Automobile Parts & Accessories: DEWAN AUTOMOTIVE ENGINEERING LIMITED (Formerly Allied Motors Ltd) - Year Ended 30-06-2005
Two year's ago Allied Motors Ltd was acquired by the industrial group Dewan Mushtaq Group and renamed Dewan Automotive Engineering Ltd Its prime business is assembly-cum-progressive manufacture and sale of tractors and trading of parts.
Its registered office is in Karachi (Sindh) and factory in Balochistan at Hub Industrial Trading Estate. Its "audited" account for the year 2004-05 ended 30-6-2005 shows net loss resulting in negative equity. The Annual Report had informed that the company will be marketing a world renowned brand tractors Euro Leopard and the directors visualised a good volume of business.
The third quarter ended March 2005-06 "un-audited" account has been published on its website www.dewangroup.com.pk. In the nine months period of the current year 2005-06, the company has also incurred after tax loss. The nine-month report informed that Dewan Foton Euro Leopard Tractors have arrived from China and has been successfully launched in the local market. The tractors have been procured under special duty free programme announced by Government of Pakistan. The assembly of this brand of tractors was scheduled in March 2006.
Dewan Automotive Engineering Ltd (DAEL) formerly known as Allied Motors Limited, is a public limited company was incorporated in May 06, 1982 and commercial production in August 1983.
It was listed on Karachi Stock Exchange (KSE) in 1986 and at present its shares are quoted on defaulter counter due to KSE listing rule No 32(1)(b). The rule stipulates, "failed to declare dividends/bonus for 5 years from the date of last declaration." Its shares are also quoted on Lahore Stock Exchange.
During the last one year, the market value of the company's share increased from Rs 8.0 per share to Rs 16.90 per share. On 2nd June 2006, the closing price of the share was quoted at Rs 13 per share which carries 30% premium over the par value.
The company's business is the assembly-cum progressive manufacture and sale of tractors and trading of parts and implements related thereto.
DAEL was acquired by the Dewan Mushtaq Group on 14th April 2004. The previous name of the company was changed from August 16, 2004.
Dewan Mushtaq Group is one of the renowned industrial conglomerates of Pakistani having annual turnover of Rs 30 billion. The group has diversified interests in textile, sugar, automobile assembly and parts, polyester staple fibre and has also equity participation in a private bank.
Among the group companies the following are listed on stock exchanges in Pakistan: Automobile Manufacturing: companies namely: Dewan Farooq Motors Ltd; Dewan Automotive Engineering Ltd; One of the largest polyester staple fibre; Dewan Salman Fibre Ltd; Sugar Manufacturing Companies; Dewan Sugar Mills Ltd; Dewan Khoski Sugar Mills Ltd (Badin); Textile Companies namely: Dewan Textile Mills Ltd; Dewan Khalid Textile Mills Ltd; Dewan Farooque Spinning Mills Ltd; Cement Companies; Pakland Cement Ltd; Saadi Cement Ltd.
As regards the company's pattern of shareholding on June 30, 2005, its 1,118 individual shareholders held 18.8% of the company's total nine million shares of Rs 10 each. Among the institutional investors 20 joint stock companies held 67.63% and four financial institutions owned 11.96% of the company's stock.
The new management is looking into possibility of a new tractor brand and start such other manufacturing operation which has industrial synergy with existing business.
As regards the company's financial audited accounts for the year ended June 30, 2006, the statutory auditors have made their observations without qualifying their opinion. They referred to note 2.20 to the financial statements which indicates that the company incurred a net loss of Rs 43.227 million during the year ended June 30, 2005 and as of that date it has accumulated losses of Rs 284 million which has resulted in negative equity of 97.97 million.
These accounts have been prepared under going concern assumption on the basis that the management is in the processed of finalising an agreement to induct a new product which will be viable and will meet the demand of local market. Further the company's ability to arrange funds whenever needed, and without any default for any financial obligation is yet another positive factor.
======================================================
Performance Statistics (Million Rupees)
======================================================
30th June 2005 2004
======================================================
Share Capital-Paid-up: 90.00 90.00
Reserves: 96.09 96.09
Accumulated (Loss): (284.06) (245.90)
Shareholders Equity: (97.97) (59.81)
Surplus on Revaluation of F/A: 47.09 52.15
L.T. Debts: 231.25 123.00
Deferred Liabilities-Gratuity: 0.62 0.81
Current Liabilities: 46.69 64.66
Fixed Assets: 105.78 91.79
Intangible Assets: 6.23 -
L.T. Deposits: 0.36 0.29
Current Assets: 115.31 88.73
Total Assets: 227.68 180.81
------------------------------------------------------
Sales, Profit & Pay Out
------------------------------------------------------
Sales-Net: 14.08 31.29
Gross (Loss): (16.26) (16.47)
Finance (Cost): (6.36) (5.70)
Operating (Loss): (43.85) (38.83)
(Depreciation): (-) (0.22)
Other Income: 0.76 0.56
(Loss) Before Taxation: (43.12) (38.26)
(Loss) After Taxation: (43.23) (38.42)
(Loss) Per Share (Rs): (4.80) (4.27)
Share Price (Rs) on 02/06/06: 13.00 -
------------------------------------------------------
Financial Ratios
------------------------------------------------------
Price/Earning Ratio: (-) -
Book Value Per Share: (31.56) 27.32
Price/Book Value Ratio: (-) -
Debt/Equity Ratio: (-) (-)
Current Ratio: 2.47 1.37
Assets Turn Over Ratio: 0.06 0.17
Days Receivables: 97 30
Days Inventory: 986 480
Gross Profit Margin (%): (115.48) (52.64)
Net Profit Margin (%): (307.03) (122.28)
R.O.A. (%): (18.99) (21.24)
R.O.C.E. (%): (23.89) (33.07)
------------------------------------------------------
Plant Capacity & Production (Number of Tractors)
------------------------------------------------------
Sanctioned Capacity: 6,000 6,000
Actual Production-Tractors: 52 74
Capacity Utilization (%): 0.86 1.23
======================================================
COMPANY INFORMATION: Chairman: Dewan Zia-ur-Rahman Farooqui; Managing Director/Chief Executive: Dewan Muhammad Yousuf Farooqui; Director: Dewan Abdullah Ahmed; Company Secretary: Syed Moonis Abdullah Alvi; Registered Office: Dewan Center, 3-A, Lalazar, Beach Hotel Road, Karachi 74000 (Sindh); Web Address: www.dewangroup.com.pk; Factory: Hub Industrial Trading Estate, Hub District Lasbela (Balochistan)
Comments
Comments are closed.