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KHALID SIRAJ TEXTILE MILLS LIMITED
25TH ANNUAL REPORT 2012
C O N T E N T S
COMPANY INFORMATION
VISION AND MISSION STATEMENT
NOTICE OF ANNUAL GENERAL MEETING
DIRECTORS' REPORT TO THE SHAREHOLDERS
STATEMENT OF COMPLIANCE WITH CORPORATE GOVERNANCE
REVIEW REPORT TO THE MEMBERS
PATTERN OF SHAREHOLDING
FINANCE HIGHLIGHTS
AUDITORS' REPORT TO THE MEMBERS
BALANCE SHEET
PROFIT AND LOSS ACCOUNT
STATEMENT OF COMPREHENSIVE INCOME
CASH FLOW STATEMENT
STATEMENT OF CHANGES IN EQUITY
NOTES TO THE ACCOUNTS
FORM OF PROXY
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3
4
5-7
8
9
10-11
12
13
14
15
16
17
18
19-35
Khalid Siraj TEXTILE MILLS LIMITED
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COMPANY INFORMATION
CHIEF EXECUTIVE - MIAN TAYYAB IQBAL
DIRECTORS ------
MIAN TAHIR IQBAL MISS RABIA IQBAL MRS. TAYYABA WASEEM MRS. RUKHSANA ARIF KH. IFTIKHAR-UD-DIN MR. MUHAMMAD ASIF (NIT NOMINEE)
AUDIT COMMITTEE
- CHAIRMAN - MEMBERS
---
MIAN TAHIR IQBAL MISS RABIA IQBALMRS. RUKHSANA ARIF
COMPANY SECRETARY - HAJI TARIQ SAMAD
BANKERS -----
NATIONAL BANK OF PAKISTANHABIB BANK LIMITEDFAYSAL BANK LTDDUBAI ISLAMIC BANK HABIB METROPOLITAN BANK LTD
AUDITORS - QADEER AND COMPANYCHARTERED ACCOUNTANTS89/F, JAIL ROAD, LAHORE.
LEGAL ADVISOR - MR. MAJID ALI RANA (ADVOCATE)
REGISTERED OFFICE - 467-M BLOCK, MODEL TOWN EXTENSION,LAHORE.
MILLS - 48 - KM, LAHORE - MULTAN ROAD,PHOOL NAGAR (BHAI PHERU),TEHSIL PATTOKI, DISTT. KASUR.
Khalid Siraj TEXTILE MILLS LIMITED
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V i s i o nTo accomplish, build up and sustain a good reputation of the
project in textile sector locally and globally by manufacturing
and marketing high quality of yarn through team work by
means of honesty, integrity and commitment.
M i s s i o nTo provide maximum satisfaction to customers by supplying
fine quality yarn for knitting and Weaving for well known
textile Brands through effective utilization of men, material
and machines by encouraging, supporting and rewarding
the employees and sharing profits with our shareholders.
We do have social responsibility towards our community in
which we operate and we are committed to safety,
health and environment in all our operations.
Khalid Siraj TEXTILE MILLS LIMITED
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thNotice is hereby given that the 25 Annual General Meeting of the shareholders of Khalid Siraj Textile Mills Ltd. will be held at 467-M Block, Model Town Ext., Lahore, on Wednesday, October 31, 2012 at 10:30 a.m. to transact the following business:
Ordinary Business:
1. To confirm the minutes of the Annual General Meeting of the shareholders held on October 31, 2011.
2. To receive, consider and adopt the Audited Balance Sheet and Profit and Loss Account of the Company together with the Directors' and Auditors' Reports thereon for the year ended June 30, 2012.
3. To appoint Auditors for the year ending June 30, 2013 and fix their remuneration. The retiring Auditors are eligible for re-appointment.
4. To transact any other business with the permission of the Chair.
By order of the Board Khalid Siraj Textile Mills Ltd.
Haji Tariq Samad Company Secretary
LahoreOctober 10, 2012
Notes:
1. The Share Transfer Books of the Company will remain closed from October 27, 2012 to November 03, 2012 (both days inclusive).
2. A member entitled to attend and vote at the General Meeting is entitled to appoint another member as a proxy to attend and vote instead of him / her.
3. The instrument appointing a proxy must be received at the Registered Office of the Company not later than 48 hours before the time fixed for the meeting. A member shall not be entitled to appoint more than one proxy. If a member appoints more than one proxy and more than one instrument of proxy is deposited by a member with the Company, all such instruments of proxy shall rendered invalid.
4. An individual beneficial owner of CDC entitled to attend and vote at this meeting, must bring his / her CNIC or Passport in original to prove his / her identity and in case of a proxy, must enclose an attested copy of his / her CNIC or Passport along with CDC A/C No. Representatives of corporate members should bring the usual documents required for such purpose.
5. Shareholders are requested to promptly notify the change in their addresses, if any, to the Company Registrar i.e. M/S Corplink (Pvt) Ltd., Wings Arcade, 1-K, Commercial, Model Town, Lahore. Fax: 042-35869037.
NOTICE OF ANNUAL GENERAL MEETING
Khalid Siraj TEXTILE MILLS LIMITED
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DIRECTORS' REPORT TO THE SHAREHOLDERS
IN THE NAME OF ALLAH, THE MOST GRACIOUS, THE MOST MERCIFUL
DEAR SHAREHOLDERS:
thThe Directors of your company welcome you at the 25 Annual General Meeting and are pleased to present the audited accounts and auditors' report thereon for the year ended June 30, 2012.
The company sold 3.749 million kilograms of yarn valuing Rs. 780.70 million during the year under review as compared to 3.962 million kilograms of yarn valuing Rs. 1,088.27 million in the previous year. There would have been a gross profit during the year under review, but charging of depreciation on revalued fixed assets amounting to Rs. 25.216 million turned the gross profit into a gross loss of Rs. 8.717 million as compared to the gross loss of Rs. 16.405 million in the previous year. During the year, the company suffered a pre tax loss of Rs. 38.624 million as compared to pre tax loss of Rs. 51.568 million in the previous year.
APPROPRIATIONS
Khalid Siraj TEXTILE MILLS LIMITED
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Loss before taxation (51,568,003)
Taxation (771,673)
Loss for the year (50,796,330)
Loss brought forward (88,737,847)
Transferred from surplus on revaluation of fixed assets on accountof incremental depreciation-net of deferred tax
18,183,336
Transferred from surplus on Revaluation of Property,Plant (26,349,426) and Equipment- Re-stated
Unappropriated loss carried forward to Balance Sheet (147,700,267)
Loss per share-basic (4.75)
(38,624,207)
4,694,331
(43,318,538)
(147,700,267)
16,390,511
-
(174,628,294)
(4.05)
2012 2011
Re-stated
Rupees
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CORPORATE AND FINANCIAL REPORTING FRAME WORK
The Board of Directors state that:
a) The financial statements prepared by the management, present fairly its state of affairs, the result of
its operations, cash flows and changes in equity;
b) Proper books of accounts have been maintained by the company;
c) Appropriate accounting policies have been consistently applied in preparation of financial
statements based on reasonable and prudent judgement;
d) International Financial Reporting Standards (IFRS), as applicable in Pakistan have been followed
in preparation of financial statements and any departure there from has been adequately disclosed;
e) The system of internal control is sound in design and has been effectively implemented and
monitored;
f) There is no significant doubt the company's ability to continue as a going concern;
g) The main reason for non declaration of dividend is after tax loss of Rs. 43.318 million;
h) There has been no material departure from the best practices of corporate governance, as detailed
in the listing regulations;
PATTERN OF SHAREHOLDINGS
A statement reflecting the pattern of shareholdings is attached to the Annual Report on page 10-11.
KEY OPERATING AND FINANCIAL DATA
A statement summarising the key operating and financial data of last six years alongwith current year is
attached to the Annual Report on page 12.
STATUTORY PAYMENTS
As on the closing date, no government taxes, duties, levies and charges were outstanding/overdue except
the routine payments of various levies.
TRADE IN THE SHARES OF THE COMPANY
There was no trading in the shares of the Company by the Chief Executive, Directors, Chief Financial
Officer, Company Secretary and their spouses and minor children during the year under review.
Khalid Siraj TEXTILE MILLS LIMITED
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BOARD MEETINGS
During the period under consideration, four (4) meetings were held and the attendance by the respective Directors was as follows:
DIRECTORS NUMBER OF MEETINGS ATTENDED
Mian Tayyab Iqbal 4Mian Tahir Iqbal 4Miss Rabia Iqbal 4Mrs. Tayyaba Waseem 3Mrs. Rukhsana Arif 3Kh.Iftikhar-ud-Din 3Mr. Muhammad Asif (NIT Nominee) 2Leave of absence was granted by the board to the non attending directors.
FUTURE PROSPECTS
AUDITORS
The Auditors M/s.Qadeer & Co., Chartered Accountants, are retiring at the conclusion of the Annual General Meeting, scheduled to be held on 31-10-2012. The retiring auditors have offered their services for re-appointment.
MANAGEMENT / EMPLOYEES RELATIONS
The labour management relations remained cordial throughout the year. The Directors take the opportunity to express their appreciation of the spirit of understanding and good will reciprocated by the workers of the company. We trust that this spirit of harmony and mutual understanding will prevail in the times to come, Insha Allah.
Your Directors also place on record their appreciation for the loyalty and devotion to duty of the officers and members of the staff of the company.
APPRECIATION
The Directors place on record their appreciation for the support and co-operation extended by its bankers and other financial institutions to the company.
