Automobiles Assemblers: Ghandhara Nissan Limited - Nine Months Ended March 31 2005

As per the Directors' Report these are the first third quarterly accounts of Ghandhara Nissan Limited (GNL) after merger into it of Ghandhara Nissan Diesel Limited (GNDL), a sister company incorporated in 1985 as a public company, with principal activity of assembly and progressive manufacture of Nissan trucks and buses in Pakistan.
The shareholders of GNDL have been issued shares of GNL in an amount of Rs 300 million and with this the paid up capital of GNL has risen from Rs 150 million to Rs 450 million.
During the period ended March 31, 2005 the company earned a gross profit of Rs 194 million from net sales of Rs 2140 million. Profit after tax was Rs 130 million, which as related to equity works out at 21 %. The results of the period under review reflect the operations of the merged company whereas the results of last year's corresponding period were of GNL prior to the merger of GNDL. GNL's gross and operating profit margins for the period under review are low but positive and there is hope of better results in future.
After launch of Nissan Sunny Passenger Cars and SUVs in built-up condition, the company is said to be receiving positive response from customers and dealers. According to the Directors' Report, the sale of Trucks and Buses has shown an increase of 41 % over the sale of the corresponding period last year. Total number of Trucks and Buses sold up to March 31, 2005 were 927 units as against 658 units during the corresponding period of last year.
The company has witnessed 50 % increase in its total assets from Rs 1716 million as at June 30, 2004 to Rs 2577 million as on March 31, 2005. Current ratio is above one. Debt equity ratio as on March 31, 2005 has improved to 51:49 as against 57:43 as on June 30, 2004. The shareholders equity is inclusive of large Surplus of Revaluation of Fixed Assets. During the period under review the Transactions with the Related Parties were only at Rs 67 million as against Rs 335 million for the corresponding period last year. Performance statistics are enclosed.

======================================================

Performance Statistics                (Million Rupees)

======================================================

Balance sheet                                  -As At-

======================================================

                                 March 31      June 30

                                     2005         2004

======================================================

Share Capital-Paid-up:            450,025      450,025

Capital reserve:                   40,000       40,000

Revenue Reserves:                  -2,101            0

Un-appropriated Profit:          -228,716     -376,975

Equity-Basic:                     259,208      113,050

Surplus on Reval. of F. Assets:   355,310      373,520

Total Equity:                     614,518      486,570

Non-current liabilities:          637,277      656,382

Capitalization:                 1,251,795    1,142,952

Current Liabilities:            1,325,177      572,722

Total Liabilities and Equity:   2,576,972    1,715,674

Tangible Fixed Assets:            994,845    1,001,976

LT Investments and Deposits:        1,978        1,978

Stock-in-trade:                 1,044,450      483,147

Trade Debts:                        7,891        2,913

Current Assets:                 1,580,149      711,720

Total Assets:                   2,576,972    1,715,674

Ratios:

Current Ratio:                       1.19         1.24

Debt-Equity Ratio:                  51:49        57:43

Book Val./share - Rs:               13.66        10.81

Quoted Price- (22-6-05)- Rs:        17.50            -

Price / Book Value Ratio:            1.28            -

Income Statement:            (Rs in, 000)

------------------------------------------------------

Nine Months ended March 31,          2005         2004

------------------------------------------------------

Net Sales:                      2,139,970      109,253

Gross Profit:                     193,771       18,166

Operating Profit:                 129,875        9,801

Profit before Taxation:           120,244        5,092

Profit after taxation:            130,049        5,630

Cash Dividends %:                      0%           0%

Cash Dividend - amount:                0             0

------------------------------------------------------

Ratios:

------------------------------------------------------

Gross Profit to Sales:                 9%          17%

Operating profit to Sales:             6%           9%

Profit after tax to Sales:             6%           5%

Net profit to Equity - %:             21%           1%

ROA:                                   5%           0%

ROCE:                                 10%           0%

Dividend Payout Ratio:                 0%           0%

Earnings Per Share - (Rs):          2.89          0.13

Inventory turnover (times):         2.05          0.23

Receivable turnover (times):      271.19         37.51

Price/Earning Ratio:                6.06             -

Asset Turnover (times):             0.83          0.06

Days Inventory:                      178          1614

Days Receivable:                       1            10

Debt Service Coverage (times):     -0.95             -

======================================================

COMPANY INFORMATION: Chairman, Raza Kuli Khan Khattak; President: General Ali Kuli Khan Khattak (Retd.); Chief Executive: Ahmed Kuli Khan Khattak; Director: Chaudhry Sher Muhammad; Company Secretary: Mohammad Saleem Baig; Auditors: 1- M/s Hameed Chaudhri & Co, Chartered Accountants 2- M/s Muniff Ziauddin & Co, Chartered Accountants; Legal Advisors: Shaukat Law Associates; Registered Office: Ghandhara House, 109/2, Clifton, Karachi; Factory (Truck Car Plant): Port Bin Qasim, Karachi Web Address: Not Available.
Copyright Business Recorder, 2005