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.
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Performance Statistics (Million Rupees)
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Balance sheet -As At-
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March 31 June 30
2005 2004
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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)
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Nine Months ended March 31, 2005 2004
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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
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Ratios:
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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 -
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