This action might not be possible to undo. Are you sure you want to continue?
EXIDE PAKISTAN LIMITED CORPORATE PROFILE NOTICE OF MEETING CHAIRMANS REVIEW REPORT OF THE DIRECTORS STATEMENT UNDER SECTION 237 OF PERFORMANCE HIGHLIGHTS GRAPHIC ILLUSTRATION STATEMENT OF COMPLIANCE REVIEW REPORT TO THE MEMBERS AUDITORS REPORT TO THE MEMBERS BALANCE SHEET PROFIT AND LOSS ACCOUNT CASH FLOW STATEMENT STATEMENT OF CHANGES IN EQUITY NOTES TO THE ACCOUNTS CATEGORIES OF SHAREHOLDERS PATTERN OF SHAREHOLDING FORM OF PROXY CHLORIDE PAKISTAN (PRIVATE) LIMITED CORPORATE PROFILE REPORT OF THE DIRECTORS AUDITORS REPORT TO THE MEMBERS BALANCE SHEET PROFIT AND LOSS ACCOUNT CASH FLOW STATEMENT STATEMENT OF CHANGES IN EQUITY NOTES TO THE ACCOUNTS 61 62 63 64 65 66 67 68
5 6 7 9 11 12 13 14 16 17 18 20 21 22 23 53 54
shareholders. 3. 4. financial institutions.Vision To remain leader in automotive battery industry by supplying quality product to the customers at affordable price and to satisfy their needs by providing reliable product as per international standard and best suited to local environment. To be good citizen and contribute effectively in betterment and prosperity of our country. To train and motivate employees for building up dedicated and loyal team. To be honest and fair with all partners namely. government and the customers. suppliers. 4 . Mission 1. productivity and elimination of wastage by effective implementation of total quality control. employees. Continous improvement in workmanship. process. 2.
Haider Mehdi S.pk 5 . M. Barclays Bank PLC Pakistan BankIslami Pakistan Ltd Bank of Punjab Bank of Tokyo Mitsubishi UFJ. Oman International Bank S.I. Ltd.A. Faiq .O.CORPORATE PROFILE BOARD OF DIRECTORS Arif Hashwani Arshad Shehzada Altaf Hashwani Hussain Hashwani Muhammad Asif S. HSBC Middle East Bank Ltd.T. MCB Bank Ltd.pk E-mail: exidepk@exide.E. S..Secretary BANKERS Allied Bank Ltd.exide. Habib Bank Ltd. REGISTERED OFFICE A-44. NIB Bank Limited Standard Chartered Bank (Pakistan) Ltd.com. Habib Metropolitan Bank Limited AUDITORS A.A. Dignam & Co.Chairman . Website: www. F. SOLICITORS Orr. Manghopir Road.Managing Director/ Chief Executive CHIEF FINANCIAL OFFICER & COMPANY SECRETARY S. Ferguson & Co. Karachi-Pakistan. Hill Street. Faiq Khurram Ali . Askari Bank Limited JS Bank Ltd.com. Haider Mehdi AUDIT COMMITTEE Altaf Hashwani Hussain Hashwani S. M.G. Citibank N.Chairman . Off. United Bank Ltd.
July 30. 2009. Proxies in order to be valid must be deposited with the Company not less than 48 hours before the time appointed for the meeting.NOTICE OF ANNUAL GENERAL MEETING Notice is hereby given that the Fifty-Seventh Annual General Meeting of the shareholders of EXIDE Pakistan Limited will be held on Friday. 3. Karachi. 4. b) The Share Transfer Books of the Company will remain closed from July 23. To read and confirm minutes of the Fifty-Sixth Annual General Meeting of the shareholders of the Company held on Thursday. Hill Street Manghopir Road. d) CDC shareholders or their proxies are required to bring with them original Computerised National Identity Cards or Passports along with the participants I. number and their account numbers at the time of attending the Annual General Meeting in order to authenticate their identity.3. Ziauddin Ahmed Road. 2. 2010 both days inclusive. Karachi to transact the following business: ORDINARY BUSINESS: 1. SITE.30 hours at the Registered Office of the Company at A-44. July 30. Ground Floor State Life Building No.D. By order of the Board S HAIDER MEHDI Director & Company Secretary Karachi: June 29. NOTES: a) A member entitled to attend and vote at the Annual General Meeting is entitled to appoint another member as a proxy to attend and vote on his/her behalf. Dr. 6 . To appoint auditors for the year 2010-2011 and fix their remuneration. c) Shareholders are requested to immediately notify the Company any change in their address and also forward a photocopy of their Computerised National Identity Card if not yet furnished at the office of the Registrar M/s. 2010. 2010 to July 30. To declare final dividend for the year ended March 31. 2010. THK Associates (Private) Limited. 2010 at 11. 2010 together with the Directors and Auditors reports thereon. as recommended by the Directors. To receive and adopt the Audited Statements of Accounts for the year ended March 31.
motorcycle and DES batteries. 2010 along with review on the performance of your Company.982 units in the previous year. In the international market the prices of refined lead had upward trend which had similar unfavorable impact on local recycled lead. high inflation affecting cost and competitiveness. 5.2% in the preceding year. continuous increase in energy cost and other inflationary factors.8% manufacturing at 5.7%. low saving. It further got aggravated by meager resources diverted for maintaining countrys security.1% in the year 2009-10 from 1. I am pleased to inform you that your Company has been honored with Brand of the Year Award 2009. 7 .19 billion from Rs. It further accentuated unfavorable in cost push as a result of depreciating Rupee.63 billion compared to preceding year resulting from price and volume growth in automotive.7% in the previous year due to decline in trade deficit as a result of fall in international commodity prices and increased home remittances. Your Company has signed an Agreement with Fauji Fertilizer Bin Qasim Limited for the supply of Sulphuric acid for further three years from February 2010 to January 2013. SALES Net sales revenue of the company for the year 2009-10 was up by 10% to Rs. Despite unfavorable security and economic situation in July March 2010 locally assembled cars.5% GDP growth rate for the fiscal year 2010-11 with contribution of agriculture sector at 3. Water shortages adversely affected agriculture output.639 units in the corresponding period in 2009. Overall automotive sector grew by 27% to 154. The Government has targeted 4. Due to the situation in the country the foreign direct investment was not forthcoming to assist the economic growth.907 units as compared to 77. Pakistans current account deficit expected to contract around 2. jeeps and LTV sales improved by 27% to 98. THE INDUSTRY Improvement in growth of automotive sector in the preceding years is instrumental in better utilization of capacity by battery industry. law and order situation. THE ECONOMY Pakistans economy continued its weakness on account of perennial structural challenges of low domestic resources mobilization.8% of GDP in the outgoing year from 5. Inspite of all impediments the GDP growth is expected to improve to 4. inefficient productivity/skill.6% and service sector at 4. energy crises affected industrial production and exports.CHAIRMANS REVIEW IN THE NAME OF ALLAH THE MOST BENEFICENT AND MERCIFUL It is my pleasure to welcome you to the 57th Annual General Meeting of your Company and present to you the Audited Statements of Accounts for the year ended March 31. . 6.889 units from 121.
Earnings per share improved to Rs. 237. I am also grateful to our Bankers. Administration and general expenses decreased to Rs. Financial cost decreased from Rs. Pre tax profit for the year 2009-10 increased from Rs. 57. 82.9 million from Rs. although the cost pressures will remain on account of Rupee devaluation. cost control and after sales service to improve its competitiveness.0 million achieved.5% of net sales revenue as compared with 11% achieved in 2008-2009.5 million from Rs. 304. 182. 59. Shareholders. 264. 34.5 million recorded last year.2 million. The current ratio stood at 1. 382.2 times and 12 days respectively. up by 67%.92 as compared with Rs.9 recorded in the previous year.23:1 while the break up value of share was Rs.PRODUCTION Production activities were effectively planned and adjusted to cater to the market demand both in terms of volume and quality. FUTURE PROSPECTS It is anticipated that indigenous organized battery industry will perform satisfactorily. Inventory turn over rate and average collection period comes to 4.5 million to Rs.0 million to Rs. Suppliers. 2010 . Your management is determined to avail full benefits of the opportunities by continued focus on quality. PROFITABILITY As against 10% increase in net sales revenue.1 million from Rs.2 million was 12. productivity. 159. rising cost of utilities and other inflationary factors.40 as on March 31. Selling and distribution expenses increased to Rs. 296.2 million as a result of increased volume and inflationary impact. higher raw material prices. 8 ARIF HASHWANI CHAIRMAN Karachi: June 29. Retailers and valued Customers including Fauji Fertilizer Bin Qasim Limited. Main Dealers.21.78. Operating profit increased by 45% to Rs. cost of sales increased by 8% and as such Gross Profit amounting to Rs 775. Stress on quality control at all stages of production processes was implemented with great vigor for further strengthening quality standards of the products of your Company. 2010.9 million as a result of better management of working capital. the Original Equipment Manufacturers and Government Organizations. ACKNOWLEDGEMENT On my behalf and on behalf of the Board of Directors of your company I take this opportunity of acknowledging the devoted and sincere services of employees of all cadres of the Company.
plant and equipment .287 46.927 180.DIRECTORS REPORT The Directors of your Company have pleasure in submitting their report on audited statements of accounts for the year ended March 31. e) The internal control system is being implemented and monitored.92 .498 Profit available for appropriation Appropriations: Transfer to General Reserves Proposed Cash Dividend @ 60% (Rs. 1984.3 to the Accounts. d) International Financial Reporting Standards.267) 197.429 Transferred from surplus on revaluation of property.0 per share) Un-appropriated profit carried forward Earnings per share We confirm that: a) The financial statements have been drawn up in conformity with the requirements of the Companies Ordinance. FINANCIAL HIGHLIGHTS Profit before taxation Taxation Profit after taxation Un-appropriated profit brought forward (Rupees 000) 303.1. The basis of valuation of inventory of SITE Battery Plant was changed from FIFO Method to Moving Average Method which does not have signifiant impact on Profit and Loss Account of the company.142 243.000 33. operating results. The necessary disclosure is appearing in Note 2. 1984 and present fairly state of its affairs. 2010.Current year net of tax 5.554 (106. 9 248.899 35. cash flow and changes in equity.028 34. f) There are no significant doubts about the Companys ability to continue as a going concern. b) Proper books of accounts have been maintained in the manner required under Companies Ordinance.6. c) Appropriate accounting policies have been applied in the preparation of financial statements and accounting estimates are based on reasonable and prudent judgement. as applicable in Pakistan have been followed in preparation of the financial statements.
i) j) Outstanding duties and taxes. Arshad Shehzada. 2010. Arif Hashwani. Arif Hashwani 2.887 thousand and Rs. Hussain Hashwani 5. S. F. h) The key operating and financial data of the past ten years is annexed to this report. S. We confirm that other directors and CFO and their spouses and minor children have made no transactions of the Companys shares during the year. k) Value of investments of provident and gratuity funds was Rs. n) During the financial year 2009-10 Mr. Mr. Faiq 5 5 4 5 2 5 5 m) Pattern of shareholding as at March 31.41. o) Statement of Compliance with the Code of Corporate Governance is annexed to this report. S. Chairman of the Company purchased 87. 2010 future prospects and other matters of concern to the Company forms part of this report. 10 ARIF HASHWANI Chairman Karachi: June 29.906 thousand. The attendance of the directors is as under: 1. Mr. S.793 shares of the Company and Mr. Haider Mehdi 7. Arshad Shehzada 3.. retire and being eligible. The Chairmans Review dealing with the performance of the Company during the year ended March 31. Mr. p) The present Auditors M/s.89. Mr. l) The number of board meetings held during the year 2009-10 was five. 2010 . offers themselves for reappointment. M. Mr. Chief Executive purchased 10 shares of the Company. Mohammed Asif 6. if any. Mr. 2010 is annexed to this report. Chartered Accountants. have been disclosed in the financial statements. Ferguson & Co. respectively as on March 31. Altaf Hashwani 4.g) There has been no material departure from the best practices of corporate governance as detailed by the listing regulations. Mr. A.
for the previous years but subsequent to the acquisition of the subsidiaries controlling interest by the holding company. 100% ARSHAD SHEHZADA Chief Executive ARIF HASHWANI Chairman 11 . 1995. . the net aggregate amount of revenue profits/losses are not reported hereunder. The Company subscribed 15. Since the production activities in Chloride Pakistan (Private) Limited could not be started so far.for the year ended March 31. wholy owned subsidiary of the Company. 2010. The net aggregate amount of profits less losses of the subsidiary companies so far as these have been dealt with or provision made for losses in the accounts of the holding company: . . Chloride Pakistan (Pvt) Ltd.500 and again 3. along with the Auditors and Directors Reports thereon are annexed to these accounts. 2010 The net aggregate amount of profits less losses of the subsidiary companies so far as these concern members of the holding company and have not been dealt with in the accounts of the holding company: . 2010 of Chloride Pakistan (Private) Limited.380 and 3. Extent of the interest of the holding company (Exide Pakistan Limited) in the equity of its subsidiaries as at March 31.500 shares at par of Chloride Pakistan (Private) Limited. 2010.STATEMENT UNDER SECTION 237(1)(e) OF THE COMPANIES ORDINANCE.for the year ended March 31. a wholly owned subsidiary of the Company during the year ended March 31. but subsequent to the acquisition of the controlling interest by the holding Company. 1996 and 1999 respectively with the approval of the Directors. 1984 The Audited Statements of Accounts for the year ended March 31.for the previous years.
