| Shezan International Ltd - 2004 |
===================================================================================================== BALANCE SHEET AS AT JUNE 30, 2004 ===================================================================================================== Notes 2004 2003 2003 (Rupees in thousands) Consolidated ===================================================================================================== NON-CURRENT ASSETS Tangible fixed assets Operating fixed assets 5 117,950 66,745 98,022 Capital work in progress 6 25,574 23,747 23,747 Investments Subsidiary 7.1 - 20,000 - Associate 7.2 8,500 - 8,500 Available for sale 7.3 2,650 1,650 1,650 11,150 21,650 10,150 Long term deposits 8 2,334 4,160 4,381 157,008 116,302 136,300 CURRENT ASSETS Stores and spares 9 1,089 796 1,104 Stock in trade 10 370,756 214,560 285,987 Trade debts 11 24,155 51,952 55,860 Advances, deposits, prepayments and other receivables 12 58,321 48,175 61,007 Cash and bank balances 13 48,659 17,971 71,635 502,980 333,454 475,593 LESS: CURRENT LIABILITIES Short term running finance 14 10,000 20,867 20,867 Current maturity of obligations under finance lease 18 21,597 11,494 12,549 Creditors, accrued and other liabilities 15 150,100 146,343 165,087 Proposed dividend 16 37,500 27,500 27,500 Taxation 35,000 10,000 19,000 254,197 216,204 245,003 WORKING CAPITAL 248,783 117,250 230,590 TOTAL CAPITAL EMPLOYED 405,791 233,552 366,890 NON-CURRENT LIABILITIES Deferred taxation 17 6,107 3,310 2,984 Obligations underfinance lease 18 24,277 18,018 18,828 30,384 21,328 21,812 NET CAPITAL EMPLOYED 375,407 212,224 345,078 REPRESENTED BY: SHARE CAPITAL AND RESERVES Share capital 19 50,000 50,000 50,000 Capital reserve - share premium account 5,000 - 5,000 General reserve 315,000 155,000 284,000 Unappropriated profits 5,407 7,224 6,078 375,407 212,224 345,078 CONTINGENCIES AND COMMITMENTS 20 ===================================================================================================== ===================================================================================================== PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2004 ===================================================================================================== Notes 2004 2003 2003 (Rupees in thousands) Consolidated ===================================================================================================== Sales 21 1,096,586 833,991 970,439 Cost of sales 22 772,217 650,198 738,207 Gross profit 324,369 183,793 232,232 Administrative and general expenses 23 45,909 32,038 37,592 Selling and distribution expenses 24 159,466 100,832 118,832 205,375 132,870 156,424 Operating profit 118,994 50,923 75,808 Other income 25 8,740 24,401 6,175 127,734 75,324 81,983 Financial charges 26 5,340 3,019 3,733 Other expenses and provisions 27 29,478 19,538 23,195 34,818 22,557 26,928 Profit before taxation 92,916 52,767 55,055 Taxation 28 26,788 11,359 21,721 Profit after taxation 66,128 41,408 33,334 Unappropriated profits brought forward 7,224 3,316 4,244 Transfer from subsidiary due to scheme of mergermalgamation 555 - - 7,779 3,316 4,244 Profit available for appropriation 73,907 44,724 37,578 Appropriations: Transfer to General reserve 31,000 10,000 4,000 Proposed dividend @ Rs. 7/50 per share (2003: @ Rs. 5/50 per share) 37,500 27,500 27,500 68,500 37,500 31,500 Unappropriated profits carried forward 5,407 7,224 6,078 Earnings per share in Rupees - Basic 29 13.23 8.28 6.67 ===================================================================================================== =====================================================================================================
CASH FLOW STATEMENT FOR THE YEAR ENDED JUNE 30,2004
=====================================================================================================
2004 2003 2003
(Rupees in thousands)
Consolidated
=====================================================================================================
Cash flow from operating activities
Funds provided from operations:
Profit before taxation 92,916 52,767 55,055
Adjustments for:
Depreciation 18,682 10,760 15,441
Interest/mark- up 4,153 2,276 2,663
Profit on bank deposits (378) (218) (1,192)
Dividend income (220) (20,125) (125)
Provision for doubtful debts 631
Gain on remeasurement of investment - Available for Sale (1,000) (1,025) (1,025)
Deterioration in value of shells, pallets and barrels 6,982 2,790 4,779
Gain on disposal of operating fixed assets (2,885) (688) (688)
25,965 (6,230) 19,853
Operating profit before working capital changes 118,881 46,537 74,908
(Increase)/decrease in current assets:
Stores and spares 15 224 106
Stock in trade (90,050) (17,359) (33,489)
Trade debts 31,074 (20,328) (19,300)
Advances, deposits, prepayments and other receivables 6,865 (11,972) (8,084)
(52,096) (49,435) (60,767)
Increase/(decrease) in current liabilities:
Short term running finance (10,867) 20,867 20,867
Creditors, accrued and other liabilities (14,899) 26,990 51,748
(25,766) 47,857 72,615
Cash generated from operations: 41,019 44,959 86,756
Interest/mark-up paid (4,267) (2,157) (2,544)
Profit on bank deposits 727 318 1,733
Income tax paid (12,578) (23,642) (34,949)
Net cash flow from operating activities 24,901 19,478 50,996
Cash flow from investing activities
Purchase of operating fixed assets (1,829) (4,129) (4,974)
Capital work in progress (4,070) (3,767) (3,720)
Sale proceeds from disposal of operating fixed assets 4,974 1,083 1,083
Dividend received 220 20,162 162
Long term deposits 2,427 (1,783) (1,958)
Net cash generated from/(used in) investing activities 1,722 11,566 (9,407)
Cash flow from financing activities
Repayment of obligations under finance lease (22,125) (10,637) (12,311)
Dividend paid (27,474) (29,986) (29,986)
Net cash used in financing activities (49,599) (40,623) (42,297)
Net decrease in cash and cash equivalents (22,976) (9,579) (708)
Cash and cash equivalents at the beginning of the year 17,971 27,550 72,343
Cash and cash equivalents transferred from
subsidiary due to scheme of mergermalgamation 53,664 - -
Cash and cash equivalents at the end of the year -A 48,659 17,971 71,635
=====================================================================================================A- Cash and cash equivalents includes cash and bank balances as stated in Note 13.=======================================================================================================
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED JUNE 30,2004
=======================================================================================================
Capital Reserve-
Share General Unappropriated Share Premium
Capital Reserve Profits Account Total
(Rupees in thousands)
=======================================================================================================
Balance as at July 0l, 2002 50,000 145,000 3,316 - 198,316
Profit after taxation for the year
ended June 30, 2003 - - 41,408 - 41,408
Transfer to General reserve - 10,000 (10,000) - -
Dividend @ Rs. 5/50 per share - - (27,500) - (27,500)
Balance as at June 30, 2003 50,000 155,000 7,224 - 212,224
Transfer from subsidiary due to
scheme of mergermalgamation - 129,000 555 5,000 134,555
Profit after taxation for the year
ended June 30, 2004 - - 66,128 - 66,128
Transfer to General reserve - 31,000 (31,000) - -
Proposed dividend @ Rs. 7/50 per share - - (37,500) - (37,500)
Balance as at June 30, 2004 50,000 315,000 5,407 5,000 375,407
