| Crescent Steel & Allied Products Ltd - 2001 | ||
====================================================================================== BALANCE SHEET AS AT JUNE 30, 2001 Rupees in thousand Note 2001 2000 ====================================================================================== Share capital and reserves -------------------------------------------------------------------------------------- Authorised capital 30,000,000 (2000: 30,000,000) ordinary shares of Rs. 10 each 300,000 300,000 Issued, subscribed and paid-up capital 3 200,849 200,849 Reserves 4 473,278 473,278 Unappropriated profit 43,566 18,924 717,693 693,051 Long term loans 5 40,993 64,407 Liabilities against assets subject to finance leases 6 27,555 321 Deferred taxation 7 12,832 - Current liabilities Current maturity of long term loans 5 22,584 20,232 Current maturity of liabilities against assets subject to finance leases 6 9,762 329 Short-term finances 8 119,377 20,546 Creditors accrued and other liabilities 9 200,409 59,545 Proposed dividend 30,127 36,153 382,259 136,805 Contingencies and commitments 10 1,181,332 894,584 Tangible fixed assets Operating fixed assets 11 321,218 374,753 Assets subject to finance leases 12 6,436 328 Capital work-in-progress 13 39,092 6,970 366,746 382,051 Long-term investments 14 29,640 32,004 Long-term deposits 15 5,394 1,702 Staff retirement benefits 16 2,174 3,277 -------------------------------------------------------------------------------------- Current assets -------------------------------------------------------------------------------------- Stores, spares and loose tools 17 41,762 37,929 Stock-in-trade 18 145,100 38,484 Trade debts 19 249,306 220 Short-term advances 20 2,286 1,606 Short term deposits and prepayments 21 3,994 5,075 Current maturity of long-term investment in redeemable capital 22 14,175 7,582 Short-term investments 23 197,077 245,443 Other receivables 24 26,045 35,201 Taxation 25 70,283 72,520 Short term deposits with non banking financial institutions 26 - 15,000 Cash and bank balances 27 27,350 16,490 777,378 475,550 1,181,332 894,584 ======================================================================================PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2001 ======================================================================================================
2001 2000
Steel Cotton Steel Cotton
Division division Total division division Total
Note Rupees in thousand
======================================================================================================
Sales 28 306,985 511,848 818,833 121,238 - 121,238
Cost of sales 29 252,382 486,592 738,974 150,034 - 150,034
Gross profit/(loss) 54,603 25,256 79,859 (28,796) - -28,796
Selling expenses 30 4,429 815 5,244 5,476 - 5,476
Administration expenses 31 32,026 5,141 37,167 31,181 - 31,181
36,455 5,956 42,411 36,657 - 36,657
Operating profit/(loss) 18,148 19,300 37,448 (65,453) - (65,453)
Other income 32 86,379 1,225 87,604 170,001 - 170,001
104,527 20,525 125,052 104,548 - 104,548
Financial charges 33 352 22,692 23,044 2,709 - 2,709
Other charges 34 28,907 - 28,907 35,245 - 35,245
29,259 22,692 51,951 37,954 - 37,954
Profit/(loss) before taxation 75,268 (2,167) 73,101 66,594 - 66,594
Taxation 35 18,332 (23,428)
Profit after taxation 54,769 90,022
Basic earnings per share 36 Rs. 2.73 Rs. 4.48
======================================================================================================CASH FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 2001======================================================================================
Rupees in thousand
Note 2001 2000
======================================================================================
Cash flow from operating activities
Cash generated from/(used in) operations 37 (99,979) 12,287
Taxes refunded/(paid) (3,263) 33,585
Financial charges paid (18,656) (9,651)
Contributions to pension and gratuity fund (2,568) (2,837)
(Decrease)/increase in long-term deposits and prepayments (3,692) (644)
Net cash inflow/(outflow) from operating activities (128,158) 32,740
--------------------------------------------------------------------------------------
Cash flow from investing activities
--------------------------------------------------------------------------------------
Fixed capital expenditure (8,215) (211,959)
Investments made (147,554) (397,982)
Sale proceeds of fixed assets 5,947 992
Sale proceeds of investments 193,957 378,760
Dividends received 22,576 13,048
Redemption of redeemable capital 7,582 9,315
Return on deposits - associated undertakings 361 11
others 8,342 15,921
Net cash inflow/(outflow) from investing activities 82,996 -191,894
--------------------------------------------------------------------------------------
Cash flow from financing activities
--------------------------------------------------------------------------------------
Long term loan 66,000 84,639
Repayments of
a Long term loan (21,062) (19,474)
liabilities against assets subject to finance lease (1,133) (1,336)
Dividends paid (35,614) (10,001)
Net cash inflow from financing activities 8,191 53,828
Net decrease in cash and cash equivalents (36,971) (105,326)
Cash and cash equivalents at the beginning of the year 10,944 116,270
Cash and cash equivalents at the end of the year 38 (26,027) 10,944
======================================================================================NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED JUNE, 30, 20013. ISSUED, SUBSCRIBED AND PAID-UP-CAPITAL ===================================================================================
Rupees in thousand
2001 2000 2001 2000
===================================================================================
Number of shares
Ordinary shares of Rs 10 each fully
10,564,900 10,564,900 paid in cash 105,649 105,649
9,519,963 9,519,963 Ordinary shares of Rs.10 each
issued as bonus shares 95,200 95,200
20,084,863 20,084,863 200,849 200,849
===================================================================================4. RESERVES===================================================================================
Rupees in thousand
2001 2000
===================================================================================
General Reserve
At the beginning of the year 471,000 421,000
Transfer from profit and loss account - 50,000
471,000 471,000
2,278 2,278
Reserve for issue of bonus shares
473,278 473,278
===================================================================================5. LONG TERM LOANS===================================================================================
Rupees in thousand
NOTE 2001 2000
===================================================================================
Cotton division
Secured
From Pakistan Industrial Credit and Investment
Corporation (PICIC), an associated undertaking
at 14% 5.2 35,272 46,362
at 16% 5.3 28,305 38,277
63,577 84,639
Less: Current maturity shown under
current liabilities 22,584 20,232
40,993 64,407
===================================================================================5.1 The above loans relate to Crescent Cotton Products (CCP), a cotton spinning unit, obtained by CJPL from Pakistan Industrial Credit and Investment Corporation have been taken over by the company effective June 30, 2000 as part of purchase consideration for CCP. An agreement in this regard is in the process of formalisation.5.2 The loan of Rs. 35.272 million is repayable by December 2003 in half yearly installments. 5.3 The loan of Rs. 28.305 million is repayable by November 2003 in monthly installments. 5.4 These loans are secured against first charge on fixed assets of the cotton division. After completion of legal formalities for transfer of title this loan will continue to be secured there against together with depositing of post dated cheques for the remaining installments of loan. 6. LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASES ==============================================================================================
2001 2000
----------------------------------------------------------------------------------------------
Steel Cotton Total Steel Cotton Total
division division division division
NOTE Rupees in thousand
==============================================================================================
Total liabilities against assets
subject to finance leases
Long-term 6.1 & 6.2 - 27,555 27,555 321 - 321
Current maturity 6.1 & 6.2 219 9,543 9,762 329 - 329
