| Abbott Laboratories Pakistan Ltd - 2003 |
================================================================================= BALANCE SHEET AS AT NOVEMBER 30, 2003 ================================================================================= 2003 2002 Note (Rupees '000) ================================================================================= SHARE CAPITAL AND RESERVES Authorised capital 3 1,000,000 500,000 Issued, subscribed and paid-up capital 4 472,127 429,206 Reserves - capital 347,740 296,236 revenue 1,364,254 1,168,539 1,711,994 1,464,775 2,184,121 1,893,981 DEFERRED TAXATION 5 27,531 1,818 DEFERRED LIABILITY - Staff Gratuity 21 - 11,665 CURRENT LIABILITIES Short-term running finances utilised under mark-up arrangements 6 - 52,465 Creditors, accrued and other liabilities 7 604,781 513,745 Proposed dividend 141,638 128,762 746,419 694,972 CONTINGENCIES AND COMMITMENTS 8 2,958,071 2,602,436 FIXED ASSETS Operating assets 9 805,219 744,625 Capital work-in-progress 10 138,027 93,169 943,246 837,794 LONG-TERM LOANS AND ADVANCES 11 31,304 30,497 LONG-TERM DEPOSITS - Considered good 3,205 3,305 LONG-TERM PREPAYMENTS 600 1,000 CURRENT ASSETS Stores and spares 12 43,658 59,391 Stock-in-trade 13 757,948 825,268 Trade debts 14 97,057 76,839 Loans and advances 15 25,215 27,550 Trade deposits and short-term prepayments 16 76,569 88,821 Other receivables 17 44,773 124,785 Taxation recoverable 237,449 58,927 Cash and bank balances 18 697,047 468,259 1,979,716 1,729,840 2,958,071 2,602,436 ================================================================================= ================================================================================= PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED NOVEMBER 30, 2003 ================================================================================= 2003 2002 Note (Rupees '000) ================================================================================= Sales - net 19 4,277,322 4,004,210 Service fee for toll manufacturing 37,259 49,812 4,314,581 4,054,022 Cost of goods sold and services 20 2,632,614 2,592,018 Gross profit 1,681,967 1,462,004 Administration, selling and distribution 22 800,843 735,830 Operating profit 881,124 726,174 Other income 23 21,650 32,406 902,774 758,580 Financial charges 24 16,289 11,315 Other charges 25 68,665 58 618 Profit before taxation 817,820 688,647 Taxation 26 291,617 249,397 Profit after taxation 526,203 439,250 Unappropriated profit brought forward 4,117 931 Profit available for appropriation 530,320 440,181 Appropriations: Interim dividend at Rs 2.00 (2002: Rs 1.50) per share 94,425 64,381 Proposed final dividend at Rs 3.00 (2002: Rs 3.00) per share 141,638 128,762 Reserve for issue of bonus shares 94,425 42,921 Transfer to general reserve 199,000 200,000 529,488 436,064 Unappropriated profit carried forward 832 4,117 Earnings per share - basic and diluted 27 11.15 9.30 ================================================================================= ================================================================================= CASH FLOW STATEMENT FOR THE YEAR ENDED NOVEMBER 30, 2003 ================================================================================= 2003 2002 Note (Rupees '000) ================================================================================= CASH FLOWS FROM OPERATING ACTIVITIES Cash generated from operations 28 1,207,625 715,887 Staff gratuity paid (13,865) (590) Taxes paid (444,426) (196,318) Long-term loans and advances (807) (8,173) Long-term deposits 100 1,569 Long-term prepayments 400 (1,000) Net cash inflow from operating activities 749,027 511,375 CASH FLOWS FROM INVESTING ACTIVITIES Fixed capital expenditure (251,312) (231,051) Sale proceeds of fixed assets 13,459 13,621 Income received from investments 9,723 27,841 Net cash outflow on investing activities (228,130) (189,589) CASH FLOWS FROM FINANCING ACTIVITIES Financial charges paid (16,577) (12,348) Dividends paid (223,067) (300,941) Net cash outflow on financing activities (239,644) (313,289) Net increase in cash and cash equivalents 281,253 8,497 Cash and cash equivalents at the beginning of the year 415,794 407,297 Cash and cash equivalents at the beginning of the year 29 697,047 415,794 =================================================================================NOTES TO AND FORMING PART TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED NOVEMBER 30, 2003 3. AUTHORISED SHARE CAPITAL
===============================================================================
2003 2002 2003 2002