=======================================================================================================NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 20041. THE COMPANY AND ITS OPERATIONS The Company is a Public Limited Company incorporated in Pakistan and is listed on Lahore and Karachi Stock Exchanges. The registered office of the company is situated at 56-Bund Road, Lahore, Pakistan. It is engaged in the manufacturing, trading and sale of juices, pickles, jams, ketchups etc., based upon or derived from fresh fruits and vegetables. Shezan International Limited owned 44.88% ordinary shares in a Private Limited company namely Hattar Food Products (Private) Limited, which has not commenced its commercial operations so far. The principal business activities of the associated undertaking will be to process food products. 2. MERGER/AMALGAMATION OF HATTAR FRUIT PRODUCTS LIMITED Effective July 01, 2003, "Hattar Fruit Products Limited" (HFPL), a company incorporated under the Companies Ordinance, 1984 and a wholly owned subsidiary has merged with the company in accordance with the scheme of arrangement for mergermalgamation between Shezan International Limited" (SIL) and HFPL, approved by the shareholders in their extra ordinary general meeting held on November 15, 2003 and duly approved by the Honourable High Court, Lahore vide order No. C.O. 65-2003, on December 02, 2003. This has been accounted for in accordance with the scheme, which stated that the values of all assets and liabilities of HFPL as at June 30, 2003 shall be accounted for in the books of SIL and unappropriated profits or losses of HFPL shall constitute unappropriated profits and losses of corresponding nature of SIL and any balance resulting from netting off of investment of SIL in HFPL and share capital of HFPL will be treated as a capital reserve. 3. STATEMENT OF COMPLIANCE These financial statements have been prepared in accordance with the approved accounting standards as applicable in Pakistan and the requirements of the Companies Ordinance, 1984. Approved accounting standards comprise of such International Accounting Standards as notified under the provisions of the Companies Ordinance, 1984. Wherever, the requirements of the Companies Ordinance, 1984 or directives issued by the Securities and Exchange Commission of Pakistan (SECP) differ with the requirements of these standards, the requirements of Companies Ordinance, 1984 or the requirements of the said directives take precedence. 4. SIGNIFICANT ACCOUNTING POLICIES 4.1. BASIS OF PRESENTATION AND MEASUREMENT These financial statements have been prepared under historical cost convention, except for investment classified as "available for sale" which is stated at fair value. 4.2. FIXED ASSETS OWNED ASSETS Fixed assets are stated at cost less accumulated depreciation except for freehold land, leasehold land held on 99 years lease and capital work in progress, which are stated at cost. Depreciation is calculated using the reducing balance method at rates disclosed in note 5, which are considered appropriate to write off the cost of the assets over their useful lives. Full year's depreciation is charged in the year of addition whereas no depreciation is charged in the year of disposal. The carrying amounts of the company's assets are reviewed at each balance sheet date to determine whether there is an indication of impairment. If any such indication exists, the asset's recoverable amount is estimated and impairment losses are recognized. LEASED ASSETS Leased assets held under finance lease are stated at cost less accumulated depreciation at the rates and basis applicable to company owned assets. The outstanding obligations under the lease less finance charges allocated to future period are shown as liability. The financial charges are calculated at the interest rates implicit in the lease and are charged to the profit and loss account. Repairs and maintenance are charged to revenue. Material renewals and improvements are capitalized. Gains and losses on disposal of operating fixed assets are recognized in the profit and loss account. 4.3. INVESTMENTS AVAILABLE FOR SALE All investments are initially recognized at cost, being the fair value of the consideration given and including acquisition charges associated with the investment. After initial recognition, investments, which are classified as "available for sale" are measured at fair value, with unrealized gains and losses on these securities are recognized in profit and loss account for the year. For the investments actively traded in financial markets, fair value is generally determined with reference to Stock Exchange quoted market bid prices at the close of business on the balance sheet date. For investments where there is no quoted market price, a reasonable estimate of the fair value is determined with reference to the current market value of another instrument which is substantially the same or is calculated based on the expected cash flows of the underlying net asset base of the investment. All purchases and sales of investments are recognized on the trade date, which is the date that the company commits to purchase or sell the investments. INVESTMENTS IN ASSOCIATES Investments in associated company are reported using equity method. This is an entity in which the company has significant influence and which is neither a subsidiary nor a joint venture of the company. The investment in associate is carried in the balance sheet at cost. 4.4. STORES, SPARES AND STOCK IN TRADE Stocks, stores and spares are valued at lower of cost or net realizable value except those in transit, which are valued at invoice value including other charges, if any, incurred thereon. Basis of determining cost is as follows:- Raw materials - Monthly average
Finished goods - Yearly average
Pulp, concentrates etc. - Manufacturing cost according
to annual average method
Bottles - Yearly average
Shells, pallets and barrels - Yearly average
Stores and spares - Monthly average
Goods in transit - Purchase costShells, pallets and barrels are subject to a deterioration of 20% per annum using the reducing balance method. Net realizable value is determined on the basis of estimated selling price of the product in the ordinary course of business less costs of completion and costs necessary to be incurred for its sale.4.5. TRADE DEBTS Trade debtors are carried at invoice amount on transaction date less any estimate for doubtful receivable. Known bad debts are written off as and when identified. 4.6. CASH AND CASH EQUIVALENTS For the purpose of cash flow statement, cash and cash equivalents comprise of cheques in hand, cash and bank balances. 4.7. FINANCIAL INSTRUMENTS All the financial assets and financial liabilities are recognized at the time when the company becomes a party to the contractual provisions of the instruments. The company derecognises a financial asset or a portion of financial asset when, and only when, the enterprise loses control of the contractual rights that comprise the financial asset or portion of financial asset. While a financial liability or part of financial liability is derecognised from the balance sheet when, and only when, it is extinguished, i.e.; when the obligation specified in the contract is discharged, cancelled or expired. Financial assets are investments, deposits, trade debts, advances, other receivables, cash and bank balances. These are stated at their nominal values as reduced by the appropriate allowances for estimating irrecoverable amount. Financial liabilities are classified according to the substance of the contractual arrangements entered into. Significant financial liabilities are short term running finance utilized under mark-up arrangements, creditors, accrued and other liabilities. Mark-up bearing finances are recorded at the gross proceeds received. Other liabilities are stated at their nominal value. 