During the earlier part of the year, the cotton prices were higher due to uncertain crop size. The sale price of cotton yarn did not increase in line with cotton prices and other production cost. For the coming year, the financial position of the Company will largely depend on the size and prices of cotton and improvement in yarn prices. The Directors of your Company are trying their best to improve the situation through better production and marketing strategies.
Lahore: 04 October 2012
For and on behalf of the Board of Directors
MIAN TAYYAB IQBAL CHAIRMAN/CHIEF EXECUTIVE
Khalid Siraj TEXTILE MILLS LIMITED
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Lahore: 04 October 2012
For and on behalf of the Board
MIAN TAYYAB IQBAL CHIEF EXECUTIVE
CNIC # 35202-7317351-7
Khalid Siraj TEXTILE MILLS LIMITED
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Category
Names
Executive Directors
Mian Tayyab Iqbal
Mian Tahir Iqbal
Kh. Iftikhar-ud-Din
Non - Executive Directors
Miss Rabia Iqbal Mrs. Tayyaba Waseem
Mrs. Rukhsana Arif
Mr. Muhammad Asif (NIT Nominee)
This statement is being presented to comply with the Code of Corporate Governance contained in Listing Regulations of Karachi and Lahore Stock Exchanges for the purpose of establishing a framework of good governance, whereby a listed company is managed in compliance with the best practices of corporate governance.
The Company has applied the principles contained in the CCG in the following manner:
1. The Company encourages representation of independent non-executive directors and directors representing minority interests on its board of directors. At present the board includes:
The independent directors meets the criteria of independence under clause i (b) of the CCG.
2. The directors have confirmed that none of them is serving as a director on more than seven listed companies, including this Company. 3. All the resident directors of the company are registered as taxpayers and none of them has defaulted in payment of any loan to a
banking company, a DFI or an NBFI or, being a member of a stock exchange, has been declared as a defaulter by that stock exchange.
4. No casual vacancy occurred on the board during the year.
5. The Company has prepared a "Code of Conduct" and has ensured that appropriate steps have been taken to disseminate it throughout the Company along with its supporting policies and procedures.
6. The board has developed a vision/mission statement, overall corporate strategy and significant policies of the Company. A complete record of particulars of significant policies along with the dates on which they were approved or amended has been maintained.
7. All the powers of the board have been duly exercised and decisions on material transactions, including appointment and determination of remuneration and terms and conditions of employment of the CEO, other executive and non-executive directors, have been taken by the board / shareholders.
8. The meetings of the board were presided over by the Chairman and, in his absence, by a director elected by the board for this purpose and the board met at least once in every quarter. Written notices of the board meetings, along with agenda and working papers, were circulated at least seven days before the meetings. The minutes of the meetings were appropriately recorded and circulated.
9. The board arranged a training program for its directors during the year.
10. The board has approved appointment of CFO, Company Secretary and Head of Internal Audit, including their remuneration and terms and conditions of employment.
11. The directors' report for this year has been prepared in compliance with the requirements of the CCG and fully describes the salient
matters required to be disclosed.
12. The financial statements of the Company were duly endorsed by CEO and CFO before approval of the board.
13. The directors, CEO and executives do not hold any interest in the shares of the Company other than that disclosed in the pattern of shareholding.
14. The Company has complied with all the corporate and financial reporting requirements of the CCG.
15. The board has formed an Audit Committee. It comprises 3 members, of whom two are non-executive directors and the chairman of the committee is an executive director.
16. The meetings of the audit committee were held at least once every quarter prior to approval of interim and final results of the company and as required by the CCG. The terms of reference of the committee have been formed and advised to the committee for compliance.
17. The board has formed an HR and Remuneration Committee. It comprises 3 members, of whom two are non-executive directors and the chairman of the committee is an executive director.
18. The board has set up an effective internal audit function.
19. The statutory auditors of the company have confirmed that they have been given a satisfactory rating under the quality control review program of the ICAP, that they or any of the partners of the firm, their spouses and minor children do not hold shares of the company and that the firm and all its partners are in compliance with International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by the ICAP.
20. The statutory auditors or the persons associated with them have not been appointed to provide other services except in accordance with the listing regulations and the auditors have confirmed that they have observed IFAC guidelines in this regard.
21. The 'closed period', prior to the announcement of interim/final results, and business decisions, which may materially affect the market price of Company's securities, was determined and intimated to directors, employees and stock exchange(s).
22. Material / price sensitive information has been disseminated among all market participants at once through stock exchange(s).
23. We confirm that all other material principles enshrined in the CCG have been complied with.
Statement of Compliance with the Code of Corporate GovernanceName of Company : Khalid Siraj Textile Mills Limited
Year ending : June 30, 2012
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We have reviewed the statement of compliance with best practices contained in the Code of Corporate Governance as applicable to Company for the year ended June 30, 2012 prepared by the Board of Directors of Khalid Siraj Textile Mills Limited (the Company) to comply with the Listing Regulation No. 35 of Karachi and Lahore Stock Exchanges, where the company is listed.
The responsibility for compliance with the Code of Corporate Governance is that of Board of Directors of the Company. Our responsibility is to review, to the extent where such compliance can be objectively verified, whether the statement of compliance reflects the status of Company's compliance with the provisions of Code of Corporate Governance and report if it does not. A review is limited primarily to inquiries of the Company personnel and review of various documents prepared by Company to comply with the Code.
As part of our audit of financial statements we are required to obtain an understanding of the accounting and internal control system sufficient to plan the audit and develop an effective audit approach. We are required to consider whether the Board's statement on internal control covers all risks and controls, or to form an opinion on the effectiveness of such internal control, the Company's corporate governance procedures and risks.
Further, Sub-Regulation (xiii a) of Listing Regulations 35 notified by Karachi Stock Exchange (Guarantee) Limited vide circular KSE/N-269 dated 19 January 2009 requires the Company to place before the Board of Directors for their consideration and approval related party transactions distinguishing between transactions carried out on terms equivalent to those that prevail in arm's length transactions and transactions which are not executed at arm's length price recording proper justification for using such alternate pricing mechanism. Further, all such transactions are also required to be separately placed before the audit committee. We are only required and have ensured compliance of requirement to the extent of approval of related party transactions by the Board of Directors and placement of such transactions before the audit committee. We have not carried out any procedures to determine whether the related party transactions were undertaken at arm's length price or not.
Based on our review, nothing has come to our attention, which causes us to believe that the statement of compliance does not appropriately reflect the Company's compliance, in all material respects, with the best practices contained in the Code of Corporate Governance as applicable to the Company for the year ended 30 June 2012.
REVIEW REPORT TO THE MEMBERS
ON STATEMENT OF COMPLIANCE WITH BEST PRACTICES OF CODE OF CORPORATE GOVERNANCE
LahoreDated 05, October 2012:
QADEER AND COMPANYCHARTERED ACCOUNTANTS
NAWAZ KHAN, FCA
QADEER AND COMPANY CHARTERED ACCOUNTANTS
89/F, JAIL ROAD, LAHORE.