Number of shares (Rupees '000)
===============================================================================
100,000,00050,000,000 Ordinary shares of Rs 10 each 1,000,000 500,000
===============================================================================4. ISSUED, SUBSCRIBED AND PAID-UP CAPITAL===============================================================================
2003 2002 2003 2002
Number of shares (Rupees '000)
===============================================================================
5,832,196 5,832,196 Ordinary shares of Rs. 10
each issued as fully paid 58,322 58,322
for cash
18,479,640 18,479,640 Ordinary shares of Rs. 10
each issued as fully paid 184,796 184,796
for consideration other
than cash
22,900,887 18,608,821 Ordinary shares of Rs. 10
each issued as fully paid 229,009 186,088
bonus shares
47,212,723 42,920,657 472,127 429,206
===============================================================================Abbott Laboratories, USA, Abbott Laboratories (Pacific) Limited and Abbott Equity Holdings Limited, U.K. held 23,087,203, 321,559 and 13,367,596 shares of Rs 10 each respectively as at November 30, 2003 (2002: 20,988,367, 292,327 and 12,152,360 shares respectively).5. DEFERRED TAXATION =================================================================================
2003 2002
(Rupees '000)
=================================================================================
Deferred tax liability arising due to:
Accelerated tax depreciation allowance 38,759 3,731
Pension funds - net 2,124 14,040
40,883 17,771
Deferred tax asset arising due to:
Miscellaneous provisions (13,352) (15,953)
27,531 1,818
=================================================================================6. SHORT-TERM RUNNING FINANCE UTILISED=================================================================================
2003 2002
Note (Rupees '000)
=================================================================================
UNDER MARK-UP ARRANGEMENTS - Secured 6.1 - 52,465
=================================================================================6.1. The facilities for short-term running finances under mark-up arrangements available from various banks amounted to Rs 468 million at November 30, 2003 (2002: Rs 623 million). The facilities carry mark-up at rates ranging between Re 0.10958 to Re 0.411(2002: Re 0.219 to Re 0.411) per Rs 1,000 per day and the purchase prices are payable on various dates by October 2004. The facilities are secured by pari-passu charge against hypothecation of stock-in-trade, stores and spares and book debts. 6.2. The facility for letters of credit and guarantees as at November 30, 2003 amounted to Rs 1,266 million (2002: Rs 1,318 million) out of which an amount of Rs 1,069 million was unutilised at the year end (2002: Rs 1,171 million). 6.3. The facility for post shipment export refinance as at November 30, 2003 amounted to Rs 110 million (2002: Rs 25 million). This facility is secured against confirmed letters of credit. 7. CREDITORS, ACCRUED AND OTHER LIABILITIES =================================================================================
2003 2002
Note (Rupees '000)
=================================================================================
Creditors 41,325 46,344
Accrued liabilities 188,110 195,103
Bills payable 211,772 124,200
Advances from customers 12,483 17,603
Mark-up on short-term running finances 3 291
Sales tax payable 9,773 11,985
Workers' Profits Participation Fund 7.1 43,911 37,001
Central Research Fund 11,342 10,021
Material on loan 2,370 4,928
Workers' Welfare Fund 54,406 37,928
Payable to ALPL Pension Fund 21 - 1,846
Payable to KPL Management Staff Gratuity 21 - 1,717
Payable to associated undertakings 24,739 21,745
Unclaimed dividends 2,955 2,835
Others 1,592 198
604,781 513,745
=================================================================================7.1. WORKERS' PROFITS PARTICIPATION FUND=================================================================================
2003 2002
Note (Rupees '000)
=================================================================================
Balance at the beginning of the year 37,001 24,343
Allocation for the year 25 43,911 37,001
80,912 61,344
Interest on funds utilised in the company 24 790 388
81,702 61,732
Additional provision/(reversal) of prior years short/
(excess) provisions 15 (228)
Paid to the Fund/deposited with the Government (37,806) (24,503)
43,911 37,001
