| Exide Pakistan Ltd - 2003 |
=================================================================================== BALANCE SHEET AS AT MARCH 31, 2003 =================================================================================== Note 2003 2002 (Rupees �000) =================================================================================== SHARE CAPITAL & RESERVES Authorised capital 10,000,000 (2002:10,000,000) ordinary shares of Rs 10 each 100,000 100,000 Issued, subscribed and paid-up capital 3 54,057 54,057 Capital reserves 4 259 259 Revenue reserves 5 209,491 189,491 Unappropriated profit 5,038 5 268,845 243,812 SURPLUS ON REVALUATION OF FIXED ASSETS - net of tax 6 32,517 43,465 REDEEMABLE CAPITAL - 26,956 DEFERRED TAXATION 7 3,891 2,766 CURRENT LIABILITIES Current portion of redeemable capital - 6,144 Short-term finances 8 92,999 90,885 Creditors, accrued and other liabilities 9 83,957 79,961 Proposed dividend 10,811 8,109 187,767 185,099 COMMITMENTS 10 493,020 502,098 TANGIBLE FIXED ASSETS Operating assets 11 141,810 142,193 Capital work-in-progress 12 4,163 3,974 145,973 146,167 LONG-TERM INVESTMENTS 13 25,531 25,531 LONG-TERM DEPOSITS 7,101 6,642 LONG-TERM LOANS - unsecured 14 398 12 CURRENT ASSETS Spares 15 4,531 6,564 Stock-in-trade 16 162,219 165,423 Trade debts 17 76,627 80,401 Loans and advances 18 1,150 1,370 Short-term prepayments, deposits and other receivables 19 3,713 3,891 Taxation recoverable 33,880 29,800 Cash and bank balances 20 31,897 36,297 314,017 323,746 493,020 502,098 =================================================================================== =================================================================================== PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2003 =================================================================================== Note 2003 2002 (Rupees �000) =================================================================================== Net sales 21 890,712 832,218 Cost of goods sold 22 729,470 706,790 Gross profit 161,242 125,428 Administration and selling expenses 23 98,638 83,890 Operating profit 62,604 41,538 Other income 25 1,780 3,685 64,384 45,223 Financial charges 26 13,294 19,774 Other charges 27 4,991 2,655 18,285 22,429 Profit before taxation 46,099 22,794 Taxation 28 17,523 12,795 Profit after taxation 28,576 9,999 Unappropriated profit / (accumulated loss) brought forward 5 (12,285) 28,581 (2,286) Transfers: Transferred from surplus on revaluation of fixed assets: - prior years 7,067 - - current year- net of tax 201 - 7,268 - Transferred from revenue reserves - 10,400 Profit available for appropriation 35,849 8,114 Appropriations: Proposed dividend Rs. 2.00 per share (10,811) (8,109) (2002:Rs. 1.50 per share) Transfer to revenue reserves (20,000) - (30,811) (8,109) Unappropriated profit carried forward 5,038 5 Rupees Earnings per share 29 5.29 1.85 =================================================================================== =================================================================================== CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2003 =================================================================================== Note 2003 2002 (Rupees �000) =================================================================================== CASH FLOW FROM OPERATING ACTIVITIES Cash generated from operations 33 85,488 62,992 Financial charges paid (13,623) (18,476) Taxes paid (24,158) (10,276) (Increase) / decrease in long-term deposits (459) 197 (Increase) / decrease in long-term loans (386) - Net cash inflow from operating activities 46,862 34,437 CASH FLOW FROM INVESTING ACTIVITIES Payment for capital expenditure (14,148) (4,455) Interest received during the year 75 109 Proceeds from sale of fixed assets 1,897 2,268 Net cash outflow on investing activities (12,176) (2,078) CASH FLOW FROM FINANCING ACTIVITIES Repayment of redeemable capital (33,100) (5,356) Dividends paid (8,100) (11) Net cash outflow on financing activities (41,200) (5,367) Net (decrease) / increase in cash and cash equivalents (6,514) 26,992 Cash and cash equivalents at the beginning of the year (54,588) (81,580) Cash and cash equivalents at the end of the year 34 (61,102) (54,588) ===================================================================================NOTES TO THE ACCOUNTS FOR THE YEAR ENDED MARCH 31, 2003 3. ISSUED, SUBSCRIBED & PAID-UP CAPITAL ===================================================================================
2003 2002
(Rupees �000)
===================================================================================
Ordinary shares
of Rs 10 each
359,248 Fully paid in cash 3,592 3,592
20,894 Issued for consideration other than cash 209 209
5,025,595 Issued as fully paid bonus shares 50,256 50,256
5,405,737 54,057 54,057
