000�) =================================================================================== ASSETS NON-CURRENT ASSETS Operating fixed assets 3 95,905 105,548 Long term deposits 1,936 1,539 Deferred cost 4 972 1,945 CURRENT ASSETS Stores and spares 5 9,121 10,878 Stock-in-trade 6 60,464 58,124 Trade debts 7 68,269 53,477 Loans, advances, deposits, prepayments and other receivables 8 23,922 25,063 Cash and bank balances 9 269 1,454 162,045 148,996 TOTAL ASSETS 260,858 258,028 EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Authorised capital 40,000,000 (2000: 40,000,000) ordinary shares of Rs.5 each 200,000 200,000 Issued, subscribed and paid-up capital 10 120,000 120,000 Capital reserve 12,598 12,598 Accumulated profit /(loss) 1,480 (16,502) SHAREHOLDERS� EQUITY 134,078 116,096 NON-CURRENT LIABILITIES Deferred taxation 11 3,172 - Long term loans 12 15,988 23,441 Obligations under finance lease 13 969 - CURRENT LIABILITIES Current portion of long term loans 12 8,119 9,391 Current portion of obligations under finance lease 13 467 - Short term finances 14 33,395 42,959 Advances from others 15 4,086 20,017 Creditors, accrued and other liabilities 16 49,828 41,924 Provision for taxation 4,756 4,200 Proposed dividend 6,000 - 106,651 118,491 CONTINGENCIES AND COMMITMENTS 17 TOTAL EQUITY AND LIABILITIES 260,858 258,028 =================================================================================== =================================================================================== PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2001 =================================================================================== 2001 2000 Note (Rs. in �000�) =================================================================================== TURNOVER 18 342,922 296,114 Less: Cost of goods sold 19 279,729 235,756 GROSS PROFIT 63,193 60,358 Other income 20 5,140 3,892 68,333 64,250 Less: Administrative expenses 21 13,103 14,483 Selling and distribution expenses 22 13,064 11,109 Other charges 24 27,842 25,990 OPERATING PROFIT 40,491 38,260 Less: Financial charges 25 11,180 17,325 Impairment of closed plants - 12,692 PROFIT BEFORE TAXATION 29,311 8,243 Less: Taxation - current 26 1,746 1,499 - prior 411 - - deferred 3,172 - 5,329 1,499 Profit after taxation 23,982 6,744 Accumulated loss brought forward (16,502) (23,246) Accumulated profit/(loss) carried forward 7,480 (16,502) LESS: APPROPRIATION Proposed dividend 5% (2000 Nil) 6,000 - Accumulated profit/(loss) carried forward 1,480 (16,502) Basic earnings per share 27 1.00 0.28 =================================================================================== =================================================================================== STATEMENT OF CHANGES IN FINANCIAL POSITION (CASH FLOW STATEMENT) FOR THE YEAR ENDED JUNE 30, 2001 =================================================================================== 2001 2000 Note (Rs. in �000�) =================================================================================== CASH FLOW FROM OPERATING ACTIVITIES Cash generated from operations 28 31,966 20,849 Financial charges paid (11,903) (18,589) Income tax paid (4,144) 4,597 Long term deposits (397) 19 Net cash flow from operating activities 15,522 6,876 CASH FLOW FROM INVESTING ACTIVITIES Fixed capital expenditures (3,222) (6,686) Proceeds from sale of fixed assets 3,368 1,396 Net cash flow from investing activities 146 (5,290) CASH FLOW FROM FINANCING ACTIVITIES Repayment of long term loan (8,725) (9,275) Obligations under finance lease 1,436 - Net cash flow from financing activities (7,289) (9,275) NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 8,379 (7,689) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR (41,505) (33,816) CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 29 (33,126) (41,505) ===================================================================================NOTES TO THE ACCOUNTS FOR THE YEAR ENDED JUNE 30, 2001 3. OPERATING FIXED ASSETS =======================================================================================================================================================================================================
COST DEPRECIATION
Accumulated
Depreciation Written down
As at Additions/ As at Rate of As at Additions/ As at value as at