=================================================================================8. CONTINGENCIES AND COMMITMENTSCONTINGENCIES (a) The Deputy Commissioner of Income Tax (DCIT) had increased the taxable income of the company for the accounting periods 1982 to 2002 on account of excess amounts allegedly paid for import of materials resulting in additional tax liability amounting to Rs 354.377 million. The High Court of Sindh through its order dated October 13, 1999 has decided the matter in favour of the company in respect of the assessment year 1983-84 due to which the above additional tax liability has been reduced by Rs 4.624 million. The disallowances in respect of a number of assessment years have been set aside by various appellate authorities for re-assessment while the company's appeals in respect of the remaining assessment years are currently pending. The management is confident that eventual outcome of the matter will be in favour of the company and, accordingly, no provision has been made in these accounts in respect of the above mentioned net tax demand of Rs 349.753 million raised by the authorities. (b) The company has given bank guarantees of Rs 64.964 million (2002: Rs 21.266 million) to the Customs Department and other institutions. Guarantees given to the Customs Department will be released on consumption of materials in pharmaceutical products as certified by the Drug Controller. COMMITMENTS Commitments for capital expenditure as at November 30, 2003 aggregated to approximately Rs 69.184 million (2002: Rs 50.403 million). 9. OPERATING ASSETS 9.1. THE FOLLOWING IS A STATEMENT OF OPERATING ASSETS: ===========================================================================================================================================
Cost as at Additions/ Cost as at Accumulated Depreciation Accumulated Written down Annual
December 1, (disposals)/ November 30, depreciation as charge for the depreciation as a value as at rate of
at December 1, year/(accumulated November 30, November 30, depreciation
2002 (adjustments) 2003 2002 depreciation on 2003 2003 %
disposals and
adjustments)
(Rupees '000)
-------------------------------------------------------------------------------------------------------------------------------------------
Tangible
Freehold land 148 - 148 - - - 148 -
Leasehold land 2,718 - 2,718 513 29 542 2,176 1.06
Buildings on Freehold la 149,241 6,570 155,811 87,794 15,203 102,997 52,814 5-10
Buildings on Leasehold l 59,508 - 59,508 44,015 2,691 46,706 12,802 10
Plant and Machinery 922,051 128,765 1,047,739 456,498 65,100 518,546 529,193 10-20
(3,077) (3,052)
Furniture, fixtures and
office equipment 78,982 1,483 80,465 54,404 2,610 57,014 23,451 10-25
Vehicles 123,361 33,173 132,118 54,445 18,834 55,170 76,948 20-25
(24,416) (18,109)
Computers 98,234 14,819 113,053 71,993 17,138 89,131 23,922 20-33
Demonstration 134,842 22,930 156,241 54,798 17,923 72,476 83,765 12.5-33
equipment (Note 9.2) - -
(1,531) (245)
1,569,085 207,740 1,747,801 824,460 139,528 942,582 805,219
(27,493) (21,161)
(1,531) (245)
Intangible
Computer Software 2,068 - - 2,068 - - -
(2,068) - - (2,068) - -
2003 1,571,153 207,740 1,747,801 826,528 139,528 942,582 805,219
(29,561) (23,229)
(1,531) (245)
2002 1,402,441 208,979 1,571,153 737,784 118,212 826,528 744,625
(40,267) (29,468)
- -
===========================================================================================================================================9.2. Demonstration equipment of the Company is in the possession of various hospitals and clinics.9.3. The depreciation charge for the year has been allocated as follows: =================================================================================
2003 2002
Note (Rupees '000)
=================================================================================
Cost of goods sold and services 20 84,814 76,250
Administration, selling and distribution 22 54,714 41,962
139,528 118,212
=================================================================================9.4. DETAILS OF THE ITEMS OF FIXED ASSETS DISPOSED OFF:===============================================================================================================
Accumulated Book Sale Mode of
Description Cost Depreciation value Proceeds disposals Particulars of purchaser
(Rupees '000)
---------------------------------------------------------------------------------------------------------------
Plant and machinery 2 2 - - Written off
24 24 - - Written off
53 53 - - Written off
16 16 - - Written off
38 38 - - Written off
519 519 - - Written off
42 42 - - Written off
35 31 4 - Written off
204 183 21 - Written off
340 340 - - Written off