057 450.276 172.447 134.517 145.334 53.711 334.000 671.357 599.154 91.935 57.502 776.891 129.964 255.516 422.358 13.46 109.253 139.NET SALES OPERATING PROFIT PROFIT / (LOSS) BEFORE TAX PROFIT / (LOSS) AFTER TAX CASH DIVIDEND CASH DIVIDEND % STOCK DIVIDEND STOCK DIVIDEND % PAID-UP SHARE CAPITAL RESERVES & UNAPPROPRIATED PROFIT SHAREHOLDERS' EQUITY SURPLUS ON REVALUATION OF FIXED ASSETS TANGIBLE FIXED ASSETS NET CURRENT ASSETS NET ASSETS EMPLOYED EARNINGS PER SHARE BEFORE TAX EARNINGS PER SHARE AFTER TAX SHARE BREAK-UP VALUE RATIO OF: OPERATING PROFIT TO SALES 7% 6% 8% 10% 8% 8% 9% 6% 5% 6% PROFIT / (LOSS) BEFORE TAX TO SALES -% 3% 6% 9% 7% 6% 7% 5% 3% 5% PROFIT / (LOSS) AFTER TAX TO SALES (2)% 1% 4% 6% 4% 4% 5% 3% 2% 3% RETURN / (LOSS) ON EQUITY (7)% 4% 11% 18% 15% 14% 18 % 16% 16% 22 % RETURN / (LOSS) ON NET ASSETS EMPLOYED (6)% 3% 9% 14% 12% 8% 11 % 10% 12% 17 % * Effects of amendments made in the Fourth Schedule to the Companies Ordiance.749 273. 1984.045* 32.665 298. have not been considered in performance highlights.250 301.845* 32.87 16.922 43.191 362.551 `97.628 1.224 1. 12 PERFORMANCE HIGHLIGHTS PERFORMANCE HIGHLIGHTS 2001 729.115 239.123 16.935 60.92 159.109* 15 54.003 118.057 187.964 2010 6.687 90.655 360.538 57.001 RUPEES '000 1.057 310.108* 10 15 54.508 1.203 745.60 67 77 PERCENTAGE 25.811* 20 54.554 197.977 62.576 10.816 505.538 22.406* 8.099 28.268* 2005 2006 2007 2008 2009 5.603 RUPEES (3) 45 4 2 45 9 5 50 17 11 57 16 18 10 10.988* 310.028 50 54.499 844.865 241.999 8.882 97.377* 2003 760.206 27.716 (202) (16.150.873 244.604 46.217* 30 54.642 94.514 13.465 155.95 93 26.812* 43.459 3.42 17.288.465 146.385 264.248 416.223 304.662 506.907 725.362 2004 994.31 33.73 34.542 397.305 5.022.135 382.057 54.40 1.021 590.136 929.973 126.647 320.524 182.287 33.521 41.529.057 671.057 54.000 900.107 502.150 142.240) 54.630.843 2002 705.881 364.794 9.499 249.458 809.502 303.980 .67 21.955 248.964 536.859 143.624 241.167 323.755* 243.000.057 214.931.87 134.788* 268.466 84.774 192.189.057 255.797 460.938 31.167 138.772 107.514 25 25 54.026 87.30 53.899 60 56.057 189.
IN MILLION 4000 RS. IN MILLION 800 600 400 200 0 2006 2007 2008 YEAR 2009 2010 NET SALES SHAREHOLDERS EQUITY 7000 6189 6000 5630 RS.GRAPHIC ILLUSTRATION 159 1530 160 155 150 145 140 135 130 125 120 115 110 105 100 95 90 85 80 75 70 65 60 55 50 45 40 35 30 BREAK-UP VALUE PER SHARE 134 TURNOVER VS NET ASSETS EMPLOYED 1932 3022 5630 1001 929 809 759 800 6189 1150 1100 1000 109 93 RS. IN MILLION 900 RS. IN MILLIONS 5000 3022 3000 1932 2000 1530 1000 0 2006 2007 2008 YEAR 925 900 875 850 825 800 775 750 725 700 675 650 625 600 575 550 525 500 475 450 425 400 375 350 325 300 275 250 225 200 901 726 590 505 417 2009 2010 2006 2007 2008 YEAR 2009 2010 13 . PER SHARE 700 600 500 400 300 200 100 77 2006 NET SALES NET ASSETS EMPLOYED 2007 2008 YEAR 2009 2010 NET ASSETS EMPLOYED 1150 1200 1001 1000 929 800 759 RS.
At present the Board includes one independent non-executive director who is also representing minority share holders. a DFI or an NBFI or. The Directors have been provided with the copies of the listing regulations of the stock exchanges. 7.STATEMENT OF COMPLIANCE WITH THE CODE OF CORPORATE GOVERNANCE This statement is being presented to comply with the Code of Corporate Governance contained in Regulation No. by a director elected by the Board for this purpose and the Board met at least once in every quarter. including their remuneration . including this Company. 3. the Companies Memorandum Articles of the Association and the Code of Corporate Governance. 2. The Company encourages representation of independent non-executive directors and directors representing minority interests on its Board of Directors. whereby a listed company is managed in compliance with the best practices of corporate governance. along with agenda and working papers. 5. which has been signed by all the directors and senior management employees of the Company. XIII of Lahore Stock Exchange (Guarantee) Ltd for the purpose of establishing a framework of good governance. The minutes of the meetings were appropriately recorded and circulated. The Company has prepared a Statement of Ethics and Business Practices. The Company has applied the principles contained in the Code in the following manner: 1. 9. being a member of a stock exchange. A complete record of particulars of significant policies along with the dates on which they were approved or amended has been maintained. No casual vacancy was occurred in the Board of Directors of the Company during the year. have been taken by the Board. The Board has developed a vision/mission statement and formulated significant policies of the Company. All the powers of the Board have been duly exercised and decisions on material transactions. 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. 4. The Board has approved the appointment of the Chief Financial Officer. The directors have confirmed that none of them is serving as a director in more than ten listed companies. were circulated at least seven days before the meetings. 6. 35 of listing regulations of The Karachi Stock Exchange (Guarantee) Ltd and Regulation No. Written notices of the Board meetings. has been declared as a defaulter by that stock exchange. including appointment and determination of remuneration and terms and conditions of employment of the CEO and other executive directors. The meetings of the Board were presided over by the Chairman and. 14 10. 8. The Directors are well conversant with their duties and responsibilities. Company Secretary and Head of Internal Audit. in his absence.
17. 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 of ethics as adopted by the Institute of Chartered Accountants of Pakistan. 14. The Board has appointed a Head of Internal Audit who is suitably qualified and experienced and is conversant with the policies and procedures of the Company and he is involved in the internal audit function on a full time basis. 15. The directors. 12. 13. 11. The terms of reference of the committee have been formed and advised to the committee for compliance. of whom two are non-executive directors including the chairman of the committee. 2010 15 . The statutory auditors or the persons associated with them have not been appointed to provide other services except in accordance with the listing regulations and the auditors have confirmed that they have observed IFAC guidelines in this regard. We confirm that all other material principles contained in the Code have been complied with. as determined by the Chief Executive Officer.and terms and conditions of employment. The meetings of the audit committee were held at least once every quarter prior to approval of interim and final results of the Company and as required by the Code. The directors report for this year has been prepared in compliance with the requirements of the Code and fully describes the salient matters required to be disclosed. It comprises three members. The Company has complied with all the corporate and financial reporting requirements of the Code. ARIF HASHWANI Chairman June 29. CEO and executives do not hold any interest in the shares of the Company other than that disclosed in the pattern of shareholding. 20. 18. The Board has formed an audit committee. The statutory auditors of the Company have confirmed that they have been given a satisfactory rating under the quality control review program of the Institute of Chartered Accountants of Pakistan. 19. that they or any of the partners of the firm. The financial statements of the Company were duly endorsed by CEO and CFO before approval of the Board. 16.
We have not carried out any special review of the internal control system to enable us to express an opinion as to whether the Boards statement on internal control covers all controls and the effectiveness of such internal controls. to the extent where such compliance can be objectively verified. 16 A. Further. in all material respects. FERGUSON & CO. we are required to obtain an understanding of the accounting and internal control systems sufficient to plan the audit and develop an effective audit approach. with the best practices contained in the Code of Corporate Governance as applicable to the Company for the year ended March 31. Based on our review. whether the Statement of Compliance reflects the status of the Companys compliance with the provisions of the Code of Corporate Governance and report if it does not. 2010 . We are only required and have ensured compliance of the above requirements to the extent of approval of related party transactions by the Board of Directors and placement of such transactions before the audit committee.F. We have not carried out any procedures to determine whether the related party transactions were undertaken at arm's length prices or not. The responsibility for compliance with the Code of Corporate Governance is that of the Board of Directors of the Company. nothing has come to our attention. 35 (Chapter XI) of The Karachi Stock Exchange (Guarantee) Limited where the Company is listed. Sub-Regulation (xiii a) of Listing Regulation 35 notified by The Karachi Stock Exchange (Guarantee) Limited vide notice KSE/N-269 dated January 19. As part of our audit of the financial statements. which causes us to believe that the Statement of Compliance does not appropriately reflect the Companys compliance. A review is limited primarily to inquiries of the Companys personnel and review of various documents prepared by the Company to comply with the Code. all such transactions are also required to be separately placed before the audit committee. 2009 requires the company to place before the board of directors for their consideration and approval related party transactions distinguishing between transactions carried out on terms equivalent to those that prevail in arm's length transactions and transactions which are not executed at arm's length price recording proper justification for using such alternate pricing mechanism. Chartered Accountants Karachi: June 30. 2010. Our responsibility is to review.REVIEW REPORT TO THE MEMBERS ON THE STATEMENT OF COMPLIANCE WITH THE BEST PRACTICES OF THE 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 Exide Pakistan Limited to comply with the Listing Regulation No.
Jafer Dated: June 30. 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. its cash flows and changes in equity for the year then ended. investments made and the expenditure incurred during the year were in accordance with the objects of the company. was deducted by the company and deposited in the Central Zakat Fund established under Section 7 of that Ordinance. 1984.AUDITORS' REPORT TO THE MEMBERS We have audited the annexed balance sheet of Exide Pakistan Limited as at March 31. as well as. We conducted our audit in accordance with the auditing standards as applicable in Pakistan.3 with which we concur. give the information required by the Companies Ordinance. cash flow statement and statement of changes in equity together with the notes forming part thereof. Chartered Accountants Audit Engagement Partner: Rashid A. 2010 and the related profit and loss account.1. proper books of accounts have been kept by the company as required by the Companies Ordinance. the balance sheet. (c) in our opinion and to the best of our information and according to the explanations given to us. were necessary for the purposes of our audit. for the year then ended and we state that we have obtained all the information and explanations which. evidence supporting the amounts and disclosures in the above said statements. and (d) in our opinion. and are in agreement with the books of account and are further in accordance with accounting policies consistently applied except for the changes stated in note 2. 2010 and of the profit. and iii) the business conducted. 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. An audit includes examining. to the best of our knowledge and belief. on a test basis. ii) the expenditure incurred during the year was for the purpose of the company's business. profit and loss account. (b) in our opinion: i) the balance sheet and profit and loss account together with the notes thereon have been drawn up in conformity with the Companies Ordinance. and. An audit also includes assessing the accounting policies and significant estimates made by management. and prepare and present the above said statements in conformity with the approved accounting standards and the requirements of the Companies Ordinance. We believe that our audit provides a reasonable basis for our opinion and. It is the responsibility of the companys management to establish and maintain a system of internal control. 1984. we report that: (a) in our opinion. Our responsibility is to express an opinion on these statements based on our audit. 1984. evaluating the overall presentation of the above said statements. in the manner so required and respectively give a true and fair view of the state of the company's affairs as at March 31. Zakat deductible at source under the Zakat and Ushr Ordinance. 1980. 1984. after due verification. 2010 Karachi 17 .
904.502 255.442 25.823 248.net Unappropriated profit 3 56.CURRENT LIABILITIES Long-term finance Deferred tax liability .086.057 259 488.499 54.000 23.866 1.899 CONTINGENCIES AND COMMITMENTS 10 2.480 452.131 44.EXIDE PAKISTAN LIMITED BALANCE SHEET AS AT MARCH 31.131 20.000.964 SURPLUS ON REVALUATION OF PROPERTY.000 Issued.724 5 6 44. PLANT AND EQUIPMENT . 2010 Note SHARE CAPITAL & RESERVES Authorised share capital 18. subscribed and paid-up share capital Capital reserve Revenue reserves Shares to be issued Reserve arising on amalgamation .000 (2009: 18.000 NON .036.991 25.070 1.000 180.net CURRENT LIABILITIES Trade and other payables Current portion of long-term finance Accrued mark-up Short-term borrowings 7 5 8 9 608.734 1.710.000) ordinary shares of Rs 10 each 2010 2009 (Rupees 000) 180. 18 .927 900.000.000 14.823 154.011.392 725.net of tax 4 249.037 524.587 The annexed notes 1 to 41 form an integral part of these financial statements.544 15.899 43.991 2.499 259 568.953 20.612 2.
711 224 1. short-term prepayments and other receivables Taxation recoverable Cash and bank balances 14 15 16 17 18 19 52.704 32.908 671.036.457.168 19.550 859.904.587 ARSHAD SHEHZADA Chief Executive ARIF HASHWANI Chairman 19 .355 CURRENT ASSETS Spares Stock-in-trade Trade debts Loans and advances Trade deposits.385 1.098 10.CURRENT ASSETS Property.563 78.206 2.232 2. plant and equipment Long-term investments Long-term loans Long-term deposits 11 12 13 776.268 796.542 224 1.346.Note 2010 2009 (Rupees 000) NON .679 1.857 162.874 18.668 2.107.669 16.214 286.612 2.234 35.076 234.751 690.671 203.567 19.
