CHBL FS 2018
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Uzair AhmedCHBL FS 2018
Uploaded by
Uzair AhmedFINANCIAL
STATEMENTS
2018
Contents
Com pany Informat ion 01
Vision and Miss ion Stat em ents 02
Financi al Highlight s 03
Not ice of Extra Ordinary General Meet ing 04
Direct or’s Report to the M em ber s 05
Direct or’ s Report in Urdu 08
Auditor’ s Report to member 11
Balance Sheet 18
Profit & Loss Account 20
Statem ent of Com prehens ive Incom e 21
Cas h F low St at em ent 22
St at em ent of Changing in Equit y 24
Notes to the Financi al St at em ent 25
Pattern of Shareholding (Ordinary Shares ) 47
Pattern of Shareholding ( Preference Shares ) 49
Form of P roxy 51
Company Information
Mian Muhammad Latif
Mian Muhammad Javaid Iqbal
Mr. Muhammad Naeem
Mr. Muhammad Faisal Latif
Mr. Muhammad Farhan Latif
Mr. Muhammad Zeeshan Latif
Mr. Tariq Ayub Khan
Major Bankers Allied Bank Limited.
Askari Bank Limited.
AlBaraka Bank (Pakistan) Limited.
Citibank, N.A.
Faysal Bank Limited.
First Credit & Investment Bank Limited.
Habib Bank Limited.
Habib Metropolitan Bank Limited.
KASB Bank Limited.
National Bank of Pakistan.
NIB Bank Limited.
Orix Leasing (Pakistan) Limited.
Pak Oman Investment Company Limited.
Pak Kuwait Investment Company (Pvt.) Limited.
Pak Libya Holding Company (Pvt.) Limited.
Saudi Pak Industrial & Agricultural Investment
Silk Bank Limited.
Standard Chartered Bank (Pakistan) Limited.
The Bank of Punjab.
United Bank Limited.
Company Secretary/ Mr. Muhammad Arshad
Chief Financial Officer
Auditors Rahman Sarfaraz Rahim Iqbal Rafiq
Chartered Accountants.
Shares Registrar F.D. Registrar Services (SMC-Pvt.) Limited
Office # 1705, 17th Floor, Saima Trade
Tower-A, I.I. Chundrigar Road, Karachi.
Tel:021-32271905-6/021-35478192-3
Registered Office Nishatabad, Faisalabad.
Tel:+92 41 8754472-8
Fax:+92 41 8752400, 8752700
chenab@[Link]
Website Address [Link]
Works -Spinning Unit - Toba Tek Singh.
-Weaving Unit - Kharianwala, Distt: Sheikhupura.
-Weaving Unit - Shahkot, Distt: Nankana Sahib.
-Processing & Stitching Units – Nishatabad, Fsd.
Vision
To be a competi tive and customer focused organi zat ion wi th conti nui ng
commi tment to excellence and standar ds.
Miss ion S tatement
. To be the business house of fi r st choice for customers .
. To be a change leader.
. To produce innovati ve, r elevant and cost effe cti ve product s.
. Setti ng and mainta ini ng hi gh sta ndar ds.
. To ear n pr ofit s by achi eving opti mum level of pr oducti on by using stat e
of ar e technologies.
. To pr ovide ideal work ing conditi ons to employees and to ta ke car e in
thei r car eer planni ng and r ewar d them according to thei r skill and
r esponsibility .
. To meet social and cul tur al obligat ions towa r ds society being a
patr ioti c and conscienti ous corporate citi zens.
Fianancial Highlights
2018 2017 2016 2015 2014 2013 2012
Operational performance
Sales-net 915,910 1,764,452 2,007,632 2,213,846 2,265,551 2,171,725 2,606,632
Cost of sales 1,081,015 2,493,141 2,259,157 2,575,659 2,515,062 2,546,224 3,943,890
Gross profit (165,105) (728,689) (251,525) (361,813) (249,511) (374,499) (1,337,258)
Operation (loss) / profit (303,610) (868,913) (99,201) (206,345) (129,634) (226,525) (1,316,787)
Loss/Profit before taxtion (261,067) (970,676) (379,230) (466,824) (389,041) (488,509) (1,672,947)
Loss/Profit after taxtion (20,791) (992,228) (389,703) (479,385) (399,289) (493,799) (1,690,468)
Financial position
Property,Plant and equipment 10,993,406 11,185,697 10,848,916 11,052,466 11,046,052 11,253,800 11,462,209
Capital work in progress - - - - - - -
Long term deposits 12,637 12,637 12,637 12,637 12,637 12,637 8,805
Fixed capital expenditure 11,006,043 11,198,334 10,861,553 11,065,103 11,058,689 11,266,437 11,471,014
Total assets 12,928,842 13,147,032 13,467,685 13,798,837 14,487,041 15,045,669 15,495,014
Current asset
Store,spare parts and
stocks in trade 65,984 100,140 756,931 870,072 1,086,824 1,185,960 1,370,828
Other current assets 1,838,025 1,820,136 1,824,970 1,836,361 2,303,428 2,576,549 2,623,465
Cash and cash equivalents 18,790 28,422 24,231 27,301 38,100 16,723 29,707
Total 1,922,799 1,948,698 2,606,132 2,733,734 3,428,352 3,779,232 4,024,000
Current liabilities
Short term bank borrowing 4,342,494 4,342,499 4,988,748 5,785,580 5,681,149 5,746,683 5,570,582
Currant portion of long term
loans/morabaha 2,981,040 2,784,879 2,757,063 2,675,537 2,416,944 2,054,106 1,716,298
Other current liabilities 3,242,212 3,133,986 2,842,071 2,385,471 2,972,167 3155952 3,309,028
Total 10,565,746 10,261,364 10,587,882 10,846,588 11,070,260 10,956,741 10,595,908
Net working capital (8,642,947) (8,312,666) (7,981,750) (8,112,854) (7,641,908) (7,177,509) (6,571,908)
Long term loans/Finance lease,
morabaha 3,400,162 2,708,314 2,353,982 2,086,486 2,378,188 2,786,025 3,196,416
Shareholder's equity 1,047,380 6,547,438 (5,588,895) (5,244,931) (4,781,852) (4,428,460) (3,965,244)
8,661,555 8,996,729 9,975,182 10,622,892 11,135,666
Profiability analysis
Gross profit to sale (%) (18.03) (41.30) (12.53) (16.34) (11.01) (17.24) (51.30)
Loss/Profit befor tax to sales (%) (28.50) (55.01) (18.89) (21.09) (17.17) (22.49) (64.18)
Loss/Profit after tax to sales (%) (2.27) (56.23) (19.41) (21.65) (17.62) (22.74) (64.85)
Return on Investment (%) (0.16) (7.55) (2.89) (3.47) (2.76) (3.28) (10.91)
Return on equity (%) (1.99) (15.15) 6.97 9.14 8.35 11.15 42.63
Earnings per share(Rupees) (0.18) (8.63) (3.39) (4.17) (3.47) (4.29) (14.70)
Financial analysis
Current ratio(time) 0.18 0.19 0.25 0.25 0.31 0.34 0.38
Debt to equity (time) 6.09 0.84 (0.91) (0.91) (1.00) (1.09) (1.24)
Total Debt to Total Assets 0.49 0.42 0.38 0.35 0.33 0.32 0.32
Total Debt to Fixed Assets 0.58 0.49 0.47 0.43 0.43 0.43 0.43
NOTICE OF EXTRA ORDINARY GENERAL MEETING
Notice is hereby given that the Extra Ordinary General Meeting of the shareholders of CHENAB
LIMITED will be held at 02.00 P.M. on Friday the 28 January, 2022 at Registered Office of the
Company i.e, Nishatabad, Faisalabad to transact the following business:-
1. To confirm the minutes of the last meeting.
To consider and approve the annual audited financial statements of the company for the
year ended June 30, 2018 along with auditor’s report and reply to the Audit observations
thereon audited by M/s. Rahman Sarfaraz Rahim Iqbal Rafiq, Chartered Accountants,
Lahore who were appointed by the High Court Lahore on the requirement of Joint Official
Liquidators.
2. To appoint, Auditors for the next financial year 2018-19 and to fix their remuneration. M/s
Avais Hyder Liaquat Nauman, Charted Accountants 478-D Peoples Colony No.1,
Faisalabad has given their consent for appointment as auditors of the company for the year
2018-19.
3. To transact any other business with the permission of chair.
FOR AND ON BEHALF OF
CHENAB LIMITED
FAISALABAD (MUHAMMAD ARSHAD)
JANUARY 03, 2022 COMPANY SECRETARY
NOTES:
.
1) A member entitled to attend and vote at the meeting may appoint a proxy to attend and
vote instead of him/her at the meeting. Proxies must be deposited at the Company’s
Registered Office not less than 48 hours before the time for holding the meeting. A proxy
must be a member of the company.
2) Shareholders whose shares are deposited with Central Depository Company (CDC), or
their Proxies are requested to bring their original National Identity Cards (CNICs) or
Passports alongwith the Participants ID numbers and their account numbers at the time
of attending the Extra Ordinary General Meeting for verification.
3) All other members should bring their Original National Identity Cards for identification
purpose.
4) The shareholders are requested to notify the company immediately the change in their
address, if any.
DIRECTORS’ REPORT TO THE MEMBERS
The directors take the opportunity to present before you report and audited accounts of the company for the year ended
June 30, 2018. The Company had gone under Liquidation by the Lahore High Court Lahore vide its order dated 13-07-
2017, which was reversed on 29-10-2021.
SALES REVENUE
Sales revenue of Rs.916 million has been earned during the year as compared to Rs.1.764 billion achieved during the
preceding year showing 48.10% decrease due to unfavorable circumstances.
FINANCIAL RESULTS AND REASONS FOR LOSS
Due to losses, the working capital resources of the company have diluted and the company could not execute entire
available export orders due to continual paucity of funds.
In view of adverse situation, the company has sustained financial loss of Rs.282 million as compared with previous year
loss of Rs.992 million.
However, the financial results for the year ended June 30, 2018 with comparative figures are as follows:-
2018 2017
Rupees Rupees
Sales 915,909,663 1,764,452,242
Cost of sales (1,081,014,516) (2,493,140,675)
Gross loss (165,104,853) (728,688,433)
Operating expenses
Selling and distribution expenses (23,129,309) (12,761,833)
Administrative expenses (115,376,342) (127,462,763)
(138,505,651) (140,224,596)
Operating Loss (303,610,504) (868,913,029)
Other income 51,759,846 35,374,118
Finance cost (9,217,078) (137,136,592)
Loss before taxation (261,067,736) (970,675,503)
Provision for taxation (20,791,224) (21,552,801)
Loss for the year after
taxation (281,858,960) (992,228,304)
Earnings per share- Basic& diluted (2.45) (8.63)
DIVIDEND ON PREFERENCE SHARES
In view of financial losses the payment of dividend on non voting cumulative preference shares has been deferred till the
availability of profits for appropriation.
NON PAYMENT OF DEBT OBLIGATIONS
Due to financial losses sustained by the company, it could not pay debt obligations to its financial creditors in accordance
with terms of loan agreements. Accordingly the Lahore High Court Lahore issued winding up order dated 13-07-2017 on
the complaint of one of its small creditors.
A BRIEF ON REVIVAL OF THE COMPANY
Earlier, Lahore High Court Lahore vide its order dated 13-07-2017 announced the winding up of the company in a petition
filed by a small creditor of the company. However, the major banks of the company did not consider the winding up
company as solution for recovery of debt. The banks took into consideration Chenab’s excellent track record for the last
35 years and its great capacity to bounce back to pay all its financial obligations through normal course of business. The
default made by the company in payment of debt was purely due to some un-controllable local & international factors
including past severe energy crises in the country.
Therefore; with consultation of the Sponsors a “Scheme of Arrangement” for the revival of the company was prepared by
the secured creditors and filed in the Lahore High Court, Lahore vide a petition C.O. No. 2660 of 2021. Accordingly, two
separate meetings of the secured creditors and contributories/members were held on 22-02-2021 under the supervision of
two chairmen appointed by Honorable Court wherein the said Scheme was approved by 90.40% of secured creditors in
attendance and 100% of contributories/Members present in person or through proxies. The Court also allowed the said
Scheme and recalled its earlier winding up order.
FUTURE PROSPECTUS
1) The growth of Pakistan textile is expected to increase by about 30% for the current fiscal year. This significant
increase is attributed by the subsidized energy tariff and formation of the conducive policies by the government for
the textile sector. Keeping in view of the potential growth, recently a heavy investment has been seen in the textile
industry. The company is also ready to get the benefit of this good opportunity. No major capital investment is
required by the company. Only some renovation work is needed which has already been started after the
restoration of the corporate status of the company.
2) Working Capital required during initial years have also been arranged through sponsors’ loan, sale of noncore
assets of the company and banks are also committed to provide fresh export based working capital limits as per
requirements.