===================================================================================4. CAPITAL RESERVES===================================================================================
2003 2002
(Rupees �000)
===================================================================================
Share premium 259 259
===================================================================================5. REVENUE RESERVES===================================================================================
2003 2002
(Rupees �000)
===================================================================================
Balance at April 1 189,491 199,891
Transfer from/(to) profit and loss account 20,000 (10,400)
Balance at March 31 209,491 189,491
===================================================================================6. SURPLUS ON REVALUATION OF FIXED ASSETS - NET OF TAXThis represents surplus arising on revaluation of leasehold land and buildings in 1974,1978, 1983, 1986 and 1998, net of deferred tax thereon. ===================================================================================
2003 2002
(Rupees �000)
===================================================================================
Surplus on revaluation of fixed assets
as at April 1 43,465 43,465
Transferred to unappropriated profits:
- Surplus relating to incremental depreciation
charged on related assets in prior years (7,067)
- Surplus relating to incremental depreciation
charged during the year - net of deferred tax (201)
Related deferred tax liability (109)
Surplus on revaluation of fixed assets as at March 31 36,088 43,465
Less: related deferred tax liability on:
revaluation as at April 1 3,680 -
incremental depreciation charged during
the year transferred to profit and loss account (109) -
3,571 -
32,517 43,465
===================================================================================7. DEFERRED TAXATION===================================================================================
2003 2002
(Rupees �000)
===================================================================================
Deferred liability arising due to accelerated
tax depreciation 6,837 7,198
Deferred liability arising on surplus on
revaluation of fixed assets 3,571 -
Deferred asset arising in respect of certain
short-term provisions (6,517) (4,432)
3,891 2,766
===================================================================================8. SHORT-TERM FINANCES � SECURED===================================================================================
2003 2002
Note (Rupees �000)
===================================================================================
Short-term running finances 8.1 48,272 46,785
Import finances 8.2 9,727 9,100
Other short-term finances 8.3 35,000 35,000
92,999 90,885
===================================================================================8.1. The facilities for short-term running finances available from various banks amounts to Rs 145 million (2002: Rs 160 million).These facilities carry mark-up at rates ranging from Re 0.2055 to Re 0.4110 (2002: Re 0.3836 to Re 0.4384) per Rs 1,000 per day and are repayable by March 2004. The arrangements are secured by a joint hypothecation over the Company�s stock-in-trade and trade debts ranking pari-passu with the charge mentioned in notes 8.2 and 8.3. 8.2. The facilities for refinancing letters of credit available from various commercial banks amount to Rs 50 million (2002: Rs 10 million). These facilities carry mark-up at rates ranging from Re 0.0983 to Re 0.3288 (2002: Re 0.3425) per Rs 1,000 per day. These arrangements are secured by hypothecation of the Company�s stock-in-trade and trade debts ranking pari-passu with the charge mentioned in notes 8.1 and 8.3. 8.3. The facilities for short-term finances available from a commercial bank amounted to Rs 35 million (2002: Rs 35 million). The facilities carry mark-up at a rate of Re 0.1096 (2002: Re 0.3082) per Rs 1,000 per day. The arrangements are secured by a joint hypothecation of the Company�s stock-in-trade and trade debts ranking pari-passu with the charge mentioned in notes 8.1 and 8.2. 9. CREDITORS, ACCRUED AND OTHER LIABILITIES ===================================================================================
2003 2002
Note (Rupees �000)
===================================================================================
Creditors 3,542 3,862
Bills payable 18,947 22,039
Accrued liabilities 27,113 16,572
Advances from customers 2,218 2,520
Mark-up accrued on
- Running finances 673 2,247
- Import finances 27 246
- Redeemable capital - 395
Provision for battery guarantee claims 4,259 4,089
Workers� Profit Participation Fund 9.1 2,504 1,245
Workers� Welfare Fund 3,440 2,269
Sales tax payable 9.2 13,527 13,709
Gratuity payable 9.3 831 -
