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

Eighteen years ago this textile spinning company was incorporated in the province of Punjab having its registered office situated at Raja House Near Makki Masjid Chackwal. Both its head office and factory are located 6 kilometer Jhelum Road Chakwal.
The company is engaged in the business of textile spinning. The note annexed to the account under review says that "Deposit for right shares directors' in the sum of Rs 24.45 million represents amount received in advance from sponsor shareholders for proposed issue of right shares.
The Securities & Exchange Commission of Pakistan (SECP) has recommended that this amount should not be shown as part of equity.
However the company has classified this amount as part of equity under the provisions of paragraph 65 of Framework to the International Accounting Standards (IAS) which states that funds confirmation from all above contributors that the amounts contributed will wholly be used towards a subsequent issue of right shares and that no refund or repayment while demanded hence it is not considered as a liability.
During the FHY 2003-04, the company registered sales at Rs 447.78 million (FHY 2002-03 Rs 346.15 million), gross profit at Rs 24.12 million (FHY 2002-03: Rs 20.56 million) and operating profit at Rs 14.26 million (FHY: 2002-03: 10.20 million) showing enhanced performance.
Financial charges slashed by 3.15 million rupees and operating expenses were on the lower side. Despite all these improved operating results, they could meet breakeven with nominal pretax profit at Rs 0.77 million as against pretax loss of Rs 5.90 million booked in the same period last year.
The bottom line remained in the red in both the periods under comparison. Nevertheless the directors are confident to improve quality of yarn in Unit No 2. In this regard, 12 additional sets of Ring Spinning Frames will be imported from Shanghai P&E Import & Export Co Ltd.
The prices of PC yarn and cotton yarn are improving in the local markets which will improve profitability of the company. Prices of polyester fibre is also improving.

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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:              75.60        75.60

Deposits for Right Shares:          24.45        24.45

Accumulated (Loss):                 (0.90)      (2.12)

Shareholders Equity:                99.15        97.93

Surplus on Revaluation

 of Fixed Assets:                  172.60       176.91

L T Debts:                         142.55       144.04

Deferred Liabilities:                2.55         2.19

Current Liabilities:               300.01       128.81

Fixed Capital Expenditure:         399.49       410.82

L T Deposits:                        0.16         0.16

Current Assets:                    317.21       138.90

Total Assets:                      716.86       549.88

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Profit & Loss A/C For

 The Half Year Ended        March 31 2004         2003

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Sales:                             447.78       346.15

Gross Profit:                       24.12        20.56

Operating Profit:                   14.26        10.20

Other Income:                        0.06         0.59

Financial (Charges):               (13.54)     (16.69)

Profit/(Loss) Before Taxation:       0.77         5.90

(Loss) After Taxation:              (3.08)      (9.32)

Earning Per Share (Rs):             (0.41)      (1.23)

Share Price (Rs) on 20-09-04:       20.09            -

Price/Earning Ratio:                   (-)           -

Book Value of Share (Rs):           13.12        12.95

Debt/Equity Ratio:                  34:66        38:62

Current Ratio:                       1.06         1.08

Gross Profit Margin(%):              5.39         5.93

Net Profit Margin (%):               0.69       (2.69)

R.O.A:                              (0.43)      (1.69)

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