12 12 - - Written off
1,545 1,545 - - Written off
247 247 - - Written off
3,077 3,052 25 - Written off
Vehicles 779 499 280 403 Negotiation Mr. Malik Saadatullah Employee
885 708 177 350 Negotiation Mr. Mohammad Ishaque Employee
534 427 107 288 Negotiation Mr. Tariq Hasan Employee
594 476 118 383 Negotiation Mr. Najmuddin Ghouri Employee
962 770 192 601 Negotiation Mr Mirza Amir Beg Employee
318 254 64 65 Negotiation Mr Abdul Khaliq Employee
7,854 6,284 1,570 3,800 Negotiation Jehangir Siddiqui &
CompanyLimited Karachi
779 499 280 403 Negotiation Miss Seema Khan Employee
739 591 148 403 Negotiation Mr Mirza Naeem Akhtar Employee
839 671 168 485 Negotiation Mr Ali Shabbir Ex-Employee
992 794 198 383 Negotiation Mr Ishaque Hashmi Ex-Employee
719 575 144 403 Negotiation Miss Thresa Tansir Ex-Employee
739 591 148 403 Negotiation Mr Mumtaz Ali Khan Employee
1,058 846 212 363 Negotiation Mr Haseeb ur Rehman Employee
989 475 514 725 Insurance claim Alpha Insurance Company Karachi
869 417 452 675 Insurance claim Alpha Insurance Company Karachi
719 575 144 404 Negotiation Mr Altaf Hameed Employee
779 499 280 461 Negotiation Mr Mirza Izhar Husain Employee
789 505 284 480 Negotiation Mr Ziauddin Asif Ex-Employee
1,451 1,159 292 1,030 Negotiation Mr Muhammad Iqbal Employee
1,029 494 535 951 Insurance claim Alpha Insurance Company Karachi
24,416 18,109 6,307 13,459
Computer software 2,068 2,068 - - Written off
29,561 23,229 6,332 13,459
===============================================================================================================10. CAPITAL WORK-IN-PROGRESS =================================================================================
2003 2002
(Rupees '000)
=================================================================================
Advance against land acquisition 19,716 -
Civil works 17,099 -
Plant and machinery 89,694 76,810
Demonstration equipment 4,403 8,232
Advances to suppliers 3,287 4,675
Others 3,828 3,452
138,027 93,169
=================================================================================11. LONG-TERM LOANS AND ADVANCES=================================================================================
2003 2002
NOTE (Rupees '000)
=================================================================================
Long-term loans
Considered good
Due from:
-Director 198 292
-Executives 23,868 15,609
-Employees 23,690 32,644
47,756 48,545
Less: Recoverable within one year
-Director 156 125
-Executives 13,576 3,567
-Employees 2,720 14,356
15 16,452 18,048
31,304 30,497
Long-term advances
Considered doubtful - 7
31,304 30,504
Less: Provision for doubtful advances - 7
31,304 30,497
=================================================================================11.1. Loans given to executives and employees are in accordance with the Company's policy.These loans are interest free and are repayable in equal monthly installments within a maximum period of four years. The loans for purchase of vehicles are secured by way of registration of vehicles purchased in the name of the Company. 11.2. The maximum aggregate amount due from the directors and the executives at the end of any month during the year were Rs 0.427 million and Rs 23.868 million (2002: Rs 0.330 million and Rs 15.609 million) respectively. 12. STORES AND SPARES =================================================================================
2003 2002
(Rupees '000)
=================================================================================
Stores 35,224 44,309
Spares 24,416 26,252
59,640 70,561
Less: Provision for slow moving and obsolete items 15,982 11,170
43,658 59,391
=================================================================================13. STOCK-IN-TRADE=================================================================================
2003 2002
(Rupees '000)
=================================================================================
Raw and packing materials [including stock-in-transit
Rs. 88.071 million (2002: Rs. 102.431 million)] 338,757 363,535
Work-in-process 149,692 174,337
Finished goods [including stock-in-transit
Rs. 39.311 million (2002: Rs. 37.715 million)] 286,468 299,314
774,917 837,186
Less: Provision for slow-moving and obsolete items 16,969 11,918
757,948 825,268
=================================================================================14. TRADE DEBTS=================================================================================
2003 2002
(Rupees '000)
=================================================================================
Considered good:
Secured