Due to associated undertakings - 729
Unclaimed dividends 290 281
Retention money 1,355 2,338
Others 5,231 7,420
83,957 79,961
===================================================================================9.1. WORKERS� PROFIT PARTICIPATION FUND===================================================================================
2003 2002
Note (Rupees �000)
===================================================================================
Balance at April 1 1,245 14
Allocation for the year 27 2,490 1,231
3,735 1,245
Interest on funds utilised in the Company�s
business 26 20 -
3,755 1,245
Less: amount paid 1,251 -
Balance at March 31 2,504 1,245
===================================================================================9.2. SALES TAX PAYABLEThe above amount includes a provision of Rs 9.307 million (2002: Rs 9.307 million) made by the Company for additional sales tax claimed by the authorities in respect of sales tax liability on lead oxide during the period May 1983 to May 1988. The principal amount of the demand amounting to Rs 6.434 million has already been paid by the Company in prior years. In addition to the principal amount, the sales tax authorities have raised a demand of additional tax aggregating to Rs 46.352 million. However, the Company contends that the demand for additional tax is unjustified as the Company�s appeal regarding the issue of taxability of the product was pending during the period of default and hence it should not be liable for any additional tax. The Company�s appeal in respect of this case is currently pending at the High Court. The accrual of Rs 9.307 million has been made on account of prudence and represents the Company�s estimate of the maximum liability in respect of this demand. 9.3. GRATUITY PAYABLE ===================================================================================
(Rupees �000)
===================================================================================
Balance as at April 1 (194)
Add: charge for the year 1,025
831
Less: payments made during the year -
Gratuity payable at March 31 831
===================================================================================10. COMMITMENTSCommitments for rentals under operating lease agreements amounted to Rs 5.071 million payable as follows: ===================================================================================
Year (Rupees �000)
===================================================================================
2003-2004 1,592
2004-2005 1,645
2005-2006 1,233
2006-2007 601
5,071
===================================================================================11. OPERATING ASSETS11.1. THE FOLLOWING IS A STATEMENT OF OPERATING ASSETS: =====================================================================================================================================================================
Cost or Additions/ Cost or Accumulated Depreciation Accumulated Net book Depreciation
revaluation (deletions) revaluation depreciation charge for depreciation value at rate %
at April 1, at March 31, at April 1, the year/ at March 31, March 31, 2003 per
2002 2003 2002 (accumulated 2003 annum
depreciation
on deletions)
(Rupees �000)
=====================================================================================================================================================================
Leasehold land 58,703 - 58,703 4,400 1,174 5,574 53,129 2
Buildings on
leasehold land 39,773 90 39,863 6,723 1,771 8,494 31,369 2-10
Plant and
machinery 102,182 9,055 111,237 55,523 8,339 63,862 47,375 10-20
Furniture and
fixtures 4,759 106 4,865 3,874 192 4,066 799 10-25
Office equipment
and appliances 4,198 315 4,490 2,922 407 3,316 1,174 10-20
(23) (13)
Vehicles 10,174 4,393 13,657 4,154 2,135 5,693 7,964 10-20
(910) (596)
2003 219,789 13,959 232,815 77,596 14,018 91,005 141,810
(933) (609)
2002 217,770 4,472 219,789 65,789 13,447 77,596 142,193
(2,453) (1,640)
=====================================================================================================================================================================11.2. THE DEPRECIATION CHARGE FOR THE YEAR HAS BEEN ALLOCATED AS FOLLOWS:===================================================================================
2003 2002
Note (Rupees �000)
===================================================================================
Cost of goods sold 22 11,670 11,272
Administration and selling expenses 23 2,348 2,175
14,018 13,447
===================================================================================11.3. Had there been no revaluation, the book value of leasehold land and buildings would have been as follows:===================================================================================
Cost at Accumulated Book value
March 31, 2003 depreciation at March 31,
at March 2003
