Grays of Cambridge (PAK) Ltd - 2001
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BALANCE SHEET AS AT JUNE 30, 2001
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                                                            2001               2000
                                              Note        Rupees             Rupees
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SHARE CAPITAL AND RESERVES
Authorized Share Capital
5,000,000 ordinary shares of Rupees 10 each           50,000,000         50,000,000
Issued, subscribed and paid up share capital   3      16,331,870         13,065,500
Capital reserve                                                -          3,266,370
Revenue reserve                                      184,000,000        158,000,000
Unappropriated profit                                    530,542          1,796,961
                                                     200,862,412        176,128,831
CURRENT LIABILITIES
Short term finances                            4      22,000,000         35,000,000
Creditors, accrued and other liabilities       5      14,812,891         13,285,708
Provision for taxation                         6       5,576,488          7,989,317
Dividend payable                               7      33,079,827         52,594,055
                                                      75,469,206        108,869,080
CONTINGENCIES AND COMMITMENTS                  8
                                                     276,331,618        284,997,911
ASSETS
NON CURRENT ASSETS
Tangible operating fixed assets                9      11,915,135         13,385,018
Equity investments                            10      84,240,664         64,465,664
Long term security deposits                              153,423            101,023
                                                      96,309,222         77,951,705
CURRENT ASSETS
Stock in trade                                11      19,232,577         22,482,960
Trade debts                                   12      33,939,960         29,746,080
Advances, deposits, prepayments and
other receivables                             13      57,103,281         57,001,656
Short term investments                        14       57101,781         83,569,562
Cash and bank balances                        15      12,644,797         14,245,948
                                                     180,022,396        207,046,206
                                                     276,331,618        284,997,911
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PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2001
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                                                            2001               2000
                                             Note         Rupees             Rupees
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SALES                                         16      97,802,679        100,300,582
COST OF GOODS SOLD                            17      50,077,752         52,419,452
GROSS PROFIT                                          47,724,927         47,881,130
ADMINISTRATIVE SELLING AND GENERAL EXPENSES   18      16,823,301         15,266,692
                                                      30,901,626         32,614,438
OTHER INCOME                                  19      36,931,114         60,476,507
                                                      67,832,740         93,090,945
FINANCIAL AND OTHER CHARGES                   20       5,181,098          8,169,013
PROFIT BEFORE TAXATION                                62,651,642         84,921,932
PROVISION FOR TAXATION - Current                       5,254,321          7,667,150
PROFIT AFTER TAXATION                                 57,397,321         77,254,782
UNAPPROPRIATED PROFIT BROUGHT FORWARD                  1,796,961             70,549
PROFIT AVAILABLE FOR APPROPRIATIONS                   59,194,282         77,325,331
APPROPRIATIONS:
Bonus, shares Nil (2000: 25%)                                  -          3,266,370
Proposed final dividend Rupees 20 per share
 (2000: Rupees 40 per share)                          32,663,740         52,262,000
Transfer to General Reserve                           26,000,000         20,000,000
                                                      58,663,740         75,528,370
UNAPPROPRIATED PROFIT                                    530,542          1,796,961
EARNINGS PER SHARE                            21           35.14              47.30
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CASH FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 2001
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                                                            2001               2000
                                                          Rupees             Rupees
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CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation                                62,651,642         84,921,932
Adjustment for non cash and other items:
Depreciation                                           1,879,503          2,075,822
Profit on short term investments                      (8,753,200)      (12,937,310)
Dividend income                                      (28,158,900)      (47,536,983)
Financial charges                                      1,223,311          2,527,756
Loss on sale of investment                                     -              3,464
Gain on sale of fixed assets                             (19,014)           (2,214)
                                                     (33,828,300)      (55,869,465)
Operating profit before working capital changes       28,823,342         29,052,467
Decrease / (Increase) in current assets               25,422,659       (51,326,574)
Increase / (Decrease) in creditors, accrued and
 other liabilities                                     1,527,183        (4,149,274)
(Decrease) / Increase in short term finances         (13,000,000)        20,000,000
                                                      13,949,842       (35,475,848)
Cash flows from operating activities before
 income tax                                           42,773,184        (6,423,381)
Financial charges paid                                (1,223,311)       (2,527,756)
Income tax paid                                       (7,667,150)       (2,336,947)
Net cash flows from operating activities              33,882,723       (11,288,084)
CASH FLOWS FROM INVESTING ACTIVITIES