3) The company has huge production capacity and due to limited working capital arrangements during initial years
the entire capacity cannot be used for own exports/sales. Therefore; the management has planned to run the
available capacity on toll manufacturing basis. The company has good repute for quality products. Therefore; it is
hoped that there will be no shortage of customers requiring the toll manufacturing services.
4) Now with the approval of revival Scheme, a realistic repayment schedule based on actual cash flow of the
company has been fixed for the all lender banks/DFIs of the company. During the next 14 years no heavy markup
like in the past is required to be paid by the company. The intensive litigation of the banks against the company
has come to an end. Now, the management will be in a better position to focus on production/sales and to repay
debt of the company as per schedule.
EXPLANATION TO AUDITORS’ OBSERVATIONS
A. PREFERENCE SHARES.
As per Scheme of arrangement dated 14-09-2021 approved by Honorable Lahore High Court Lahore
position of redemption of preference shares shall be as under
I. Each of the following Lenders currently hold preference shares of the following outstanding amounts
(based on the shares face value):
Lenders Paid-up and outstanding amount of
preference Shares at Face Value
Habib Bank Limited PKR 100,000,000
Askri Bank Limited PKR 100,000,000
National Bank of Pakistan PKR 100,000,000
II. The abovementioned amounts will be repaid to each of the Lenders (and any other preference
shareholder) in equal quarterly installments (over a three (3) year period commencing from the first
calendar quarter end to occur after the repayment of the total Principal Debt in 14 years.
B. SECP has initiated proceedings for investigations under section 257 of the Companies Act, 2017. The company
has challenged the order and the Honourable Islamabad High Court has stayed the proceedings.
C. The management is in regular contact with foreign customers for recovery of old trade debt.
D. Small amount of Balances lying in various Bank Accounts were provided as per books record yet due to litigation
certain Banks did not provide balance confirmation Certificates. There is no material impact on financial
statements for this short coming.
E. Similarly reconciliation statements in respect of stores, stock in trade and other were also provided. Hence
observation is unwarranted.
CORPORATE SOCIAL RESPONSIBILITY
Because of liquidation of the Company the disclosure of above said information is ignored in these Accounts
PATTERN OF SHARHEOLDING
The pattern of shareholding as at June 30, 2018 including the information under the code of corporate governance for
ordinary and non voting cumulative preference shares is annexed.
BOARD OF DIRECTORS AND THEIR MEETING
Because of liquidation of the Company the powers of Board existing at the time of liquidation order has been ceased
under Section 365 of the Companies Act, 2017 therefore no meeting was conducted.
AUDIT COMMITTEE
Because of liquidation of the Company Audit Committee was not functional.
CODE OF CORPORATE GOVERNANCE
Provisions of the code of Corporate Governance were not applicable in view of liquidation of Company.
AUDITORS
The Board has also recommended appointment as External Auditors to M/s Avais Hyder Liaquat Nauman, Chartered
Accountants, Faisalabad of the Company for the next financial year 2018-19.
ACKNOWLEDGEMENT
The board of directors places on record its appreciation for the support of the shareholders, government agencies and
financial institutions.
For and on behalf of
BOARD OF DIRECTORS
FAISALABAD (MIAN MUHAMMAD LATIF)
JANUARY 03, 2022 CHIEF EXECUTIVE
2018 30
29-10-2021 13-07-2017
1.764
916
48.10
30
992 282
2017 2018
2018 2017
915,909,663 1,764,452,242
(1,081,014,516) (2,493,140,675)
(165,104,853) (728,688,433)
(23,129,309) (12,761,833)
(115,376,342) (127,462,763)
(138,505,651) (140,224,596)
(303,610,504) (868,913,029)
51,759,846 35,374,118
(9,217,078) (137,136,592)
(261,067,736) (970,675,503)
(20,791,224) (21,552,801)
(281,858,960) (992,228,304)
. (2.45) . (8.63)
13-07-2017
13-07-2017
35
Co No. 2660/2021
22-02-2021
90.40%
100%
30% -1
-2
/
-3
-4
14-09-2021 (A
(i
Rs:100,000,000
Rs:100,000,000
Rs:100,000,000
14
(ii
.
257 2017
(B
(C
(D
(E
2018 30
3652017
2018-19
20223
BALANCE SHEET
AS AT JUNE 30, 2018
(IN WINDING UP UNDER THE ORDERS OF THE HONOURABLE LAHORE HIGH COURT)
2018 2017
Note Rupees Rupees
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorised capital
120,000,000 ordinary shares
of Rs.10/- each 1,200,000,000 1,200,000,000
80,000,000 cumulative preference
shares of Rs.10/- each 800,000,000 800,000,000
Issued, subscribed
and paid up capital 3 1,150,000,000 1,150,000,000
Cumulative preference shares 4 800,000,000 800,000,000
Surplus on revaluation of
property, plant and equipment 5 5,739,343,363 5,761,095,295
Capital reserves 6 526,409,752 526,409,752
Revenue reserves 7 (9,263,133,935) (9,023,847,363)
(1,047,380,820) (786,342,316)
NON-CURRENT LIABILITIES
Long term financing 8 2,448,167,352 2,708,314,404
Liabilities against assets
subject to finance lease 9 - -
Deferred liabilities 10 951,995,760 953,382,223
Deferred revenue 10,314,720 10,314,720
3,410,477,832 3,672,011,347
CURRENT LIABILITIES
Trade and other payables 11 1,972,091,940 1,925,390,330
Unclaimed dividend 366,071 366,071
Interest / markup payable 12 1,225,297,876 1,187,067,622
Short term bank borrowings 13 4,344,994,597 4,342,498,926
Current portion of :
Long term financing 8 2,952,338,753 2,754,542,792
Liabilities against assets
subject to finance lease 9 28,702,544 30,335,007
Provision for taxation - income tax 41,953,978 21,162,754
10,565,745,759 10,261,363,502
CONTINGENCIES AND COMMITMENTS 14
12,928,842,771 13,147,032,533
The annexed notes from 1 to 41 form an integral part of these financial statements.
MUHAMMAD NAEEM
(DIRECOR)
2018 2017
Note Rupees Rupees
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
Operating assets 15 10,993,406,655 11,185,697,330
Long term deposits 16 12,636,768 12,636,768
11,006,043,423 11,198,334,098
CURRENT ASSETS
Stores, spares and loose tools 17 36,190,798 67,364,712
Stock in trade 18 29,794,979 32,775,124
Trade debts 19 1,728,209,931 1,705,648,751
Loans and advances 20 51,675,148 41,166,291
Deposits and prepayments 21 10,832,233 12,618,185
Other receivables 22 18,139,386 27,503,488
Tax refunds due from Government 23 29,166,833 33,199,811
Cash and bank balances 24 18,790,040 28,422,073
1,922,799,348 1,948,698,435
12,928,842,771 13,147,032,533
MIAN MUHAMMAD LATIF
(CHIEF EXECUTIVE OFFICER)
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED JUNE 30, 2018
(IN WINDING UP UNDER THE ORDERS OF THE HONOURABLE LAHORE HIGH COURT)
2018 2017
Note Rupees Rupees
Sales 25 915,909,663 1,764,452,242
Cost of sales 26 (1,081,014,516) (2,493,140,675)
Gross loss (165,104,853) (728,688,433)
Operating Expenses
Selling and distribution expenses 27 (23,129,309) (12,761,833)
Administrative expenses 28 (115,376,342) (127,462,763)
(138,505,651) (140,224,596)
Operating Loss (303,610,504) (868,913,029)
Other income 29 51,759,846 35,374,118
Finance cost 30 (9,217,078) (137,136,592)
Loss before taxation (261,067,736) (970,675,503)
Provision for taxation 31 (20,791,224) (21,552,801)
Loss for the year (281,858,960) (992,228,304)
Loss per share- Basic and diluted 32 (2.45) (8.63)
The annexed notes from 1 to 41 form an integral part of these financial statements.
MUHAMMAD NAEEM
MIAN MUHAMMAD LATIF
(DIRECTOR)
(CHIEF EXECUTIVE OFFICER)
Note:
i) These financial statments relates to the liquidation period audit under the supervision of joint Official Liquidators appointe by the
Honourable Lahore High court Lahore
ii) Consequent upon revesal of winding up order dated 29/10/2021 issued by the Honourable Lahore High court Lahore the Board has
adopted these financal Statments
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED JUNE 30, 2018
(IN WINDING UP UNDER THE ORDERS OF THE HONOURABLE LAHORE HIGH COURT)
2018 2017
Note Rupees Rupees
Loss for the year (281,858,960) (992,228,304)
Other comprehensive income for the year
Items that may be subsequently reclassified to profit or loss - -
Items that will not be subsequently reclassified to profit or loss:
Incremental depreciation on revalued assets
for the year - net of deferred tax 21,751,932 22,671,239
Related deferred tax - 4,675,834
Remeasurement of defined benefit liability 20,820,456 7,646,150
Related deferred tax - (1,307,348)
42,572,388 33,685,875
Total comprehensive loss for the year (239,286,572) (958,542,429)
The annexed notes from 1 to 41 form an integral part of these financial statements.
MUHAMMAD NAEEM
MIAN MUHAMMAD LATIF
(DIRECTOR)
(CHIEF EXECUTIVE OFFICER)
Note:
i) These financial statments relates to the liquidation period audit under the supervision of joint Official Liquidators appointe by the
Honourable Lahore High court Lahore
ii) Consequent upon revesal of winding up order dated 29/10/2021 issued by the Honourable Lahore High court Lahore the Board has
adopted these financal Statments
CASH FLOW ST STATEMENT
FOR THE YEAR ENDED JUNE 30, 2018
(IN WINDING UP UNDER THE ORDERS OF THE HONOURABLE LAHORE HIGH COURT)
2018 2017
Rupees Rupees
a) CASH FLOWS FROM OPERATING ACTIVITIES
Loss before taxation (261,067,736) (970,675,503)
Adjustments for:
Depreciation on operating assets 198,549,634 202,956,377
Provision for staff retirement gratuity 37,340,224 39,793,065
Gain on disposal of operating assets (155,603) (363,168)
Finance cost 9,217,078 137,136,592
Balances written back - net - - (19,164,794)
Operating cash flows before working capital changes (16,116,403) (610,317,431)
Changes in working capital
(Increase) / decrease in current assets
Stores, spares and loose tools 31,173,914 354,908,639
Stock in trade 2,980,145 301,882,738
Trade debts (22,561,180) 469,925
Loans and advances (10,508,857) 4,359,302
Deposits and prepayments 1,785,952 (123,171)
Other receivables 9,364,102 (8,722,085)
Tax refunds due from Government 4,032,978 (1,869,800)
16,267,054 650,905,548
Increase in current liabilities
Trade and other payables 32,944,271 229,647,509
49,211,325 880,553,057
Cash generated from operations 33,094,922 270,235,626
Income tax paid - (11,582,184)
Finance cost paid 29,013,176 (20,580,625)
Staff retirement gratuity paid (4,148,892) (7,586,887)
Net cash generated from operating activities 57,959,206 230,485,930
b) CASH FLOWS FROM INVESTING ACTIVITIES
Additions in operating assets (6,453,356) -
Proceeds from disposal of operating assets 350,000 600,000
Net cash generated from / (used in) investing activities (6,103,356) 600,000
2018 2016
Rupees Rupees
c) CASH FLOWS FROM FINANCING ACTIVITIES
Long term financing obtained - 22,690,000
Repayment of :
Long term financing (62,351,091) (185,000,000)
Liabilities against assets subject to finance lease (1,632,463) (2,039,132)
Increase (Decrease) in short term bank borrowings - net 2,495,671 (62,546,349)
Net cash used in financing activities (61,487,883) (226,895,481)
Net (decrease) in cash and cash equivalents (a+b+c) (9,632,033) 4,190,449
Cash and cash equivalents at the beginning of the year 28,422,073 24,231,624
Cash and cash equivalents at the end of the year 18,790,040 28,422,073
The annexed notes from 1 to 41 form an integral part of these financial statements.
