Textile Spinning: AYESHA TEXTILE MILLS LIMITED - Half Year Ended March 31 2004

It is a public limited company incorporated in the province of Punjab having its registered office located at 97-B Gulberg II Lahore. It is one of the constituent members of Ayesha Group of Companies. Ayesha Textile Mills shares are quoted on stock exchanges in Karachi and Lahore.
The company is primarily engaged in the manufacturing and sale of cotton and PC yarn. Its manufacturing facilities are located at two places in District Sheikhupura in the province of Punjab. Unit I is located on Sheikhupura-Lahore Road whereas Kharianwala Unit II is located at Sheikhupura-Faisalabad Road.
During HY 2003-04, the period under review, the company installed another gas power generator of 1.540 kw at Kharianwala Unit which will further decrease power and fuel cost. During the period the company continued the import of modern machinery under BMR and expansion programme to improve the quality of yarn.
In this period there is commitment for letters of Credit established for capital expenditure at Rs 8.46 million.
Production converted into 20/s for the half year increased by 3.36% to 10.01 million kgs of yarn as compared to the corresponding period last year.
The company registered commendable growth in sales by 31.44% to Rs 1.059 billion from Rs 0.806 billion posted in the same period last year (SPLY).
Net local sales constituted 75.42% of the company's sales, while export sales comprised 23.12% and waste sales 1.46% of the company's sales.
Local sales rose by 49.24% whereas export sales reduced by 5.36%.
The growth in turnover was mainly attributable to upsurge in selling rates and quantity of yarn sold.
Average selling rates per 10 lb for the six months remained at Rs 555 compared with Rs 427 during corresponding period (last year) explained the chairman and chief executive of the company Muhammad Rafi.
Gross profit margin during HY 2003-04, dropped to 4.94% from 5.72% in the SPLY because of increase in the rise of price of raw cotton in local as well as international markets. The company posted small profit.

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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:              14.00        14.00

Reserve & Surplus:                 218.66       206.73

Shareholders Equity:               232.66       220.73

Surplus on Revaluation

 of Fixed Assets:                   44.21        44.21

Due to Associated

 Undertakings:                      15.06        14.65

Loan From Directors:                47.05        47.05

Other L.T Debts:                   157.64       153.77

Deferred Liabilities:               20.25        21.31

Current Liabilities:               888.22       391.81

Tangible Fixed Assets:             508.40       524.28

L T Investment:                      3.50         3.50

L T Loans:                           1.37         1.29

L T Deposits:                        1.04         1.04

Current Assets:                    890.78       363.42

Total Assets:                    1,405.09       893.53

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Profit & Loss A/c For The

 Half Year Ended            March 31 2004         2003

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Sales-Net:                       1,059.84       806.35

Gross Profit:                       52.37        46.14

Operating:                          38.15        26.91

Other Income/(Loss):                 0.44       (0.12)

Financial & Other (Charges):       (23.12)     (26.35)

Profit/(Loss) Before Taxation:      15.47         0.44

Profit/(Loss) After Taxation:       11.93      (11.72)

Earning/(Loss) Per Share (Rs):       8.52       (8.37)

Share Price (Rs) on 20-09-04:       52.00            -

Price/Earning Ratio:                 6.10            -

Book Value of Share (Rs):          166.19       157.66

Debt/Equity Ratio:                  32:68        32:68

Current Ratio:                       1.00         0.92

Gross Profit Margin (%):             4.94         5.72

Net Profit Margin (%):               1.13       (1.45)

R.O.A (%):                           0.85         1.31

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