Ph: 042-37584617, 37578122 Fax: 042-37576728 E-mail: [email protected]
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PATTERN OF SHAREHOLDING
Khalid Siraj TEXTILE MILLS LIMITED
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4. No. of Shareholders From ----Shareholding---- To Total Shares Held
477
1
100
21,711
272
101
500
78,495
254
501
1,000
161,382
216
1,001
5,000
435,407
30
5,001
10,000
204,838
2
10,001
15,000
26,080
4
15,001
20,000
69,132
2
20,001
25,000
47,130
5
35,001
40,000
184,400
1
55,001
60,000
57,629
1
60,001
65,000
62,371
1
65,001
70,000
66,683
2
70,001
75,000
149,400
1
80,001
85,000
83,300
1
85,001
90,000
86,567
1
95,001
100,000
100,000
1
100,001
105,000
102,800
4
105,001
110,000
432,930
10
110,001
115,000
1,130,987
2
145,001
150,000
298,530
1
150,001
155,000
152,100
1
155,001
160,000
159,160
1
160,001
165,000
162,500
1
205,001
210,000
209,972
1 225,001 230,000 227,000
1 240,001 245,000 240,750 1 295,001 300,000 299,600 1 305,001 310,000 306,062 1 365,001 370,000 369,973 1
370,001
375,000
373,002
1
380,001
385,000
382,232 1
395,001
400,000
399,431
1
420,001
425,000
420,304
1
545,001
550,000
546,682
1
550,001
555,000
553,840
2
695,001
700,000
1,397,122
1
700,001
705,000
700,498
1,305
10,700,000
5. Categories of shareholders Shares held Percentage
5.1 Directors, Chief Executive Officers and their spouse and minor childern 219,429 2.050738%5.2 Associated Companies, undertakings and related parties 0 0.000000%5.3 NIT and ICP 726,437 6.789131%5.4 Banks Development Financial Institutions, Non Banking Financial Institutions 171,188 1.599888%5.5 Insurance Companies 425,654 3.978075%5.6 Modarabas and Mutual Funds 11,235 0.105000%5.7 Share holders holding 10% 0 0.000000%5.8 General Public 9,139,835 85.419019% a. Local 0.000000% b. Foreign 0.000000%5.9 Others (to be specified) 0.000000%1- Joint Stock Companies 5,907 0.055206%3- Others Companies 315 0.002944%
1. Incorporation Number 0017345
2. Name of the Company KHALID SIRAJ TEXTILE MILLS LIMITED
3. Pattern of holding of the shares held by the shareholders as at 30 June 2012
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Khalid Siraj TEXTILE MILLS LIMITED
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Sr. No. NameNo. of Shares
HeldPercentage
Associated Companies, Undertakings and Related Parties: - -
Mutual Funds: -
-
Directors and their Spouse and Minor Chidren:
1 MIAN TAYYAB IQBAL 132,429 1.2377%
2 MISS TAYYABA IQBAL 74,600 0.6972%
3 MIAN TAHIR IQBAL 10,000 0.0935%
4 MISS RABIA IQBAL 1,400 0.0131%
5 MRS. RUKHSANA ARIF 500 0.0047%
6 KHAWAJA IFTIKHAR-UD-DIN 500 0.0047%
7 MR. MUHAMMAD ASIF (NIT NOMINEE) - 0.0000%
Executives: 1,454,546 13.5939%
Public Sector Companies & Corporations: - 0.0000%
Banks, Development Finance Institutions, Non Banking Finance, Companies, 608,077 5.6830%
Insurance Companies, Takaful, Modarabas and Pension Funds:
Shareholders holding five percent or more voting intrest in the listed company
S. No. NAME Holding %Age
1 NATIONAL BANK OF PAKISTAN- TRUSTEE DEPARTMENT. (CDC) 700,498 6.5467%
2 MIAN HASSAN BARKAT 926,230 8.6564%
3 MIAN HUSSAIN BARKAT 907,864 8.4847%
4 MIAN FAROOQ BARKAT 553,840 5.1761%
5 MIAN IQBAL BARKAT 546,682 5.1092%
All trades in the shares of the listed company, carried out by its Directors, Executives and theirspouses and minor children shall also be disclosed:
- -
CATAGORIES OF SHAREHOLDING REQUIRED UNDER CODE OF COPRORATE GOVERNANCE(CCG)As on June 30, 2012
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FINANCIAL HIGHLIGHTS Seven Years at a Glance
(All amounts in thousand)
2009 2008 2007 20062010Particulars
Turnover (Net)(Rupees)
Profit/Loss before taxation(Rupees)
Profit/Loss after taxation(Rupees)
Paid up capital(Rupees)
Number of Shares (Ordinary Shares)
Owner's equity(OrdinaryShareholders)(Rupees)
Break up value ofShare of Rs. 10 each (Rupees)
Earning pershare-basic(Rupees)
Total assets(Rupees)
655,468
(77,229)
(57,741)
107,000
10,700,000
35,660
3.33
(5.40)
682,004
431,304
(94,104)
(95,904)
107,000
10,700,000
(15,322)
(1.43)
(8.96)
545,760
492,753
(46,002)
(36,394)
107,000
10,700,000
69,863
6.53
(3.40)
491,048
421,978
(38,419)
(32,582)
107,000
10,700,000
92,302
8.62
(3.05)
507,073
2011
724,343
(25,146)
(6,421)
107,000
10,700,000
18,262
1.71
(0.60)
580,858
Khalid Siraj TEXTILE MILLS LIMITED
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796,442
(38,624)
(43,319)
107,000
10,700,000
(67,628)
(6.32)
(4.05)
515,368
2012
1,110,715
(51,568)
(50,796)
107,000
(14,351)
(1.34)
(4.75)
528,185
10,700,000
We have audited the annexed Balance Sheet of KHALID SIRAJ TEXTILE MILLS LIMITED ('the company') as at 30 June 2012 and the related Profit and Loss Account, Statement of Comprehensive Income, Cash Flow Statement and Statement of changes in equity together with the notes forming part thereof, for the year then ended and we state that we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit.
It is the responsibility of the Company's management to establish and maintain a system of internal control, and prepare and present the above said statements in conformity with the approved accounting standards and the requirements of the Companies Ordinance, 1984. Our responsibility is to express an opinion on these statements based on our audit. We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the above said statements are free of any material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the above said statements. An audit also includes assessing the accounting policies and significant estimates made by management, as well as, evaluating the overall presentation of the above said statements. We believe that our audit provides a reasonable basis for our opinion and, after due verification, we report that:
(a) in our opinion, proper books of accounts have been kept by the company as required by the Companies Ordinance, 1984;
(i). the balance sheet and profit and loss account together with the notes thereon have been drawn up in conformity with the Companies Ordinance, 1984 and are in agreement with the books of accounts and are further in accordance with accounting policies consistently applied;
(ii). the expenditure incurred during the year was for the purpose of the company's business; and
(iii). the business conducted, investments made and the expenditure incurred during the year were in accordance with the objects of the company;
(c) in our opinion and to the best of our information and according to the explanations given to us, the Balance Sheet, Profit and Loss Account, Statement of Comprehensive Income, Cash Flow Statement and statement of changes in equity together with the notes forming part thereof, conform with approved accounting standards as applicable in Pakistan, and give the information required by the Companies Ordinance, 1984, in the manner so required and respectively give a true and fair view of the state of the Company's affairs as at 30 June 2012 and of the loss, total comprehensive loss, its cash flows and changes in equity for the year then ended; and
(d) in our opinion, no Zakat was deductible at source under the Zakat and Ushr Ordinance, 1980 (XIII of 1980).
Without qualifying our opinion, we draw attention to note 1.01 in the financial statements which indicate that the sales reduced from Rs.1,110,714,542 to Rs.796,441,695 and incurred the gross loss of Rs.8,717,910 and a net loss of Rs.43,318,537 during the year ended June 30, 2012 resulting in accumulated losses of Rs.174,628,294 at the close of the year and as of that date, the Company current liabilities exceeded its current assets by Rs.37,175,798 and sum of total liabilities and surplus on revaluation of fixed assets exceeded its total assets by Rs.67,628,294. These conditions along with other matters as set forth in note 1.01 indicate the existence of a material uncertainty which may cost significant doubt about the company ability to continue as a going concern.
The financial statements of KHALID SIRAJ TEXTILE MILLS LIMITED ('the company') for the year ended June 30, 2011 were audited by M/S Nazir Chaudhri & Co. (Chartered Accountants) who had included "Emphasis of matter Paragraph through their Report" on October 04, 2011.
AUDITORS' REPORT TO THE MEMBERS
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LahoreDated 05, October 2012:
QADEER AND COMPANYCHARTERED ACCOUNTANTS
NAWAZ KHAN, FCA
QADEER AND COMPANY CHARTERED ACCOUNTANTS
89/F, JAIL ROAD, LAHORE.
Ph: 042-37584617, 37578122 Fax: 042-37576728 E-mail: [email protected]
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BALANCE SHEET AS AT 30 JUNE 2012
CHIEF EXECUTIVE DIRECTOR
Khalid Siraj TEXTILE MILLS LIMITED
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The annexed notes form an integral part of these financial statements.
Share Capital and Reserves
Authorized capital
Rs. 10 each
Issued, subscribed and paid up capital
Accumulated losses
Surplus on Revaluation of Property,
Plant and Equipment
Non Current Liabilities
Sponsors' Loan
Sponsors' unclaimed dividend
Due to associated undertakings
Staff retirement benefits
Deferred Taxation -Net
Current Liabilities
Trade and other payables
Accrued interest / mark up
Short Term Borrowings
Contingencies and Commitments
ASSETS
Non Current Assets
Property, plant and equipment
Long term deposits
Due from ex associated undertakings
Current Assets
Stores, spares and loose tools
Stock in trade
Trade debts
Loans and advances
Trade deposits and short term prepayments
Other receivables
Tax Refund from the Govt
Cash and bank balances
12,000,000(2011:12,000,000) Ordinary shares of
CAPITAL AND LIABILITIES Note
120,000,000
4 107,000,000
(174,628,294)
(67,628,294)
5 164,647,043
6 144,535,612
7 24,058,182
8 32,329,798
9 8,538,379
10 23,854,228
233,316,199
11 86,311,623
3,542,234
12 95,179,352
185,033,209
13 -
515,368,156
14 349,924,018
1,936,000
15 15,650,727
367,510,745
16 37,649,062
17 59,052,936
18 8,519,036
19 59,560
20 1,778,275
21 2,800,449
34,152,737
22 3,845,355
147,857,411
515,368,156
120,000,000
107,000,000
(147,700,267)
(40,700,267)
181,037,562
156,072,362
24,058,182
32,329,798
7,218,446
27,134,062
246,812,850
67,631,135
5,024,011
68,379,275
141,034,421
-
528,184,566
388,862,098
1,979,700
15,650,727
406,492,525
38,824,540
24,991,842
8,435,220
174,409
2,228,952
1,723,116
39,621,457
5,692,505
121,692,041
528,184,566
2012 2011
Re-stated
Rupees
15
PROFIT AND LOSS ACCOUNTFOR THE YEAR ENDED 30 JUNE 2012
CHIEF EXECUTIVE DIRECTOR
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2012 2011
Note
Sales - Net 23 796,441,685 1,110,714,542
Cost of goods sold 24 805,159,595 1,127,119,681
(8,717,910) (16,405,139)
Operating expenses:
- Selling and distribution costs 25 1,879,814 1,890,187
- Administrative and general expenses 26 13,208,341 14,876,863
15,088,155 16,767,050
(23,806,065) (33,172,189)
Other operating income 27 - 630,190
Loss from operation (23,806,065) (32,541,999)
Finance cost 28 14,818,142 19,026,004
Loss before taxation (38,624,207) (51,568,003)
Taxation 29 4,694,331 (771,673)
Loss for the year (43,318,538) (50,796,330)
Earning per share - basic 30 (4.05) (4.75)
The annexed notes form an integral part of these financial statements.
Gross Loss
Rupees
16
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2012
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2012 2011Note
Loss after taxation (43,318,538)
(50,796,330)
16,390,511
18,183,336
Total comprehensive income/(Loss) for the year (26,928,027) (32,612,994)
The annexed notes form an integral part of these financial statements.