MUHAMMAD NAEEM
MIAN MUHAMMAD LATIF
(DIRECTOR)
(CHIEF EXECUTIVE OFFICER)
Note:
i) These financial statments relates to the liquidation period audit under the supervision of joint Official Liquidators appointe by the
Honourable Lahore High court Lahore
ii) Consequent upon revesal of winding up order dated 29/10/2021 issued by the Honourable Lahore High court Lahore the Board has
adopted these financal Statments
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED JUNE 30, 2018
(IN WINDING UP UNDER THE ORDERS OF THE HONOURABLE LAHORE HIGH COURT)
Capital reserves Revenue reserves
Book difference of
Issued, Cumulative Premium on Preference
Surplus on capital under
subscribed and preference issue of shares General Accumulated Total
revaluation of scheme of Sub total Sub total
paid up capital shares ordinary redemption reserve loss
property, plant arrangement for
shares reserve
amalgamation
and equipment
------------------------------------------------------------------------------------------------------ R u p e e s ---------------------------------------------------------------------------------------
Balance as at July 01 2016 1,150,000,000 800,000,000 5,198,671,152 120,000,000 63,552,610 342,857,142 526,409,752 76,432,834 (8,141,737,768) (8,065,304,934) (390,224,030)
Total comprehensive (loss)
for the year
(Loss) for the year - - - - - - - (992,228,304) (992,228,304) (992,228,304)
Other comprehensive income
Items that may be subsequently
reclassified to profit or loss: - - - - - - - - - -
Items that will not be subsequently
reclassified to profit or loss:
Incremental depreciation on
revalued assets for the year - - (22,671,239) - - - - - 22,671,239 22,671,239 -
Related deferred tax surplus - - 45,120,382 - - - - - 4,675,834 4,675,834 49,796,216
Surplus during the year - - 539,975,000 - - - - - - - 539,975,000
Remeasurement of defined benefit liability - - - - - - - 7,646,150 7,646,150 7,646,150
Related deferred tax - - - - - - - (1,307,348) (1,307,348) (1,307,348)
- - 562,424,143 - - - - - (958,542,429) (958,542,429) (396,118,286)
Balance as at June 30, 2017 1,150,000,000 800,000,000 5,761,095,295 120,000,000 63,552,610 342,857,142 526,409,752 76,432,834 (9,100,280,197) (9,023,847,363) (786,342,316)
Total comprehensive (loss)
for the year
(Loss) for the year - - - - - - - (281,858,960) (281,858,960) (281,858,960)
Other comprehensive income
Items that may be subsequently
reclassified to profit or loss: - - - - - - - - - -
Items that will not be subsequently
reclassified to profit or loss:
Incremental depreciation on
revalued assets for the year - - (21,751,932) - - - - - 21,751,932 21,751,932 -
Related deferred tax - - - - - - - - - -
Remeasurement of defined benefit liability - - - - - - - 20,820,456 20,820,456 20,820,456
Related deferred tax - - - - - - - - - -
- - (21,751,932) - - - - - (239,286,572) (239,286,572) (261,038,504)
Balance as at June 30, 2018 1,150,000,000 800,000,000 5,739,343,363 120,000,000 63,552,610 342,857,142 526,409,752 76,432,834 (9,339,566,769) (9,263,133,935) (1,047,380,820)
The annexed notes from 1 to 41 form an integral part of these financial statements.
- -
MUHAMMAD NAEEM
MIAN MUHAMMAD LATIF
(DIRECTOR)
(CHIEF EXECUTIVE OFFICER)
Note:
i) These financial statments relates to the liquidation period audit under the supervision of joint Official Liquidators appointe by the
Honourable Lahore High court Lahore
ii) Consequent upon revesal of winding up order dated 29/10/2021 issued by the Honourable Lahore High court Lahore the Board has
adopted these financal Statments
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2018
(IN WINDING UP UNDER THE ORDERS OF THE HONOURABLE LAHORE HIGH COURT)
1. STATUS AND ACTIVITIES
1.1 Chenab Limited (the Company) is incorporated as a public limited company under the Companies Ordinance, 1984 (Now
Companies Act 2017) and is listed on Pakistan Stock Exchange. The registered office of the Company is situated at Nishatabad,
Faisalabad, in the province of Punjab. The principal business of the Company is export of all kinds of value added fabrics, textile
made-ups, casual and fashion garments duly processed. Geographical location and address of business units/plants are
following:
Discription Location Address
Registered/Head Office Faisalabad Nishatabad, faisalabad
Spinning Unit-I Toba Tek Singh 3 K.M Shorkot Road, Toba Tek Singh
Weaving Unit-1 Kharianwala 11 K.M Main Faisalabad Lahore Road, Kharianwala, Sheikhupura
Weaving Unit-II Nankana Sahib 7 K.M Main Faisalabad Lahore Road, Kotla Kalo Shahkot, Nankana Sahib
Processing & Stitching Units Faisalabad Main Faisalabad Lahore Road, Nishatabad, Faisalabad
1.2 Pursuant to schemes of arrangement approved by the Honourable Lahore High Court, Lahore, assets, liabilities and reserves of
Faisal Weaving (Private) Limited, Latif Weaving (Private) Limited and Chenab Finishing (Private) Limited were merged with the
Company with effect from December 31, 1998 and assets, liabilities and reserves of Chenab Fibres Limited were merged with the
Company with effect from April 01, 2003.
1.3 The Company has incurred net comprehensive loss of Rs.239.287 million. As at June 30, 2018 the accumulated loss of the
Company is Rs.9,263.134 million and the current liabilities exceed its current assets by Rs. 8,642.946 million. The Company has
not redeemed preference shares on exercise of put options for three consecutive years by holders of preference shares due to
tight cash flow situation. The Company has not been able to comply with terms of certain loan agreements. Certain banks and
financial institutions have filed cases for recovery and winding up of the Company which the management is defending. SECP has
initiated proceedings for investigations under the Companies Ordinance, [Link] company has challanged the order and the
Honourable Islamabad High Court has stayed the proceedings. The litigation has also adversely affected the process of
negotiations with banks for extension and re-scheduling of credit facilities.
Management's efforts for making re-scheduling arrangements with all lenders are not so far fully materialised, however the
management has been able to reach at agreement with five major lenders to restructure the loans. The facilities diminishing
musharika, term finance, murabah finance and demand finance were settled. Certain short term facilities were converted to long
term loans. The management is hopeful that arrangements with other lenders will also materialise in due course. The
management is vigorously pursuing the recovery of old outstanding debts and has also adopted the available legal recourse. The
management's efforts to dispose of certain non core fixed assets to meet the working capital requirements has not been
materialised so far due to adverse economic conditions.
On the operational side, the management continued toll manufacturing and making efforts to increase the volume of business.
Additionally, in order to improve liquidity position of the company, the management is also focusing on arranging advance
payments from local as well as export customers. The company could not produce desired results due to operational difficulties
mainly due to non-availability of working capital facilities. Due to low production, the desired results could not be achieved and the
core issue of higher operating cost due to lower production could not be resolved. The management is in regular contact with
foreign customers and making small export shipments. The quantum of export could not be increased despite export orders due to
shortage of working capital and slow settlements with bankers. The management is negotiating with banks for working capital
facilities. The management is confident that the Company will be able to continue as a going concern.
Upon filing application for winding up the company by M/s Saudi Pak Industrial & Agricultural Investment Compnay
Limited,Islamabad before Company Judge, Lahore High Court, Lahore the instant company has gone into liquidation on 13 July
2017 vide its order given in civil original no. 43 of 2011. Consequently, [Link] Mirza,Advocate and [Link] Ahsan, FCA of
M/s Ahsan & Ahsan, Chartered Accountants, Lahore were appointed as official liquidator. Therafter, the ex-management filed an
appeal before Supreme Court of Pakistan against this order and leave of appeal was not granted and dismissed on 08 January
2019.
The official liquidators sought permission for audit of accounts for the year ended 30 June 2018 and M/s Rahman Sarfaraz Rahim
Iqbal Rafiq, Chartered Accountants, Lahore were appointed Auditors.
1.4 These financial statements are presented in Pak Rupee, which is the Company's functional and presentation currency.
1.5 All the significant transactions and events that have affected the company's financial position and performance during the year
have been appropriately disclosed in respective notes.
2. SIGNIFICANT ACCOUNTING POLICIES
2.1 Statement of compliance
These financial statements have been prepared in accordance with the accounting and reporting standards as applicable in
Pakistan. The accounting and reporting standards applicable in Pakistan comprise of
International Financial Reporting Standards(IFRSs) issued by the International Accounting Standards Board (IASB) as
notified under the Companies Act, 2017; and
Provisions of and directives issued under the Companies Act, 2017.
Where provisions of and directives issued under the Companies Act, 2017 differ from the IFRSs, the provisions of and directives
issued under the Companies Act, 2017 have been followed.
2.2 Initial Application of a Standard, Amendment or an Interpretation to an Existing Standard and Forthcoming Requirements
2.2.1 amendments in the statutory financial reporting framework applicable to the Company:
The third and fourth schedule to the Companies Act, 2017 became applicable to the Company for the first time for
thepreparation of these financial statements. The Companies Act, 2017 (including its third and fourth schedule) forms an
integral part of the statutory financial reporting framework applicable to the Company and amongst others, prescribes the
nature and content of disclosures in relation to various elements of the financial statements. Additional disclosures include
but are not limited to,
Note Particular
1 Geographical location and address of business units/plants
2 Significant transactions & events effecting the company's financial position
Particulars of immovable assets of the Company
Management assessment of sufficiency of tax provision in the financial statements
Change in threshold for identification of executives
34 Additional disclosure requirements for related parties
35 Additional disclosure requirements for production capacity
33 Additional disclosure requirements for number of employees
2.2.2 Standards, interpretations that became effictive but are not relevant to the company:
The following standards (revised or amended) and interpretations became effective for the current financial year but are
either not relevant or do not have any material effect on the financial statements of the company other than increased
disclosures in certain cases:
The following standards (revised or amended) and interpretations became effective for the current financial year but
areeither not relevant or do not have any material effect on the financial statements of the company other than increased
disclosures in certain cases:
• IFRS-12 Disclosure of Interests in Other Entities (Amended)
• IAS-7 Statement of Cash Flows (Amended)
• IAS-12 Income Taxes (Amended)
2.2.3 Forthcoming requirements not effective in current year and not considered relevant:
The following standards (revised or amended) and interpretations of approved accounting standards are only effective
foraccounting periods beginning from the dates specified below. These standards are either not relevant to the company’s
operations or are not expected to have significant impact on the company’s financial statements other than
increaseddisclosures in certain cases:
• IFRS 1 - First-time Adoption of International Financial Reporting Standards - (Amended)-(effective for annual periods
beginning on or after 1 January 2018) - Not notified by SECP.
• IFRS 2 - Share Based Payments - (Amended)-(applicable for annual periods beginning on or after 1 January 2018).
• IFRS 3 - Business Combinations - (Amended)-(applicable for annual periods beginning on or after 1 January 2019)
(IFRS 17 will replace IFRS 4 as of 1 January 2021).
• IFRS 4 - Insurance contracts - (Amended)-(applicable for annual periods beginning on or after 1 January 2018)- Not
notified by SECP.
• IFRS 9 - Financial Instruments: Classification and Measurements - (applicable for annual periods beginning on or after 1
July 2018).
• IFRS 12 - Disclosure of Interests in Other Entities (Amended) - (applicable for annual periods beginning on or after 1
January 2017).
• IFRS 11 - Joint Arrangements (Amended by Annual Improvements to IFRS Standards 2015–2017 Cycle)- (applicable for
annual periods beginning on or after 1 January 2019).
• IFRS 14 - Regulatory Deferral Accounts - (applicable for annual periods beginning on or after 1 January 2016) - Not
notified by SECP.
• IFRS 15 - Revenue from Contracts with Customers - (applicable for annual periods beginning on or after 1 July 2018
• IFRS 16 - Leases - (applicable for annual periods beginning on or after 1 January 2019).
• IFRS 17- Insurance Contracts - (effective for annual periods beginning on or after 1 January 2021) - Not notified by SECP
• IAS 7- Statement of cash flows (amended) (effictive for annual period beging on or after 1 January 2017).
• IAS 12- Income Taxes - (Amended)-(effective for annual periods beginning on or after 1 January 2019).
• IAS 19 - Employee Benefits-(Amended)- (effective for annual periods beginning on or after 1 January 2019).
• IAS 28 - Investments in Associates-(Amendments resulting from annual improvements 2014-2016 cycle)-(effective for
annual periods beginning on or after 1 January 2018).
• IAS 28 - Investments in Associates-(Amended by Long-term Interests in Associates and Joint Ventures)- (effective for
annual periods beginning on or after 1 January 2019).
• IAS 39 - Financial Instruments: Recognition and Measurement -(Amended)- (effective for annual periods beginning on or
after 1 January 2018).
• IAS 40 - Investment Property - (Amended)-(applicable for annual periods beginning on or after 1 January 2018).
• IFRIC 22 - Foreign Currency Transaction and Advance Consideration - (applicable for annual periods beginning on or after
1 January 2018).
• IFRIC 23 - Uncertainity Over Income Tax Treatments - (applicable for annual periods beginning on or after 1 January 2019).
2.3 Basis of preparation
These financial statements have been prepared under the "historical cost convention" except: -
- certain property, plant and equipment carried at valuation; and
- staff retirement gratuity carried at present value.
The principal accounting policies adopted are set out below:
2.4 Staff retirement benefits
The Company operates a defined benefit plan - unfunded gratuity scheme covering all permanent employees. Provision is made
annually on the basis of actuarial recommendation to cover the period of service completed by employees using Projected Unit
Credit Method. Cumulative unrecognised net actuarial gains and losses that exceed ten percent of present value of defined
benefit obligation are amortised over the expected average remaining working lives of participating employees.
2.5 Leases
Leases are classified as finance lease whenever the terms of the lease transfer substantially all the risks and rewards of
ownership to the lessee. All other leases are classified as operating leases.