31, 2003
(Rupees �000)
===================================================================================
Leasehold land 29,938 2,796 27,142
Buildings on leasehold land 32,292 10,437 21,855
===================================================================================11.4. THE FOLLOWING OPERATING ASSETS WERE DISPOSED OF DURING THE YEAR:=============================================================================================
Cost Accumulated Book Sale Particulars of buyers
Depreciation Value Proceeds
(Rupees �000)
=============================================================================================
Vehicles
Sold by negotiation 13 13 - 125 Kausar Agencies
64 51 13 350 Sami ul Bari
61 55 6 61 A Karim Nayani (employee)
92 23 69 144 M Y Khan (employee)
64 16 48 309 M A Farrukh (employee)
61 49 12 61 Majid Ali (employee)
61 49 12 61 M Sheereen (employee)
61 55 6 61 Bakht-e-Karam (employee)
61 55 6 61 Irshad Ahmad (employee)
61 55 6 61 Pir Mohammad (employee)
61 55 6 61 Ashfaq Ahmad (employee)
61 55 6 61 Nisar Ahmad (employee)
46 21 25 144 M Khalid Qureshi (employee)
34 13 21 101 Abdul Shakeel (employee)
40 10 30 151 Sharif Nadeem (employee)
Insurance claim 69 21 48 67 New Jubilee Insurance
910 596 314 1,879
Office equipment 13 7 6 12 New Jubilee Insurance
Insurance claim
10 6 4 6 New Jubilee Insurance
23 13 10 18
2003 933 609 324 1,897
2002 2,453 1,640 813 2,268
=============================================================================================12. CAPITAL WORK-IN-PROGRESS===================================================================================
2003 2002
(Rupees �000)
===================================================================================
Plant and machinery 2,445 2,849
Advances to suppliers 1,718 1,125
4,163 3,974
===================================================================================13. LONG-TERM INVESTMENTS - AT COST===================================================================================
2003 2002
Note (Rupees �000)
===================================================================================
Percentage holding
3,067,390 (2002: 3,067,390) ordinary shares
of Rs 10 each held in Automotive Battery
Company Limited, a listed company
(Market value as at March 31, 2003
Rs 24.539 million; 2002: Rs 15.797
million) 13.1 58.26 65,949 65,949
Provision for diminution in value of
investment (40,642) (40,642)
25,307 25,307
22,380 (2002: 22,380) ordinary shares of
Rs 10 each held in Chloride Pakistan (Private)
Limited (Net assets value as at March 31, 2003
Rs 0.224 million; 2002 : Rs 0.224 million) 100 224 224
25,531 25,531
===================================================================================13.1. The shares of Automotive Battery Company Limited have been pledged with Bankers Equity Limited as a security in respect of long term loans obtained by the Company in prior years.These loans have been fully repaid by the Company in the current year and the Company has commenced the process for obtaining release of these securities. 14. LONG-TERM LOANS � UNSECURED ===================================================================================
2003 2002
Note (Rupees �000)
===================================================================================
Loans to employees 512 28
Less: current maturity shown under current
assets 18 (114) (16)
398 12
===================================================================================15. SPARES===================================================================================
2003 2002
(Rupees �000)
===================================================================================
Spares (including Rs 0.146 million in transit;
2002: Rs 0.162 million) 6,610 8,559
Less: Provision for slow moving and obsolete spares (2,079) (1,995)
4,531 6,564
===================================================================================16. STOCK-IN-TRADE===================================================================================
2003 2002
(Rupees �000)
===================================================================================
Raw and packing materials and components (including
Rs 46.804 million in transit; 2002: Rs 46.520 million) 106,229 112,217
Work-in-process 16,340 13,541
Finished goods 39,650 39,665
162,219 165,423
===================================================================================Raw materials and components amounting to Rs 1 .082 million (2002: Rs 0.636 million) were held by Pak Polymer (Private) Limited and Simla Plastic Works, who under an arrangement with the Company, manufacture plastic containers, lids and vent plugs for the Company.17. TRADE DEBTS � UNSECURED ===================================================================================
2003 2002
(Rupees �000)
