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Corporate Information Mission and Vision Notice of Annual General Meeting Director’s Report Pattern of Share Holdings Six Years at Glance Statement of Value Addition Graphical Representation Product Range Promotional Activities Statement of Compliance Auditors Review on Compliance Report Auditors Report Balance Sheet Profit and Loss Account Cash Flow Statement Statement of Changes in Equity Notes to the Accounts Form of Proxy
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ANNUAL REPORT 2009
ANNUAL REPORT 2009
HEAD OFFICE 40-L Model Town Lahore,Pakistan Phones :(042) 35172205, 35169025, 35169049 35169084 , 35169087 Fax:(042) 35172263 E-mail : firstname.lastname@example.org Http://www.ghanigroup.com REGISTERED OFFICE 50-L Model Town Lahore, Pakistan Phones :(042) 35203975-76 Fax :(042) 35160314 MARKETING OFFICE 12 D/3,Chandni Chowk KDA Scheme No. 7-8 Karachi - 74000 Phones : (021) 34911961-62 & 34852686-87 Fax :(021) 34941131 E-mail :email@example.com GGL PLANT-1 ®IONAL MARKETING OFFICE-NORTH 22 km Haripur Taxila Road, (From Haripur) The.& Dist. Haripur (NWFP) Phones :(0995) 639236-40 & (0596) 539063-65 Fax :(0995) 639067 Email :firstname.lastname@example.org GGL PLANT-2 H- 15,Landhi Industrial Area Karachi-74000 Phone :(021) 35020761-63 Fax :(021) 35020280 Email:email@example.com GGL PLANT-3 29-km Lahore Sheikhupura Road, District Sheikhupura Phones : (0563) 406796 Fax :(0563) 406795 Email :firstname.lastname@example.org
integrity and self determination. eventually through our efforts and belief. to encourage in performance and most of all to put our trust in ALLAH. so that We achieve & Maintain constantly the High Standards of Product Quality & Customer Satisfaction VISION & PHILOSOPHY Nothing in this earth or in the heavens Is hidden from ALLAH To indulge in honesty.ANNUAL REPORT 2009 MISSION STATEMENT To be successful by effectively & efficiently Utilizing our Philosophies. so that we may. become the leader amongst glass manufacturers of South Asian Countries 4 .
Commercial. To receive and adopt the annual Audited Financial Statements of the company together with auditors and directors reports for the period ended June 30. 042.D. 5. 35887262 Fax No. By order of the Board Aamir Shahzad Mughal Lahore: October 06. A proxy must be a member of the company. 2. Present auditors M/s KPMG Taseer Hadi & Co. The shareholders registered on CDC are also requested to bring their participation I. M/s Corplink (Pvt) Ltd. A member entitled to attend and vote at the meeting may appoint another member as his or her proxy to attend and vote. 1-K.. To appoint auditors and fix their remuneration. 2009 shall qualify for the payment of bonus shares. To transact any other business with permission of the chair. Wings Arcade. Cards or passport at the time of attending the meeting. The members whose names appear in the register of members as at the close of business on October 20. Chartered Accountants being eligible offer themselves for reappointment. shall authenticate his/her identity by showing original I. 3. 2009 NOTES: The share transfer books of the company will remain closed from Wednesday October 21. In case of corporate entity. to shares registrar.M at Avari Hotel. Lahore. To approve the issuance of bonus shares @ 10% and payment of cash dividend @ 30% as recommended by the board.ANNUAL REPORT 2009 NOTICE OF ANNUAL GENERAL MEETING Notice is hereby given that 17th Annual General Meeting of shareholders of Ghani Glass Limited will be held on Tuesday October 27. The Mall.35869037. 042-35839182. numbers and account number in CDC. Lahore. 4. 5 . Model Town. 2009 (both days inclusive). 2009. CDC account holders will have to follow the following guidelines for attending the meeting: i) In case of individuals the account holders.. cash dividend and attendance of this meeting. Company Secretary ii) Shares holders are requested to notify the change of their addresses. Board of Directors resolution / power of attorney with specimen signature of nominee shall be produced (unless provided earlier) at the time of meeting.2009 to Tuesday October 27. Proxies in order to be effective must be received at the Registered office of the company not less than 48 hours before the time of holding the meeting. Phone No. To confirm the minutes of 16th Annual General Meeting. for transacting the following business:1. 2009 at 11:00 A.D. if any. sub account holders and the person whose securities are in group account and their registration details are uploaded as per the regulations.
Post October 2008. This scenario appears to have improved somewhat.761 70.972.729 1. Therefore.ANNUAL REPORT 2009 DIRECTORS' REPORT TO THE SHARE HOLDERS The Board of Directors of the company is pleased to present their Annual Report together with the Company's Audited Financial Statements for the year ended June 30. the input costs of manufacturing increased to levels not seen for decades. 2009 2008 (Rupees in 000) NET SALES GROSS PROFIT PROFIT FROM OPERATIONS FINANCE COST OTHER INCOME PROFIT BEFORE TAX PROFIT AFTER TAX EARNINGS PER SHARE 5.098 78. 2009.761 8. your Company has done well even in these adverse economic conditions with focus on quality and costs and it has helped to achieve following healthy results for the period under review. Before the start of the meltdown in October 2008 the commodity prices as well as energy prices had scaled new heights with oil prices going past US$ 140 per barrel.191.874 993.285 712.224 1.991 6.08 3. In Pakistan.802 538. however.960 92.326 807.526. uncertainty gripped the World with multinational giants falling like nine pins.183. in addition to a bleak World economic scenario we have had our own problems both political and economic. COMPANY RESULTS Alhamdolillah.272 878.143.042 93.11 6 . slow improvement has started. ECONOMIC OVERVIEW As you are aware the year under review was an unprecedented in the economic history of the World since the World War II. The economic meltdown has been very wide spread and intense and did not spare any segment or region of the Globe.090 1. however. future is still uncertain.
526 billion against Rupees 1. The export sales also showed an improvement at 6% despite difficult market conditions. 7 . Major projects completed and commissioned successfully during the year include rebuild of Furnace 2 with annual production capacity of 35. Profit Before Taxation 1000 800 600 400 200 0 2005 2006 2007 2008 2009 558 293 476 808 993 MAJOR PROJECTS COMPLETED It gives us great pleasure that our joint venture project with RAK Investment Authority and Swicorp of Saudi Arabia to setup a 40 KTPA Container Glass Plant at Ras Al Khaima was successfully commissioned during the year and is in its successful operations.11 of the last year. however.ANNUAL REPORT 2009 Net sales revenue increased to Rupees 5.183 billion of the previous years and showed upward trend of 29%. FLOAT GLASS EXPANSION As you are aware your Company was planning to expand the Float Glass Project last year.192 billion as compared to Rupees 3. The net profit after tax has gone up to Rupees 713 million as compared to Rupees 539 million of the last year and is 32% higher and consequently EPS has gone up to Rupees 8.000 tons. the Project was delayed in view of the prevailing economic conditions.972 billion last year . 31% higher. Your company's investment in RAK Ghani Glass reached Rs.000 tons at Hattar and restart of Furnace 3 at Karachi with annual production capacity of 10. Sales Revenue 6000 5000 4000 3000 2000 1000 0 2005 2006 2007 2008 2009 1389 2680 3125 3972 5192 Your company earned a gross profit of Rupees 1. 149 million as share of equity in RAK Ghani Glass LLC. Your company keeps on accumulating its assets and during the year additions in fixed assets of around rupees 478 million were made. Overall productivity was higher by 3. The preliminary work on this Project has been completed and the required land has been procured and the work on this Project is expected to be restarted in the first half of 2010.63 % compared with last year despite closure of a furnace for rebuild for 100 days.02 as compared to Rupees 6.
57 as on June 30. the Board of Directors has recommended their reappointment as auditors of the company for the year ending June 30. Lahore and Islamabad Stock Exchanges in their Listing Regulations. 8 . By the grace of Almighty Allah our employees' commitment. All employees are informed of this statement and are required to observe these rules of conduct in relation to customers. training and performance management have been further strengthened to achieve higher employee motivation. 2009 have been adopted by the company and have been duly complied with. SHARE PRICE TREND During the year under review minimum price of share of Rs. 50.07 and at one stage rose as high as Rs.74 and close at Rs. STAFF RETIREMENT BENEFIT The Company operates a funded contributory provident fund scheme for its employees and contributions based on salaries of the employees are made to the fund on monthly basis. COMPLIANCE WITH THE CODE OF CORPORATE GOVERNANCE The requirements of the Code of Corporate Governance set out by the Karachi. Development of Human Resource has always been a priority area in the Company as the Directors consider human capital as the best asset of your Company. 10 each fell up to Rs. 2009 and the company has not entered into any commitment. 111. STATEMENT OF ETHICS AND BUSINESS PRACTICES The board has adopted the statement of Ethics and Business Practices. 2009. at a mutually agreed fee. During the year. which would materially affect its financial position at the date. 2010. suppliers and regulations. HUMAN RESOURCE Management and employee relations continued to remain congenial. 2009) There have been no material changes since June 30. relevant for the year ended June 30.ANNUAL REPORT 2009 AUDITORS The present auditors M/s KPMG Taseer Hadi & Company Chartered Accountants retire and offer themselves for reappointment. As suggested by the Audit Committee. SUBSEQUENT EVENTS (after June 30. recruitment. professionalism and focus on quality and customer care continue to help us achieve our growth targets.
Anwaar Ahmad Khan Mr. Masroor Ahmad Khan (Retired) MrS. cash flow and changes in equity. 3. During the year 4 meetings of the Audit Committee were held.ANNUAL REPORT 2009 BOARD OF DIRECTORS The Board of Directors. Hafiz Avais Ghani Mr. Imtiaz Ahmad Khan Mr. Hafiz Farooq Ahmad Mr. 2008 to June 30. NAME OF DIRECTOR Mr. Aftab Ahmad Khan Mr. 1984. 5. Appropriate accounting policies have been consistently applied in the preparation of financial statements and accounting estimates are based on reasonable and prudent judgment. Faysal Essam T. which comprises of one executive and two non executive directors (including its Chairman). Hamza Mr. 10. 9 . A total of six meetings of the Board of Directors were held during the period of one year. as applicable in Pakistan. The attendance of the Board members was as follows: S. have been followed in the preparation of financial statements. Proper books of account have been maintained by the company. 6. 11. 2009. Junaid Ghani Mr. from July 01. Jubair Ghani Mr. # 1. Reema Anwaar (Retired) Mrs. 4. The Audit Committee has its terms of reference which were determined by the Board of Directors in accordance with the guidelines provided in the Listing Regulations. which consist of Ten members and one alternate member. Shahid Khan (Alternate) MEETINGS ATTENDED 6 6 6 4 3 4 6 6 3 5 3 5 Leave of absence was granted to directors who could not attend some of the meetings. A written notice of the Board meeting along with working papers was sent to the members seven days before meetings. the results of its operations. 2. The International Accounting Standards. Ayesha Aftab Mr. AUDIT COMMITTEE An audit committee of the Board has been in existence since the enforcement of the Code of Corporate Governance. Aitzaz Ahmad Khan Mr. have responsibility to independently and transparently monitor the performance of the company and take strategic decisions to achieve sustainable growth in the company value. These statements present fairly the Company's state of affairs. CORPORATE AND FINANCIAL REPORTING FRAMEWORK The financial statements together with the notes thereon have been drawn up by the management in conformity with the Companies Ordinance. 7. 12. 8. 9.