Assets July 1, 2000 (Deletions) June 30, 2001 Depreciation July 1, 2000 (Deletions) Impairment June 30, 2001 June 30, 2001
(Rupees in �000) (Rupees in �000)
=======================================================================================================================================================================================================
OWNED
Freehold land 1,652 - 1,652 - - - - - 1,652
Buildings on freehold land 36,305 - 38,305 5-10 24,348 1,003 - 25,351 10,954
Plant, machinery and equipment 211,259 890 195,378 10 130,004 8,117 (4,286) 122,330 73,048
(16,771) (11,505)
Furniture and fixtures 4,161 136 4,297 10 2,052 224 - 2,276 2,021
Office equipment 1,311 54 1,365 20 822 109 - 931 434
Dies and tools 2,579 - 2,579 25 2,358 55 - 2,413 1,66
Computer equipment 6,227 381 6,608 30 3,699 872 - 4,571 2,037
Vehicles 8,350 - 8,012 20 3,029 1,040 - 3,851 4,161
(338) (218)
Canteen equipment 43 85 128 10 27 10 - 37 91
LEASED
Vehicles - 1,676 1,676 20 - 335 - 335 1,341
2001 271,887 3.222 258,000 166,339 11,765 (4,286) 182,095 95,905
(17,109) (11,723)
2000 247,689 25,402 271,887 141,190 12,977 12,692 166,339 105,548
(1,184) (520)
=======================================================================================================================================================================================================3.1. DEPRECIATION CHARGE FOR THE YEAR HAS BEEN ALLOCATED AS FOLLOWS:===================================================================================
2001 2000
Note (Rs. in �000�)
===================================================================================
Cost of goods sold 19 10,004 11,163
Administrative expenses 21 1,203 1,340
Setting and distribution expenses 22 468 474
11,765 12,977
===================================================================================3.2. THE FOLLOWING FIXED ASSETS WERE DISPOSED OFF DURING THE YEAR=====================================================================================================================================================================
Accumulated Impairment Written Sales Profit/ Mode of
Particulars of Fixed Assets Cost Depreciation losses down value proceeds (loss) disposal Particulars of Buyers
=====================================================================================================================================================================
Suzuki MeheanZ-7753 27 10 - 17 100 83 Company Car Scheme Mr. Javed Lodhi
Motorcycles 311 208 - 103 293 190 As per CBA Agreement Various employees
Vertical Upsetting
Machine 45KVA 543 373 142 28 66 38 Auction Mr. Ashraf Ghatschi
through ABC Neelam Ghar
Sim Valve Seat Grinder 724 497 190 37 61 24 Auction Mr. Ashraf Ghanchi
through ABC Neelam Ghar
AMT Horizontal Surface Grinder 362 248 95 19 32 13 Auction Mr. Ashraf Ghanchi
through ABC Neelam Ghar
Hasenclever Friction Screw Press 2,414 1,656 632 126 282 156 Auction Mr. Ashraf Ghanchi
through ABC Neelam Ghar
Friction Welding Machine 725 497 190 38 44 6 Auction Mr. Ashraf Ghanchi
through ABC Neelam Ghar
Vertical Upsetting Machine 25KVA 821 563 215 43 148 105 Auction Mr. Ghulam Jilani
through ABC Neelani Ghar
Cincinnati 6� Centreless Grinder 725 497 190 38 68 30 Auction Mr. Ghulam .lilani
through ABC Neelant Ghar
Churchill Valve Scat Grinder 1,449 994 379 76 58 (18) Auction Mr. Ghulam Jilani
through ABC Neelani Ghar
Gisholt Tip Grinder 24 17 6 1 7 6 Auction Mr. Ghulam Jilani
through ABC Neelam Ghar
Lumsden Tip Grinder 36 25 9 2 6 4 Auction Mr. Ghulam Jilani
through ABC Neelam Ghar
Abrassive Cut-off Machine 24 17 6 1 8 7 Auction Mr. Haji Balooch
through ABC Neelam Ghar
Cincinnati 6� Centreless Grinder 725 497 190 38 97 59 Auction Mr. Muhammad Ashraf
through ABC Neelam Ghar
Induction Hardening Machine 2,414 1,656 632 126 175 49 Auction Mr. Muhammad Ashraf
through ABC Neelam Ghar
Abrassive Cut-off Machine 24 17 6 1 10 9 Auction Mr. Safeed Ullah
through ABC Neelam Ghar
Commercial Eccentric Press 61 41 16 4 58 54 Auction Mr. Safeed Ullalt
through ABC Neelam Ghar
Suzuki line Centering & Facing
Machine Camshaft 400 274 - 126 24 (021) Auction Mr. Safeed Ullah
through ABC Neelam Ghar
Vertical Upsetting Machine 45KVA 543 373 142 28 63 35 Auction Mr. Tahir Hameed
through ABC Neelam Ghar
Knee Type Milling Machine 48 33 13 2 38 36 Auction Mr. Tahir Hameed
through ABC Neelam Ghar
Friction Welding Machine 724 497 190 37 649 612 Negotiation Mr. Ashraf Ghanchi.