219 37,098 37,317 650 - 650
==============================================================================================6.1 STEEL DIVISION The company has acquired vehicles under finance lease agreements with a leasing company. The rentals are payable in monthly installments under the lease agreements. The amounts of future payments for the leases and the period in which the lease payments will become due are: =====================================================================================
2001 2000 2001 2000 2001 2000
Minimum lease Financial charges Present value of
payments minimum lease payments
Rupees in thousand
=====================================================================================
Year to June 30, 2001 - 406 - 77 329
Year to June 30, 2002 237 344 18 23 219 321
Total 237 750 18 100 219 650
Less: Current maturity shown under current liabilities 219 329
- 321
=====================================================================================The present values of minimum lease payments have been discounted at an effective mark up rate of 22.01% per annum. Repairs and insurance costs are to be borne by the lessee. The company intends to exercise its option to purchase the leased assets for Rs. 0.064 million on completion of the lease period(s).6.2 COTTON DIVISION The company has acquired plant and machinery for its spinning unit under finance lease agreements. The rentals are payable in quarterly installments under the lease agreements. The amounts of future payments for the leases and the period in which the leas payments will become due are: ================================================================================
2001 2000 2001 2000 2001 2000
Minimum lease Financial charges Present value of
payments minimum lease
payments
================================================================================
Rupees in thousand
================================================================================
Year to June 30, 2001
2002 14,527 - 4,984 - 9,543 -
2003 14,527 - 3,288 - 11,239 -
2004 17,606 - 1,290 - 16,316 -
46,660 - 9,562 - 37,098 -
Less: Current maturity shown under current liabilities 9,543 -
27,555 -
================================================================================The present values of minimum lease payments have been discounted at an effective mark up rates ranging from 16.25% to 18.40% per annum. Repairs and insurance costs are to be borne by the lessee. The company intends to exercise its option to purchase the leased assets for Rs. 3.780 million on completion of the lease periods.7. DEFERRED TAXATION The deferred tax liability on account of net timing differences due to accelerated tax depreciation, provision against slow moving stock and assessed/returned losses amounts to Rs. 12.832 million. As at June 30, 2000 the deferred tax debit aggregated Rs. 4.315 million which was not recognised. 8. SHOT TERM FINANCES ===================================================================================================
2001 2000
Steel Cotton Steel Cotton
division division Total division division Total
NOTE Rupees in thousand
===================================================================================================
Secured
Running finances under mark-up
arrangements
National Bank of Pakistan 8.1 5,112 - 5,112 - - -
Societe Generale, The French
and International Bank 8.2 48,265 - 48,265 20,546 20,546
Short-term loans
Saudi Pak Industrial and Agricultural
Investment Company (Private) Ltd. 8.3 - 25,000 25,000 - - -
Al-Meezan Investment Bank Ltd. 8.4 - 15,000 15,000 - - -
First Crescent Modaraba 8.5 10,000 - 10,000 - - -
Bank of Khyber 8.6 16,000 - 16,000 - - -
79,377 40,000 119,377 20,546 - 20,546
===================================================================================================8.1 NATIONAL BANK OF PAKISTANThe facility for running finance available amounts to Rs. 20 million (2000: Rs. 20 million). The rate of mark-up is 16% per annum. A rebate of 2% per annum will be admissible. On giving foreign exchange business in the ratio of 3:1 to the bank. The purchase price is repayable on December 31, 2001. The above facility is secured by a charge on the present and future current assets of the company, pledge/hypothecation of the stocks and first equitable mortgage on the fixed assets of the company. The facility for opening letters of credit and guarantees as at June 30, 2001 amounted to Rs. 83 million (2000: Rs. 83 million) of which amount remaining unutilised at the year end was Rs. 37 million. (2000: Rs 71.458 million). 8.2 SOCIETE GENERALE, THE FRENCH AND INTERNATIONAL BANK The facility of running finance available amounts to Rs. 50 million (2000: Rs. 50 million). The rate of mark-up is 15% per annum. The purchase price is payable on March 31, 2002. This facility is secured against hypothecation charge over stocks and book debts ranking pari passu with other banks. The facility for opening letters of credit and guarantees as at June 30, 2001 amounted to Rs. 110 million (2000: Rs. 110 million) of which amount remaining unutilised at the year end was Rs. 82.81 million (2000: Rs. 106.917 million). 8.3 SAUDI PAK INDUSTRIAL AND AGRICULTURAL INVESTMENT BANK The short term loan facility for cotton purchases available amounts to Rs. 25 million (2000: Rs. Nil). The rate of markup is 15% per annum. The purchase price is repayable on November 2, 2001. The above facility is secured against pledge of cotton stock and shares. 8.4 AL MEEZAN INVESTMENT BANK LIMITED The short term loan facility has been obtained for cotton purchases amounting to Rs. 15 million (2000: Rs Nil). The rate of markup is 15.50% per annum. The purchase price is repayable on August 1, 2001 and August 17, 2001. The above facility is secured against pledge of cotton stock. 8.5 FIRST CRESCENT MODARABA The short term loan facility amounts to Rs. 10 million (2000: Nil) at a mark up rate of 17% per annum. The facility is repayable on July 26, 2001 and is secured against pledge of shares. 8.6 THE BANK OF KHYBER The company has arranged short-term loan amounting to Rs. 16 million against repurchase of term finance certificates of ICI Pakistan Limited and Saudi Pak Leasing Company Limited having redemption value of Rs. 16.5 million. These term finance certificates of have been included in long-term investments as aforementioned repurchase in substance is a financing transaction. The rate of mark up is 12.90% per annum. The purchase price is repayable on July 24, 2001. 8.7 UNION BANK LIMITED The facility for opening letter of credit and guarantees as at June 30, 2001 amounted to Rs. 225 million (2000: Nil) of which amount remaking unutilised at the year end was Rs. 43.94 million (2000: Nil). ===================================================================================================
9. CREDITORS, ACCRUED AND OTHER LIABILITIES
===================================================================================================
2001 2000
Steel Cotton Steel Cotton
division division Total division division Total
Rupees in thousand
===================================================================================================
Creditors 3,402 5,359 8,761 1,627 - 1,627
Excise duty payable 3,133 - 3,133 3,133 - 3,133
Sales tax payable 3,030 2,991 6,021 478 - 478
Bills payable 144,024 - 144,024 - - -
Accrued liabilities 15,411 3,618 19,029 15,745 - 15,745
Interest accrued on a secured loan - 411 411 - - -
Accrued mark-up 2,911 1,124 4,035 58 - 58
Advances from customers 4,159 3,980 8,139 17,364 - 17,364
Workers' welfare fund - - - 5,180 - 5,180
Retention money 318 - 318 627 - 627
Due to associated undertakings 979 10 989 10,547 - 10.547
Payable to provident fund 465 804 1,269 419 - 419
Unclaimed dividend 1,491 1,491 952 - 952
Others 1,893 896 2,789 3,415 - 3,415
181,216 19,193 200,409 59,545 - 59,545
