Engineering: CRESCENT STEEL & ALLIED PRODUCTS LIMITED - Nine Months Ended March 31 2004

The company is listed on all the stock exchanges of Pakistan. Its manufacturing facilities consist of a spiral pipe production line and multi-layer polyolefin and stand-alone epoxy coating line both located side by side at Sindh Industrial Trading Estate, Nooriabad District Dadu, Sindh.
Its business operation also includes 19,680 spindles spinning unit which is situated in the province of Punjab at Jaranwalla, Faisalabad.
The company started commercial operation in March 1987. The directors emphasised in the 9 monthly reported for the period ended March 31, 2004, that Crescent Steel Division maintains high quality norms in all its products and has consistently exceeded the requirement of international standards both in steel line pipe and multi layer coatings and will continue to remain at the cutting edge in terms of technology.
The annual production capacity of textile spinning unit is 6.452 mln kgs of cotton yarn. The cotton spinning activity is carried out under the name of "Crescent Cotton Products" (CCP) which is a division of the company and its operating results are shown separately.
During 9M 2003-04, the period under review, the company's sales declined by 52.4% to Rs 727.14 mln from Rs 1,526.56 mln, posted in the previous corresponding period. Cotton Division's sales at Rs 538.10 mln comprised 74% of the company's sales and the remaining 26% sales was generated by steel division.
The company posted pre-tax profit at Rs 233.60 mln out of which 1.02% was constructed by cotton division and 98.98% by steel division. The company carries robust balance sheet. Its shares are trading at Rs 80 per share which is 8 times of the par value.

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Performance Statistics                (Million Rupees)

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Balance sheet                                  -As At-

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                                 March 31      June 30

                                     2004         2003

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Share Capital-Paid-up:             220.93       200.85

Reserves & Profit:               1,227.78       961.23

Shareholders Equity:             1,448.71     1,162.08

Deferred Income:                     1.09         0.45

L.T Debts:                         334.06        38.02

Deferred Tax:                        1.10            -

Current Liabilities:               661.82       260.34

Tangible Fixed Assets:             477.36       410.49

Intangible Assets:                   2.20         0.41

L.T Investments:                   157.12        70.33

L.T Deposits:                        5.73         5.29

Staff Retirement Benefits:           6.37         6.37

Deferred Tax:                           -         1.08

Current Assets:                  1,798.00       966.92

Total Assets:                    2,446.78     1,460.89

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Profit & Loss A/c For the

Nine Months Ended           March 31 2004         2003

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Sales:                             727.14     1,526.56

Gross Profit:                       72.65       292.37

Operating Profit:                   12.71       225.47

Other Income:                      218.73       104.83

Financial (Charges):               (13.92)     (13.86)

Unrealised Gains:                   26.19        15.95

Profit Before Taxation:            233.60       301.79

Profit After Taxation:             222.06       227.34

Earnings Per Share (Rs):            10.05        10.29

Share Price (Rs) on 18.08.2004:     80.00            -

Price/Earning Ratio:                 7.96            -

Book Value of Share (Rs):           51.99        57.86

Debt/Equity Ratio:                  19:81         3:97

Current Ratio:                       2.72         3.71

Gross Profit Margin (%):             9.99        19.15

Net Profit Margin (%):              30.53        14.89

R.O.A:                               9.08        15.56

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