Asset held under finance lease is recognised as asset of the Company at its fair value at the inception of the lease or, if lower, at
the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as
liability against asset subject to finance lease. The liability is classified as current and non current depending upon the timing of
payment. Lease payments are apportioned between finance charges and reduction of the liability against asset subject to finance
lease so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged to profit
and loss account, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with
the Company's general policy on borrowing costs.
2.6 Trade and other payables
Liabilities for trade and other payables are measured at cost which is the fair value of the consideration to be paid in future for
goods and services received, whether billed to the Company or not.
2.7 Provisions
Provisions are recognised when the Company has a present, legal or constructive obligation as a result of past event and it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate
of the amount can be made. However, provisions are reviewed at each balance sheet date and adjusted to reflect the current best
estimate.
2.8 Provision for taxation
Current
Provision for current taxation is based on income taxable at the current tax rates after taking into account tax rebates and tax
credits available under the law.
Deferred
Deferred tax is provided using the liability method for all temporary differences at the balance sheet date between tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred tax asset is recognised for all deductible temporary differences and carry forward of unused tax losses, if any, to the
extent that it is probable that taxable profit will be available against which such temporary differences and tax losses can be
utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised
or the liability is settled, based on tax rates that have been enacted or substantively enacted at the balance sheet date.
2.9 Dividend and other appropriations
Dividend is recognised as a liability in the period in which it is approved. Appropriations of profits are reflected in the statement of
changes in equity in the period in which such appropriations are made.
2.10 Property, plant and equipment
Property, plant and equipment except freehold land and capital work in progress are stated at cost / revaluation less accumulated
depreciation and impairment in value, if any. Freehold land is stated at revalued amount. Capital work in progress is valued at
cost.
Depreciation is charged to income applying the reducing balance method at the rates specified in the property, plant and
equipment note, except plant and machinery and electric installations. Plant and machinery is depreciated applying the unit of
production method subject to minimum charge of Rs. 100 million to cover obsolescence and electric installations are depreciated
applying the straight line method over their economic serviceable life taken at 25 years.
In respect of additions and disposals during the year, depreciation is charged from the month of acquisition or capitalisation and
up to the month preceding the month of disposal respectively.
Assets' residual values, if significant and their useful lives are reviewed and adjusted, if appropriate, at each balance sheet date.
When parts of an item of property, plant and equipment have different useful lives, they are recognised as separate items of
property, plant and equipment.
Maintenance and normal repairs are charged to income as and when incurred. Major renewals and improvements are capitalised.
Gains or losses on disposal of property, plant and equipment are included in current income.
All expenditure connected with specific assets incurred during installation and construction period are carried under capital work in
progress. These are transferred to specific assets as and when these assets are available for use.
Surplus arising on revaluation of an item of property, plant and equipment is credited to surplus on revaluation of property, plant
and equipment, except to the extent of reversal of deficit previously charged to income, in which case that portion of the surplus is
recognised in income. Deficit on revaluation of an item of property, plant and equipment is charged to surplus on revaluation of
that asset to the extent of surplus and any excess deficit is charged to income. The surplus on revaluation of property, plant and
equipment to the extent of incremental depreciation charged on the related assets and surplus realised on disposal of revalued
asset is transferred to unappropriated profit / (accumulated loss) through statement of comprehensive income.
Assets subject to finance lease
In view of certainty of ownership of the assets at the end of the lease period, assets subject to finance lease are stated at cost less
accumulated depreciation. These assets are depreciated over their expected useful lives on the same basis as owned assets
except building under lease which is depreciated on straight line basis over its lease term of 61 years.
2.11 Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that
necessarily take a substantial period of time to get ready for their intended use, are added to the cost of those assets, until such
time as the assets are substantially ready for their intended use. Investment income earned on the temporary investment of
specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in profit and loss account in the period in which these are incurred.
2.12 Impairment
The Company assesses at each balance sheet date whether there is any indication that assets except deferred tax assets may be
impaired. If such indication exists, the carrying amounts of such assets are reviewed to assess whether they are recorded in
excess of their recoverable amounts. Where carrying values exceed the respective recoverable amounts, assets are written down
to their recoverable amounts and the resulting impairment loss is recognised in profit and loss account, unless the relevant asset
is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. The recoverable amount
is the higher of an asset's fair value less cost to sell and value in use.
Where impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised recoverable amount
but limited to the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior
years. A reversal of an impairment loss is recognised immediately in profit and loss account, unless the relevant asset is carried at
a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
2.13 Stores, spares and loose tools
These are valued at moving average cost less allowances for obsolete or slow moving items, if any. Items in transit are valued at
cost comprising invoice value and other charges incurred thereon.
2.14 Stock in trade
Stock in trade except wastes are valued at lower of cost and net realisable value. Cost is determined as follows:
Raw material Average cost
Work in process Average manufacturing cost
Finished goods Average manufacturing cost
Wastes are valued at net realisable value.
Net realisable value represents the estimated selling price in the ordinary course of business less estimated cost of completion
and estimated cost to make the sales. Average manufacturing cost consists of direct materials, labour and a proportion of
manufacturing overheads.
2.15 Trade debts and other receivables
Trade debts are carried at original invoice amount less an estimate made for doubtful receivables based on review of outstanding
amounts at the year end. Balances considered bad are written off when identified. Other receivables are recognised at nominal
amount which is fair value of the consideration to be received in future.
2.16 Cash and cash equivalents
Cash and cash equivalents are carried in the balance sheet at cost. For the purpose of cash flow statement, cash and cash
equivalents consist of cash in hand, balances with banks, highly liquid short term investments that are convertible to known
amount of cash and are subject to insignificant risk of change in value.
2.17 Foreign currency translation
Transactions in currencies other than Pak Rupee are recorded at the rates of exchange prevailing on the dates of transactions. At
each balance sheet date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates
prevailing on the balance sheet date except where forward exchange contracts have been entered into for repayment of liabilities,
in that case, the rates contracted for are used.
Exchange differences are included in current income. All non-monetary items are translated into Pak Rupee at exchange rates
prevailing on the dates of transactions.
2.18 Financial instruments
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the
instrument and de-recognised when the Company loses control of the contractual rights that comprise the financial assets and in
case of financial liabilities when the obligation specified in the contract is discharged, cancelled or expired.
Other particular recognition methods adopted by the Company are disclosed in the individual policy statements associated with
each item of financial instruments.
2.19 Offsetting of financial asset and financial liability
A financial asset and a financial liability is off-set and the net amount reported in the balance sheet, if the Company has a legal
enforceable right to set-off the transaction and also intends either to settle on a net basis or to realise the asset and settle the
liability simultaneously.
2.20 Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods
and services provided in the normal course of business.
Sales are recorded on dispatch of goods.
2.21 Related party transactions
Transactions with related parties are priced on arm’s length basis. Prices for these transactions are determined on the basis of
comparable uncontrolled price method, which sets the price by reference to comparable goods and services sold in an
economically comparable market to a buyer unrelated to the seller.
2.22 Critical accounting estimates and judgments
The preparation of financial statements in conformity with IASs / IFRSs requires management to make judgments, estimates and
assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The
estimates and associated assumptions are based on historical experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the basis of making judgments about carrying values of assets and
liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimates are revised.
Significant areas requiring the use of management estimates in these financial statements relate to the useful life of depreciable
assets, provision for doubtful receivables and slow moving inventory and staff retirement gratuity. However, assumptions and
judgments made by management in the application of accounting policies that have significant effect on the financial statements
are not expected to result in material adjustment to the carrying amounts of assets and liabilities in the next year.
3. Issued, subscribed and paid up capital
2018 2017 2018 2017
Number of shares Rupees Rupees
35,985,702 35,985,702 Ordinary shares of Rs. 10/- each fully paid
in cash. 359,857,020 359,857,020
73,869,559 73,869,559 Ordinary shares of Rs. 10/- each issued
as fully paid bonus shares. 738,695,590 738,695,590
5,144,739 5,144,739 Ordinary shares of Rs. 10/- each issued
as fully paid under scheme of
arrangement for amalgamation. 51,447,390 51,447,390
115,000,000 115,000,000 1,150,000,000 1,150,000,000
3.1 All the shere are similar with respect to their rights on voting, dividend board selection, first refusal and block voting.
4. Cumulative preference shares
2018 2017 2018 2017
Number of shares Rupees Rupees
80,000,000 80,000,000 Cumulative preference shares
of Rs. 10/- each fully paid in cash. 800,000,000 800,000,000
4.1 The preference shares are non-voting, cumulative and redeemable. These are listed on Pakistan Stock Exchange. The
holders are entitled to cumulative preferential dividend at 9.25% per annum on the paid up value of preference shares. In
case profits in any year are insufficient to pay preferential dividend, the dividend will be accumulated and payable in next
year.
4.2 In case the Company fails to redeem cumulative preference shares upon exercise of put options by the holders for any
two consecutive years, the holders were entitled to convert the cumulative preference shares into ordinary shares at a
price equal to lower of:
a) 75% of market value of shares or
b) 75% of book value (break up value) or
c) face value of shares
The date to exercise put options have been expired on September 25, 2010.
4.3 The holders of 55,080,498 cumulative preference shares called upon to convert preference shares into ordinary shares
due to non-redemption of their holding on exercise of put options for two consecutive years. The Company proposed to
issue new ordinary shares to preference shareholders holding 49,984,998 cumulative preference shares who have called
upon to convert their shares, as per conversion formula laid down in the Prospectus (Refer above 4.2) and Articles of
Association of the Company. In view of the reservations, one of the investors filed application under Section 474 of the
Companies Ordinance 1984 before the Securities and Exchange Commission of Pakistan which was not entertained by
the SECP and Appellate bench being out of domain of Companies Ordinance 1984. SECP has initiated preceding in the
court of district and session judge at Karachi alleging trading activities of shares of the company in the manner prohibited
under section 17 of Securities and Exchange Ordinance 1969. Since the subject matter of value for conversion of
preference shares into ordinary shares is subjudice, the management will issue new ordinary shares on the disposal of
the case filed by SECP. The matter of conversion of balance 5,095,500 cumulative preference shares is also pending till
the resolution of matter in the court.
4.4 The cumulative preference shares have been classified as part of equity capital in accordance with the terms and
conditions of issue, taking into consideration the classification of share capital as indicated in the various provisions of
the Companies Ordinance, 1984. Further the contradictions between classification of share capital in the various
provisions of the Companies Ordinance, 1984 and International Accounting Standards is pending for clarification before
the Securities and Exchange Commission of Pakistan.
4.5 The company has executed agreement with a banking company to buy back cumulative preference shares amounting to
Rs. 100 million. The company will pay purchase consideration in installments commencing from year 2023.
5. SURPLUS ON REVALUATION OF PROPERTY, PLANT AND EQUIPMENT
Opening balance 5,761,095,295 5,198,671,152
Surplus arisen on revaluation carried out during the year - 539,975,000
Incremental depreciation on revalued assets for the year (21,751,932) (22,671,239)
Deferred tax reversed on surplus 10.2 - 45,120,382
5,739,343,363 5,761,095,295
5.1 Freehold land was revalued by M/S Protectors as on 30 September 2016 on the basis of market values and was
incorporated in financial statements for the second quarter ended on December 31, 2016 which was notified by the board
in board meeting of February 27, 2017. However valuation of other assets was not carried out as significant variation in
value was not expected.
5.2 Previously such revaluation of freehold land, Building on freehold land, plant and machinery, electronic installations and
generators were carried at on the basis of market Forced sale value of revalued asset at the date of revaluation was
Rs. 8,852,929,275/- and had there been no revaluation the carrying values of those assets would have been of Rs.
5,035,160,255/- (refer note 15.2).
5.3 Effective 30 May 2017, the Companies Act, 2017 (Act) was enacted which replaced and repealed the previous
Companies Ordinance, 1984 (the repealed Ordinance). Section 235 of the repealed Ordinance related to
treatment of surplus arising on revaluation of property, plant and equipment has not been carried forward in the
Act. The said section of the repealed Ordinance specified the presentation relating to revaluation of property,
plant and equipment which was not in accordance with the requirements of IAS 16 "Property Plant and Equipment"
as applicable in Pakistan. Consequently, the Company changed its presentation for revaluation surplus on property,
plant and equipment to bring it in conformity with the requirements of IAS 16 "Property Plant and Equipment ". Due to
change in presentation, the revaluation surplus on property, plant and equipment is now presented in the statement of
financial position and statement of changes in equity as a reserve i.e. part of equity.
5.4 Previously, the Company's presentation for surplus on revaluation of property, plant and equipment was in accordance
with provision of Section 235 of the repealed Companies Ordinance, 1984. Had the presentation not being
changed, the surplus on revaluation of property, plant and equipment would have been shown as a separate line
item (below equity in the statement of financial position) amounting to Rs. 5,739,343,363/- (2017: Rs. 5,761,095,295/-
).