===================================================================================================9.1 Maximum amount due to associated undertakings at the end of any month during the year was Rs. 0.991 million (2000: Rs. 10.54 million).10. CONTINGENCIES AND COMMITMENTS 10.1 The company is contesting a case in the High Court of Sindh against octroi charges on hot rolled coils. If the decision of the High Court goes against the company, an amount of Rs. 0.988 million would become payable on account of octroi. Amounts aggregating Rs. 1.515 million have been paid to the High Court, as security deposit upto June 30, 2001 (2000: Rs. 1.515 million). 10.2 The company has filed a suit in the High Court of Sindh for restraining the customs authorities for encashing a bank guarantee of Rs. 0.895 million issued while availing concessionary benefits of SRO 671(1)/94 dated July 3, 1994. The liability of the company will eventually depend upon whether or not the goods were consumed in terms of the concession. This case is pending with the High Court and a sum of Rs. 0.895 million is contingently payable by the company in case the High Court decides the case against the company. 10.3 Aggregate commitments for capital expenditures amounted to Rs. Nil (2000: Rs. 13.334 million). 11. OPERATING FIXED ASSETS 11.1 The following is a statement of all operating fixed assets other than those relating to the coating plant and the cotton spinning unit: ========================================================================================================================
Description Cost as at Additions/ Cost as at Accumulated Depreciation Accumulated Net book Rate of
July * transfers June 30, depreciation charge for the depreciation value depreciation
1, 2000 (disposals) 2001 as at July year/*transfers as at June 3 as at June 30 as a % of
1, 2000 / (disposals) 2000 2001 cost
Rupees in thousand
========================================================================================================================
Leasehold land 8,054 - 8,054 766 81 847 7,207 1
Improvements to
leasehold land 106 - 106 16 3 19 87 1
Building on
leasehold land 59,167 - 59,167 30,234 2,957 33,191 25,976 5
Plant and machinery 196,942 - 196,600 134,353 8,250 142,261 54,339 5 to 20
(342) (342)
Office premises 14,292 14,292 8,590 1,294 9,884 4,408 10
Furniture and fixtures 15,798 14 15,812 7,630 1,521 9,151 6,661 10
Office and other
equipments 13,407 636 14,043 11,962 1,156 13,118 925 20 to 40
Vehicles 19,996 66 18,204 13,961 2,844 15,115 3,089 20
*619 *495
(2,477) (2,185)
Workshop equipments 3,173 - 3,173 3,057 60 3,117 56 5 to 20
2001 330,935 716 329,451 210,569 18,166 226,703 102,748
*619 *495
(2,819) (2,527)
2000 329,307 707 330,935 191,829 18,679 210,569 120,366
*2,705 *1,623
(1,784) (1,562)
========================================================================================================================(*) Vehicle on lease transferred to own assets on the expiry of lease term.11.2 COATING PLANT ============================================================================================================================================
Description
Cost as at Additions/ Cost as at Accumulated Depreciation Accumulated Net book Rate of
July disposals June 30, depreciation charge for the depreciation value depreciation
1, 2000 during the 2001 as at July year as at June 30,as at June 30, as a % of
year 1, 2000 2001 2001 cost
Rupees in thousand
============================================================================================================================================
Building on
leasehold land 8,528 - 8,528 2,852 427 3,279 5,249 5
Plant and machinery 137,693 137,693 99,945 12,909 112,854 24,839 5 to 20
Office and other
equipments 78 - 78 78 - 78 - 20
Furniture and fixtures 48 - 48 36 4 40 8 10
2001 146,347 - 146,347 102,911 13,340 116,251 30,096
2000 146,147 200 146,347 89,571 13,340 102,911 43,436
============================================================================================================================================11.3 COTTON SPINNING UNIT=============================================================================================================================
Description Cost as at Additions/ Cost as at Accumulated Depreciation Accumulated Net book Rate of
July (disposals) June 30, depreciation charge depreciation value depreciation
1, 2000 * transfers/ 2001 as at July (note 11.3.2)as at June 30,as at June 30, as a % of
during the 1, 2000 /(disposals) 2001 2001 cost
year
Rupees in thousand
=============================================================================================================================
Freehold land 6,155 - 6,155 - - - 6,155
Building on
freehold land 15,433 - 15,433 4 1,543 1,547 13,886 10
Plant and machinery 176,791 546 174,546 48 17,455 17,502 157,044 10
(2,791) (1)
Electric installation 11,707 11,707 3 1,171 1,174 10,533 10
Office and
other equipments - 18 18 - 4 4 14 20
Furniture and fixtures 151 1 152 - 15 15 137 10
Vehicles 770 - 757 1 151 152 605 20
(13)
2001 211,007 565 208,768 56 20,339 20,394 188,374
(2,804) (1)
2000 - 211,007 211,007 - 56 56 210,951
Total operating fixed
assets as at
June 30,2001 688,289 1,281 684,566 313,536 51,845 363,348 321,218
- *619 - - *495 - -
(5,623) (2,528)
Total operating fixed
assets as at
June 30, 2000 475,454 211,914 688,289 281,400 32,075 313,536 374,753
- *2,705 - - *1,623 - -
- (1,784) - - -1,562 - -
=============================================================================================================================11.3.1 The company had acquired the cotton division effective June 30, 2000. The transfer of legal title of assets in the name of the company is in process.11.3.2 This relates to the depreciation charged for the year ended June 30, 2001 (2000: the depreciation was prorated for one day in accordance with the company's policy). 11.4. Following are details of fixed assets disposed off during the year: ==============================================================================================================
Description Cost Accumulated Book Sale Mode of
depreciation value proceeds disposal Sold to
Rupees in thousand
==============================================================================================================
Steel division
Plant and machinery 342 342 - 657 Negotiation Sindh Industrial Trading Estate,
Mangopir Road, Karachi
Vehicle 58 23 35 55 Insurance claim The Premier Insurance, Wallace
Road Karachi
--do-- 51 10 41 20 Company Scheme Mr. Mohammad Siddique
--do-- 54 54 - 19 --do-- Mr. Mohammad Amir
--do-- 58 58 - 20 --do-- Mr. Mithoo Khan
--do-- 58 58 - 20 --do-- Mr. Yar Mohammad
--do-- 58 58 - 20 --do-- Mr. Nisar Ahmed
--do-- 58 58 - 20 --do-- Mr. Mohammad Arab
--do-- 60 36 24 25 --do-- Mr. Shafiuddin
--do-- 60 36 24 24 --do-- Mr. Sohail Hashmi
--do-- 60 36 24 30 --do-- Mr. Abdul Majeed Yousufi
--do-- 244 244 - 85 --do-- Mr. Muzafar Nasim Usmani
--do-- 295 295 - 129 --do-- Mr. Mohammad Mushtaq
--do-- 310 310 - 106 --do-- Mr. Sikander Soomro
--do-- 335 335 - 168 --do-- Mr. Farrukh Nadeem
--do-- 359 359 - 167 --do-- Mr. Mohammad Ramzan
--do-- 359 215 144 198 --do-- Mr. Mohammad Javed
--do-- 378 302 76 171 --do-- Ms. Lena Rodrigues
3,197 2,829 368 1,934
Cotton division
Plant and machinery 1,396 1 1,395 2,000 Negotiation Empire Textile Mills (Private)
Limited, Lahore
--do-- 1,395 - 1,395 2,000 --do-- Nisar Ahmed Textile Mills
(Private) Limited, Faisalabad
Vehicle 13 - 13 13 --do-- Crescent Jute Products Limited,
Faisalabad
2,804 1 2,803 4,013
6,001 2,830 3,171 5,947
==============================================================================================================12. ASSETS SUBJECT TO FINANCE====================================================================================================================================
Description Cost as at Addition/ Cost as at Accumulated Depreciation Accumulated Net book Rate of
July 1, * transfers/ June 30, depreciation charge for the depreciation value as at depreciation
2000 (disposals) 2001 as at July 1 year/ * transfers/ as at June 30, June 30, as a % of
2000 (on disposals) 2001 2001 cost
NOTE Rupees in thousand
====================================================================================================================================
Steel division
Vehicles 12.1 1,639 - 642 1,311 128 642 - 20
*(619) *(495)
(378) (302)
2001 1,639 - 642 1,311 128 642 - 20
*(61 9) *(495)
(378) (302)
2000 4,344 - 1,639 2,606 328 1,311 328
*(2,705) *(1,623)
Cotton division -
Plant and machinery 7,151 7,151 - 715 715 6,436 10
2001 7,151 7,151 - 715 715 6,436
Total assets subject to
finance lease as at
June 30, 2001 1,639 7,151 7,793 1,311 843 1,357 6,436
*(619) *(495)
-378 (302)
Total assets subject to
finance lease as at
June 30, 2000 4,344 - 1,639 2,606 328 1,311 328
*(2,705) *(1,623)
====================================================================================================================================13. CAPITAL WORK IN PROGRESS==================================================================================
