Sugar & Allied Industries: TANDIANWALA SUGAR MILLS LIMITED - Half Year Ended March 31, 2004

The company is principally engaged in the production and sale of sugar. Its manufacturing facilities are located in District Faisalabad. In Half Yearly Report for the period ended March 31, 2004, the company's directors informed about the project of distillery division.
This division being set up for the production of ethanol with the annual production capacity of 125,000 litres per day. Through the rights issue at the premium of Rs 2 per share in January 2004, Tandianwala Sugar Mills Limited, had raised its capital of Rs 80.988 mln.
Hence the paid up capital increased from Rs 249.32 mln to Rs 316.81 mln and the share premium was booked for Rs 13.50 mln. The extended capital base will support the distillery project which was expected to start ethanol production during the year 2004-2005.
The organisation is public limited company incorporated in the province of Punjab with its registered office located at Gulberg II Lahore. It was listed at Karachi Stock Exchange in 1992. In 2003 it had announced right issue at 27.07% and in 2002 cash dividend at 5%.
On 1st September 2004, the market price of its share closed at Rs 19 per share carrying 90% premium over the par value. During the last one year the price of the share went up from below par value at Rs 9.50 to more than double of par value at Rs 22.40 per share.
The strong recovery in the market value of its share got support from the robust financial health of the company as evident from the solvency and liquidity ratios coupled with sharp turnaround from loss position in the previous corresponding period to modest profit posted during the period under review (FHY 2003-04).
Despite a shorter sugarcane crushing season, the company's output of sugar significantly increased.
The average sugar recovery of 8.79% for the season, is the highest ever achieved by the company since its inception. It is creditable that the company has settled the entire growers' liability.

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Performance Statistics                (Million Rupees)

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Balance sheet                                  -As At-

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                                 March 31 September 30

                                     2004         2003

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Share Capital-Paid-up:             316.81       249.32

Share Premium:                      13.50            -

Accumulated Profit:                154.00       142.39

Shareholders Equity:               484.31       391.71

Loan From Directors:                19.60        51.12

Other L T Debts:                    50.74        50.91

Road Cess Payable:                   6.58        11.64

Deferred Gratuity:                  13.09        13.30

Other L T Liabilities:              57.89        57.80

Current Liabilities:             1,021.94       458.35

Tangible Fixed Assets:             686.17       666.98

Security Deposits:                   5.05         2.88

Current Assets:                    962.93       364.97

Total Assets:                    1,651.15     1,034.83

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Profit & Loss A/c For the

Half Year Ended             March 31 2004         2003

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Sales:                             412.50       245.93

Gross Profit:                       48.73        38.01

Operating Profit:                   25.19        19.44

Other Income:                        2.92         0.41

Financial (Charges):               (13.72)     (19.77)

Profit Before Taxation:             13.67        82.72

Profit/(Loss) After Taxation:       11.60       (1.15)

Earning/(Loss) Per Share (Rs):       0.44       (0.04)

Share Price (Rs) 01.09.2004:        19.00            -

Price/Earning Ratio:                43.18            -

Book Value of Share (Rs):           15.29        15.71

Debt/Equity Ratio:                   9:91        10:90

Current Ratio:                       0.94         0.80

Gross Profit Margin (%):            11.81        15.46

Net Profit Margin (%):              28.12         0.47

R.O.A:                               0.70         0.11

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