Junker 2,777 1,905 727 145 449 304 Negotiation Mr. Ashraf Ghanchi.
Magdeburger Auto Lathe #1 604 414 158 32 324 292 Negotiation Mr. Ashraf Ghanchi.
Magdeburger Auto Lathe 42 604 414 158 32 308 276 Negotiation Mr. Ashraf Ghanchi.
17,109 11,723 4,286 1,100 3,366 2,268
=====================================================================================================================================================================4. DEFERRED COST===================================================================================
2001 2000
(Rs. in �000�)
===================================================================================
Licence fees 1,945 2,918
Less: Amortisation during the year 973 973
Balance at end of the year 972 1,945
===================================================================================5. STORES AND SPARES===================================================================================
2001 2000
(Rs. in �000�)
===================================================================================
Stores 3,224 3,426
Small tools & spares 5,897 7,452
9,121 10,878
===================================================================================6. STOCK-IN-TRADE===================================================================================
2001 2000
(Rs. in �000�)
===================================================================================
Raw material 38,590 36,615
Packing material 1,004 1,336
Goods-in-transit 11,904 8,188
Work-in-process 6,346 4,804
Finished goods 2,620 7,181
60,464 58,124
===================================================================================7. TRADE DEBTS � UNSECURED===================================================================================
Note 2001 2000
(Rs. in �000�)
===================================================================================
Considered good 68,269 53,477
Considered doubtful 1,937 2,009
70,206 55,486
Less: Provision for doubtful debts 7.1 1,937 2,009
68,269 53,477
===================================================================================7.1. The amount has been arrived at after writing off Rs.0.372 million (2000: Rs. Nil) pertaining to the debts considered irrecoverable.8. LOANS, ADVANCES, DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES ===================================================================================
Note 2001 2000
(Rs. in �000�)
===================================================================================
Considered good - Unsecured
Loans and advances
Loans to staff and workers 89 142
Advances to:
- suppliers and contractors for
- goods and services 8.1 2,225 3,464
staff for purchases and expenses 174 95
Income tax 12,693 16,330
15,181 20,031
Trade deposits
Container deposits 157 160
Prepayments 50 42
Other receivables
Claim receivable - 646
Octroi refundable 355 1,779
Custom duty guarantee margin receivable - 157
Tax refundable 8,179 1,999
Others - 249
8,534 4,830
23,922 25,063
===================================================================================8.1. Advances to suppliers and contractors for goods and services include advance to associated undertaking aggregating to Rs. Nil (2000:Rs.0.200 million).8.2. The maximum aggregate amount of advance to associated undertaking at the end of any month during the year was Rs. 0.200 million (2000:Rs.0.200 million). 9. CASH AND BANK BALANCES ===================================================================================
2001 2000
(Rs. in �000�)
===================================================================================
In hand - 27
At bank in current accounts 269 1,427
269 1,454
===================================================================================10. ISSUED, SUBSCRIBED AND PAID-UP CAPITAL===================================================================================
2001 2000
(Rs. in �000�)
===================================================================================
22,800,000 (2000: 22,800,000) Ordinary shares of
Rs. 5 each fully paid in cash 114,000 114,000
1,200,000 (2000:1,200,000) Ordinary shares of
Rs. 5 each issued as fully paid bonus shares 6,000 6,000
24,000,000 120,000 120,000
===================================================================================11. DEFERRED TAXATION===================================================================================
2001 2000
(Rs. in �000�)
===================================================================================
3,172 -