4.8. OFFSETTING OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES A financial asset and financial liability is offset and the net amount is reported in the balance sheet if the company has a legal enforceable right to set off the recognized amounts and intends either to settle on net basis or to realize the assets and settle the liabilities simultaneously. 4.9. TAXATION CURRENT Provision for current taxation is based on taxable income at the current rate of tax after taking into account applicable tax credits, rebates and exemptions available, if any. DEFERRED Deferred tax is provided in full using the balance sheet liability method on all temporary differences arising at the balance sheet date, between the tax bases of the assets and liabilities and their carrying values. Deferred tax assets are recognized for all deductible temporary differences to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilized. The carrying amounts of all deferred tax assets are reviewed at each balance sheet date and reduced to the extent, if it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax assets to be utilized. The tax rates enacted at the balance sheet date are used to determine deferred tax. 4.10. REVENUE RECOGNITION Sales are recorded upon dispatch of goods to the customers. However, export goods are considered sold when shipped on board. Income from bank deposits is recognized on accrual basis. Dividend income is recognized when right to receive is established. 4.11. RETIREMENT BENEFITS The Company operates a recognised provident fund scheme for all permanent employees. Equal monthly contributions are made both by the company and the employees to the fund. 4.12. FINANCIAL CHARGES All mark up, interest and other charges are charged to profit and loss account on an accrual basis. 4.13. FOREIGN CURRENCIES Foreign currency transactions are converted into rupees at the rates prevailing on the date of transactions. Monetary assets and liabilities in foreign currencies are translated into rupees at the rates of exchange prevailing at the date of balance sheet. Profits or losses arising on translation are recognized in the profit and loss account. 4.14. PRICING FOR RELATED PARTY TRANSACTIONS All transactions with related parties and associated undertakings are entered into arm's length determined in accordance with comparable uncontrolled price method except for transactions with M/s. Shahnawaz (Private) Limited, where an additional discount of 40% is given by them on service charges and 7.5% on spare parts in connection with the repairs of motor vehicles, due to group policy duly approved by the Board of Directors. Parties are said to be related if they are able to influence the operating and financial decisions of the company and vice versa. 4.15. PROVISIONS A provision is recognized in the balance sheet when the company has a legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of obligation. 5. OPERATING FIXED ASSETS ==============================================================================================================================================================================================
COST DEPRECIATION BOOK
VALUE
As at Transfer from As at Accumulated Transfer from Charge Accumulated As at
July 01, Subsidiary due to Additions/ Disposals/ June 30, As at Subsidiary due to Disposals/ for As at June 30,
2003 Scheme of merger Adjustments Adjustments 2004 July 01, 2003 Scheme of merger Adjustments The year June 30, 2004 2004 Rate
Notes (Rupees in thousands) %
==============================================================================================================================================================================================
Company owned assets
Freehold land 7,091 - - - 7,091 - - - - - 7,091 -
Leasehold land - 1802 - - 1,802 - - - - 1,802 -
Buildings on freehold land 24,908 - 912 - 25,820 11,552 - - 1,427 12,979 12841 10
Buildings on leasehold land - 11,538 - - 11,538 - 7,748 - 379 8,127 3,411 10
Plant and machinery 63,971 77,018 5,005 62 145,932 47,490 56,444 (54) 5,256 109,136 36,796 12.5
Furniture and fixtures 2,590 382 90 - 3,062 2,078 201 - 117 2,396 666 15
Motor vehicles and bicycles 5.1 26,462 4,610 3 4,371 40,309 19,354 2,854 (2,298) 2,721 29,425 10,884 20
13,605 6,794
Electric fittings and tools 4,034 165 368 - 4,567 790 133 - 365 1,287 3,280 10-25
Electric equipment 5.2 7,066 863 399 13 8,315 3,482 565 (8) 641 4,681 3,634 15
Laboratory equipment 242 96 - - 338 175 45 - 12 232 106 10
Fork lifts 4,416 1,429 - - 5,845 3,949 1,302 - 119 5,370 475 20
Computers and accessories 2,797 979 699 - 4,475 1,888 624 - 655 3,167 1,308 33.33
Arms and ammunitions 94 - - - 94 78 - - 3 81 13 20
143,671 98,882 21,081 4,446 259,186 90,836 69,916 4,434 11,695 176,881 82,307
Assets subject to finance lease
Plant and machinery - - 20,520 - 20,520 - - - 2,565 2,565 17,955 12.5
Motor vehicles 5.3 23,416 3,532 12,698 13,605 26,041 9,506 1,219 (6,794) 4,422 8,353 17,688 20
167,087 102,414 54,299 18,051 305,749 100,342 71,135 (2,360) 18,682 187,799 117,950
2003 142,465 - 33,512 8,890 167,087 90,541 - (959) 10,760 100,342 66,745
2003 (Consolidated) 242,280 - 39,625 12,406 269,499 156,995 - (959) 15,441 171,477 98,022
==============================================================================================================================================================================================5.1. Additions to motor vehicles and bicycles includes transfer from leased assets having net book value of Rs. (thousands) 6,811 (2003: Rs. (thousands) 3,859) representing cost of Rs. (thousands) 13,605 less accumulated depreciation of As. (thousands) 6,794.5.2. Visi coolers costing Rs. (thousands) 2,261 (2003: As. (thousands) 1,950) are in the possession of shopkeepers for the sale of company's products. 5.3. Motor vehicles costing Rs. (thousands) 1,365 (2003: Rs. (thousands 2,670) are in the possession of company's distributors for the sale of company's products. 5.4. DEPRECIATION CHARGE FOR THE YEAR HAS BEEN ALLOCATED AS FOLLOWS =================================================================================
2004 2003 2003
(Rupees in thousands)
Notes Consolidated
=================================================================================
Cost of sales 22 10,083 4,475 7,710
Administrative and general expenses 23 1,936 1,388 1,942
Selling and distribution expenses 24 6,663 4,897 5,789
18,682 10,760 15,441
=================================================================================6. CAPITAL WORK IN PROGRESS====================================================================================================
COST
Civil works Plant and machinery Electric
and buildings Owned Leased Fittings Total
(Rupees in thousands)
====================================================================================================
Balance as at July01, 2003 201 1,897 20,520 1,129 23 747
Additions during the year 432 3,656 23,924 - 28,012
Adjustments 353 758 - (1,111) -
Transferred to factory overheads - - - (18) (18)
Transferred to
operating fixed assets (986) (4,661) (20,520) - (26,167)
Balance as at June 30, 2004 - 1,650 23,924 - 25 574
====================================================================================================7. INVESTMENTS7.1. SUBSIDIARY COMPANY - UNLISTED =====================================================================================================
2004 2003 2003
(Rupees in thousands)
Consolidated
=====================================================================================================
Hattar Fruit Products Limited
Nil (2003: 2,500,000) ordinary shares
of Rs. 10/- each at cost - 20,000 -
- 20,000 -
