Chemicals: SARDAR CHEMICAL INDUSTRIES LIMITED - Nine Months Ended March 31 2004

The company is engaged in manufacturing of dyes and chemicals for leather, textile and paper industries. The products of Sardar Chemical Industries are mainly used by export oriented industries. It is a public limited company incorporated in NWFP.
Its registered office as well as manufacturing facilities are situated in the same premises at Gadoon Amazai Industrial Estate. It was listed at the Karachi Stock Exchange in 1994.
The price of its share on 12th October 2004, was quoted at Rs 9.50 which is slightly less than the par value. In September 2004, the price of the share ranged between Rs 9.35 and Rs 7.65 per share at the turnover of 290,500 shares. During the last one year the price of the share had moved much above the par value and its highest price was recorded at Rs 15 per share.
For the last two years the company had skipped profit distribution. For the Q3 2004 and for the whole nine months it has registered higher sales. While it has shown profit in the third quarter (Q3 2004) but it has booked loss (almost breakeven) three quarters for cumulative three quarters (9M 2003-04).
The Chief Executive of the company lamented that due to international "behaviour" sales were adversely affected.
The business environment remained grim as they had to reduce prices of their products to compete with other manufacturers and specially against imported/smuggled goods.
The directors, however, resolved to increase market penetration through enhanced service and quality. During the nine months under review, the company made break-even with nominal loss.

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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:              60.00        60.00

Share Premium:                      30.00        30.00

Un-appropriated Profit

(Accumulated Loss):                 (3.11)      (2.46)

Shareholders Equity:                 86.89       87.54

L.T. Debts:                           2.96        1.69

Current Liabilities & Provision:     65.50       67.31

Fixed Assets:                        46.81       46.78

L.T. Deposits:                        1.09        1.63

Current Assets:                     107.45      108.13

Total Assets:                       155.35      156.54

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Profit & Loss A/c For

 The Nine Months Ended March 31       2004        2003

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Sales:                               66.26       58.28

Gross Profit:                        15.78       15.57

Financial Charges:                   (4.31)     (6.50)

Operating (Loss):                    (0.57)     (2.99)

Other Income:                         0.25        0.02

(Loss) Before Taxation:              (0.32)     (2.97)

(Loss) After Taxation:               (0.65)     (3.26)

(Loss) Per Share (Rs):               (0.11)     (0.54)

Share Price (Rs) on 12-10-04:         9.50           -

Price/Earning Ratio:                  (-)            -

Book Value of Share (Rs):            14.48       14.59

Debt/Equity Ratio:                    3:97        2:98

Current Ratio:                        1.64        2.33

Gross Profit Margin (%):             23.81       26.71

Net Profit Margin (%):              (52.82)     (5.59)

R.O.A (%):                           (0.42)     (2.08)

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