2018 2017
Note Rupees Rupees
6.
Premium on issue of ordinary shares 120,000,000 120,000,000
Merger reserve 5.1 63,552,610 63,552,610
Preference shares redemption reserve 5.2 342,857,142 342,857,142
526,409,752 526,409,752
6.1 It represents book difference of capital under schemes of arrangement for amalgamation.
6.2 It was created as per directive of State Bank of Pakistan and transferable into accumulated loss in due course as the
dates of exercising put options for redemption have already been expired.
2018 2017
Note Rupees Rupees
7. Revenue reserves
General reserve 76,432,834 76,432,834
(Accumulated loss)
Opening balance (9,100,280,197) (8,141,737,768)
Total comprehensive loss for the year (239,286,572) (958,542,429)
(9,339,566,769) (9,100,280,197)
(9,263,133,935) (9,023,847,363)
8. Long term financing
Secured
Under mark up arrangements
From banking companies
Fixed assets finance 8.1 239,227,233 239,227,233
Demand finances 8.1 1,305,200,000 1,305,200,000
Term finances 8.1 2,686,553,038 2,690,553,038
Long term finance 8.1 157,245,796 157,245,796
Dinishing mudarba -
From financial institutions
Term finances 8.1 560,260,533 560,260,533
Long term finances 8.1 78,791,139 78,791,139
Not subject to mark up
From financial institutions
Term finance IX 8.2 - 58,351,091
Term finance XI 8.3 74,000,000 74,000,000
5,101,277,739 5,163,628,830
Less : Current portion
Installments over due 2,952,338,753 2,604,042,792
Payable within one year - 150,500,000
2,952,338,753 2,754,542,792
2,148,938,986 2,409,086,038
Unsecured from
Directors 8.4 244,313,086 244,313,086
Associates 8.5 54,915,280 54,915,280
2,448,167,352 2,708,314,404
8.1 The terms of repayment of finances are as under;
Balance Number of Payment Commencement Ending Markup
Nature of
loans Rupees installments rests date date rate
From banking companies:
Fixed assets
finance 239,227,233 10 Half yearly 30-Sep-10 31-Mar-15 6 Months KIBOR + 0.5% p.a
Demand finances
III 65,000,000 15 Quarterly 26-Jun-10 26-Dec-13 3 Months KIBOR + 1.5% p.a
IV 146,000,000 10 Half yearly 30-Sep-10 31-Mar-15 6 Months KIBOR + 0.5% p.a
VII 1,094,200,000 (Refer Note 8.1.1)
1,305,200,000
Term finances
III 106,250,000 60 Monthly 01-Nov-09 01-Oct-14 1 Month KIBOR + 0.5% p.a
IV 462,852,000 20 Quarterly 30-Sep-10 30-Jun-15 3 Months KIBOR + 2.5% p.a
with a floor of 11% p.a
V 121,000,000 10 Quarterly 30-Sep-10 31-Dec-12 3 Months KIBOR + 3% p.a
with a floor of 12% p.a
VI 130,000,000 60 Monthly 01-Nov-09 01-Oct-14 1 Month KIBOR + 0.5%
X 490,865,000 (Refer Note 8.1.2)
XI 844,497,000 (Refer Note 8.1.3)
XII 531,089,038 (Refer Note 8.1.4)
2,686,553,038
Long term finances
IV 65,754,250 20 Quarterly 30-Sep-07 30-Jun-13 SBP rate + 2% p.a
VII 40,000,000 4 Half yearly 20-Jun-09 20-Dec-10 SBP rate + 2% p.a
VIII 38,433,050 14 Quarterly 01-Jan-07 31-Jan-11 SBP rate + 2% p.a
X 13,058,496 24 Quarterly 28-Mar-10 28-Dec-15 SBP rate + 2% p.a
157,245,796
From financial institutions:
Term finances
300,000,000 20 Quarterly 01-Mar-11 01-Dec-15 6 M KIBOR + 2.5% p.a
I
II 93,750,000 60 Monthly 23-Jan-11 23-Dec-15 6 M KIBOR + 3% p.a
with a floor of 10% p.a
and rebate of 6% p.a
during the grace period.
III 47,916,667 60 Monthly 27-Jan-11 27-Dec-15 6 M KIBOR + 3% p.a
with a floor of 10% p.a
and rebate of 6% p.a
during the grace period.
IV 37,500,000 8 Quarterly 01-Mar-11 01-Dec-12 6 M KIBOR + 3% p.a
V 48,537,616 12 Quarterly 29-Jul-11 29-Apr-14 3 M KIBOR + 2.5% p.a
VI 17,578,125 16 Quarterly 29-Apr-09 29-Jan-13 6 M KIBOR + 3% p.a
VII 14,978,125 16 Quarterly 29-Apr-09 29-Jan-13 6 M KIBOR + 3% p.a
560,260,533
Long term finances
II 3,090,689 36 Monthly 09-Jan-07 09-Dec-09 SBP rate + 2% p.a
III 12,586,768 48 Monthly 28-Apr-07 28-Mar-11 SBP rate + 2% p.a
IV 24,737,636 9 Half yearly 31-Dec-07 31-Dec-12 SBP rate + 2% p.a
V 12,179,477 13 Quarterly 31-Mar-07 28-Feb-10 SBP rate + 2% p.a
VI 18,888,895 13 Quarterly 31-Mar-07 28-Feb-11 SBP rate + 2% p.a
VII 7,307,674 13 Quarterly 31-Mar-07 31-Mar-11 SBP rate + 2% p.a
78,791,139
The loans are secured against first charge over fixed assets of the Company ranking pari passu with the charges created
in respect of export and running finances (Refer Note 13.2) and murabaha finances (Refer Note 13.3). These are further
secured by personal guarantee of directors of the Company.
The effective rate of mark up charged during the year ranges from 5% to 9% per annum.
8.1.1 The loan is repayable as under ;
No. of Installment Balance Commencing Ending
installments amount amount from on
1 20,000,000 14,700,000 30-Sep-15 -
27 20,000,000 540,000,000 31-Dec-15 30-Jun-22
8 41,850,000 334,800,000 30-Sep-22 30-Jun-24
4 44,350,000 177,400,000 30-Sep-24 30-Jun-25
1 27,300,000 27,300,000 30-Sep-25 -
41 1,094,200,000
It is subject to mark up at the rate of 5% per annum. Overdue mark up plus mark up for the period till
September 30, 2025 will be repaid in 20 equal instalments commencing from December 30, 2025 and ending
on September 30, 2030 (Refer Note 10). The securities have been disclosed in Note 8.1 above.
8.1.2 Total amount of the loan was Rs. 499.581 million out of which Rs. 6 million was payable in 12 equal monthly
installments commenced from July 01, 2011 and ended on June 01, 2012, Rs. 243.581 million is payable in 54
equal monthly installments commenced from July 01, 2012 and ended on December 01, 2016 and terms of
repayment of balance amount of Rs. 250 million are not decided.
It is subject to mark up at the rate of 9% per annum. Markup will be deferred and will be repaid in 34 monthly
installments commencing from January 2017 and ending on October 2019 (Refer Note 10). Markup accrual and
deferral has been suspended due to filing of case for recovery by the lender.
8.1.3 Short term finance of Rs 672.265 million (Refer Note.13), Term Finance ll Rs.191.482 million and Term Finance
Vlll Rs. 118.750 million was converted into long term loan. It is repayable as under;
No. of Installment Total Commencing Ending
installments amount amount from on
8 500,000 4,000,000 31-05-17 31-12-17
12 1,000,000 12,000,000 31-01-18 31-12-18
12 2,000,000 24,000,000 31-01-19 31-12-19
12 5,000,000 60,000,000 31-01-20 31-12-20
24 10,000,000 240,000,000 31-01-21 31-12-22
11 43,160,000 474,760,000 31-01-23 30-11-23
1 33,737,000 33,737,000 31-12-23
24 848,497,000
Outstanding markup of Rs 33.056 million plus interest on outstanding principal calculated at the rate of 50% of the
interest rate declared by the State Bank of Pakistan for relevant years is payable in 12 monthly installments starting from
01-01-2024 till 31-12-2024.
8.1.4 Short term finance of Rs 549.089 million (Refer Note.13) was converted into long term loan during the year.
Outstanding amount is repayable as under;
No. of Installment Total Commencing Ending
installments amount amount from on
5 1,000,000 5,000,000 31-Dec-16 30-Apr-17
6 5,500,000 33,000,000 31-May-17 30-Nov-17
12 4,000,000 48,000,000 31-Dec-17 30-Nov-18
12 5,000,000 60,000,000 31-Dec-18 30-Nov-19
12 6,000,000 72,000,000 31-Dec-19 30-Nov-20
12 7,000,000 84,000,000 31-Dec-20 30-Nov-21
12 9,000,000 108,000,000 31-Dec-21 31-Oct-22
11 10,000,000 110,000,000 31-Dec-22 31-Oct-23
1 11,089,000 11,089,000 30-Nov-23 -
78 531,089,000
8.2 Mark up of Rs. 58.351 million outstanding as at November 30, 2009 has been converted into term finance IX. It was
repayable in 4 equal quarterly installments commenced from September 01, 2010 and ended on June 01, 2011. It is not
subject to mark up. The securities are disclosed in Note 8.1.
8.3 It is payable in 47 monthly installments as under;
Installment Total Ending
No. of Commencing
amount amount on
1 500,000 500,000 5-Dec-13 -
12 1,000,000 12,000,000 5-Jan-14 5-Dec-14
12 1,500,000 18,000,000 5-Jan-15 5-Dec-15
12 2,000,000 24,000,000 5-Jan-16 5-Dec-16
9 2,000,000 18,000,000 5-Jan-17 5-Sep-17
1 1,500,000 1,500,000 5-Oct-17 -
47 74,000,000
It is secured against first charge over fixed assets of the Company.
8.4 These are interest free. Directors' loan of Rs. 196.617 million (2017: Rs. 196.617 million) is subordinated to fixed assets
finance and term finances III, VI, VII and X and long term finance VII from banking companies and term finances IV, V,
VI and VII from financial institutions. Terms of repayment of these loans have not been decided so far. The loans are
stated at cost as there is no likelihood of repayment of these loans during the year.
8.5 These are interest free. These loans are recognised at amortised cost. Loans amounting to Rs 37.58 million (2017: Rs.
37.58 million) are repayable in lump sum after June 30,2020 and loans amounting Rs 27.65, million (2017: Rs. 27.65)
are repayable in lump sum on June 30, 2017. Using prevailing market interest rate for an equivalent loan of 10.12% for
loans payable after June 30, 2020 and 9.25% for loans payable on June 30, 2017, the fair value of these loans is
estimated at Rs. 54.91 million (2017: Rs 54.91 million). The difference of Rs. 10.31 million (2017: Rs 10.31 million)
between the gross proceeds and the fair value of these loans is the benefit derived from the interest free loans and is
recognised as deferred revenue.
8.6 Terms and conditions of all above loans have been extracted from old facility letters / setellement agreements as
updated documentation is not available due to pending disputes with the banks
2018 2017
Note Rupees Rupees
9. Liabilities against assets subject to
finance lease
Opening balance 30,335,007 32,374,140
Paid / adjusted during the year (1,632,463) (2,039,133)
9.2 28,702,544 30,335,007
Shown under current liabilities
Installments over due (28,702,544) (20,938,773)
Payable within one year - (9,396,234)
(28,702,544) (30,335,007)
- -
9.1 These represent plant and machinery and generators acquired under separate lease agreements. The purchase option
is available to the Company on payment of last installment and surrender of deposit at the end of the lease period.
9.2 The principal plus financial charges are payable over the lease period in monthly and half yearly installments. The liability
represents the total minimum lease payments discounted at 11.27% to 17.13% per annum (2017 : 11.27% to 17.13%
per annum) being the interest rates implicit in leases.
9.3 The future minimum lease payments to which the Company is committed as at the year end are as under:
Year ending June 30,
2017 - -
2017 - -
2019 36,111,453 37,743,916
36,111,453 37,743,916
Financial charges
Payable (7,408,911) (7,408,909)
Allocated to future periods - -
(7,408,911) (7,408,909)
28,702,542 30,335,007
9.4 Reconciliation of minimum lease payments and their present value is given below:
2018 2017
Present value
Minimum Present value of
of minimum Minimum
lease minimum lease
lease lease payments
payments payments
payments
------------------------------------- Rupees ---------------------------------------
Due within one year 36,111,453 28,702,542 37,743,916 30,335,007
Due after one year but
not later than five years - - - -
36,111,453 28,702,542 37,743,916 30,335,007
2018 2017
Note Rupees Rupees
10. Deferred liabilities
Deferred taxation - -
Staff retirement gratuity 10.1 138,621,902 140,008,365
Deferred taxation 10.2 - -
Deferred mark up on:
Demand finance VII 8.1.1 550,243,219 550,243,219
Term finance X 8.1.2 168,535,129 168,535,129
Liabilities against assets subject to finance lease 9.2 16,823,258 16,823,258
Term finance XI 8.1.3 77,772,252 77,772,252
813,373,858 813,373,858
951,995,760 953,382,223
10.1 Staff retirement gratuity
10.1.1 General description
The scheme provides terminal benefits for all employees of the Company who attain the minimum qualifying
period of service as defined in the scheme. Annual charge is based on actuarial valuation using the Projected
Unit Credit Method. Latest actuarial valuation is carried out as at June 30, 2018.