=====================================================================================================7.2. ASSOCIATED UNDERTAKING=====================================================================================================
Notes 2004 2003 2003
(Rupees in thousands)
Consolidated
=====================================================================================================
Hattar Food Products (Private) Limited
85,000 (2003: 85,000) ordinary shares
of Rs. 100/- each at cost 7.4 8,500 - 8,500
8,500 - 8,500
=====================================================================================================7.3. AVAILABLE FOR SALE=====================================================================================================
2004 2003 2003
(Rupees in thousands)
Note Consolidated
=====================================================================================================
Modaraba - listed -
Guardian Modaraba
250,000 (2003: 250,000) certificates
of Rs. 10/- each 7.5 1 650 625 625
Gain on remeasurement 1,000 1,025 1,025
2,650 1,650 1,650
=====================================================================================================7.4. The above investment represents 44.88% (2003: 44.88%) of the issued share capital of the associated company. The cost and the company's share in the net assets of the associate company (based on audited financial statements of June 30, 2004) is the same, as the associated undertaking has not yet commenced its commercial operations.Chief Executive of the company is Mr Muneer Nawaz. 7.5. The above investment represents 1.53% (2003:1.53%) of the issued certificate capital of the company. The cost of the investment is Rs. (thousands) 2,500 (2003: Rs. (thousands) 2,500) and the market value as at June 30, 2004 was Rs. (thousands) 2,650 (2003: Rs. (thousands) 1,650). 8. LONG TERM DEPOSITS =====================================================================================================
2004 2003 2003
(Rupees in thousands)
Consolidated
=====================================================================================================
Leasing companies 1,568 2,327 2,680
Others 1,732 3,001 3,047
3,300 5,328 5,727
Less: Current maturity - Leasing companies 966 1,168 1,346
2,334 4,160 4,381
=====================================================================================================9. STORES AND SPARES=====================================================================================================
2004 2003 2003
(Rupees in thousands)
Consolidated
=====================================================================================================
Stores and spares 1,089 796 1,104
=====================================================================================================10. STOCK IN TRADE=====================================================================================================
2004 2003 2003
(Rupees in thousands)
Consolidated
=====================================================================================================
Raw materials 15,021 10,609 13,575
Packing materials 110,581 42,695 70,420
Bottles 70,046 49,610 68,595
Finished goods 38,880 20,348 23,277
Pulps, concentrates etc. 104,747 79,419 90,224
Shells, pallets and barrels 34,911 13,951 23,896
Less: Deterioration in value 6,982 2,790 4,779
27,929 11,161 19,117
Goods in transit 3,552 718 779
370,756 214,560 285,987
=====================================================================================================11. TRADE DEBTS=====================================================================================================
2004 2003 2003
(Rupees in thousands)
Note Consolidated
=====================================================================================================
Unsecured, considered good -
Due from associated undertakings 11.1 - - -
Others 24,155 51,952 55,860
24,155 51,952 55,860
Considered doubtful - Others 1,726 1,095 1,095
Provision for doubtful debts 1,726 1,095 1,095
24,155 51,952 55,860
=====================================================================================================11.1. Maximum aggregate amount due from the associated undertakings at the end of any month, during the year was Rs (thousands) 266 (2003: Rs (thousands) 198).12. ADVANCES, DEPOSITS, PREPAYMENTS =====================================================================================================
2004 2003 2003
(Rupees in thousands)
Consolidated
=====================================================================================================
Advances - Unsecured, considered good
- Staff 740 135 393
- Suppliers 1,725 13,903 13,944
Advances - Unsecured, considered doubtful
- Suppliers 100 100 100
Provision for doubtful advances 100 100 100
- - -
Short term deposits 1,914 167 177
Current maturity of long term deposits 966 1,168 1,346
Prepayments 8,535 3,026 4,087
Accrued profit on bank deposits 12 21 361
Advance excise duty 1,177 1,996 2,213
Income tax recoverable 40,856 26,253 35,948
Wealth tax recoverable 140 140 140
Sales tax refundable 2,256 1,366 2,398
58,321 48,175 61,007
=====================================================================================================13. CASH AND BANK BALANCES=====================================================================================================
2004 2003 2003
(Rupees in thousands)
Notes Consolidated
=====================================================================================================
Cash in hand 6,643 3,969 5,263
Cheques in hand 9,776 4,072 6,539
Cash at banks - Current accounts 25,099 9,171 38,272
- Deposit accounts 13.1 - 100 100
- PLS savings accounts 13.2 7,141 659 21,461
48,659 17,971 71,635
=====================================================================================================13.1. It includes an amount of Rs. Nil (2003: Rs. (thousands) 100) as lien against guarantee given by the bank.13.2. It includes an amount of Rs. (thousands) 894 (2003: Rs. (thousands) 2,027) as lien against guarantees given by the bank. 13.3. The balance in Deposit accounts and PLS savings accounts bear mark-up, which ranges between 0.05% to 1.75% (2003: 2.75% to 3.2%) per annum. 14. SHORT TERM RUNNING FINANCE The running finance facilities available from commercial banks under the mark-up arrangement is Rs. (thousands) 70,000 (2003: Rs. (thousands) 70,000). The rate of mark-up ranges between 3% to 4% (2003: 7% to 9.5%) per annum, payable quarterly. The facilities are secured against first registered joint pari passu hypothecation charge of current assets up to Rs. (thousands) 155,000 (2003: Rs. (thousands) 155,000) on all existing current assets of the company and personal guarantees of directors. The un-utilized facility for opening letters of credit and for guarantees as at June 30, 2004 amounts to Rs. (thousands) 21,782 (2003: Rs. (thousands) 25,000) and Rs. (thousands) 12,322 (2003: Rs. (thousands) 12,374), respectively. 15. CREDITORS, ACCRUED AND OTHER LIABILITIES =====================================================================================================
2004 2003 2003
(Rupees in thousands)
Notes Consolidated
=====================================================================================================
Due to subsidiary company - 47,791 -
Due to associated undertakings 12,196 11,824 12,556
Creditors 71,199 38,185 87,248
Deposits 15.1 14,250 8,501 11 498
Distributors credit balances 6,890 6,419 10,610
Accrued expenses 24,836 17,672 20,286
Accrued mark-up on secured running/demand finances 6 120 120
Sales tax payable 10,869 10,718 15,692
Accrued excise duty - 402 590
Workers' Profit Participation Fund 15.2 5,022 2,804 4 088
Workers' Welfare Fund 3,835 935 1,335
Unclaimed dividend 244 218 218
Other liabilities 753 754 846