Addition in equity investment                        (19,775,000)      (20,310,525)
Addition in fixed assets                                (690,606)       (2,800,588)
Long term security deposits                              (52,400)          (18,400)
Proceeds from disposal of fixed assets                   300,000             74,322
Profit on short term investments                       8,753,200         12,937,310
Dividend income                                       28,158,900         47,536,983
Net cash flows from investing activities              16,694,094         37,419,102
Net increase / decrease in cash and cash equivalents  50,576,817         26,131,018
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid                                        (52,177,968)      (20,832,374)
Net increase in cash and cash equivalents             (1,601,151)         5,298,644
Cash and cash equivalents at the beginning
 of the year                                          14,245,948          8,947,304
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR      12,644,797         14,245,948
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NOTES TO THE ACCOUNTS FOR THE YEAR ENDED JUNE 30, 2001
3. ISSUED, SUBSCRIBED AND PAID UP CAPITAL
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                                                            2001               2000
                                                          Rupees             Rupees
===================================================================================
204 700 Ordinary shares of Rupees 10 each fully
 paid up in cash                                       2,047,000          2,047,000
4 400 Ordinary shares of Rupees 10 each fully paid up
 for consideration other than cash                        44,000             44,000
1 424 087 Ordinary shares of Rupees 10 each issued as
 fully paid bonus shares                              14,240,870         10,974,500
                                                      16,331,870         13,065,500
===================================================================================
3.1. Grays of Cambridge (International) Limited, England and Anwar Khawaja Industries (Pvt) Limited Sialkot, associated undertakings held 653 329 and 81 665 ordinary shares of Rupees 10 each (2000 : 522 666 and 65 332 ordinary shares of Rupees 10 each) respectively.
4. SHORT TERM FINANCES
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                                                            2001               2000
                                                          Rupees             Rupees
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Habib Bank Limited                                             -          5,000,000
Standard Chartered Grindlays Bank Ltd.                22,000,000         30,000,000
                                                      22,000,000         35,000,000
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This represents the availed portion of total credit facility of Rupees 44.472 million obtained from Standard Chartered Grindlays Bank under export refinance scheme. It carries mark up at the rate of paisas 27 per Rupees thousand per day.

These finances are secured by registered hypothecation over stocks, book debts of the company, mortgage of freehold land and building and shares on stock of other listed companies.
5. CREDITORS, ACCRUED AND OTHER LIABILITIES
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                                                            2001               2000
                                            Note          Rupees             Rupees
===================================================================================
Trade creditors                                          376,039            448,790
Advances from customers                                  455,369             14,379
Due to directors                                         368,974            142,557
Commission payable                                     7,648,231          5,388,770
Workers' profit participation fund           5.1       3,297,460          4,469,580
Anwar Khawaja Industries (Pvt) Limited
 (associated undertaking)                                 28,491                  -
Other accrued liabilities                              2,638,327          2,821,632
                                                      14,812,891         13,285,708
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5.1. WORKERS' PROFIT PARTICIPATION FUND
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                                                            2001               2000
                                                          Rupees             Rupees
===================================================================================
Balance at the beginning of the year                   4,469,580          2,410,390
Payments made during the year
To workers                                               348,000            372,000
To Government                                          4,121,580          2,038,390
                                                       4,469,580          2,410,390
                                                               -                  -
Share of company's profit for the year                 3,297,460          4,469,580
                                                       3,297,460          4,469,580
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6. PROVISION FOR TAXATION
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                                                            2001               2000
                                                          Rupees             Rupees
===================================================================================
Balance at the beginning of the year                   7,989,317          2,659,114
Payments made during the year                         (7,667,150)       (2,336,947)
                                                         322,167            322,167
Provision for the year                                 5,254,321          7,667,150
                                                       5,576,488          7,989,317
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7. DIVIDEND PAYABLE
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                                                            2001               2000
                                                          Rupees             Rupees
===================================================================================
