DIRECTORS’ REPORT
The Board of Directors is pleased to present their 15th Annual Report together with Audited accounts and Report thereon for the year ended 30th June 2006.
Your company sustained a Net loss of Rs.15, 710,989 during the year under Review on account of amortization of pre-production expenses of Rs.15, 084,366.
During the period under review, the production remained suspended owing to un-favorable conditions and lack of infrastructural facilities at Winder Industrial Area, especially the non availability of Gas,as prices of fuel diesel and electricity breakdowns have already caused the unit to bear losses.
The company along with other stakeholders in Winder through Lasbella Chamber of Commerce & Industry have succeeded in obtaining sanction of gas supply. SSGC has been working on Gas line and we anticipate that upon supply of Gas connection by Government,we would re-start and re-activate the Spinning Unit by installing Gas generators.
The management is keen to re-start the Unit as soon as the infrastructural facilities made available including Gas connection by SSGC.
The management is also pleased to inform you that entire liability towards Habib Bank Limited against Long Term Loan is fully paid / adjusted and no Bank Loan is outstanding against your company .Furthermore, during the year under review, Habib Bank Limited also allowed adjustment in accrued mark up amounting to Rs.56.999 million.
CLARIFICATION OF AUDITORS OBSERVATION
As regard Auditors observations, without qualification we have to state that your directors are keen to re-start the unit as soon as infrastructural facilities are made available in the Winder Industrial Estate. We also assured you that through sound internal control system and implementation of cost effective measures, your company would be able to yield profits in reasonable period and ultimately the shareholders would also be benefited.
The Board of Directors through out the period under Review have complied with the Code of Corporate Governance as per Listing Regulations of Stock Exchange and confirm that:-
*. The Financial statements prepared by the Company present fair state of affairs, the results of its operations, cash flows and changes.
* Proper books of accounts of the Company have been maintained.
*. Appropriate accounting policies have been adhered-to in preparation of financial statements based on reasonable and prudent practices.
*. International Accounting
standards as applicable in
*. The internal control system has been effectively implemented and monitored.
*. There are no significant doubts upon the Company’s ability to continue as going concern
*. There has been no material departure from the best practices of Corporate governance as well as Transfer pricing.
*. During the year, 4 (Four) meetings of the Board of Directors were held. The attendance record of which is as follows:-
Names of Directors No. of meetings attended
1. Mr. Akbar Ali Hashwani Chief Executive. 4
2. Mr. Amin A. Hashwani Director 4
3. Mr. Nizam A. Hashwani Director 4
4. Mr. Abdullah Hashwani Director 4
5. Mrs.Sultana Hashwani Director 4
6. Mrs.Farieha Hashwani Director 3
7. Syed Raza Abbas Jaffery Director ( Representing NIT) 3
DIVIDEND
As the company suffered losses therefore no dividend has been declared.
The retiring Auditors M/S Feroze Sharif Tariq & Co. Chartered Accountants Karachi being eligible have offered themselves for re-appointment for the financial year ending 30th June, 2007. The Board of directors on the recommendation of Audit committee have proposed appointment of M/S Feroze Sharif Tariq & Co. Chartered Accountants for the year ended 30th June, 2007.
The Pattern of shareholding as required under Section 234 of the Companies Ordinance, 1984 for the period ended 30th June, 2006 is attached to the Annual Report.
Your directors place on record the appreciation of efforts of the concerned quarters and look forward to their continued support.
By Order of the Board
Date: 28th September, 2006.
Chief Executive