Transferred from surplus on revaluation of fixed
assets on account of incremental depreciation-net
of deferred tax
Rupees
CHIEF EXECUTIVE DIRECTOR
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CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2012
CHIEF EXECUTIVE DIRECTOR
Khalid Siraj TEXTILE MILLS LIMITED
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2012 2011
CASH FLOW FROM OPERATING ACTIVITIESProfit / (loss) before taxation
Adjustments for:- Depreciation - Gain/(loss) on disposal of property, plant and equipment - Provision for gratuity - Finance cost
Operating profit before working capital changes
(Increase) / decrease in current assets:- Stores, spares and loose tools - Stock in trade (34,061,094) - Trade debts - Loans and advances - Trade deposits and short term prepayments
Other receivables
Increase / (decrease) in current liabilities:
-Trade and other payables
Cash generated from operations Income tax paid / deducted Gratuity paid Finance cost paid Net cash generated from/used in operating activities
CASH FLOW FROM INVESTING ACTIVITIES
Property, plant and equipment purchased
Proceeds from disposal of property, plant and equipment
Net cash used in investing activities
CASH FLOW FROM FINANCING ACTIVITIESRepayment of long term financing Sponsors loans increase/(Decrease) in security deposit Lease rental paid Short term borrowings
Net cash used in financing activities
Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year 22
(38,624,207)
34,864,258650,320
4,184,78414,818,142
54,517,504
15,893,297
1,175,478
(83,816)114,849450,677
(1,077,333)
18,680,488
(14,800,759)
1,092,538(2,505,445)(2,864,851)
(16,299,919)
(20,577,677)
(326,500)3,750,000
3,423,500
-(11,536,750)
43,700-
26,800,077
15,307,027
(1,847,150)5,692,505
3,845,355
(51,568,003)
38,854,321 (630,190)
3,519,356 19,026,004
60,769,491
9,201,488
660,088 (6,991,075) 2,893,547 1,425,334
12,395,147 997,794
2,409,955
13,790,790
22,992,278 (8,120,292) (1,843,844)
(18,164,073)
(5,135,931)
(8,711,738) 715,000
(7,996,738)
(8,193,422) 5,423,750
- (318,835)
8,513,459
5,424,952
(7,707,717) 13,400,222
5,692,505
The annexed notes form an integral part of these financial statements.
0
Rupees
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STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2012
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Share
Capital
Accumulated
LossTotal
Re-stated
Balance as at July 01, 2010 107,000,000 (88,737,847) 18,262,153
Total comprehensive loss for the year ended June 30, 2011 - (32,612,994) (32,612,994)
Transferred from surplus on Revaluation of Property, Plant (26,349,426) (26,349,426)
and Equipment- Re-stated
Balance as at June 30, 2011 107,000,000
(147,700,267)
(40,700,267)
Total comprehensive loss for the year ended June 30, 2012 - (26,928,027) (26,928,027)
Balance as at June 30, 2012 107,000,000 (174,628,294) (67,628,294)
The annexed notes form an integral part of these financial statements.
Rupees
CHIEF EXECUTIVE DIRECTOR
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NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2012
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1 COMPANY AND ITS OPERATIONS
Khalid Siraj Textile Mills Limited ("the Company") was incorporated in Pakistan on January 17, 1988 as a Public Limited Company under the Companies Ordinance, 1984 and is listed on the Karachi and Lahore stock exchanges in Pakistan. The Registered Office of the Company is situated at 467-M Block, Model Town Extension, Lahore. It is principally engaged in the manufacture and sale of cotton yarn.
1.01 During the current year, the Company's sales reduced from Rs. 1,110,714,542 to Rs. 796, 441,685 and incurred a gross loss of Rs. 8,717,910 and a net loss of Rs. 43,318,537 during the year ended June 30, 2012 resulting in accumulated losses of Rs. 174,628,294 at the close of the year and as of that date, the Company's current liabilities exceeded its current assets by Rs. 37,175,798 and the sum of
total liabilities and surplus on revaluation of fixed assets exceeded its total assets by Rs. 67,628,294. These factors cast significant doubt about the Company's ability to continue as going concern, and therefore, it may be unable to realise its assets and discharge its liabilities in the normal course of business. However, anticipating improved market conditions in the near future, the management is
committed to enhance its operations with more operational efficiencies. In order to deal with this situation, the Company has taken the following measures:-
a) The ex-directors and associated undertakings have agreed to continue financing the operations of the Company. b) Switching over from manufacturing of fine cotton yarn counts to course yarn counts.
The Company, therefore believes that the going concern assumption is appropriate and has, as such, prepared these financial statements on this basis.
2 BASIS OF PREPARATION
Statement of complianceThese financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board as are notified under the Companies Ordinance, 1984, provisions of and directives issued under the Companies Ordinance, 1984. In case requirements differ, the provisions or directives of the Companies Ordinance, 1984 shall prevail.
3 SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently to all periods presented in the financial statements.
3.1 Accounting convention
These accounts have been prepared under the historical cost convention modified by the adjustment of revaluation of certain assets as stated in note 14.
3.2 Use of estimates and judgments
The preparation of financial statements in conformity with approved accounting standards requires management to make judgment, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and expenses. The estimates and associate assumptions and judgments are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the result of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimated underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognised in the period in which the estimate is revised if revision affects only that period, or in the period of revision and future periods if revision affects both current and future periods. The areas where various assumptions and estimates are significant to the Company's financial statements or where judgments are exercised in the application of accounting policies are as follows.
• Residual values and useful lives of property, plant and equipment (note 3.3)• Taxation (note 3.11)• Staff retirement benefits (note 3.14)• Provisions (note 3.12)
3.3 Property, plant and equipment and depreciation
Property, plant and equipment are stated at cost or revalued amount less accumulated depreciation and impairment losses if any, except freehold land which is stated at revalued amount. Capital work in progress is stated at cost. These are transferred to property, plant and equipment as and when the assets are available for intended use. Depreciation is calculated using reducing balance method
at the rate stated in note 14. Depreciation charge commences from the month in which asset is available for use and continues until the month of disposal. Useful lives, methods and rates of depreciation and residual values are reviewed and adjusted, if appropriate on
regular basis. Any change in estimates in future years might affect the carrying amounts of the respective items of property, plant and equipment with corresponding effect on depreciation charge and impairment. The carrying amount of the assets are reviewed at each balance sheet date to determine whether there is any indication of impairment loss. If any such indication exist the assets recoverable amount is estimated in order to determine the extent of impairment loss, if any. Impairment losses are recognized in profit and loss account. An impairment loss is reversed if there had been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Normal repairs and maintenance is charged to revenue as and when incurred, while major renewals and replacements are capitalized. Gains and losses on disposal of property, plant and equipment are included in current year's income.
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3.4 Stores, spares and loose tools
These are valued at cost using moving average method except for items in transit which are valued at cost comprising invoice value plus other charges paid thereon.
3.5 Stock in trade
These are valued at lower of cost or net realizable value.
Cost is determined by following basis:
Raw material - At weighted average cost.Work in process - Estimated manufacturing cost including appropriate overheadsFinished goods - Average manufacturing cost including appropriate overheadsWastes - At net realizable value.
Net realizable value signifies the estimated selling price at which goods in stock could be currently sold less any further costs that would be incurred to complete the sale.
3.6 Leased assets
Assets subject to finance lease are stated at lower of present value of minimum lease payments under the lease agreements and the fair value of the assets less accumulated depreciation. Depreciation is charged at the rates and basis applicable to owned assets. The outstanding obligation under the lease less financial charges allocated to the future periods is shown as liability. The financial charges are calculated at the interest rate implicit in the lease and charged to profit and loss account.
3.7 Trade and other receivables
Trade debts are carried at original invoice amount less an estimate made for doubtful receivables, if any, based on a review of all outstanding amounts at the year end. Bad debts are written off when identified.
3.8 Cash and cash equivalents
These are carried in balance sheet at cost. For the purpose of cash flow statement, cash and cash equivalent comprise of cash in hand and balance with banks on current account.
3.9 Trade and other payables
Liabilities for trade and other amounts payable are carried at cost which is the fair value of the consideration to be paid in future for goods and services received, whether or not billed to the Company.
3.10 Related party transactions
Transactions with related parties are based on the transfer pricing policy that all transactions between the Company and the related party or between two or more segments of the Company are at arm's length prices using the comparable uncontrolled price method except in circumstances where it is in the interest of the Company not to do so.
3.11 Taxation
Current
The charge for taxation for the year is based on minimum tax at the current rates of taxation after taking into account tax rebates and credits available, if any.
Deferred
Deferred tax is accounted for using the balance sheet liability method in respect of all temporary differences arising from differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of the taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets, as required by IAS - 12 (Income Taxes), are recognized to the extent of potential available taxable profit against which temporary differences, unused tax losses and tax credits can be utilized. Deferred tax is calculated at the rates that are expected to apply to the period when the differences reverse, based on tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is charged or credited in the income statement, except where deferred tax arises on the items credited or charged to equity in which case it is included in equity.
3.12 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 and it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate of the amount can be made.