096 3.385 (5.994 ) 382.797) 118.524 (82.287 197.207 (296.net Profit after taxation Other comprehensive income Total comprehensive income for the year 28 27 22 23 25 26 20 21 2010 2009 (Rupees 000) 6.87 ARSHAD SHEHZADA 20 ARIF HASHWANI Chairman Chief Executive .496 (43.287 5.EXIDE PAKISTAN LIMITED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.135 (5.521) 182.241) 324.206 118.92 21.813) 620.009.630.222 5.235) (59.089 (63.565) 264.274 426.267 ) 197.206 (Rupees 000) Earnings per share (EPS) Appropriations have been reflected in the statement of changes in equity.413.554 (106.189.948 ) 303. The annexed notes 1 to 41 form an integral part of these financial statements. 29 34.572 (237.993 328. 2010 Note Net sales Cost of sales Gross profit Selling and distribution expenses Administration and general expenses Other operating income Other operating charges Operating profit Finance cost Profit before taxation Taxation .928 ) 775.502 (78.885 ) 421.003 (63.100 ) (57.
563 (46.000) (17.299) 2.633 (84.274) 5.000 (40.972) (260.917 (260.592 (170.772 (357.055) 97. 2010 Note 2010 2009 (Rupees 000) CASH FLOWS FROM OPERATING ACTIVITIES Cash generated from / (used in) operations Financial charges paid Taxes paid Increase in long-term deposits Increase in long-term loans Net cash (used in) / generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Payments for capital expenditure Proceeds from sale of operating fixed assets Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Import finances Loan from a director Long term finance .688 (33.173 (165.000) 18.001) 33 (63.125) 15.379) 552.827) Cash and cash equivalents at the end of the year 34 (681.342) (80.659) (144.819) Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the year (421.517) (205) (272.EXIDE PAKISTAN LIMITED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31.173) (1.480 (141.net Import finances Dividends paid Net cash generated from / (used in) operating activities 70.143) (585) 383.101) (144.055) The annexed notes 1 to 41 form an integral part of these financial statements.569) (77.935) (2. ARSHAD SHEHZADA Chief Executive ARIF HASHWANI Chairman 21 .378) (81.915) (129.
net of tax Balance as at March 31.399 725.442 25.442 - - - (2. plant and equipment .057 259 488. ARSHAD SHEHZADA 22 ARIF HASHWANI Chairman Chief Executive .EXIDE PAKISTAN LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31.220) - - 75.220 ) (16. The annexed notes 1 to 41 form an integral part of these financial statements.000 - - (28. 2010 are disclosed in note 39 to these financial statements.287 197.007 618.287 56. subscribed and paid-up share capital Capital reserve Revenue reserves Shares Reserve Unappropriated to be arising on profit issued amalgamation net Total (Rupees 000) Balance at March 31.991 - 25. 2008 Profit after taxation for the year ended March 31. 2008 Final dividend for the year ended March 31.250 ) (80. plant and equipment . 2010 54.823 122.000 ) 118. 2010 Issued.499 259 568.823 5.498 900.206 54.000 - - - (75.823 5. 2009 Transferred from surplus on revaluation of property.442) - - 197. 2009 declared subsequent to year end Transfer to revenue reserves made subsequent to the year ended March 31.498 248.399 154.991 2.net of tax Balance as at March 31.250) - 2. 2010 Transferred from surplus on revaluation of property.991 2.579 - - - - - (16. 2008 declared subsequent to year end Transfer to revenue reserves made subsequent to the year ended March 31. 2009 Final dividend for the year ended March 31. 2009 Issue of share capital Profit after taxation for the year ended March 31.206 118.964 - - 80.499 Appropriations of dividend and transfer between reserves made subsequent to the year ended March 31.442 25.000 ) (28.927 5.057 259 413.392 5.
EXIDE PAKISTAN LIMITED NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2010
1 THE COMPANY AND ITS OPERATIONS The company is a limited liability company and is incorporated in Pakistan. The address of its registered office is A-44, Hill Street, Manghopir Road, S.I.T.E, Karachi, Pakistan. The company is listed on the Karachi and Lahore Stock Exchanges. The company is engaged in the manufacture and sale of batteries, chemicals and acid. 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting polices applied in preparation of these financial statements are set out below. These polices have been consistently applied to all the years presented except as explained in note 2.1.3 to these financial statements. 2.1 Basis of preparation These financial statements have been prepared in accordance with the approved accounting standards as applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board as are notified under the Companies Ordinance, 1984, the requirements of the Companies Ordinance, 1984 and the directives issued by the Securities and Exchange Commission of Pakistan (SECP). Wherever the requirements of the Companies Ordinance, 1984, or directives issued by the SECP differ with the requirements of IFRS, the requirements of the Companies Ordinance 1984 or the directives issued by SECP prevail. 2.1.2 Accounting convention These financial statements have been prepared under the historical cost convention, except that certain properties are stated at revalued amounts and certain staff retirement benefits are carried at present value. 2.1.3 Changes in accounting polices: (i) Arising from standards, interpretations and amendments to published approved accounting standards that are effective in the current year International Accounting Standard 1 (IAS 1) Revised, Presentation of Financial Statements (effective from January 1, 2009). The revised standard prohibits the presentation of items of income and expenses (that is, non-owner changes in equity) in the statement of changes in equity, requiring non-owner changes in equity to be presented separately from owner changes in equity. All non-owner changes in equity are required to be shown in a performance statement, but entities can choose whether to present one performance statement (the statement of comprehensive income) or two statements (the income statement and statement of comprehensive income). Where entities restate or reclassify comparative information, they are required to present a restated balance sheet as at the beginning of the comparative period in addition to the current requirement to present balance sheets at the end of the current period and comparative period. The Company has adopted IAS 1 (Revised) with effect from April 1, 2009 and has chosen to present all non-owner changes in equity in one performance statement - statement of comprehensive income (profit and loss account). The Company does not have any items of income and expenses representing other comprehensive income. Accordingly, the adoption of the above standard does not have any significant impact on the presentation of the Company's financial statements and does not require the restatement or reclassification of comparative information. As the change in accounting policy only impacts presentation aspects, there is no impact on earnings per share. IFRS 7, Financial Instruments: Disclosures. The SECP vide S.R.O 411 (I) / 2008 dated April
2.1.1 Statement of compliance
28, 2008 notified the adoption of IFRS 7 Financial Instruments: Disclosures. IFRS 7 was mandatory for the Companys accounting period beginning on or after the date of notification i.e. April 28 2008. IFRS 7 has superseded IAS 30 Disclosure for Banks and Similiar Financial Institution and the disclosure requirements of IAS 32. Financial Instruments: Presentation. IFRS 7 requires disclousure of the significance of financial instruments for an entitys financial position and performance and has also introduced qualitative and quantitative information about exposure to risk arising from financial instruments, including specified minimum disclosures about credit risk, liquidity risk and market risk. The qualitative disclosures describe managements objectives, policies and processes for managing those risk. The quantitative disclosures provide information about the extent to which the entity is exposed to risk, based on information provided internally to the entitys key management personnel. The change in accounting policy has only resulted in additional disclosures which have been set out in these financial statements. There is no impact on earnings per share. (ii) Voluntary change in accounting policy During the year management has changed the company's accounting policy in respect of the determination of cost of raw and packing material including components and spares. The raw material and spares which were previously valued on the basis of 'first-in-first-out' are now valued on 'weighted average' cost basis. Management is of the view that this policy provides more relevant information because it deals more accurately with raw and packing material including components and spares. The change in accounting policy has not resulted in any material changes in the opening balances of stock-in-trade and spares of prior years. Accordingly, the presentation of a third balance sheet as at the beginning of the comparative period is not required. The effect of this change in accounting policy on the financial statments in the current year is summarised below Rs in 000 (Increase) in cost of sales (2,372) Decrease in tax charge 830 (Decrease) in profit (1,542) (Decrease) in stock-in-trade (Decrease) in spares Increase in tax recoverable (Decrease) in equity (1,873) (499) 830 (1,542)
2.1.4 Other standards, interpretations and amendments to published approved accounting standards that are effective in the current year IAS 19 (Amendment), Employee benefits (effective from January 1, 2009). - The amendment clarifies that a plan amendment that results in a change in the extent to which benefit promises are affected by future salary increases is a curtailment, while an amendment that changes benefits attributable to past service gives rise to a negative past service cost if it results in a reduction in the present value of the defined benefit obligation. - The definition of return on plan assets has been amended to state that plan administration costs are deducted in the calculation of return on plan assets only to the extent that such costs have been excluded from measurement of the defined benefit obligation. - The distinction between short-term and long-term employee benefits will be based on whether benefits are due to be settled within or after 12 months of employee service being rendered. - IAS 37, Provisions, Contingent Liabilities and Contingent Assets', requires contingent liabilities to be disclosed, not recognised. IAS 19 has been amended to be consistent.
This amendment does not have any significant impact on the company's financial statements.
IAS 23 (Amendment), 'Borrowing Costs'. This standard requires an entity to capitalise borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset (one that takes a substantial period of time to get ready for use or sale) as part of the cost of that asset. The option of immediately expensing those borrowing costs has been removed. Further, the definition of borrowing cost has been amended so that interest expense is calculated using the effective interest method defined in IAS 39 'Financial Instruments: Recognition and Measurement'. The company's accounting policy on borrowing costs, as disclosed in note 2.19, complies with the above mentioned requirement to capitalise borrowing costs and hence this change has not impacted the company's accounting policy. The management has assessed that the change in interest calculation method would not have a material impact on the company's financial statements. IAS 36 (Amendment), Impairment of Assets (effective from January 1, 2009). As per the new requirements, where fair value less costs to sell is calculated on the basis of discounted cash flows, disclosures equivalent to those for value-in-use calculation should be made. Adoption of the amendment does not have any effect on the company's financial statements. IAS 38 (Amendment), Intangible Assets (effective from January 1, 2009). The amended standard states that a prepayment may only be recognised in the event that payment has been made in advance of obtaining right of access to goods or receipt of services. Adoption of the amendment does not have any effect on the company's financial statements. IFRS 2 (Amendment), Share-based payment (effective from January 1, 2009). The amended standard deals with vesting conditions and cancellations. It clarifies that vesting conditions are service conditions and performance conditions only. Other features of a share-based payment are not vesting conditions. These features would need to be included in the grant date fair value for transactions with employees and others providing similar services; they would not impact the number of awards expected to vest or valuation thereof subsequent to grant date. All cancellations, whether by the entity or by other parties, should receive the same accounting treatment. Adoption of the amendment does not have a significant effect on the company's financial statements. IFRS 8, 'Operating Segments' (effective from January 1, 2009). IFRS 8 replaces IAS 14, 'Segment reporting'. The new standard requires a 'management approach', under which segment information is presented on the same basis as that used for internal reporting purposes. Under IFRS 8, operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The Board of Directors, through the Chief Executive Officer has been identified as the chief operating decision-maker. An operating segment is a component of the company that engages in business activities from which it may earn revenues and incur expenses. The company has determined operating segments on the basis of business activities i.e. Batteries and Chemicals. The adoption of IFRS 8, 'Operating Segments' has not impacted the number of reportable segments as previously reported. There is no impact on earnings per share. There are other standards, interpretations and amendments to existing standards that were mandatory for accounting periods beginning on or after January 1, 2009 but were considered not to be relevant or did not have any significant effect on the company's operations and are, therefore, not detailed in these financial statements. 2.1.5 Standards, interpretations and amendments to published approved accounting standards that are not yet effective The following standards, amendments and interpretations to existing standards have been published and are mandatory for the companys accounting periods beginning on or after January 1, 2010. IFRS 2 (Amendments), Group Cash-settled and Share-based Payment Transactions'. In addition to incorporating IFRIC 8, Scope of IFRS 2, and IFRIC 11, IFRS 2 Group and Treasury Share Transactions, the amendments expand on the guidance in IFRIC 11 to address the classification of group arrangements that were not covered by that interpretation. The new guidance is not expected to have a material impact on the company's financial statements.
3 Staff retirement benefits The company operates: (a) approved funded gratuity plans covering all employees.2 Taxation Current Provision for current taxation is based on taxable income at the current rates of taxation after taking into account tax credits. rebates and exemptions available. There are certain other new standards.6 Critical accounting estimates and judgments The preparation of financial statements in conformity with the approved accounting standards as applicable in Pakistan requires the use of certain critical accounting estimates.IFRIC 17. Deferred Deferred taxation is recognised using the balance sheet liability method on all major temporary differences arising between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The areas involving a higher degree of judgment or complexity. Distribution of non-cash assets to owners (effective on or after July 1. . A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Provision is made annually to cover the obligations under the scheme based on management estimate. Annual contributions are made to the plans based on actuarial recommendations. not disclosed in these financial statements.1. based on the tax rates that have been enacted or substantially enacted by the balance sheet date. 'Income Taxes'. whichever is higher. or areas where assumptions and estimates are significant to the financial statements are disclosed in note 38 to these financial statements. relating to prior years which arise from assessments framed / finalised during the current year. 2009). It also requires the management to exercise its judgment in the process of applying the company's accounting policies. The company also recognises deferred tax asset / liability on deficit / surplus on revaluation of property. 2. 2. 2010 but are considered not to be relevant or to have any significant effect on the company's operations and are. Actuarial gains and losses in excess of 10% of the fair value of plan assets or 10% of the present value of defined benefit obligations. are amortised over the average expected future service lives of employees. The charge for current tax also includes adjustments where necessary. 2. The actuarial valuations are carried out using the Projected Unit Credit Method. approved contributory provident funds for all employees. Deferred tax liabilities are recognised for all taxable temporary differences. therefore. 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. This interpretation provides guidance on accounting for arrangements whereby an entity distributes non-cash assets to shareholders either as a distribution of reserves or as dividends. (b) (c) 26 Staff retirement benefits are payable to staff on completion of the prescribed qualifying period of service under these funds / scheme. plant and equipment which is adjusted against the related deficit / surplus in accordance with the requirements of International Accounting Standard 12. and an unfunded pension scheme for certain management staff who had opted to remain in the pension scheme at the time of winding up of the State Life pension scheme. IFRS 5 has also been amended to require that assets are classified as held for distribution only when they are available for distribution in their present condition and the distribution is highly probable. if any. amendments and interpretations that are mandatory for accounting periods beginning on or after January 1.
Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. 2. (if any). 2. Borrowing costs incurred for the construction of any qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use.6 Warranty claims The company provides after sales warranty for its products for a specified period. All expenditures connected to the specific assets incurred during installation and construction period are carried under capital work-inprogress.7 Trade and other payables Short-term liabilities for trade and other payables are recognised initially at fair value and subsequently carried at amortised cost. 2. plant and equipment is charged using the straight line method in accordance with the rates specified in note 11. as appropriate. Subsequent costs are included in the asset's carrying amounts or recognised as a separate asset. Accrual is made in the financial statements for this warranty based on previous trends and is determined using the management's best estimate. Finance charges under lease arrangements are allocated to periods during the lease term so as to produce a constant periodic rate of financial cost on the remaining balance of principal liability for each period. 2.8 Borrowings Borrowings are recognised initially at fair value.2. it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the outflow can be made. any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the income statement over the period of the borrowings using the effective interest method. These are transferred to specific assets as and when assets are available for use. Borrowings are subsequently stated at amortised cost.10 Property. Capital work-in-progress are stated at cost less accumulated impairment losses (if any). Depreciation / amortisation on all property. plant and equipment Leasehold land and buildings on leasehold land are stated at revalued amounts less accumulated depreciation and accumulated impairment losses (if any).5 Provisions Provisions are recognised when the company has a present legal or constructive obligation as a result of past events. Plant and machinery. 2.9 Liabilities against assets subject to finance lease Liabilities against assets subject to finance lease are accounted for at the net present value of minimum payments under the lease arrangements. only when it is probable that future benefits associated with the item will flow to the company and the cost of the item can be measured reliably. furniture and fixtures.1 to these financial statements and after taking into account residual values. All repairs and maintenance are charged to the profit and loss account as and when incurred. office equipment and appliances and vehicles are stated at cost less accumulated depreciation and accumulated impairment losses (if any). 2.4 Employees' compensated absences The company accounts for the liability in respect of employees' compensated absences in the year in which these are earned. Other borrowing costs are expensed in the profit and loss account in the period in which they arise. The revalued amount of leasehold land 27 . net of transaction costs incurred. Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date.
Any surplus arising on revaluation of property. They are included in current assets.12. A significant or prolonged decline in the fair value of a financial asset below its amortised cost is also an objective evidence of impairment. 2. Loans and receivables are classified as trade debts. or realise the assets and settle the liabilities simultaneously. if any.3 Impairment The company assesses at each balance sheet date whether there is objective evidence that a financial asset is impaired. plant and equipment are charged to the profit and loss account currently. To the extent of the incremental depreciation charged on the revalued assets. long-term deposits. Revaluation is carried out with sufficient regularity to ensure that the carrying amount of assets does not differ materially from the fair value.2 Subsequent measurement Subsequent to initial recognition.11 Investment in subsidiary company Investment in subsidiary company is stated at cost less impairment. except that the related surplus on revaluation of property.12. Depreciation on additions is charged from the month in which the assets become available for use. financial assets classified as loans and receivables are carried at amortised cost. The residual values. 2.1.12. if any. while on disposals depreciation is charged upto the month of deletion. at each balance sheet date. plant and equipment is credited to the surplus on revaluation account. Gains / losses on disposal of property. for any diminution in its value. 2. all financial assets of the company are classified in the following category. which are classified as non-current assets. if appropriate. Currently. Provision for impairment in the value of financial assets.1 Financial assets The management determines the appropriate classification of its financial assets in accordance with the requirements of International Accounting Standard 39 (IAS 39). Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. trade deposits and other receivables in the balance sheet.4 Offsetting of financial assets and liabilities Financial assets and financial liabilities are offset and the net amount is reported in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis.12. loans and advances. 28 . 2. plant and equipment (net of deferred taxation) is transferred directly to unappropriated profit.1.12. 2.1. except for maturities greater than twelve months after the balance sheet date. plant and equipment (net of deferred taxation) is transferred directly to unappropriated profit.1.is amortised equally over the lease period. useful lives and depreciation methods are reviewed and adjusted. is taken to the profit and loss account.1 Initial recognition and measurement Financial assets are recognised at the time the company becomes a party to the contractual provisions of the instrument.12 Financial Instruments 2. "Financial Instruments: Recognition and Measurement" at the time of purchase of financial assets and reevaluates this classification on a regular basis. 2. the related surplus on revaluation of property.
e. Payments made under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease.16 Operating leases Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. In accordance with the revised policy spares are valued at lower of cost determined using the weighted average method and the net realisable value. Provision is made in the financial statements for obsolete and slow moving spares based on management's best estimate regarding their future usability. 2. 2. 2.12. Items in transit are valued at cost comprising invoice values plus other charges incurred thereon.13 Spares As more fully explanied note 2.3 (ii) to these financial statments. 2.1.2 Financial liabilites All financial liabilities are recognised at the time when the company becomes a party to the contractual provisions of the instrument. during the year the company has changed its accounting policy in respect of valuing spares. In accordance with the revised policy raw and packing material and components. Balances considered bad and irrecoverable are written off. represents direct cost of materials. the 29 . calculated on weighted average basis. If such indication exists.3 (ii) to these financial statements. Any gain or loss on derecognition of a financial liability is taken to the profit and loss account.12. work-in-process and finished goods are valued at lower of cost. 2. when the obligation specified in the contract is discharged. cancelled or expires.15 Trade debts and other receivables Trade debts and other receivables are carried at original invoice value less an estimate made for doubtful receivables which is determined based on management review of outstanding amounts and previous repayment pattern. Any gain or loss on derecognition of financial assets is taken to the profit and loss account. 2. during the year the company has changed its accounting policy in respect of valuing stock-in-trade. direct wages and an appropriate portion of production overheads and the related duties where applicable. Provision is made in the financial statements for obsolete and slow moving inventory based on management's best estimate regarding their future usability.5 Derecognition Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the company has transferred substantially all risks and rewards of ownership.1.14 Stock-in-trade As more fully explained in note 2. work-in-process and finished goods.17 Impairment of non-financial assets The carrying amount of the company's assets are reviewed at each balance sheet date to determine whether there is any indication of impairment loss. Financial liabilities are derecognised at the time when they are extinguished i. Cost in relation to components. Items in transit are valued at cost comprising invoice value plus other charges incurred thereon. and net realisable value.1. Net realisable value signifies the estimated selling price in the ordinary course of business less the estimated costs necessary to be incurred to make the sale. Net realisable value signifies the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs necessary to be incurred to make the sale.2.
capital expenditures and other balances which cannot be allocated to a particular segment on a reasonable basis are reported as unallocated. The company accounts for segment reporting using the business segments as the primary reporting format based on the company's practice of reporting to the management on the same basis. capital expenditures and other balances that are directly attributable to segments have been assigned to them while the carrying amount of certain assets used jointly by two or more segments have been allocated to segments on a reasonable basis. if any.19 Revenue recognition .Sales are recorded on despatch of goods to customers. 2.24 Basic and diluted earnings per share The company presents basic and diluted earnings per share (EPS) for its shareholders. 2.18 Cash and cash equivalents Cash and cash equivalents are carried in the balance sheet at cost.21 Segment reporting A business segment is a group of assets and operations engaged in providing products or services that are subject to risks and returns that are different from those of other business segments.22 Functional and presentation currency Items included in the financial statements are measured using the currency of the primary economic environment in which the company operates. 2. liabilities. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the company by the weighted average number of ordinary shares outstanding during the period / year. Monetary assets and liabilities in foreign currencies are translated into Rupees at the rates of exchange approximating those at the balance sheet date. Cash and cash equivalents include cash and cheques in hand.23 Foreign currency transactions Transactions in foreign currencies are translated to Pakistani Rupees at the foreign exchange rates prevailing on the date of transaction. . information relating to geographical segment is not considered relevant.Income on deposits and other operating income are recognised on accrual basis. The resulting impairment loss is taken to the profit and loss account except for impairment loss on revalued assets. The recoverable amount is higher of an assets fair value less cost to sell and value in use. liabilities. 2. Exchange gains / losses resulting from the settlement of transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are taken to the profit and loss account. 2. which is adjusted against related revaluation surplus to the extent that the impairment loss does not exceed the surplus on revaluation of that asset. 2. 30 . Assets. Those assets. if any. An impairment loss is recognised for the amount by whcih the assets carrying amount exceeds its recoverable amount. balances with banks in current and deposit accounts and short-term finances with original maturities of three months or less. As the operations of the company are predominantly carried out in Pakistan. which is the companys functional and presentation currency.asset's recoverable amount is estimated in order to determine the extent of impairment loss. 2. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares.20 Proposed dividends and transfers between reserves Dividends declared and transfers between reserves made subsequent to the balance sheet date are considered as non-adjusting events and are recognised in the financial statements in the period in which such dividends are declared / transfers are made. The financial statements are presented in Pakistani Rupees.
3 ISSUED.894 5.592 209 50.025. PLANT AND EQUIPMENT.595 5. Haider Mehdi Mr.025.399) (311) 261.595 244.167 249.1 Shares held by the related parties of the company 3.894 5.598 464 500 159 10 789.474 (307) 6.167 5.474 255.592 209 50.522 909.528 1.248 20. S.181 909.revaluation as at April 1 .000 31 .474 6.net of deferred tax Related deferred tax liability Surplus on revaluation of operating fixed assets as at March 31 Less: related deferred tax liability on: .057 3.737 Ordinary shares of Rs 10 each issued as fully paid in cash Ordinary shares of Rs 10 each issued for consideration other than cash Ordinary shares of Rs 10 each issued as fully paid bonus shares Ordinary shares of Rs 10 each issued to minority shareholders of Automotive Battery Company Limited 2010 2009 (Rupees 000) 3.474 267.785 (311) 6. Altaf Hashwani Mr.502 6.027.686 2.263.net of tax This represents surplus arising on revaluation of leasehold land and buildings.248 20.incremental depreciation charged during the year transferred to the profit and loss account 261.256 54.I. Hussain Hashwani Mr.Surplus relating to incremental depreciation charged during the year . Sana Hashwani Mr. SUBSCRIBED AND PAID-UP SHARE CAPITAL 2010 2009 Number of shares 359.126.528 1. S.649.184 (5. net of deferred tax thereon.442 56. Syed Muhammad Faiq Ms.669 (5.256 2.498) (307) 255. 2010 2009 (Rupees 000) Surplus on revaluation of operating fixed assets as at April 1 Transferred to unappropriated profits: .904 359. Arif Hashwani Mr.499 3. Arshad Shahzada National Bank of Pakistan (trustee) 4 2010 2009 Number of shares 2.405. Ahmed Mr.1.027.587 467 115 500 159 723.1 Name of the shareholder Mr.020 SURPLUS ON REVALUATION OF PROPERTY.
053 25.756 7.657 10.956 9.989 6.795 55. 2009 Note 2010 (Rupees 000) 7.000 (20.214 6.872 11.518 32.250) 44.586 million (2009: Rs 2.469 10. Less: current maturity 6 DEFERRED TAX LIABILITY .953 7.128 1.544 7.000 2009 HSBC Bank Middle East Ltd.590 463 27.048 635 16.564) 23.2 Workers' Profits Participation Fund Balance at April 1 Allocation for the year Interest on funds utilised in the company's business 32 26 27 Less: Amounts paid during the year Balance at March 31 10.458 1.170 7.1 7. plant and equipment (Rupees 000) 61.164 338.098 46.474 4 Deferred tax assets arising on deductible temporary differences: In respect of certain provisions (23.538 2.240 1.298 5.923 569 7.787 17.170 15.840 million) in respect of employees compensated absences.000) 20.5 LONG-TERM FINANCE .287 .4 80.2 7.853 452.NET Note Deferred tax liability arising on taxable temporary differences: Due to accelerated tax depreciation Arising on surplus on revaluation of property.743 13 17.883 1.1 This includes an amount of Rs 2.287 9.328 29.167 36.244 20.303 26.579 8.3 7.101 52.287 16.733 4.899 2009 (Rupees 000) 59.131 Note 7 TRADE AND OTHER PAYABLES Creditors Bills payable Accrued liabilities Advances from customers Workers' Profits Participation Fund Workers' Welfare Fund Payable to gratuity funds Provision for battery warranty claims Unclaimed dividends Payable to provident fund Royalty payable Sales tax payable Others 2010 (19.691 52.288 197.282 608.from banking company Name of the bank Installments Repayment payable period Semi-annually 2007-2009 2010 2009 (Rupees 000) 2010 40.
