ACCORD TEXTILES LIMITED CONTENTS COMPANY INFORMATION VISION & MISSION STATEMENT STATEMENT OF ETHICS & BUSINESS PRACTICES NOTICE OF ANNUAL GENERAL MEETING DIRECTOR'S REPORT TO MEMBERS STATEMENT OF COMPLIANCE REVIEW REPORT TO THE MEMBERS PATTERN OF SHAREHOLDING PATTERN OF SHAREHOLDING ADDITIONAL KEY OPERATING & FINANCIAL DATA AUDITOR'S REPORT TO THE MEMBERS BALANCE SHEET PROFIT & LOSS ACCOUNT CASH FLOW STATEMENT STATEMENT OF CHANGES IN EQUITY NOTES TO THE ACCOUNTS COMPANY INFORMATION BOARD OF DIRECTORS MR. HAIDER ALI (CHAIRMAN/CHIEF EXECUTIVE) MUHAMMAD TAHIR MR. RAHEEM AZEEM MRS. AZRA AHMED MRS. TAHIRA JAVED MR. EBRAHIM FAYEZ HUMAID MRS. FARNAZ HAIDER AUDIT COMMITTEE MR. RAHIM AZEEM (CHAIRMAN) MRS. AZRA AHMED (MEMBER) MRS. FARNAZ HAIDER (MEMBER) CHIEF FINANCIAL OFFICER MR. IMRAN IFTIKHAR CORPORATE SECRETARY MR. IMRAN IFTIKHAR BANKERS & FINANCIAL HABIB BANK LIMITED INSTITUTIONS EMIRATES BANK INTERNATIONAL NATIONAL BANK OF PAKISTAN (FORMER N.D.F.C) AUDITORS M. HUSSAIN CHAUDHURY & CO. CHARTERED ACCOUNTANTS LEGAL ADVISORS CORNELIUS LANE & MUFTI 4, FATIMA JINNAH ROAD, LAHORE. REGISTERED OFFICE 47-A, MAIN GULBERG, LAHORE. HEAD OFFICE 8 - SHERPAO BRIDGE COLONY, LAHORE CANTT. MILLS 20 KM, RAJANA PIR MAHAL ROAD, TEHSIL KAMALIA DISTT. TOBA TEK SINGH Vision and Mission Statement Vision To achieve consistent superior performance in all respects, provide quality products to our valued customers and run the company purely on professional grounds. Mission To identify and satisfy customer needs with good quality products. We aim at achieving continuous improvement with the help of innovative technology applications. We strive diligently to serve our community and protect the environment with integrity and pride. We intend to create a conducive work environment for the employees and aim at a stimulating and challenging team oriented atmosphere which encourages and rewards excellence. STATEMENT OF ETHICS AND BUSINESS PRACTICES We believe that a complete code of ethics is essential for the maintenance of integrity and professionalism in the day-to-day functioning of Accord Textiles Limited. We always place the company's interest first through resource management namely human, financial and other infra structural facilities and to ensure reasonable return to all the shareholders. Conduct business as a responsible and law abiding corporate member of society to achieve its legitimate commercial objective and supports unconditionally the Compliance with best Practices of Corporate Governance for the betterment of corporate culture, We develop and observe cost effective practices in our activities and strive for excellence and quality, We encourage initiative and self- realization in employees through meaningful empowerment. NOTICE OF ANNUAL GENERAL MEETING Notice is hereby given that the 15th Annual General Meeting of the shareholders of ACCORD TEXTILES LIMITED, will be held at its Head Office at 8, Serpao Bridge Colony, Lahore Cantt. on Wednesday, December 31, 2003 at 11:00 a.m. to transact the following business: 1 - To confirm the minutes of the preceding meeting of the shareholders of the company. 2- To receive, consider and adopt the audited accounts of the Company for the year ended 30th September, 2003, together with Directors and Auditor's reports thereon. 3- To appoint the Auditors for the year 2004 and to fix their remuneration. The retiring auditors, M/s M. Hussain Chaudhury & Co., Chartered Accountants, being eligible offer themselves for re-appoimtment. 4- To transact any other business with the permission of the chair. By Order of the Board Place: Lahore ,MRAN |FT|KHAR Dated: December 09, 2003 (Company Secretary) Notes: 1 - The share transfer books of the Company shall remain closed from 30-12-2003 to 06-01-2004 (both days inclusive) 2- A member entitled to attend and vote at the above meeting may appoint another member as proxy. Proxies, in order to be effective, must be received at the Head Office of the Company not later than 48 hours before the time of meeting and must be duly stamped, signed and witnessed. 