Its associated company International General Insurance Co of Pak Ltd owned 3.25%. Another associated company Treet Corporation Ltd had 17.96% stake in its equity.
In 1960, the company was incorporated in the province of Sindh as a private limited company. In 1986 it was converted as public limited company and listed Karachi Stock Exchange. In 1987 it was listed at Lahore Stock Exchange.
On 30th July 2004, the closing quotation of its 10-rupee share was Rs 57.50. During the last one year the market value of the share substantially appreciated to Rs 66 from Rs 51 per share. But there was not much turnover of the share as during January-July 2004, only 33 thousand shares changed hands.
The principal activity of the company is the manufacture and sale of toilet and washing soaps. Its manufacturing facilities are located at Link Hali Road Hyderabad.
Since 2001 company wide plan of improvement had started and part of which was the balancing, modernisation and replacement (BMR) to make the company cost efficient.
After the acquisition and replacement of the boiler in year 2002, the energy cost reduced by nearly 25%. It was also planned last year to acquire new finishing lines for expansion of the soap making plant and to remove the bottlenecks in the flow of manufacturing process. It was reported last year that annual production capacity was rated at 9,500 tons of soap.
The company had utilised 73% of the capacity in the last financial year. Due to growing competition, depressed market and easy availability of foreign brands of soaps the capacity was not fully utilised.
Hence economies of scale could not be availed. Last year's report gives a large figure of imported/smuggled soap in the country and these were to the extent of 10,000 tons.
The company's sales revenue has been trending upward since FY 1999-2000 barring year 2000-2001 when sales were relatively down.
The year 1999-2000 also saw turnaround from consecutive loss to profit. During the period under review, the company registered sales at Rs 509.85 millions (9M 2002-03: Rs 467.24 millions) registering 9.1% growth in sales over the same period last year (SPLY).
The growth may be termed commendable decrease the company faced tough competition from abundant availability of smuggled and cheaper brands of soaps.
Despite very high raw material prices gross margin was almost identical to SPLY. The company's profit was 30% higher.
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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: 40.00 40.00
Reserves And Surplus: 60.55 37.66
Shareholders Equity: 100.55 77.66
Surplus on
Revaluation of F/Assets: 23.65 24.95
L.T Debts: 2.01 3.88
L.T Deposits: 0.48 0.48
Deferred Liabilities: 43.14 41.72
Current Liabilities: 150.48 127.61
Fixed Assets-Tangible: 118.23 68.26
Trade Marks-At Cost: 0.47 0.47
L.T Deposits: 2.35 2.17
Deferred Taxation: 3.50 3.04
Loans & Advances To Employees: 0.41 0.33
Current Assets: 195.35 202.03
Total Assets: 320.31 276.30
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Profit & Loss A/C For Nine Months Ended
March 31 2004 2003
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Sales Net: 509.85 467.24
Gross Profit: 112.48 105.11
Other Income: 4.47 1.55
Financial (Expense): (2.47) (2.25)
Profit Before Taxation: 33.03 26.85
Profit After Taxation: 21.59 16.59
Earnings Per Share (Rs): 5.40 4.15
Share Price (Rs) on 30/07/04 - 57.50
Price Earning Ratio: 10.65 -
Book Value of Share (Rs): 25.14 19.42
Debt/Equity Ratio: 2:98 3:97
Current Ratio: 1.30 1.58
Gross Profit Margin (%); 22.06 22.50
Net Profit Margin (%): 4.23 3.53
R.O.A: 6.74 6.00
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COMPANY INFORMATION: Chairman: Syed Wajid Ali; Chief Executive Officer: Syeda Feriel R. Ali; Director: Kamal Shoaib; Company Secretary & Chief Financial Officer: Sadaqat Ali; Registered Office 3rd Floor Kandawala Building M.A. Jinnah Road Karachi 74400. Web Address: N.A. Factory: Link Hali Road Hyderabad-7100