Automobile Parts & Accessories Assembler: ALLWIN ENGINEERING INDUSTRIES LIMITED - Nine Months Ended March 31 2004

The company is one of the constituent members of a large Pakistani Conglomerate Atlas Group which has diversified interest in Honda cars Honda Motor Cycles, insurance, investments, banking, office equipment, car battery, lubricants, asset management manufacturing of automotive parts power product.
The oldest enterprise of the group is Muslim Insurance Company, which was founded by Dr Sir Muhammad Iqbal in 1934. Allwin Engineering Industries is also relatively very old company as it was incorporated 41 years ago in 1963 as a private limited company. It was converted into public limited company in July 1966.
It is engaged in manufacturing of components and parts for automotive vehicles and tractors. The automotive sector has witnessed high growth and with that the business of the company has also increased. During nine months ended March 31, 2004 (9M 2003-04) the sales turnover of the company shot up by Rs 80.66 million to Rs 347.73 million (9M 2002-03: Rs 267.07 million).
Gross Profit increased to Rs 59.12 million from Rs 41 million. Gross margin too registered moderate increase despite significant increase in prices of raw material particularly during the last six months. It is anticipated that full impact of the increase in cost of sales is likely to be felt in the 4th Quarter of the FY 2003-04.
The management emphasised that the improvement in gross profit was due to both increase in higher volume sales as well as better sales mix. The company has been able to reduce financial charges by Rs 3.9 million. On the other hand, its operating and other expenses escalated by Rs 4.27 million.
While sales grew by 30% pretax profit registered steep rise by 32.45% as compared to the same period last year.

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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:              49.35        49.35

Deposit For Right Shares:           70.00        70.00

Accumulated (Losses):              (34.02)     (49.19)

Shareholders Equity:                85.33        70.16

Surplus on Revaluation

 Of Fixed Assets:                  118.68       118.68

L T Debts:                         101.94        74.70

Deferred Liability:                  9.73         8.31

Deferred Taxation:                  18.06        10.26

L T Deposits:                        0.73         1.08

Current Liabilities:               147.24       127.50

Tangible Fixed Assets:             295.08       269.41

L.T Loans:                           0.55         0.39

L.T Deposits:                        1.96         1.99

Deferred Cost:                       3.70         5.38

Current Assets:                    180.42       133.52

Total Assets:                      481.71       410.69

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Profit & Loss A/c For the

 Nine Months Ended          March 31 2004         2003

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Sales:                             347.73       267.07

Gross Profit:                       59.12        41.00

Other Income:                        0.44         1.10

Operating Profit:                   32.90        19.70

Financial (Charges):                (8.18)     (12.05)

Profit Before Taxation:             24.72         7.65

Profit After Taxation:              15.17         3.60

Earnings Per Share (Rs)              3.07         0.73

Share Price (Rs) on 18-8-04:        25.20            -

Price/Earning Ratio:                 8.21            -

Book Value of Share (Rs):           17.29        14.22

Debt/Equity Ratio:                  33:67        28:72

Current Ratio:                       1.22         1.05

Gross Profit Margin (%):            17.00        15.35

Net Profit Margin (%):              4.3 6         1.35

R.O.A (%):                           3.15         0.88

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