3- Shareholders are requested to notify a change in their address, if any Director's Report to the Members The Directors welcome you to the 15th Annual General Meeting of the Company and are pleased to place bel you the Audited Accounts and Annual Report for the year ended September 30,2003. Financial Results The financial results of the Company for the year under review are as under: Financial and Ooeratina results 2003 2003 Operating loss -41,643,110 -28,504,874 Financial charges -11,836,450 -8,341,349 Other income 104,762 2,359,618 Loss before taxation -53,374,798 -34,486,605 Taxation -7,613,094 -1,102,222 Loss after taxation -45,761,704 -35,588,827 Extraordinary items 2,803,492 - Loss after taxation and extraordinary items -42,958,212 -35,588,827 Accumulated losses brought forward -644,307,895 -608,719,068 Accumulated losses carried forward -687,266,107 -644,307,895 Reason of Deviation: The Company has incurred a net loss of Rs.53.375 (Million) after charging depreciation of Rs. 17.131 (Million) and financial charges of Rs. 11.836 (Million). The results for the financial year under review are not satisfactory. Prices of cotton showed a constant upward trend in the financial year, specially in the last quarter of the year. On the other hand, the increase in yarn prices was not proportionate with cotton prices causing huge loss. Other reasons of the loss were the overall recessionary trend in the local and international market and lack of working capital. Your Company managed to increase production of yarn during the year under review converted in to 20/s count was 4.009 (Million) kgs as compared to 3.756 (Million) kgs during the preceding year. The management is continuously trying hard to obtain better results. However, the financial results could not reflect the kind of efforts and performance of the management on account of general recession and poor economic conditions prevailing in the country. Dividend In view of net loss for the year under review, the Directors have not recommended any dividend. Outstanding Statutory Payments Other than the amount of income tax deducted at source as specified in Note No. 8 to the Financial Statements, no other statutory payment on account of taxes, duties, levies and charges are outstanding. This lapse in payment is due to severe liquidity problem, which we are facing due to heavy losses since many years. The management is making efforts to regularize its obligation for payment of taxes and is enforcing a strict compliance policy to ensure prompt payments. Earning per share Earning per share for the year under review is Rs. (4.62) Gratuity The Company operates an unfounded gratuity scheme for all of its permanent employees. Corporate and Financial Reporting Framework Presentation of financial statements: The financial statements, present fairly the state of affairs, result of operations, cash flows and changes in equity. Books of Account: Proper books of accounts of the listed company have been maintained. Accounting Policies Appropriate accounting policies have been consistently applied in preparation of financial statements except for the change in accounting policy as stated in note 2.4 and 23.3 to the account and accounting estimates are based on reasonable and prudent judgment. International Accounting Standards: International Accounting Standard, as applicable in Pakistan, have been followed in preparation of financial statement and any departure there from has been adequately disclosed. Internal Controls: The system of internal control is sound in design and has been effectively implemented and monitored. Going Concern: Based on gross loss, accumulated losses, adverse current ratio and over due installments of long term loans, the auditors have expressed their reservation on the viability of the Company to continue as a going concern. Although your company has been facing severe financial problems due to constant loss for the last many years. Your company has managed to get working capital from H.B.L. for the current cotton season. In our opinion in the presence of working capital facility the management dose not foresee any problem in the smooth operation of the company. Corporate Governance: There has been no material departure from the best practices of corporate governance, as detailed in the listing regulations of the