The key operating and financial data for the last six years is annexed. CFO. Reema Anwaar Mr. Company Secretary and their spouses and minor children: PURCHASE OF SHARES Mr. whose disclosure is required under the reporting framework. except as noted above. Anwaar Ahmad Khan Mrs.963 million PATTERN OF SHARE HOLDINGS A statement of the pattern of shareholding of certain class of shareholders as at June 30. Trading of Shares by Chief Executive.846 138. CEO.810 247. is included in the annexed shareholder's information. 2009 Imtiaz Ahmed Khan Chief Executive Officer 10 . Directors. Information about taxes and levies is given in the notes to the accounts. There are no doubts upon the company's ability to continue as a going concern. There has been no departure from the best practices of Corporate Governance. 2009. as detailed in the listing regulations. There has been no departure from the best practices of transfer pricing. On behalf of the Board of Directors Lahore September 29.ANNUAL REPORT 2009 The system of internal control is sound in design and has been effectively implemented and monitored. Chief Financial Officer. OF SHARES 63. Company Secretary and their spouses or minor children did not carry out any trade in shares of the company during the year. The value of investments and bank balances in respect of staff retirement benefits: Provident Fund The value of investment includes accrued interest. Jubair Ghani Deputy CEO Director Director NO. The directors.622 Rs. 74.
190.568 662.095 1.136 695 525 2.150 2.000 110 1.150. REEMA ANWAAR W/O ANWAAR AHMAD KHAN MRS. IMTIAZ AHMAD KHAN MR.283 PUBLIC 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 SECTOR COMPANIES & CORPORATIONS: SINACO ENGINEERS (PVT) LIMITED AKHAI SECURITIES (PVT) LIMITED .494 7.247 1.518 3.(CDC) HAFIZ AVAIS GHANI .930. IMTIAZ AHMAD KHAN .127 3.(CDC) MR. JUNAID GHANI MR.(CDC) NIT & ICP: 1 NATIONAL BANK OF PAKISTAN. CEO THEIR SPOUSES & MINOR CHILDREN: 1 MR.293.484 247. REEMA ANWAAR W/O ANWAAR AHMAD KHAN MRS.071 26 81 50 745 390. JUNAID GHANI . AYESHA AFTAB MR.935.476.ZAHIDA AITZAZ W/O AITZAZ AHMED 7. ANWAAR AHMAD KHAN .059 DIRECTORS.100 11 .396.703 436.819.(CDC) GENRAL INVESTMENT & SECURITIES (PVT) LIMITED .058 691.(CDC) AZEE SECURITIES (PVT) LIMITED .(CDC) FDM CAPITAL SECURITIES (PVT) LIMITED .(CDC) ENERGY INFRASTRUCTURE HOLDING (PVT) LIMITED . RUBINA IMTIAZ W/O IMTIAZ AHMAD KHAN MRS. AITZAZ AHMED GHANI .(CDC) 4 INVESTMENT CORPORATION OF PAKISTAN 91.(CDC) DARSON SECURITIES (PVT) LIMITED .106 393.(CDC) DARSON SECURITIES (PVT) LIMITED . FAROOQ AHMAD KHAN (CDC) MR JUBAIR GHANI MR.848.(CDC) AL-ASAR SECURITIES (PVT) LIMITED .(CDC) 3 IDBP (ICP UNIT) .316. AFTAB AHMAD KHAN MR.000 369 1.900 52 5.(CDC) MR.033 2.(CDC) MRS.538.NI(U)T (LOC) FUND .(CDC) AMIN TAI SECURITIES (PVT) LIMITED .649 7.050 443 1.609.(CDC) HARVEST SMARTREND SECURITIES (PVT) LIMITED .685 1.134. AFTAB AHMAD KHAN .846 4.(CDC) CAPITAL VISION SECURITIES (PVT) LIMITED .546 2.(CDC) FDM CAPITAL SECURITIES (PVT) LIMITED .785 3.829. TRUSTEE DEPARTMENT.527 754.150 3.(CDC) BEAMING INVESTMENT & SECURITIES (PVT) LIMITED .717 948. HAMZA (Nominee Director) MRS.(CDC) 2 3 4 5 6 7 8 9 10 11 12 13 14 MR.453 2.(CDC) MR. FAISAL ESSAM T.(CDC) CAPITAL VISION SECURITIES (PVT) LIMITED .712. ANWAAR AHMAD KHAN MR.(CDC) 2 NBP TRUSTEE .201 2.990 47.(CDC) 79.(CDC) AMCAP SECURITIES (PVT) LIMITED .959 1.(CDC) AMCAP SECURITIES (PVT) LIMITED .320.ANNUAL REPORT 2009 DETAIL OF PATTERN OF SHARE HOLDING AS PER REQUIREMENTS OF CODE OF CORPORATE GOVERNANCE HOLDING ASSOCIATED COMPANIES: 1 JAMIA-TUL-GHANI TRUST 2 GHANI MINES (PVT) LIMITED .
MEEZAN MUTUAL FUND LIMITED .(CDC) MONEYLINE SECURITIES (PVT) LIMITED .955 476.000 25. SECURITIES (SMC-PVT) LIMITED (CDC) MAAN SECURITIES (PVT.000 700 57 1.(CDC) MODARABAS & MUTUAL FUNDS: 1 AL .(CDC) SNM SECURITIES (PVT) LIMITED .(CDC) 32.838 42. LIMITED .000 6 2.500 85.R.ISLAMIC DIVISION . LIMITED (CDC) KAI SECURITIES (PVT) LIMITED . (CDC) 4 CDC . (CDC) VALUE STOCK SECURITIES (PVT) LIMITED .386 250 13 17.(CDC) M.(CDC) 3 HABIB METROPOLITAN BANK LIMITED .(CDC) JAHANGIR SIDDIQUI & CO.) LTD.574 36 2 66 3.(CDC) HIGHLINKCAPITAL (PVT) CDC ISMAIL ABDUL SHKOOR SECURITIES (PVT) LIMITED . (CDC) RAFI SECURITIES (PVT.(CDC) OTHERS COMPANIES: 1 TRUSTEES GHANI GLASS LTD EMPLOYEES PROVIDENT (CDC) 2 CDC .(CDC) 6 TRUSTEES MUHAMMAD AMIN WAKF ESTATE .TRUSTEE UNITED COMMPOSITE ISLAMIC FUND .S.(CDC) 7 TRUSTEES SAEEDA AMIN WAKF .024 5.TRUSTEE JS PENSIN SAVINGS FUND.050 170.005.(CDC) NH SECURITIES (PVT) LIMITED PROGRASSIVE SECURITIES (PVT) LIMITED .700 11 10.(CDC) 3 HABIB INSURANCE CO.768 47.(CDC) Y.605 200 5.950 37.(CDC) 2 EFU LIFE ASSURANCE LIMITED .500 36.000 5 2.) LTD.633.781 230. SECURITIES & SERVICES (PVT) LIMITED .(CDC) MAZHAR HUSSAIN SECURITIES (PVT) LIMITED . (CDC) MAM SECURITIES (PVT) LIMITED .TRUSTEE JS ISLAMIC PENSION SAVINGS FUND.800 395.(CDC) UNIVERSAL EQUITIES (PVT.000 2.877 12 .000.825 262.922 15.TRUSTEE UNITED STOCK ADVANTAGE FUND .(CDC) STOCK MASTER SECURITIES (PVT) LIMITED .922 36. DEVELOPMENT FINANCE INSTITUTIONS.(CDC) INSURANCE COMPANIES: 1 EFU GENRAL INSURANCE LIMITED . (CDC) UNIVERSAL EQUITIES (PVT. NON BANKING FINANCE INSTITUTIONS: 1 BANK ALFALAH LIMITED .(CDC) 5 CDC .(CDC) 2 BANK ALFALAH LIMITED .(CDC) TARIQ SAYEED SECURITIES (PVT) LIMITED .ANNUAL REPORT 2009 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 HUM SECURITIES LIMITED .(CDC) 6.523 85.200 50 105 233 23.625 6.(CDC) MONEYLINE SECURITIES (PVT) LIMITED .) LTD.208 13.(CDC) PRODENTIAL SECURITIES LIMITED.EQUITIES (CDC) 3 CDC .) LTD.600 10.(CDC) PROGRASSIVE INVESTMENT MANAGMENT (PVT) LIMITED . (CDC) SJC PAKISTAN LLC .135 BANKS.
(CDC) MR.608 11.621 During the financial year the trading in shares of the company by the Directors. AFTAB AHMAD KHAN .(CDC) MR.ANNUAL REPORT 2009 FOREIGN COMPAINIES: 1 BROWN BROTHERS HARRIMAN & CO.(CDC) MR.866.439. AFTAB AHMAD KHAN SJC PAKISTAN LLC .354 13.707. ANWAAR AHMAD KHAN MR.(CDC) HAFIZ AVAIS GHANI . MRS.160 17. JUNAID GHANI MR.122 88. IMTIAZ AHMAD KHAN MR.870 SHARES HELD BY THE GENERAL PUBLIC: SHAREHOLDERS HOLDING 10% OR MORE OF TOTAL CAPITAL 1 2 3 4 MR. ANWAAR AHMAD KHAN MR.No 1 2 3 4 5 6 7 8 9 10 11 12 13 NAME MR. IMTIAZ AHMAD KHAN . ANWAAR AHMAD KHAN .147 18.354 6.(CDC) HAFIZ FAROOQ AHMAD .167. IMTIAZ AHMAD KHAN MR. AFTAB AHMAD KHAN MR.196 165.935 362. MRS.574 49.308 247846 237 13 . AYESHA AFTAB MR. AITZAZ AHMED GHANI . [776-6] . CEO.735 134245 101645 165993 26336 138622 62.(CDC) MRS. CFO.318 63810 352.811.279 10.866 104. Company Secretary and their spouses and minor children is as follows: Sr.370 179.524 110.319 45.(CDC) 9. MRS.633. JUNAID GHANI . RUBINA IMTIAZ W/O IMTIAZ AHMAD KHAN REEMA ANWAAR W/O ANWAAR AHMAD KHAN REEMA ANWAAR W/O ANWAAR AHMAD KHAN ZAHIDA AITZAZ W/O AITZAZ AHMED SALE BONUS PURCHASE 377.872.(CDC) 6.(CDC) MR JUBAIR GHANI MRS.902 91.
000 393.500 59.000 2.000 1.001 25.000 400.415.320.708 129.001 945.000 10.000 200.930.001 135.001 2.001 535.000 170.527 691.106 1.649 2.000 1.000 25.453 395.001 510.001 2.000 45.715.546 2.768 436.327 225.000 720.001 690.497 342.273 65.018 158.001 65.001 40.001 85.198 55.158 14 .445.000 30.000 395.160.000 390.400 221.000 70.000.134.685 716.001 1.000.000 60.001 395.165.528 228.000 1.164.001 225.443.000 55.000 1.000 35.130. 2009 Incorporation No: 0029265 Shareholding No.000 440.440.000 2.900 948.001 435.001 90.001 35.201 1.001 390.000 1.105 52.703 1.000 40.001 75.001 1.318 89.000 950.001 15.334 1.001 170.001 900.000 230.001 195.710.000 15.773 900.000 515.000 Total Shares Held 11.325.037 66.426 169.935.000 540.001 45.000 140.001 1.001 660.001 50.001 5.000 80.712.001 1.ANNUAL REPORT 2009 PATTERN OF HOLDING OF SHARES Held by the share holders as at 30th June.408 64.000 5.070.001 715.001 1.000 95.136 511.930.000 20. of Shareholders 302 218 134 262 25 18 4 4 4 2 6 3 2 1 1 1 2 4 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 From 1 101 501 1.245 247.000 90.932 182.001 245.001 To 100 500 1.846 390.502 93.298 164.000 905.000 665.322 1.354 170.000 1.068.001 30.001 1.768 137.899 535.000 1.001 165.065.214 114.001 385.625 199.420.135.440 1.320.848 87.001 995.000 250.000 50.000 1.028 486.000 695.417.000 175.728 662.001 10.001 20.001 55.
