| Highnoon (Laboratories) Ltd - 2001 |
=================================================================================== BALANCE SHEET AS AT DECEMBER, 2001 ----------------------------------------------------------------------------------- NOTE 2001 2000 Rupees Rupees =================================================================================== SHARE CAPITAL 3 92,217,750 92,217,750 RESERVES 4 45,100,000 42,600,000 UNAPPROPRIATED PROFIT 420,725 45,572 137,738,475 134,863,322 SURPLUS ON REVALUATION OF FIXED ASSETS 5 115,982,934 116,264,331 LONG TERM LOANS 6 9,032,961 12,487,754 LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE 7 61,035,534 63,097,579 DEFERRED LIABILITIES 8 31,156,594 25,150,538 LONG TERM ADVANCES AND DEPOSITS 9 4,185,012 1,399,009 CURRENT LIABILITIES Short term bank borrowings - Secured 10 216,535,276 167,256,089 Current portion of long term liabilities 11 29,938,481 18,096,024 Creditors, advances, accrued and other liabilities 12 73,348,645 56,336,464 Proposed dividend 18,443,550 18,443,550 338,265,952 260,132,127 CONTINGENCIES AND COMMITMENTS 13 - - 697,397,462 693,394,660 OPERATING FIXED ASSETS 14 285,694,260 298,157,360 CAPITAL WORK IN PROGRESS 15 47,161,664 37,034,056 332,855,924 335,191,416 LONG TERM INVESTMENTS 16 20,000 16,000 LONG TERM DEPOSITS 308,765 308,765 CURRENT ASSETS Stores, spares and loose tools 17 3,740,237 4,184,079 Stock in trade 18 192,831,774 161,415,396 Trade debts 19 6,558,163 7,382,186 Advances, deposits and prepayments 20 74,915,319 61,872,011 Other receivables 21 80,666,965 34,387,309 Cash and bank balances 22 5,500,315 8,637,498 364,212,773 277,878,479 697,397,462 613,394,660 =================================================================================== =================================================================================== PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2001 ----------------------------------------------------------------------------------- NOTE 2001 2000 Rupees Rupees =================================================================================== SALES � net 23 687,358,335 633,021,100 COST OF SALES 24 449,297,856 425,528,453 GROSS PROFIT 238,060,479 207,492,647 OPERATING EXPENSES Administrative and general 25 63,606,147 59,977,569 Selling and promotional 26 87,404,444 76,974,985 Research and development 27 3,487,380 4,528,436 154,497,971 141,777,990 OPERATING PROFIT 83,562,508 65,714,657 OTHER INCOME 28 4,582,932 3,516,460 88,145,440 69,231,117 FINANCIAL AND OTHER CHARGES 29 55,432,215 39,163,287 PROFIT BEFORE TAXATION: 32,713,225 30,067,829 TAXATION 30 11,394,522 10,096,513 PROFIT AFTER TAXATION 21,318,703 19,971,316 UNAPPROPRIATED PROFIT BROUGHT FORWARD 45,572 517,806 PROFIT AVAILABLE FOR APPROPRIATIONS 21,364,275 20,489,122 APPROPRIATIONS: Transferred to general reserves 2,500,000 2,000,000 Proposed dividend 29% (2000: @ 20%) 18,443,550 18,443,550 20,943,550 20,443,550 UNAPPROPRIATED PROFIT CARRIED TO BALANCE SHEET 420,725 45,572 Earnings per share (Basic and diluted) 31 2.31 2.17 =================================================================================== ===================================================================================
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2001
-----------------------------------------------------------------------------------
2001 2000
Rupees Rupees
===================================================================================
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 46,586,510 117,702,307
Add/(1ess):
Gratuity paid (1,038,494) (1,663,168)
Taxes paid (11,850,913) (12,605,433)
Financial charges paid (52,802,286) (34,986,076)
Long term advances - net 225,036 (740,127)
Net cash flows from operating activities (18,880,147) 67,707,503
CASH FLOWS FROM INVESTING ACTIVITIES
Fixed capital expenditure (8,937,389) (34,039,841)
(Including capital work in progress)
Sale proceeds of fixed assets 8,124,603 13,783,878
Net cash flows from Investing activities (812,786) (20,255,963)
CASH FLOWS FROM FINANCING ACTIVITIES
Long term loan (1,512,246) -
Repayment of liabilities against assets subject to
finance lease (14,224,732) (18,849,449)
Short term bank borrowings 49,279,187 (12,242,558)
Dividend paid (16,986,459) (12,006,871)
Net cash flows from financing activities 16,555,750 (43,098,878)
Net increase in cash and cash equivalents (3,137,183) 4,352,662
Cash and cash equivalents at the beginning of the year 8,637,498 4,284,836
Cash and cash equivalents at the end of the year 5,500,315 8,637,498
A. CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 32,713,225 30,067,829
Add/(less): Adjustments for non-cash charges and other items:
Depreciation 32,136,537 32,920,990
Profit on sale of fixed assets (3,687,966) (2,471,739)
Provision for gratuity 3,900,028 11,782,511
Financial charges 53,021,767 36,947,762
Appreciation in the value of investment (4,000) (1,000)
Deterioration in stores and spares 96,564 104,121
85,462,930 79,282,645
Profit before working capital changes 118,176,155 109,350,474
EFFECT ON CASH FLOWS DUE TO WORKING
CAPITAL CHANGES
(Increase)/decrease in:
Stores, spares and loose tools 347,278 (286,609)
Stock in trade (31,416,378) (26,071,083)
Trade debts 824,023 (1,558,953)
Advances, deposits and prepayments (9,442,395) 25,921,319
Other receivables (46,279,656) 23,057,695
Increase/(decrease) in:
Creditors, advances, accrued and other liabilities 14,377,483 (12,710,536)
(71,589,645) 8,351,833
Cash generated from operations 46,586,510 117,702,307
===================================================================================NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 20013. SHARE CAPITAL ===================================================================================
2001 2000
Rupees Rupees
===================================================================================
Authorized
10,000,000(2000: 10,000,000) Ordinary
shares of Rs. 10 each 100,000,000 100,000,000
Issued, subscribed and paid-up
5,905,000(2000:5,905,000) ordinary shares
of Rs. 10 each fully paid in cash 59,050,000 59,050,000
95,000(2000:95,000) ordinary shares of Rs.10 each issued
for consideration other than cash 950,000 950,000
3,221,775 (2000: 3,221,775) as fully paid bonus
shares of Rs. 10 each 32,217,750 32,217,750
92,217,750 92,217,750
===================================================================================4. RESERVES===================================================================================
2001 2000
Rupees Rupees
===================================================================================
Revenue:
Opening balance 42,600,000 40,600,000
Add: Transferred from profit and loss account 2,500,000 2,000,000
45,100,000 42,600,000
===================================================================================5. SURPLUS ON REVALUATION OF FIXED ASSETS===================================================================================
2001 2000
NOTE Rupees Rupees
===================================================================================
Opening balance 5.1 116,264,331 116,264,331
Less: Realised on disposal of fixed assets 281,397 -
115,982,934 116,264,331
===================================================================================5.1. This represents surplus of Rs. 68,809,377 arising from revaluation of land and plant and machinery on 30 June 1995. Subsequently the land, building and plant & machinery were again revalued on 30 June 1999 resulting in surplus of Rs. 116,264,331. 6. LONG TERM LOAN � SECURED ===================================================================================
2001 2000
NOTE Rupees Rupees
===================================================================================
Loan amount 6.1 12,487,754 14,000,000
Less: Current portion taken as current liability 3,454,793 1,512,246
9,032,961 12,487,754
===================================================================================6.1. This �Medium Term Morabaha LPO� obtained from Faysal Bank Limited carries profit @ 18% (2000: 18%) per annum, it is repayable in fourteen (14) quarterly installments commencing from July 2000 and ending on October 2004 in arrears with a grace period of six months.Securities it is secured by way of: - First joint paripassu charge on the present and future fixed assets of the company to the extent of Rs. 30 million. - Personal guarantees of the sponsoring directors of the company. 7. LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE The rate of interest used as discounting factor ranges from 1.42% to 1.81% (2~00: 1.42% to 1.81%) per month. The amounts of future payments and period during which they fall due are:- ===================================================================================
2001 2000
NOTE Rupees Rupees
===================================================================================
Within one year 39,535,113 23,625,357
Within two to five years 75,000,936 88,444,439
114,536,049 112,069,796
Less: Future financial charges 27,365,403 35,297,982
Net lease obligation 7.1 87,170,646 76,771,814