Due from Abbott Group Companies 2,794 2,717
Others 19,044 20,331
21,838 23,048
Unsecured 75,219 53,791
97,057 76,839
Considered doubtful:
Unsecured 9,196 7,280
106,253 84,119
Less: Provision for doubtful debts 9,196 7,280
97,057 76,839
=================================================================================14.1. The maximum aggregate amount due from Abbott Group Companies at the end of any month during the year was Rs. 4.208 million (2002: Rs. 3.646 million).15. LOANS AND ADVANCES - CONSIDERED GOOD =================================================================================
2003 2002
Note (Rupees '000)
=================================================================================
Current portion of long-term loan 11 16,452 18,048
Advances to:
Chief Executive 250 8
Executives 724 1,043
Employees 20 38
994 1,089
Suppliers 7,769 8,413
8,763 9,502
25,215 27,550
=================================================================================15.1. The maximum aggregate amounts of advances due from the chief executive, directors and executives at the end of any month during the year were Rs 582 thousand, Rs 926 thousand and Rs 6,994 thousand (2002: Rs 313 thousand, Rs 117 thousand and Rs 4,287 thousand) respectively.16. TRADE DEPOSITS AND SHORT-TERM PREPAYMENTS =================================================================================
2003 2002
(Rupees '000)
=================================================================================
Considered good
Trade deposits 20,301 9,391
Balances with statutory authorities 135 1,050
20,436 10,441
Prepayments 56,133 78,380
76,569 88,821
Considered doubtful
Trade deposits 825 500
77,394 89,321
Less: Provision for doubtful trade deposits 825 500
76,569 88,821
=================================================================================17. OTHER RECEIVABLES=================================================================================
2003 2002
Note (Rupees '000)
=================================================================================
Considered good
Due from Abbott Group Companies 7,414 11,895
Material on loan 678 4,010
Insurance claim receivable 4,259 3,007
Service fee for toll manufacturing 3,433 4,705
Accrued interest 2,094 26
Sales tax recoverable - 37,416
ALPL pension fund 21 6,974 53,926
Others 19,921 9,800
44,773 124,785
Considered doubtful 876 576
45,649 125,361
Less: Provision for doubtful receivables 876 576
44,773 124,785
=================================================================================17.1. The maximum aggregate amount due from Abbott Group Companies at the end of any month during the year was Rs 9.917 million (2002: Rs. 11.895 million).18. CASH AND BANK BALANCES =================================================================================
2003 2002
(Rupees '000)
=================================================================================
With banks
Savings accounts:
Local currency 625,798 310,181
Foreign currency 5,315 449
631,113 310,630
Current accounts:
Foreign currency - 306
Local currency 20,169 86,288
20,169 86,594
651,282 397,224
In hand
Local currency - -
Foreign currency 1,343 327
1,343 327
Cheques and drafts in transit 44,422 70,708
697,047 468,259
=================================================================================19. SALES � NET=================================================================================
2003 2002
(Rupees '000)
=================================================================================
Local 4,309,073 4,164,177
Export - to associated undertakings 6,940 9,054
-to others 82,613 100,920
89,553 109,974
4,398,626 4,274,151
Less:
Sales return and discount 66,905 42,534
Sales tax and excise duty 54,399 227,407
121,304 269,941
4,277,322 4,004,210
=================================================================================20. COST OF GOODS SOLD AND SERVICES=================================================================================
2003 2002
Note (Rupees '000)
=================================================================================
Opening work-in-process 174,337 181,248
Raw and packing materials consumed 1,511,275 1,637,067
1,685,612 1,818,315
Manufacturing expenses:
Salaries, wages and staff welfare 20.1 384,651 319,816
Stores and spares consumed 37,232 32,473
Fuel and power 55,325 48,586
Depreciation 9.3 84,814 76,250
Repairs and maintenance 34,459 48,150
Technical fee 53,166 50,617
Insurance 4,329 3,942
Printing and stationery 2,944 2,502
Travelling and entertainment 3,111 1,420
Rent, rates and taxes 4,737 1,592
