The directors stated about the future prospects, although there is inflationary trend in the prices of raw material and fuel and power and pressure on the selling prices of yarn, the management of the company will try its best to improve the performance of the company.
The materialisation of the management's resolve for improvement are visible from the historical sales and production figures of the company.
Production figure has shown consistency and sales figure has almost remained consistent with plus and minus of few percentages.
So the sustainability of the management's resolve is evident. During the year the company posted loss at Rs 47.51 million as against Rs 46.55 million in the preceding year. The company's Morabaha Finance was under litigation upto December 2003.
Asim Textile Mills Limited is limited by shares incorporated in Pakistan under Companies Ordinance, 1984. Its registered office is located at 16-C Peoples Colony Faisalabad.
The company was listed at Karachi Stock Exchange in 1991. Its shares are also listed on Islamabad and Lahore Stock Exchanges.
The share in the company has been placed on the defaulting companies counter under the stock market's listing regulations No 32 (1)b which stipulates "failed to declare dividend/bonus for 5 years from the date of last declaration."
At present its share is being quoted at Rs 1.95 per Rupee 10 per share. During the last 52 weeks the market value of the share increased from Rs 0.50 per share to Rs 3.50 per share.
The principal business activity of the company is the manufacture and sale of yarn. The factory is located at Tehsil Jaranwala, District Faisalabad in the province of Punjab.
The manufacturing facilities of Asim Textile Mills Ltd, is equipped with 19,200 spindles. During the year under review 18,900 spindles worked.
The annual production capacity of the plant has been rated at 7.67 million kgs for the year under review. The production capacity slightly decreased from 7.70 million kgs in the preceding year.
During the year under review the actual production of yarn was recorded at 7.14 million kgs as against 7.16 million kgs recorded in the preceding year.
The capacity and actual production figures have been recorded after conversion into 20/s count.
During the year under review, the company's output slightly declined but capacity utilisation reached 93.09%.
It has been reasoned that actual production, in comparison to plant capacity, is low due to periodic scheduled and unscheduled repair and maintenance of plant and machinery.
Its paid-up capital of Rs 151.77 million has remained constant since 1998 when it was increased from Rs 81.77 million posted in 1977.
The paid-up capital has been wiped out from accumulated deficit of Rs 477.05 million. The capital deficiency works out Rs 325.28 million.
The amount of Rs 192.75 million on account of surplus on revaluation of fixed assets also has not been able to fully cover the amount of capital deficiency.
The long term liability on account of Morabaha Finance at Rs 415.05 million is the identical figure of last year.
The current ratio shows the lowering of current assets against current liabilities. During the year under review, the company recorded sales in terms of value at Rs 403.72 million which slightly declined by 1.6% from Rs 410.32 million posted in the preceding year.
The figure is only 5.7% lower as compared to seven years highest figure of Rs 428.32 million recorded in the year 2000.
This would show that the company has maintained steady and smooth production line as well almost constant level of sales despite less than conduce business environment both locally and internationally.
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Performance Statistics (Million Rupees)
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30 September 2003 2002
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Share Capital-Paid-up: 151.77 151.77
Accumulated (Loss): (477.05) (532.30)
Shareholders Equity: (325.28) (380.53)
Surplus on Revaluation of F/A: 192.75 404.59
L.T Debts: 415.05 415.05
Deferred Taxation: 103.63 -
Deferred Liabilities - Gratuity: 2.84 3.18
Current Liabilities: 156.99 130.75
Fixed Assets-Tangible: 487.15 512.06
Current Assets: 58.83 60.98
Total Assets: 545.98 573.04
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Sales, Profit & Pay Out
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Sales: 403.72 410.32
Gross Profit/(Loss): (3.86) 8.29
Operating Profit (Loss): (12.00) 0.69
Other Income: 0.12 0.23
Financial (Charges): (39.06) (45.04)
(Depreciation): (25.68) (27.14)
(Loss) Before Taxation: (50.94) (44.50)
(Loss) After Taxation: (47.51) (46.55)
Earnings Per Share (Rs): (3.13) (3.07)
Share Price (Rs) Dated 24.02.2004: 1.95 -
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Financial Ratios
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Price/Earning Ratio: (-) -
Book Value Per Share: (21.43) (25.07)
Price/Book Value Ratio: (-) -
Debt/Equity Ratio: (-) 95:5
Current Ratio: 0.37 0.47
Asset Turn Over Ratio: 0.74 0.72
Days Receivables: 2 9
Days Inventory: 14 13
Gross Profit Margin (%): (0.96) 2.02
Net Profit Margin (%): (2.97) 0.17
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Plant Capacity & Production (Million Kgs)
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A) Yarn After Conversion Into 20/s Count
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Installed Capacity: 7.67 7.70
Production: 7.14 7.16
Capacity Utilisation (%): 93.09 92.99
B) Number of Spindles Installed: 19,200 19,200
C) Number of Spindles Worked: 18,900 18,996
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COMPANY INFORMATION: Chief Executive: Zahid Anwar; Director: Ziaullah Khan; Company Secretary: Muhammad Asif Jamil (FCCA); Chief Financial Officer: Naveed Ejaz; Registered Office & Shares Department: 16-C Peoples Colony Faisalabad; Factory: 32-KM, Sheikhupura Road Faisalabad.
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