The auditors of the company emphasised although the company booked after tax loss at Rs 7.32 million (2001-02: Rs 4.78) and has accumulated losses of Rs 101.94, million but they have prepared the financial statements on going concern basis.
The reasons are: First, during the period the management has completed substantial portion of BMR project and has increased its production capacity from 4.388 to 5.312 million kgs based on 30/1 count second, the company is pursuing the financial institutions for gas generator for the generation of electricity.
The successful implementation of this project will reduce the fuel and power cost by approximately 50%.
Keeping in view the foregoing facts the management believes that the company would attain profitable operations and will continue as a going concern.
Shapur Textile Mills Ltd is a public limited company incorporated in the province of Punjab.
Its registered office is situated at FB III, 1st Floor, Awami Complex, Usman Block, New Garden Town, Lahore and its manufacturing facilities are located at Chunian, District Kasur in the province of Punjab.
It was listed on the Karachi Stock Exchange in 1992. Its shares are also quoted on Lahore Stock Exchange.
At present the share has been placed on the defaulting company list of Karachi Stock Exchange under section 32 (1)(b) of the listing rules.
According to this rule the nature of default is that the company failed to declare dividend/bonus for 5 years from the date of last declaration.
Recently the share has been quoted at 2.85 per share of Rs 10. During the last one year the quoted price of the share increased from Rs 1.35 per share to Rs 6.0 per share.
The company is a textile spinning unit and its manufacturing facilities includes 22,080 spindles which increased from 18,240 spindles in the preceding year.
Accordingly the principal business of the company is manufacturing and sale of yarn and allied products. With the enhancement in its manufacturing facilities, its installed production capacity has also increased.
The capacity has been rated on the basis of 30 counts of yarn. So the annual production capacity increased to 5.312 million kgs during the year under review from 4.388 million kgs in the preceding year.
The production of yarn is actual counts have been converted into 30 kgs for comparison with the rated capacity.
During the year the company's output of yarn increased from 4.821 million kgs from 4.162 million kgs.
This shows 15.8% increase in output and at the same time attainment of 90.8 percent utilised capacity as compared to 94.8 percent utilized capacity in the preceding year.
The decline in utilized capacity is due to the fact that the output although increased but proportionate to the increase in production capacity.
During the year under review the company made additions in the fixed assets at the capital outlay of Rs 30.35 million.
In addition it booked Rs 21.16 million in the account of capital work in progress. Mostly these capital outlays have been in the plant and machinery.
The company's sales during the year under review amounted to Rs 488.25 million as compared to sales at Rs 424.95 million posted in the previous year.
The growth in sale is 14.9% and the directors emphasised that the growth is attributable to the BMR programme undertaken by the company "last year".
However the margins were low as continued under pressure. Although gross profit marginally increased to Rs 24.34 million from Rs 23.45 million in the preceding year but gross profit margin slipped to 4.98% from 5.51%.
The directors lamented that overall economic conditions have been difficult during the period. Prices of raw material remained high.
======================================================
Performance Statistics (Million Rupees)
======================================================
30 September 2003 2002
======================================================
Share Capital-Paid-up: 99.80 99.80
Accumulated (Loss): (101.94) (108.28)
Shareholders Equity: (2.14) (8.48)
Surplus on Revaluation of F/A: 118.12 127.00
L.T. Debts: 77.39 60.75
Directors Loan: 53.50 53.96
Deferred Liabilities: 64.27 70.54
Other Liabilities: 6.17 6.17
Current Liabilities: 118.03 85.26
Fixed Assets: 339.60 315.33
Current Assets: 95.74 79.87
Total Assets: 435.34 395.20
------------------------------------------------------
Sales, Profit & Pay Out
------------------------------------------------------
Sales-Net: 488.25 424.95
Gross Profit: 24.34 23.45
Trading Profit: 0.53 -
Operating Profit: 7.71 11.47
Other Income: 2.65 1.62
Financial (Charges): (16.80) (20.13)
(Depreciation): 24.48 (24.27)
(Loss) Before Taxation: (6.45) (7.04)
(Loss) After Taxation: (7.32) (4.78)
(Loss) Per Share: (0.73) (0.48)
Share Price (Rs) on Dated 18-5-2004: 2.85 -
------------------------------------------------------
Financial Ratios
------------------------------------------------------
Price/Earning Ratio: (-) -
Book Value Per Share: (0.21) 0.85
Price/Book Value Ratio: (-) -
Debt/Equity Ratio: 31:69 23:77
Current Ratio: 0.81 0.94
Asset Turnover Ratio: 1.12 1.07
Days Receivables: 17 14
Days Inventory: 32 36
Gross Profit Margin (%): 4.98 5.51
Net Profit Margin (%): (1.50) (1.12)
R.O.A. (%): (0.99) (1.22)
R.O.C.E (%): (2.31) 1.54
------------------------------------------------------
Plant Capacity & Production
------------------------------------------------------
A) Yarn 30 Count Million Kgs
Installed Capacity: 5.312 4.388
Production After Conversion
30 Count: 4.821 4.162
Capacity Utilisation (%): 90.76 94.85
B) Total Number of Spindles
Installed & Worked: 22,080 18,240
======================================================
COMPANY INFORMATION: Chairman/Chief Executive Officer: Mian Nazir Ahmed Piracha; Company Secretary: Abdul Haq; Chief Financial Officer: Adnan Mudassar; Registered Office: FB-3, 1st Floor Awami Complex, Usman Block, New Garden Town, Lahore; Factory: 64 KM Multan Road Chunian District. Kasur.
Comments
Comments are closed.