633.0072% 0.320.523 2.494 3.000 3.484 2.8 General Public a.630.870 5.000 2.621 56.395.5466% 0.033 3. Categories of shareholders 5. undertakings and related parties.293.935. and their spouse and minor children 5.609.001 17.4 Banks Development Financial Institutions.000 2.000 3.1 Directors.2619% 15 .000 3.ANNUAL REPORT 2009 1 1 1 1 1 1 1 1 1 1 1 1 1.150 3. 5.400.922 0.815.5 Insurance Companies 5.476.058 2.122 0 15.0000% 23. Chief Executive Officers.290.167.000 7.830.000 7.935.225.000 7.811.8553% 2.354 230.190.005.825.220. Local b.6 Modarabas and Mutual Funds 5.858 2.9 Others (to be specified) Joint Stock Companies Foreign Companies Other Companies Share held 47.396.707.4963% 13.001 2.001 3.295.316.000 17. Foreign 5.2977% 0.283 Percentage 53.480. Non Banking Financial Institutions.001 3.635.829.095 0.959 17.195.2 Associated Companies.000 2.000 2.4386% 0.001 2.001 2.7 Share holders holding 10% 5.475.9179% 754.900 7.000 2.57 4 88.610.538.848.0419% 49.059 476.150.877 26.190.717 2.0924% 0.033 2.221.845.850.605.819.001 7.001 7.127 7.315.001 7.001 3.3 NIT and ICP 5.001 2. 5.785 7.001 2.135 6.500 36.5405% 262.940.820.
427 (60.723 (40.086 2.72 639.076.130 2.456 6.230 881.665 570.cash -Bonus shares Total 5.324 1.082.806 3.067 3.378 796.742 280.106.230 6.750.526.436 1.767 1.022 - 1.08 39.644.407 1.501.389.07 34.090 1.745.679 2.854 - 1.046 2008 2007 2006 2005 2004 (Rupees in thousnads) 2.138 475.530 558.878 2.921 2.737.460.404 1.809.30 33.191.336.941 812.406 241.579.229 - 2.105 (22.37 302.319 4.834.002.331.192 3.830 2.541 143.349.26 839.500 72.51 861.11 34.285 3.272 807.798 1.597 373.633 777.372 58.ANNUAL REPORT 2009 STAKEHOLDERS INFORMATION SIX YEARS AT GLANCE 2009 Operating Results Sale Gross profit Profit before tax Financial data Fixed assets Capital work-in-progress Negative goodwill Long term investment/ Advancs.972.048.183.354 2.319 2.580 752.695 8.694 2.537.911 83.885 92.943.714 6.801 3.561.198.161 1.606 49.73 799.806 9.112 1.327 375.916.345) 595.719 1.291 2.265 234.310.644.107 359.281 231.709 1.261.63 30 10 40 20 05 25 20 05 25 30 25 55 25 05 30 10 25 35 16 .156.811 66.224 1.284 2.115 315.048 100.871 166.558.921 817.542 861.243 2.612.082 1.292 135.108 774.729 1.496 4.200 52.811 6.750.075) 151.79 31.225.678 9.500 78.618 2.124.238. and deposits Current assets Current liabilities Assets employed Financed by: Ordinary capital Reserves Shareholders equity Finances and deposits Deferred taxation Funds invested Earnings per share Break-up-value Dividend % .000 36.09 33.090 993.713 2.331.152) 378.156.181 292.187.035 177.456 680.
04 1.05 25.59:1 11.6 1.86 7.ANNUAL REPORT 2009 INVESTOR INFORMATION SIX YEARS AT GLANCE 2009 2008 2007 2006 2005 2004 Gross profit rate Profit before tax rate Inventory turnover ratio Total assets turnover ratio Fixed assets turnover Price earing ratio Return on capital employed Market value per share (at the end of year) Debt:Equity ratio Current ratio Interest cover ratio 29 19 6.49 18.13 0.93 76 1:4 1.78 1.67 0.38 76 1:4.06 26 21 2.65 30 20 6.35 82 1:8 1.78 18.51 22.06 23.80 34 28 2.61 57 1:18 1.90 1.6 15.86 28 20 4.79 1.37 0.75 1.87 15.04 0.74 8.68 12.45 13.86 1.48 25 15 5.04 2.4:1 N/A 74 1:17 3:1 N/A 17 .55 1.29 113 1:5 1:73:1 12.98:1 12.14 27.96:1 9.
800 35% 2009 2008 31% 32% 35% 32% 20% 17% 14% 19% To Employees To Shareholders To Government Retained in business To Employees To Government To Shareholders Retained in business 18 .790.487.637.191.200 32% To Government Tax Workers welfare fund 280.900 1.000 517.000 42.300 329.000 20.000 14% Retained in business Depreciation Retained profit 229.800 554.800 43.800 2008 (Rupees in thousand) Value Distribution To Employees Salaries.480.972.600 31% 188.100 20% 168.000) 78.300 300.000 53.400 475.800 16.487.000 88.000 325.500 285.300 19% To Shareholders Cash dividend Bonus shares 265. wages and amenities Workers profit participation fund 529.700) 92.300 17% 268.800 1.300 1.790.600 3.100 353.400 582.300 1.000 210.400 33% 431.700 (3.ANNUAL REPORT 2009 STATEMENT OF VALUE ADDITION AND ITS DISTRIBUTION 2009 Value Addition Net sales Material and services Other income 5.224 (2.
000 40 500.000.000 500.000 2.000 3.000.000.500.000.000 100 4.000 2004 100.500.000 200.000 1 2 3 4 5 1 2 3 4 5 20 1 2 3 4 5 19 .000 3.500.000 3.000 4.000 1.000 2.000.000 5.000 60 1.000 2007 700.000 1.000 120 3.000.000.500.ANNUAL REPORT 2009 GRAPHIC REPRESENTATION Contribution to National Excehequer (Rs. in million) 30% 54% 16% Direct & Indirect taxes Exports Reduction in import bill NET SALES GROSS PROFIT 2009 PROFIT BEFORE TAX 6.000.500.000 3.000 1.500.000 2009 2008 2007 2006 2005 2003 1 2 3 4 5 1 2 3 4 5 TOTAL ASSETS SHARE HOLDER EQUITY MARKET PRICE OF SHARE 5.000 2006 500.000 2.000 400.000 2008 800.000 1.000.000.000 600.000 80 2.000.000.000 4.000 1.000.500.000 900.000 2005 300.000.000.000 2.
AMBER GHANI CLEAR GHANI GREEN GHANI REFLECTIVE GHANI BROWN 20 .ANNUAL REPORT 2009 PRODUCT RANGE BEVERAGE CONTAINERS .FLINT PHARMACEUTICAL CONTAINERS .GREEN FOOD CONTAINERS .FLINT BEVERAGE CONTAINERS .
21 .ANNUAL REPORT 2009 TECHNICAL FACILITIES GGL-I HATTAR (CONTAINER GLASS MANUFACTURING PLANT) GGL-II LANDHI (CONTAINER GLASS MANUFACTURING PLANT) GGL-III SHEIKHUPURA (FLOAT GLASS MANUFACTURING PLANT) Pakistan’s first state-of-the-art Syno European Technology based Float Glass Plant having capacity of 350 tons / day. capable to produce 2mm to 12mm thickness Float Glass.
2008 22 .2008 Float Glass Division GGL's Stall at Pak Pharma Expo .2008 (Pharmaceutical Glass Division) GGL Float Glass Division's Stall at Iapex .2008 GGL's Dealers’ International Trip .ANNUAL REPORT 2009 Promotional Activities Annual Dealers’ Convention .2008 (Omrah & Dubai) Float Glass Sales Team’s International Tour To Dubai .
Board comprise of five executive and five non-executive directors. All the Directors on the Board are fully conversant with their duties and responsibilities as Directors of corporate bodies through study of pamphlets issued by the SECP and discussion with corporate advisors. being a member of a stock exchange. including this company. Company Secretary and Head of Internal Audit. The minutes of the meetings were appropriately recorded and circulated. by a director elected by the Board for this purpose and the Board met at least once in every quarter. However there is no representation of minority shareholders on the board. It is comprised of three members. The company has applied the principles contained in the Code in the following manner: 1The company encourages the representation of independent non-executive directors and the directors representing minority independent directors on its Board of Directors. The directors. All the powers of the Board have been duly exercised and decisions on material transaction. Some of the directors attended orientation courses. have been taken by the Board. The financial statements of the company were duly endorsed by CEO and CFO before approval of the Board. During the year no casual vacancy occurred in the Board of directors. as determined by the CEO. including their remuneration and terms and conditions of employment. overall corporate strategy and significant policies of the company. has been declared as a defaulter by that stock exchange. Written notices of the Board meetings. The Board has approved appointment of CFO. a DFI or NBFI or. A complete record of particulars of significant policies along with the dates on which they were approved or amended has been maintained. 2345678- 9101112131415- 23 . 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. The Board has developed a vision/mission statement. whereby a listed company is managed in compliance with the best practices of corporate governance. CEO and executives do not hold any interest in the shares of the company other than that disclosed in the pattern of shareholding. The meetings of the Board were presided over by the Chairman and. along with agenda and working papers. The directors have confirmed that none of them is serving as director in more than ten listed companies. The Board has formed an audit committee. in his absence.ANNUAL REPORT 2009 STATEMENT OF COMPLIANCE WITH THE CODE OF CORPORATE GOVERNANCE This statement is being presented to comply with the Code of Corporate Governance contained in listing regulations of stock exchange in Pakistan for the purpose of establishing a framework of good governance. The director's report for this year has been prepared in compliance with the requirements of the Code and fully describes the salient matters required to be disclose. The company has prepared a “Statement of Ethics and Business Practices” which has been signed by all the directors and employees up to the level of Managers of the company. were circulated at least seven days before the meeting. two of them are non-executive directors. including appointment and determination of remuneration and terms and conditions of employment of the CEO and other executive directors. The Company has complied with all the corporate and financial reporting requirements of the Code.
ANNUAL REPORT 2009 161718- 1920- 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 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. 2009 24 . For and Behalf of the Board of Directors Aftab Ahmad Khan Director Imtiaz Ahmad Khan Chief Executive Officer Lahore: September 29. that they or any of the partners are in compliance with the International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by Institute of Chartered Accountants of Pakistan. The statutory auditors or the persons associated with them have not been appointed to provide other services except in accordance with 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. The terms of reference of the committee have been formulated and advised to the committee for compliance. The Board has earlier set up an internal audit function which is being further strengthened to enhance its effectiveness.