2001 2000
Steel Cotton Steel Cotton
division division Total division division Total
Rupees in thousand
==================================================================================
Owned
Plant and machinery 1,509 389 1,898 1,509 - 1,509
Civil work 7,893 - 7,893 5,461 - 5,461
Subject to finance lease
Plant and machinery - note 13. - 29,301 29,301 - - -
9,402 29,690 39,092 6,970 - 6,970
==================================================================================13.1 These represent machines imported for the cotton division which have been acquired under sale and lease back arrangements. These machineries were in transit or in the process of installation as of June 30, 2001 and will be transferred to assets subject to finance lease on completion of installation.14. LONG TERM INVESTMENTS ==================================================================================
2001 2000
Steel Cotton Steel Cotton
division division Total division division Total
NOTE Rupees in thousand
==================================================================================
Portfolio investments 14 17,132 - 17,132 17,132 - 17,13
Government of Pakistan
US $ Bonds 14.7 - - - 7,845 - 7,845
Redeemable capital 14.8 12,508 - 12,508 7,027 - 7,027
29,640 - 29,640 32,004 - 32,00
==================================================================================14.1 PORTFOLIO INVESTMENTSUnless stated otherwise the holding are in ordinary shares certificates of Rs. 10 each. =============================================================================
Number of shares Rupees in thousand
2001 2000 NOTE 2001 2000
=============================================================================
Quoted - Associated undertakings
585,000 585,000 Crescent Investment Bank Limited 7,178 7,178
Pakistan Industrial Leasing
1,062,000 1,062,000 Corporation Limited 9,229 9,229
Less: Provision for dimunition in the
value of long-term investments (1,795) (1,795)
14,612 14,612
422,637 362,250 Crescent Leasing Corporation Limite 2,520 2,520
17,132 17,132
Unquoted - Associated undertakings
2,403,725 2,403,725 Crescent Greenwood Limited 14.4 24,037 24,037
Crescent Industrial Chemicals Limited -
1,047,000 1,047,000 note 14.5 10,470 10,470
Less: Provision for dimunition in the
value of long-term investments (34,507) (34,507)
Unquoted - Associated undertakings
Crescent Continental Gas Pipelines
2 2 Limited (US$ 1 each) 14.6 - -
5,520,364 5,459,977 17,132 17,132
=============================================================================14.2 Aggregate market value of investments in shares quoted on the Karachi Stock Exchange as at June 30, 2001 was Rs. 14.971 million (2000: Rs. 19.685 million) which at the close of business on November 8, 2001 was Rs. 10.693 million.14.3 The following investments having an aggregate face value of Rs. 10.07 million (2000: Rs. 7.60 million) are deposited as security with a commercial bank. ===========================================================================
Rupees in thousand
2001 2000
===========================================================================
Pakistan Industrial Leasing Corporation Limited - 1,750
Crescent Investment Bank Limited 5,850 2,700
Crescent Leasing Corporation Limited 4,226 3,150
10,076 7,600
===========================================================================14.4 The chief executive of Crescent Greenwood Limited is Mr. Nasir Shafi and the company's break up value of shares was 'NIL' as at September 30, 1998 due to negative equity. The accounts of the company thereafter are not available.14.5 The chief executive of Crescent Industrial Chemicals Limited is Mr. Tariq Shafi. The company which was in development stage till 1999 and has run into serious financial difficulties following the May 28, 1998 nuclear tests. The company's break up value of shares as at June 30, 1999 was Rs. 10 per share. The accounts of the company for the year ended June 30, 2000 and 2001 are not available. 14.6 The investment in a subsidiary was Rs. 90 only. The subsidiary has not commenced operation and accordingly no accounts have been prepared. 14.7 ===========================================================================
Rupees in thousand
Note 2001 2000
===========================================================================
Government of Pakistan US dollar bonds 7,845 7,845
Exchange gain 1,811 -
9,656 7,845
Current maturity shown under current assets 22 (9,656) -
- 7,845
===========================================================================These bonds have been issued by the Government of Pakistan for a period of 3 years commencing from November 18, 1998 to November 18, 2001. Interest earned thereon is receivable on a half yearly basis.14.8 REDEEMABLE CAPITAL - TERM FINANCE CERTIFICATES (TFCS) ======================================================================================
Rupees in thousand
Note 2001 2000
======================================================================================
ICI Pakistan Limited 14.8.1
(150 TFCs of Rs. 100,000 each and 600 TFCs 7,025 13,787
of Rs. 5,000 each)
Less: Redeemed during the year (5,038) (6,762)
Current maturity shown under current assets (1,987) (5,038)
- 1,987
Saudi Pak Leasing Company Limited 14.8.2
(100 TFCs of Rs. 100,000 each) 7,584 10,130
Less: Redeemed during the year (2,544) (2,546)
Less: Current maturity shown under current assets (2,528) (2,544)
2,512 5,040
Shakarganj Mills Limited 14.8.3
(2,000 TFCs of Rs. 5,000 each) 10,000 -
Less: Current maturity shown under current assets (4) -
9,996 -
12,508 7,027
======================================================================================14.8.1 These term finance certificates are being redeemed half yearly over a period of five years commencing from March 30, 1997 and ending on September 30, 2001.14.8.2 These term finance certificates are being redeemed half yearly over a period of four years commencing from January 28, 1999 and ending on January 28, 2003. 14.8.3 These term finance certificates are being redeemed half yearly over a period of four years commencing from April 10, 2001 and ending on April 10, 2005. 15. LONG TERM DEPOSITS ====================================================================================================
2001 2000
Steel Cotton Steel Cotton
division division Total division division Total
Rupees in thousand
====================================================================================================
909 4,485 5,394 996 706 1,702
====================================================================================================16. STAFF RETIREMENT BENEFITS16.1 MOVEMENT ====================================================================================================
2001 2002
Pension Gratuity Total Pension Gratuity Total
Rupees in thousand
====================================================================================================
Opening prepayments/liability as at July 1 2,517 1,678 4,195 (170) (80) (250)
(Expense)/reversal (2,807) (864) (3,671) 810 798 1,608
Company's contributions 1,813 755 2,568 1,877 960 2,837
Prepayments 1,523 1,569 3,092 2,517 1,678 4,195
====================================================================================================16.2 BALANCE SHEET RECONCILIATION AT JUNE 30, 2001====================================================================================================
2001 2002
Pension Gratuity Total Pension Gratuity Total
Rupees in thousand
====================================================================================================
Defined benefits obligations (25,328) (8,412) (33,740) (19,152) (5,649) (24,801)
Fair value of plan assets 16,714 5,900 22,614 13,625 5,167 18,792
Past service cost 8,014 2,856 10,870 8,742 3,046 11,788
Actuarial gain / (loss) 2,123 1,225 3,348 -698 -886 -1,584
Prepayments 1,523 1,569 3,092 2,517 1,678 4,195
Less: Current maturity (728) (190) (918) (728) (190) (918)
795 1,379 2,174 1,789 1,488 3,277
====================================================================================================17. STORES, SPARES AND LOOSE TOOLS===================================================================================
2001 2000
Steel Cotton Steel Cotton
division division Total division division Total
NOTE Rupees in thousand
===================================================================================
Stores 2,032 - 2,032 1,779 - 1,779