===================================================================================Net deferred tax liability is composed of differences in accelerated depreciation allowances amounting to Rs. 5.925 million offset by gross deferred tax asset comprising of carried forward tax losses, leased assets and other provisions amounting to Rs. 1.444 million, Rs. 0.031 million and Rs. 1.278 million respectively.The deferred tax balance as at June 30, 2000 amounted to Rs. 4.142 million debit, which was not recongnised on the grounds of prudence. 12. LONG TERM LOANS - SECURED ===================================================================================
Note 2001 2000
(Rs. in �000�)
===================================================================================
From banks
- Demand finance 12.1 23,992 31,329
- Deferred mark-up 12.2 115 1,503
24,107 32,832
Less: current portion shown under current liabilities
- Demand finance 8,004 8,004
- Deferred mark-up 115 1,387
8,119 9,391
15,988 23,441
===================================================================================12.1. The demand finance facility of Rs.40 million (2000:Rs.40 million) has been granted by the bank against first equitable mortgage on all present and future movable and immovable properties of the company ranking pari passu with other creditors.It carries markup at Re.0.39 per thousand rupees per day (2000: Re.0.39 per thousand rupees per day). The loan is repayable in sixty equal monthly installments commencing from June 30, 1999. 12.2. Deferred mark-up on a loan has been converted into a separate interest free loan amounting to Rs.2.774 million. This loan is repayable in 24 equal monthly installments starting from June 30, 1999 and is secured against first equitable mortgage on all present and future movable and immovable properties of the company ranking pari passu with other creditors. 13. OBLIGATIONS UNDER FINANCE LEASE The company has entered into finance lease agreement in respect of motor vehicles. The rate of mark-up used as the discounting factor is 16.32% per annum. The amounts of future payments and the periods during which they fall due are: ===================================================================================
Lease Present Lease Present
Payments value of Payments Value of
Lease Payments Lease Payments
2001 2000
===================================================================================
Year ending June 30, 2002 636 467 - -
Year ending June 30, 2003 636 547 - -
Year ending June 30, 2004 433 422 - -
1,705 1,436 - -
Finance charges allocated to
future periods (269) - - -
1,436 1,436 - -
Obligation shown under current
liabilities (467) (467) - -
969 969 - -
===================================================================================At the end of lease period the ownership of assets will be transferred to the company on payment of residual value. There are no financial restrictions in the lease agreements.14. SHORT TERM FINANCES ===================================================================================
2001 2000
Note (Rs. in �000�)
===================================================================================
From banks - Secured
Running finances utilised under mark-up
arrangements 14.1 32,395 39,498
Others Short term loan
Secured 14.2 1,000 -
Unsecured 14.3 - 3,461
33,395 42,959
===================================================================================14.1. The running finance facility of Rs.46 million (2000:Rs.46 million) and finance under trust receipt facility of Rs. 8 million (2000:Rs. 3 million) obtained from various banks are secured by first and second equitable mortgage on all present and future movable and Immovable properties of the company ranking pari passu with other creditors and by Joint hypothecation of stock in-trade, stores and spares and trade debts.The mark-up rate on the above finances is Re.0.4384 par thousand rupees per day (2000: Re. 0.39 to Re.0.442 per thousand rupees per day). At year end Rs. 13.605 million (2000:Rs.9.502 million) remains unutilized. 14.2. This loan carries a mark-up at Re. 0.452 per thousand rupees per day and repayable at Rs. 0.500 million per month. The loan is secured against insurance guarantee. 14.3. This interest free loan has been obtained from a customer for clearance of imported consignments, payable in six equal monthly instalments. 15. ADVANCES FROM OTHERS ===================================================================================
Note 2001 2000
(Rs. in �000�)
===================================================================================
Secured 15.1 2,383 3,177
Unsecured 1,703 16,840
4,086 20,017
===================================================================================15.1. This advance was obtained from Original Equipment Manufacturers (OEM) for the acquisition, construction, erection and installation of plant and machinery for manufacture of products to be developed by the company on their behalf.This advance is secured against insurance guarantee. 16. CREDITORS, ACCRUED AND OTHER LIABILITIES ===================================================================================