Less: Current portion taken as current
liability 11 26,135,112 13,674,235
61,035,534 63,097,579
===================================================================================7.1. BREAK-UP OF NET LEASE OBLIGATION===================================================================================
2001 2000
Rupees Rupees
===================================================================================
Within one year 26,135,112 13,674,235
Within two to five years 61,035,534 63,097,579
87,170,646 76,771,814
===================================================================================The rentals are payab1e in monthly equal installments and in case of default of any payment an additional charge at the rate of Rs. 100 or 0.1 % on overdue payments per day shall be paid. The company intends to exercise the option to purchase the assets at the expiry of lease term.8. DEFERRED LIABILITIES ===================================================================================
2001 2000
NOTE Rupees Rupees
===================================================================================
Taxation 8.1 4,092,090 947,568
Gratuity 27,064,504 24,202,970
31,156,594 25,150,538
===================================================================================8.1. It represents deferred taxation on amount of accelerated tax depreciation allowance.9. LONG TERM ADVANCES ===================================================================================
2001 2000
NOTE Rupees Rupees
===================================================================================
Advances 4,533,588 4,308,552
Current portion taken as current liability 11 348,576 2,909,543
4,185,012 1,399,009
===================================================================================This represents advances taken from employees against future sale of vehicles as per company�s policy.10. SHORT TERM BANK BORROWINGS ===================================================================================
2001 2000
NOTE Rupees Rupees
===================================================================================
Secured.
Habib Bank Limited 10.1
Export refinance - 18,700,000
Running finance 11,929,600 27,914,019
Cash finance 43,996,791 83,163,571
Trust receipts - 9,652,965
Damand finance 803,465 -
Payment against documents 6,311,855 -
Finance against imparted merchandise 6,659,000 249,688
Emirates Bank International 10.2
Cash finance 27,635,177 27,575,846
Finance against imported merchandise 11,484,932 -
Faysal Bank Limited 10.3
Morabaha LPO 19,550,000 -
Union Bank Limited 10.4
Export refinance 10,576,000
Current finance 20,454,604
Current finance - pledge 49,097,957
Payment against documents 7,694,929
Unsecured 10.5 340,966 -
Bank overdrawn
216,535,276 167,256,089
===================================================================================10.1. These finances availed from Habib Bank Limited against aggregate sanctioned limit of Rs. 150 million (2000: Rs.188.7 million) carry mark-up at the rate of Rs. 0.4932 (2000: Rs.0.4932) per thousand per day except for export refinance which carries mark-up @7% to 9% (2000:8%) per annum and are secured by way of:- hypothecation/pledge of stock in trade: - First pari passu hypothecation charge on current assets to the extent of Rs. 183.5 million. - First pari passu equitable mortgage charge on fixed assets of the Company to the extent of 90.2 million. - Personal guarantees of all the directors of the Company. 10.2. These facilities obtained from Emirates Bank International against sanctioned limit of Rs. 60 million (2000: Rs. 30 million) carry mark-up @ Rs. 0.4658 (2000: Rs. 0.4521) per thousand per day and are secured by way of first pari passu charges on all present and future fixed assets of the company, lien on import documentsccepted bills of exchange and personal guarantees of directors of the company. 10.3. The facility obtained from Faysal Bank Limited against sanctioned limit of Rs.20 million (2000: Rs. Nil) carry mark-up @ 17.5% (2000: Nil) per annum and is secured by way of: - First joint pari passu charge on the present and future current assets of the Company to the extention of Rs. 30 million. - Personal guarantees of the sponsoring directors of the Company. 