As part of our audit of financial statements 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. LAHORE (KPMG TASEER HADI & COMPANY) CHARTERED ACCOUNTANTS (Bilal Ali) 25 . nothing has come to our attention which causes us to believe that the Statement of Compliance does not appropriately reflect the Company's compliance.37) notified by The Karachi Stock Exchange (Guarantee) Limited vide circular KSE/N-269 dated 19 January 2009 requires the Company to place before the Board of Directors for their consideration and approval related party transactions distinguishing between transactions carried out on terms equivalent to those that prevail in arm's length transactions and transactions which are not executed at arm's length price recording proper justification for using such alternate pricing mechanism. Further. Further. We are only required and have ensured compliance of requirement to the extent of approval of related party transactions by the Board of Directors and placement of such transactions before the audit committee. We have not carried out any special review of the internal control system to enable us to express an opinion as to whether the Board's statement on internal control covers all controls and the effectiveness of such internal controls. Our responsibility is to review. A review is limited primarily to inquires of the company personnel and review of various documents prepared by the company to comply Code. 2009. The responsibility for compliance with the Code of Corporate Governance is that of the Board of Directors of the company. Based on our review. to the extent where such compliance can be objectively verified. Sub-Regulation (xiii a) of Listing Regulation No. as applicable to the Company for the year ended June 30. whether the Statement of Compliance reflects the status of the company's compliance with the provisions of the Code of Corporate Governance and report if it does not.ANNUAL REPORT 2009 REVIEW REPORT TO THE MEMBERS ON STATEMENT OF COMPLIANCE WITH BEST PRACTICES OF CODE OF CRPORATE GOVEREANCE 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 GHANI GLASS LIMITED (“the Company”) to comply with the Listing Regulations of Karachi and Lahore Stock Exchanges. in all material respects. We have not carried out any procedures to determine whether the related party transactions were under taken at arm's length. all such transactions are also required to be separately placed before the audit committee.35(previously Regulation No. with the best practices contained in the Code of Corporate Governance.
and In our opinion.1984 and are in agreement with the books of account and are further in accordance with accounting policies consistently applied. 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 misstatements. were necessary for the purposes of our audit. 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. 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. b. Our responsibility is to express an opinion on these statements based on our audit. c. in the manner so required and respectively give a true and fair view of the state of the company's affairs as at June 30. on a test basis. 1984. In our opinion and to the best of our information and according to the explanations given to us. profit and loss account. We believe that our audit provides a reasonable basis for our opinion and. evaluating the overall presentation of the above said statements. It is the responsibility of the company's management to establish and maintain a system of internal control. An audit includes examining. the balance sheet. 1980 (XVIII of 1980). 1984.ANNUAL REPORT 2009 AUDITOR'S REPORT TO THE MEMBERS We have audited the annexed balance sheet of GHANI GLASS LIMITED (“the company”) as at June 30. 2009 and the related profit and loss account. 2009 and of the profit. proper books of account have been kept by the company as required by the Companies Ordinance. ii) the expenditure incurred during the year was for the purpose of the company's business and . iii) the business conducted. cash flow statement and statement of changes in equity together with the notes forming part thereof. 1984. (KPMG TASEER HADI & COMPANY) CHARTERED ACCOUNTANTS (Bilal Ali) d. evidence supporting the amounts and disclosures in the above said statements. and. its cash flows and changes in equity for the year then ended. was deducted by the company and deposited in the Central Zakat Fund established under section 7 of that ordinance. we report that a. Zakat deductible at source under the Zakat and Ushr Ordinance. LAHORE 26 . give the information required by the Companies Ordinance. for the year then ended and we state that we have obtained all the information and explanations which. 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. to the best of our knowledge and belief. in our opinion. We conducted our audit in accordance with the auditing standards as applicable in Pakistan. as well as. after due verification. An audit also includes assessing the accounting policies and significant estimates made by management.
ANNUAL REPORT 2009 27 .
811.340) 1.729.228 (151.910) 807.08 2008 Rupees 3.006) 878.659.223.606.183.298) (234.801.277) 92.393 (268.511.284.665.net Cost of sales Gross profit General and administrative expenses Selling and distribution expenses Other operating expenses Other operating income Operating profit Finance cost Share of loss of associate Profit before taxation Taxation Profit after taxation Earnings per share .916) 1.788.692 (280.740) (56.111) 78.Basic and diluted 33 32 31 16 27 28 29 30 25 26 Rupees 5.959.990.480) 712.144 (3.398.972.208) (221.115 (93.309 (115.761.ANNUAL REPORT 2009 Ghani Glass Limited Profit and Loss Account For the year ended 30 June 2009 2009 Note Sales .951.980 (304.761.387 6.191.649 (2.272. Lahore: _____________ Chief Executive _______ Director 28 .11 The annexed notes 1 to 41 form an integral part of these financial statements.917.042.526.873.424.683) 993.006) 538.113) 1.515 (383.143.097.501) (59.869.523.212 8.638.543.303 (70.090.048.325.219) (75.
190.482.342) (495.net Ijarah finances .750.ANNUAL REPORT 2009 Ghani Glass Limited Cash Flow Statement For the year ended 30 June 2009 Note 2009 Rupees 2008 Rupees Cash flows from operating activities Cash generated from operations Finance cost paid Provident fund payments Workers profit participation fund paid Income tax paid Net cash generated from operating activities Cash flows from investing activities Fixed capital expenditure Proceeds from sale of fixed assets Investments Long term deposits Long term advance Net cash used in investing activities Cash flow from financing activities Loan from sponsors .113 596.149.net Morabaha finances .447 (59.263 (67.381.net Diminishing musharika Dividend paid Security deposits Net cash used in financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year The annexed notes 1 to 41 form an integral part of these financial statements.650.926) (279.841.368 (96.769) (613.715.000 (160.376) (126.96.36.199.405.039 (159.909.591) 12.264.528.227.851 (613.567.575.933) (15.312) (32.133.130) (378.085.555) (13.000 (691.626 (702.466.907.885.193) 47.115) (496.482.830.284) (18.685) (45.721) 44.859.731.719) (9.288.753) (89.058.707.823.407) 20.311) 143.000 (140. 37 1.096.000.499.178.585.517.661.596) 474.207.089 24 34.190.507) (121.480) (57.029) 1.045.914) (22.905 44.695.980) (2.306.816) 133.572) 1.691.000) (3.142 (107.551) (2.089 Lahore: _____________ Chief Executive ________ Director 29 .150) 42.
290 75.419.714) 538.ANNUAL REPORT 2009 Ghani Glass Limited Statement of Changes in Equity For the year ended 30 June 2009 Revenue Capital reserve Share capital Merger reserve Share premium reserve Uappropriated profit Total (-------------------------------------------.000.419.419.761.985.700) 712.000 (159.761.714) (39.800) 712.985.460.800) (41.984.772.870.000 (167.290 75.000.984. 2 per share for the year ended 30 June 2007 Bonus shares issued @ 5% for the year 2007 Net profit for the year Balance as at 30 June 2008 Final cash dividend @ Rs.536.941.700 881.301 799.000.990.990.916.430 839.713 39. 2 per share for the year ended 30 June 2008 Bonus shares issued @ 5% for the year 2008 Net profit for the year Balance as at 30 June 2009 41.628 The annexed notes 1 to 41 form an integral part of these financial statements.000 1.935. ______________ Lahore: Chief Executive _______ Director 30 .708.700 427.678.723 (167.938.212 3.Rupees --------------------------------------) Balance as at 01 July 2007 Final cash dividend @ Rs.694.290 75.000 427.768 2.430) 538.234.871.387 1.570 427.941.999.048.011 (159.387 2.076.573.938.212 2.
The amendment is not likely to have an effect on Company’s financial statements other than certain increased disclosures only. 2009 revises the existing IAS 1 and requires apart from changing the names of certain components of financial statements. The registered office of the Company is located at 50 . The Company is engaged in the business of manufacturing and sale of glass containers and sheet glass of different types. 2. Adoption of this standard has resulted in additional disclosures given in note 41 to the financial statements. 31 . Wherever. and how the company manages those risks. Approved accounting standards comprise of such International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board as are notified under the provisions of the Companies Ordinance. 1984 and is listed on Karachi and Lahore Stock Exchanges. 2 Statement of compliance 2. Lahore. Model Town Extention.L. Interpretations and amendments to published approved accounting standards Effective in current year IFRS 7 . the requirements of the Companies Ordinance. and nature and extent of risk arising from financial instruments to which the company is exposed during the year and at the end of the reporting period. presentation of transactions with owners in statement of changes in equity and with non-owners in comprehensive Income Statement.1 These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. 1984."Financial Instrument : Disclosures". 1984 shall prevail. Amendment to IFRS 7 .ANNUAL REPORT 2009 Ghani Glass Limited Notes to the financial statements For the year ended 30 June 2009 1 Legal status and nature of business Ghani Glass Limited ('the Company') was incorporated in Pakistan in 1992 as a limited liability company under the Companies Ordinance. 1984 differ.Improving disclosures about Financial Instruments (effective for annual periods beginning on or after 1 January 2009). Adoption of the above standard will only effect the presentation of financial statements. The amendments introduce a three-level hierarchy for fair value measurement disclosures and require entities to provide additional disclosures about the relative reliability of fair value measurements. 1984 or directives issued under the Companies ordinance. the provision or directives of the Companies Ordinance. requires extensive disclosures about the significance of the financial instruments for the Company's financial position and performance. Relevant but not yet effective IAS 1 “Presentation of Financial Statements” effective for annual periods beginning on or after January 01.2 Standards.
amendments and interpretations to approved accounting standards. Actual results may differ from these estimates. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. income and expenses.18 32 . estimates and assumptions that affect the application of polices and reported amount of assets and liabilities. Judgments made by management in the application of approved accounting standards that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are Note residual value and useful lives of depreciable assets provision for taxation retirement and other benefits provisions and contingencies 3. International Accounting Standards Board made certain amendments to existing standards and interpretations as part of its first and second annual improvements projects.Hedges of a Net Investment in a Foreign Operation IAS 1- In addition to above.Financial instruments: Presentation and consequential amendment to Presentation of Financial Statements IFRIC 15 .Borrowing costs IFRS 2 (amendment) . These amendments are unlikely to have impact on the company's financial statements.Share based payments IFRS 3 (amendment) . Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period.Business Combinations IFRS 8 .13 3. 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.1 3. The estimates and underlying assumptions are reviewed on an ongoing basis.Consolidated and separate financial statements IAS 32 (amendment) . effective for accounting periods beginning on or after 1 July 2009 are either not relevant to the Company's operations or are not expected to have significant impact on the Company's financial statements other than certain increased disclosures only: - Revised IAS 23 .Agreements for the Construction of Real Estate IFRIC 16 .17 3. or in the period of the revision and future periods if the revision affects both current and future periods. The preparation of financial statements in conformity with approved accounting standards requires management to make judgments. 3 Significant accounting policies These financial statements have been prepared under the historical cost convention except for certain financial assets and liabilities which are re-measured at their fair values and foreign currency translations.ANNUAL REPORT 2009 Not Relevant and not yet effective The following standards.Operating Segments IAS 27 .
