Sugar & Allied Industries: PANGRIO SUGAR MILLS LIMITED - Half Year Ended March 31 2007

It is a public limited company incorporated in Pakistan having its registered office located at Lakson Square No 1, Sarwar Shaheed Road Karachi. The company is primarily engaged in the manufacture and sales of sugar.
Its manufacturing facilities are located at Deh Rajauri II Taluka Tando Bago, province of Sindh. It was listed on the Karachi Stock Exchange in 1987. At present the quotation of its shares have been published on the defaulters list of KSE under listing regulation No 32(1)b. According to this Rule the company did not declare dividend for five years from the date of last declaration. On July 12, 2007, the closing price of the share was quoted at Rs 5.80 per share at 42% discount to the par value of Rs 10/=.
During first of the financial year October 2006 to March 2007 (HYD 06-07) the company generated sales at Rs 360.99 million as against Rs 573.19 million posted in the same period last year (SPLY) registering decline by 37%. Gross profit amount for HYM 06-07 further skidded and the decline in this case was by 50%. Pretax profit amounted to Rs 18.11 million which was only 39% of the figure posted in the same period last year. Pangrio Sugar Mills sugarcane crushing season 2006/07, started on November 15, and lasted for 145 days as against previous crushing season 2005-06 for 101 days.
Sugar recovery percentage and production was higher than previous season. As regards directors' comment about lower profitability, in the period under report, profitability, though not substantial as indicated in the half yearly accounts are setting new and welcome trends in company's operational performance.
The note annexed to the accent points out about the reduction in accumulated deficit to the extent of profit earned during the period under review. It also states that owing to liquidity crunch funds amounting to Rs 58 million were injected on long term basis free of interest. It also gives further information liability due to banks and further times allowed for repayment. The information is positive and gives hope to of substantial reduction of accumulated loss.

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Performance Statistics                         (Mln Rs)

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Balance Sheet ---As At---       March 31   September 30

                                    2007           2006

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                              Un-audited        Audited

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Share Capital Paid-up:            108.50         108.50

Accumulated (Loss):              (830.00)      (850.56)

Shareholders Equity:             (721.50)      (742.06)

Surplus on Revaluation

 of Fixed Assets:                  83.82          88.17

L.T. Debts:                       466.21         441.54

Staff Gratuity:                     3.93           3.93

Current Liabilities:              504.08         423.44

Fixed Assets Tangible:            168.50         177.19

L.T. Deposits:                      0.13           0.13

Current Assets:                   167.91          37.70

Total Assets:                     336.54         215.02

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Profit & Loss A/c for Half Year Ended

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---March 31---                      2008           2006

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Sales:                            360.99         573.19

Gross Profit:                      28.13          56.25

Operating Profit:                  18.53          48.99

Finance (Charges):                 (0.42)        (2.70)

Other Income:                         -            0.01

Profit Before Taxation:            18.11          46.29

Profit After Taxation:             16.21          43.29

Earnings Per Share (Rs):            1.49           3.99

Share Price (Rs) on 12/07/07:       5.80              -

Price/Earning Ratio:                3.89              -

Debt/Equity Ratio:                   (-)            (-)

Current Ratio:                      0.33           0.09

Gross Profit Margin (%):            7.79           9.81

Net Profit Margin (%):              4.49           7.55

R.O.A. (%):                         4.81          20.13

R.O.E. (%):                          (-)            (-)

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