2018 2017
Note Rupees Rupees
10.1.2 Balance sheet reconciliation as at June 30,
Present value of defined benefit obligation 138,621,902 140,008,365
10.1.3 Movement in net liability recognized
Opening balance 140,008,365 124,371,905
Charge for the year 10.1.4 37,340,224 39,793,065
Paid / adjusted during the year (4,148,892) (7,586,887)
Benefits payable (13,757,339) (8,923,568)
Remeasurement of obligation (20,820,456) (7,646,150)
Balance at June 30, 138,621,902 140,008,365
10.1.4 Charge for the year
Service cost 23,710,019 31,051,126
Interest cost 13,822,668 8,741,939
37,532,687 39,793,065
10.1.5 Principal actuarial assumptions
Discount factor used 10% Per annum 7.25% Per annum
Expected rate of increase in salaries 10% Per annum 7.25% Per annum
Expected average remaining working
lives of participating employees 10 years 10 years
10.1.6 The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:
Reworked defined benefit obligation
Change in Increase in Decrease in
assumptions assumptions assumptions
Discount rate 100 bps 124,427,900 141,763,379
Salary increase rate 100 bps 142,315,222 123,793,370
10.1.7 The above sensitivity analyses are based on change in an assumption while holding all other assumptions
constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated.
When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same
method (Projected Unit Credit Method) has been applied as for calculating the liability of staff retirement
gratuity.
10.2 Deferred taxation
Opening balance - 48,488,868
(Reversed) during the year on surplus - (45,120,382)
Deferred tax related to incremental depreciation
transferred to unappropriated profit - (4,675,834)
Deferred tax related to remeasurement
of staff retirement gratuity - 1,307,348
10.2.1 - -
10.2.1 It comprises of the followings:
Deferred tax liability :
Difference in tax and accounting bases
of property, plant and equipment 1,017,697,376 1,050,825,072
Deferred tax assets :
Unadjusted tax losses (1,159,261,784) (1,159,261,784)
Staff retirement gratuity (23,701,735) (23,938,794)
Lease liability (4,907,594) (5,186,715)
Unrecognised Deferred Tax Asset 170,173,737 137,562,221
- -
[Link] In absence of future taxable profits projections, amount of Rs. 170,173,737 (2017: Rs. 137.265 million ) has not
been recognized as deferred tax asset.
2018 2017
Note Rupees Rupees
11. Trade and other payables
Creditors 1,023,298,668 1,021,456,896
Accrued liabilities 155,849,900 101,547,728
Advance from customers 358,173,151 367,598,038
Unclaimed dividend - -
Other 2,770,221 2,787,668
1,972,091,940 1,925,390,330
12. Interest / markup payable
Interest / mark up payable on:
Long term financing 536,597,965 492,641,849
Liabilities against assets subject to finance lease 7,408,911 7,408,909
Short term bank borrowings 681,291,000 687,016,864
1,225,297,876 1,187,067,622
13. Short term bank borrowings
Secured
Under mark up arrangements
Export finances 13.2 3,668,552,114 3,669,073,443
Finance against trust receipts 13.2 18,304,000 18,304,000
Running finance 13.2 437,588,483 437,588,483
Murabaha finances 13.3 220,550,000 217,533,000
4,344,994,597 4,342,498,926
13.1 The aggregate unavailed short term borrowing facilities available to the Company are nil (2017: Rs. Nill). Total
sanctioned limits are Rs. 5.17 billion (2017: Rs. 5.17 billion) out of which limits of Rs. 5.17 billion (2017: Rs 5.17 billion)
are expired and renewable.
13.2 These are secured against first charge over current assets of the Company , lien on import / export documents and
second charge over current and fixed assets of the Company. These are further secured by personal guarantee of
directors of the Company and mortgage of property and corporate guarantee. Certain export and running finances are
further secured against first charge over fixed assets of the Company ranking pari pasu with the charges created in
respect of long term financing (Refer Note 8.1) and murabaha finances (Refer Note 13.3). Export finances of Rs. 374.13
million (2017: Rs. 374.13 million) are also secured against equitable mortgage / deposit of title deeds of personal
properties of directors and an associate. Un-expired loans were subject to mark up at the rate of one month KIBOR plus
0.5% per annum and three months KIBOR plus 0.5% per annum during previous year. Mark up charged on these loans
during the year ranges from 6.68% to 10.28% per annum (2017: 6.68 to 10.28% per annum).
13.3 These are secured against first charge over fixed assets of the Company ranking pari passu with the charges created in
respect of long term financing (Refer Note 8.1) and export and running finances (Refer Note 13.2). These are further
secured by personal guarantee of directors of the Company. Un-expired loans were subject to mark up at the rate of six
months KIBOR plus 1% per annum and KIBOR plus 2% per annum during previous year. Mark up charged on these
loans during the year ranges from 7.04% to 9.07% per annum (2017: 7.04% to 9.07% per annum).
13.4 Terms and conditions of all above loans have been extracted from old facility letters / setellement agreements as
updated documentation is not availabledue to pendign disputes with the banks
14. CONTINGENCIES AND COMMITMENTS
Contingencies
In respect of bank guarantees issued on behalf of the Company
Sui Northern Gas Pipelines Limited for supply of gas 26,131,300 26,131,300
Demand of wealth tax not acknowledged in view of pending appeals 1,016,400 1,016,400
Liability of workers' welfare fund not acknowledged.
The Company is claiming exemption from levy - -
The Company is claiming exemption from levy
Demands of Employees' Old Age Benefits Institution and
Punjab Employees' Social Security Institution are not
acknowledged in view of pending litigation 37,018,122 37,018,122
Liability of markup not acknowledged in view of
Company's request for availing non serviceable grace
period on the outstanding liabilities. Mark up has been
calculated at the last agreed mark up rates. 1,021,686,391 1,021,686,391
Liability of Gas Infrastructure development cess not
acknowledged in view of pending petitions 19,019,198 19,019,198
Cases are pending before Foreign Exchange adjudication officer,
State Bank of Pakistan for non repatriation of export proceeds
within prescribed times. The default may attract penalties.
The financial impact cannot be determined at this stage - -
Certain lenders have filed cases for recovery of long term and
short term finances with claim of cost of funds. The claim has
not been acknowledged due to pending litigation. Amount of
claim cannot be determined at this stage. - -
Dividend for cumulative preference shares will be accumulated
and payable in the ensuing years when the sufficient amount
of profit will be available for appropriation. 342,360,000 319,309,000
Commitments
There was no commitments as on 30 June 2018 (2017: Nil)
15. Property, plant and equipment
Operating assets
Company owned Under lease
Building on Plant and Electric Factory Furniture and Office Plant and Total
Freehold land Generators Vehicles Sign boards Sub total Building Generators Sub total
freehold land machinery installations equipment fixture equipment machinery
--------------------------------------------------------------------------------------------------------------------Rupees------------------------------------------------------------------------------------------------------------------------------
At July 01, 2016
Cost / revaluation 2,191,885,000 1,719,007,480 6,258,904,811 261,874,000 365,599,000 76,475,185 39,108,524 84,178,308 37,503,330 525,248 11,035,060,886 7,405,200 203,768,114 65,966,667 277,139,981 11,312,200,867
Accumulated depreciation - (68,760,299) (97,719,793) (10,474,960) (18,279,950) (56,603,591) (26,307,358) (62,063,610) (28,381,004) (472,514) (369,063,079) (2,065,772) (60,002,196) (32,154,281) (94,222,249) (463,285,328)
-
Net book value 2,191,885,000 1,650,247,181 6,161,185,018 251,399,040 347,319,050 19,871,594 12,801,166 22,114,698 9,122,326 52,734 10,665,997,807 5,339,428 143,765,918 33,812,386 182,917,732 10,848,915,539
Year ended June 30, 2017
Opening net book value 2,191,885,000 1,650,247,181 6,161,185,018 251,399,040 347,319,050 19,871,594 12,801,166 22,114,698 9,122,326 52,734 10,665,997,807 5,339,428 143,765,918 33,812,386 182,917,732 10,848,915,539
Additions - - - - - - - - - - - - - - - -
Surplus on revaluation 539,975,000 539,975,000 539,975,000
Cost - - - - - - - - (2,303,187) - (2,303,187) - - - - (2,303,187)
Accumulated depreciation - - - - - - - - 2,066,355 - 2,066,355 - - - - 2,066,355
- - - - - - - - (236,832) - (236,832) - - - - (236,832)
Depreciation charge - (66,009,887) (97,719,793) (10,474,960) (17,365,953) (1,987,159) (1,280,117) (2,211,470) (1,809,542) (5,273) (198,864,154) (121,397) (2,280,207) (1,690,619) (4,092,223) (202,956,377)
Closing net book value 2,731,860,000 1,584,237,294 6,063,465,225 240,924,080 329,953,097 17,884,435 11,521,049 19,903,228 7,075,952 47,461 11,006,871,821 5,218,031 141,485,711 32,121,767 178,825,509 11,185,697,330
At July 01, 2017
Cost / revaluation 2,731,860,000 1,719,007,480 6,258,904,811 261,874,000 365,599,000 76,475,185 39,108,524 84,178,308 35,200,143 525,248 11,572,732,699 7,405,200 203,768,114 65,966,667 277,139,981 11,849,872,680
Accumulated depreciation - (134,770,186) (195,439,586) (20,949,920) (35,645,903) (58,590,750) (27,587,475) (64,275,080) (28,124,191) (477,787) (565,860,878) (2,187,169) (62,282,403) (33,844,900) (98,314,472) (664,175,350)
Net book value 2,731,860,000 1,584,237,294 6,063,465,225 240,924,080 329,953,097 17,884,435 11,521,049 19,903,228 7,075,952 47,461 11,006,871,821 5,218,031 141,485,711 32,121,767 178,825,509 11,185,697,330
Year ended June 30, 2018
Opening net book value 2,731,860,000 1,584,237,294 6,063,465,225 240,924,080 329,953,097 17,884,435 11,521,049 19,903,228 7,075,952 47,461 11,006,871,821 5,218,031 141,485,711 32,121,767 178,825,509 11,185,697,330
Additions - - 2,542,410 3,099,598 - - - 6,448 804,900 - 6,453,356 - - - - 6,453,356
- - -
Surplus on revaluation - - - - - - - - - - - - - - - -
Disposals:
Cost - - - - - - - - (3,560,568) - (3,560,568) - - - - (3,560,568)
Accumulated depreciation - - - - - - - - 3,366,171 - 3,366,171 - - - - 3,366,171
- - - - - - - - (194,397) - (194,397) - - - - (194,397)
Depreciation charge - (63,369,492) (97,720,727) (10,568,854) (16,497,655) (1,788,444) (1,152,105) (1,990,968) (1,449,885) (4,746) (194,542,876) (121,397) (2,279,273) (1,606,088) (4,006,758) (198,549,634)
Closing net book value 2,731,860,000 1,520,867,802 5,968,286,908 233,454,824 313,455,442 16,095,991 10,368,944 17,918,708 6,236,570 42,715 10,818,587,904 5,096,634 139,206,438 30,515,679 174,818,751 10,993,406,655
#REF! #REF! #REF! #REF! #REF! #REF! #REF!