Depreciation methods. net of finance costs. plant and equipment except freehold land are stated at cost less accumulated depreciation and any identified impairment loss.3 Ijara finances Ijara where the lessor has substantially transferred all the risks and rewards of ownership are classified as Ijara finance. plant and equipment Property. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset. Profit or loss on disposal of operating fixed assets represented by the difference between the sale proceeds and the carrying amount of the asset is recognized in income or expense. 3.ANNUAL REPORT 2009 The significant accounting policies adopted in the preparation of these financial statements are set out below. Freehold land is stated at cost less any identified impairment loss. The interest element of the rental is charged to profit over the Ijara term. The rental obligation.2 Capital work in progress Capital work in progress and stores held for capital expenditure are stated at cost less any identified impairment loss and represents expenditure incurred on property. while no depreciation is charged for the month in which the asset is disposed off. unless otherwise stated.1. Cost also includes applicable borrowing costs.1 Property. Depreciation on additions to property. are included in liabilities against assets subject to Ijara finance as referred to in note 6. Depreciation on all property. plant and equipment is charged from the month in which the asset is acquired or capitalised. plant and equipment during the construction and installation. Each Ijara payment is allocated between the liability and the finance costs so as to achieve a constant rate on the balance outstanding. 3. plant and equipment is charged to income using "reducing balance method" so as to write off the historical cost of an asset over its estimated useful life at the rates mentioned in note 15. All other repair and maintenance costs are charged to income during the period in which they are incurred. The liabilities are classified as current and long term depending upon the timing of the payment. plant and equipment category as and when assets are available for use. These policies have been consistently applied to all the years presented. only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. 3. At inception Ijara finances are capitalized at the lower of present value of minimum Ijara payments under the Ijara agreements and the fair value of the assets. as appropriate. Transfers are made to relevant property. residual values and the useful lives of the assets are reviewed at least at each financial year end and adjusted if impact on depreciation is significant. 33 .
ANNUAL REPORT 2009 Assets acquired under a finance Ijara are depreciated over the useful life of the assets on reducing balance method at the rates given in note 15. Investments at fair value through profit or loss are initially recognized at cost. 3. Any surplus or deficit on revaluation of investments is charged to income currently. residual value and useful lives of ijara assets are reviewed atleast at each year end and adjusted if impact on depreciation is significant. Investments in associates are accounted for using the equity method of accounting and are initially recognised at cost. The Company’s share of its associates’ post acquisition profits or losses is recognised in the income statement. which are valued at cost comprising invoice value plus other charges paid. including any other unsecured receivables. 3. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment Investments at fair value through profit and loss account Investments that are acquired principally for the purpose of generating profit from short term fluctuations in price or dealer's margin are classified as held for trading. Net realizable value signifies the estimated selling price in the ordinary course of business less cost necessarily to be incurred to make the sale.6 Stock-in-trade These are valued at the lower of cost and net realizable value except for stock in transit. spares and other consumables These are valued at lower of cost and net realizable value.5 Stores. Transaction costs are charged to profit and loss. 34 .1. When the Company’s share of losses in an associate equals or exceeds its interest in the associate.4 Investments Investment in associate Associates are all entities over which the Company has significant influence but not control. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. The investments for which quoted market price is not available are measured at cost. if any. being the fair value of the consideration given. Subsequent to initial recognition these are recognized at fair value unless fair value can not be reliably measured. Cost is determined at weighted average except items in transit which are valued at cost comprising invoice value plus other charges paid thereon. Unrealised gains on transactions between the Company and its associates are eliminated to the extent of the Company’s interest in the associates. the Company does not recognise further losses. and its share of post-acquisition movements in reserves is recognised in reserves. The Company’s investment in associates includes goodwill (net of any accumulated impairment loss) identified on acquisition. unless it has incurred obligations or made payments on behalf of the associate. Depreciation on additions to Ijara assets is charged from the month in which an asset is acquired while no depreciation is charged for the month in which the asset is disposed off. Depreciation method. Items considered obsolete are carried at nil value. Provision is made in the financial statements for obsolete and slow moving items of stores and spares based on management estimates. 3. Depreciation on Ijara assets is charged to profit and loss account.
Other liabilities are stated at their nominal value.10 Cash and cash equivalents Cash and cash equivalents are carried at cost in the balance sheet. trade and other payables and dividends payable. Any gain or loss on derecognition of the financial assets and financial liabilities is taken to income currently. musharika and morahaba finances. long term deposits and cash and bank balances. Financial liabilities are derecognized when they are extinguished i. Significant financial liabilities include short and long term ijara finances. Bad debts are written off when identified.e. 35 . cancelled or expires. 3. Markup based financial liabilities are recorded at gross proceeds received. Finances and receivables from clients are stated at their nominal value as reduced by provision for doubtful finances and receivable. while other financial assets are stated at cost. when the obligation specified in the contract is discharged. 3. 3. if any. Provision is made in the financial statements for obsolete and slow moving items of stock-in-trade based on management estimates.8 Trade debts Trade debts are carried at original invoice amount less an estimate made for doubtful debts based on a review of all outstanding amounts at the year end. For the purpose of cash flow statement cash and cash equivalents comprise cash in hand and with banks. Financial assets are derecognized when the Company looses control of the contractual rights that comprise the financial assets. Financial liabilities Financial liabilities are classified according to the substance of the contractual arrangements entered into. Offsetting of financial assets and financial liabilities A financial asset and a financial liability is offset and the net amount is reported in the balance sheet if the Company has legal enforceable right to set off the recognized amount and intends either to settle on a net basis or to realize the assets and settle the liability simultaneously.ANNUAL REPORT 2009 Cost is determined as follows: Raw and packing materials Work-in-process Finished goods At weighted average cost At weighted average cost and related manufacturing expenses At weighted average cost and related manufacturing expenses Net realizable value signifies the estimated selling price in the ordinary course of business less cost necessarily to be incurred to make the sale.7 Financial instruments Financial assets Significant financial assets include advances and receivables. Recognition and derecognition All the financial assets and financial liabilities are recognized at the time when the Company becomes party to the contractual provisions of the instrument.
If any such indication exists.14 Revenue recognition Revenue represents the fair value of the consideration received or receivable for goods sold. The charge for current tax is calculated using prevailing tax rates or tax rates expected to apply to profit for the year if enacted after taking into account tax credits. 3. whether or not billed to the Company. A reversal of the impairment loss is recognized in income. Deferred tax assets and liabilities are calculated at the rates that are expected to apply to the period when the asset is realised or liability is settled.13 Taxation Current Provision of current tax is based on the taxable income for the year determined in accordance with the prevailing law for taxation of income. 3. the carrying amount of such asset is increased to the extent that it does not exceed the carrying amount that would have been determined.11 Impairment The carrying amount of the assets except for inventories are reviewed at each balance sheet date to identify the circumstances indicating the occurrence of impairment loss or reversal of previously recognised impairment losses. net of depreciation and amortization. and the associated cost incurred. Deferred tax is charged or credited in the income statements except in the case of items credited or charged to equity in which case it is included in equity. Where an impairment loss subsequently reverses. or to be incurred.12 Trade and other payables Liabilities for creditors and other amounts payable are carried at cost which is the fair value of the consideration to be paid in the future for the goods and services received. to provision for tax made in previous years arising from assessments framed during the year for such years. where considered necessary. if any. the recoverable amount of such asset is estimated. Deferred Deferred tax is accounted for using the balance sheet liability method in respect of all temporary differences arising from differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of the taxable profit. can be measured reliably.ANNUAL REPORT 2009 3. unused tax losses and tax credits can be utilized. rebates and exceptions. The charge for the current tax also includes adjustments. Revenue is recognized when it is probable that the economic benefits associated with the transaction will flow to the Company and the amount of revenue. A cash-generating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets and groups. if no impairment loss has been charged. net of discounts and sales tax. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which the deductible temporary differences. 36 . 3. An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. based on tax rates that have been enacted or substantively enacted by the balance sheet date.
3. However.17 Employees retirement benefit Defined contribution plan The Company operates funded contribution provident fund scheme for all its permanent and eligible employees.20 Dividend Dividend distribution to the Company's shareholders is recognised as a liability in the period in which the dividends are approved. interest and other charges are charged to profit in which they are incurred. 3. 3. Dividend income is recognized when right to receive such dividend is established Technical fee is recognized on time proportionate basis.ANNUAL REPORT 2009 Revenue from sale of goods is recognised when the significant risks and rewards of ownership of the goods have been transferred to the buyer i. subject to approval of the Board of Directors. Equal monthly contributions are made both by the Company and the employees at the rate of 8. Exchange gains and losses are included in the income currently.19 Borrowing costs Mark-up. it is in the interest of the Company to do so. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated into rupees at exchange rates prevailing at the date of transaction. Prices for transactions with related parties are determined using admissible valuation methods. plant and equipment acquired out of the proceeds of such borrowings. except in extremely rare circumstances where. For the purpose of scheme. 3. 37 . 3. 3. interest and other charges on borrowings are capitalised upto the date of commissioning of the related property.15 Related party transactions The Company enters into transactions with related parties on an arm's length basis. Non-monetary assets and liabilities denominated in foreign currency that are stated at fair value are translated into rupees at exchange rates prevailing at the date when fair values are determined. a separate Trust has been established.33 percent of the gross salary. on the dispatch of goods to the customer.16 Foreign currency transactions All monetary assets and liabilities in foreign currencies are translated into rupees at exchange rates prevailing at the balance sheet date.18 Provision Provisions are recognized when the Company has a legal or constructive obligation as a result of past events and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount can be made. Transactions in foreign currencies are translated into rupees at exchange rates prevailing at the date of transaction.e. provisions are reviewed at each balance sheet date and adjusted to reflect current best estimate. All other mark-up.
470 88. 10 each 83.135) Ordinary shares of Rs.772.350 327. 38 .064 ordinary shares of Rs.970.650 149.421. 10 each to the shareholders of former Ka'as ul Musaf'fa Private Limited and 32.265) Ordinary shares of Rs.350 881.757.500. 10 each issued under the scheme of amalgamation 4.000 369.258.056) ordinary shares of the Company are held by Jamia Tul Ghani Ul Islam.975. Number of shares 2009 2008 4.198.543 83.135 (2008: 36.167.950. associated undertakings.400 4.3 17.857 3.678.694.700 4.735 (2008: 32.1 362.421.ANNUAL REPORT 2009 Note 2009 Rupees 2008 Rupees 4 Issued.500. 10 each issued as fully paid bonus shares 36.000 (2008: 14.2 Reconciliation of ordinary shares Opening balance of ordinary shares of Rs.984. the Company has issued 3.969.000) Ordinary shares of Rs.242.870 79.209 (2008: 83.880) ordinary shares of the Company are held by SJC Pakistan LLC and 87.777.1 362. subscribed and paid up capital 14.574 (2008: 16.400 4.633.793.071 ordinary shares of Rs.242. 10 each to the shareholders of the former Ghani Float Glass Limited in accordance with the scheme of amalgamation. 10 each Bonus shares issued during the year Closing balance of ordinary shares of Rs.950.000 149.969.350 839.000 In accordance with the scheme of amalgamation. 10 each fully paid in cash 36.998.
ANNUAL REPORT 2009
Note 2009 Rupees 2008 Rupees
Merger reserves Share premium Revenue
427,419,290 75,000,000 502,419,290
427,419,290 75,000,000 502,419,290
This represents the amount arising under the scheme of amalgamation of Ghani Float Glass Limited with the Company.
This reserve can be utilised by the Company only for the purposes specified in section 83(2) of the Companies Ordinance, 1984.