Proposed final dividend                               32,663,740         52,262,000
Unclaimed dividend                                       416,087            332,055
                                                      33,079,827         52,594,055
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8. CONTINGENCIES AND COMMITMENTS

Counter guarantees given by the company to its bankers and post dated cheques issued to the Custom Authorities are amounting to Rupees 10.073 million (2000: Rupees 6.320 million)
9. TANGIBLE OPERATING FIXED ASSETS
===================================================================================================================================================
Cost                       Accumulated depreciation                 Book value     Depreciation
Description                 As at     Additions/    Adjust-      As at      As at        As at        As at        charge             Rate
                          July 01,   (deletions)      ment     June 30    July 01,  Adjustment      June 30,      June 30,         For the        %
                             2000                                 2001       2000         2001         2001          year
===================================================================================================================================================
Freehold Land             202,706             -   (164,219)     38,487          -            -            -        38,487                -        -
Leasehold Land                  -             -    164,219     164,219          -            -        7,465       156,754            7,465
Factory Building on
Freehold Land           8,899,982             -          -   8,899,982  3,752,146            -    4,266,930     4,633,052          514,784       10
Plant and Machinery     2,660,031             -          -   2,660,031  1,629,754            -    1,732,782       927,249          103,028       10
Office Equipment        1,318,534             -          -   1,318,534    624,199            -      693,633       624,901           69,434       10
Tools and equipment     1,231,466        84,593          -   1,316,059    440,736            -      528,268       787,791           87,532       10
Electric Installations  1,929,956        34,609          -   1,964,565    877,461            -      986,171       978,394          108,710       10
Furniture & Fixtures      903,172        10,400          -     913,572    442,026            -      489,181       424,391           47,155       10
Vehicles                6,699,266        22,500          -   5,864,266  3,020,405     (576,514)   3,127,966     2,736,300          684,075       20
                                       (857,500)         -
Computers                 840,401       538,504          -   1,378,905    524,875            -      781,084       597,821          256,209       30
Security Arms              19,300             -          -      19,300      8,194            -        9,305         9,995            1,111       10
2001 - Rupees          24,704,814       690,606          -  24,537,920 11,319,796     (576,514)  12,622,785    11,915,135        1,879,503
                                       (857,500)         -
2000 - Rupees          22,051,826     2,800,588          -  24,704,814  9,316,002      (72,028)  11,319,796    13,385,018        2,075,822
                                       (147,600)         -
===================================================================================================================================================
9.1. THE DEPRECIATION CHARGED FOR THE YEAR HAS BEEN ALLOCATED AS FOLLOWS
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                                                            2001               2000
                                                          Rupees             Rupees
===================================================================================
Cost of goods sold                                       821,519            891,260
Administrative, selling and general expenses           1,057,984          1,184,562
                                                       1,879,503          2,075,822
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9.2. Deletions represents the Motor Car (Honda VTI, STH 877) sold to Mrs. Kausar Rauf, Lahore for Rupees 300,000/- against book value Rupees 280,986/- by negotiation.
10. EQUITY INVESTMENTS
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                                                            2001               2000
                                                          Rupees             Rupees
===================================================================================
MUTUAL FUNDS
ICP STATE ENTERPRISE (MUTUAL FUND) SERIES 'A
39900 ordinary shares of Rupees 10 each
(2000: 39900 shares)                                   1,260,840          1,260,840
LEASING AND MODARABA
GRAYS LEASING LIMITED
(ASSOCIATED UNDERTAKING)
6000000 ordinary shares of Rupees 10 each - equity held 40%
(2000: 4000000 shares - equity held 40%)              60,197,875         40,422,875
TRUST MODARABA
182000 certificates of Rupees 10 each including
82000 bonus certificates (2000: 182000 certificates
Including 82000 bonus certificates)                    2,182,545          2,182,545
FIRST GRINDLAYS MODARABA
24948 certificates of Rupees 10 each including
5948 bonus certificates (2000: 24948 certificates
Including 5948 bonus certificates)                       529,030            529,030
FIRST CRESCENT MODARABA
205312 certificates of Rupees 10 each including
58812 bonus certificates (2000: 205312 certificates
Including 58812 bonus certificates)                    2,554,820          2,554,820
FIRST FIDELITY LEASING MODARABA
444186 certificates of Rupees 10 each including
74624 bonus certificates (2000: 444186 certificates
Including 74624 bonus certificates)                    4,510,285          4,510,285
TEXTILE SPINNING
UMER FABRICS LIMITED
14950 ordinary shares of Rupees 10 each
(2000:14950 shares)                                      153,465            153,465
NISHAT MILLS LIMITED
45891 ordinary shares of Rupees 10 each including
13726 bonus shares (2000 : 45891 shares including
13726 bonus shares)                                      929,320            929,320
SUGAR
HUSEIN SUGAR MILLS LIMITED
13197 ordinary shares of Rupees 10 each including
7010 bonus shares (2000:13197 shares including
7010 bonus shares)                                       326,550            326,550
CEMENT
MAPLE LEAF CEMENT FACTORY LTD.