328 1.650 1.759 479 1.321 (100.1 The facilities for short-term running finance available from various banks amounted to Rs 1. 2008. The facilities carry mark-up at rates ranging from 12.244 2.037 9.765 376 479 (376 ) 479 2. The loan carries mark-up at 5% per annum (2009: 6% per annum). 2009. The arrangements are secured by a joint hypothecation charge over the company's stock-in-trade and trade debts. However the resulting amalgamation did not affect the staff retirement funds operated by both the companies as a result of which separate funds are operating for the employees of both companies.1 968.756 74.27% (2009: 10.163 4.415) 20.7.765 994 2.065 million (2009: Rs 878 million).725 14.298 109.086.210 1.Import finance .000 524.244 7.related party 9 SHORT-TERM BORROWINGS From banking companies .30% to 15.957 (66.unsecured Loan from a director 2010 2009 (Rupees 000) 11.1Automotive Battery Company Limited (ABCL) merged with Exide Pakistan Limited (Exide) in accordance with the scheme of amalgamation approved by the Honorable High Court of Sindh on March 11.4 Provision for battery warranty claims Balance at April 1 Charge for the year Claims paid Balance at March 31 8 ACCRUED MARK-UP Mark-up accrued on: .128 12.084 4.026 2.734 - 9.Short term running finance .92% to 17.491) 29.734 9.000 1. The said amalgamation was effective from March 31.149 2.569 2.244 (2.3 Payable to gratuity fund ----------2010---------EXIDE ABCL Total ----------2009---------EXIDE ABCL Total (Rupees 000) Balance at April 1 Charge for the year Contributions paid Balance at March 31 1.650) 1.315 1.Loan from a Director .090 1. 9.Term finance .2 The loan from the director was obtained to meet short-term working capital requirements.3. Note 7.2 100.866 30.298 22 20.Long-term finance .545 15.secured Short-term running finance Import finance From related party .50%) and are repayable latest by March 2011.178 18.688 494.070 7. 33 .026) 2.765 (1.
384 1.798) 630.313 45.094 342.017.608 1. which upheld the order of the Tribunal vide its judgment dated 27 January 2006.571 173. the Company expects the final outcome to be in its favour and accordingly provision has not been made in these financial statements in respect of this amount.20 10 . The tax benefit claimed by the company amounted to approximately Rs.542 630.870) 3.291 (3.559) 44.085 709.679) 233. 2010 Cost / revalued amount Accumulated depreciation / amortisation Net book value 342.264) 28.924) 5.20 10 .411 (444.851 152.140 671. COMMITMENTS 10.872 (27.1 Automotive Battery Company Limited (which has been merged with Exide Pakistan Limited) had claimed carry over of tax holiday losses beyond the tax holiday period for set off against the profits of taxable period.3 Commitments in respect of : (Rupees 000) Capital expenditure contracted for but not incurred Letters of credit Letter of guarantee 11 PROPERTY.379) 45.318) 2.162) 344.530 (322.489 (365. Based on the legal advice from the Company lawyers and in view of the initial success upto High Court.20 .805 10.516 1.644 (12.349 (9.2 Commitments for rentals under leases in respect of motor vehicles amounted to Rs NIL (2009: Rs 0. 24 million.608 (7.1 The following is a statement of operating fixed assets: For the year ended March 31.105) 4.761 12.20 10 . the Tribunal referred the question of law to the Honorable Sindh High Court. The Tax Department has filed a further appeal before the Supreme Court of Pakistan against the judgment of the High Court which is currently pending.180) 44.924) 5.711 (Rupees 000) At April 1.890) 1.5 739.666) (62.065) 322. 2009 Cost / revalued amount Accumulated depreciation / amortisation Net book value Additions Disposals: Cost Depreciation Depreciation / amortisation charge for the year Closing net book value At March 31.10 CONTINGENCIES AND COMMITMENTS CONTINGENCIES 10.777) 739.183. PLANT AND EQUIPMENT Operating fixed assets Capital work-in-progress 11.135 55.571 41.915) 23.970 1.200 (26.022 55.022 (7.483) 344.235) 4.666 31.909) 315.079 (4.295 556.127 (8. 2010 2009 10.844) 315.317) 739.274 (3.589 - 11.327 7.258 (2.1 11.761 (1.166 1.966 (6.200 (20.715 16.369 (386.386 (6.630 (23.448 776.094 37.10 10 .959 5.151 million).666) (8.085 (42.741 47.327 (428) 2. This was adjudicated by the Income Tax Appellate Tribunal in the Companys favour and on a reference application for assessment years 1988-89.607) 28. 2010 Leasehold land Buildings on leasehold land Plant and machinery Furniture and fixtures Office equipment and appliances Vehicles Total 882 147.980 10.258 (2.291 56.1989-90 and 1990-91 by the Income Tax Department.094 34 Depreciation / amortisation rate % per annum 1-2 5 .
200 (20.369 (386. on the basis of present market values.258 (314 ) (7. 2006.468 83.017.715 10 . 2009 Leasehold land Buildings on leasehold land Plant and machinery Furniture and fixtures Office equipment and appliances Vehicles Total (Rupees 000) At April 1. 2008 Cost / revalued amount Accumulated depreciation / amortisation Net book value Additions Disposals: Cost Depreciation Depreciation / amortisation charge for the year Closing net book value At March 31.046) 45.274 (3.019) 589.870) 3.10 462.200 (13.168 (318.996) 630.851 10 . 2009 Cost / revalued amount Accumulated depreciation / amortisation Net book value Depreciation / amortisation rate % per annum 342.20 9.798) 630.516 10 .541 264 68 1.344) 3.639 841 398 849 63 4.679) 233.630 (23.890) 1.611 (6.572 ) 2.600 million (2009: 261.333) 47.477 ) 23.915 15.502 (269.135 342.278 1.696 ) 15.20 34. or to related parties during the year are as follows: Cost Accumulated depreciation Vehicles Honda City Toyota Corrolla Honda City Suzuki Mehran Suzuki Liana Honda CD 70 2010 2009 884 1.851 556.970 55.715 47. 2010.915 ) 23.674 745 Book value Sale proceeds (Rupees 000) 634 137 588 146 566 62 2.474 million) remains undepreciated as at March 31.591 (2.530 (322.502 253 252 283 1 2.738 (3. Had there been no revaluation.149 113.3 Particulars of operating fixed assets disposed of.970 5 .386 (6.2 Leasehold land and buildings on leasehold land of the company were last revalued in March 2006 by M/s Shahani & Co.349 (9.161 14.893 million which had been incorporated in the books of the company on March 31.571 1.566 11.149 (3. independent valuation consultants. The revaluation resulted in a net surplus of Rs 249.384 5.065) 322.095 (6.133 481 250 1.571 11.759 (3.379) 45.For the year ended March 31.075 15.558) 3.384 10 .889 (598) 571 (27) (1.250 513 (388) 388 (379) 1.217 (341) (71. an amount of Rs 255.611 (18.736) 322.097) 2.899) 1.000.028 (53. Out of the revaluation surplus resulting from all the revaluations carried out to date.. having net book value exceeding Rs 50.329) 328.693 1. the book value of leasehold land and buildings on leasehold land would have been as follows: 2010 2009 (Rupees 000) Leasehold land Buildings on leasehold land 81.20 907.135 1-2 53.837 94.014) 233.516 10.998 1.812 million over the written down values of Rs 159.445 Mode of disposals/ settlement Negotiation Insurance Claim Negotiation Insurance Claim Insurance Claim Insurance Claim Particulars of buyers Location Zahid Waheed Rao New Jubilee Insurance Abdul Majid(employee) New Jubilee Insurance New Jubilee Insurance New Jubilee Insurance Lahore Karachi Lahore Karachi Karachi Karachi 35 .639 420 360 143 63 2.20 5.871 (6.665) 192.
382 (713) 1. 13 LONG-TERM LOANS (considered good .unsecured) Due from employees Less: receivable within one year 36 13.380 (2009: 22.4 The depreciation / amortisation charge for the year has been allocated as follows: Note Cost of sales Selling and distribution expenses Administration and general expenses 21 22 23 2010 59.1 Chloride Pakistan (Private) Limited (CPL) has not yet commenced its production.Unquoted 22.1 17 3.484) 1.at cost Subsidiary company .5 Capital work-in-progress Building Plant and machinery Advances to suppliers / contractors Office equipment %age holding 2009 (Rupees 000) 68.000/-) that is receivable from EXIDE Pakistan Limited.247 6. based on the financial statements for the year ended March 31.000/.883 62. The summarised financial information of CPL.448 2010 506 34. 2010 Rs (0.280 37.874 2.358 (1. Rs.921 25.239) million) 100 224 224 12.1. 67.967 232 41.380) ordinary shares of Rs 10 each held in Chloride Pakistan Limited.160 71.435 5.(2009.1 The above amount includes Rs.140 2009 (Rupees 000) 12 LONG-TERM INVESTMENTS Investments in related party .669 .441 2. 2010 is as follows: Note 2010 2009 (Rupees 000) Total assets Total liabilities Revenue Loss after tax 38 316 39 70 309 43 12.11. 36. a private limited company incorporated in Pakistan (Net assets value as at March 31. 2009: Rs (0.996 2009 (Rupees 000) 5.278) million.395 1.777 2010 11.256 1.638 1.
385 34.265 (1. 2010 14 SPARES Spares (including in transit of Rs 4.637 (25.1 Raw materials and components amounting to Rs 14.999 million (2009: Rs 296.unsecured Considered .348) 859.857 2009 (Rupees 000) 54.127.546 1.1 These represent interest free loans given to employees for purchase of motorcycles and for other general purposes in accordance with the company's policies.550 15.733) 24.464 million) Less: provision for slow moving and obsolete spares 15 STOCK-IN-TRADE Raw and packing materials and components including goods-in-transit of Rs.205 (2.231 862.13.380 16.497 million (2009: Rs 11.222 million (2009: Rs 1.736 13.668 16.273 37 .532 227. 452. The aging analysis of these trade debts is as follows: Note Upto 1 month 1 to 6 months Over 6 months 2010 2009 (Rupees 000) 33.899 49.532 22.229 (260) 25.457.969 3.969 296 26.200) 32.098 162.295 151.838 228.086 (1.good .575 18. Rs 82. These loans are recovered through deduction from salaries over varying periods upto a maximum period of five years.969 16.273 million) of the gross trade debts are over due but not impaired.442 105. lids and vent plugs for the company.638 18. 2010.826 (4.679 115.551 million) Work-in-process Finished goods Less: Provision for slow moving and obsolete stock-in-trade 1.532) 203.630 (24.750 (2.380 million (2009: Rs 49.1 2010 2009 (Rupees 000) 203.doubtful Less: Provision for impairment in trade debts 16.208 30.098 24.1 Provision for impairment Balance at April 1 Provision made during the year Less: amount reversed during the year Balance at March 31 25.260 26. Note 16 TRADE DEBTS . who under an arrangement with the company.668 25. manufacture plastic containers.2 As at March 31.701) 52.597 82.671 595.969 188.461.061 million) were held by Pak Polymer (Private) Limited and Polymers International.155) 1.969) 162. These balances relate to various customers for whom there is no recent history of default.
359 19.Suppliers 13 1.563 7.Note 2010 2009 (Rupees 000) 17 LOANS AND ADVANCES .019 166 234. 2010 2009 (Rupees 000) 18 TRADE DEPOSITS.current accounts Cheques in hand Cash in hand 252.426 2. SHORT-TERM PREPAYMENTS AND OTHER RECEIVABLES Advance to clearing agent Margin deposits Earnest money Short-term prepayments Container deposits Others 126 1.400 4.553 19.679 38 .1 Advances to employees are given to meet business expenses and are settled as and when expenses are incurred.current portion of long term loans to employees .employees .053 4.567 713 300 470 685 2.Considered good Loans due from .Employees .698 803 1.234 19 CASH AND BANK BALANCES With banks .824 10.498 2.others Advances to .206 194.499 33.450 4.498 6.494 40.484 259 8.626 81 286.933 2.168 17.1 17.
638 2.475 3.241 1.178 60.122 1.502 2.713 123.428 1.581 5.315.885 638 4.328 4.746.518 282.788 2.567 1.947.449 9.036.583 231.092 591.370 4.109 5.509.3 Segment liabilities 20.587 250.586 638 20.6 Depreciation expense 20.413.524.236 54.966 62.328 103.756 72.777 6. 39 .787 335.274 43.189.650 5.750 55.904 62.875 67.5 Capital expenditure 20.353 2.273 54.813 620.047 6.235 59.577.905 5. assets.261.431.350 2.147 20.056 805.901 1.267 2.446 15.759 71.4 Unallocated liabilities 20.385 5.517 1.713.964 1.905 18.055.677 5.009.327 1.024 712.928 2.925 398.7 245.925 398.046 461.135 5.996 22 23 20.485 178.993 63.207 296.994 382.626 290.689 173.7 21 7.630.299 538.494 938.483.20 OPERATING RESULTS Note Batteries 2010 2009 Chemicals 2010 2009 Company 2010 Company 2009 (Rupees 000) Sales Sales tax Excise Duty Commissions to distributor Discounts to distributors and customers Net sales Cost of sales Gross profit Selling and distribution expenses Administration and general expenses Other operating income Unallocated other operating income Unallocated other operating charges Operating profit 20.354 306.730 6.623.015.904.7 and 26 366.611 167.637 4.7 25 20.968.472 65.675 4. other operating income and other operating charges of the company cannot be allocated to a specific segment.538 38.053 241.168.338.572 237.135 55.222 1.054.019 4.618 100 77.999 4.524 1.710 432.932 97.865 1.063 5.518 2.636 5.612 424.320 290.834 63. these amounts have been classified as unallocated.415 41.787 335.490 5.7 Certain liabilities.100 57.235. Accordingly.623 113.1 Segment assets 20.884 4.429.307 6.277 7.2 Unallocated assets 20.411.738 866.610 439.565 264.754.463 59.428 1.989 5.259 395.094 1.928 775.721 28.