===================================================================================
Considered good 76,627 80,401
Considered doubtful 9,336 5,336
85,963 85,737
Less: Provision for doubtful debts (9,336) (5,336)
76,627 80,401
===================================================================================The maximum amount due from associated undertakings at the end of any month during the year was Rs 0.964 million (2002: Rs 0.602 million).18. LOANS AND ADVANCES - CONSIDERED GOOD ===================================================================================
2003 2002
Note (Rupees �000)
===================================================================================
Loans due from - Executives 108 112
- Employees 14 114 16
Advances to
- Executives 83 -
- Employees 440 319
- Suppliers 405 923
1,150 1,370
===================================================================================The maximum aggregate amount of loans due from executives at the end of any month during the year was Rs 0.194 million (2002: Rs 0.276 million).19. SHORT-TERM PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLES ===================================================================================
2003 2002
(Rupees �000)
===================================================================================
Short-term prepayments 920 942
Prepaid gratuity - 194
Excise duty and sales tax recoverable 710 1,761
Due from associated undertakings:
- Chloride Pakistan (Pvt) Ltd 38 28
Other receivables - considered good 2,045 966
3,713 3,891
===================================================================================The maximum amount due from associated undertakings at the end of any month during the year was Rs 0.038 million (2002: Rs 0.028 million).20. CASH AND BANK BALANCES ===================================================================================
2003 2002
(Rupees �000)
===================================================================================
With banks in current accounts 9,656 13,571
Cheques in hand 21,876 22,551
Cash in hand 365 175
31,897 36,297
===================================================================================21. NET SALES===================================================================================
2003 2002
(Rupees �000)
===================================================================================
Gross sales (including excise duty Rs 20.981 million
and sales tax Rs 129.735 million; 2002: Excise duty
Rs 84.081 million and sales tax Rs 126.697 million) 935,680 906,516
Less: Discount on battery sales 44,968 74,298
890,712 832,218
===================================================================================22. COST OF GOODS SOLD===================================================================================
2003 2002
Note (Rupees �000)
===================================================================================
Raw and packing materials and components consumed 433,261 354,837
Spares consumed 5,316 5,111
Salaries, wages and benefits 22.1 52,583 46,069
Fuel, power and water 37,259 21,266
Insurance 2,646 2,961
Repairs and maintenance 19,196 10,443
Depreciation 11.2 11,670 11,272
Conveyance and transportation 1,310 1,339
Lease rentals 1,781 4,256
Others 2,750 9,606
134,511 112,323
Opening stock of work-in-process 13,541 13,236
Closing stock of work-in-process (16,340) (13,541)
Cost of goods manufactured 564,973 466,855
Opening stock of finished goods 39,665 44,210
Excise duty 20,981 80,773
Sales tax 129,735 126,697
755,354 718,535
Finished goods purchased 13,766 27,920
Closing stock of finished goods (39,650) (39,665)
729,470 706,790
===================================================================================22.1. STAFF RETIREMENT BENEFITSSalaries, wages and benefits include Rs 1.804 million (2002: Rs 1 .288 million) in respect of staff retirement benefits. 23. ADMINISTRATION AND SELLING EXPENSES ===================================================================================
2003 2002
Note (Rupees �000)
===================================================================================
Salaries, wages and benefits 23.1 25,398 24,304
Travelling, conveyance and entertainment 6,542 5,148
Rent, rates and taxes 1,654 1,593
Fuel and power 1,863 1,404
Insurance 1,200 1,179
Repairs and maintenance 2,101 1,745
Printing, stationery and supplies 1,071 1,087
Communication 2,619 2,660
Subscription 419 407
Advertising and sales promotion 12,257 8,941
Legal and professional 950 2,473
Carriage and forwarding expenses 15,105 13,711
Battery guarantee claims (including allowances
and discounts to dealers to meet claims) 19,047 15,512
Depreciation 11.2 2,348 2,175
Lease rentals 727 688
Provision for doubtful debts 4,000 -
Provision against slow moving spares 84 -
Others 1,253 863
98,638 83,890