Spare parts 17.1 26,837 - 26,837 27,392 - 27,392
Loose tools 339 - 339 340 - 340
Stores and spares 17.2 - 12,554 12,554 - 8,418 8,418
29,208 12,554 41,762 29,511 8,418 37,929
===================================================================================17.1 Spare parts include those in transit as at June 30, 2001 of Rs. 0.302 million (2000: Rs. 0.088 million). 17.2 Includes those in transit as at June 30, 2001 of Rs. 3.034 million (2000: Rs. Nil). 18. STOCK-IN-TRADE ===================================================================================
2001 2000
Steel Cotton Steel Cotton
division division Total division division Total
Rupees in thousand
===================================================================================
Raw materials
Hot rolled steel coils 34,591 - 34,591 10,461 - 10,461
Coating materials 21,152 - 21,152 19,159 - 19,159
Others - Pipe plant 3,147 - 3,147 2,464 - 2,464
Raw Cotton - 57,978 57,978 - 98 98
Stock-in-transit 8,550 104 8,654 499 - 499
67,440 58,082 125,522 32,583 98 32,681
Provision for obsolescence -
hot rolled steel coils (1,980) - (1,980) (3,404) - (3,404)
Provision for slow moving and
obsolete stock - coating mater(7,028) - (7,028) (9,669) - (9,669)
(9,008) - (9,008) (13,073) - (13,073)
58,432 58,082 116,514 19,510 98 19,608
Work-in-process 2,514 3,650 6,164 99 2,511 2,610
Finished goods 22,838 2,822 25,660 20,465 1,085 21,550
Cotton waste - 381 381 - 18 18
Provision for obsolescence -
finished bare pipes (3,619) - (3,619) (5,302) - -5,302
21,733 6,853 28,586 15,262 3,614 18,876
80,165 64,935 145,100 34,772 3,712 38,484
===================================================================================18.1 Stock-in-trade of the steel division and the cotton division amounting to Rs. Nil (2000: Rs. 7.06 million) and Rs. 49.515 millions (2000: Rs. Nil) respectively are pledged as security with some commercial banks.19. TRADE DEBTS ===================================================================================
2001 2000
Steel Cotton Steel Cotton
division division Total division division Total
Rupees in thousand
===================================================================================
Unsecured
Considered good 248,401 905 249,306 220 - 220
Considered doubtful - - - 656 - 656
248,401 905 249,306 876 - 876
Provision for doubtful trade debts - (656) (656)
248,401 905 249,306 220 - 220
===================================================================================19.1 Maximum amount due from associated undertakings at the end of any month during the year was Rs. 0.283 million (2000: Rs. 0.197 million).19.2 Unbilled sales amounts to Rs. 22.994 million (2000: Rs. Nil) 20. SHORT-TERM ADVANCES ===================================================================================
2001 2000
Steel Cotton Steel Cotton
division division Total division division Total
Rupees in thousand
===================================================================================
Considered good
Executives 60 - 60 30 - 30
Other staff 47 - 47 31 - 31
107 - 107 61 - 61
Suppliers for goods and service 1,352 827 2,179 1,545 - 1,545
1,459 827 2,286 1,606 - 1,606
===================================================================================
20.1 The maximum amount due at the end of any month during the year from executives was Rs. 0.090 million (2000: Rs. 0.088 million) representing unadjusted travelling and other advances.21. SHORT-TERM DEPOSITS AND PREPAYMENTS ===================================================================================
2001 2000
Steel Cotton Steel Cotton
division division Total division division Total
Rupees in thousand
===================================================================================
Security deposits 3,175 250 3,425 2,615 2,034 4,649
Prepayments 494 75 569 426 - 426
3,669 325 3,994 3,041 2,034 5,075
===================================================================================22. CURRENT MATURITY OF LONG-TERM INVESTMENTS===================================================================================
2001 2000
Steel Cotton Steel Cotton
division division Total division division Total
NOTE Rupees in thousand
===================================================================================
Government of Pakistan
US $ Bonds 14.7 9,656 - 9,656 - - -
Redeemable capital 14.8 - - - - - -
ICI Pakistan Limited 1,987 - 1,987 5,038 - 5,038
Saudi Pak Leasing Company Limi 2,528 - 2,528 2,544 - 2,544
Shakarganj Mills Limited 4 - 4 - - -
14,175 - 14,175 7,582 - 7,582
===================================================================================23. SHORT-TERM INVESTMENTS===================================================================================
2001 2000
Steel Cotton Steel Cotton
division division Total division division Total
NOTE Rupees in thousand
===================================================================================
Portfolio 23.1 145,777 - 145,777 211,342 - 211,342
Islamic Republic of Pakistan
Bond 10% 23.2 51,300 - 51,300 34,101 - 34,101
197,077 - 197,077 245,443 - 245,443
===================================================================================23.1 PORTFOLIOUnless stated otherwise the holding are in instruments of Rs. 10 each. The investments are stated below at the lower of cost and market value. ======================================================================================
Number of shares Rupees in thousand
2001 2000 2001 2000
======================================================================================
Quoted - Associated undertakings
--------------------------------------------------------------------------------------
1,321,044 1,389,044 Crescent Investment Bank Limited 20,935 21,317
422,635 348,635 Crescent Textile Mills Limited 5,200 3,642
91,300 91,300 Crescent Jute Products Limited 539 539
422,695 262,300 Crescent Leasing Corporation Limited 2,583 1,783
Jubilee Spinning and Weaving
26,490 26,490 Mills Limited 247 247
Pakistan Industrial Leasing
844,840 844,840 Corporation Limited 9,165 9,165
919,854 919,854 Shakarganj Mills Limited 8,803 8,803
360,075 600,500 Pakistan Industrial Credit and
Investment Corporation Limited 3,870 7,422
--------------------------------------------------------------------------------------
Quoted - Others
--------------------------------------------------------------------------------------
30,500 30,500 American Life Insurance Company Ltd. 826 626
40,000 Cherat Cement Limited 686 -
622,000 600,000 Commercial Union Life Assurance
Company (Pakistan) Limited 7,657 7,525
225,000 *400,000 Dewan Salman Fibre Limited
(*Formerly Dhan Fibres Limited) 8,535 5,957
30,861 65,110 Engro Chemicals Pakistan Limited . 1,615 4,721
50,000 50,000 Faisal Spinning Mills Limited 1,326 1,326
20,000 180,900 Fauji Fertilizer Company Limited 895 9,973
133,075 133,075 First Crescent Modaraba 430 430
124,500 - Hub Power Company Limited 2,552 -
30,000 100,000 Ibrahim Energy Limited 369 1,475
270,000 292,000 Ibrahim Fibres Limited 4,350 4,723
183,000 1,019,000 ICI Pakistan Limited 1,711 16,500
177,000 483,000 ICP S.E.M.F 3,154 8,606
120,800 120,800 Javed Omer Vohra & Company Limited 6,742 6,742
30,000 30,000 Kohinoor Raiwind Mills Limited 755 755
- 225,000 Lucky Cement Limited - 2,217
780 780 Lever Brothers Pakistan Ltd. (Rs. 50 each 578 578
50,000 203,000 Maple Leaf Cement Factory Limited 283 1,151
25,000 50,000 Mari Gas Company Limited 527 1,055
30,000 24,500 Millat Tractors Limited 3,703 3,109
170,500 - Muslim Commercial Bank Limited 5,054 -
125,025 125,025 National Development Leasing Corporation 682 682
407,300 291,400 Nishat Chunian Mills Limited 4,201 6,011
265,000 25,000 Nishat Mills Limited 7,286 1,047
64,680 56,000 Packages Limited 3,608 3,608
405,500 405,500 Pak Datacom Limited 11,938 11,877
- 6,300 Pakistan State Oil Company Limited - 1,144
739,000 557,000 Pakistan Telecomununication Company Ltd. 16,053 15,585
200,000 - Pakistan Tobacco Company Limited 2,026 -
406,500 426,000 Samin Textile Mills Limited 4,275 4,487
8,000 27,000 Shell Pakistan Limited 2,168 6,772
5,300 3,600 Siemens (Pakistan) Engineering Company Ltd 579 339
20,000 140,000 Sitara Energy Limited 481 3,364
882,570 1,802,061 Sui Northern Gas Pipelines Limited 9,328 23,350
903,539 562,265 Sui Southern Gas Company Limited 11,715 8,884
50,000 205,000 Tri Pack Films Limited 1,568 6,531
100,000 100,000 Trust Investment Bank Limited 850 850
56,500 67,000 Umer Fabrics Limited 1,123 1,346
57,500 50,000 Zainab Textile Mills Limited 557 557