At June 30, 2018
Cost / revaluation 2,731,860,000 1,719,007,480 6,261,447,221 264,973,598 365,599,000 76,475,185 39,108,524 84,184,756 32,444,475 525,248 11,575,625,487 7,405,200 203,768,114 65,966,667 277,139,981 11,852,765,468
Accumulated depreciation - (198,139,678) (293,160,313) (31,518,774) (52,143,558) (60,379,194) (28,739,580) (66,266,048) (26,207,905) (482,533) (757,037,583) (2,308,566) (64,561,676) (35,450,988) (102,321,230) (859,358,813)
Net book value 2,731,860,000 1,520,867,802 5,968,286,908 233,454,824 313,455,442 16,095,991 10,368,944 17,918,708 6,236,570 42,715 10,818,587,904 5,096,634 139,206,438 30,515,679 174,818,751 10,993,406,655
Annual rate of depreciation (%) 4 - - 05 10 10 10 20 10 - - 05
2017 2016
Note Rupees Rupees
15.1 Depreciation for the year
has been allocated as under:
Cost of goods manufactured 26.1 193,951,930 197,649,975 83,562
Administrative expenses 28 4,597,704 5,306,402 41,722
198,549,634 202,956,377
15.2 Had there been no revaluation, related figures of freehold land, building on freehold land, plant and machinery, electric
installations and generators as at June 30, 2018 and 2017 would have been as follows:
2018
Accumulated Written down
Description Cost
depreciation value
---------Rupees -----------
Freehold land 88,714,638 - 88,714,638
Building on freehold land 2,113,125,299 972,645,648 1,140,479,651
Plant and machinery 5,629,167,141 2,051,123,649 3,578,043,492
Electric installations 307,877,261 166,822,846 141,054,415
Generators 245,077,888 158,209,829 86,868,059
8,383,962,227 3,348,801,972 5,035,160,255
2017
Accumulated Written down
Description Cost
depreciation value
---------Rupees -----------
Freehold land 88,714,638 - 88,714,638
Building on freehold land 2,113,125,299 925,125,663 1,187,999,636
Plant and machinery 5,626,624,731 1,953,402,922 3,673,221,809
Electric installations 304,777,663 154,537,845 150,239,818
Generators 245,077,888 153,637,826 91,440,062
8,378,320,219 3,186,704,256 5,191,615,963
16. Long term deposits Rupees Rupees
Lease key money 1,679,435 3,311,898
Security deposits 12,636,768 12,636,768
14,316,203 15,948,666
Less: Current portion - Lease key money 1,679,435 3,311,898
12,636,768 12,636,768
17. Stores, spares and loose tools
Stores 27,700,410 56,081,654
Spares 8,490,388 11,283,058
Loose tools - -
36,190,798 67,364,712
18. Stock in trade
Raw material 1,130,424 8,099,205
Work in process 17,319,498 6,462,587
Finished goods 11,238,383 18,079,178
Waste 106,674 134,154
29,794,979 32,775,124
Stock in trade at net realizable value is Nil (2017: Nil).
19. Trade debts
Considered good
Secured
Foreign 7,485,243 7,485,243
Unsecured
Foreign 1,691,735,048 1,668,088,376
Local 28,989,640 30,075,132
1,720,724,688 1,698,163,508
1,728,209,931 1,705,648,751
20. Loans and advances
Considered good
Loans to employees
Executives - -
Others 762,237 868,365
Advances
Suppliers / contractors 20,904,201 23,608,821
Income tax 30,008,710 16,689,105
51,675,148 41,166,291
21. Deposits and prepayments
Deposits
Security deposits 1,292,858 1,292,858
Current portion of long term deposits 16 1,679,435 3,311,898
Guarantee / export margin 7,686,327 7,644,616
Prepayments 173,613 368,813
10,832,233 12,618,185
22. Other receivables
Export rebate / duty drawback 14,752,696 25,054,636
Excise duty 2,448,852 2,448,852
Other 937,838 -
18,139,386 27,503,488
23. Tax refunds due from Government
Sales tax 14,859,454 18,892,432
Income tax 14,307,379 14,307,379
29,166,833 33,199,811
24. Cash and bank balances
Cash in hand 1,179,881 7,739,420
Cash at banks
In current accounts 17,610,159 20,682,653
18,790,040 28,422,073
25. Sales
Export
Fabrics / made ups / garments 25.1 384,588,574 482,977,022
Add: Export rebate / duty drawback 4,255,954 21,022,314
388,844,528 503,999,336
Less:
Commission 3,821,804 1,289,605
Discount - -
3,821,804 1,289,605
385,022,724 502,709,731
Local
Yarn 1,670,000 540,802,124
Fabrics / made ups 180,419,887 373,757,298
Processing, conversion and stitching charges 348,797,052 347,183,089
530,886,939 1,261,742,511
915,909,663 1,764,452,242
25.1 It includes exchange gain of Rs 24,760,660 /- (2017: Rs. 720,259/-).
26. Cost of sales
Cost of goods manufactured 26.1 1,074,146,241 2,378,666,139
Finished goods
Opening stock 18,213,332 132,687,868
Closing stock (11,345,057) (18,213,332)
6,868,275 114,474,536
Cost of sales 1,081,014,516 2,493,140,675
26.1 Cost of goods manufactured
Raw material consumed 26.1.1 440,913,559 1,093,366,719
Salaries, wages and benefits 175,172,103 216,280,804
Staff retirement benefits 27,878,908 31,834,452
Stores and spares 72,292,538 90,426,683
Dyes and chemicals 37,250,023 39,288,443
Packing material 29,265,117 39,915,495
Repairs and maintenance 1,399,709 3,469,451
Fuel and power 28,510,839 124,097,624
Insurance - 2,169,161
Depreciation 15.1 193,951,930 197,649,975
Loss on sale of stores, spare parts and loose tools 26.1.2 - 320,796,407.94
Other 78,368,432 114,982,430
1,085,003,152 2,274,277,645
Work in process
Opening stock 6,462,587 110,851,081
Closing stock (17,319,498) (6,462,587)
(10,856,911) 104,388,494
1,074,146,241 2,378,666,139
26.1.1 Raw material consumed
Opening stock 8,099,205 91,118,913
Purchases including purchase expenses 433,944,778 1,010,347,011
442,043,983 1,101,465,924
Closing stock (1,130,424) (8,099,205)
440,913,559 1,093,366,719
26.1.2 Value of Stores, Spare Parts and loose tools Sold - 365,334,904
Sale proceeds - (44,538,496)
- 320,796,408
27. Selling and distribution expenses
Advertisement and publicity 54,998 84,528
Carriage and freight 13,805,833 4,817,695
Export clearing and forwarding 5,371,304 5,209,586
Export development surcharge 914,617 1,255,973
Other 2,982,557 1,394,051
23,129,309 12,761,833
28. Administrative expenses
Directors' remuneration - 3,900,000
Salaries and benefits 62,456,549 68,660,287
Staff retirement benefits 9,461,316 7,958,613
Electricity 655,177 686,643
Postage, telephone and telex 2,346,732 2,923,152
Vehicles running and maintenance 6,366,623 8,414,579
Travelling and conveyance 4,793,527 14,267,555
Printing and stationery 954,674 1,506,719
Entertainment 3,807,385 3,645,290
Fees and subscriptions 6,995,478 2,435,554
Legal and professional 9,700,500 4,042,800
Rent, rates and taxes 1,145,399 1,246,142
Auditors' remuneration 28.1 690,000 1,064,800
Repairs and maintenance 296,320 1,076,947
Depreciation 15.1 4,597,704 5,306,402
Insurance 1,060,863 250,796
Other 48,095 76,484
115,376,342 127,462,763
28.1 Auditors' remuneration
Audit fee 630,000 840,000
Half yearly review - 184,800
Out of pocket expenses 60,000 40,000
690,000 1,064,800
29. Other income
Income from assets other than financial assets:
Sale of waste material 967,447 1,370,265
Rental income 36,174,635 14,475,891
Gain on disposal of operating assets 155,603 363,168
Balances written back - net 14,462,161 19,164,794
51,759,846 35,374,118
30. Finance cost
Interest / mark up on:
Long term financing 30.1 - 79,450,632
Liabilities against assets subject to finance lease - 1,776,362
Short term bank borrowings 30.1 4,759,394 51,084,245
Bank charges and commission 4,457,684 4,825,353
9,217,078 137,136,592
30.1 The Company is facing financial and operational problems. As part of its long term plan to overcome these problems, the
management has filed applications to its bankers / financial institutions to reschedule the existing long term and short
term borrowings along with outstanding mark up thereon (except demand finance VII, term finance XI, own source
finance and murabaha finance) and to convert the entire outstanding liabilities into non serviceable loans / loans subject
to reduced rate of mark up for a reasonable period of time. The Company is hopeful that its bankers / financial
institutions will consider the proposals favorably, therefore no further provision of markup in respect of these long term
and short term finances has been made as the mark up expense amount depends on the outcome of the application.
2018 2017
31. Provision for taxation Note Rupees Rupees
Current
For the year 20,791,224 21,162,754
For prior years - 390,047
Deferred 31.1 - -
20,791,224 21,552,801
31.1 Deferred tax on surplus on revaluation of assets has been provided during last year to the extent of net deferred tax
liability after adjustment of deductible temporary differences.
31.2 The relationship between tax expense and accounting loss
The relationship between tax expense and accounting loss has not been presented in these financial statements as the
income from local sales is not subject to tax due to tax losses, income from export sales and related services is subject
to final tax under section 153 ,154 and 169 of the Income Tax Ordinance, 2001 and rental income is separately subject
to tax under normal tax regime .
32. Loss per share- Basic and diluted 2018 2017
Loss for the year Rupees (281,858,960) (992,228,304)
Weighted average number of ordinary shares
outstanding during the year Numbers 115,000,000 115,000,000
Earnings per share- Basic and diluted Rupees (2.45) (8.63)
32.1 There is no dilutive effect on the basic earning per share of the Company.
33. REMUNERATION TO CHIEF EXECUTIVE OFFICER,
DIRECTORS AND EXECUTIVES
2018 2017
Chief Chief
Executive Director Executives Executive Director Executives
Officer Officer
------------------------------------------------------ Rupees -------------------------------------------------------
Remuneration - - 4,428,998 1,600,000 1,000,000 5,870,597
House rent
allowance - - 1,328,699 480,000 300,000 1,893,321
Medical allowance - - 442,900 160,000 100,000 587,058
Utility allowance - - 442,900 160,000 100,000 498,894
- - 6,643,497 2,400,000 1,500,000 8,849,870
Number of persons - - 3 1 2 5
34. TRANSACTIONS WITH RELATED PARTIES
The Company in the normal course of business carries out transactions with various related parties which comprise of
associated undertaking, directors and key management personnel. Amounts due to and due from related parties are shown
under relevant notes to the financial statements. Remuneration to Chief Executive Officer, Directors and Executives is disclosed
in Note 33. There is no other significant transaction with related parties.
35. INSTALLED CAPACITY AND ACTUAL PRODUCTION
Textile
Product Unit Rated capacity per annum Actual production per annum
2018 2017 2018 2017
Fabrics Mtrs 9,000,000 9,000,000 642,250 730,732
Made ups Mtrs 59,000,000 59,000,000 425,211 525,710
Garments Mtrs 3,500,000 3,500,000 395,525 615,902
Reasons for shortfall
- Closure due to load management by suppliers of gas and electricity.
- Financial problems being faced by the Company.
- It is difficult to describe precisely the production capacity of textile products being manufactured since it
fluctuates widely depending upon various factors such as simple / multi-function articles, small and large size
articles, special articles and the pattern of articles adopted.
2018 2017
------Numbers--------
36. NUMBER OF EMPLOYEES
Total number of employees as at June 30, 1270 1,804
Total number of factory employees as at June 30, 1042 1,925
Average number of employees for the year 1,295 2,035
Average number of factory employees for the year 1517 2415
37. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Company finances its operations through the mix of equity, debt and working capital management with a view to maintain an
appropriate mix between various sources of finance to minimize risk. The overall risk management is carried out by the finance
department under the oversight of Board of Directors in line with the policies approved by the Board.
2018 2017
Rupees Rupees
37.1 FINANCIAL INSTRUMENTS BY CATEGORY
Financial assets:
Loans and receivables at amortised cost
Trade debts 1,728,209,931 1,705,648,751
Loans and advances 762,237 868,365
Deposits 10,832,233 25,254,953
Other receivables - -
Cash and bank balances 18,790,040 28,422,073
1,758,594,441 1,760,194,142
Financial liabilities:
Financial liabilities at amortised cost
Long term financing 5,400,506,105 5,462,857,196
Liabilities against assets
subject to finance lease 28,702,544 30,335,007
Trade and other payables 1,181,918,789 1,126,158,363
Interest / markup payable 1,225,297,876 1,187,067,622
Short term bank borrowings 4,344,994,597 4,342,498,926
12,181,419,911 12,148,917,114
37.2 FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES
The Company’s activities expose it to a variety of financial risks (credit risk, liquidity risk and market risk). Risks
measured and managed by the Company are explained below:
37.2.1 Credit risk and concentration of credit risk
Credit risk represents the accounting loss that would be recognized at the reporting date if counter parties failed
completely to perform as contracted. The Company is exposed to concentration of credit risk towards the major
customers M/S Alam B.V. Raaigars Holland, M/S C.G.I Limited UAE and M/S Chenone Stores Limited. The
trade debts receivable from these customers constitute 72.07% (2017: 72.67%) of the total receivables. The
maximum exposure to credit risk at the reporting date is as follows:
Trade debts 1,728,209,931 1,705,648,751
Loans and advances 762,237 868,365
Deposits 10,832,233 25,254,953
Other receivables - -
Bank balances 17,610,159 20,682,653
1,757,414,560 1,752,454,722
Due to the Company’s long standing relations with counter parties and after giving due consideration to their
financial standing, the management does not expect non performance by these counter parties on their
obligations to the Company.
For trade debts, credit quality of the customer is assessed, taking into consideration its financial position and
previous dealings. Individual credit limits are set. The management regularly monitor and review customers
credit exposure. The majority of customers of the Company are situated in Pakistan.