10.4. These finances availed from Union Bank Limited against aggregate sanctioned limit of Rs. 143 million (2000: Rs. Nil) carry mark-up at rates ranging from 0.4521 to 0.4658 paisa per thousand per day (2000: Rs. Nil) except for export finance which carries mark-up at the rate of 12% per annum. These facilities are secured by way of: - pledge of raw material and finished goods. - registered hypothecation charge on all present and future current assets of the company to the extent of Rs. 107 million and on all present and future fixed assets of the company to the extent of Rs. 80 million, ranking pari passu with Habib Bank Limited, Emirates Bank International and Faysal Bank Limited. - personal guarantees of sponsor directors. - in addition the bank has right of set off on all deposit accounts and properties of the customer held with the bank. 10.5. This over drawn balance is due to issuance of cheques near balance sheet date. The bank statement however, shows a favourable balance of Rs. 38,214. 11. CURRENT PORTION OF LONG TERM LIABILITIES ===================================================================================
2001 2000
NOTE Rupees Rupees
===================================================================================
Long Term Loan 6 3,454,793 1,512,246
Liabilities against assets subject to finance
lease 7 26,135,112 13,674,235
Long term advances 9 348,576 2,909,543
29,938,481 18,096,024
===================================================================================12. CREDITORS, ADVANCES, ACCRUED AND OTHER LIABILITIES===================================================================================
2001 2000
NOTE Rupees Rupees
===================================================================================
Creditors 32,196,411 25,679,921
Advances from customers 7,189,776 4,455,145
Accrued expenses 7,925,519 6,142,325
Mark-up payable on secured loans 8,676,458 7,498,851
Letters of credit payable 3,569,739 3,429,534
Income tax deducted at source 484,844 614,192
Workers� Profit Participation Fund 12.1 3,185,056 2,967,633
Workers� Welfare Fund 1,600,589 946,325
Sales tax payable - 2,368
Other liabilities 3,932,012 1,469,020
Un-claimed Dividends 4,588,241 3,131,150
73,348,645 56,336,464
===================================================================================12.1. WORKERS� PROFIT PARTICIPATION FUND===================================================================================
2001 2000
Rupees Rupees
===================================================================================
Opening balance as on 1st January 2,967,633 2,356,134
Add: Current allocation 1,756,184 1,614,168
4,723,817 3,970,302
Add: Interest on funds utilized by the company 445,145 186,684
5,168,962 4,156,986
Less: Paid during the year 1,983,906 1,189,353
3,185,056 2,967,633
===================================================================================13. CONTINGENCIES AND COMMITMENTSCONTINGENCIES - As the cost incurred by the company towards research and development exceeds the limit of one percent (1%) of the net profit as prescribed under the relevant law, the demand raised by the drug authorities in the amount of Rs. 1.89 million has not been recognized by the company. The petition filed by the company is pending adjudication. - Bank guarantees issued on behalf of the Company aggregating to Rs. 8.850 million (2000: Rs. 8.850 million). - The company has not acknowledged income tax liability amounting to Rs. 1.166 million for assessment years 1999-2000 and 2000-2001. The appeals filed with Income Tax Appellate Tribunal are pending adjudication. COMMITMENTS - Commitments against irrevocable letters of credits for Rs. 27.9 million (2000: Rs. 30.55 million). - Capital commitments as on balance sheet date were Rs. Nil (2000:Rs.5.00 million). 14. OPERATING FIXED ASSETS � TANGIBLE ============================================================================================================================================
COST DEPRECIATION Book Value
Additions/
As on (deletions) As on As on For As on As on
PARTICULARS 01 January during 3l December 01 January the Depreciation 31 December 31 December Rate
2001 the year 2001 2001 year adjustment 2001 2001 %
============================================================================================================================================
OWN
Land-Freehold 31,453,939 - 31,453,939 - - - - 31,453,939 -
Building on free hold land 82070664 - 82,070,664 9,180,079 7,289,059 - 16,469,138 65,601,526 10
Plant and machinery 102,456,348 3.074,991 105,131,697 15.018,431 9,017,121 - 23,977,604 81,154,093 10
(399,642) (57.948)
Laboratory equipment 1,393,681 545,750 1,939,431 712,003 122,743 - 834,746 1,104,685 10
Furniture and fixture 5,583,629 85,900 5,669,529 2,868,347 280,118 - 3,148,465 2,521,064 10