227000 ordinary shares of Rupees 10 each including 6000 bonus shares
(2000: 227000 shares including 6000 bonus shares)      2,090,250          2,090,250
D. G. KHAN CEMENT COMPANY LTD.
172945 ordinary shares of Rupees 10 each including
8612 bonus shares (2000:172945 shares
 including 8612 bonus shares)                          4,382,344          4,382,344
CHEMICAL
SITARA CHEMICAL INDUSTRIES LTD.
950 ordinary shares of Rupees 10 each including
655 bonus shares (2000: 950 shares including 655
 bonus shares)                                             6,740              6,740
                                                      79,124,064         59,349,064
FOREIGN EXCHANGE BEARER CERTIFICATES
Rupees 0.110 million face value and Rupees 0.174 million
 surrender value (2000: Rupees 0.110 million face value
 and Rupees 0,150 million surrender value)               116,600            116,600
UNQUOTED
Wholly owned subsidiary company
DAWN SPORTS (PRIVATE) LIMITED 
600000 Fully paid ordinary shares of Rupees 10 each 
 including 300000
 bonus shares. Break up value 
 as on June 30, 2001 was Rupees 34.72 per share 
 (2000: 600000 ordinary shares
 including 300000 bonus shares. Break up value
 Rupees 41.08 per share)                               5,000,000          5,000,000
                                                      84,240,664         64,465,664
===================================================================================
10.1. MARKET VALUE OF QUOTED EQUITY INVESTMENT WAS RUPEES 79.642 MILLION AS ON JUNE 30, 2001 (2000: RUPEES 46.467 MILLION)
11. STOCK-IN-TRADE
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                                                            2001               2000
                                                          Rupees             Rupees
===================================================================================
Raw materials                                         11,137,895         13,027,227
Work-in-process                                        4,493,300          6,189,293
Finished goods                                         3,601,382          3,266,440
                                                      19,232,577         22,482,960
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12. TRADE DEBTS
===================================================================================
                                                            2001               2000
                                                          Rupees             Rupees
===================================================================================
                                                      33,939,960         29,746,080
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These are unsecured but considered good. The export bills under collection include bills due from Gray Nicolls, England and Gray Nicolls, Australia, associated undertakings amounting to Rupees 19.280 million (2000: Rupees 18.681 million).
13. ADVANCES, DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES
===================================================================================
                                                            2001               2000
                                                          Rupees             Rupees
===================================================================================
Advances:
To employees                                             722,310          1,080,383
Provision for doubtful debts                                   -           (11,000)
                                                         722,310          1,069,383
To Suppliers                                             376,615            670,144
To Income tax department                               6,185,808          3,870,529
Considered good                                        7,284,733          5,610,056
Deposits - Trade and others                            9,824,600          8,335,425
Short term prepayments                                   113,525            106,280
Export rebate claims                                   7,749,340          6,993,000
Sales tax receivable                                   1,868,874          1,090,614
Dividend receivable                                   27,013,197         30,000,000
Letter of credit                                          30,000                  -
Accrued profit on investments                          2,907,233          3,415,296
Grays of Cambridge (International) Ltd.,
 associated undertaking                                        -             29,650
Dawn Sports (Private) Limited, subsidiary company        311,779          1,421,335
                                                      57,103,281         57,001,656
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14. SHORT TERM INVESTMENTS
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                                                            2001               2000
                                                          Rupees             Rupees
===================================================================================
Escorts Investment Bank Limited                       41,901,781         38,369,562
Trust Investment Bank Limited                         15,000,000         35,000,000
Standard Chartered Grindlays Bank                        200,000            200,000
First Leasing Limited                                          -         10,000,000
                                                      57,101,781         83,569,562
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15. CASH AND BANK BALANCES
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                                                            2001               2000
                                                          Rupees             Rupees
===================================================================================
Cash in hand                                                  40             25,417
Cash with banks on:
Current Accounts                                       2,235,013          1,889,197
Deposit Accounts                                      10,409,744         12,331,334
                                                      12,644,757         14,220,531
                                                      12,644,797         14,245,948
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16. SALES
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                                                            2001               2000
                                                          Rupees             Rupees
===================================================================================
Export                                                97,884,881        101,411,114
Custom rebates                                         6,571,326          8,108,165
                                                     104,456,207        109,519,279
Local                                                  3,316,560            891,914
                                                     107,772,767        110,411,193
Commission to selling agents                          (9,970,088)      (10,110,611)
                                                      97,802,679        100,300,582
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17. COST OF GOODS SOLD
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                                                            2001               2000
                                           Note           Rupees             Rupees
===================================================================================
