After four consecutive years of losses the company has been able to post profit after taxation. However the accumulated deficit reached Rs 28.96 million, wiping out completely its paid up capital and capital reserve.
The surplus on the revaluation of land has shown positively effects which transformed negative equity to positive equity figure of Rs 65.27 million. But the external auditors expressed "other indicators may create doubt." It can also be observed that its financial charges have reduced and will further decrease as their bankers have further reduced markup with effect from July 1, 2003.
During the year, the company's attempt towards export diversification have yielded positive results. During the year admin expenses were contained.
The directors anticipated that the removal of excise duty and reduction in mark-up rate will also reflect positively on the company's operations.
Hashimi Can Company Limited is a public limited company incorporated in the province of Sindh. Its registered office is located at B/24 Sindh Industrial Trading Estate Karachi. The company was listed at Karachi Stock Exchange in 1962.
At present Hashimi Can Company shares are trading at Rs 6 per share at 40% discount to the par value of Rs 10. During the last 52 weeks the market value of the share marginally improved from Rs 5.45 to Rs 6.0 per share.
The company is primarily engaged in the manufacture of tin containers and processing of canned food.
As per table of categories of shareholders dated 30-6-2003 the directors of the company held 64.71% of the company's total 1.633 million shares.
National Bank of Pakistan Trustee's shareholding works out to 20.01% of the company's stock. Its 593 individual shareholders held 9.34% of the company's stock.
During the year ended 30th June 2003, (FY 2002-03) the year under review the company generated sales at Rs 60.39 million showing 10.06% increase over the previous year's sales of Rs 54.87 million.
The sales amount improved over the previous year's but it has reduced to 36.9% of Rs 163.38 million sales posted in the year 1998.
The company has two business segments ie Empty Can Department and Canned Food Department. Nearly 98.4% of total sales was generated by the Empty Can Department and remaining amount came from canned food department.
The directors reported that exports during the year increased, and they are further exploring export markets.
During the year under review, the company booked export sales at Rs 2.56 million as against export sales of Rs 1.60 million posted in the preceding year. As regards future outlook the directors they anticipate their business is likely to improve further subject to political stability.
They also stated that removal of excise duty and reduction in mark-up rate will also effect positively on the company's operations.
Their efforts towards reduction of mark-up have been successful. The mark-up has been further reduced from 12%, 8% with effect from 1st July 2003 which will definitely have positive effect on the future results of the company.
It has been also reported that the market share of the company has slightly improved though stiff competition with plastic substitutes continues. Admin expenses were contained and financial expenses were also down.
The company posted loss before taxation at Rs 5.70 million which shows drastic reduction from the preceding year's loss before taxation at Rs 9.34 million. However the bottom line escaped from going to the red because of favourable adjustment of Rs 6.01 million of prior year and the profit and loss account closed with net profit after taxation at Rs 0.28 million.
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Performance Statistics (Million Rupees)
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30 June 2003 2002
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Share Capital-Paid-up: 16.33 16.33
Capital Reserves: 1.67 1.67
Accumulated (Loss): (28.96) (29.24)
Shareholders Equity: (10.96) (11.24)
Surplus on Revaluation of Land F/A: 76.23 24.00
L.T Debts: 14.80 11.89
Current Liabilities: 55.64 54.61
Fixed Assets-Tangible: 100.17 43.23
L.T Loans & Deposits: 0.76 0.76
Current Assets: 34.78 35.27
Total Assets: 135.71 79.26
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Sales, Profit & Pay Out
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Sales: 60.39 54.87
Gross Profit: 7.89 7.51
Operating (Loss): (1.86) (2.93)
Other Income: 0.73 0.45
Financial (Charges): (4.57) (5.97)
(Depreciation): (1.33) (2.40)
(Loss) Before Taxation: (5.70) (9.34)
Prior Year Adjustment: 6.01 -
(Loss)/ Profit After Taxation: 0.28 (9.94)
Accumulated (Loss) B/F: (29.24) (19.30)
Earnings Per Share (Rs): 0.17 6.09
Share Price (Rs) Dated 29.02.2004: 6.00 -
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Financial Ratios
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Price/Earning Ratio: 35.29 -
Book Value Per Share: (6.71) (6.88)
Price/Book Value Ratio: (-) -
Debt/Equity Ratio: 18:82 48:52
Current Ratio: 0.62 0.64
Asset Turn Over Ratio: 0.44 0.69
Days Receivables: 54 76
Days Inventory: 72 69
Gross Profit Margin (%): 13.06 13.68
Net Profit Margin (%): 0.46 (18.11)
R.O.A (%): 0.21 (12.54)
R.O.C.E (%): 0.35 50.58
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Plant Capacity & Production:
"The production capacity of the factory can not be fairly determined as it depends on different orders procured for production of a vast variety of cans".
COMPANY INFORMATION: Chairman/Chief Executive: Munawar A. Malik; Managing Director: Zaheer A. Malik; Director/Company Secretary: Asif A. Mufti; Registered Office: B/24 Sindh Industrial Trading Estate Karachi.
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