E1ectric and gas appliances 10,045,558 738,965 10,784,523 4.327,729 645,679 - 4,973,408 5,811,115 10
Office equipment 10,666,078 1,179,149 11,817,527 4,191,707 763,625 - 4,944,898 6,872,629 10
(27,700) (10,434)
Vehicles 15,042,340 3,078,012 10,645,218 55,429,859 1,666,284 - 3,980,080 6,665,138 20
(7,475,134) (3,l16,063)
Library books 52,806 - 52,806 40,607 1,220 - 41,827 10,979 10
Neon sign 33,000 - 33,000 21,724 1,128 - 22,852 10,148 10
Arms and ammunition 106,100 - 106,100 55,212 5,089 - 60,301 45,799 10
ASSETS SUBJECT TO
FINANCE LEASE
P1ant and machinery 74,664,995 4,169,600 77,578,935 7,621,984 7,013,053 - 14,461,460 63,111,475 10
(1,255,660) (173,577)
Vehicles 19,803,000 14,139,233 30,938,233 5,747,097 5,331,418 - 9,612,563 21,325,670 20
(3,004,000) (1,465,952)
Rupees: 2001: 353,372,l38 27,011,600 368,221,602 55,214,779 32,136,537 - 82,527,342 285,694,260
(12,162,136) (4,823,974)
Rupees: 2000: 266,421,642 114,847,697 353,372,138 29,859,193 32,920,989 (7,565,404) 55,214,778 298,157,360
(27,897,201)
============================================================================================================================================14.1. The addition in freehold assets includes transfer of assets costing Rs. 4,259,660 less accumulated depreciation of Rs. 1,639,529 (2000: Rs. 12,077,322 less accumulated depreciation of Rs. 3,057,664) from leasehold.14.2. DEPRECIATION CHARGE HAS BEEN ALLOCATED AS UNDER:- ===================================================================================
2001 2000
NOTE Rupees Rupees
===================================================================================
Cost of sales 24 24,071,769 25,871,782
Administrative and general: 25 4,425,963 3,972,317
Selling and promotional 26 3,638,805 3,076,890
32,136,537 32,920,989
===================================================================================14.3. Land, building on freehold land and plant & machinery were revalued as on 30 June 1995 which resulted in a surplus amounting to Rs. 68,809,377. Subsequently the land, building, plant and machinery were again revalued on 30 June 1999 resulting in surplus of Rs 116,264,331 over the net book value of the assets.14.3. Had the aforesaid assets not been revalued the carrying value would have been Rs. 161.606 million (2000: Rs. 172.123 million). 14.4. DISPOSAL OF FIXED ASSETS =================================================================================================================================
Accumulated Revaluation Written down Sale Profit/
Description Cost depreciation adjustment value proceeds (loss) Mode of sale Sold to
=================================================================================================================================
VEHICLES
Mazda Truck 683,760 502,276 - 181,484 550,000 368,516 Negotiation Mian Abdul Rashid
Toyota Corolla 399,587 79,917 - 319,670 319,670 - Co. Policy Mr. Baqar Hassan
Suzuki Mehran 284,000 - - 284,000 320,000 36,000 Insurance claim Reliance Insurance Co.
Toyota Corolla 423,922 206,874 - 217,048 500,000 282,952 Negotiation Mr. Akhtar Qureshi
Toyota Corolla 306,331 61,266 - 245,065 600,000 354,935 -do- Mr. Khurram Shafaq
Suzuki Van 149,530 29,906 - 119,624 200,000 80,376 -do- Mr. Mumtaz Hussain Shah
Suzuki Bolan 149,530 29,906 - 119,624 180,000 60,376 -do- Ch. Zeeshan Akbar
Suzuki Bolan 147,456 - - 147,456 220,000 72,544 -do- Mr. Mehboob Ali
Suzuki Bolan 181,642 65,391 - 116,251 177,000 60,749 -do- Mr. Awais Shamsher
Suzuki Bolan 181,642 65,391 - 116,251 176,000 59,749 -do- Me. Awais Shamsher
Suzuki Van 186,912 67,288 - 119,624 201,786 82,162 -do- Mr, Awais Shamsher
Toyota Crown 981,334 720,868 - 260,466 600,000 339,534 -do- Ch. Shahzad Akhtar
Toyota Corolla 325,458 158,824 - 166,634 166,634 - Co. Policy Syed Faisal Zaman
Toyota Corolla 435,968 156,948 - 279,020 279,020 - -do- Dr. Atif Mirza
Suzuki Mehran 186,799 67,249 - 119,550 216,330 96,780 -do- Mr. Fayyaz Ur Rehman
Suzuki Mehran 186,799 67,249 - 119,550 215,280 95,730 -do- Mr. Mujeeb Ur Rehman
Suzuki Mehran 157,735 99,587 - 58,148 168,900 110,752 -do- Mr. Tariq Qureshi
Motor Cycle 30,464 - - 30,464 59,616 29,152 -do- Syed Ibrar Hussain
Bukhari
Motor Cycle 30,464 - - 30,444 59,593 29,129 -do- Mr. Yasmin Ghani
Suzuki Mehran 185,818 66,895 - 118,923 214,140 95,217 -do- Mr. Haider Khurshid
Suzuki Mehran 188,179 67,744 - 120,435 223,567 103,132 -do- Mr. Attiq Ur Rehrnan
Suzuki Khyber 188,179 67,744 - 120,435 271,080 150,645 -do- Mr. Asim Munir
Suzuki Van 148,781 53,561 - 95,220 214,320 119,100 -do- Mr. AsgharAli