512 107.679 (228.783 ) 4.654 5.963 16.318 12.646 173.454 4.181 - Salaries.295 5.912 4.266) (107.755 4.581) (573.857 9.412 (854 ) 428.899 million) in respect of staff retirement benefits.note 11. power and water Insurance Repairs and maintenance Depreciation / amortisation .257) 112.476 13.578 4.869.577.111 69.125.004 8.148 19.127.546) 5.035.077 63.936 162.217 440.294.273 19.024 7.315.384 166.996.610 45.413.231 13.470 56.964 (1.756.322 127.285 144.813 Closing stock 5.231) 5.933 1.635 56.335.684.044 (115.060 32.904 181.265 3.417 - Closing stock of finished goods 5.609.701 40.833 1.184 (5.898 153.290 4.092 34.660) 5.638 37.677 13.247 494. wages and benefits include Rs 3.009.909 4.721 595.942 1.474 (105. wages and benefits Spares consumed Rent.716 7. rates and taxes Fuel.814 ) 432.4 General expenses Opening stock of work-in-process Closing stock of work-in-process Cost of goods manufactured Opening stock of finished goods Finished goods purchased 144.644 4.913 201.417 ) 5.838) 4.024 4.928 676.388 153.868 854 (782) 162.814 13.442) 22.214.171.1243 107.395 33.475 (21.519.825 (227.114.1 Salaries.562 383.992.405 41.422 128.126 158.280) 178.401.263 134.580 (595.398 5.448 4.509 (100.703 82.669 5.328 161.390.115 4.631 (151.589 115.535 (7.105 (1.783 5.523.463 39.449 4.588 78.030 4.193 21.937 9.111.875 125 19.735 59.654 184.512 ) 361.868.951.628 150.496 151.825 4.861 million (2009: Rs 4.825 ) 4.397.092 21.219 (150. 40 .941 28.910 33.182 117 17.679) 4.721 68.934 (16.295) 4.21 COST OF SALES Batteries 2010 2009 Chemicals 2010 2009 Company 2010 Company 2009 (Rupees 000) Raw and packing materials consumed Opening stock Purchases 573.015 170.
4 Export related expenses Postage.347 304 1.873 1.413 1.085 57.961 1.873 1. wages and benefits Repairs and maintenance Royalty Advertising and sales promotion Rent.957 5.181 1.475 59.128 1.345 290.260 1.391 1.098 40.160 1.821 9. 23 ADMINISTRATION AND GENERAL EXPENSES Batteries 2010 2009 Chemicals 2010 2009 Company 2010 Company 2009 (Rupees 000) Salaries.898 3.969 1.858 million (2009: Rs 1.256 2.770 641 6. telephone and telex General expenses 20.155 109.901 2.394 533 1.019 1.750 20. wages and benefits include Rs 0.696 3.321 5.639 1.561 3.Staff retirement gratuity plan As mentioned in note 2. 41 .498 2.4 Printing and stationery Travelling.696 3.283 3.500 2.432 1. telegram. 24 DEFINED BENEFIT AND DEFINED CONTRIBUTION PLANS 24.054 7.921 1.098 40. wages and benefits include Rs 0.423 296.896 237.477 1.817 4.883 667 7.948 2.923 231.506 1.441 304 1.22 SELLING AND DISTRIBUTION EXPENSES Batteries 2010 2009 Chemicals 2010 2009 Company 2010 Company 2009 (Rupees 000) Salaries.965 55.844 415 795 71.086 million) in respect of staff retirement benefits.350 255 25 75 5.252 1. rates and taxes Insurance Depreciation / amortisation .885 32.note 11.924 4.221 42.021 5.277 34.753 1. conveyance and entertainment Depreciation / amortisation .946 1.3 (a).685 million) in respect of staff retirement benefits.003 1.838 million (2009: Rs 0.1 Salaries.124 3.321 5.note 11.1 Salaries. separate funds are operating for the employees of Exide Pakistan Limited (Exide) and Automotive Battery Company Limited (ABCL) respectively.875 74. wages and benefits Repairs and maintenance Legal and professional charges Rent.821 9.235 22.107 54.964 1.997 228 379 93 364 141 84 530 93 368 4.948 2.827 75 42 78 5. Presently.483 19 94 75 (27 ) 5.844 440 870 76.948 1.760 1.451 555 1.871 457 783 96.4 Travelling.586 30.506 1.100 21.241 23.045 4.999 20.363 193 57 22 61 113 26 283 61 120 2.1 Defined benefit plan .392 74.105 5. 2010 and expense has been recorded based on this latest actuarial valuation report. the company operates an approved funded gratuity plan covering all employees.500 1. rates and taxes Insurance Printing and stationery Carriage and forwarding Battery warranty claims .982 109.561 1.957 5.190 3.134 2.221 42.236 283 5 40 4. The latest actuarial valuation of the plan has been carried out as at March 31.217 3.note 7. conveyance and entertainment Communication and postage General expenses 33.054 7.871 452 743 92.299 1.561 4.
920) 41.650 376 2.3 Movement in the defined benefit obligation Present value of obligation at April 1 Current service cost Interest cost Benefits paid Actuarial gain on obligation Present value of obligation at March 31 24.906 33.389) (1.210) (3.628) 31.940) (136) 57 (79) 994 1.020 707 2.394 41.462) (34) (75 ) (109) 1.780) (848 ) (3.775 (2.073 10.906) 4.881 2.1 Actuarial assumptions : EXIDE a.1.713 10.4 Less: fair value of plan assets Unrecognised actuarial gains / (losses) 24.317 42.081 42.799 743 2.389 1.1.020 707 3.5% 2010 ABCL 14% 14% 13% EXIDE 14% 14% 14% 2009 ABCL 14% 14% 14% Assumptions regarding future mortality experience are based on actuarial recommendations and published statistics.1.892 10.713 10.765 479 2.5 Amount recognised in the profit and loss account Current service cost Interest cost Expected return on plan assets Net actuarial (gain) loss recognised Cost for the year 1.2 Amount recognised in the balance sheet (note 7.088 (3.462 1.542 4.561 (2.106 1.765) (3.765 479 2.1.610) (395 ) (3.542) (2.317 ) (42.455 5.542) (2.511 (317 ) 4.967 42. Expected rate of return on plan assets 14% 14% 12.584) 41.3 24.111 8.3) 2010 Note Present value of defined benefit obligations 24.040 31.194 2.163 (1.940 (3.081 ) (41.394 40.111 4.465 ) (5.203 2.005) (3.727 4.073 10.713 10.1.598 ) 3.799 743 2.005) (2.678 9.967 42. 24.394 41.107 EXIDE ABCL Total EXIDE (Rupees 000) 2009 ABCL Total 31.296) 32.073 ) (4.428 5.728 44.090 2.428) 5.610) (395 ) (3.244 24.4 Movement in the fair value of plan assets Total plan assets as at April 1 Expected return on plan assets Contributions Benefits paid Actuarial gains / (losses) on plan assets 34.107 (34.Projected Unit Credit Method using the following significant assumptions was used for the valuation of the schemes: 24.759 1.084 2.111) (8.107 1.317 1.1.455 5.620 3.727 3.1.543) (41 ) 30.542 4.168 920 (2.565 1.168 920 4.073 4.775) (1.428 30.040 (32.675) 34.765) (777 ) (3.026 (2.165 ) (5.088 (3.569 4.165 (777 ) 376 9.244 42 .825 8.561 (4. Discount rate b.328 30.106 1. Expected rate of increase in salary c.825) (9.
533 191 11.678 30.317 100.216 17.OGDC Investment in mutual funds Cash at bank 13.094) (2.454) ABCL 2009 2008 2007 (Rupees in 000) 10.41% 94 1.394 9.00% 534 6.122) 2.825) (1.203 8.OGDC Investment in mutual funds Cash at bank 5.04% 0.152 (8.117 89.892) (32.8 5 years data on experience adjustments is as follows : 2010 Experience adjustments on plan liabilities Experience adjustments on plan assets (2.519 90.967 (9.171 34.37% 0.265 (8.525) (1.24.88% 50.111) (33.711 (30.00% (Rupees '000') Percentage (Rupees '000') Percentage composition composition EXIDE ABCL Defence Savings Certificates (DSC's) Term Finance Certificates Investment in shares .493) (3.77% 22.00% 41.210) (1.383) 2010 Present value of defined benefit obligation Fair value of plan assets Deficit / (Surplus) 10.296) EXIDE 2009 2008 2007 (Rupees in 000) (3.13% 170 2.00% 16.18% 9.825 0.05% 34.073 (32.544 345 11.077 (1.214) (2.522 32.07% 306 3.039 (34.1.56% 32.465) 153 (320) 2006 2.111 0.317) (10.34% 100% 7.713 31.7 5 years data on the (surplus) / deficit on the plan assets is as follows : 2010 Present value of defined benefit obligation Fair value of plan assets (Surplus) / Deficit 31.930 4.728) (10.414 7.780) (3.38% 97 1.1.752 2010 Experience adjustments on plan liabilities Experience adjustments on plan assets (848) 376 2006 187 366 43 .1.658) 24.081 100.090 ) ABCL 2009 2008 2007 (Rupees in 000) (41) (56) (293) (3.6 Plan assets comprise of the following: (Rupees '000') 2010 Percentage (Rupees '000') Percentage composition composition EXIDE ABCL Defence Savings Certificates (DSC's) Term Finance Certificates Investment in shares .081) 1.42% 8.810) (2.857) 2006 27.087 ) (2.92% 100% 2009 8.752) EXIDE 2009 2008 2007 (Rupees in 000) 30.886 2006 6.26% 1.22% 0.543) (1.00% 561 6.00% 24.398) (2.
303 6.088 million in the financial statements for the year ending March 31.940 million (2009: Rs 4.800 16.000 281 6.2 Donations were not made to any donee in which the company or a director or his spouse had any interest.provident fund An amount of Rs 3.1 Auditors' remuneration Audit fee Tax advisory services Fee for the review of half yearly financial statements Special reports and certifications.462 million).994 3.849 (63) 3.803 350 3.24. 2011 in respect of defined benefit scheme. 24.473 million (2009: Rs 4.565 2010 2009 (Rupees 000) 67 234 2.2 Defined contribution plan .158 750 500 200 250 100 1.901 1.748 243 36.2 Exchange loss .381 million) has been charged during the year in respect of contributory provident fund maintained by the company.437 499 638 5.net Provision held against slow moving and obsolete spares Provision for obsolete stock-in-trade Bank charges Service charges on export sales 1.9 Expected return on plan assets during the year was Rs 5.195 275 10.net Write-off of property.2 Workers' Welfare Fund Donations 26.1.1 Workers' Profits Participation Fund 7.158 9.787 3.800 44 26.net Reversal of provision held against slow moving and obsolete spares Provisions / liabilities no longer required written back Scrap sales Others 26 OTHER OPERATING CHARGES Auditors' remuneration 26.507 1. Note 25 OTHER OPERATING INCOME Mark up on margin deposits Export related rebates Gain on sale of operating fixed assets Reversal of provision for doubtful debts .560 2 63.993 193 2.807 6. plant and equipment Provision for doubtful debts .518 35 3.713 43.10 The company intends to charge an amount of approximately Rs 3. . audit of provident and gratuity funds Out of pocket expenses 2010 2009 (Rupees 000) 365 575 65 1.139 1.274 Note 26. 24.1.
395 239 106.554 Accounting profit before tax Tax rate Tax on accounting profit Tax effect of differences relating to : .667) 63.permanent differences .701 1.Note 27 FINANCE COST Interest on Workers' Profit Participation Fund Mark-up on .889 2.87 45 .797 Number of shares Weighted average number of ordinary shares outstanding during the year 5.077 (1.others Tax expense for the current year 29 EARNINGS PER SHARE (EPS) Earnings per share has been computed by dividing profit after taxation for the year by the weighted average number of shares outstanding during the year as follows: 2010 2009 (Rupees 000) Profit after taxation attributable to ordinary shareholders 197.037 8.003 88.077 2.611) 20.232 106.649.Import finance .tax for prior years .206 35% 106.737 (Rupees) Earnings per share (EPS) 34.800 82.844 5.614 19.1Relationship between tax expenses and accounting profit 303.611) 2.646 (2.558) 63.948 13 53.net 28.797 182.Long-term financing .057 1.related party 7.92 21.depreciation charged in the financial statements on leasehold land .Loan from a director .267 64.for the year .2 2010 2009 (Rupees 000) 463 73.845 78.Running finance .647 104 1.278 1.267 35% 63.for prior years Deferred .358 (672) (2.405.521 28 TAXATION Current .287 118.244 (2.
448 216 1.296 4.868 4 - 328 392 279 382 3.119 402 1.(2009: Rs 15.Defined contribution plan 5 - - - 144. utilities and reimbursable expenses Medical expenses Retirement benefits Defined benefit plan Defined contribution plan 1.term employee benefits Managerial remuneration Bonus Leave pay Housing.371 328 392 14.000/.1 The chief executive and four directors are provided with free use of company maintained cars.769 230 109 1.800 Expenses charged to Expenses charged by Interest on loan from a director Transactions with key management .909 662 227 2.403 488 5.845 2009 1.000/-).656 86 22 7.2 Remuneration to other Directors Aggregate amount charged in the financial statements for fee to a director was Rs 10.473 2.578 717 251 7. 30 REMUNERATION OF CHIEF EXECUTIVE.244 45 .239 167 3.757 487 74 4. Two of the executives are also provided with company maintained cars. 2009 and 2010 which would have any effect on the earnings per share if the option to convert is exercised.Defined benefit plan .941 1.936 5 44 52 5.29.785 3 9 9 Number of persons 1 30.381 2. DIRECTORS AND EXECUTIVES Chief Executive 2010 2009 Directors 2010 2009 Executives 2010 2009 Total 2010 2009 (Rupees 000) Short .224 253 2.791 1 284 340 7.241 53 5.530 824 249 716 105 654 96 2.1 A diluted earnings per share has not been presented as the company does not have any convertible instruments in issue as at March 31.058 15. residential telephones and certain items of household appliances in accordance with their entitlement.348 4 279 382 9. 30.052 68 965 76 - 3.124 279 382 - - 46 Rent expense Expenses charged in respect of staff contribution plan Expenses charged in respect of staff defined benefit plan Pension pertaining to a retired employee - - - - 33. 31 TRANSACTIONS WITH RELATED PARTIES Subsidary companies 2010 2009 1 - Key management personnel Other related parties 2010 2009 - (Rupees 000) 2010 1.Salaries .157 14.084 45 17.355 3.post employment benefits .