Stock Exchanges. Auditors The auditors M/s M. Hussain Chaudhury & Co. Chartered Accountants retired and being eligible to offer themselves for re-appointment. The Board of Directors as suggested by Audit Committee has recommended the re-appointment of M/s M. Hussain Chaudhury & Co. Chartered Accountants, as the auditors of the Company for the coming year. Auditors Committee The Board of Directors in compliance with the Code of Corporate Governance has established an audit committee. Following directors are member: Mr. RaheemAzeem Chairman Mrs. Azra Ahmad Member Mrs. Farnaz Haider Member Pattern of Shareholding A statement showing the pattern of shareholding by the shareholders on September 30,2003 is annexed. Key Operating and financial data A summary of key operating and financial data of the last six years is annexed. Board of Director's Meeting During the year under review seven meetings were held and number of meetings attended by each Director is as follows: Name of Directors Number of meeting attended Mr. Haider AN 7 Mr. Muhammad Thair 3 Mr. Raheem Azeem 7 Mrs. Azra Ahmad 5 Mrs. Tahira javed 3 Mr. Ebrahim Fayaz Humaid Nil (None-resident) Mrs. Farnaz Haider 5 Leaves for absence were granted to the Directors who could not attend the Board meetings due to pre-occupation or illness. Trade in shares of the Company No trading was carried out in the shares of the Company by the Directors, Chief Executive Officer (CEO)- Chief Financial Officer (CFO), Company Secretary, their spouses and minor children. Future Prospects Textile Industry is currently suffering from cotton crises internationally and nationally in Particular. Cotton prices have touched all time high rate of Rs.3500/- per Maund whereas the prices of yarn have not increased accordingly. It has been become very difficult to predict better results for future. Acknowledgment The Directors place on record their appreciation for the devoted efforts and hard work done by workers, Staff Head Officers of the Company during the year. We are also thankful to our suppliers, Shareholders, Banks and Financial Institutions for their continued support and confidence in our company and assured them that we remain committed to do our best utilization of their investment in our Company for growth in future. For and on behalf of the Board Place: Lahore (HAIDER ALI) Dated: December 09, 2003 Chief Executive STATEMENT OF COMPLIANCE WITH THE PRACTICE OF CORPORATE GOVERNANCE TO THE MEMBERS This statement is being presented to comply with the code of corporate governance contained in regulation No.37 of listing regulation of Karachi and Lahore Stock Exchange for purpose of establishing framework of good corporate governance, whereby a listed company is managed in compliance with best practices. The company applies the principles contained in the Code in following manner: 1. The Board of Directors of the Company has always supported implementation of the highest standards of Corporate Governance at all times. 2. The Directors have confirmed that none of them is serving as a Director in more than ten listed Companies, including this Company. 3. The Company has prepared a mission statement, statement of ethics and business practices and overall corporate strategy. The significant policies are in process of finalization. 4. The Board is mindful of its responsibilities to the shareholders for the performance of their as directors 5. The meetings of the Board were presided over by the Chairman and, in his absence, by a director elected by the Board for this purpose and the Board met at least once in every quarter. Written notices of the Board meetings, along with agenda and working papers, were circulated at least seven days before the meetings. The minutes of the meetings were appropriately recorded and circulated. 6. All the resident directors of the Company are registered as taxpayers and none of them has defaulted in payment of any loan to a banking company, a DPI or an NBFI or, being a member of a Stock Exchange has been declared as a defaulter by that Stock Exchange. 