Note 2001 2000
(Rs. in �000�)
===================================================================================
Trade creditors 19,135 12,305
Mark-up accrued on:
Demand finance 282 -
Short term finances 2,503 3,832
2,785 3,832
Sales tax payable 3,269 1,389
Royalty payable 1,935 5,830
Accrued expenses 8,599 7,442
Workers� profit participation fund 16.1 1,646 339
Workers� welfare fund 73 73
Other liabilities 16.2 12,386 10,714
49,828 41,924
===================================================================================16.1. WORKERS� PROFIT PARTICIPATION FUND===================================================================================
Note 2001 2000
(Rs. in �000�)
===================================================================================
At beginning of the year 339 490
Allocation for the year 24 1,543 241
Less: Payments during the year 236 392
1,646 339
===================================================================================16.2. Amounts due to associated undertakings at the year end aggregated Rs. 0.049 million (2000:Rs.0.045 million).17. CONTINGENCIES AND COMMITMENTS CONTINGENCIES 17.1. Outstanding bank guarantees issued to Collector of Customs as a security against import duty amounts to Rs. 5.199 million (2000:Rs.3.916 million) and outstanding bank guarantee issued to Sui Southern Gas Company amounts to Rs. 0.385 million. 17.2. Outstanding insurance guarantees issued on behalf of the company to Original Equipment Manufacturers (OEM) as a security against mobilization advance amounts to Rs. 7.100 million (2000:Rs.4.600 million). 17.3. Indemnity bonds issued in favour of Collector of Customs as a security against import duties amounts to Rs. 9.656 million (2000:Rs. 23.537 million). 17.4. The Sales Tax Department during the course of sales tax audit for the year ended 1996-97 raised a demand amounting to Rs.6.071 million with additional tax upto the date of the settlement. The Company is contesting the demand in the Sales Tax Tribunal and the management and its advisors are confident that the ultimate outcome will be in the favour of the company. COMMITMENTS 17.5. Commitments in respect of outstanding letters of credit, amounts to Rs. 26.232 million (2000: Rs. 21.418 million). 18. TURNOVER ===================================================================================
2001 2000
(Rs. in �000�)
===================================================================================
Sales 349,275 299,756
Less: Discount 6,353 3,642
Net Sales 342,922 296,114
===================================================================================19. COST OF GOODS SOLD===================================================================================
Note 2001 2000
(Rs. in �000�)
===================================================================================
Raw materials consumed
Opening stock 36,615 35,577
Purchases 192,252 139,383
228,867 174,960
Less: Closing stock (38,590) (36,615)
190,277 138,345
Manufacturing expenses
Salaries, wages and benefits 32,397 33,161
Transportation and travelling 8,119 9,085
Water and power 10,685 10,782
Postage, telephone and telex 735 795
Insurance 356 636
Repairs and maintenance 1,599 3,184
Consumable stores 16,632 14,342
Depreciation 3.1 10,004 11,163
Cartage and octroi charges 918 510
Rent and taxes 600 1,174
Security service charges 35 250
Printing and stationery 634 469
Technical studies and development charges 2,539 -
Amortisation expense 973 973
Others 207 205
86,433 86,729
Work-in-process
Opening inventory 4,804 6,685
Less: Closing inventory 6,346 4,804
Cost of goods manufactured 275,168 226,955
Finished goods
Opening inventory 7,181 15,982
Less: Closing inventory (2,620) (7,181)
279,729 235,756
===================================================================================20. OTHER INCOME===================================================================================
Note 2001 2000
(Rs. in �000�)
===================================================================================
Profit on disposal of fixed assets 3.2 2,268 732
Interest income - 1,453
Scrap sales 586 -
Liabilities written back 1,498 1,707
Others 788 -
5,140 3,892
===================================================================================21. ADMINISTRATIVE EXPENSES===================================================================================
Note 2001 2000
(Rs. in �000�)
===================================================================================
Salaries, wages and benefits 5,124 6,004
Directors� remuneration 1,950 1,766
Transportation and travelling 820 798
Water and power 369 207
Rent and taxes 423 589
Postage, telephone and telex 687 659
Advertisement and publicity 107 118
Legal and professional charges 1,074 1,475
Repairs and maintenance 171 371