Raw material consumed                       17.1      34,548,066         37,390,082
Salaries, wages and other benefits inclusive of employer's contribution
 towards provident fund Rupees 170,652
 (2000:Rupees 154,698)                                10,895,519         11,355,687
Repair and maintenance                                   691,763            570,495
Fuel and power                                         1,152,927          1,150,797
Insurance                                                569,052            571,263
Rent rates and taxes                                      37,855             37,136
Depreciation                                 9.1         821,519            891,260
                                                      48,716,701         51,966,720
Work-in-process
Opening Inventory                                      6,189,293          6,046,138
Closing Inventory                                     (4,493,300)       (6,189,293)
                                                       1,695,993          (143,155)
Cost of goods manufactured                            50,412,694         51,823,565
Finished goods
Opening Inventory                                      3,266,440          3,862,327
Closing Inventory                                     (3,601,382)       (3,266,440)
                                                        (334,942)           595,887
                                                      50,077,752         52,419,452
===================================================================================
17.1. RAW MATERIAL CONSUMED
===================================================================================
                                                            2001               2000
                                                          Rupees             Rupees
===================================================================================
Opening stock                                         13,027,227         16,495,697
Purchases during the year                             32,658,734         33,921,612
                                                      45,685,961         50,417,309
Closing stock                                         11,137,895         13,027,227
                                                      34,548,066         37,390,082
===================================================================================
18. ADMINISTRATIVE, SELLING AND GENERAL EXPENSES
===================================================================================
                                                            2001               2000
                                         Note             Rupees             Rupees
===================================================================================
Salaries and other benefits inclusive of employer's contribution towards
 provident fund Rupees 58,690 (2000 Rupees 50,466)     6,317,813          5,289,409
Travelling and conveyance                              2,285,849          1,552,107
Vehicles running                                         922,827            800,975
Postage, telephone and telex                             749,909            836,070
Legal and professional                                   386,810            455,250
Audit fee                                                 50,000             50,000
Printing and stationery                                  290,040            319,210
Boarding, lodging and entertainment                      251,931            206,521
Fee and subscription                                     192,632            414,202
Books and periodicals                                     43,810             31,073
Repairs and maintenance                                   84,478             93,851
Free samples                                             362,942            175,008
Export tax                                               233,043            255,735
Advertisement and publicity                              993,382          1,200,828
Clearing and forwarding                                2,340,650          2,376,925
Bad debts written off                                    223,462                  -
Miscellaneous                                             35,739             24,966
Depreciation                              9.1          1,057,984          1,184,562
                                                      16,823,301         15,266,692
===================================================================================
18.1. TOTAL NUMBER OF EMPLOYEES, INCLUDING CHIEF EXECUTIVE AND 3 EXECUTIVES AS ON JUNE 30, 2001 WERE 131(2000:142)
19. OTHER INCOME
===================================================================================
                                                            2001               2000
                                           Note           Rupees             Rupees
===================================================================================
Profit on deposits with banks                          8,753,200         12,937,310
Dividend income                             19.1      28,158,900         47,536,983
Gain on sale of fixed assets                              19,014              2,214
                                                      36,931,114         60,476,507
===================================================================================
19.1. Included Rupees 21.000 million from subsidiary undertaking Dawn Sports (Private) Limited (2000: Rupees 37.500 million) and Rupees 6.000 million from associated undertaking Grays Leasing Limited (2000: Rupees 9.000 million).
20. FINANCIAL AND OTHER CHARGES
===================================================================================
                                                            2001               2000
                                           Note           Rupees             Rupees
===================================================================================
Mark up on short term finances                           827,944          2,143,844
Bank charges and commission                              395,367            383,912
                                                       1,223,311          2,527,756
Capital loss                                                   -              3,464
Zakat                                                      9,975                  -
Workers' profit participation fund                     3,297,460          4,469,580
Donations                                   20.1         650,352          1,168,213
                                                       5,181,098          8,169,013
===================================================================================
20.1. NONE OF THE DIRECTORS AND THEIR SPOUSES HAD ANY INTEREST IN THE DONEES FUND
21. EARNINGS PER SHARE - BASIC

There is no dilutive effect on the basic earnings per share of the company, which is based on:
===================================================================================
                                                            2001               2000
===================================================================================
Profit after taxation (Repees)                        57,397,321         77,254,762
Number of shares                                       1,633,187          1,633,187
Earnings per share                                         35.14              47.30
===================================================================================
21.1. The earning per share for the year ended June 30, 2000 is restated from Rupees 59.13 per share to Rupees 47.30 per share due to issue of bonus shares in the year ended June 30, 2001.

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