7. The Board arranged orientation courses for its directors during the year apprised them of their duties and responsibilities and briefed them regarding amendments in the Companies Ordinance, 1984 and other corporate laws. 8. The director's report has been prepared in compliance with the requirements of the code and fully describes the salient matters required to be disclosed. 9. No casual vacancies ware occurred in the Board during the year. 10. The Board has the audit committee with its terms of reference. The audit committee ensures the independence of the internal audit function and the independence and objectivity of the external auditors. The audit committee meets regularly before Board meetings and committee report is presented to the full meeting. 11. The Board of Directors has implemented an organizational structure for the company and has appointed the Chief Executive, Chief Financial Officer, Head of Internal Audit and the Company Secretary to manage the affairs of the company in accordance with the Code of Corporate Governance. 12. The quarterly un-audited financial statements of the company are published and circulated along with the Director's review. 13. All material information as described in clause (XXiii) of the Code of Corporate Governance is disseminated to the Stock Exchange and Securities & Exchange Commission of Pakistan in time. 14. The financial statements of the company were duly endorsed by the CEO and the CFO before approval of the Board. 15. Significant issues and policies are always placed before the Board for their consideration and approval. 16. The Directors, CEO and Executives do not hold any interest in the shares of the company otherthan that disclosed in the pattern of shareholding. 17. The statutory auditor of the company has confirmed that they have been given a satisfactory rating under the Quality Control Review Program of the Institute of Chartered Accountants of Pakistan (ICAP), that they or any of the partners of the firm, their spouses and minor children do not hold shares of the Company and that the firm and all its partners are in compliance with the international Federation of Accountants (IFAC) guidelines on code ethics as adopted bythe Institute of Chartered Accountant of Pakistan. 18. The Statutory auditors or the persons associated with them have not been appointed to provide other services except in accordance with the listing regulation and the auditors have confirmed that they have observed IFAC guidelines in this regard. 19. The Board has set-up effective internal audit function with suitable qualified and experienced personnel, which are involved in the internal audit function on full time basis. 20. We confirm that all material principles contained in the code have been complied with except few towards which responsible progress is being made by the Company to seek compliance by the end of the next financial accounting year. For and on behalf of the Board Lahore: (HAIDER ALI) Dated: December 9,2003. Chief Executive REVIEW REPORT TO THE MEMBERS ON STATEMENT OF COMPLIANCE WITH BEST PRACTICES OF CODE OF CORPORATE GOVERNANCE We have reviewed the Statement of Compliance with the best practices contained in the Code of Corporate Governance prepared by the Board of Directors of ACCORD TEXTILES LIMITED, to comply with the Listi Regulation No.37 (Chapter XI) and No.40 (Chapter XIII) of the Karachi Stock Exchange and Lahore Stock Exchange respectively, where the Company is listed. The responsibility for compliance with the Code of Corporate Governance is that of the Board of Directors < the Company. Our responsibility is to review, to the extent where such compliance can be objectively verifii whether the Statement of Compliance reflects the status of the Company's compliance with the provisions the Code of Corporate Governance and report if it does not. A review is limited primarily to inquiries of the Company personnel and review of various documents prepared by the Company to comply with the Code. As part of our audit of financial statements we are required to obtain an understanding of the accounting ai internal controls systems sufficient to plan the audit and develop an effective audit approach. We have not carried out any special review of the internal control system to enable us to express an opinion as to whetf the Board's