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3.13 Financial instruments
The Company classifies its financial assets into fair value through profit or loss, loans and receivables, available for sale and held to maturity. The classification depends on the purpose for which the financial assets acquired. Management determines the classification of its financial assets at initial recognition. a) Financial assets at fair value to profit or loss are financial assets held for trading and financial assets designated upon initial recognition as at fair value through profit of loss. A financial asset is classified as held for trading if acquired principally for the purpose of selling in the short term. Assets in this category are classified as current assets. b) Loans and receivable are non-derivative financial assets with fixed or determinable payments date that are not quoted in an active market. They are included in current assets, except for maturities greater than twelve months after the balance sheet date, which are classified as non- current assets. c) Financial assets with fixed or determinable payments and with fixed maturity, where management has intention and ability to hold till maturity are classified as held to maturity. d) Available-for-sale financial assets are non- derivatives that are either designated in this category or not classified in any of the other categories. They are included in non- current assets unless management intends to dispose off the investments within twelve months from the balance sheet date. Financial instruments are recognized when the Company becomes a party to the contractual provisions of the instrument. Regular way purchases and sales of investments are recognised on trade date-the date on which the Company commits to purchase or sell the asset. Financial asset are initially recognised at fair value plus transaction costs except for financial asset at fair value through profit & loss. Financial assets are derecognised when the right to receive cash flow from the assets have expired or have been transferred and the Company has transferred substantially all the risks and rewards of ownership. Available for sale financial assets and financial assets at fair value through profit and loss are subsequently carried at fair value. Loans and receivables and held to maturity investments are carried at amortized cost using the effective interest rate method. The Company assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired. If any such evidence exists for available for sale financial asset, the accumulative loss that has been recognised in other comprehensive income shall be reclassified from equity to profit and loss account as reclassification adjustment. Impairment losses recognised in the profit and loss account on equity investments classified as available for sale are not reversed through profit and loss account.
Financial Liabilities:
All financial liabilities are recognised at the time when the company becomes a party to the contractual provisions of i n s t r u m e n t . A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expired. Where the terms of an e x i s t i n g liability are modified, such a modification is treated as a derecognition of original liability and the recognition of new liability, and the difference in respective carrying amounts is recognised in the profit and loss account.
3.14 Staff retirement benefits
The Company operates an unfunded defined benefit gratuity scheme covering all of its permanent employees who are eligible under the scheme. Gratuity is based on employees last drawn salary and the amount recognized in the balance sheet represent the present value of defined benefit obligation as adjusted for unrecognized actuarial gains and losses. Provision is made annually to cover the obligation under the scheme on the basis of projected unit credit method. The most recent valuation was carried out as on June 30, 2011. The Company policy with regard to actuarial gains/losses is to follow minimum recommended approach under IAS-19 "Employee Benefits".
3.15 Revenue recognition
Revenue from sales is recognized on dispatch of goods to the customers .
3.16 Share capitalOrdinary shares are classified as equity and are recorded at their face value.
3.17 Borrowing cost
Borrowing costs are recognized as expense in the period in which these are incurred except to the extent of borrowing cost that are directly attributable to the acquisition, construction or production of qualifying assets. Such borrowing costs, if any, are capitalized as part of the cost of asset.
3.18 Off setting
Financial assets and financial liabilities are set off and net amount is reported in financial statements when there is legally enforceable right to set off and the Company intends either to settle on net basis, or to realize the assets and settle the liabilities simultaneously.
3.19 Foreign currency transactions
Transactions in foreign currencies are converted into Pak Rupees at the rate of exchange prevailing on the date of transaction. Monetary assets and liabilities in foreign currency are translated in to Pak Rupees at the rate of the exchange prevailing at the balance sheet date. Exchange gains and losses are included in current year's income.
3.20 Earning per share (EPS)
The Company presents basic and diluted earning per share (EPS) data for its ordinary shares. Basic EPS calculated by dividing profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period.
Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares.
3.21 Changes in accounting policies and disclosures
3.21.1 Standards, interpretations and amendments to published approved accounting standards that are effective in the year ended June 30, 2012.
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The following standards, amendments and interpretations of approved accounting standards became effective during the year. However these standards are either not relevant or do not have a significant impact on the Company financial statements:
IAS 1 Presentation of Financial StatementsIAS 24 Related Party DisclosuresIAS 34 Interim Financial ReportingIFRS 1 First Time Adoption of International Financial Reporting StandardsIFRS 7 Financial Instruments : DisclosuresIFRS 13 Customer Loyalty ProgrammesIFRS 14 The limit on a defined benefits assets, minimum funding requirements and their interaction
3.21.2 New/ Revised accounting standards, amendments to published accounting standards, and interpretation that are not yet effective.
The following standards, amendments and interpretations of approved accounting standards are only effective for annual periods beginning from the dates specified below. Except for the amendment in International Accounting Standards (IAS)19 which results in immediate recognition of actuarial gains or losses and revised basis of calculation for net finance costs, these standards are either not relevant to the Company operations or are not expected to have a significant impact on the Company financial statements, other than increased disclosures in certain areas.
a) Amendments to IAS 12-Deferred tax on investment property (effective for annual periods beginning on or after 1 January 2012). The amendments provide an exception to the measurements principle in respect of investment property measured using the fair value model in accordance with IAS 40 (Investment property).
b) IAS 19 Employees Benefits (amended 2011)-(effective for annual periods beginning on or after 1 January 2013). The amended IAS 19 includes the amendments that require actuarial gains and losses to be recognized immediately. In other comprehensive incomes this change will remove the corridor method and eliminate the ability for entities to recognize all changes in the defined benefits obligation and in plan assets in profit or loss, which currently is allowed under IAS 19 and that the expected return on plan assets recognized in profit or loss is calculated based on the rate used to discount the defined benefits obligations.
c) Presentation of items of other comprehensive income (Amendment to IAS 1)-( effective for annual periods beginning on or after 1 July 2012).
The amendments require that an entity present separately the items of other comprehensive income that would be reclassified to profit or loss in the future, if certain conditions are met from those that would never be reclassified to profit or loss .
d) Offsetting financial assets and financial liabilities (Amendments to IAS 32)- (effective for annual periods beginning on or 1 January 2014). The amendments address inconsistencies in current practice when applying the offsetting criteria in IAS 32 Financial Instruments.
e) Presentation : The amendments clarify the meaning of 'currently has a legally enforceable right of set off'; and that some gross settlement systems may be considered equivalent to net settlement.
f) Annual improvements 2009-2011(effective for annual periods beginning on or after 1 January 2013). The new cycle of improvements contains amendments to the following standards, with consequential amendments to other standards and interpretations.
g) Offsetting financial assets and financial liabilities (Amendments to IFRS 7)- (effective for annual periods beginning on or 1 January 2013).The amendments to IFRS 7 contain new disclosure requirements for financial assets and liabilities that are offset in the statement of financial position or subject to master netting agreement or similiar arrangement.
h) IAS 1 Presentation of financial statements is amended to clarify that only one comparative period which is the preceding period is required for a complete set of financial statements.
i) IAS-16 Property, Plant and Equipment is amended to clarify the accounting of spares parts stand by equipment and servicing equipment.
j) IAS -32 Financial Instruments: Presentation is amended to clarify that IAS 12 Income Taxes applies to the accounting for income taxes relating to distributions to holders of an equity instrument and transaction costs of an equity transaction.
k) IAS -34 Interim Financial Reporting is amended to align the disclosure requirement for segment assets and segment liabilities in interim financial reports with those in IFRS 8 Operating Segment.
There are other new accounting standards amendments to approved accounting standards and interpretations that are not yet effective, however, they are currently not considered to be relevant to the Company and therefore have not been detailed in these financial statements.
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5 SURPLUS ON REVALUATION OF FIXED ASSETS
Land
Building-Factory
Building-Others
Textile Machinery
Electrical Installation
Labortary equipment
6 SPONSORS’ LOAN
SPONSORS
EX- DIRECTORS
Less: Incremental Depreciation net of Deferred Tax
Re-stated
10,245,246 10,245,246
20,435,343 24,672,605
11,442,876 11,953,047
117,109,754 129,331,632
10,585,067 11,132,685
11,219,267 11,885,683
181,037,553 199,220,898
(16,390,511) (18,183,336)
164,647,043 181,037,562
6.01 30,400,000
114,135,612
144,535,612
30,400,000
125,672,362
156,072,362
6.01 The amount was provided by the Sponsors of the Company , terms and conditions of which are still unsettled. Matter of sponsors loan is sub judice before the Honouarable Lahore High Court, Lahore.
7 SPONSORS’ UNCLAIMED DIVIDEND
This amount is related to sponsors of the company and this matter is also subjudice before the Honorable Lahore Court, Lahore along with the case of sponsors loan.
8 DUE TO EX- ASSOCIATED UNDERTAKINGS
The amount includes principal amount of Rs.13,440,113 (2011:13,440,113) and mark up payable of Rs.18,889,685 (2011:18,889,685) on unsecured loans of various Companies which were previously associated undertakings but have now been allocated by the Honourable Lahore High Court , Lahore to other families of EX-ITTEFAQ GROUP. However the matter is still under litigation.
4 ISSUED, SUBSCRIBED AND PAID UP CAPITAL
There is no movement in ordinary share capital of the Company during year.