Laboratory testing supplies 13,350 15,266
Computer expenses 14,616 12,020
Postage, telephone and telegram 4,579 3,498
Others 20.2 17,085 11,528
714,398 627,660
2,400,010 2,445,975
Closing work-in-process (149,692) (174,337)
Cost of goods manufactured and services 2,250,318 2,271,638
Finished goods
Opening stock 299,314 331,053
Purchases 369,450 288,641
2,919,082 2,891,332
Closing stock (286,468) (299,314)
2,632,614 2,592,018
=================================================================================20.1. Salaries, wages and staff welfare include Rs. 48.267 million (2002: Rs. 22.346 million) in respect of staff retirement benefits.20.2. DETAILS OF OTHER EXPENSES =================================================================================
2003 2002
(Rupees '000)
=================================================================================
Other fees and purchased services 9,213 8,863
Product development expenses - 10
Recruitment and training expenses 191 253
Membership and subscription 40 121
Conference expenses 1,092 502
Miscellaneous expenses 6,549 1,779
17,085 11,528
=================================================================================21. STAFF RETIREMENT BENEFITSAs mentioned in note 2.13, the company operates funded pension scheme for its employees. Contributions are made to scheme based on actuarial recommendations. The latest valuation was carried out as at November 30, 2003. 21.1. The fair value of the schemes' assets and liabilities for past services of the employees as at November 30, 2003 were as follows: ============================================================================================================
KPL KPL
KPL KPL Non- KPL KPL Non-
Manage- Manage- Manage- Manage- Manage- Manage-
ALPL meat ment ment ALPL ment ment ment
Pension Pension Gratuity Unfunded Pension Pension Gratuity Unfunded
Fund Fund Fund Gratuity Fund Fund Fund Gratuity
2003 2002
(Rupees '000)
============================================================================================================
Present value of defined
benefit obligation 807,166 - - - 471,330 33,949 17,865 11,665
Less: fair value of plan assets 814,140 - - - 469,484 87,875 16,148 -
Deficit/(Surplus) (6,974) - - - 1,846 (53,926) 1,717 11,665
============================================================================================================21.2. The following amounts were charged in the profit and loss account during the year in respect of these schemes:===========================================================================================================
KPL KPL
KPL KPL Non- KPL KPL Non-
Manage- Manage- Manage- Manage- Manage- Manage-
ALPL meat ment ment ALPL ment ment ment
Pension Pension Gratuity Unfunded Pension Pension Gratuity Unfunded
Fund Fund Fund Gratuity Fund Fund Fund Gratuity
2003 2002
(Rupees '000)
===========================================================================================================
Current service cost 39,885 - - - 19,686 3,110 1,102 629
Interest cost 44,288 - - - 49,046 3,692 2,006 1,305
Expected return on plan asset (59,998) - - - (49,543) (10,126) (1,892) -
Settlement cost - - - 2,200 - - - -
24,175 - - 2,200 19,189 (3,324) 1,216 1,934
Actuarial (gains)/losses
Recognized 48,490 - - - - - - -
Total 72,665 - - 2,200 19,189 (3,324) 1,216 1,934
===========================================================================================================21.3. The following is a reconciliation of net (assets)/liabilities as at the balance sheet date and the amounts paid to the staff retirement benefits funds/the retiring employees during the year:=============================================================================================================
KPL KPL
KPL KPL Non- KPL KPL Non-
Manage- Manage- Manage- Manage- Manage- Manage-
ALPL ment ment ment ALPL ment ment ment
Pension Pension Gratuity Unfunded Pension Pension Gratuity Unfunded
Fund Fund Fund Gratuity Fund Fund Fund Gratuity
2003 2002
(Rupees '000)
=============================================================================================================
Opening net liability/(assets) 1,846 (53,926) 1,717 11,665 8,335 (48,451) 1,227 10,321
Transfer on merger (52,209) 53,926 (1,717) - - - - -
Cost recognised 72,665 - - 2,200 19,189 (3,324) 1,216 1,934
Payments made (29,276) - - (13,865) (25,678) (2,151) (726) (590)
Closing net liability/(asset) (6,974) - - - 1,846 (53,926) 1,717 11,665