statement on internal control covers all controls and the effectiveness of such internal controls. Based on pur review, nothing has come to our attention which causes us to believe that the Statement of Compliance does not appropriately reflect the Company's compliance, in all material respects, with the bes practices contained in the Code of Corporate Governance as applicable to the Company for the year ende September 30, 2003. Lahore (M. HUSSAIN CHAUDHURY & CO.) Date: December 09, 2003 Chartered Accountants PATTERN OF SHAREHOLDING AS ON SEPTEMBER 30,2003 SHAREHOLDINGS NO. OF SHARE From To HOLDERS TOTAL SHARES HELD 1 100 6 600 101 500 635 316,800 501 1,000 5 5,000 1,001 5,000 14 39,700 5,001 10,000 8 77,100 15,001 20,000 2 38,000 40,001 45,000 1 43,600 45,001 50,000 1 46,100 65,001 70,000 1 67,400 70,001 75,000 1 75,000 190,001 195,000 1 193,000 195,001 200,000 1 200,000 220,001 225,000 1 223,552 240,001 245,000 1 241,627 295,001 300,000 1 300,000 415,001 420,000 1 415,184 420,001 425,000 1 422,352 495,001 500,000 1 500,000 835,001 840,000 1 836,000 925,001 930,000 1 930,000 1,395,001 1,400,000 1 1,400,000 2,925,001 2,930,000 1 2,928,985 686 9,300,000 CATEGORIES OF NO. OF TOTAL SHARE HOLDERS SHARE SHARE PERCENTAGE % HOLDERS HELD Individuals 675 7,163,800 77.03 Public Ltd Company 1 10,000 0.11 Banking/lnvt. Company 6 1,745,700 18.77 Insurance Company 4 380,500 4.09 686 9.300.000 100 PATTERN OF SHAREHOLDING AS AT SEPTEMBER 30,2003 - ADDITIONAL INFORMATION AS REQUIRED BY THE CODE OF CORPORATE GOVERNANCE S. NO. NAME SHARES PERCENTAGE HELD % 1- Directors. Their Spouses and Minor Children i) Mr. Haider AM (C.E.O.) 2,928,985 31.49 ii) Mrs. Azra Ahmed (Director) 422,352 4.54 iii) Muhammad Tahir (Director) 500 0.01 iv) Mr. Rahim Azeem (Director) 500 0.01 v) Mrs. Tahira Javed (Director) 241,627 2.6 vi) Mrs. Farnaz Hadier (Director) 836,000 8.99 vii) Mr. Ebrahim Fayez Al - Hummaid (Director) 223,552 2.4 2- Public Limited Companies i) Highnoon Laboratories Ltd. 10,000 0.11 3- Financial Institutions i) NBP Trustee Department 930,000 10 ii) Pakistan Kuwait Investment Company 200,000 2.15 iii) Crescent Investment Bank Limited 2,200 0.02 iv) Indus Bank Limited 46,100 0.5 v) Investment Corporation of Pakistan 67,400 0.72 vi) National Bank of Pakistan (NDFC) 500,000 5.38 4- Insurance Companies i) State Life Insurance Corporation 300,000 3.23 ii) Adamjee Insurance Co. Ltd. 75,000 0.81 iii) Pakistan Guarantee Insurance Co. Ltd. 5,000 0.05 iv) Silver Star Insurance Co. Ltd. 500 0.005 5- Shareholders having holding 10% or more i voting interest i) Mr. Haider Ali 2,928,985 31.49 ii) Mrs. Aasiya Khurram 1,400,000 15.05 iii) N.B.P. Trustee Department 930,000 10 Key Operating And Financial Data 2003 2003 2001 2000 1999 1998 No. of Shift worked 1,092 1,092 1,092 1,092 1,086 1,086 No. of Spindles Worked 17,280 17,280 17,280 18,816 19,200 19,200 Actual production after conversion 4,009,448 3,756,577 3,509,190 3,523,401 3,643,361 3,829,232 into 20/s count (Kgs.) Rupees in '000' Turn over (net) 268,418 220,445 241,091 219,394 226,621 239,070 Gross Profit / (loss) -35,866 -22,257 -18,501 11,476 -31,837 -36,923 Operating profit/ (loss) -41,643 -28,505 -24,433 5,103 -37,817 -42,301 Financial charges 11,836 8,341 7,509 4,955 34,778 47,847 Profit / (Loss) after taxation -45,761 -35,589 -31,320 4,174 -71,743 -91,027 Paid up Capital 93,000 93,000 93,000 93,000 93,000 93,000 Shareholders Equity -548,375 -551,308 -515,719 -484,644 -486,493 -414,750 Long term liabilities 320,388 367,235 414,713 457,927 429,386 434,112 Deferred liabilities 71,842 32,684 29,844 32,139 33,320 35,809 Current liabilities 432,214 335,922 291,098 226,601 270,776 194,514 Fixed assets 323,471 339,190 357,095 376,207 395,801 417,017 Current assets 40,750 27,727 45,081 39,909 35,281 16,761 Earning per share -4.62 -3.83 -3.37 0.45 -7.71 -9.79 ACCORD TEXTILES LIMITED '- AUDITORS' REPORT TO THE MEMBERS We have audited the annexed balance sheet of ACCORD TEXTILES LIMITED as at September 30, 2003 and the related profit and loss account, cash flow statement and statement of changes in equity together with the notes forming part thereof, for the year then ended and we state that