150,100 146,343 165,087
=====================================================================================================15.1. The agreements with the distributors give company the right to utilize these deposits in normal course of business.15.2. WORKERS' PROFIT PARTICIPATION FUND =====================================================================================================
2004 2003 2003
(Rupees in thousands)
Consolidated
=====================================================================================================
Balance at the beginning of the year 2,804 2,927 4,135
Transfer from subsidiary due to scheme
of mergermalgamation 1,284 - -
Allocation for the year 5,022 2,804 4,088
9,110 5,731 8,223
Interest on funds utilized in the Company's business 164 50 97
9,274 5,781 8,320
Amount paid to the Fund's Trust 4,252 2,977 4,232
Balance at the end of the year 5,022 2,804 4,088
=====================================================================================================16. PROPOSED DIVIDEND=====================================================================================================
2004 2003 2003
(Rupees in thousands)
Consolidated
=====================================================================================================
Proposed @ Rs. 7/50 per share (2003: @ Rs. 5/50 per share) 37,500 27,500 27,500
=====================================================================================================17. DEFERRED TAXATION=====================================================================================================
2004 2003 2003
(Rupees in thousands)
Consolidated
=====================================================================================================
This is comprised of the following:
Deferred tax liabilities
Difference in tax and accounting bases of owned assets 3,204 3,585 3,148
Difference in tax and accounting bases of leased assets 3,543 441 552
Deferred tax assets
Difference in tax and accounting bases of investments - (297) -
Provision for doubtful debts (640) (419) (716)
6,107 3,310 2,984
=====================================================================================================18. OBLIGATIONS UNDER FINANCE LEASEThe interest rates used as the discounting factor (i.e. implicit in the lease) ranges from 4.75% to 15.17% (2003: 8.4% to 19.13%) per annum. The amount of future payments and the period during which they will become due are: =====================================================================================================
2004 2003 2003
(Rupees in thousands)
Note Consolidated
=====================================================================================================
Year ending June 30,
2004 - 14,795 15,990
2005 25,014 11,355 11,987
2006 20,486 7,022 7,250
2007 3,944 - -
Minimum lease payments 18.1 49,444 33,172 35,227
Less: Future finance charges 3,570 3,660 3 850
45,874 29,512 31,377
Less: Current maturity 21,597 11,494 12,549
24,277 18,018 18,828
=====================================================================================================The lease agreements have the option for purchase of the assets at the end of the lease period. There are no financial restrictions in the lease agreements. The residual value of the leased assets is Rs. (thousands) 2,127 (2003: Rs. (thousands) 2,532).18.1. MINIMUM LEASE PAYMENTS (MLP) AND THEIR PRESENT VALUE (PV) ARE REGROUPED AS BELOW ========================================================================================================================
2004 2003 2003 (Consolidated)
MLP PV OF MLP MLP PV OF MLP MLP PV OF MLP
(Rupees in thousands) (Rupees in thousands) (Rupees in thousands)
========================================================================================================================
Due not later than l year 25,014 21,597 14,795 11,494 15,990 12,549
Due later than 1 year but
not later than 5 years 24,430 24,277 18,377 18,018 19,237 18,828
49,444 45,874 33,172 29,512 35,227 31,377
========================================================================================================================19. SHARE CAPITAL============================================================================
2004 2003 2003
(Rupees in thousands)
Consolidated
============================================================================
Authorised -
10,000,000 (2003: 10,000,000)
ordinary shares
of Rs. 10 each 100,000 100,000 100,000
Issued, subscribed and paid-up -
237,500 (2003: 237,500) ordinary shares
of Rs. 10 each fully paid in cash 2,375 2,375 2,375
4,762,500 (2003: 4,762,500) ordinary shares
of Rs. 10 each issued as
fully paid bonus shares 47,625 47,625 47,625
50,000 50,000 50,000
============================================================================21,625 (2003: 21,625) shares are held by Shezan (Private) Limited, an associated company.20. CONTINGENCIES AND COMMITMENTS a) CONTINGENCIES i) Claim of P.E.S.S.I. for Rs. (thousands) 2,379 (2003: Rs. (thousands) 2,379) not acknowledged as debt by the company as the management is confident that the matter would be settled in its favour, consequently no provision has been made in these financial statements in respect of the above. ii) Notices for additional payments of sales tax and excise duty amounting to Rs. (thousands) 26,447 (2003: Rs. (thousands) 15,166) contested with the Collectorate of Customs, Sales Tax and Central Excise. The management is confident that the matter would be settled in its favour, consequently no provision has been made in these financial statements in respect of the above. iii) Notices for additional payment of leasehold land amounting to Rs. (thousands) 844 (2003: Rs. (thousands) 844) contested with Sarhad Development Authority. The management is confident that the matter would be settled in its favour, consequently no provision has been made in these financial statements in respect of the above. b) COMMITMENTS i) Commitments in respect of letters of credit established for the import of raw and packing materials amounted to Rs. (thousands) 3,218 (2003: Rs. Nil). ii) Counter guarantees in favour of banks in the ordinary course of business amounted to Rs. (thousands) 12,678 (2003: Rs. (thousands) 13,471). iii) Commitments for equity investment in an associated undertaking amounted to Rs. (thousands) 1,500 (2003: Rs. (thousands) 1,500). 21. SALES =====================================================================================================
2004 2003 2003
(Rupees in thousands)
Consolidated
=====================================================================================================
Domestic 1,329,669 970,004 1,160,445
Export 37,733 34,841 44,512
Export rebate 174 572 572
1,367,576 1,005,417 1,205,529
Less: Discounts and incentives 41,904 30,424 37,083
Sales tax 229,086 141,002 198,007
270,990 171,426 235,090
1,096,586 833,991 970,439
=====================================================================================================22. COST OF SALES=====================================================================================================
2004 2003 2003
(Rupees in thousands)
Notes Consolidated
=====================================================================================================
Manufacturing 22.1 771,039 526,028 735,832
Trading 22.2 1,178 124,170 2,375
772,217 650,198 738,207
=====================================================================================================22.1. COST OF SALES - MANUFACTURING=====================================================================================================
2004 2003 2003
(Rupees in thousands)
Note Consolidated
=====================================================================================================