=============================================================================================================21.4. Projected Unit Credit method with the following significant assumptions was used for the valuations of these schemes:=======================================================================
ALPL Pension Funds KPL Funds
2003 2002 2003 2002
Percent per annum
=======================================================================
Discount rate/interest rate 8.0 12.0 - 12.0
Expected rate of increase in salaries 5.9 9.9 - 9.9
Expected rate of increase in pension - 3.2 - 3.2
=======================================================================21.5. The investments made by the staff retirement funds operated by the company as per their last audited accounts is as follows:================================================================
Rs '000
================================================================
ALPL Pension Fund 329,300
ALPL Provident Fund 107,573
KPL Management Pension Fund* 54,516
KPL Provident Fund* 55,089
KPL Management Gratuity Fund* 7,720
================================================================* With effect from December 01, 2002, investments of KPL Management Pension Fund and KPL Management Gratuity Fund have been transferred to ALPL Pension Fund and investments of KPL Provident Fund have been transferred to ALPL Provident Fund as an outcome of merger of the funds.22. ADMINISTRATION, SELLING AND DISTRIBUTION EXPENSES =================================================================================
2003 2002
Note (Rupees '000)
=================================================================================
Salaries, wages, allowances
and staff welfare 22.1 325,259 304,996
Rent, rates and taxes 7,091 7,225
Repairs and maintenance 8,890 7,829
Royalty 7,650 5,573
Insurance 7,177 6,774
Depreciation 9.3 54,714 41,962
Auditors' remuneration 22.2 1,444 854
Legal, professional and other services 7,203 6,379
Postage, telephone and telegram 14,804 18,268
Printing and stationery 6,563 7,590
Travelling, conveyance and entertainment 81,969 71,303
Advertising, samples and sales promotion 191,371 168,064
Forwarding expenses 33,901 31,147
Donations 22.3 1,655 1,386
Electricity 5,706 5,698
Computer expenses 13,604 14,527
Training and development expenses 9,586 11,285
Provision for doubtful trade debts 1,916 2,595
Packing and miscellaneous supplies 8,153 6,687
Others 22.4 30,872 35,186
819,528 755,328
Less: Reimbursement from an associated undertaking 18,685 19,498
800,843 735,830
=================================================================================22.1. Salaries, wages, allowances and staff welfare include Rs 50.635 million (2002: Rs 24.477 million) in respect of staff retirement benefits. Payments made in respect of voluntary retirement scheme during the current year Nil. (2002: Rs 29.470 million)22.2. AUDITORS' REMUNERATION =================================================================================
2003 2002
(Rupees '000)
=================================================================================
Statutory audit 700 600
Fee for tax and other advisory services 425 -
Special certifications and audit of staff retirement 199 139
Out of pocket expenses 120 115
1,444 854
=================================================================================22.3. Donations include an amount of Rs 115,000 paid to Mary Adelaide Leprosy Centre in which the spouse of Mr. Kamran Y. Mirza (Chief Executive) is a member of the management committee.22.4. DETAILS OF OTHER EXPENSES =================================================================================
2003 2002
(Rupees '000)
=================================================================================
Other fees and purchased services 11,393 9,886
Security expenses 4,116 3,248
Membership and subscription 1,672 3,634
Air conditioning expenses 5,681 7,502
Housekeeping expenses 2,952 2,341
Building maintenance expenses 1,897 1,509
Tax advisory services - 600
Water charges 330 342
Purchased gas 119 105
Miscellaneous expenses 2,712 6,019
30,872 35,186
=================================================================================22.5. Administration, selling and distribution expenses include Rs Nil (2002: Rs 8.855 million) in respect of legal integration expenses.23. OTHER INCOME =================================================================================
2003 2002
Note (Rupees '000)
=================================================================================
Gain on disposal of fixed assets 7,127 2,822
Income on investment and deposits 23.1 11,791 26,229
Scrap sales 2,154 2,458
Others 578 897
21,650 32,406