we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit. It is the responsibility of the Company's management to establish and maintain a system of internal control, and prepare and present the above said statements in conformity with the approved accounting standards and the requirements of the Companies Ordinance, 1984. Our responsibility is to express an opinion on these statements based on our audit. We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the above said statements are free of any material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the above said statements. An audit also includes assessing the accounting policies and significant estimates made by management, as well as, evaluating the overall presentation of the above said statements. We believe that our audit provides a reasonable basis for our opinion and, after due verification, we report that: (a) The Company has incurred gross loss of Rs. 35.866 million during the year and it has accumulated losses of Rs. 641.375 million as at balance sheet date. The current liabilities of the company exceed its current assets by Rs. 391.464 million and its total liabilities exceed its total assets by Rs. 460.014 million as of that date. The company has defaulted on certain installments of its long terms loans / finances as specified in Note 4 and 5. The company is further liable to deposit income tax deducted at source on various payments made as referred as explained in Note 8.2. These factors raise serious doubts about the Company operating as going concern and therefore it may be unable to realise its assets and discharge its liabilities in the normal course of business. This concept shall only be valid if the lenders support remains available and the management makes improvement in the market for the Company's product in the foreseeable future. No adjustments if any has been made in the accounts to state the assets and liabilities at their net realisable value. (b) in our opinion, proper books of account have been kept by the company as required by the Companies Ordinance, 1984 (c) inouropinion: (i) the balance sheet and profit and loss account together with the notes thereon have been drawn up in conformity with the Companies Ordinance, 1984, and are in agreement with the books of account and are further in accordance with accounting policies consistently applied except for change in accounting policy as stated in Note 23.3 to the financial statements with which we concur; (ii) the expenditure incurred during the yearwasforthe purpose of the Company's business; and (iii) the business conducted, investments made and the expenditure incurred during the year were in accordance with the objects of the Company; the financial statements of the matters referred to in Para (a), the balance sheet, profit and loss account, cash flow statement and statement of changes in equity together with the notes forming part thereof conform with approved accounting standards as applicable in Pakistan, and, give the information required by the Companies Ordinance, 1984, in the manner so required and respectively give a true and fair view of the state of the company's affairs as at September 30,2003 and of the loss, its cash flows and changes in equity for the year then ended; and (e) in ouropinion no zakatwas deductible at source undertheZakat and UshrOrdinance, 1980 (XVIII of 1980). LAHORE (M. HUSSAIN CHAUDHURY & CO.) Dated: December 09, 2003 Chartered Accountants BALANCE SHEET AS AT SEPTEMBER 30, 2003 Note 2003 2003 CAPITAL AND LIABILITIES Rupees Rupees Share Capital and Reserves Authorised capital 15,000,000 (2003: 15,000,000) ordinary shares 150,000,000 150,000,000 of Rs. 10 each Issued, subscribed and paid up capital 9,300,000 (2003: 9,300,000) ordinary shares of Rs. 10 each fully paid in cash 93,000,000 93,000,000 Accumulated loss -641,374,689 -644,307,895 -548,374,689 -551,307,895 Surplus on Revaluation of Fixed Assets 3 88,360,247 184,302,435 Long Term Loans / Finances Finances under mark-up arrangements 4 56,816,843 60,463,836 Demand finance 5 263,571,000 306,771,000 320,387,843 367,234,836 Deferred Liabilities 6 71,842,445 32,683,721 Current Liabilities Current maturity of long term loans / finances 7 