Note 6 Ijara finances - secured Present value of minimum lease payments Less: current portion shown under current laibilities
54,228,398 35,602,853 18,625,545 2009
69,710,528 28,017,235 41,693,293
Minimum ijara payments
Finance cost for future periods
(------------------------- Rupees -------------------------)
Not later than one year Later than one year but not later than five years
ANNUAL REPORT 2009
2008 Finance cost for future periods
Minimum ijara payments
(------------------------- Rupees -------------------------)
Not later than one year Later than one year but not later than five years
28,631,852 49,246,326 77,878,178
614,617 7,553,033 8,167,650 2009 10.36% - 16.18% 36 months 10%
28,017,235 41,693,293 69,710,528 2008 6.25% to 14.10% 36 months 10%
Salient features of ijara financing are as follows: Discounting factor Period of ijara financing Security deposit
The Company has executed Ijara agreements with various financial institutions. The liabilities are repayable in a mix of monthly and quarterly instalments. The markup rates are used as discounting factors to determine present value of minimum lease payments, These are secured against title of fixed assets under Ijara financing and personal guarantees of the directors of the Company.
Note 7 Diminishing Musharika Diminishing musharika Less: current portion
20,000,000 6,666,668 13,333,332
It represents diminishing musharika facility from Meezan Bank Limited for acquisition of land. The term of the agreement is 4 years with grace period of one year and the repayments shall be made in equal quarterly basis starting from 27 September 2009. It carries markup at the rate of 3 months KIBOR plus 1.5%. It is secured against exclusive charge over underlying asset with 25% margin and personal guarantees of Chairman and CEO of the Company 8 Security deposits These are the interest free security deposits obtained from transport contractors and are being utilized in accordance with the terms of agreement.
ANNUAL REPORT 2009
2009 Rupees 2008 Rupees
Note 9 Deferred taxation Deferred tax liability comprises of the following: Deferred tax liability arising in respect of tax depreciation allowances Deferred tax asset arising on provision for doubtful debts Deferred tax liability arising on ijara assets Deferred tax asset arising on share of loss of associate
315,389,745 (2,210,359) 67,983,072 (5,665,968) 375,496,490
268,636,426 (359,254) 46,789,361 315,066,533
Current portion of non current liabilities Ijara finances Diminishing musharika 6 7 35,602,853 6,666,668 42,269,521 28,017,235 28,017,235
Short term morabaha financing - secured Secured Mark-up rate 2009 Rupees 2008 Rupees
I II III IV
Albaraka Bank Limited Bank Alfalah Limited Bank Islami Pakistan Limited Habib Metropolitan Bank Limited
Respective period KIBOR plus 2.5% with a floor of 16% Six months KIBOR plus 1% to 3% Six months KIBOR plus 0.3% Respective period KIBOR plus 0.5% to 2.5% with a floor of 10.50%
26,620,383 5,027,437 171,367,728 43,636,100
V VI VII
MCB Bank Limited Meezan Bank Limited Soneri Bank Limited
One year KIBOR plus 0.4% to 1.15% Respective period KIBOR plus 0.75% to 2.5% Six month KIBOR plus 0.75%
54,691,268 16,686,000 109,567,030
51,785,570 96,526,054 92,700,165 487,663,437
Total Morabaha finance facilities available amount to Rs. 1,320 million (2008: Rs. 1,275 million). These are secured by first pari passu charge over all present and future current assets, stocks, book debts and fixed assets and through personal guarantees of all directors of the Company.
Loan from sponsors It represents interest free loan from sponsors and is repayable on demand.
743 9.362 794.2.015. 42 .853.ANNUAL REPORT 2009 2009 Note 13 Trade and other payables Rupees 2008 Rupees Creditors for goods and services Advances from customers Accrued expenses Income tax deducted at source Security deposits Retention money Workers' profit participation fund Workers' welfare fund Sales tax payable Unclaimed dividend Provident fund payable 13.295 31.675.719.552 109.892.500 3.694 34.1 2.025 88.559.559.221 468.729 5. 0.857 2.1 448.1.500 3. there are no common directors and therefore Ghani Mines (Private) Limited is not an associated undertaking.4 51.349.977 313.005 13.194.330.552 2.1 Ghani Mines (Private) Limited was a related party to the Company on the basis of common directorship.952.510.796 86.31 million) payable to related parties.719.425.759 16.1 Creditors include an amount of Rs.080.460 13.488.481 203.106 1. As at 30 June 2009.478.247.930.270 93.485.3 13.785 10.458 13.1.596.768 121.670.560 million (2008: Rs.005 30.732 4.458.019 720.274. Particulars of the amounts due to related parties are as follow: 2009 Note Rupees 2008 Rupees Ghani Value Glass Limited Ahmad Brothers & Company Ghani Mines (Private) Limited 13.052 1.2 400.444 400.207 13.
510.980) (2.951 31.743 (9.615.194.4 Workers' welfare fund Opening balance Allocation for the year Less: Payments made / reversed during the year Closing balance 16.591 16. 2009 Rupees 2008 Rupees 13. 160.295 32. the management expects favourable outcome.759 53.ANNUAL REPORT 2009 13.594.080.446) 30.485. Letters of credit for import of materials and stores outstanding as at balance sheet date amounted to Rs. Commitments 14.2 43 .870.779 million). 93.345.661.043 (32. 177.841. No provision has been recorded in these financial statements against this tax demands as based on legal opionion of the tax advisor.485.271.485.504 on account of capital gane and amortisation of goodwill . 14.383.743 20.458.510.676.534 (45.3 Workers' profit participation fund Opening balance Provision for the year Less: Payments made during the year Closing balance 30.925.759 13.536 51.1 Aggregate amount of bank guarantees issued by banks outstanding as at balance sheet date amounted to Rs.694 9. 205.743 14 Contingencies and commitments Contingencies The Company has filed an appeal before the CIT (Appeals) against the assessment order passed by the taxation officer for the tax year 2006 raising an additonal tax demand of Rs.950 million (2008: Rs.2 These are the interest free security deposits obtained from various contractors and are being utilized in accordance with the terms of agreement.591) 6. 255.089 million).165) 14.615.152 16.969.507) 20.205 43.050 million (2008: Rs.116 (5.683.
851 7.306 462.528 314.918 30.500 (4.773.420 897.543 3.918 (4.508.120.673.000 304.707.4 2009 Rupees 2.605.528 314.612 33.685.696.095.578 32.359 44 .501.875 10 .225.875 9.528 195.100) 188.8.131.52 996.795 636.034 (6.709.628 11.192.723 3.081 389.310 3.773.231 211.486 92.745.184 215.420 897.897.652 33.603 33.005 8.482.541.608.361.1 Operating assets Cost As at Additions Disposals As at 1 July during during 30 June 2008 the year the year 2009 (------------------------------------Rupees---------------------------------) Owned Freehold land Building on freehold land Plant and machinery Furnace Tools and office equipment Electrical equipment Furniture and fixtures Vehicles Ijarah Plant and machinery Furnace Vehicles 2009 304.239 223.153 605.326.585 (573.171.227 2.926 3.066.114 9.838.390 16.624 2.195 1.197.780 1.106 586.311.204 18.501.427.882 433.154 6.522 125.380.932 106.029.520.415 401.954.196.346 653.158.310 3.606 8.585 173.272 519.486 92.485 462.573 26.053 26.427.095.581 1.851 7.858.308.079) 3.308 3.406.304.412 25.765 188.516.333 3.853 805.10 10 10 10 10 20 98.929 292.304.691 232.764.160.789 49.773.620 3.242.536.480 4.171.955.616. plant and equipment Note Operating assets Capital work in progress 15.183.549.659 2.306 462.308.420 2.635.819 97.142 173.316.228.523.000 9.768.556.939.584) 139.596.071.357.115.069.283.576 7.698.628.134 323.262.466.315 10.756 90.501.925 57.052 461.998 5.554.390 46.490 327.000 478.532 106.128 3.873 917.723 3.966.709.850 10 7.661 2.415 384.765.225.100) 33.957) 80.765.992 29.079) 59.628.056 519.226 3.081 519.583.270.342.500) 38.361.225.764.121.628 11.079) 3.454.516.282 9.100) (4.773.984.791.723 (13.221.359 2.242.832.261.242.619 1.260.488.258 519.359 15.165.545.636.736 22.687 346.565.948.647.623.834.779.654.081 1.189.638.939 1.788.803 540.282 9.190.778.975.053 26.071 97.022.304.337.ANNUAL REPORT 2009 15 Property.806.939.351 134.862.390 46.292.629 10 (6.439 7.539.2 Cost As at 1 July 2007 Owned Freehold land Building on freehold land Plant and machinery Furnace Tools and office equipment Electrical equipment Furniture and fixtures Vehicles Ijarah Plant and machinery Furnace Vehicles 2008 297.142 475.728 119.685.918 33.890 784.474.258.628.084) 196.523.232 229.239 22.652 1.598 14.522.904 1.386 385.297 (5.333 3.568 2.089.989.022.171.272 155.000 17.760.081.1 15.734.158.789 44.998 (3.709.095 -6.949 6.808.975.195.849.315 640.307.393 (4.556.357.245.316.181.503.471.380.563.297 10 13.261.014 1.624 3.282 8.313.628 8.543 3.982 1.549.893 275.757 2.111.621 26.276.503.730 20 (13.709.258.832.406.655 712.196 Depreciation Net book As at As at value as at 1 July For the On 30 June 30 June 2008 year disposals 2009 2009 (-----------------------------------------------Rupees------------------------------------------) Rate % 184.108.40.206.085 72.342.246.315 11.000) 752.221.577.083.789 49.762 35.430 (3.973.051 27.290.821 3.957) 119.494.000 318.680.323.628.311.895.267 135.408 2.926 2008 Rupees 2.466.233 583.234 38.788.303 2.812 Additions during the year Disposals during the year As at 30 June 2008 Rate % As at 1 July 2007 Depreciation As at For the year On disposals 30 June 2008 Net book value as at 30 June 2008 (------------------------------------Rupees---------------------------------) (-----------------------------------------------Rupees------------------------------------------) 20.216.065.181.321.282 10 10.772 10 190.968.364.796.333.186 30.819 19.304.081.415 384.840 16.503.681.762 1.374.055.764.541.918 33.122.451 10 10 20 80.036 33.375.519.146 475.853 805.022.957) 24.501.932 2.246.757 2.519.315 11.183 4.113.584) 103.011 10 130.834 59.598 10 10 20 55.999 1.984.562.134 183.261.337.994.816.390 49.288.371.282.111 (3.765.907 288.824.529 (5.
