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Karachi: We have to inform you that the Board of Directors of our company in their Meeting held on Thursday 6th October, 2011 at 10:00 A.M at Central Chambers Ireland Road , Karachi, recommended the following.
| (1) | Cash Dividend | “Nil” |
| (2) | Bonus Shares | “Nil” |
| (3) | Right Shares | “Nil” |
| (4) | Any Other Entitlement/Corporate Action | “Nil” |
| (5) | Any Other Price-Sensitive Information | “Nil” |
The financial results of the company for the year ended 30th June, 2011 together with the qualification / observation by the auditor are attached herewith.
The Annual General Meeting of the Company will be held on October 27th, 2011 at 10:30 p.m. the Registered Office Central Forest Products Ltd. Central Chambers Ireland Road, Karachi.
The Share Transfer Books of the will be closed from 20th October 2011 to 27th October, 2011 (both days inclusive). Transfer received at the Registered Office Central Forest Products Ltd. Central Chambers Ireland Road, Karachi at the close business on 19th October, 2011 will be treated in time for the purpose of above entitlement to the transferees.
Profit and Loss Account for the Period Ended June 30, 2011
| (Audited) | |||
| 2011 | 2010 | ||
| Note | Rupees | Rupees | |
| Net Sales | 18 | – | – |
| Cost of Sales | 19 | – | – |
| Gross Profit / (Loss) | – | – | |
| ———- | ———- | ||
| Operating Expenses | |||
| Administrative | 20 | 625,040 | 857,034 |
| Selling and Distribution | 21 | – | 180,000 |
| ———- | ———- | ||
| (625,040) | (1,037,034) | ||
| ———- | ———- | ||
| Operating Profit /(Loss) | (625,040) | (1,037,034) | |
| Other Income | 22 | 4,340,661 | 2,128,368 |
| ———- | ———- | ||
| 3,715,621 | 1,091,334 | ||
| Other Charges | |||
| Financial Cost | 23 | 635 | 250 |
| Other Charges | 24 | 5,116,171 | 3,631,123 |
| ———- | ———- | ||
| 5,116,806 | 3,631,373 | ||
| Profit / (Loss) before Taxation | (1,401,185) | (2,540,039) | |
| Taxation | 25 | 29,054 | – |
| ———- | ———- | ||
| (1,430,239) | (2,540,039) | ||
| Other Comprehensive Income | – | – | |
| ———- | ———- | ||
| Total Comprehensive Income | (1,430,239) | (2,540,039) | |
| ———- | ———- | ||
| Accumulated (Loss )Brought Forward | (49,034,076) | (46,494,037) | |
| ———- | ———- | ||
| From Last Year | |||
| Accumulated (Loss) Carried Over To | |||
| Balance Sheet | (50,464,315) | (49,034,076) | |
| ———- | ———- | ||
| Basic profit/ Loss per share | 26 | (0.48) | (0.85) |
The annexed notes from 1 to 35 form and integral part of these financial statements.
Auditors’ Report To The Members
We have audited the annexed balance sheet of Central Forest Products Limited as at June 30, 2011 and the related profit and loss account, cash flow statement and statement of changes in equity together with the notes forming part thereof, for the year then ended and we state that we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit.
It is the responsibility of the Company’s management to establish and maintain a system of internal control, and prepare and present the above said statements in conformity with the approved accounting standards and the requirements of the Companies Ordinance, 1984. Our responsibility is to express an opinion on these statements based on our audit.
We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the above said statements are free of any material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the above said statements. An audit also includes assessing the accounting policies and significant estimates made by management, as well as, evaluating the overall presentation of the above said statements. We believe that our audit provides a reasonable basis for our opinion and, after due verification, we report that:-
1. Stock in Trade include work in process valuing Rs.176, 301,485/- and finished goods valuing Rs.69,266,705/- is manufactured as per specific order from one of the customer in Iraq. However in view of prevailing situation in Iraq coupled with lapsing of letter at credit period worth Euro 13,609,525/- (Note # 3.1.6), it is unlikely that the goods w ill be exported in near future. Management has valued these stocks at cost, which we feel is not appropriate and be valued at net realizable value.
2. The Company’s financing arrangements as refereed to in note # 3 and note # 8 has expired on April 30, 2003 and December 31, 2004 respectively, however the company is in process re-negotiate or obtain replacement financing except for financing from the private funds of directors and their family members-also an amount of Rs, 90.870,755 included in trade and other payables note # 6 is due to National Bank of Pakistan against the import under usance letter of credit, the extended payment period of which was expired on December 31, 2004. Further no provision has been made in these accounts of Rs. 226,744,733/- as refereed to in Note #10.2 and 10.3 being the amount of mark-up held in suspense account by National Bank of Pakistan (Formerly NDFC). Had the provision has been made the accumulated loss will have been increased by 226,744,733/-.
Furthermore accumulated losses of the Company aggregating to Rs 50.464 million have Wiped out the equity and Current liabilities aggregating to Rs 254.244 million exceeds the current assets by Rs 2.955 million, these events indicated material un-certainty which may cast significant doubt on the Company’s ability to continue as a going concern and therefore it may be unable to realize its assets and discharge its liabilities in the normal course of business, these financial statements and related notes do not disclose these facts.
3. The Company DTRE approval has expired on 30-03-2008 and if the company is unable to obtain the extension of DTRE approval an amount of Rs.51,974,589/- along with additional taxes and penalties will have to be paid to Custom ,Sales Tax and Income Tax Departments.
(a) in our opinion, proper books of accounts have been kept by the Company as required by the Companies Ordinance, 1984;
(b) In our opinion:
(i) Except for the effect of the matter referred in paragraph 1 to 3, the balance sheet and profit and loss account together with the notes thereon have been drawn up inconformity with the Companies Ordinance 1984, and are in agreement with the books of account and are further in accordance with accounting policies consistently applied except for the change referred in note #2.13 with which we concur;
(ii) the expenditure incurred during the year was for the purpose of the company’s business; and
(iii) the business conducted, investments made and the expenditure incurred during the year.
For more information, contact:
Aamir Aziz
Company Secretary
Central Forest Products Limited
Central Chambers, Timber Market,
Ireland Road, Karachi – Pakistan.
Email: cfplk@yahoo.com
Web: cfplk77@hotmail.com