Textile Composite: MIAN TEXTILE INDUSTRIES LIMITED - Half Year Ended March 31 2004

The organisation is a public limited company incorporated in Punjab province having its registered office located in Model Town Lahore. Its shares are quoted at the stock exchanges in Karachi and Lahore. It is textile composite unit located in Bhai Pheru Tehsil Chunian and its principal activity is to manufacture and sale of cloth and yarn.
The company's half yearly accounts for the period ended March 31, 2004 was reviewed by the external auditors with limited scope in accordance with the companies ordinance 1984. These accounts have been prepared in compliance with IAS 34 and are being presented as required u/s 245 of the said ordinance.
The directors' report for the period under review (HY 2003-04). Laments that the period was difficult for the company, although sales revenue increased to Rs 542.05 million from Rs 408.41 million posted in the corresponding period last year. During this period the company booked an after tax loss of Rs 10.59 million as against profit of Rs 5.37 million in the previous comparable period.
The downward slide in the profitability was attributed to various factors but mainly to higher raw material prices. The domestic cotton season as well as New York futures started with abnormally high prices and touched the ever highest level of 3,600/- per maund.
The average cost of cotton for the whole year's booking for the company works out to Rs 3,200/- per maund. At the same time yarn prices could not follow commensurate to the steep rise in cotton prices. Hence caused heavy losses to the textile spinning sector.
Weaving on the other hand was in less precarious situation but this also suffered losses due to exorbitant, rise in cotton price fuelling the rise in yarn prices. But rise in yarn prices remained mismatch to the prevalent prices of cloth in the international as well as local markets.
According to the directors of the company the depression in textile sector (spinning and weaving) started with 9/11 incidence and intensified with Iraq war and Sars virus which still continue to overshadow the international trade.
The company loss has further aggravated its accumulated deficit and has eroded its equity to a large extent.

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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:             221.05       221.05

Accumulated (Loss):               (141.20)    (130.61)

Shareholders Equity:                79.85        90.44

Surplus on Revaluation of

 Fixed Assets:                     260.24        74.81

Directors Bridge Finance

 & Loan:                            35.62        21.91

Other L T Debts:                   169.93       157.86

Deferred Liabilities:               57.41        56.71

Current Liabilities:               640.52       316.47

Tangible Fixed Assets:             636.99       415.64

L T Security Deposits

 & Deferred Costs:                  16.20        17.79

Current Assets:                    590.38       284.77

Total Assets:                    1,243.57       718.20

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Profit & Loss A/c For The

 Half Year Ended            March 31 2004         2003

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Sales:                             542.05       408.41

Gross Profit:                       26.83        45.50

Operating Profit:                    5.26        29.24

Other Income:                           -         0.76

Financial (Charges):               (18.00)     (22.64)

(Loss)/Profit Before Taxation:     (12.74)        7.36

(Loss)/Profit After Taxation:      (10.59)        5.37

(Loss)/Earning Per Share (Rs):       0.70         0.24

Share Price (Rs) on 15-09-04:        4.85            -

Price/Earning Ratio:                 6.92            -

Book Value of Share (Rs):            3.61         4.09

Debt/Equity Ratio:                  31:69        46:54

Current Ratio:                       0.92         0.90

Gross Profit Margin (%):             4.95        11.14

Net Profit Margin (%):              (1.95)        0.99

R.O.A (%):                           0.85         0.75

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