=================================================================================23.1. Income on investment and deposits include an amount of Rs. 4.165 million (2002: Rs 3.760 million) on account of interest income earned from an associated undertaking @ 15% of half of the written down value of assets deployed by the company on their behalf in the company's diagnostic division in Pakistan.24. FINANCIAL CHARGES =================================================================================
2003 2002
(Rupees '000)
=================================================================================
Mark-up on short-term running finances
utilised under mark-up arrangements 424 5,077
Bank charges 2,219 2,975
Interest on Workers' Profits Participation Fund 790 388
Exchange loss 12,856 2,875
16,289 11,315
=================================================================================25. OTHER CHARGES=================================================================================
2003 2002
(Rupees '000)
=================================================================================
Workers' Profits Participation Fund 43,911 37,001
Workers' Welfare Fund 16,493 14,664
Central Research Fund 8,261 6,953
68,665 58,618
=================================================================================26. TAXATION=================================================================================
2003 2002
(Rupees '000)
=================================================================================
Current - for the year 281,615 252,484
for prior years (15,711) 5,595
265,904 258,079
Deferred 25,713 (8,682)
291,617 249,397
=================================================================================26.1. RELATIONSHIP BETWEEN TAX EXPENSE AND ACCOUNTING PROFIT================================================================
2003
(Rupees '000)
================================================================
Accounting profit before taxation 817,820
Tax rate 35%
Tax on accounting profit 286,237
Tax for prior years (15,711)
Tax effect of:
-Expenses that are not deductible in determining taxable
-Profit 10,975
-Applying lower tax rates to certain income (15,431)
-Deferred taxation 25,713
-Others items (166)
291,617
================================================================27. EARNINGS PER SHARE - BASIC AND DILUTED=================================================================================
2003 2002
(Rupees '000)
=================================================================================
Profit for the year after taxation 526,203 439,250
Number of shares
Average ordinary shares in issue during the year 47,212,723 47,212,723
Earnings per share 11.15 9.30
=================================================================================28. CASH GENERATED FROM OPERATIONS=================================================================================
2003 2002
Note (Rupees '000)
=================================================================================
Profit before taxation 817,820 688,647
Depreciation 139,528 118,212
Gain on disposal of fixed assets (7,127) (2,822)
Income on investments and deposits (11,791) (26,229)
Provision for staff gratuity 2,200 1,934
Financial charges 16,289 11,315
Working capital changes 28.1 250,706 (75,170)
1,207,625 715,887
=================================================================================28.1. WORKING CAPITAL CHANGES=================================================================================
2003 2002
(Rupees '000)
=================================================================================
(Increase)/decrease in current assets
Stores and spare parts 15,733 2,145
Stock in trade 67,320 (11,262)
Trade debts (20,218) 859
Loans and advances - net 2,335 (7,958)
Trade deposits and short-term prepayments 12,252 (29,938)
Other receivables - net 82,080 (41,655)
159,502 (87,809)
Increase/(decrease) in current liabilities
Creditors, accrued and other liabilities - net 91,204 12,639
250,706 (75,170)
=================================================================================29. CASH AND CASH EQUIVALENTSCash and cash equivalents comprise of the following items as included in the balance sheet: =================================================================================
2003 2002
(Rupees '000)
=================================================================================
Cash and bank balances 697,047 468,259
Short-term running finances utilised
under mark-up arrangements - (52,465)
697,047 415,794
================================================================================= |