893 135.175 505.000 271.609. Mahmood Ali Siddiqui Mr.779 12.000 355.143 1.500 265.857 2009 Note 15.726 133.915 229.079 2009 13.673.242.494 130.200 875.989.932253.500 6.000 45 .079 4.000 Vehicles Hyundai Shehzore Kia Spectra Mercedes Benz Van Suzuki Bolan Suzuki Khyber Suzuki Khyber Suzuki Pickup 2008 535.834 180.519 58.862.000 145.401.761 1.155 309.813 523.000 8.000 3.228.659 Rupees 2008 Rupees Negotiation Negotiation Negotiation Negotiation Negotiation Negotiation Negotiation Habib Ullah M.823.000 1.084 361.553 1.957 397.167 78.000 1.799 490.930 482.068 117. plant and equipment Particulars Cost Accumulated depreciation Written down value Sale proceeds Profit Mode of disposal Particulars of buyer (----------------------------------------Rupees-------------------------------------) Plant & Machinery Diesel Generator Vehicles Suzuki Khyber Kia Spectra Honda Civic Honda Civic Suzuki Margalla Toyota Corolla Honda City Toyota Corolla Honda Civic 459.000 525.833 276.330 31. Naseer Ahmed Mr.246.323 15.104 637.426.750.000 186.000 335.000 440.074 354.100 3.000 290.726 440.670 303.258.500 4.500 225.000 930.926 95.500 656.750.000 62.500.640. Ashraf 32.000 286.571 1.500 78.525.929 865.111 15.098.000 459.065.030.291 1.738.000 14.747 125. M.481 86.599 168.011.000 738. Raheel Farooq Khan Mr. Aslam M.000 213.283.845 135.401 475.571 188.776 160.478.600 434.112 369.187 240.556.584 12.068 258.813 49.ANNUAL REPORT 2009 2009 Note 15.000 3.272 323.2 Depreciation charge for the year has been allocated as follows: Rupees 2008 Rupees Cost of sales General and administrative expenses Selling and distribution expenses 26 27 28 212. Kashif Mohammad Bashir Naseer Ahmed Meher M.926 575.000 573.081 375.888 164. Nauman Shaukat Mr.550.428 379.000 764. Ali Shan Mr.505 Negotiation Negotiation Negotiation Negotiation Negotiation Negotiation Negotiation Negotiation Negotiation Mr.975.250.724 198.500 Negotiation Alhamd International 180.503.000 403.005 4.166 456.447 250. Fida Hussain Mr.342.274 603.299.995 175.071 1.570.000 430.3 Disposal of property.112 265.000 45.500 6.495 5.529 174. Shahid Mr.000 41.4 Capital work in progress Plant & machinery Civil works Stores held for capital expenditure 4.000 450.937 558. Izhar Mian 6. Riaz M.600 786.276 1.084.655 89.500 9. Imran Ali Mr.253 314.166 145.553 274.
000 Share of losses Balance as at 30 June The Company’s share of the result of its associated company.918 Revenue 54.188 Loss 56.1 18.933.535.000 6.258.000 146.813 2.683) 90.828.592.166. liabilities and revenue is as follows: Rupees Percentage interest held 25. and its share of the assets.413 5.450.592.154. which are unlisted and incorporated in UAE.1 90.659.663 523.000 6. UAE ("the Associate") for purchase of shares.592.00% 17 Long term advance This represents the advance given to Rak Ghani Glass LLC.317 6.378.250 17. 18.250 18.000 (56.659.220.469.880.2 9.206.438.000 each 16.288.731 21.000 140. 2009 Rupees 2008 Rupees Assets 2.000 16. 46 .689.592.163 18.825.ANNUAL REPORT 2009 2009 Rupees 2008 Rupees Note 16 Investment in associate Rak Ghani Glass LLC 6800 (2008: 400) fully paid ordinary shares of AED 1.500 17.2 These represent interest free security deposits to different entities.592.1 Movement in equity instruments of associated company is as follows: Balance as at 01 July Purchase of equity investment 6.273.563 12.220.929 Liabilities 1.1 These represents interest free security deposits for Ijara finances and are adjustable at the expiry of respective Ijara facilities.317 6.683 Note 18 Long term deposits Ijara finances Others Less: Current maturity 18.082 11.
deposits and prepayments Advances Employees .558 22 Advances.362 349.131.859.11 million)] Fuel and lubricants 550.318.985 611.120.237 427.1 55.483.717 387.485 34.916 43.093 22.186 109.745.186 1.321 328.782 21 Trade debtors Local .286 2008 Rupees 20 Stock in trade Raw material [in transit Rs.136.836.034 27.55 million)] Packing materials Work in process Finished goods 330.736.500 46.888 3.114.833.601.977 2.887 44.846. 12.695.601.888 These amounts are in the normal course of business and are interest free. spares and other consumables Stores and spares [in transit Rs 159.759.690 590.134.secured Suppliers of goods and services .810 1.227.unsecured Considered good Considered doubtful Less: Provision for doubtful debts Foreign .203.524 2.497.374.820 1.405.613.unsecured Due from related parties Trade deposits Excise duty receivable Freight subsidy refundable 22.950.314.662 268.910 50.863 330.601 1.271.769 725.227.485 7.817.30 million (2008: Rs 234.560 354.460.749) 315.904.191.078 59.309.366 1.392) 392.818 56.618 658. 47 .ANNUAL REPORT 2009 2009 Rupees 19 Stores. Nil (2008: Rs.904 767.234 (7.392 394.488.573.130.717 365.836.382 41.806.361 281.879 288.191.784 61.308.481 1.904.secured.632.847 Note 392.1 Due from related parties Ahmad Brothers Ghani Automobile Industries Limited Al-Muhandus Corporation Ghani Corporation Ghani Mines (Private) Limited 815.173.114. considered good 315.203.713 (1.591 792.321 34.020.749 322.321 1.
649 2008 Rupees 48 .146.917 34.960.972. Note 2009 Rupees 2008 Rupees 23.2 24 Cash and bank balances Cash in hand Cash at bank .065 1.257 (60.525.689 54.273.656 (71.482.623 30. UAE.786 6.608) 3.960.093 4.089 24. 2009 Rupees 25 Sales .994. UAE as consideration towards the transfer of technology.745 34.868.828) (808.102.631.868. This represents expenses incurred by the Company on behalf of Rak Ghani Glass LLC.304.191.144 3.870 699.198.512) 5. patent rights for design.net Local sales Export sales Less: Discount Sales tax and special excise duty Commission on sales 5.971.429 23.1 23.931 19. procurement.164 660.223.111.current accounts .745 30.607.034. construction.787) (60.982 44.1% to 5% per annum).368 9.1 The balances in saving account bear mark-up at the rate of 5% per annum (2008: 0.148.785.521.974.749) (648.498 73.729. engineering.521.1 This represents amounts receivable from sponsors of Rak Ghani Glass LLC.072) (957.072) (527.saving account 3.337.689 9.2 9. commissioning and management of the plant operations.330.242.107 33.612) (77.621.513.133.ANNUAL REPORT 2009 2009 Rupees 2008 Rupees Note 23 Other receivables Technical fee receivable Receivable from RAK Ghani Glass LLC 23.1 24.785.449.466.303.
560) (13.566) 2.052 (281.621.590 3.256.788.661.973) 3.796.910) 1.618 (354.302 212.752.828 1.726.090 277.716.889 Finished goods Opening balance Closing balance 281. rates and taxes Repair and maintenance Travelling and motor running Communication and stationery Other manufacturing expenses 26.361) (21.632.800. allowances and other benefits Depreciation Rent.ANNUAL REPORT 2009 2009 Rupees 26 Cost of sales 2008 Rupees Raw material consumed Fuel.054.1 1.130.949 3.340 22.993.054.084.951.136.161 10.1 Raw materials consumed Opening balance Purchases Closing balance 276.474 263.178 9.314.356 912.916 97.323 5.013 2.118 174.477.176.198 (330.982 3.522.411.857.844.065.173.356 49 .352 241.055) 2.236.695.837 3.618) (50.028.747.121.916 230.779 3.405 17.6220.127.116.11.894.143 13.067.173.556.2 15.591) (72.340.306 (43.638.052.971.961 26.661.186) 1.2 410.714 (276.951.314.003 4.665.477.860.839.996.799.948.361 (56.474 1.549 348.532.487.800.155.832.154.736.906 26.854 1.675 152.088 Work in process Opening balance Closing balance 43.738.199) 3. gas and electricity Packing material consumed Stores and spares consumed Salaries.186 1.
298 27.16 million (2008: Rs. 7.050 151.ANNUAL REPORT 2009 26. stationery and supplies Utilities Rent.738.17 million) in respect of retirement benefits.016 1. allowances and other benefits include Rs.3 27.761 6.1 56.794 819. 2008 Rupees 295.000 18.827.750.398 490.000 40.615.3 None of the directors and their spouses had any interest in any of the donees during the year.570.661 7. 2009 Rupees 27.399.010 945.231. allowances and other benefits include Rs.916.2 15.000 125.000 945.291 5.533 3. 10.200 14.099. 2. allowances and other benefits Communication.80 million ( 2008: Rs.537 10.233. rates and taxes Travelling and conveyance Auditors' remuneration Depreciation Legal and professional expenses Charity and donation Other expenses 27.2 Auditor’s Remuneration Statutory audit fee Half yearly review Code of corporate governance review Out of pocket expenses 750.1 million ) in respect of retirement benefits.000 490.160.150 13.000 125.040.000 15.582 1.2 Salaries.198.000 50 .208 Salaries.1 73.361.082 115.000 30.000 27.000 30.862 9.963.934 13. Note 2009 Rupees 2008 Rupees 27 Administration and other expenses Salaries.798.917. 4.301.000 40.645 1.2 27.543.000 12.
065 25.942 2.424.261 92.224 26.819.271.181 4.862.450 5.1 44.238.600 1.392 145.532 1.515 2.501 15.111 43.915 5.962 1.277 30 Other operating income Income from financial assets Gain on sale of investment Profit on savings account Exchange gain Income from non-financial assets Gain on sale of fixed assets Technical fee from Rak Project Breakage recovery from packing contractor Scrap sales 193.935.525.816 6.084.322.357.334 2.082.989.407 1.227.77 million ) in respect of retirement benefits.219 26.727.351 221.743 59.576 851.902.980 51 .606.861 234.372.431 26.873.325.056.2 28.ANNUAL REPORT 2009 Note 2009 Rupees 2008 Rupees 28 Selling and distribution expenses Salaries.808.114 37.698 33.732.429 1.738.485.345.775.860 78.571 1.777 313. rates and taxes Travelling and conveyance Advertisement and sale promotion Depreciation Provision for bad debts Transportation and handling Other expenses 28.719 1.116 1.655 4.043 20.739 406.555.398.451 52.534 16.058.857 61. allowances and other benefits include Rs 1.201 295.505 2.845.400.958.510.1 Salaries.357 131.92 million (2008: Rs.383.904 44.953.641 1.952 75. 0. stationery and supplies Utilities Rent.3 13.976. Note 2009 Rupees 2008 Rupees 29 Other operating expenses Workers' profit participation fund Workers' welfare fund Loss on sale of investment 13.472.4 53.366.932 89.940.869. allowances and other benefits Communication.550.
016 (28.75) 0.028.740 2008 Rupees 7.250 57.387 88.870 6.00 (1.ANNUAL REPORT 2009 2009 Rupees 31 Finance cost Profit on Ijara finances Profit on diminishing musharika Profit on short term morabaha finances Bank charges 7.811.429.1 32.81 (2.428.707.761.006 32.782.167.08 538.480 131.910 32 Taxation Income tax Current year Prior year Deferred tax 248.100.212 88.028.523 60.523.338.917.990. 2009 % Applicable tax rate Tax effect on separate block of income (taxable at reduced rate) Tax effect of permanent differences Tax effect of prior years provisions / reversals 35. Rupees Number of shares Rupees 712.957 280.101.912 73.24 2009 2008 % 35.11 52 .097.959.006.858 5.167.00 (4.949. Tax charge reconciliation Numerical reconciliation between the average effective tax rate and the applicable tax rate.895 137.802 70.093.72) 33.basic and diluted Basic Profit after taxation Weighted average number of ordinary shares Earnings per share Diluted There is no dilution in earnings per share as the Company has no such commitments.2 The current year's provision for taxation represents tax chargeable under normal and final tax regime.870 8.493) 220.765 93.82) 28.329 8.734 3.111 268.895 131.613.28 2008 Restated 33 Earnings per share .
