Textile Weaving: NAKSHBANDI INDUSTRIES LIMITED - Half Year Ended March 31 2005

The company has been classified as textile weaving unit as its principal activity is the manufacture of towel and fabric mainly for export sales. Nakshbandi Industries Limited is a company limited by shares, incorporated in the province of Sindh in 1972. Its manufacturing facilities are situated in Landhi Karachi and it is listed on Karachi Stock Exchange.
As present its shares are trading at Rs 19.50 per share which is almost double of the par value. During the last one year the price of the share registered highest price of Rs 19.50 and the lowest price of Rs 14 per share.
During the half year ended March 31, 2005 of the financial year 2004-05, (HY 2004-05), the long term loans of the company decreased at Rs 567.53 million (HY 2003-04: Rs 580.01 million) by Rs 12.48 million. But during the period, the company entered into agreement with Bank Al-Habib Limited for additional financing for an aggregate amount of Rs 73 million to meet its financial obligation of BMR/Expansion as well as repayment of existing long term loans.
The mark-up ranges between 6% to 8% respectively. The facility is secured against pari passu charge and equitable mortgage of fixed assets of the company. The loans repayable in 10 bi-annual instalments. During the period under review, the company's sales in terms of value marginally increased by Rs 2.6 million from Rs 936 million in HY 2003-04 to Rs 938.6 million in HY 2004-05.
The directors made observation that the company continued to go for volume business, although at very competitive prices, as a strategy to utilise the capacity in competitive international environments to cater to the needs of WTO regime.
Operating profit was higher by Rs 8.4 million but higher financial charges forced the company's bottom line at the break-even point with nominal after tax profit of Rs 0.89 million..

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Performance Statistics                (Million Rupees)

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Balance Sheet As At              March 31 September 30

                                     2005         2004

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Share Capital-Paid-up:             242.07       242.07

Reserves & Profit:                 237.52       236.88

Shareholders Equity:               479.59       478.95

L.T Debts                          568.62       582.53

Deferred Liabilities:               33.41        33.11

Current Liabilities:             1,220.38     1,285.35

Fixed Assets:                    1,271.24     1,091.77

L.T. Deposits:                       0.38         0.38

Current Assets:                  1,030.38     1,287.79

Total Assets:                    2,302.00     2,379.94

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Profit & Loss A/c For

 The Half Year Ended March 31        2005         2004

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Sales:                             938.63       935.97

Gross Profit                       129.34       112.03

Operating Profit:                   48.93        40.49

Financial (Charges):                39.50        28.24

Profit Before Taxation:              8.96        11.56

Profit After Taxation:               0.89         4.06

Earnings Per Share (Rs):             0.04         0.17

Share Price (Rs) on 15/06/05:       19.50            -

Price/Earning Ratio:               487.50            -

Book Value of Share (Rs):           19.81        19.78

Debt/Equity Ratio:                  54:46        55:45

Current Ratio:                       0.84         1.00

Gross Profit Margin (%)             13.78        11.97

Net Profit Margin (%)                0.09         0.43

R.O.A (%)                            0.04         0.17

R.O.E (%)                            0.18         0.84

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