DIRECTORS’ REPORT TO THE SHAREHOLDERS
Your directors are pleased to present half yearly accounts for the period ended March 31, 2003. These accounts have been reviewed by the auditors.
Sales during the period under review increased by 3.4% and the GP margin by 1% in comparison with the corresponding period of last year. Company registered a net loss after taxation of Rs 3.2 million (previous period Rs 12.0 million) which is 73.3% less than the corresponding period of last year. The reasons for decrease in net loss are decrease in Administration expenses by 14%, caused by decrease in legal and professional expense; decrease in selling expenses by 78% caused by shifting emphasis from export to local sales due to better availability of rates; and decrease in Financial expenses by 80% when compared to corresponding period of last year.
As reported in the directors report on the financial statements for the year ended 30.9.2002, that the case filed by Faysal Bank Limited (FBL) against the company for recovery of principal amount of loan of Rs 40 million and profit thereon of Rs 5.616 million, was decreed only for Rs 4.05 million. The decretal amount was paid by the company and the loan of FBL terminated. This resulted in decrease of financial expenses during the current period. FBL has appealed against this decision in the High Court.
Another case filed by the company against Muslim Commercial Bank Ltd., for charging markup over markup is in progress.
In accordance with the requirements of SRO 45(1)/2003 dated 13.1.2003 incremental depreciation due to revaluation of fixed assets, for the period under review and previous years, including deferred tax, has been transferred from surplus on revaluation of fixed assets to accumulated losses, as per details given in note 6.
Future prospects of the company look good.
The management would like to place on record its appreciation for the continuous support of its shareholders, customers and employees and expect to receive same cooperation in the future.
For and on behalf of the Board
Faisalabad. Imran Zahid
29.05.2003 Chief Executive
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J.A. Textile Mills Ltd.
16 C, People's Colony
Faisalabad 38090, PAKISTAN
Tel: 92-41-721953-6
Fax: 92-41-712399