Key management personnel are those persons having authority and responsibility for planning. Note 2010 2009 (Rupees 000) 33 CASH GENERATED FROM OPERATIONS Profit before taxation Adjustments for non cash charges and other items: Depreciation Gain on sale of operating fixed assets Mark-up expenses Reversal of provision for impairment of trade debts .521 3.971 552.533 MT).1. employee benefit plans and key management personnel. The company considers all members of their management team.569 ) 71.3 and 24 to these financial statements.2. directing and controlling the activities of the entity.437 ) (499 ) 1. 8.507 ) 78. 32 PRODUCTION CAPACITY The actual production capacity of the battery plant cannot be determined as it depends on the proportion of different types of batteries produced which varies in relation to the consumer demand. 9 and 12 to the financial statements. Particulars of remuneration to key management personnel are disclosed in note 30 to these financial statements.633 303.The company has related party relationships with its associates.576 MT (2009: 32. Transactions with related parties essentially entail rent expense and transaction with key management personnel. 7. The installed capacity of the chemical plants is 33.996 (2. Balances outstanding with related parties as at the year end have been disclosed in the relevant balance sheet notes. Expenses charged by / to the company are determined on actual cost basis.777 (2.000 MT (2009: 33.212 ) (63. Particulars of transactions with workers' profit participation fund and staff retirement benefit plans are disclosed in notes 7. including the Chief Executive Officer and Directors to be key management personnel.807 (506. The outstanding balances receivable from / payable to related parties are disclosed in notes 7.139) 82. Consideration for services is determined with mutual agreement considering the level of services provided.948 (1. subsidiary company namely Chloride Pakistan (Private) Limited.554 182.003 47 .1 Working capital changes 62.000 MT) per annum whereas actual production during the year was 32.000 281 214.net Reversal of provision for slow moving and obsolete spares Provision for obsolete stock-in-trade 33. The actual production during the year was according to market demand.
791 45.971 34 CASH AND CASH EQUIVALENTS Cash and cash equivalents included in the cash flow statement comprise of the following balance sheet amounts: Note 2010 2009 (Rupees 000) Cash and bank balances Short-term running finances 19 9 286.098 12.523 16.866 606.212) (1.1 Financial assets and financial liabilities Financial assets Loans and receivables Long-term deposits Trade debts Loans and advances Trade deposits and other receivables Cash and bank balances 18.734 406.708.837 18.608 40.678) 160.399) (329) (666.993) (8.374 14.510 286.225) 154.972) 234.268 203.441 13.336) (599.672 15. short-term prepayments and other receivables Increase / (decrease) in trade and other payables 2009 (Rupees 000) (19.038 204.086.178) (681.679 436.621) (38.055) 35 FINANCIAL INSTRUMENTS BY CATEGORY 35.1 Working capital changes (Increase) / Decrease in current assets: Spares Stock-in-trade Trade debts Loans and advances Trade deposits.206 (968.751 162.366 Financial liabilities Financial liabilities at amortised cost Long-term finance Short-term borrowings Trade and other payables Accrued mark-up 48 1.466 (506.649 4.145 .500 1.206 533.431 234.753 10.218 214.668 3.037 985.070 1.734) (260.000 524.2010 33.679 (494.
The company finances its operations through equity. whereas remaining amounts are placed with banks having minimum short term credit rating of A1. limiting transactions with specific counterparties and continually assessing the creditworthiness of counterparties. The company is not exposed to any price risk as it does not hold any significant investments exposed to price risk.2 to 49 these financial statements. Concentrations of credit risk arise when a number of counterparties are engaged in similar business activities or have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic.637 million). The utilisation of credit limits is regularly monitored. amounts aggregating Rs 285. financial position. 36. political or other conditions. .881 188. the financial assets that are subject to credit risk amounted to Rs 533.532 million (2009: Rs 25.2 million). after giving due consideration to their strong financial standing. past experience and other factors.36 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The company's activities are exposed to a variety of financial risks namely credit risk and concentration of credit risk. including trade debts.427 227.756 79. The company attempts to control credit risk by monitoring credit exposures. The most significant financial asset exposed to credit risk is the trade debts of the company. Out of the total bank balance of Rs 286. Amounts aggregating Rs 0. The concentration of credit risk lies in the top 10 (2009: 10) customers which constitute 49.648 million have been placed with banks having shortterm credit rating of A1+. Concentrations of credit risk indicate the relative sensitivity of the company's performance to developments affecting a particular industry. Management. foreign exchange risk.969 million) as the amounts being doubtful to be recovered from customers.630 108.25%) of the company's trade debts.476 million have been placed with banks having unrated short-term credit rating. For trade debts. The breakup of amount due from customers other than related parties as disclosed in note 16 to these financial statements is presented below: 2010 2009 Due from customers other than related parties (Rupees 000) Direct customers Distributors 146.523 million (2009: Rs 436.637 Out of Rs 227. Out of the total financial assets of Rs 533.630 million (2009: Rs 188.203 81. The aging profile of trade debts overdue but not impaired has been disclosed in note 16. individual credit limits are assigned to customers based on the recommendations from respective business unit heads keeping in view their payment history.1 Credit risk and concentration of credit risk Credit risk is the risk which arises with the possibility that one party to a financial instrument will fail to discharge its obligation and cause the other party to incur a financial loss. does not expect nonperformance by these counter parties on their obligations to the company. interest rate risk and liquidity risk.The company has established adequate procedures to manage each of these risks as explained below. borrowings and management of working capital with a view to monitor an appropriate mix between various sources of finance to minimise risk.70% (2009: 41.442 million (2009: Rs 436.125 million placed with banks maintained in current accounts. Credit risk arises from cash and cash equivalents and credit exposures to customers. the company has provided Rs 24.366 million).
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices.070 1.478 2. Euro.648 GBP 3 36.175.2 Liquidity risk Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due.086.523 606.567 203.2 of these financial statements.742 (108.206 533.086.523 12.098 13.436 Euro 58 Yen 1.672 15.866 ) 986.441 18.608 (88.510 286.672 15.36.086. The details of balances are as follows: 2010 2009 (Amount in000) Bills payable US Dollar 3.142 606.510 286.070 621.070 621.loan from director Trade and other payables Accrued mark-up 50 (1.000 1.30-15.3. The company primarily has foreign currency exposures in US Dollars (USD).441 18.708. The company aims to maintain flexibility in funding by keeping committed credit lines open.866 986.672 15.3.268 20. Market risk comprises of currency risk and interest rate risk.361) 20.866 ) (1.098 13.086.866 - 10.268 203.2 Interest rate risk Effective interest Interest / mark-up bearing rate Maturity Maturity (in upto one after one Sub-total percentage) year year 2010 Non interest / mark up bearing Maturity Maturity upto one after one Sub-total year year (Rupees 000) Total Financial assets Loans and advances Loan-term deposits Trade debts Trade deposits and other receivables Cash and bank balances Financial liabilities Long-term finance Short-term borrowings .874 18.000 1.866 100.866 100.from banking compaines 12.000 606.742 986.3.206 533.510 286.27 5-6 . Prudent liquidity risk management implies maintaining sufficient cash and bank balances and availability of funding through an adequate amount of committed credit facilities.1 Currency Risk Foreign currency risk arises mainly where receivables and payables exist due to transactions entered into in foreign currencies.866 100.142 12.098 13.418 703 Dirham 1.206 513.219) (1.268 203. Japanese Yen. 36.085) . The maturity profile of the company's liabilities based on contractual maturities is disclosed in note 36.381 1. UAE Dirham and Pound (GBP) .
In order to maintain or adjust the capital structure.668 18.465) 18.000 494. or a liability settled. the company monitors capital on the basis of the gearing ratio.50 5 .734 30. the company may adjust the amount of dividends paid to shareholders.374 14.734 30.000 406.374 14.000 40.366 406.751 18.946 1.Effective interest rate (in percentag) Interest / mark-up bearing Maturity Maturity upto one after one Sub-total year year 2009 Non interest / mark up bearing Maturity Maturity upto one after one Sub-total year year (Rupees 000) Total Financial assets Loans and advances Long-term deposits Trade debts Trade deposits and other receivables Cash and bank balances Financial liabilities Long-term finance Short-term borrowings .668 18.837 16.000 20.168 162.751 162. 37 CAPITAL RISK MANAGEMENT The company's prime objective when managing capital is to safeguard its ability to continue as a going concern in order to provide adequate returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. Consequently.734 30.779) (544.679 436. Underlying the definition of fair value is the presumption that the company is a going concern without any intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms.037 985.000 494.734 20.955 40.669 16. The ratio is calculated as net debt divided by total capital.837 16. 51 .4 Fair value of financial instruments Fair value is an amount for which an asset could be exchanged. Total capital is calculated as equity as shown in the balance sheet plus net debt.668 18. differences may arise between the carrying value and the fair value estimates. 2010 the net fair value of all financial assets and financial liabilities are estimated to approximate their carrying values.from banking compaines 10.000 564.000) 36. issue new shares or sell assets to reduce debts.431 234.145 (548.374 14.734 ) (20. Consistent with others in the industry.420 3. between knowledgeable willing parties in an arm's length transaction.431 234.411 (2.420 406.734 (564.431 234.000 544.92-17.734) - 2.037 420.000 494. Net debt is calculated as total borrowings less cash and bank balances.679 436.loan from director Trade and other payables Accrued mark-up 20.366 3.751 162.411 15.037 420. As at March 31.679 417.
159 47. DATE OF AUTHORISATION These financial statements were authorised for issue on June 29.13. In addition. note 2.2010 Total Borrowings Less: Cash and bank balances Net Debt Total Equity Total Capital Gearing Ratio 38 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS 2009 (Rupees 000) 564.964 1. The financial statements for the year ended March 31. 2010 by the Board of Directors of the company.734 234.3).499 1. The areas where various assumptions and estimates are significant to the company's financial statements or where judgment was exercised in application of accounting policies are as follows: i) Estimation for impairment in respect of trade debts (note 2.25% 1. 39 NON-ADJUSTING EVENT AFTER THE BALANCE SHEET DATE The Board of Directors of the company in their meeting held on June 29. It also requires the management to exercise its judgment in the process of applying the company's accounting policies.3 and note 24).055 725.866 286. v) Estimates of liability in respect of staff retirement gratuity (note 2. and vii)Useful life and depreciation rates of operating fixed assets (note 2. ARSHAD SHEHZADA 52 ARIF HASHWANI Chairman Chief Executive .6 and note 7. vi) Taxation (note 2.14. 2010 of Rs 6 per share (2009: final cash dividend of Rs 5. iv) Provision for obsolete inventory (note 2.086.701. 2010 have proposed a final cash dividend in respect of the year ended March 31. Estimates and judgments are continually evaluated and are based on historical experience.07% The preparation of financial statements in conformity with approved accounting standards requires the use of certain critical accounting estimates.15 and note 16). 2010 do not include the effect of these appropriations which will be accounted for subsequent to the year end.4).679 330. These appropriations will be approved in the forthcoming Annual General Meeting.12.2 and note 28).206 800.056.019 31. iii) Impairment on assets (note 2.1. 40 41 GENERAL AND CORRESPONDING FIGURES Amounts have been rounded to the nearest thousands unless otherwise stated.660 900. ii) Provision for battery warranty claims (note 2.00 per share). including expectations of future events that are believed to be reasonable under the circumstances.17 and 2.1).10 and 11. the Board of Directors have also announced appropriation of Rs 180 million (2009: Rs 80 million) to revenue reserves. note 14 and note 15).
992 909.742 22.386 94.129 100 .904 Percentage 2.559 5. of Shareholders 1114 8 5 267 1394 Number of shares held 153.05 0.01 53 267 5.67 95.823 17.42 5.649.02 1.697 91.PATTERN OF SHAREHOLDING AS AT MARCH 31.263.510 310.830 1.346 11.307.649.129 5.253 235.904 PATTERN OF SHAREHOLDING AS AT MARCH 31.587 2.630 772 Percentage 79.904 43.400.72 0.258 310.394 RANGE OF SHAREHOLDING FROM TO 1 100 101 500 501 1000 1001 5000 5001 10000 10001 15000 15001 20000 55001 60000 80001 85000 90001 95000 235001 240000 310001 315000 385001 390000 905001 910000 1025001 1030000 2260001 2265000 TOTAL SHARES HELD 23.308 778.528 1.59 100 a) Categories of Account holders and sub Account holders as per Central Depository Register Shareholders Category Individuals Financial Institutions Insurance Companies Joint Stock Companies Charitable Trust No.777 83. 2010 NUMBER OF SHAREHOLDERS 924 360 59 37 2 2 1 1 1 1 1 1 1 1 1 1 1.629 70. of Shareholders 252 6 1 7 1 Number of shares held 4.76 14.945 55.333 93. 2010 Categories of Shareholders Shareholders Category Individuals Investment Companies Joint Stock Companies Central Depository Company (a) No.027.909 2.181 5.400.909 388.76 0.