Putps, concentrates etc. - Opening stock 79,419 67,254 79397
Transfer from subsidiary due to scheme of merger 11,463 - -
Add: Production/processing during the year 78,611 82,952 82,952
Purchases during the year 21,474 13,967 21,049
Cost transferred from raw materials 14 -
Cost transferred from finished goods 167 451 451
191,148 164,624 183,849
Less: Pulps, concentrates etc. - Closing stock 104,747 79,419 90,224
Pulps, concentrates etc. consumed 86,401 85,205 93,625
Raw materials - Opening stock 10,609 17,601 20,476
Transfer from subsidiary due to scheme of merger 2,966 - -
Add: Purchases during the year 251 701 210,683 250,166
265,276 228,284 270,642
Less: Production of pulps, concentrates 78,611 82,952 82,952
Cost transferred to raw materials 14 - -
Raw materials - Closing stock 15,021 10,609 13,575
Raw materials consumed 171,630 134,723 174,115
Packing materials - Opening stock 42,695 29,179 46,618
Transfer from subsidiary due to scheme of merger 27,725 - -
Barrels consumed 304 - -
Add: Purchases during the year 395,246 197,487 320,763
465,970 226,666 367,381
Less: Cost transferred to expenses 2,137 - -
Packing materials - Closing stock 110,581 42,695 70,420
Packing materials consumed 353,252 183,971 296,961
Factory expenses -
Salaries, wages and amenities 35,342 27,227 31,779
Company's contribution to provident fund 381 317 338
Stores and spares consumed 9,283 8,427 9,825
Travelling and conveyance 493 199 276
Repairs and maintenance 27,772 11,640 17,828
Insurance 1,112 682 999
Fuel and power 38,682 26,952 35,498
Inward freight and loading/unloading 1,990 384 384
Utilities 5,635 3,105 3,105
Bottle breakage 6,342 3,657 6,178
Excise duty 68,271 53,008 76,490
General expenses 1,505 569 606
Depreciation 5.4 10,083 4,475 7,710
206,891 140,642 191,016
Cost of production 818,174 544,541 755,717
Add: Finished goods - Opening stock 20,348 24,653 29,726
Transfer from subsidiary due to scheme of merger 3,972 - -
842,494 569,194 785,443
Less: Cost of samples 22,832 14,668 17,986
Cost of wastage and spoilage 9,844 7,699 7,897
Cost transferred to pulps, concentrates etc. 167 451 451
Finished goods - Closing stock 38,612 20,348 23,277
71,455 43,166 49,611
771,039 526,028 735,832
=====================================================================================================22.2. COST OF SALES - TRADING=====================================================================================================
2004 2003 2003
(Rupees in thousands)
Consolidated
=====================================================================================================
Finished goods - Opening stock
Add: Purchases during the year 1,553 124,170 2,375
1,553 124,170 2,375
Less: Cost of samples 104 - -
Cost of wastage and spoilage 3 - -
Finished goods - Closing stock 268 - -
375 - -
1,178 124,170 2,375
=====================================================================================================23. ADMINISTRATIVE AND GENERAL EXPENSES=====================================================================================================
2004 2003 2003
(Rupees in thousands)
Notes Consolidated
=====================================================================================================
Salaries, wages and amenities 29,830 21,360 24,169
Company's contribution to provident fund 534 406 423
Postage and telephone 2,398 1,436 1,812
Travelling and conveyance 1,359 788 1,072
Repairs and maintenance 1,612 1,440 1,733
Insurance 1,189 652 871
Stationery and printing 1,875 1,490 1,759
Rent, rates and taxes 1,510 1,169 1,207
Auditors' remuneration 23.1 1,373 782 1,089
Legal and professional 540 598 709
Donations 23.2 312 108 133
General expenses 810 421 673
Provision for doubtful debts 631 - -
Depreciation 5.4 1,936 1,388 1,942
45,909 32,038 37,592
=====================================================================================================23.1. AUDITORS' REMUNERATION=====================================================================================================
2004 2003 2003
(Rupees in thousands)
Consolidated
=====================================================================================================
Audit fee 275 175 325
Tax consultancy services 725 - 85
Miscellaneous certification charges 287 575 638
Out of pocket expenses 86 32 41
1,373 782 1,089
=====================================================================================================23.2. DONATIONSNone of the directors or their spouses had any interest in any of the donees. 24. SELLING AND DISTRIBUTION EXPENSES =====================================================================================================
2004 2003 2003
(Rupees in thousands)
Note Consolidated
=====================================================================================================
Salaries, wages and amenities 37,406 30,310 32,398
Company's contribution to provident fund 451 426 444
Postage and telephone 888 564 882
Travelling and conveyance 4,656 3,260 3,727
Repairs and maintenance 10,361 7,399 7,544
Insurance 2,309 2,712 2,918
Utilities 1,852 642 3,261
Stationery and printing 1,104 725 725
Rent, rates and taxes 2,244 668 1,096
Advertising and promotions 42,598 24,472 28,034
Outward freight and distribution 22,063 6,701 11,898
Staff sales incentive 3,521 2,720 2,720
Petrol, oil and lubricants 16,709 13,108 13,108
General expenses 688 363 490
Depreciation 5.4 6,663 4,897 5,789
Deterioration on shells and pallets 5,953 1,865 3,798
159,466 100,832 118,832
=====================================================================================================25. OTHER INCOME=====================================================================================================
2004 2003 2003
(Rupees in thousands)
Notes Consolidated
=====================================================================================================
Profit on bank deposits 378 218 1,192
Dividend income 220 20,125 125
Gain on remeasurement of investment
- Available for Sale 7.3 1,000 1,025 1,025
Gain on disposal of operating fixed assets 25.1 2,885 688 688
Sale of scrap 4,257 2,345 3,145
8,740 24,401 6,175
=====================================================================================================25.1. GAIN ON DISPOSAL OF OPERATING FIXED ASSETS===============================================================================================================================
Sale Gain/
Description Cost Book Value Proceeds (Loss) Purchaser Mode
(Rupees in thousands)
===============================================================================================================================
Lathe Machine 36 6 40 34 Mr. Sabir Feroze, Negotiation
Lahore.
Toyota Corolla 365 23 100 77 Mr. MansoorAhmad, Negotiation
Employee.
Hyundai Shehzore 445 228 500 272 Noman & Company, Negotiation
Approach Road Near
People Colony
Nigar Phatak, Gujranwala.
Hyundai Shehzore 445 228 539 311 Tahir Javaid & Company, Negotiation
Officer's Colony No. 1,
Madina Town, Faisalabad.
Hyundai Shehzore 445 228 539 311 Tahir Javaid & Company, Negotiation
Officer's Colony No. 1,
Madina Town, Faisalabad.
Hyundai Shehzore 445 228 539 311 Zafar & Company, Negotiation
Yadgar Road, Rabwah.
Hyundai Shehzore 445 228 540 312 Fasih ud Din & Company, Negotiation
Larri Adda, Mangowal.
Hyundai Shehzore 445 228 540 312 Ahsan Traders, Negotiation
Opp. Carriage Factory,
Islamabad.
Hyundai Shehzore 445 228 540 312 Ahsan Traders, Negotiation
Opp. Carriage Factory,
Islam abad.
Hyundai Shehzore 445 228 540 312 Dost Muhammad & Negotiation
Company,
Near Asif Cinema,
Mianwali.
Hyundai Shehzore 445 228 540 312 Chaudhary Brothers, Negotiation
House No. 438/5-U
Street, Major Rasheed
Panj Bhata, Rawalpindi.