Book value of short-term investments 181,328 226,821
Less: Provision for diminution in the value of short-term investment(35,551) (15,479)
145,777 211,342
======================================================================================23.2 ISLAMIC REPUBLIC OF PAKISTAN BOND 10%These bonds were issued by the Government of Pakistan on December 13, 1999 in exchange of its outstanding eurobonds and exchangeable notes. The company had swaped its 6% PTCL exchangeable notes (face value US$ 980,000) with the Islamic Republic of Pakistan (IROP) bonds (face value US$ 1,035,000) during the year ended June 30, 2000. The IROP Bond carries the interest rate of 10% payable semi-annually principal will be repaid in 4 equal yearly installments commencing from December 2002. ======================================================================================
Rupees in thousand
2,001 2,000
======================================================================================
Face value US$ 1,035,000 (2000: US$ 1,035,000)
Cost US$ 652,050 (2000: US$ 652,050) 34,101 32,619
Add: Exchange gain 17,199 1,482
51,300 34,101
======================================================================================These bonds are in the name of a financial institution an associated undertaking and are held by it on behalf of the company.23.3 Aggregate market value of investments in shares/modaraba certificates quoted on the stock exchange as at June 30, 2001 was Rs. 145.777 million (2000: Rs. 211.342 million) which at the close of business on November 8, 2001 was Rs. 135.648 million. 23.4 The following investments having an aggregate face value of Rs. 35.707 million (2000: Rs. 17.872 million) are deposited as security with some commercial banks. =====================================================================================
Rupees in thousand
2001 2000
=====================================================================================
Commercial Union Life Assurance Limited 885 885
Crescent Investment Bank Limited 2,841 5,991
Crescent Leasing Corporation Limited 764 840
Dewan Salman Fibres Limited 1,667 -
Engro Chemicals Pakistan Limited 250 -
Fauji Fertilizer Company Limited 200 -
ICI Pakistan Limited 1,500 -
Ibrahim Fibre Limited 2,000 -
Pakistan Telecommunication Company Limited 8,200 -
Millat Tractors Limited 300 -
Muslim Commercial Bank Limited 1,100 -
Nishat Mills Limited 1,750 -
Nishat (Chunian) Mills Limited 4,000 -
Pakistan Industrial Leasing Corporation Limited - 600
Packages Limited 250 -
Shakarganj Mills Limited - 6,678
Sui Northern Gas Pipelines Limited 4,500 359
Sui Southern Gas Company Limited 5,000 2,519
Tri Pack Films Limited 500 -
35,707 17,872
=====================================================================================23.5 Investments in American Life Insurance Company Limited and Commercial Union Assurance Limited having an aggregate face value of Rs. 5.640 million are not held in the name of the company.24. OTHER RECEIVABLES ================================================================================================
2001 2000
Steel Cotton Steel Cotton
division division Total division division Total
NOTE Rupees in thousand
=================================================================================================
Considered good
Mark-up accrued on - deposits 13 1 14 206 - 206
others 1,694 - 1,694 1,973 - 1,973
Margin on letters of credit and guarantee 1,192 - 1,192 1,095 - 1,095
Dividend receivables 2,776 - 2,776 3,356 - 3,356
Receivable on account of sale of shares 5,921 - 5,921 23,835 - 23,835
Due from associated
undertakings 24.2 726 80 806 901 - 901
Sales tax refundable 3,634 741 4,375 2,897 - 2,897
Less: Provision (930) - -930
2,704 741 3,445 2,897 - 2,897
Receivable against deposit
for building 24.3 5,461 - 5,461 - - -
Against sale of plant and machinery - 3,800 3,800 - - -
Staff retirement benefits 918 - 918 918 - 918
Others 18 - 18 20 - 20
21,423 4,622 26,045 35,201 - 35,201
=================================================================================================24.1 Maximum amount due from associated undertakings at the end of any month during the year was Rs. 1.797 million (2000: Rs. 46.74 million).24.2 DUE FROM ASSOCIATED UNDERTAKINGS =================================================================================================
2001 2000
Steel Cotton Steel Cotton
division division Total division division Total
Rupees in thousand
=================================================================================================
Shakarganj Mills Limited 468 - 468 - - -
Premier Insurance Company
of Pakistan Limited 258 80 338 - - -
Crescent Apparel Manufacturing Company - - - 870 - 870
Crescent Knitwear Limited - - - 13 - 13
Crescent Industrial Chemicals Limited - - - 17 - 17
Pakistan Industrial Leasing
Corporation Limited 1 1
726 80 806 901 - 901
=================================================================================================24.3 This represents advance given for acquiring office premises which was shown under capital work in progress. The company is now pursuing for recovery of the advance.25. TAXATION 25.1 The Deputy Commissioner of Income Tax (DCIT) while finalising the assessment for the year ended June 30, 1997 and June 30, 1998 has issued demands for additional liabilities. The company had filed an appeal with the CIT (Appeals). The management being confident that the ultimate decision will be in the company's favour has not made provision in the accounts for the additional amount of Rs. 6.837 million and Rs. 17.001 million in respect of year ended June 30, 1997 and June 30, 1998 respectively. 25.2 Aggregate amount of tax refundable for Rs. 70.283 million as on June 30, 2001 includes an amount of Rs. 36.098 million being tax refund determined for the assessment year 1997-98. 26. SHORT-TERM DEPOSITS WITH NON-BANKING =================================================================================================
2001 2000
Steel Cotton Steel Cotton
division division Total division division Total
Rupees in thousand
=================================================================================================
Financial institutions
First Crescent Modaraba - - - 15,000 - 15,000
27. Cash and bank balances
With banks - in deposit accounts 4,790 17 4,807 15,797 - 15,797
in current accounts 15,115 7,198 22,313 582 5 587
Cash in hand 111 119 230 101 5 106
20,016 7,334 27,350 16,480 10 16,490
=================================================================================================28. SALES � LOCAL=================================================================================================
2001 2000
Steel Cotton Steel Cotton
division division Total division division Total
Rupees in thousand
=================================================================================================
Bare Pipes (own product) 230,025 - 230,025 94,119 - 94,119
Coating of Pipes 76,960 - 76,960 27,119 - 27,119
Cotton yarn (net of commission
Rs. 2.162 million - 499,968 499,968
Cotton Waste - 11,880 11,880 - - -
306,985 511,848 818,833 121,238 - 121,238
=================================================================================================29. COST OF SALES=================================================================================================
2001 2000
Steel Cotton Steel Cotton
division division Total division division Total
Rupees in thousand
=================================================================================================
Bare Pipes 29.1 193,941 193,941 112,728 - 112,728
Coating of Pipes 29.4 58,441 58,441 37,306 - 37,306
Cotton 29.7 - 486,592 486,592 - - -
252,382 486,592 738,974 150,034 - 150,034
=================================================================================================29.1 COST OF SALES - BARE PIPES======================================================================================
Rupees in thousand
NOTE 2001 2000
======================================================================================
Raw material consumed 160,077 63,392
Stores and spares consumed 3,943 1,930
Fuel, power and electricity 5,498 4,465
Salaries, wages and other benefits 29.2 13,320 11,810
Insurance 1,224 1,386
Repairs and maintenance 450 574
Depreciation 11,691 12,027
Other expenses 1,702 1,387
37,828 33,579
197,905 96,971
Opening stock of work-in-process 99 122
Closing stock of work-in-process (2,514) (99)
(2,415) 13
Cost of goods manufactured 195,490 96,984