38 100 5.201.69 5.01 4.578 789.03 14. Dinshaw General Public 1.181 1.335 Total 54 % OF SHAREHOLDING 74.027.454 83. Khorsheed Dinshaw & Mrs.429 Executives Financial Institutions & Investment Companies National Bank of Pakistan Nomura Bank (Luxembourg) SA Templeton Global Strategy SICA Investment Corporation of Pakistan Khadim Ali Shah Bukhari & Co First UDL Modaraba Mutual Trdg. Fateh Textile Mills Limited Hashoo Holding (Private) Limited Hoshag Dinshaw (Private) limited Parin Dinshaw (Private) Limited Sarfraz Mahmood (Private) Limited Insurance Companies State Life Insurance Corporation of Pakistan Charitable Trust Trustee Mrs.50 0. (Pvt) Ltd. Habib Brothers (Private) Limited DJM Securities Fateh Textile Mills Pak Asian Fund Limited Y.03 1.587 909. Joint Stock Companies Furukawa Battery Co.528 10 464 500 159 4.909 772 247. Hoshan N. Securities & Services (Pvt) Ltd.263.36 0. Ltd.S. Co. CEO and their spouses and minor children Arif Hashwani Altaf Hashwani Hussain Hashwani Arshad Shahzada Syed Haider Mehdi Syed Muhammad Faiq Sana Hashwani 2. 2010 NUMBER OF SHARES Directors.333 262 11.E.712 18 39 63 95.686 4 27 162 50 488 433 222 500 262 320 300 792.427 310.CATEGORIES OF SHAREHOLDERS AS AT MARCH 31.904 .649.
................................. Manghopir Road......... Karachi...................... S......................................... of........................................................ being a member of Exide Pakistan Limited and a holder of........................................................... (No........... of Shares) Ordinary Shares as per Share Register Folio Number.................... hereby appoint..............I....................... Hill Street.......... I/We............................................................ or failing him........................................................FORM OF PROXY Exide Pakistan Limited...as my/our proxy to vote for me/us on my/our behalf at the Fifty-Seventh Annual General Meeting of the Company to be held on July 30.........................E......................................................................................2010..................................................................................... Signature on Revenue Stamp Signature of Proxy Signature should agree with the specimen signature registered with the Company .....T.......................................day of.............................................................................. 2010 and at any adjournment thereof.............. of......................in the district of................. Signature this ....... A-44......................................................... of.................in the district of....
Dignam & Co. S. Karachi .Chairman .75700. Haider Mehdi BANKER Habib Bank Limited AUDITORS KPMG Taseer Hadi & Co. 61 . Haider Mehdi . REGISTERED OFFICE A-44. Manghopir Road.CORPORATE PROFILE BOARD OF DIRECTORS Arif Hashwani Altaf Hashwani S.I.. SOLICITORS Orr.Chief Executive COMPANY SECRETARY S.T.E. Hill Street.
Messrs: KPMG Taseer Hadi & Co. Chartered Accountants. 2010. Accounts: The Audited Accounts of the Company for the year ended March 31. have offered themselves for re-appointment. together with the Auditors Report thereon.. 2010 are annexed. On behalf of the Board ALTAF HASHWANI Chief Executive Karachi: 29 June.DIRECTORS REPORT The Directors have pleasure in presenting their Report for the year ended March 31. loss appearing in the Profit and Loss Account attributes to amortization of preliminary expense incurred in the previous years and professional charges and audit fees. retire and being eligible. Holding Company: The Company is wholly owned subsidiary of Exide Pakistan Limited. Results: Production activities could not be started due to the withdrawal of various incentives by the Government from the Industrial Estate of Hattar and as such. 2010 62 . Appointment of Auditors: The present auditors.
AUDITORS' REPORT TO THE MEMBERS We have audited the annexed balance sheet of Chloride Pakistan (Private) Limited as at 31 March 2010 and the related profit and loss account. An audit also includes assessing the accounting policies and significant estimates made by the management. and. and iii) the business conducted. We believe that our audit provides a reasonable basis for our opinion and. 2010 KPMG TASEER HADI & CO. as well as. we draw attention to note 2. investments made and the expenditure incurred during the year were in accordance with the objects of the Company. and prepare and present the above said statements in conformity with the approved accounting standards and the requirements of the Companies Ordinance. we report that: a) in our opinion. give the information required by the Companies Ordinance. Without qualifying our opinion. cash flow statement and statement of changes in equity together with the notes forming part thereof. ii) the expenditure incurred during the year was for the purpose of the Companys business. b) in our opinion: i) the balance sheet together with the notes thereon have been drawn up in conformity with the Companies Ordinance. after due verification. An audit includes examining. 1984. 1980. were necessary for the purposes of our audit. Karachi: June. to the best of our knowledge and belief. its cash flows and changes in equity for the year then ended. which states that these financial statements have not been prepared on a going concern basis and consequently all the assets appearing in these financial statements have been measured at their realizable values and the liabilities are reported at amounts not less than those at which these are expected to be settled. evaluating the overall presentation of the above said statements. We conducted our audit in accordance with the auditing standards as applicable in Pakistan. c) in our opinion and to the best of our information and according to the explanations given to us. the balance sheet. 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. in the manner so required and respectively give a true and fair view of the state of the Companys affairs as at 31 March 2010 and of the loss. evidence supporting the amounts and disclosures in the above said statements. and are in agreement with the books of account and are further in accordance with accounting policies consistently applied. for the year then ended and we state that we have obtained all the information and explanations which. 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. on a test basis. 1984. Chartered Accountants Muhammad Taufiq 63 . proper books of accounts have been kept by the Company as required by the Companies Ordinance. It is the responsibility of the Companys management to establish and maintain a system of internal control. Our responsibility is to express an opinion on these statements based on our audit. and d) in our opinion no Zakat was deductible at source under the Zakat and Ushr Ordinance. 1984.2 to the financial statements. profit and loss account. 29. 1984.
800 (501.888) 280.152 36.112 3 4 2.638) (277.100) 41.838) 8 280.010 3.Subordinated The annexed notes 1 to 13 form an integral part of these financial statements.CHLORIDE PAKISTAN (PRIVATE) LIMITED BALANCE SHEET AS AT 31 MARCH 2010 Note 2010 (Rupees) Current assets Cash and bank balances Receivable from Exide Pakistan Limited Current liability Accured expenses 5 (36.000 2.000 41.688) (238.162 Financed by: Share capital Accumulated loss 7 223.162 223.276 66.936 2009 Loan from a director .800 (462. ALTAF HASHWANI Chief Executive 64 ARIF HASHWANI Chairman .000) 2.112 (29.
124 6.000 42.826 38.CHLORIDE PAKISTAN (PRIVATE) LIMITED PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2010 Note 2010 (Rupees) 2009 Expenses Legal and professional charges Bank charges Auditors' remuneration .000 6.200 473 The annexed notes 1 to 13 form an integral part of these financial statements.950 42. ALTAF HASHWANI Chief Executive ARIF HASHWANI Chairman 65 .673 1.826 6.Audit fees .673 30.Out of pocket expenses 31.000 36.950 Loss before tax Tax Loss for the year 2.6 38.000 37.
950 ) 30.276 2.CHLORIDE PAKISTAN (PRIVATE) LIMITED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2010 Note Cash flow from operating activities Loss for the year Decrease / (increase) in receivable from Exide Pakistan Limited Increase in accured expenses Net cash flow from operating activities Cash flow from financing activities Subordinated loan from a director Net cash flow from financing activities Cash at beginning of the year Cash at the end of the year 3 (1.276 (38.573) 2010 (Rupees) 2009 The annexed notes 1 to 13 form an integral part of these financial statements.000 (29.573) 32.124 ) 3.000) 29.673) (26. ALTAF HASHWANI Chief Executive 66 ARIF HASHWANI Chairman .124 ) (42.152 10.926 6.849 3.900 (1.100 (39.
800 (42.015) (196.638) (38.800 (420.950) (277.688) (42.950) (501.673) (238.888) 223.838) The annexed notes 1 to 13 form an integral part of these financial statements.215) Total 223.CHLORIDE PAKISTAN (PRIVATE) LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2010 Share capital Accumulated loss (Rupees) Balance as at 1 Aprl 2008 Total Comprehensive Income for the year ended 31 March 2009 Balance as at 31 March 2009 Total Comprehensive Income for the year ended 31 March 2010 Balance as at 31 March 2010 223. ALTAF HASHWANI Chief Executive ARIF HASHWANI Chairman 67 .800 (38.673) (462.
E Karachi. The estimates and associated assumptions are based on various other factors that are believed to be reasonable under the circumstances. 2.2 Basis of measurement These financial statements have not been prepared on a going concern basis as the Company has not been able to commence its operations. 1984 shall prevail. Tthe registered office of the Company is situated at A-44 Hill Street Manghopir Road.T. the provisions of.CHLORIDE PAKISTAN (PRIVATE) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2010 1. 1984. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board as are notified under the Companies Ordinance. the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. STATUS AND NATURE OF BUSINESS The Company was incorporated on 20 March 1994 as a Private Limited Company to take the benefit of tax exemption in Hattar. However. In case requirements differ. or directives issued under the Companies Ordinance.4 Use of estimates and judgments The preparation of financial statements in conformity with approved accounting standards requires management to make judgments. S. Consequently all the assets appearing in these financial statements have been measured at their realizable values and the liabilities are reported at amounts not less than those at which these are expected to be settled. income and expenses.1 Statement of Compliance These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan.6. 2. Judgments made by management that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed in note 2.3 Functional and presentation currency These financial statements have been prepared in Pak Rupees. Actual results may differ from these estimates. 68 . Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.I. provisions of and directives issued under the Companies Ordinance. estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities. The principal activity of the Company will be to manufacture and market automotive batteries and industrial cells. the exemption was taken off after its incorporation and therefore the Company did not commence its operations. A statement of comprehensive income has not been included as a part of these financial statements as there are no items to report therein. 1984. which is the Company's functional currency. The estimates and underlying assumptions are reviewed on an on going basis. SIGNIFICANT ACCOUNTING POLICIES 2. 2. 2.
The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities.2.Agreement for the Construction of Real Estate . 69 .Distributions of Non-cash Assets to Owners .Amendments to IAS 39 . .The Limit on a Defined Benefit Assets. These standards are either not relevant to the Companys operations or are not expected to have significant impact on the Companys financial statements other than increase in disclosures in certain cases.Improvements to IFRSs 2008 .Revised IFRS 3 . Deferred Deferred tax is recognised using balance sheet liability method. providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.5 Standards.IFRIC 15 . using the enacted or substantively enacted rates of taxation. Minimum Funding Requirements and their Interaction .Group Cash-settled Share-based Payments transactions .6 Taxation Current The charge for current taxation is based on taxable income at the enacted or substantively enacted rates of taxation after taking into account tax credit and tax rebates realizable.Business Combinations . if any.IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments .Amendments to IFRIC 14 IAS 19 .Financial Instruments: Recognition and Measurement .Amendment to IFRS 2 .Consolidated ans Separate Financial Statements .IAS 24 Related Party Disclosures (revised 2009) .IFRIC 17 . The following standards. interpretations and amendments of approved accounting standards are effective for accounting periods beginning on or after 1 April 2010.Amendment to IAS 32 Financial instruments presentation Classification of rights issues .Amendments to IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations Certain standards.Amended IAS 27 . No charge for current tax has been recognized as the Company has incurred loss in the current year.Share-based Payment . 2. amendments and interpretations to approved accounting standards are effective for accounting periods beginning on or after 1 April 2009 but are considered not be relevant or have any significant effect on the offices operations and are therefore nor detailed in these financial statments. interpretation and amendments to published approved accounting standards that are not yet effective.
TRANSACTION WITH RELATED PARTIES The related parties comprises holding company (Exide Pakistan Limited) and the director of the Company. Arif Hashwani (a director of the Company).152 300 2.926 ) 36.000. Unsecured This represents interest free loan received from Mr. LOAN FROM DIRECTOR .350 (2009: 22. SHARE CAPITAL Authorised share capital 10.7 Financial instruments Financial assets and liabilites are recognised when the Company becomes a party to the contractual provisions of the instruments.200 26.800 7. 3.No deferred tax asset was recognized as the financial statements are not prepared on a going concern basis.200) 1.976 3.010 40. The loan has no fixed repayment terms and is subordinated to all the liabilities of the Company.200) (1. ACCRUED EXPENSES This includes accrual relating to audit fees. 6. 936 (1. Detail of transactions with related parties have been disclosed in note 4 and 8.276 4.350) ordinary shares of Rs.936 (30.926 ) (30.000 ordinary shares of Rs.subordinated.000 223. All financial assets and liabilities are initially measured at cost.000.380) ordinary shares of Rs. 70 . 2. The financial assets are subsequently measured at their realizable values and the liabilities are reported at amounts not less than those at which these are expected to be settled. 7. (RECEIVABLE) / PAYABLE EXIDE PAKISTAN LIMITED .000 66. CASH AND BANK BALANCES Cash in hand Cash at bank 2010 2009 (Rupees) 300 1. 10 each of the Company. subscribed and paid up share capital 22. 8.000 100.800 223.1 At 31 March 2010 Exide Pakistan Limited (holding company) held 22.936 5.852 2.380 (2009: 22.000. 10 each fully paid in cash 100. 10 each Issued. which is the fair value of the consideration given and received respectively.holding company Balance as at 1 April 2009 Legal and professional charges Audit fee and out of pocket expenses Payments made during the year Reversal of payable booked last year Balance as at 31 March 2010 2010 2009 (Rupees) 66.
DATE OF AUTHORISATION 13. The management of the Company is committed to inject further funds in the Company. 10. STAFF STRENGTH The Company has no employee and is run by its Directos without any remuneration. (if required) in future periods. INTEREST RATE RISK EXPOSURE All the assets and liabilities of the Company are current and are not exposed to any interest rate risk. 13. 12. 11. FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of the Companys financial assets and liabilities are estimated to approximate their carrying value as at 31 March 2010. 13.1 Figures have been rounded off to the nearest rupee. ALTAF HASHWANI Chief Executive ARIF HASHWANI Chairman 71 . CAPITAL RISK MANAGEMENT The management of the Company manages the capital by injecting funds in the form of subordinated loan from director of the Company.2 These financial statements were authorised for issue in the Board of Directors meeting held on June 29.9. 2010.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.