700,000 (2011: 700,000) Ordinary Shares of Rs. 10 each issued as
fully paid bonus shares
10,000,000 (2011: 10,000,000) Ordinary Shares of Rs. 10 each fully
paid in cash
NOTE
2012 2011
100,000,000 100,000,000
7,000,000 7,000,000
107,000,000 107,000,000
Rupees
STAFFS RETIREMENT BENEFITS-GRATUITY
Less:Unrecognized transitional liability
9.01.1 Present value of defined benefits obligation as at July, 01
Balance Sheet liability as at June 30
Balance as at July 01 7,218,446 5,542,934
Benefits payments during the year (2,864,851) (1,843,844)
Balance as at June 30 9.01 8,538,379 7,218,446
9.01 Present value of defined benefits obligation as at july, 01 9.01.1 11,421,975 7,567,801
Actuarial gain/(Loss) to be recognized in later periods 9.01.2 (18,745) (18,745)
11,403,230 7,549,056
2,864,851 330,610
8,538,379 7,218,446
7,567,801 6,143,913
Current service cost 2,794,682 2,451,475
9
Present value of defined benefits obligation as at June, 30
9.01.2
Actuarial gains/(losses) during the year
Unrecognized actuarial gains/(losses)as at June, 30
Unrecognized actuarial gains/(losses)as at July, 01
Benefits payments during the year - (1,843,844)
Actuarial (gain)/Loss - 78,987
11,421,975 7,567,801
(18,745) 60,242
- (78,987)
(18,745) (18,745)
Amount recognized for the year 9.02 4,184,784 3,519,356
Interest cost 1,059,492 737,270
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9.02
Current service cost
Interest Cost
Total amount Recognized -
Liability charged due to application of IAS 19
2,794,682 330,611
1,059,492 2,451,475
330,610 737,270
4,184,784 3,519,356
14% 14%
13% 13%
7 Years 7 Years
Re-stated
27,134,062
(3,279,834)
23,854,228
9.03
9.04
DEFERRED TAXATION-NET
Taxable temporary difference
Deductible temporary differences-unusal tax losses provision forstaff retirement benefits- gratuity and others
Recent actuarial valuation of plan was carried out on June 30, 2012 by Nauman Associates.
Significant actuarial assumption used for valuation of these plans are as follows:
Average expected remaining working life time of employees
Discount rate
Expected rate of salary increase
104,089,406
(76,955,344)
27,134,062
10
NOTE
2012 2011Rupees
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12.01 This facility has been obtained against the aggregated sanctioned limit of Rs .160 millions (2011:Rs. 160 millions). These facilities carry
mark up of 3 months KIBOR plus 3.0% with a floor of 5.5%(2011: 6months KIBOR plus 3.0%with a floor of 5.5%) per annum payable
on quarterly basis and is secured against first pari passu charge of Rs .67 Millions on fixed assets, Hypothecation of stores ,spares and
packing material, floating charge on all movable assets, pledge of cotton bales and yarn, ranking charges of Rs. 178 millions on current
assets of the Company and personal guarantees of the directors of the company. The balance includes unfavorable balance in banks
amounting to Rs. 23,681,295.
12.02 This facility against an aggregate limit of Rs.15 million (2011:Rs.15 Millions) is a sublimit of cash finances (pledge) with limit of Rs 120
millions. it carries mark up at the rate of 3 months KIBOR plus 3% with floor of 5.5 %(2011: 6 months KIBOR + 3.0% with a floor of
5.5% ) first parri passu charge of Rs. 25 millions on fixed assets of the Company and the personal guarantee of directors of the
company. Bank has offered this facility to the Company but the Company has not availed this facility during the year.
13 Commitments in respect of letters of credit other than for capital expenditure were nil (2011: Nil) as on balance sheet date.
The movement for the year in company net deferred tax position is given below:
Balance as at June 30,2010
Charged/(credited) to Profit & Loss account
Balance as at June 30,2011
Charged/(credited) to Profit & Loss account
Balance as at June 30 ,2012
116,248,642
(12,159,236)
104,089,406
(2,060,424)
102,028,982
(68,217,576)
(6,211,312)
(74,428,888)
(757,433)
(75,186,321)
(8,647,890)
6,121,434
(2,526,456)
(461,977)
(2,988,433)
39,383,176
(12,249,114)
27,134,062
(3,279,834)
23,854,228
Accelerated
tax
Depreciation
Unused Tax Depreciation
provision for
staff retirement
benefits- gratuity
and others
Net Liability
Deferred tax liability
NOTE
2012 2011
38,326,924
-
9,164,404
500,000
11.01 19,434,250
205,557
67,631,135
TRADE AND OTHERS PAYABLES
Creditors
Advances from Debtors
Accrued liabilities
Refundable securities
Due to associated undertakings
income tax deducted at source
11.01 This represents unsecured and interest free loan from an associated undertakings
Rupees11
12.01 53,379,275
12.02 15,000,000
41,433,194
12,766,178
16,756,609
500,000
14,190,500
665,142
86,311,623
95,179,352
-
95,179,352 68,379,275
SHORT TERM BORROWINGS
Cash finance/ overdraft
Finance against trust receipts
12
De
pre
cia
tio
n S
ch
ed
ule
fo
r 3
0-0
6-2
01
2
Pa
rtic
ula
rs
CO
ST
/RE
VA
LU
ED
AM
OU
NT
Ra
te %
DE
PR
EC
IAT
ION
As
at
July
01
, 2
011
De
letio
n
Ad
diti
on
s
du
rin
g th
e
pe
rio
d
As
at
Jun
e 3
0, 2
01
2
As
at
July
01
, 2
011
AD
JUS
TM
EN
TF
or
the
Ye
ar
As
at
Jun
e 3
0, 2
01
2
Fre
eh
old
La
nd
27
,34
8,7
50
27
,34
8,7
50
27
,34
8,7
50
Bu
ildin
g: F
act
ory
1
26
,59
6,0
12
12
6,5
96
,01
21
05
6,4
59
,34
57
,01
3,6
67
63
,47
3,0
12
63
,12
3,0
00
Oth
er
24
,24
9,8
72
24
,24
9,8
72
57
,19
3,7
33
85
2,8
07
8,0
46
,54
01
6,2
03
,33
2
Pla
nt a
nd
Ma
chin
ery
61
5,1
97
,10
0(2
,50
0,0
00
)6
10
,46
2,1
00
10
36
5,0
92
,25
0(2
87
,50
0)
24
,47
7,0
17
38
8,9
69
,58
72
21
,49
2,5
13
26
5,0
00
(2,5
00
,00
0)
(31
2,1
80
)
Ele
ctrica
l in
sta
llatio
n2
2,1
79
,91
92
2,1
79
,91
91
01
2,6
67
,67
59
51
,22
41
3,6
18
,89
98
,56
1,0
20
La
bo
rato
ry e
qu
ipm
en
ts2
4,9
88
,32
42
4,9
88
,32
41
01
5,0
88
,32
49
90
,00
01
6,0
78
,32
48
,91
0,0
00
Co
ncr
ete
mix
er
30
0,0
00
30
0,0
00
10
27
0,8
35
2,9
17
27
3,7
52
26
,24
9
veh
icle
s1
3,8
34
,76
71
3,8
34
,76
71
511
,97
5,1
99
27
8,9
35
12
,25
4,1
34
1,5
80
,63
3
Tu
be
we
ll1
,29
2,8
80
1,2
92
,88
01
05
10
,43
27
8,2
45
58
8,6
77
70
4,2
03
Arm
s &
am
mu
niti
on
27
,35
02
7,3
50
10
21
,07
06
28
21
,69
85
,65
2
Cyc
les
11,8
80
11,8
80
20
11,1
81
14
011
,32
15
59
Too
ls &
eq
uip
me
nts
15
4,9
60
15
4,9
60
10
13
9,7
64
1,5
20
14
1,2
84
13
,67
6
Fu
rnitu
re &
Fix
ture
6,2
60
,30
76
1,5
00
6,3
21
,80
71
04
,17
4,8
02
21
4,7
01
4,3
89
,50
31
,93
2,3
05
Ru
pe
es
Jun
e-2
01
28
62
,67
5,3
21
(5,0
00
,00
0)
32
6,5
00
85
8,0
01
,82
14
73
,81
3,2
25
(59
9,6
80
)3
4,8
64
,25
85
08
,07
7,8
03
We
igh
ing
sca
les
23
3,2
00
23
3,2
00
10
20
8,6
15
2,4
59
211
,07
42
2,1
27
3
49
,92
4,0
18
Ru
pe
es
Jun
e-2
011
85
9,3
83
,78
5-
3,2
91
,53
68
62
,67
5,3
21
43
4,9
58
,90
2-
38
,85
4,3
21
47
3,8
13
,22
33
88
,86
2,0
98
De
pre
cia
tion
fo
r th
e y
ea
r h
as
be
en
allo
cate
d a
s fo
llow
s:
Ju
ne
Ju
ne
20
12
20
11
Ru
pe
es
Co
st o
f g
oo
ds
sold
33
,81
8,3
30
37
,68
8,6
91
Se
llin
g e
xpe
nse
s3
48
,64
3
38
8,5
42
Ad
min
istr
atio
n e
xpe
nse
s6
97
,28
5
77
7,0
88
34
,86
4,2
58
38
,85
4,3
21
Writte
n d
ow
n
valu
e a
s a
t
Jun
e 3
0, 2
01
2
26
Khalid Siraj TEXTILE MILLS LIMITED
i
tt
e
fa
q
Tota
l
14
27
Khalid Siraj TEXTILE MILLS LIMITED
i
tt
e
fa
q
14
.02
If th
e ite
ms o
f p
rop
ert
y, p
lan
t a
nd
eq
uip
me
nt th
at h
ave
be
en
ca
rrie
d a
t re
va
lue
d a
mo
un
t w
ere
me
asu
red
at co
st m
od
el ,
th
e c
arr
yin
g a
mo
un
ts w
ou
ld b
e a
s fo
llow
s:
co
st
Accu
mu
late
d
De
pre
cia
tio
n
Ca
rryin
g
am
ou
nt
co
st
Accu
mu
late
d
De
pre
cia
tio
nC
arr
yin
g a
mo
un
t
La
nd
1,0
64
,29
7
-
1
,06
4,2
97
1
,06
4,2
97
-
1,0
64
,29
7
Bu
ildin
g: F
acto
ry
33
,73
5,5
04
2
4,4
95
,46
3
9,2
40
,04
1
33
,73
5,5
04
2
2,2
68
,60
3
11,4
66
,90
1
Oth
er
7,3
80
,82
8
5,4
99
,26
0
1,8
81
,56
9
7,3
80
,82
8
5,2
37
,39
0
2,1
43
,43
8
Pla
nt a
nd
Ma
ch
ine
ry3
18