Suzuki Khyber 190,633 68,628 - 122,005 274,620 152,615 -do- Mr. Abdul Rauf
Suzuki Mehran 145,935 52,536 - 93,399 210,240 116,841 -do- Mr. Irfan Tayyab Dar
Suzuki Mehran 152,248 54,809 - 97,439 219,360 121,921 -do- Mr. M. Arshad
Suzuki Mehran 190,310 68,511 - 121,799 219,360 97,561 -do- Mr. Jawad Zafar
Suzuki Mehran 152,755 30,551 - 122,204 220,080 97,876 -do- Mr. Najam Ul Arfeen
Suzuki Khyber 228,730 111,620 - 117,110 260,220 143,110 -do- Mr. Abdul Majeed
Motor Cycle 26,266 5,254 - 21,012 50,000 28,988 -do- Mr. Amir Bashir
Suzuki Khyber 247,968 89,268 - 158,700 285,780 127,080 -do- Dr. Iram Tariq Hassan
EQUIPMENTS
Ericsson - 388 27,700 10,434 - 17,266 17,007 (259) Insurance claim Universal Insurance
Spectrophoto-
-meter 399,642 57,948 281,397 60,297 235,000 174,703 Negotiation Modern Lab. Supply
2001- Rupees:7,902,477 3,184,443 281,397 4,436,637 8,124,603 3,687,966
2000 �
Rupees: 15,819,880 4,507,740 - 11,312,140 13,783,878 2,471,738
=================================================================================================================================15. CAPITAL WORK - IN � PROGRESS===================================================================================
2001 2000
NOTE Rupees Rupees
===================================================================================
Building 35,713,032 30,707,567
Plant and machinery
Freehold 3,519,216 460,000
Lease hold 15.1 10,829,416 3,556,561
Stores held for capital expenditure - 2,309,928
Advance against capital expenditure - 4,122,574
50,061,664 41,156,630
Less: Transferred to:
Land - 4,122,574
Leasehold plant and machinery 2,900,000 -
47,161,664 37,034,056
===================================================================================15.1. It includes borrowing cost capitalised amounting to Rs. 958,127 (2000: Rs. 449,195).16. LONG TERM INVESTMENTS ===================================================================================
2001 2000
Rupees Rupees
===================================================================================
In listed company
Accord Textiles Limited 16,000 15,000
10,000 (2000: 10,000) ordinary shares of Rs. 10 each
Chief Executive - Mr. Haider Ali
Add: Appreciation in value of investment 4,000 1,000
20,000 16,000
===================================================================================17. STORES, SPARES AND LOOSE TOOLS===================================================================================
2001 2000
NOTE Rupees Rupees
===================================================================================
Stores 2,915,761 3,492,369
Spares 288,278 332,558
Loose tools 380,500 106,891
Pallets 17.1 155,698 252,261
3,740,237 4,184,079
===================================================================================17.1. Deterioration amounting to Rs. 96,564(2000: Rs.104,121) @ 25% per annum has been charged on pallets.18. STOCK IN TRADE ===================================================================================
2001 2000
Rupees Rupees
===================================================================================
Raw Materials
In hand 15,580,545 18,238,282
In pledge 93,560,454 79,584,064
In transit 13,315,337 -
122,456,336 97,822,346
Packing and Promotional material
In hand 14,264,686 14,346,017
In pledge 1,004,908 2,362,832
With third party 714,112 238,220
15,983,706 16,947,069
Work in process 16,819,348 14,855,344
Finished goods
In hand 12,683,560 18,578,332
In pledge 23,861,633 13,212,306
In transit 1,027,191 -
37,572,384 31,790,638
192,831,774 161,415,396
===================================================================================19. TRADE DEBTS - CONSIDERED GOOD===================================================================================
2001 2000
Rupees Rupees
===================================================================================
Secured - against letters of credit 406,816 2,045,957
Un-secured 6,151,347 5,336,229
6,558,163 7,382,186
===================================================================================20. ADVANCES, DEPOSITS AND PREPAYMENTS===================================================================================
2001 2000
Rupees Rupees
===================================================================================
Advances- considered good
Staff against:
Expenses 2,586,910 2,657,194
Salary 266,801 482,105
Suppliers 7,210,260 10,233,617
Income tax- net 39,962,433 36,361,520
Letters of credit 16,107,788 3,076,440
Deposits
Securities 3,036,471 3,372,019
Bank guarantee margin 458,402 474,582
Prepayments 5,286,254 5,214,534