105,403,903 63,156,355 Creditors, accrued and other liabilities 8 316,906,300 262,887,603 Dividend payable 9 1,672,321 1,672,321 Provision for taxation 8,231,935 8,205,296 432,214,459 335,921,575 Contingencies and Commitments 10 - - 364,430,305 368,834,672 The annexed notes from (1 to 30) form an integral part of these accounts. PROPERTY AND ASSETS Note 2003 2003 Rupees Rupees Tangible Fixed Assets Operating fixed assets 11 323,470,939 339,189,815 Capital work in progress - 1,708,681 323,470,939 340,898,496 Long Term Deposits 12 209,180 209,180 Current Assets Store and spares 13 723,257 771,476 stock in trade 14 11,415,568 10,128,120 Trade debts 15 9,167,796 7,459,760 Advances, deposits, prepayments and other receivables 16 5,307,072 8,985,168 Cash and bank balances 17 14,136,493 382,472 40,750,186 27,726,996 364,430,305 368,834,672 PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED SEPTEMBER 30,2003 Note 2003 2003 Rupees Rupees Sales 18 268,418,227 220,444,726 Cost of sales 19 -304,284,583 -242,702,068 Gross Loss -35,866,356 -22,257,342 Administrative, selling and general expenses 20 -5,776,754 -6,247,532 Operating Loss -41,643,110 -28,504,874 Other income 21 104,762 2,359,618 Financial and other charges 22 -11,836,450 -8,341,349 Loss before Taxation -53,374,798 -34,486,605 Taxation 23 7,613,094 -1,102,222 Loss after Taxation -45,761,704 -35,588,827 Extraordinary items 24 2,803,492 - Loss after Taxation and Extraordinary Items -42,958,212 -35,588,827 Accumulated loss brought forward -644,307,895 -608,719,068 Loss Available for Appropriation -687,266,107 -644,307,895 Transfer from surplus on revaluation of fixed assets on incremental depreciation - Prior years 41,300,234 - - Current year - net of deferred tax 4,591,184 - 45,891,418 - Accumulated Loss Transferred to Balance Sheet -641,374,689 -644,307,895 Earnings Per Share - Basic 25 -4.62 -3.83 CASH FLOW STATEMENT FOR THE YEAR ENDED SEPTEMBER 30,2003 Cash Flow from Operating Activities Loss before taxation -53,374,798 -34,486,605 Adjustment for: 17,131,571 18,116,354 Depreciation 7,000 807,455 Bad debts 824,582 780,633 Provision for gratuity -7,880 Gain on sale of Vehicle 11,836,450 8,341,349 Financial charges 29,791,723 28,045,791 Operating Profit / (loss) before working capital changes -23,583,075 -6,440,814 Decrease / (increase) in current assets Stores and spares 48,219 753,382 Stock in trade -1,287,448 17,965,450 Trade debts -1,715,036 -5,246,225 Advances, deposits, prepayments and other receivables 4,199,134 950,810 Decrease in current liabilities Creditors, accrued and other liabilities 47,059,745 43,448,340 Cash generated from operations 48,304,614 57,871,757 Gratuity paid -404,658 -290,483 Income tax paid -1,836,490 -635,518 Financial charges paid -959,972 -4,725,797 Net cash from operating activities 21,520,419 45,860,145 Cash Flow from Investing Activities Fixed capital expenditure -192,518 -211,123 Disposal of fixed asset 525,000 - Capital work in progress -28,616 -100,000 Net cash from / (used in) investing activities 303,866 (3,11,123) Cash Flow from Financing Activities Long term loans / finances repaid -5,713,479 -36,400,027 Director's loan -2,356,785 2,513,674 Short term finances - -13,821,000 Net cash used in financing activities -8,070,264 -47,707,353 Net increase / (decrease) in cash and cash 13,754,021 -2,158,331 equivalents Cash and cash equivalents at the beginning of year 382,472 2,540,803 Cash and cash equivalents at the end of year 14,136,493 382,472 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED SEPTEMBER 30, 2003 Particulars Share Capital Unappropriated Loss Total Rupees Rupees Rupees Balance as at October 01, 2001 as previously stated 93,000,000 -608,964,694 -515,964,694 Effect of change in accounting policies of retirement benefits IAS 19 : Employee Benefits - 245,626 245,626 Restated balance as at September 30, 2001 93,000,000 -608,719,068 -515,719,068 Loss for the year after taxation - -35,588,827 -35,588,827 Balance as on September 30, 2003 93,000,000 -644,307,895 -551,307,895 Loss for the year after taxation - -42,958,212 -42,958,212 Transfer from surplus on revaluation of fixed assets on incremental depreciation charged to: Prior years - 41,3