,32
3,2
22
2
61
,18
8,8
03
5
7,1
34
,41
9
31
8,3
23
,22
2
23
7,4
44
,36
6
80
,87
8,8
56
Ele
ctr
ica
l in
sta
llatio
n5
,96
5,2
35
4
,43
8,9
36
1
,52
6,2
99
5
,96
5,2
35
4
,03
5,3
96
1
,92
9,8
39
La
bo
rato
ry e
qu
ipm
en
ts6
,69
2,9
87
6
,62
2,1
87
7
0,8
00
6,6
92
,98
7
6,0
20
,17
0
67
2,8
17
37
3,1
62
,07
3
30
2,2
44
,64
8
70
,91
7,4
25
37
3,1
62
,07
3
27
5,0
05
,92
5
98
,15
6,1
48
14
.03
Asse
ts d
isp
ose
d o
f d
urin
g th
e y
ea
r:
Na
me
of b
uye
rC
ost
W.D
.VS
ale
s p
roce
ed
Ga
in a
nd
lo
ss
Mo
de
of p
aym
en
t
Mu
lti P
ow
er
En
gin
ee
rin
g
3,2
51
,21
0
1,0
38
,71
0
2,2
12
,50
0
1,6
50
,00
0
56
2,5
00
ca
sh
Po
we
r C
AT
En
erg
y S
yste
ms
3,2
51
,21
0
1,0
63
,39
0
2,1
87
,82
0
2,1
00
,00
0
87
,82
0
ca
sh
6,5
02
,42
0
2,1
02
,10
0
4,4
00
,32
0
3,7
50
,00
0
65
0,3
20
Accu
mu
late
d
de
pre
cia
tio
n
20
12
20
11
Pa
rtic
ula
rs
STORES, SPARES AND PACKING MATERIAL
Stores
Spares
Packing material
STOCK IN TRADE17
Cotton waste purchased
Work in process
Cotton Waste Produced
TRADE DEBTS-unsecured and considered Goods18
ADVANCES -Considered Good
Advances to:
Suppliers
Contractors
TRADE DEPOSITS AND SHORT TERM PREPAYMENTS
19
Trade Deposits
Short term Prepayments
OTHER RECEIVABLES
20
Excise Duty
Sales-tax -Net
Raw material Cotton
Finished Goods and waste
1,825,232
22,144,078
13,679,752
37,649,062
18,445,431
18,372,557
15,804,380
6,161,400
269,169
59,052,936
8,519,036
8,519,036
59,560
-
59,560
1,271,175
507,100
1,778,275
300,713
2,499,736
2,800,449
15 DUE FROM ASSOCIATED UNDERTAKINGS
This represents the amount receivable from various companies which were previously associated undertakings but have now been allocated by the Honorable Lahore High Court, Lahore to other families of Ex- Ittefaq Group. However, the matter is still under litigation.
NOTE 2012 2011
2012 2011
Rupees
16
21
CASH AND BANK BALANCES
Cash In hand
Balances with bank
1,103,220
2,742,135
3,845,355
1,027,149
24,189,615
13,607,776
38,824,540
11,402,177
1,841,560
7,396,933
2,678,940
1,672,232
24,991,842
8,435,220
8,435,220
-
174,409
174,409
979,814
1,249,138
2,228,952
300,713
1,422,403
1,723,116
990,008
4,702,497
5,692,505
22
-
-
28
Khalid Siraj TEXTILE MILLS LIMITED
i
tt
e
fa
q
29
Khalid Siraj TEXTILE MILLS LIMITED
i
tt
e
fa
q
24.01
24.02
14.01
SALES23
Less:Commission
COST OF SALES24
Raw material consumed
Stores, Spares and packing material consumed
Fuel and power
Salaries and wages
Insurance
Repairs and maintenance
Factory Expenses
Depreciation
Yarn
Waste
Polyester
780,701,041
677,790
16,037,651
797,416,482
(974,797)
796,441,685
600,724,555
15,572,465
96,614,241
64,826,702
1,283,260
1,270,719
1,536,167
33,818,330
815,646,439
Work in process
opening stock
Closing Stock
Finished goods
opening stock
Closing Stock
24.01 Raw Material Consumed
Purchase
Closing Stock
24.02 Store Spares Consumed
Purchase
Closing Stock
Opening Stock
Opening Stock
7,396,933
(15,804,380)
(8,407,447)
4,351,172
(6,430,569)
(2,079,397)
805,159,595
13,243,737
624,298,805
637,542,542
(36,817,987)
600,724,555
38,824,540
14,396,987
53,221,527
(37,649,062)
15,572,465
NOTE 2012 2011
Rupees
1,088,269,212
25,401,263
1,113,670,475
(2,955,933)
1,110,714,542
918,196,788
14,688,654
89,195,921
63,063,575
1,999,615
1,266,261
2,155,779
37,688,691
1,128,255,284
5,412,062
(7,396,933)
(1,984,871)
5,200,440
(4,351,172)
849,268
1,127,119,681
7,549,219
923,891,306
931,440,525
(13,243,737)
918,196,788
39,484,628
14,028,566
53,513,194
(38,824,540)
14,688,654
30
Khalid Siraj TEXTILE MILLS LIMITED
i
tt
e
fa
q
1,196,476
-
186,922
147,773
-
14.01 348,643
1,879,814
840,000
6,659,152
535,950
170,688
140,825
331,773
149,271
72,547
18,024
301,081
695,536
836,349
237,138
26.01 597,400
26.02 -
82,395
14.01 697,285
650,320
192,607
13,208,341
500,000
40,000
30,000
27,400
597,400
25 DISTRIBUTION COST
Salaries and other benefits
Inland transportation
Postage, telegram and telephone
Freight and octroi
Depreciation
26 ADMINISTRAVTIVE EXPENSES
Director remuneration
Salaries and other benefits
Repair and maintenance
Electricity
26.01
26.02
Electricity
Annual audit fee
Advertisement
Depreciation
Vehicles running and maintenance
Newspaper and periodicals
Entertainment
Half year reviews
Impairment loss
Auditors’ Remuneration
Fee taxes and subscription
Legal and professional fee
Traveling and conveyance
Printing and stationery
Telephone and fax
Miscellaneous expense
Postage and courier
Charity and donation
Code of corporate
Governance review
Out of pocket expenses
The directors and their spouses do not have any interest in the donee.
Auditors’ remuneration
847,963
168,800
291,563
187,789
5,530
388,542
1,890,187
840,000
7,180,090
632,944
187,789
191,887
239,640
220,772
59,176
11,615
252,794
734,677
464,278
617,004
597,400
10,000
88,668
777,088
1,771,041
14,876,863
500,000
40,000
30,000
27,400
597,400
NOTE 2012 2011
Rupees
31
Khalid Siraj TEXTILE MILLS LIMITED
i
tt
e
fa
q
NOTE 2012 2011
-
-
1,996
14,401,481
-
414,665 593,365
14,818,142
7,974,165
(3,279,834) (12,249,114)
4,694,331 (771,673)
(38,624,207)
7,974,165
-
(3,279,834) (12,249,114)
4,694,331
(43,318,538)
10,700,000
630,190
630,190
1,041,339
17,348,105
43,195
19,026,004
11,477,441
51,568,003
11,136,705
340,736
(771,673)
(50,796,330)
10,700,000 -
(4.05) (4.75)
Rupees
OTHER OPERATING INCOME27
FINANCE COST28
TAXATION29
Current
Deferred
29.01 Relationship between accounting and tax expense
Accounting loss before taxation
Tax at the applicable rate of 1% (2011:1%)
Tax effects of ;
Flood Surcharge levied
Deferred Tax
LOSS PER SHARE30
Loss after taxation
Weighted average no. of ordinary shares
Loss per share-Basic
Income from disposal of fixed assets other than financial assets
Mark up on loan term loan
Mark up on short term borrowings
Lease financial charges
Bank charges
31 TRANSACTIONS WITH RELATED PARTIES
The related parties comprise associated undertakings, other related parties, directors, key management personnel and employees f und s . Amount due from and due to these undertakings are shown under receivables and payables. Transactions with related parties during the year, other than those which have been disclosed elsewhere in these financial statements, are as follows.
Associated Undertakings
Purchases
Sales
Transfer of funds
Receipts of funds
Key management personnel
Rumeneration including fees
Housing and utilities
266,676
95,759,420
277,519
96,357,196
560,000
280,000
967,555
74,691,018
7,900,000
5,856,250
560,000
280,000
32
Khalid Siraj TEXTILE MILLS LIMITED
i
tt
e
fa
q
Directors Directors
-
Total 850,000 -
Number of persons 1
2 1
32.1 The Chief Executive Officer has been provided with company maintained car
Chief ExecutiveChief Executive
2012 2011
Managerial remuneration - Executives (Rupees) - 560,000 - 560,000
House rent - 224,000 - 224,000
Utilities - 56,000 - 56,000
Board meeting fee 10,000 - 20,000
860,000
2
RupeesPLANT CAPACITY AND PRODUCTION33
Plant capacity
UNAVAILED CREDIT FACILITY34
Short term running finance
FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES35
35.01 Financial risk factors
2012
64,820,648
2011
Number of spindles installed 17,280 17,280
Number of spindles operated during the year. 17,280 17,280
Installed capacity at 20/s count 4,668,2244,668,224
Number of days worked during the year 356 359
weight of yarn counts actually produced during the year converted into 20/s based on
three shifts per day 3,764,484 3,944,171
91,620,725
The Company’s activities expose it to a variety of financial risks: market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The Company’s overall risk management programme focuses on having cost effective funding as well as to manage financial risk to minimize earnings volatility and provide maximum return to shareholders.