WDV below Rs. (thousands) 5 each 40 8 16 8 Various Negotiation
4,446 2,089 4,974 2,885
===============================================================================================================================25.1.1. No asset was sold to Chief Executive, Directors, Executives or Shareholders holding more than 10% of total paid-up capital.26. FINANCIAL CHARGES =====================================================================================================
2004 2003 2003
(Rupees in thousands)
Note Consolidated
=====================================================================================================
Interest, mark-up and charges on -
Secured running/demand finances 203 351 388
Workers' Profit Participation Fund 15.2 164 50 97
Finance lease charges 3,786 1,875 2,178
4,153 2,276 2,663
Bank charges 1,187 743 1,070
5,340 3,019 3,733
=====================================================================================================27. OTHER EXPENSES AND PROVISIONS=====================================================================================================
2004 2003 2003
(Rupees in thousands)
Note Consolidated
=====================================================================================================
Product spoilage and barrel deterioration 11,669 8,646 9,160
Royalty to associated undertaking 10,227 7,412 8,823
Foreign exchange loss 60 176 209
Workers' Profit Participation Fund 15.2 5,022 2,804 4,088
Workers' Welfare Fund - Prior year - - 15
-For the year 2,500 500 900
29,478 19,538 23,195
=====================================================================================================28. TAXATION=====================================================================================================
2004 2003 2003
(Rupees in thousands)
Consolidated
=====================================================================================================
Current
- fortheyear 35,000 10,000 19,000
- for prior year (11,335) - 621
23,665 10,000 19,621
Deferred
- expenses/(income) relating to origination and reversal
of temporary differences 3,123 1,359 2,205
- income resulting from reduction in tax rates - - (105)
3,123 1,359 2,100
26,788 11,359 21,721
=====================================================================================================28.1. RELATIONSHIP BETWEEN INCOME TAX EXPENSE AND ACCOUNTING PROFIT=====================================================================================================
2004 2003 2003
(Rupees in thousands)
Consolidated
=====================================================================================================
Profit before taxation 92,916 52,767 55,055
Current Taxation:
Tax at the applicable rate of 35% (2003: 35%) 32,521 18,468 19,269
Tax effect of expenses that are not deductible in determining
taxable income charged to profit and loss account 23,062 10,586 13,359
Tax effect of expenses that are deductible in determining
taxable income not charged to profit and loss account (13,472) (9,144) (11,922)
Tax effect of applicability of lower tax rate on export sales
and dividend income (3,988) (8,551) (3,412)
Tax effect on higher rate of subsidiary - - 3,911
38,123 11,359 21,205
Tax effect of adjustments in respect of current
income tax of prior year (11,335) - 621
Tax effect of adjustments in respect of deferred
taxation of prior year - - (105)
(11,335) - 516
Tax charge for the current year 26,788 11,359 21,721
=====================================================================================================29. EARNINGS PER SHARE - BASIC=====================================================================================================
2004 2003 2003
=====================================================================================================
There is no dilutive effect on the basic earnings per share
of the company, which is based on:
Profit after taxation attributable to ordinary shareholders (Rupees) 66,128 41,408 33,334
Weighted average number of ordinary shares at the end
of the year (in thousands) 5,000 5,000 5,000
Earnings per share (Rupees) 13.23 8.28 6.67
=====================================================================================================30. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES30.1. Concentration of credit risk and credit exposures of the financial instruments. Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. Out of total financial assets of Rs (thousands) 89,930 (2003: Rs (thousands) 97,224), the financial assets which are subject to credit risk amounted to Rs (thousands) 30,121 (2003: Rs (thousands) 57,603). Concentration of credit risk may arise from exposure to a single debtor or to a group of debtors having similar characteristics such that their ability to meet their obligations is effected similarly by changes in economic or other conditions. Although the company operates mainly in the consumer industry but the management believes that it is not exposed to significant concentration of credit risk. The management limits its credit risk by an aggressive policy for approval of credit limits and by ensuring that the sales are made to customers with an appropriate credit history. 30.2. FOREIGN EXCHANGE RISK MANAGEMENT Foreign currency risk arises mainly where receivables and payables exist due to sale and purchase transactions with foreign undertakings. Payables exposed to foreign currency risks are identified as either 'Creditors' or "Bills payable" and receivables exposed to foreign currency risks are identified as "Trade debts". The company does not view hedging as being financially feasible owing to the transactions of immaterial amounts involved. 30.3. FAIR VALUE OF THE FINANCIAL INSTRUMENTS The carrying value of all financial assets and liabilities reflected in the financial statements approximates their fair values. Fair value is determined on the basis of objective evidence at each reporting date. 30.4. INTEREST RATE RISK MANAGEMENT Interest rate risk represents the value of financial instruments, which will fluctuate due to changes in market interest rate. Since the company borrows funds at fixed interest rates, exposure to interest rate risk is minimal. 30.5. LIQUIDITY RISK MANAGEMENT Liquidity risk reflects the company's inability of raising funds to meet commitments. Management closely monitors the company's liquidity and cash flow position. This includes maintenance of balance sheet liquidity ratios, debtors and creditors concentration both in terms of the overall funding mix and avoidance of undue reliance on large individual customers. 30.6. CASH FLOW RISK MANAGEMENT The company does not have any financial assets or financial liabilities which carry variable interest rates hence is not subject to any cash risk in this area. 30.7. INTEREST/MARK-UP RATE RISK EXPOSURE The company's exposure to interest/mark-up rate risk on its financial assets and liabilities as of June 30, 2004 is summarized as follows: ==================================================================================================================================================================
June 30, 2004
Interest/Mark-up Bearing Non Interest/Mark-up Bearing
Effective Upto 1 year 1 year to 5 years Sub Upto 1 year 1 year to 5 years Sub Grand
Mark-up 5 years & above total 5 years & above total total
Rates
% (Rupees in thousands)
==================================================================================================================================================================
Financial Assets
Investments - - - - 2,650 - 8,500 11,150 11,150
Long term deposits - - - - 966 602 1,732 3,300 3,300
Trade debts - - - - 24,155 - - 24,155 24,155
Advances, deposits &
other receivables - - - - 2,666 - - 2,666 2,666
Cash & bank balances 0.05- 1.75 7,141 - - 7,141 41,518 - - 41,518 48,659
7,141 - - 7,141 71,955 602 10,232 82,789 89,930
Financial Liabilities
Short term
running finance 3-4 10,000 - - 10,000 - - - - 10,000
Obligations under
finance lease 4.75-15.17 21,597 24,277 - 45,874 - - - - 45,874
Creditors, accrued &
other liabilities - - - - 130,368 - - 130,368 130,368
Proposed dividend - - - - 37,500 - - 37,500 37,500
31,597 24,277 - 55,874 167,868 - - 167,868 223,742
On balance sheet gap (24,456) (24,277) - (48,733) (95,913) 602 10,232 (85,079) (133,812)
Off balance sheet items
Contingencies - - - - 29,670 - - 29,670 29,670
Commitments - - - - 17,396 - - 17,396 17,396
- - - - 47,066 - - 47,066 47,066