ANNUAL REPORT 2009 53 .
ANNUAL REPORT 2009 54 .
: Credit risk Liquidity risk Market risk The Board of Directors have the overall responsibility for the establishment and oversight of the Company’s risk management framework.67 million) financial assets which are subject to credit risk amount to Rs. The Company believes that it is not exposed to major concentration of credit risk. past experience and other factors.ANNUAL REPORT 2009 36 Financial instruments The Company has exposure to the following risks from its use of financial instruments.657.133.689 34.027. 407.368 408. establish purchase limits taking into account the customer's financial position.309.86 million (2008: Rs.250 427.670. management reviews credit worthiness.089 503.1 Credit risk Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations.482. The Company's risk management policies are established to identify and analyse the risks faced by the Company's.731 349. Concentration of credit risk arises when a number of counter parties are engaged in similar business activities or have similar economic features that would cause their abilities to meet contractual obligation to be similarly effected by the changes in economic. and the Company’s management of capital. the Company’s objectives.558 7. 503. political or other conditions. To manage exposure to credit risk in respect of trade receivables.847 3. The carrying amount of financial assets represents the maximum credit exposure before any credit enhancements.538 2008 Rupees 5. The management has set a maximum credit period of 60 days to reduce the credit risk. 411.14 million). 494. Export sales are secured through letters of credit.101 55 . This note presents information about the Company’s exposure to each of the above risks.058.488. references.034.535.903 9. policies and processes for measuring and managing risk. Risk management policies and systems are reviewed regularly. and to monitor risks and adherence to limits.273. The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework.785. The Board is also responsible for developing and monitoring the Company's risk management policies. 36.498 44. deposits and prepayments Other receivables Cash and bank balances 11.706 19. The maximum exposure to credit risk at the reporting date is: 2009 Rupees Long term deposits Trade debts Advances. The Board is also responsible for developing and monitoring the Company's risk management policies. and arises principally from the Company's receivables from customers and loans to/due from related parties. to set appropriate risk limits and controls.90 million (2008: Rs. Limits are reviewed periodically and the customers that fail to meet the Company's benchmark creditworthiness may transact with the Company only on a prepayment basis.Out of the total financial assets of Rs.
2 Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due.896.220 Total - - - 69.634 20.030 12.976.582 Less than 6 months Ijarah finances Diminishing musharika Short term morabaha finances Loan from sponsors Trade and other payables Markup accrued 2007-2008 14.389 23.106.333.277.ANNUAL REPORT 2009 The trade debts as at the balance sheet date are classified as follows: 2009 Rupees 34.334 18.104.22.1687 3.567.673.618 487.663.670 1.801.618 Between 1 to 5 years 18.206.416. that it will always have sufficient liquidity to meet its liabilities when due.684.008.334 21.362 315.625.332 31.567.665 4.030 12.670.710.126 792.877 Between 1 to 5 years 41. as far as possible. Following is the maturity analysis of financial liabilities: Less than 6 months Ijarah finances Diminishing musharika Short term morabaha finances Loan from sponsors Trade and other payables Markup accrued 2008-2009 17.847 Foreign Domestic The aging of trade receivables at the reporting date is: Not past due Past due 30 days Past due 60 days Past due 90 days Past due 180 days Past due above one year 263.847 Based on past experience the management believes that no impairment allowance is necessary except for the allowance provided in respect of trade receivables past due as some receivables have been recovered subsequent to the year end and for other receivables there are reasonable grounds to believe that the amounts will be recovered in short course of time.670 625.933 570.239. cash flow projections and comparison with actual results by the Board.488.000.008.684.529 487.545 13.624 23.333. 36.761 Between 6 to 12 months 14.277.293 Total - - - 54.416.665 4.693.106.520.976.374.183.076 19.427 3.114.437 35.333.933 570.000 109.399 20.000 591.437 35.076 19.482.201 349.000 591. Further liquidity position of the Company is closely monitored through budgets.663.801.958.999 18.044.848. under both normal and stressed conditions.485 349.388.126 739. For this purpose the Company has sufficient running finance facilities available from various commercial banks to meet its liquidity requirements.896.488.679 Between 6 to 12 months 17.645 56 . The Company's approach to managing liquidity is to ensure.
The Company believes that it is not exposed to material currency risks. while optimising the return. At the reporting date the interest rate profile of the Company's significant interest bearing financial instruments was as follows: 2009 Effective rate (in Percentage) Ijarah finances Diminishing musharika Short term morabaha finances 10.740) 1.573.3 Market risk Market risk is the risk that changes in market prices.954 5.000 109.529 487.837.663.228.36 to 13. 36. 57 .710.72 10. 100 bps Increase Rupees Effect on profit .30 June 2008 (1.S.36 to 14.030 69. 36.954) (5.36 to 16.33 The Company does not account for any fixed rate financial assets and liabilities at fair value through profit and loss. Cash flow sensitivity analysis for variable rate instruments A change of 100 basis points in interest rates at the reporting date would have increased/ (decreased) profit for the year by the amounts shown below. This analysis assumes that all other variables.75 to 17 13.000.567. The analysis is performed on the same basis for 2008.18 13. interest rates and equity prices will affect the Company's income or the value of its holdings of financial instruments.573.4 Currency risk The Company is exposed to currency risk on foreign trade debts that are denominated in a currency other than the functional currency primarily U. remain constant.56 2008 2008 2009 Carrying amount (Rupees) 54. in particular foreign currency rates. Therefore a change in interest rates at the reporting date would not affect profit and loss account.399 20.30 June 2009 Effect on profit .ANNUAL REPORT 2009 36. Dollars (USD).437 10. such as foreign exchange rates.27 to 14.5 Interest rate risk Interest rate risk is the risk that the value of financial instrument will fluctuate due to changes in market interest rates.740 Decrease The sensitivity analysis prepared is not necessarily indicative of the effects on loss for the year and assets / liabilities of the Company. The objective of market risk management is to manage and control market risk exposures within acceptable parameters.837.
The Board of Directors also monitors the level of dividends to ordinary shareholders. for example.831 3. willing parties in an arm’s length transaction.7 Fair value of financial instruments The carrying values of the financial assets and financial liabilities approximate their fair values.calculated as a ratio of total debt to equity.6 Other price risk Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk).691. Neither there were any changes in the Company’s approach to capital management during the year nor the Company is subject to externally imposed capital requirements.141 5% 2008 Rupees 627. The Company monitors capital on the basis of the debt-to-equity ratio . The debt-to-equity ratios as at 30 June 2009 and at 30 June 2008 were as follows: 2009 Rupees Total debt Total equity and debt Debt-to-equity ratio %age 196. adjust the amount of dividends paid to shareholders. or a liability settled. and to provide an adequate return to shareholders. The Company's objectives when managing capital are: (i) to safeguard the entity's ability to continue as a going concern. In order to maintain or adjust the capital structure. This is due to the reason that the Company's management is trying to maintain the minimum borrowings level and to keep the Comapny borrowing free.428 3.700. so that it can continue to provide returns for shareholders and benefits for other stakeholders.929. The Board of Directors monitors the return on capital employed.199 18% The decrease in the debt-to-equity ratio in 2009 resulted primarily from the reduction in borrowings during the year. between knowledgeable. which the Company defines as operating income divided by total capital employed. Fair value is the amount for which an asset could be exchanged. issue new shares. 58 . the Company may. arrange new lines of credit or sell assets to reduce debt. The Company is not exposed to any material price risk.562.8 Capital management The Board’s policy is to maintain an efficient capital base so as to maintain investor. (ii) The Company manages the capital structure in the context of economic conditions and the risk characteristics of the underlying assets.508.657. 36. creditor and market confidence and to sustain the future development of its business.ANNUAL REPORT 2009 36. 36.
043 5.315 261.357.683 (4.989.614.224) 56.383. plant and equipment Operating profit before working capital changes (Increase)/decrease in operating activities Store.357 (26.087) 596.166 92. deposits and prepayments Other receivables Trade and other payables Cash generated from operations 38 Plant capacity and annual production The production capacity and the actual packed production achieved during the year are as follows: Production capacity (Tons) 2009 2008 Actual production (Tons) 2009 2008 155.121.809.813.534 993.692 807.529 93.716.534 1.985.ANNUAL REPORT 2009 2009 Rupees 37 Cash generated from operations Profit before taxation Adjustments for non cash and other items: Depreciation Financial charges Contribution to provident fund Provision for WPPF Provision for doubtful trade debts Exchange gain Share of loss of associate Gain on sale of property.464.921) (47.089 98.280 1.750 133.224 (525.827.065 127.407.354 (21.188.972 188.284.750 115.360.659.077 204.849.097) 71.272 96.393 2008 Rupees Float glass Hollow glass 127.876.105 106.798) (42.585.885.910 10.394.857) 313.342.517 (134.505) 422.929.633) (119.976.738.084.392 (1.227.111 70.371.844.133.740 14.397) 30.562) (42.657 53.447 229.740 34.597 169.614.051 43.170 1.801.941) 63.207.345.416.374.141 1.355 243.959.142 (303.340 59 . spares loose tools and other consumable Stock in trade Trade debtors Advances.097.751.068 188.
35. 39 Date of authorization for issue The financial statements were approved and authorized for issue on 29 September 2009 by the board of directors of the Company. 40 Subsequent event The Board of Directors has proposed a final dividend of Rs. - Lahore: ______________ Chief Executive _______ Director 60 . It was previously shown under current maturities of non current liability. It was previously classfied in selling and distribution expenses.939 million) and issuance of bonus share @ 10% (2008: 5%) for the year ended 30 June 2009 at their meeting held On 29 September 2009for approval of the members at the Annual General Meeting to be held on 27 October 2009 .610 million (2008: 167. 41 General Figures have been rounded off to nearest rupee. These financial statements do not reflect these appropriations. Loan from sponsors amounting to Rs. 264.503. 3 per share (2008: Rs.995 million has been reclassified as a deduciton from sales. 2 per share) amounting to Rs.278 million has been reclassified to interest free loan. Commission on sales amounting to Rs.ANNUAL REPORT 2009 The actual production is lower than the production capacity mainly due to shut down of two furnaces at Hattar plant for a period of 3 months and 40 days for enhancement of plant capacity. 60.
No. by the company not later than 48 hours before the meeting and must be duly stamped. As witness my/our hand(s) this Witness's Signature day of 2009 Signature Name: Address: Signature and Revenue Stamp NOTES: Proxies. of Shares I/WE of Being a member of GHANI GLASS LIMITED Hereby appoint Mr. signed and witnessed. . of failing him Mr. Lahore on Tuesday October 27.ANNUAL REPORT 2009 GHANI GLASS LIMITED 40-L. 2009 at 11:00 AM and at every adjournment thereof. Lahore FORM OF PROXY Folio No. of (Being a member of the company ) as my/our proxy to attend. in order to be effective. Model Town. The Mall. act and vote for me/us on my/our behalf at 17 th ANNUAL GENERAL MEETING of the members of the Company to be held at Avari Hotel.
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