During the year under review the company generated sales in the sum of Rs 1.453 billion as against Rs 576.60 million recorded in the previous year and showed remarkable growth by registering 152% increase. There has been substantial increase in output of sugar also, as the crushing days increased and there was higher sugar recovery percentage. The company also generated foreign exchange by exporting sugar to Afghanistan.
The company's industrial relations remained cordial as all employees of the company were paid bonus equivalent to 4 1/2 months salary in addition to other amenities and statutory benefits.
Despite being the profitable year the company skipped dividend to the shareholders. But there was genuine reason as the company deployed large funds in the capital work-in-progress. Above all, the most remarkable news is that it turned the corner and posted net profit as against net loss in the previous year.
Chashma Sugar Mills Ltd is a public limited company listed on stock exchanges in Pakistan. It was incorporated on May 5, 1988 in NWFP having its registered office located in Mardan and head office in Islamabad.
The company is principally engaged in manufacture and sale of white sugar. Its factory is located in Dera Ismail Khan NWFP.
On 25th March 2004 the market price of Chashma Sugar's shares closed at Rs 22 per share which is more than double of the par value. During the last one year the price of its share made remarkable appreciation from Rs 12.80 per share to Rs 38.40 per share.
From the 10 year's statistics, it can be seen that the company declared dividends. During the last four years it has announced dividend only in one year in 2002.
In the shareholding profile, overwhelming majority of shares is owned by the directors and associated companies. The directors and their relatives own 12.8% of the company's total 19.1 million shares whereas the associated companies hold 53.2% stock of the company.
Its 1602 individual investors own 18.5% stock of the company. The sugarcane crushing season of the company commenced on 29th November and ended on 27th April 2003 and lasted for 151 days (2002-03 144 days). During the season under review, the company milled 908.1 thousand metric tonnes of sugarcane as against 889.7 thousand metric tonnes of sugarcane crushed in the preceding year showing 2.1% increase in the crushed cane. The company slightly exceeded the rated production capacity as it attained 100.9 percent capacity utilisation. Thus it enabled the company to avail economies of scale.
The production of sugar was recorded at 72.92 thousand metric tonnes (2002-03: 64.7 thousand metric tonnes) registering higher growth rate than the sugarcane crushing. In this case the output increased by 12.7% over the preceding year's. The higher growth can be attributed to higher sucrose recovery percentage. During the season the average sucrose recovery percentage went up to 8.03 percent from 7.28 percent in the preceding year.
The current season (2004-05) started on 18th November, 2004 and until 2nd January, 2005, the company had averaged sucrose recovery at 7.74 percent whereas crushing output was recorded at 255.6 thousand metric tonnes.
The directors lamented that they were facing difficulties in procurement of sugarcane as other sugar mills from Punjab were purchasing sugarcane through middlemen. But the directors rejoiced that they earned foreign exchange amounting to US$8.52 million by exporting sugar to neighbouring country Afghanistan.
During the year under review the company made turnaround in the operating result from loss in the preceding year to profit during the year under review. However the directors skipped the dividend due to deployment of funds in the ongoing plant and machinery extension programme. During the year the company booked Rs 288.4 million in capital work-in-progress account out of which Rs 224.78 million was for plant and machinery.
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Performance Statistics (Million Rupees)
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Balance sheet -As At-
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September 30
2004 2003
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Share Capital-Paid-up: 191.28 191.28
Reserves & Profit: 266.03 244.93
Shareholders Equity: 457.31 436.21
L T Debts: 263.87 0.26
Deferred Taxation: 0.84 -
Current Liabilities: 274.89 577.81
Fixed Capital Expenditure: 704.24 383.90
L T Deferred Taxation: - 0.26
Security Deposits: 0.28 0.16
Current Assets: 292.39 629.96
Total Assets: 996.91 1,014.28
Sales, Profit & Pay Out
Sales-Net: 1,453.37 576.60
Gross Profit/(Loss): 83.76 (0.44)
Operating Profit/(Loss): 48.83 (29.26)
Other Income: 3.50 2.73
Financial (Charges): (17.29) (16.12)
(Depreciation): (35.34) (39.00)
Profit/(Loss) Before Taxation: 33.20 (42.65)
Profit/(Loss) After Taxation: 21.10 (43.35)
Earning/(Loss) Per Share (Rs): 1.10 (2.27)
Share Price (Rs) on 25-3-2005: 22.00 -
Financial Ratios
Price/Earning Ratio: 20.00 -
Book Value Per Share: 23.91 22.80
Price/Book Value Ratio: 0.84 -
Debt/Equity Ratio: 36:64 0:100
Current Ratio: 1.06 1.09
Asset Turnover Ratio: 1.46 0.56
Days Receivables: 8 29
Days Inventory: 34 310
Gross Profit Margin (%) 5.76 (0.08)
Net Profit Margin (%): 1.45 (7.52)
R O A (%): 2.12 (4.27)
R O C E (%): 2.92 9.93
Plant Capacity & Production Sugar (Thousand Tonnes)
Crushing Capacity based
on 150 days 900.00 900.00
Cane Crushed 151/144 Days: 908.13 889.70
Capacity Utilisation (%): 100.90 98.86
B) Sugar Produced: 72.92 64.70
C) Average Recovery (%): 8.03 7.28
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COMPANY INFORMATION: Chairman: Khan Aziz Sarfaraz Khan; Chief Executive: Abbas Sarfaraz Khan; Director: Begum Zari Sarfaraz; Company Secretary/Chief Financial Officer: Mujahid Bashir; Registered Office: Nowshera Road Mardan; Head Office: 20-A, Markaz F-7, Islamabad; Factory: Dera Ismail Khan; Web Address: Not Mentioned.
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