===================================================================================23.1. STAFF RETIREMENT BENEFITSSalaries, wages and benefits include Rs 1 .286 million (2002: Rs 0.817 million) in respect of staff retirement benefits. 24. DEFINED BENEFIT PLAN - STAFF RETIREMENT GRATUITY The Company operates a funded gratuity scheme covering all employees. During the year the Company made no contributions to the fund. Actuarial valuation of the scheme is carried out at least once in every three years and the latest actuarial valuation of the gratuity fund was carried out as at March 31, 2003. The fair value of the scheme�s assets and the liabilities for past services of the employees at the latest valuation date were as follows: ===================================================================================
(Rupees �000)
===================================================================================
Present value of defined benefit obligation 20,360
Less: fair value of plan assets (20,941)
Surplus in plan assets (581)
Less: unrecognised net actuarial gain 1,412
Deficit 831
===================================================================================The following amounts have been charged in the profit and loss account during the current year in respect of this scheme:===================================================================================
(Rupees �000)
===================================================================================
Current service cost 985
Interest cost 2,143
Expected return on plan assets (2,103)
1,025
===================================================================================Projected Unit Credit Method using the following significant assumptions, was used for the valuation of the fund:=================================================================================== - Discount rate 6.00% per annum - Expected rate of increase in salary 5.00% per annum - Expected rate of return on plan assets 7.73% per annum ===================================================================================25. OTHER INCOME ===================================================================================
2003 2002
(Rupees �000)
===================================================================================
Interest income 64 106
Profit on disposal of fixed assets 1,573 1,455
Provisions no longer required written back - 485
Scrap sales 143 63
Others - 1,576
1,780 3,685
===================================================================================26. FINANCIAL CHARGES===================================================================================
2003 2002
Note (Rupees �000)
===================================================================================
Interest on Workers� Profit Participation Fund 9.1 20 -
Mark-up on
- Running finance 2,370 5,990
- Cash finance 4,041 4,392
- Import finance 1,419 2,573
- Redeemable capital 3,605 5,052
Bank charges 1,839 1,767
13,294 19,774
===================================================================================27. OTHER CHARGES===================================================================================
2003 2002
Note (Rupees �000)
===================================================================================
Auditors� remuneration 27.1 550 774
Workers� Profit Participation Fund 9.1 2,490 1,231
Workers� Welfare Fund 1,171 598
Others 780 52
4,991 2,655
===================================================================================27.1. AUDITORS� REMUNERATION===================================================================================
2003 2002
(Rupees �000)
===================================================================================
Audit fee 225 200
Tax advisory services 130 344
Special reports and certificates, audit of provident and
gratuity funds and advisory services 96 175
Out of pocket expenses 99 55
550 774
===================================================================================28. TAXATION===================================================================================
2003 2002
(Rupees �000)
===================================================================================
Current
- for the year 20,078 10,300
- for prior years - 3,225
Deferred (2,555) (730)
17,523 12,795
===================================================================================28.1. RELATIONSHIP BETWEEN TAX EXPENSES AND ACCOUNTING PROFIT===================================================================================
2003 2002
(Rupees �000)
===================================================================================
Accounting profit before tax 46,099
Tax rate 35%
Tax on accounting profit 16,135
Tax effect of timing differences relating to
- excess perquisites 1,024
- depreciation charged in the accounts on leasehold land 411