Risk management is carried out by the Company’s finance department under policies approved by the Board of Directors. 35.02 Market risk
(i) Currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Currency risk arises mainly from future commercial transactions or receivables and payables that exist due to transactions in foreign currency.
(ii) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. As the Company has no significant interest-bearing assets, the Company’s income and operating
cash flows are substantially independent of changes in market interest rates.
(iii) Other price risk
Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from currency risk or interest rate risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. The Company is not exposed to commodity price risk since it has a diverse portfolio of commodity suppliers.
CHIEF EXECUTIVE'S, DIRECTORS' AND EXECUTIVES' REMUNERATION32
33
Khalid Siraj TEXTILE MILLS LIMITED
i
tt
e
fa
q
35.03 Credit risk
Credit risk represents the accounting loss that would be recognized at the reporting date if counter parties fail to perform as contracted and arises principally from trade and other receivables. The Company policy is to enter into financial contracts with reputable counter parties in accordance with the internal guidelines and regulatory requirements.
The maximum exposure to credit risk at the reporting date was as follows:
The credit quality of company's Bank balances can be assessed with reference to external credit ratings are as follows:
Rating
agency
PACRA
PACRA
JCR-VIS
PACRA
JCR-VIS
PACRA
PACRA
PACRA
PACRA
Rupees
A1+
A1+
A1+
A1+
A1+
A1+
A1+
A1+
A1+
Short TermBorrowings
AA
AA
AA+
AA+
AAA
AA-
AAA
AA
AA+
Long TermLoans
Trade debts
Advances
Trade deposits
other receivables
ASKARI BANK LIMITED
BANK ALFALAH LIMITED
HABIB BANK LIMITED
MCB BANK LIMITED
NATIONAL BANK LIMITED
SONERI BANK LIMITED
STANDARD CHARTERED BANK LIMITED
FAYSAL BANK LIMITED
HABIB METROPOLITAN BANK LIMITED
Bank
Balance with banks on
current account
1,936,000 Long term deposits 1,979,700
2012
8,519,036
59,560
1,271,175
2,800,449
2,742,135
17,328,355
2011
8,435,220
174,409
979,814
1,723,116
4,702,497
17,994,756
Rating
35.04 Liquidity risk
Liquidity risk represents the risk that the Company will encounter difficulties in meeting obligations associated with financial liabilities. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities. Due to growing nature of the businesses the Company maintains flexibility in funding by maintaining committed credit lines available. At the reporting date the company had Rs.160 million available borrowing limits from financial institutions and Rs.3.845 million cash and bank balances.
35.05 Fair value estimation
The carrying value of financial instruments reflected in the financial statements approximate their fair value. Fair value is determined on the basis of objective evidence at each reporting date. The fair value of financial instruments traded in active markets is based on quoted market price at the balance sheet date. However , the company does not hold any quoted financial instruments.
34
Khalid Siraj TEXTILE MILLS LIMITED
i
tt
e
fa
q
Financial assets and liabilities
Financial assets
Total - - - 13,695,126 17,586,727 31,281,853 31,281,853
Financial Liabilities
Total 95,179,352 - 95,179,352 89,188,715 185,403,789 274,592,504 369,771,856
Financial assets
Total 17,630,427 15,281,948 32,912,375 32,912,375
- - - 59,560 - 59,560 59,560 Advances
- - - - 144,535,612 144,535,612 144,535,612 Sponsor loan
- - - - 32,329,798 32,329,798 32,329,798 Due To associated undertaking
- - - - 8,538,379 8,538,379 8,538,379 Staff retirement gratuity
- - - 85,646,481 - 85,646,481 85,646,481 Trade and other payables
- - - 3,542,234 - 3,542,234 3,542,234 Accrued Mark up
95,179,352 - 95,179,352 - - - 95,179,352 Short term borrowings
- - - 3,845,355 - 3,845,355 3,845,355 Cash and bank balances
- - - - 1,979,700 1,979,700 1,979,700 Long term deposit - - - - 15,650,727 15,650,727 15,650,727 Due from Ex associated
undertakings - - - - 8,435,220 8,435,220 8,435,220 Trade debts
- - - - 979,814 979,814 979,814 Trade deposits - - - - 5,692,505 5,692,505 5,692,505 Cash and bank balances
- - - - 174,409 174,409 174,409 Advances
- - - 8,519,036 - 8,519,036 8,519,036 Trade debts
- - - 1,271,175 - 1,271,175 1,271,175 Trade deposits
- - - - 15,650,727 15,650,727 15,650,727 Due from Ex associated undertakings
- - - - 1,936,000 1,936,000 1,936,000 Long term deposit
68,379,275 - 68,379,275 72,449,589 195,620,606 268,070,195 336,449,470
Financial Liabilities - - - - 156,072,362 156,072,362 156,072,362 Sponsor loan
68,379,275 - 68,379,275 - - - 68,379,275 Short term borrowings
- - - 5,024,011 - 5,024,011 5,024,011 Accrued Mark up
- - - - 7,218,446 7,218,446 7,218,446 Staff retirement gratuity - - - - 67,425,578 67,425,578 67,425,578 Trade and other payables
- - - - 32,329,798 32,329,798 32,329,798 Due To associated undertaking
Maturity up to
one year
Maturity after one
year
SubTotal
SubTotal
Interest /Mark up Bearing
2012
Total
Non- interest / Mark up Bearing
Maturity after one
year
Maturity up to
one year
(Rupees)
35.6
Maturity up to
one year
Maturity after one
year
SubTotal
SubTotal
Interest /Mark up Bearing
2011
Total
Non- interest / Mark up Bearing
Maturity after one
year
Maturity up to
one year
(Rupees)
35
Khalid Siraj TEXTILE MILLS LIMITED
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CAPITAL RISK MANAGEMENT
The Company's objectives when managing capital are to safeguard the company's ability to continue as on going concern in order to to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure the company may adjust the amount of dividend paid to shareholders, issue new shares and other measures commonsurating to the circumstances. The company monitors the capital structure on the basis of gearing ratio. This ratio is calculated as borrowings divided by total capital employed. Borrowings represents long term financing obtained by the company from ex- directors of the company and short term borrowings from banks as referred to in the note 6 and 12. Total capital employed includes total equity as shown in the balance sheet plus 'borrowing'.
209,314,964
(67,628,294)
141,686,670
147.73
Re-stated
194,051,637
(40,700,267)
153,351,370
126.54Gearing ratio
Borrowing
Total equity
Total capital employed
NOTE 2012 2011
Rupees
36
37 AUTHORIZATION OF FINANCIAL STATEMENTS
These Financial Statements have been authorized for issue by the Board of Directors of the Company on October 04 , 2012.
38 GENERAL
38.01 Figures have been rounded off to the nearest of rupees;
38.02 Comparative figures have been rearranged / reclassified, wherever necessary, to facilitate comparison. During the year
surplus on revaluation of fixed assets has re arranged from their grouping to individual assets.
38.03 During the year the company had reverse the transaction for surplus on revaluation of Land that has understated in previous
years and charged this effect to deferred tax liability. Now due to incorporation of this effect surplus on revaluation of land has
increased by Rs.8,664,162 and deferred tax liabilty decreased by Rs. 8,664,162.The effect of the restatement on the financial
statement is summarized below. There is no effect in 2012.
Effect on 2011
Balance Sheet
(increase )/ Decrease in Deferred Liability (8,664,162)
increase / (Decrease) in revaluation surplus 8,664,162
38.04 Moreover the Company has overstated retained earning and understated surplus on revaluation of fixed assets in previous
years by Rs.4,850,055, Rs.11,314,402 and Rs.10,184,969 in 2008, 2009 and 2010 respectively. Now the total effect of Rs.
Rs.26,349,426 has reversed back and Surplus on revaluation of fixed assets has increased by Rs.26,349,426 and retained
earning has decreased by Rs.26,349,426.
Balance Sheet
Decrease in retained earning (26,349,426)
increase in Surplus on revaluation of Fixed Assets 26,349,426
CHIEF EXECUTIVE DIRECTOR
FORM OF PROXY
No. of Shares Please Quote Folio No.
I/We
a member(s) of KHALID SIRAJ TEXTILE MILLS LIMITED and holding
ordinary shares, as per Register folio / CDC A/c No.
hereby appoint Mr.
of failing his
who is also a member of the company vide Register Folio / CDC A/c No.
proxy to vote for me/us and on my/our behalf at the 25th Annual General Meeting of
on 31st October 2012 at 10:30 a.m. and at any adjournment thereof
the Company to held
of
of
of
as my/our
As witness my/our hand this day of 2012.
REVENUE
STAMP 1. Witness
2. Witness
SIGNATURE OF MEMBER (S)
A member entitled to attend a General Meeting is entitled to appoint a proxy to attend and vote instead of his behalf. No person shall act as proxy (except for a corporation) unless he is entitled to be present and vote in his own right.
The instrument appointing a proxy should be signed by the member or by his attorney duly authorised in writing. If the member is a corporation its common seal (if any) should be affixed to the instrument.
The proxies shall be lodged with the company not later than 48 hours before the time of meeting.
For CDC account holders:
-
-
-
The proxy form shall be witnessed by two persons where names, addresses and CNIC numbershall be mentioned on the form.
Attested copies of CNIC or the passport of the beneficial owners and the proxy shall be furnished with the proxy form.
The proxy shall produce his/her original CNIC or original passport at the time of meeting.
Khalid Siraj TEXTILE MILLS LIMITED
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