74,915,319 61,872,011
===================================================================================21. OTHER RECEIVABLES===================================================================================
2001 2000
NOTE Rupees Rupees
===================================================================================
Claim receivable 109,957 99,029
Duty draw back 201,651 208,058
Others 21.1 80,355,357 34,080,222
80,666,965 34,387,309
===================================================================================21.1. This includes Rs. 79.52 million (2000:Rs.24.414 million) receivable from foreign principals against sale compensation and reimbursement of promotional expenses.22. CASH AND BANK BALANCES ===================================================================================
2001 2000
NOTE Rupees Rupees
===================================================================================
Cash and imprest 341,100 1,405,477
Balance with banks on:
Current accounts 5,039,784 6,803,822
Deposit accounts 22.1 119,431 428,199
5,500,315 8,637,498
===================================================================================22.1. It carries profit at the rate ranging from 5% to 8% per annum.23. SALES � NET ===================================================================================
2001 2000
Rupees Rupees
===================================================================================
Manufactured products
Local 672,347,064 633,572,910
Export 11,607,123 26,082,550
683,954,187 659,655,460
Purchased products
Local 18,269,181 13,512,533
Export 17,621,601 -
35,890,782 13,512,533
Sales compensation 20,140,350 13,425,425
739,985,319 686,593,418
Less: Discount 52,587,504 53,456,544
Sales tax 39,480 115,774
52,626,984 53,572,318
687,358,335 633,021,100
===================================================================================24. COST OF SALES===================================================================================
2001 2000
NOTE Rupees Rupees
===================================================================================
Raw and packing material consumed 373,282,167 351,435,438
Salaries, wages and benefits 24.1 28,721,502 27,447,113
Vehicle running and maintenance 3,840,790 2,588,076
Fuel and power 7,321,742 5,684,640
Stores consumed 1,249,785 946,522
Repair and maintenance 7,806,007 2,891,166
Insurance 1,471,487 1,220,341
Deterioration in stores and spares 17.1 96,564 104,121
Rent, rates and taxes 1,312,450 1,487,432
Other direct cost 4,827,647 4,534,065
Depreciation 14.2 24,071,769 25,871,782
Total cost incurred 454,001,910 424,210,696
Inventory effect of work in process
Opening 14,855,344 13,042,694
Closing (16,819,346) (14,855,344)
(1,964,002) (1,812,650)
Cost of goods manufactured 452,037,908 422,398,046
Less: Cost of samples 17,157,052 17,030,220
434,880,856 405,367,826
Inventory effect of finished goods
Opening 27,812,852 42,382,687
Clothing (33,398,200) (27,812,852)
(5,585,348) 14,569,835
429,295,508 419,937,661
Less: Duty draw back - 350,542
Cost of goods sold-manufactured products 429,295,508 419,587,119
Cost of goods sold-purchased products 20,002,348 5,941,334
Cost of goods sold 449,297,856 425,528,453
It includes the following staff retirement benefits:
Defined benefit plans � Gratuity 1,524,247 4,533,837
Defined contribution plans � Provident Fund 905,855 765,640
===================================================================================25. ADMINISTRATIVE AND GENERAL===================================================================================
2001 2000
NOTE Rupees Rupees
===================================================================================
Salaries and benefits 25.1 29,469,061 27,635,411
Telephone, postage and telex 3,133,187 2,255,816
Rent, rates and taxes 3,082,130 2,491,397
Electricity, gas and water 191,508 165,307
Printing and stationery 1,804,429 1,059,859
Repair and maintenance 1,885,962 1,533,888
Vehicle running and maintenance 6,532,671 6,229,916
Travelling and conveyance 7,730,256 8,332,881
Newspapers and subscriptions 584,489 1,194,577
Entertainment 667,554 665,631
Insurance 1,020,176 1,156,211
Auditors� remuneration 32 577,900 464,000
Legal and professional 1,387,659 1,856,488
Advertisement 197,095 502,698
Donation 25.2 526,500 46,500
Others 389,607 414,672
Depreciation 14.2 4,425,963 3,972,317
63,606,147 59,977,569
===================================================================================25.1. IT INCLUDES THE FOLLOWING STAFF RETIREMENT BENEFITS:===================================================================================