Depreciation 3.1 1,293 1,340
Insurance 191 262
Security services charges 321 80
Printing and stationery 373 556
Others 200 258
13,103 14,483
===================================================================================22. SELLING AND DISTRIBUTION EXPENSES===================================================================================
Note 2001 2000
(Rs. in �000�)
===================================================================================
Salaries, wages and benefits 2,959 2,927
Transportation and travelling 1,339 1,422
Postage, telephone and telex 218 111
Advertisement and publicity 3,236 1,494
Insurance 88 355
Royalty 2,637 2,315
Depreciation 3.1 468 474
Freight and octroi charges 1,337 854
Bad debts 300 300
Printing and stationery 63 122
Security services charges - 41
Repairs and maintenance 2 5
Others 417 689
13,064 11,109
===================================================================================23. RETIREMENT BENEFITSThe charge for retirement benefits of Rs. 1.989 million (2000: Rs. 1:831 million) is included in the figures of salaries, wages and benefits of manufacturing, administrative and selling and distribution expenses. 24. OTHER CHARGES ===================================================================================
Note 2001 2000
(Rs. in �000�)
===================================================================================
Auditors� remuneration 24.1 105 93
Workers� profit participation fund 16.1 1,543 241
Donations 24.2 27 64
1,675 398
===================================================================================24.1. AUDITORS� REMUNERATION===================================================================================
2001 2000
(Rs. in �000�)
===================================================================================
Audit fee 70 70
Out of pocket expenses 35 23
105 93
===================================================================================24.2. NONE OF THE DIRECTORS OR THEIR SPOUSES HAD ANY INTEREST IN ANY OF THE DONEES25. FINANCIAL CHARGES ===================================================================================
2001 2000
(Rs. in �000�)
===================================================================================
Mark-up on long term loans 3,917 5,769
Mark-up on short term finances 6,612 7,033
Mark-up on advances from others 324 4,104
Bank charges, commission and other charges 196 419
Mark-up on assets subject to finance lease 131 -
11,180 17,325
===================================================================================26. TAXATIONCURRENT The company�s income tax assessments have been finalised upto and including assessment year 1998-99. 27. BASIC EARNINGS PER SHARE Basic earnings per share has been computed by dividing the net profit for the year after taxation by the number of Ordinary shares issued by the company. 28. CASH GENERATED FROM OPERATIONS ===================================================================================
Note 2001 2000
(Rs. in �000�)
===================================================================================
Profit before taxation 29,311 8,243
Adjustment for non cash charges and other items
- Depreciation 11,765 12,977
- Profit on disposal of fixed assets (2,268) (732)
- Impairment loss due to closed plants - 12,692
- Financial charges 10,856 17,325
- Provision for workers profit participation fund 1,543 241
- Amortization of deferred cost 5 973 973
- Liabilities written back (1,498) (1,707)
- Working capital changes 28.1 (18,716) (29,163)
31,966 20,849
===================================================================================28.1. WORKING CAPITAL CHANGES===================================================================================
2001 2000
(Rs. in �000�)
===================================================================================
- (Increase)/Decrease in current assets
Stock and stores (583) 8,071
Trade debts (14,792) (12,668)
Loans, advances, deposits, prepayments
& other receivables 3,684 4,401
- Increase/(Decrease) in current liabilities
Creditors, accrued and other liabilities 9,142 (12,656)
Advances from others (15,931) (15,919)
Workers� profit participation fund (236) (392)
(18,716) (29,163)
===================================================================================29. CASH AND CASH EQUIVALENTSCash and cash equivalents comprise of the following items as included in the balance sheet: ===================================================================================
2001 2000
Note (Rs. in �000�)
===================================================================================
- Cash and bank balances 9 269 1,454
- Short term finances 14 (33,395) (42,959)
(33,126) (41,505)
=================================================================================== |