The Company’s most significant customers are industrial users of yarn, foreign departmental stores and trading
houses. The break-up of amounts due from customers is as follows:
Alam B.V. Raaigars Holland 428,190,433 428,190,433
C.G.I. Limited U.A.E 807,215,615 807,215,615
Chenone Stores Limited 1,380,000 4,380,000
Other customers 491,423,883 465,862,703
1,728,209,931 1,705,648,751
The aging of trade debts as at balance sheet date is as under:
Not past due 12,827,714 23,327,749
Past due within one year 7,348,538 93,627,512
Past due over one year 1,708,033,679 1,588,693,490
1,715,382,217 1,682,321,002
1,728,209,931 1,705,648,751
The management is taking measures for the recovery of past due trade debts and continuously pursuing the
recovery through negotiations with the customers. The company has initiated the legal proceedings for
recovery against some customers. Considering these factors and the fact that legal recourse for recovery of
past due debts is available to the Company, the Company believes that past due trade debts do not require
recognition of any impairment. The credit risk exposure is limited in respect of bank balances as bank balances
are placed with local banks having good credit rating from international and local credit rating agencies.
37.2.3 Market risk
Market risk is the risk that changes in market prices, such as interest rates, foreign exchange rates and equity
prices will affect the Company’s income or the value of its holdings of financial instruments. The objective of
market risk management is to manage and control market risk exposures within acceptable parameters while
optimizing returns.
i) 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.
Majority of interest rate risk arises from long term and short term borrowings from banks. The
Company is not providing markup on long term and short term borrowings as referred in Note 30.1.
The interest rate profile of the Company’s other interest bearing financial instruments is presented in
relevant notes to the financial statements.
Sensitivity analysis
Sensitivity to interest rate risk arises from mismatches of financial assets and financial liabilities that
mature or reprice in a given period. The Company manages these mismatches through risk
management strategies where significant changes in gap position can be adjusted.
Fair value sensitivity analysis for fixed rate instruments
The Company does not account for any fixed rate financial assets and liabilities at fair value through
profit and loss, therefore a change in interest rates at the reporting date would not effect profit and
loss account.
Cash flow sensitivity analysis for variable rate instruments
Had interest rate been increased / decreased by 1% at the reporting date with all other variables held
constant, loss for the year and negative equity would have been higher / lower by Rs. 97.442 million
(2017: Rs. 26.990 million). The impact of variation in interest rate has been considered only of
borrowings in respect of which mark up has been provided in these financial statements.
ii) 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. Foreign currency risk arises mainly where receivables
and payables exist due to transactions with foreign undertakings. The Company is exposed to
currency risk on foreign debtors and bills payable. The total foreign currency risk exposure on
reporting date amounted to Rs.0.002/- million (2017: Rs. 1,783.931 million).
At June 30, 2018, if the currency had weakened / strengthened by 5% against the foreign currencies
with all other variables held constant, loss for the year and negative equity would have been lower /
higher by Rs 84.961 million (2017: Rs. 80.95 million)
iii) Equity price risk
Trading and investing in equity securities give rise to equity price risk. The Company is not exposed
to equity price risk.
37.3 Fair values of financial instruments
The carrying values of all the financial assets and financial liabilities reported in the financial statements approximate
their fair values.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
37.4 Capital risk management
The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going
concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders and to maintain
an optimal capital structure to reduce the cost of capital.
Debt is calculated as total external borrowings ('long term financing', ' liabilities against assets subject to finance lease'
and 'short term borrowings' as shown in the balance sheet). Equity comprises of shareholders’ equity as shown in the
balance sheet under 'share capital and reserves' and subordinated long term finance from directors.
The information relating to capital employed by the Company as of June 30, 2017 and 2016 were as follows:
37.5 Overdue anc current portion of loans and mark up
On the reporting date, the installments of long term financing amounting to Rs.2,952.339 million (2017:Rs.2,754.543
million) along with mark up of Rs.536.598 million (2017: Rs. 492.642 million), lease finances amounting to Rs.28.703
million (2017: Rs. 30.335 million) along with mark up of Rs.7.409 million (2017: Rs.7.409 million) and short term
borrowings amounting to Rs. 4,344.995 million (2017: Rs. 4,342.499 million) along with mark up of Rs.681.291 million
(2017: Rs. 687.017 million) were over due to be paid in next year.
On reporting date, the carrying amount of loans relevant to above loan were long term financing Rs. 5,101.278 million
(2017: Rs.5,163.929 million), lease finances Rs. 28.702 million (2017: Rs.30.335 million) and short term borrowings Rs.
4,377.113 million (2017: Rs. 4,987.890 million).
The company has executed an agreement with one of the lender to restructure the loans. As per agreement outstanding
loan of Rs. 1,242.168 million and markup of Rs. 25.010 million have been rescheduled. The Company's requests for
restructuring of the overdue loans and markup and conversion into non serviceable loans for reasonable period of time
are pending with the other lenders (Refer Note 30.1).
38. IMPACTS OF COVID-19 ON THE FINANCIAL STATEMENTS
A novel strain of corona virus (COVID-19) that was classified as a pandemic by the World Health Organization
in March 2020, impacting countries globally. This pandemic has significantly affected all segments of economy.
The fair value determination at the measurement date has become more challenging due to the uncertainty of the
economic impact of COVID-19. The Company expects that going forward these uncertainties would reduce as the
impact of COVID-19 on overall economy subsides and management have evaluated and concluded that there is no
additional uncertainty other than those disclosed at note 1.3 and there are no material implications of COVID-19
impacts that requires disclosures/ adjustments in these financial statements.
39. EVENTS AFTER THE STATEMENT OF FINANCIAL POSITION DATE
There is no any event after the statement of financial position date causing any adjustment to / disclosure in financial
statements.
40. DATE OF AUTHORISATION FOR ISSUE
The financial statements were authorised for issue on 15 June 2021 by the Board of Directors of the Company.
41. GENERAL
Figures have been rounded off to the nearest Rupee except where mentioned rounding off in Rupees in thousands.
MUHAMMAD NAEEM
MIAN MUHAMMAD LATIF
(DIRECTOR)
(CHIEF EXECUTIVE OFFICER)
Note:
i) These financial statments relates to the liquidation period audit under the supervision of joint Official Liquidators appointe by the
Honourable Lahore High court Lahore
ii) Consequent upon revesal of winding up order dated 29/10/2021 issued by the Honourable Lahore High court Lahore the Board has
adopted these financal Statments
Form 34
Pattern of Holding of Ordinary Shares
Held by Shares Holders as at June 30, 2018
Share Holders From To Total Shares
97 1 100 3,879
486 101 500 230,114
283 501 1,000 280,205
540 1,001 5,000 1,729,250
233 5,001 10,000 1,961,093
85 10,001 15,000 1,104,047
62 15,001 20,000 1,158,500
59 20,001 25,000 1,420,001
27 25,001 30,000 767,500
15 30,001 35,000 501,000
20 35,001 40,000 769,148
12 40,001 45,000 512,506
24 45,001 50,000 1,186,723
4 50,001 55,000 216,500
8 55,001 60,000 467,004
2 60,001 65,000 129,500
5 65,001 70,000 347,500
3 70,001 75,000 221,500
2 75,001 80,000 157,000
8 80,001 90,000 683,500
17 90,001 100,000 1,685,000
1 100,001 110,000 110,000
4 110,001 125,000 479,500
4 125,001 140,000 521,500
1 140,001 150,000 143,500
1 150,001 170,000 170,000
7 175,001 200,000 1,335,000
4 200,001 250,000 881,500
4 255,001 300,000 1,185,000
4 300,001 400,000 1,419,636
3 400,001 500,000 1,357,500
1 500,001 550,000 550,000
2 550,001 700,000 1,194,500
2 700,001 850,000 1,473,500
3 850,001 950,000 2,748,500
1 1,000,001 1,050,000 1,041,500
1 1,150,001 1,200,000 1,159,000
1 2,500,001 3,000,000 2,813,545
1 3,500,001 3,550,000 3,502,834
1 3,605,001 3,650,000 3,608,218
1 6,000,001 6,200,000 6,138,587
1 7,000,001 7,500,000 7,459,184
1 8,000,001 8,500,000 8,416,948
1 14,500,001 15,000,000 14,876,483
1 16,500,001 17,000,000 16,681,483
1 20,000,001 20,500,000 20,201,112
2044 115,000,000
Note: The Slabs not applicable, have not been shown.
Categories of Shareholders
Categories of Shareholders Number Share held Percentage
Directors, Chief Executive
and their spouse, children
Mian Muhammad Latif Chief Executive Officer 1 16,681,483 14.51
Mian Muhammad Javaid Iqbal Director 1 14,876,483 12.94
[Link] Naeem Director 1 20,201,112 17.57
[Link] Faisal Latif Director 1 2,813,545 2.45
[Link] Farhan Latif Director 1 8,416,948 7.32
[Link] Zeeshan Latif Director 1 6,138,587 5.34
Mr. Tariq Ayub Khan Director 1 1,000 0.00
[Link] Latif Spouse 1 7,459,184 6.49
[Link] Yasmin Spouse 1 285 0.00
[Link] Akthar Spouse 1 338 0.00
Mr Umair Javaid Son 1 1,519 0.00
Financial Institutions,Insurance Companies,Investment Companies,
Joint Stock Companies ,Leasing Companies,Mutual Fund, Textile & etc.
Investment Companies 1 25,000 0.02
Joint Stock Companies 8 110,895 0.10
Manufacturing & Trading 1 8,000 0.01
Provident Fund 1 10,000 0.01
Textile 1 56 0.00
Individuals 2021 38,255,565 33.27
2044 115,000,000 100.00
Form 34
Pattern of Holding of Preference Shares
Held by Shares Holders as at June 30,2018
ShareHolders From To Total Shares
39 1 100 1,044
628 101 500 310,755
121 501 1,000 119,024
319 1,001 5,000 992,836
155 5,001 10,000 1,286,229
80 10,001 15,000 1,053,000
48 15,001 20,000 870,502
37 20,001 25,000 869,082
37 25,001 30,000 1,046,000
16 30,001 35,000 534,355
12 35,001 40,000 455,152
7 40,001 45,000 303,000
22 45,001 50,000 1,080,000
10 50,001 55,000 522,500
8 55,001 60,000 471,500
5 60,001 65,000 315,500
1 65,001 70,000 70,000
12 70,001 80,000 907,500
6 80,001 90,000 499,500
25 90,001 100,000 2,466,500
26 100,001 150,000 3,163,656
20 150,001 200,000 3,611,500
7 200,001 250,000 1,560,714
5 250,001 300,000 1,400,500
5 300,001 400,000 1,715,511
4 400,001 600,000 1,977,500
4 600,001 800,000 2,649,140
1 800,001 1,000,000 1,000,000
1 1,000,001 1,100,000 1,010,000
1 1,300,001 1,400,000 1,367,500
2 1,500,001 3,000,000 4,013,000
3 9,995,001 10,000,000 30,000,000
1 12,355,001 12,360,000 12,357,000
1668 80,000,000
Note: The Slabs not applicable, have not been shown.
Sharesholder's NumberNumber
of of
Category Shareholders
Shares Held Percentage
Son of Director 1 64,500 0.08
Financial Institutions 5 43,357,000 54.20
Joint Stock Companies 7 1,589,001 1.99
Textile 1 137 0.00
Individuals 1654 34,989,362 43.74
1668 80,000,000 100.00
Form of Proxy
I/We _____________________________ of _______________________________________________
being a Member of Chenab Limited (the “Company”) holding _________________________ shares, hereby
appoint ____________________ of _______________________________ who is also a Member of the
Company, as my/our proxy to vote for me/us, and on my/our behalf at the 34nd Extra Ordinary General
Meeting of the Company to be held on January 28, 2022, and at any adjournment thereof.
Signed this _____________ day of ______________2022.
Folio No. CDC Account No.
Participant Account
I.D. No.
Revenue
Stamp Rs.5/-
____________________
The Signature should
agree with the specimen
signature registered with
the Company
WITNESSES:
1. Signature _________________ 2. Signature _________________
Name _________________ Name _________________
NIC _________________ NIC _________________
Address _________________ Address _________________
Note:
1. This Proxy, duly completed, signed and witnessed, must be received at the registered office of the
Company, Nishatabad, Faisalabad no later than forty-eight (48) Hours before the time appointed for the
Meeting.
2. No person shall act as proxy who is not member of the Company (except that a corporation may appoint
a person who is not a member).
3. If a Member appoints more than one proxy and more than one instruments of proxy are deposited by a
member with the Company, all such instruments of proxy shall be rendered invalid.
4. The Proxy shall produce his original NIC or original passport at the time of the Meeting.
5. In case of individual CDC Account holders, attested copy of NIC or passport (as the case may be) of the
beneficial owner will have to be provided with this Proxy.
6. In case of corporate entity, the Board of Directors Resolution/Power of Attorney with specimen signature
of the nominee shall be submitted alongwith this Proxy (unless it has been Provide earlier).
Book Post
If not deliverd return to :
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