- others (47)
Tax expense for the current year 17,523
===================================================================================29. EARNINGS PER SHARE===================================================================================
2003 2002
===================================================================================
Profit after taxation 28,576 9,999
Number of shares
Weighted average ordinary shares in issue during
the year 5,405,737 5,405,737
(Rupees)
Earnings per share 5.29 1.85
===================================================================================30. REMUNERATION OF DIRECTORS AND EXECUTIVESThe aggregate amount charged in the financial statements for the year for remuneration, including all benefits, to the chief executive, directors and executives of the Company were as follows: ===================================================================================
2003 2002
Chief Directors Executives Chief Directors Executives
Executive Executive
(Rupees �000)
===================================================================================
Managerial
remuneration 761 1,379 7,805 1,079 1,530 7,179
Retirement
benefits - 161 906 205 734 -
Housing 303 477 2,940 485 551 2,571
Utilities 67 106 654 108 122 570
Medical
expenses 50 78 826 64 7 591
Leave passage/
leave encashment 28 - 198 40 - 226
Transport 40 80 786 - - 626
Number of persons
1,249 2,281 14,115 1,776 2,415 12,497
1 2 31 1 2 24
===================================================================================30.1. The chief executive, three directors (including one non-executive director) and four executives are provided with free use of Company maintained cars, residential telephones and certain items of household appliances in accordance with their entitlement.30.2. REMUNERATION TO OTHER DIRECTORS Aggregate amount charged in the accounts for fee to a director was Rs 500 (2002: Nil). 31. TRANSACTIONS WITH ASSOCIATED UNDERTAKINGS ===================================================================================
2003 2002
(Rupees �000)
===================================================================================
Sale of goods 3,772 988
Purchase of goods 14,791 24,048
Expenses charged to associated undertakings 557 598
Expenses charged by associated undertakings 70 76
===================================================================================31.1. Sales and purchase transactions with associated undertakings are carried out on commercial terms and conditions. Expenses are charged between associated undertakings on the basis of mutually agreed terms.32. PRODUCTION CAPACITY The actual production capacity of the battery plant cannot be determined as it depends on the proportion of different types of batteries produced which varies in relation to the consumer demand. The installed capacity of the chemical plant is 16,500 MT per annum while the actual production was according to demand requirements. 33. CASH GENERATED FROM OPERATIONS ===================================================================================
2003 2002
Note (Rupees �000)
===================================================================================
Profit before taxation 46,099 22,794
Adjustments for non cash charges and other items:
Depreciation 14,018 13,447
Profit on disposal of fixed assets (1,573) (1,455)
Interest income (64) (106)
Mark-up expenses 11,435 18,007
Provision for gratuity 1,025 (54)
Provision for doubtful debts 4,000 -
Provision for slow moving and obsolete spares 84 (485)
Working capital changes 33.1 10,464 10,844
85,488 62,992
===================================================================================33.1. WORKING CAPITAL CHANGES===================================================================================
2003 2002
(Rupees �000)
===================================================================================
Decrease/(increase) in current assets:
Spares 1,949 (1,381)
Stock-in-trade 3,204 (7,669)
Trade debts (226) 1,177
Loans and advances 220 (523)
Short-term prepayments, deposits and other receivables 167 (74)
5,314 (8,470)
Increase/(decrease) in current liabilities:
Creditors accrued and other liabilities 5,150 19,314
10,464 10,844
===================================================================================34. CASH AND CASH EQUIVALENTSCash and cash equivalents included in the cash flow statement comprise of the following balance sheet amounts: ===================================================================================
Note 2003 2002
(Rupees �000)
===================================================================================
Cash and bank balances 20 31,897 36,297
Short-term finances 9 (92,999) (90,885)
(61,102) (54,588)
=================================================================================== |