2001 2000
Rupees Rupees
===================================================================================
Defined benefit plans - Gratuity 786,539 3,736,623
Defined contribution plans - Provident Fund 810,126 695,089
===================================================================================25.2. None of the directors or their spouses have any interest in the donees� fund.26. SELLING AND PROMOTIONAL ===================================================================================
2001 2000
NOTE Rupees Rupees
===================================================================================
Salaries and benefits 26.1 47,305,443 35,093,751
Advertisement 730,260 1,396,800
Electricity, gas and water 830,439 333,393
Rent, rates and taxes 3,607,255 3,045,956
Entertainment 268,129 204,057
Promotional expenses and samples 47,015,181 37,840,416
Printing and stationery 1,855,585 1,064,556
Travelling and conveyance 26,729,137 20,259,944
Telephone, postage and telegram 2,917,217 2,651,057
Insurance 975,639 1,116,166
Vehicle running and maintenance 5,081,639 3,911,596
Donation 18,150 9,000
Freight and octroi 1,939,881 2,239,970
Seminars and symposia 2,819,080 2,603,350
Manpower training 1,280,272 459,229
Others 813,383 1,945,129
Depreciation 14.2 3,638,805 3,076,890
147,825,495 117,251,260
Less: Reimbursement from foreign principals 60,421,051 40,276,275
81,404,444 76,974,985
===================================================================================26.1. IT INCLUDES THE FOLLOWING STAFF RETIREMENT BENEFITS:===================================================================================
2001 2000
Rupees Rupees
===================================================================================
Defined benefit plans - Gratuity 1,589,242 3,512,051
Defined contribution plans - Provident Fund 1,267,283 1,068,492
===================================================================================27. RESEARCH AND DEVELOPMENT===================================================================================
2001 2000
Rupees Rupees
===================================================================================
Salaries and benefits 903,322 1,204,429
Expenses on clinical trials and products evaluation 806,540 1,307,693
Travelling 984,960 704,514
Others 792,558 1,560,063
Literature - 48,737
3,487,380 4,825,436
===================================================================================28. OTHER INCOME===================================================================================
2001 2000
Rupees Rupees
===================================================================================
Profit on sale of fixed assets 3,687,967 2,471,739
Interest income 258,498 4,536
Exchange gain on currency fluctuations 59,879 178,400
Profit on investment 4,000 -
Others 572,588 861,785
4,582,932 3,516,460
===================================================================================29. FINANCIAL AND OTHER CHARGES===================================================================================
2001 2000
Rupees Rupees
===================================================================================
Mark-up on:
Short term bank borrowings 33,760,594 27,392,640
Long term loan 2,431,589 512,678
Lease finance charges 14,514,365 7,572,196
Interest on Workers� Profit Participation Fund 445,145 186,684
Bank charges 1,870,074 1,283,565
53,021,767 36,947,762
Workers� Profit Participation Fund 1,756,184 1,614,168
Workers� Welfare Fund 654,264 601,357
2,410,448 2,215,525
55,432,215 39,163,287
===================================================================================30. TAXATION===================================================================================
2001 2000
Rupees Rupees
===================================================================================
Current 8,250,000 12,500,000
Deferred 3,144,522 (2,403,487)
11,394,522 10,096,513
===================================================================================31. EARNINGS PER SHAREThere is no dilutive effect on the basic earnings per share of the company which is based on: ===================================================================================
2001 2000
===================================================================================
Profit after taxation 21,318,703 19,971,316
Weighted average number of ordinary shares 9,221,775 9,221,775
Earnings Per Share 2.31 2.17
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