==================================================================================================================================================================
==================================================================================================================================================================
June 30, 2004
Interest/Mark-up Bearing Non Interest/Mark-up Bearing
Effective Upto 1 year 1 year to 5 years Sub Upto 1 year 1 year to 5 years Sub Grand
Mark-up 5 years & above total 5 years & above total total
Rates
% (Rupees in thousands)
==================================================================================================================================================================
Financial Assets
Investments - - - - 1,650 - 20,000 21,650 21,650
Long term deposits - - - - 1,168 1,159 3,001 5,328 5,328
Trade debts - - - - 51,952 - - 51,952 51,952
Advances, deposits &
other receivables - - - - 323 - - 323 323
Cash & bank balances 2.75-3.2 759 - - 759 17,212 - - 17,212 17,971
759 - - 759 72,305 1,159 23,001 96,465 97,224
Financial Liabilities
Short term
running finance 7 -9.5 20,867 - - 20,867 - - - - 20,867
Obligations under
finance lease 8.4- 19.13 11,494 18,018 - 29,512 - - - - 29,512
Creditors, accrued &
other liabilities - - - - 113,812 - - 113,812 113,812
Proposed dividend - - - - 27,500 - - 27,500 27,500
32,361 18,018 - 50,379 141,312 - - 141,312 191,691
On balance sheet gap (31,602) (18,018) - (49,620) (69,007) 1,159 23,001 (44,847) (94,467)
Off balance sheet items
Contingencies - - - - 17,545 - - 17,545 17,545
Commitments - - - - 13,471 - - 13,471 13,471
- - - - 31,016 - - 31,016 31,016
Financial Assets
Investments - - - - 10,150 - - 10,150 10,150
Long term deposits - - - - 1,346 1,334 3,047 5,727 5,727
Trade debts - - - - 55,860 - - 55,860 55,860
Advances, deposits
& other receivables - - - - 931 - - 931 931
Cash & bank balances 1.25-4 21,561 - - 21,561 50,074 - - 50,074 71,635
21,561 - - 21,561 118,361 1,334 3,047 122,742 144,303
Financial Liabilities
Short term
runnin9 finance 7-9.5 20,867 - - 20,867 - - - - 20,867
Obligations under
finance lease 8.4- 19.13 12,549 18,828 - 31,377 - - - - 31,377
Creditors, accrued &
other liabilities - - - - 143,382 - - 143,382 143,382
Proposed dividend - - - - 27,500 - - 27,500 27,500
33,416 18,828 - 52,244 170,882 - - 170,882 223,126
On balance sheet gap (11,855) (18,828) - (30,683) (52,521) 1,334 3,047 (48,140) (78,823)
Off balance sheet items
Contingencies - - - - 18,389 - - 18,389 18,389
Commitments - - - - 17,125 - - 17,125 17,125
- - - - 35,514 - - 35,514 35,514
==================================================================================================================================================================31. TRANSACTIONS WITH RELATED PARTIESThe related parties and associated undertakings comprise related group companies, local associates, staff provident fund, directors and key management personnel. Transactions with related parties and associated undertakings, other than remuneration and benefits to key management personnel under the terms of their employment are as follows: =====================================================================================================
2004 2003 2003
(Rupees in thousands)
Consolidated
=====================================================================================================
Purchases of raw materials 95,980 61,229 95,148
Purchases of finished goods - 121,795 -
Sales of raw materials - 17,860 -
Sales of finished goods 297 10,588 263
Royalty charged 10,227 7,412 8,823
Purchases/repairs of electric equipment/vehicles 521 4 68
Services rendered 60 60 60
Dividend income - 20,000 -
Contributions to staff provident fund 1,366 1,149 1,205
=====================================================================================================All transactions with related parties and associated undertakings are entered into arms length determined in accordance with comparable uncontrolled price method except for transactions with M/s. Shahnawaz (Private) Limited, where an additional discount of 40% is given by them on service charges and 7.5% on spare parts in connection with the repairs of motor vehicles, due to group policy.32. REMUNERATION OF CHIEF EXECUTIVE, PAID DIRECTORS AND EXECUTIVES ===============================================================================================================
Chief Executive Directors Executives
2004 2003 2003 2004 2003 2003 2004 2003 2003
Total number 1 1 1 2 2 2 10 10 11
(Rupees in thousands)
Consolidated Consolidated Consolidated
===============================================================================================================
Basic Salary 726 666 666 1,398 1,278 1,278 3,546 2,386 2,489
Provident fund contribution 61 55 55 117 106 106 286 199 208
Allowances and benefits
House rent 330 258 258 660 516 516 2,002 1,122 1,161
Dearness 162 129 129 324 258 258 2,073 1,115 1,158
Costofliving - 3 3 - 6 6 - 25 43
Special - - - 60 60 60 228 120 174
Utilities 78 78 78 156 156 156 374 282 291
Medical 16 28 28 10 25 25 203 174 182
Bonus 121 111 111 233 213 213 599 390 441
1,494 1,328 1,328 2,958 2,618 2,618 9,311 5,813 6,147
===============================================================================================================32.1. Fees paid to five non-executive directors during the year for attending Board meetings Rs. (thousands) 28 (2003: Rs. (thousands) 32).32.2. Fees paid to two non-executive directors during the year for attending Audit committee meetings Rs. (thousands) 14 (2003: Rs. (thousands) 6). 32.3. The company also provides the Chief Executive, certain directors and executives with company maintained vehicles, partly for personal and partly for business purposes. 33. CAPACITY AND PRODUCTION =======================================================================================
Production
Normal Annual Capacity 2004 2003 2003
Consolidated
=======================================================================================
Juices -
Bottling plant 5,925,000 Crates 3,669,100 1,950,820 2,924,837
Tetra Pak plant 13,200,000 Dozen 6,897,654 3,082,775 5,426,232
Squashes and syrups plant 590,000 Dozen 146,345 152,702 169,893
Jams and ketchup plant 620,000 Dozen 307,816 242,941 289,357
Pickles plant 87,500 Dozen 80,683 77,672 77,372
Canning plant 180,000 Dozen 100,709 153,809 153,809
=======================================================================================The normal annual capacity, as shown above, has been worked out on the basis of 300 working days except for bottling plant and squashes and syrups plant, which have been worked out on 150 days because of the seasonal nature of the business of the company. However, the shortfall in production from last year is due to market conditions.34. NUMBER OF EMPLOYEES Total number of permanent employees at the year end was 261 (2003: 236). 35. AUTHORIZATION These financial statements were authorized for issue by the Board of Directors on September 24, 2004. 36. GENERAL 36.1. Previous year's figures have not been restated except for as given below. These are considered more appropriate for the purpose of better presentation: a) Re-arrangement of foreign exchange loss Rs. (thousands) 209 from other income to other expenses and provisions; b) Re-arrangement of opening stock of pulp, concentrates etc. of Rs. (thousands) 67,254, production/processing during the year of Rs. (thousands) 82,952, purchases during the year of Rs. (thousands) 13,967, cost transferred from finished goods of Rs (thousands) 451, closing stock of pulps, concentrates etc. of Rs (thousands) 79,419 and consumption of pulps, concentrates etc. amounting to Rs (thousands) 85,205. These were previously grouped in raw materials and finished goods in Note 22.1, now disclosed separately; c) Re-arrangement of pulp, concentrates etc. Rs. (thousands) 79,419, previously grouped in finished goods stock have been disclosed separately in stock in trade in Note 10. d) Re-arrangement of cost of samples of Rs. (thousands) 14,668 and cost of wastage and spoilage amounting to Rs. (thousands) 7,699, now disclosed separately in Note 22.1. e) Re-arrangement of managerial remuneration Rs. (thousands) 777 to basic salary and bonus in note 32 and. f) Re-arrangement of utilities Rs. (thousands) 210 to dearness, cost of living and utilities allowance in Note 32. 36.2. Comparative figures of consolidated financial statements have also been reported for appropriate comparison and better understanding. 36.3. Figures in these accounts have been rounded off to the nearest thousand of rupees. |