Opening stock of finished goods 20,216 35,960
Closing stock of finished goods (21,765) -20,216
(1,549) 15,744
193,941 112,728
======================================================================================29.2 DETAIL OF SALARIES, WAGES AND OTHER BENEFITS======================================================================================
Rupees in thousand
NOTE 2001 2000
======================================================================================
Salaries, wages and other benefits 12,265 12,114
Provident fund contributions 156 150
Pension fund 29.3 674 -229
Staff retirement gratuity 29.3 225 -225
13,320 11,810
======================================================================================29.3 STAFF RETIREMENT BENEFITS======================================================================
Pension Gratuity Pension Gratuity
2001 2001 2000 2000
Rupees in thousand
======================================================================
Current service cost 340 165 352 160
Interest cost 551 177 561 196
Expected return on plan assets (392) (161) (354) (143)
Actuarial gain - (5) - -
Past service cost 175 49 206 54
Transitional assets - - (994) (492)
674 225 (229) (225)
======================================================================29.4 COST OF SALES - COATING OF PIPES======================================================================================
Rupees in thousand
NOTE 2001 2000
======================================================================================
Material consumed 28,748 11,050
Stores and spares consumed 3,489 1,910
Fuel and power 3,637 970
Salaries, wages and other benefits 29.5 6,312 5,610
Insurance 967 857
Repairs and maintenance 734 602
Depreciation 14,465 14,879
Other expenses 913, 695
30,517 25,523
Cost of goods manufactured 59,265 36 573
Opening stock of finished goods - coated pipes 249 982
Closing stock of finished goods - coated pipes (1,073) (249)
(824) 733
58,441 37,306
======================================================================================29.5 DETAIL OF SALARIES, WAGES AND OTHER BENEFITS======================================================================================
Rupees in thousand
NOTE 2001 2000
======================================================================================
Salaries, wages and other benefits 5,815 5,767
Provident fund contributions 39 36
Pension fund 29.6 337 -97
Staff retirement gratuity 29.6 121 -96
6,312 5,610
======================================================================================29.6 STAFF RETIREMENT BENEFITS===========================================================================
Pension Gratuity Pension Gratuity
2001 2001 2000 2000
Rupees in thousand
===========================================================================
Current service cost 170 89 149 68
Interest cost 276 95 239 83
Expected return on plan assets (196) (87) (150) (61)
Actuarial (gain)/loss - (3) 87 23
Past service cost 87 27 - -
Transitional assets - - (422) (209)
337 121 (97) (96)
===========================================================================29.7 COST OF SALES � COTTON==============================================================================
Rupees in thousand
NOTE 2001 2000
==============================================================================
Raw material consumed 381,506 860
Packing materials consumed 4,328 60
Stores and spares consumed 10,914 -
Fuel and power 45,552 100
Salaries, wages and other benefits 29.8 21,458 -
Insurance 1,494 -
Repairs and maintenance 620 -
Depreciation 21,054 56
Other expenses 2,542 33
489,468 1,109
Opening stock of work-in-process 2,511 2,487
Closing stock of work-in-process (3,650) (2,511)
(1,139) (24)
Cost of goods manufactured 488,329 1,085
Opening stock of finished goods 1,085 -
Closing stock of finished goods (2,822) (1,085)
(1,737) (1,085)
486,592 -
==============================================================================29.8. DETAIL OF SALARIES, WAGES AND OTHER BENEFITS==============================================================================
Rupees in thousand
NOTE 2001 2000
==============================================================================
Salaries, wages and other benefits 20,783 -
Provident fund contributions 394 -
Pension fund 29.9 281 -
21,458 -
==============================================================================29.9 STAFF RETIREMENT BENEFITS==============================================================================
Pension
2001 2000
==============================================================================
Current service cost 142 -
Interest cost 230 -
Expected return, on plan assets (164) -
Past service cost 73 -
281 -
==============================================================================30. SELLING EXPENSES=================================================================================================
2001 2000
Steel Cotton Steel Cotton
division division Total division division Total
NOTE Rupees in thousand
=================================================================================================
Salaries, wages and other
benefits 30.1 2,497 - 2,497 2,818 - 2,818
Travelling and conveyance 521 37 558 404 - 404
Depreciation - - - 343 - 343
Postage, telephone and telegram - 160 160 - - -
Advertisement 594 - 594 459 - 459
Bid bond expenses 206 - 206 32 - 32
Bad debts written off 3 - 3 - - -
Provision for doubtful debts - - - 656 - 656
Transportation 10 165 175 196 - 196
Legal and professional charges 88 88 25 - 25
Others 598 365 963 543 - 543
4,429 815 5,244 5,476 - 5,476
=================================================================================================30.1 DETAILS OF SALARIES, WAGES AND OTHER BENEFITS=================================================================================================
2001 2000
Steel Cotton Steel Cotton
division division Total division division Total
NOTE Rupees in thousand
=================================================================================================
Salaries, wages and other benefits 2,093 - 2,093 2,851 - 2,851
Provident fund contributions 121 - 121 144 - 144
Pension fund 30.2 216 - 216 -89 - -89
Staff retirement gratuity 30.2 67 - 67 -88 - -88
2,497 - 2,497 2,818 - 2,818
=================================================================================================30.2 STAFF RETIREMENT BENEFITS===============================================================================
Pension Gratuity Pension Gratuity
2001 2001 2000 2000
Rupees in thousand
===============================================================================
Current service cost 109 49 137 62
Interest cost 177 53 219 77
Expected return on plan assets (126) (48) (138) (56)
Actuarial gain - -2 - -
Past service cost 56 15 81 21
Transitional assets - - (388) (192)
216 67 -89 -88
===============================================================================31. ADMINISTRATION EXPENSES======================================================================================
Rupees in thousand
NOTE 2001 2000
======================================================================================
Salaries, wages and other benefits 31.1 16,470 14,009
Rents, rates and taxes 370 404
Travelling, conveyance and entertainment 2,757 2,578
Fuel and power 1,968 1,699
Postage, telephone and telegram 1,338 1,159
Insurance 501 976
Repairs and maintenance 794 1,113
Auditors' remuneration 31.3 1,053 853
Legal and professional and corporate service charges 1,474 1,661
Donations 31.4 3,465 317
Depreciation 5,478 5,098
Printing, stationery and office supplies 342 266
Newspapers, subscriptions and periodicals 441 530
Others 716 518
37,167 31,181
Charges allocated to cotton division 5,141 -
32,026 31,181
======================================================================================31.1 DETAIL OF SALARIES, WAGES AND OTHER BENEFITS======================================================================================
Rupees in thousand
NOTE 2001 2000
======================================================================================
Salaries, wages and other benefits 14,035 14,130
Provident fund contributions 685 663
Pension fund 31.2 1,299 (395)
Staff retirement gratuity 31.2 451 (389)
16,470 14,009
======================================================================================31.2 STAFF RETIREMENT BENEFITS======================================================================================
Pension Gratuity Pension Gratuity
2001 2001 2000 2000
Rupees in thousand
======================================================================================
Current service cost 655 332 608 277
Interest cost 1,064 354 970 340
Expected return on plan assets (757) (324) (612) (248)
Actuarial (gain)/loss - (10) 356 93
Past service cost 337 99 - -
Transitional assets - - (1,717) (851)
1,299 451 (395) (389)
======================================================================================31.3 AUDITORS' REMUNERATION======================================================================================
Rupees in thousand
2001 2000
======================================================================================
Audit fee 450 225
Audit fee for funds' accounts and special reports - 40
Taxation 415 535
865 800
Out of pocket expenses 188 53
1,053 853
======================================================================================31.4 DONATIONSDonations include the following in whom a director is interested: =================================================================================
Name of Interest in Name and address Amount donated
director donee the donee
2001 2000
=================================================================================
Mr. Ahsan M. Chairman The Citizens Foundation
Saleem 9th Floor, NIC Building, Karachi 2,579 60
-do- Governor National Textile Foundation,
7th Floor, Habib Bank Building
Circular Road, Faisalabad 500 -
-do- Member Commecs Institute of Business
Managing Education, ST-9, Block 13,
Committee Gulistan-e-Johar,
Scheme-36, Karachi 25 -
3,104 60
2001 2000
=================================================================================32. OTHER INCOME=================================================================================================
2001 2000
Steel Cotton Steel Cotton
division division Total division division Total
NOTE Rupees in thousand
=================================================================================================
Liabilities written-back
workers' welfare fund 4,282 - 4,282 7,754 - 7,754
others 19,040 - 19,040 11,481 - 11,481
Provision written back for stock in trade 5,740 - 5,740 13,901 - 13,901
Provision written back for diminution
in the value of
short term investments - - - 14,920 - 14,920
long term investment - - - 4,855 - 4,855
exchangeable notes - - - 1,827 - 1,827
Return on deposits advances
and investments 7,870 1 7,871 13,714 - 13,714
Profit on redeemable capital certificates 3,802 - 3,802 4,845 - 4,845
Mark-up recovered from:
associated undertakings 361 - 361 5,209 - 5,209
Gain on disposals of fixed assets 1,566 1,210 2,776 770 - 770
Gain on sale of investments - - - 71,468 - 71,468
Gain on sale of investments -
TFC and Wapda bonds - - - 1,000 - 1,000
Rentals from an associated undertaking 188 - 188 188 - 188
Dividend income 32.1 21,996 - 21,996 16,404 - 16,404
Exchange gain 19,906 - 19,906 1,665 - 1,665
Insurance commission 1,628 - 1,628 - - -
Others - 14 14 - - -
86,379 1,225 87,604 170,001 - 170,001
=================================================================================================32.1 DIVIDEND INCOME=================================================================================================
2001 2000
Steel Cotton Steel Cotton
division division Total division division Total
Rupees in thousand
=================================================================================================
From associated undertakings
Pakistan Industrial Leasing
Corporation Limited 1,430 - 1,430 1,344 - 1,344
Crescent Investment Bank Limited 7,878 - 7,878 2,270 - 2,270
Crescent Textile Mills Limited 1,162 - 1,162 903 - 903
10,470 - 10,470 4,517 - 4,517
Others 11,526 (11,526) 11,887 - 11,887
21 996 - 21,996 16,404 - 16,404
=================================================================================================33. FINANCIAL CHARGES=================================================================================================
2001 2000
Steel Cotton Steel Cotton
division division Total division division Total
Rupees in thousand
-------------------------------------------------------------------------------------------------
Interest on a long-term loan - 11,338 11,338 969 - 969
Interest on provident fund - 44 44 - - -
Mark-up on:
Running finances 1,551 7,019 8,570 893 - 893
Short term loan 1,934 - 1,934 - - -
Assets subject to finance lease 53 - 53 202 - 202
Bank charges 457 648 1,105 645 - 645
3,995 19,049 23,044 2,709 - 2,709
Financial charges related
to cotton division (3,643) 3,643 - - - -
352 22,692 23,044 2,709 - 2,709
=================================================================================================34. OTHER CHARGES=====================================================================================
Rupees in thousand
2001 2000
=====================================================================================
Steel division
Expenses in respect of project investment - 738
Provision against sales tax refundable 930 -
Bad debts written off against amount due from associated 901 -
Provision for diminution in the value of long-term invest - 34,507
Provision for diminution in the value of short-term invest 20,072 -
Loss on sale of investments 7,004 -
28,907 35,245
=====================================================================================35. TAXATION=====================================================================================
Rupees in thousand
2001 2000
=====================================================================================
Current 5,500 607
Prior - -12,935
Deferred 12,832 -11,100
18,332 -23,428
=====================================================================================36. EARNINGS PER SHARE======================================================================================
Rupees in thousand
2001 2000
======================================================================================
Net profit after taxation 54,769 90,022
Number of shares
Average number of ordinary shares in issue during the yea 20,084,863 20,084,863
Basic earnings per share Rs. 2.73 Rs. 4.48
======================================================================================37. CASH (USED IN)/GENERATED FROM OPERATIONS======================================================================================
Rupees in thousand
NOTE 2001 2000
======================================================================================
Profit before taxation 73,101 66,594
Adjustments for non cash charges and other items:
Depreciation 52,688 32,403
Provision for diminution in the value of long-term invest - 29,652
Provision for diminution in the value of short-term invest 20,072 (14,920)
Provision for diminution in the value of exchangeable bon - (1,827)
Gain on sale of Wapda Bonds and TFC - (1,000)
Exchange gain (19,010) (1,623)
Pension and gratuity expense/(adjustment) 3,871 (1,609)
Financial charges 23,044 2,709
Gain on disposals of fixed assets (2,776) (770)
(Gain) / loss on sale of investments 7,004 (71,468)
Dividend income (21,996) (16,404)
Return on deposits, advances and investment (8,232) (13,714)
Working capital changes 37.1 (227,545) 4,264
Cash (used in ) / generated from operations (99,979) 12,287
======================================================================================37.1 WORKING CAPITAL CHANGES======================================================================================
Rupees in thousand
2001 2000
======================================================================================
(Increase)/decrease in current assets
Stores, spares and loose tools 3,833 (7,098)
Stock-in-trade (106,616) 5,386
Trade debts (249,088) 2,190
Short-term advances (680) (555)
Short-term deposits and prepayments 1,081 (2,362)
Other receivables (net) (4,348) 14,977
(363,482) 12,538
Increase/(decrease) in current liabilities
Creditors, accrued and other liabilities (net) 135,937 (8,274)
(227,545) 4,264
======================================================================================38. CASH AND CASH EQUIVALENTS======================================================================================
Rupees in thousand
NOTE 2001 2000
======================================================================================
With non banking financial
institutions 26 - 15,000
Short -term finance 8 (53,377) (20,546)
Cash and bank balances 27 27,350 16,490
(26,027) 10,944
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