During the half year ended March 31, 2004, the company has been able to bring turn around in the performance by posting profit against loss in the same period last year. But profit is so thin that it has barely impacted on the relatively huge accumulated deficit.
The company is listed on Karachi Stock Exchange. However, even this small profit has provided confidence to the investors which can be seen from the market value of its share which appreciated from below par value at Rs 6 per share to Rs 17.65 per share during the last one year.
The closing price of its share on 27th August 2004, was in the sum of Rs 15.55 from carrying 55.5% premium over the par value. The auditors of the company in their Review Report to the members have made certain observation about the magnitude of its accumulated loss and the excess of current liabilities over current assets.
At the same time they also acknowledged that despite these facts, the company is confident that the above factors are temporary and company will continue to carryout profitable operations and thus continue as a going concern.
The auditors further informed that the sponsors also continue their assurance for arrangements of funds whenever needed is yet another factor to mitigate the doubt.
This is further evident from the fact the company is not in default of any loan or finance or any financial obligation. The directors also reported that the joint venture distillery project is expected to be in operation by March 2005.
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Performance Statistics (Million Rupees)
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Balance sheet -As At-
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March 31 September 30
2004 2003
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Share Capital-Paid-up: 63.89 63.89
Reserves: 134.25 134.25
Accumulated (Loss): (265.71) (266.23)
Shareholders Equity: (67.57) (68.09)
Unrealized Gain on Remeasurement of
L.T Investments: 155.97 127.79
L.T Debts: 260.17 222.85
Deferred Liabilities: 13.57 11.92
Current Liabilities: 649.19 355.49
Fixed Assets-Tangible: 280.14 286.64
L.T Investments: 178.64 141.41
L.T Loans & Advances: 0.05 0.07
L.T Deposits: 0.80 0.85
Deferred Tax Assets: 8.56 8.56
Current Assets: 543.14 212.43
Total Assets: 1,011.33 649.96
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Profit & Loss A/c For the
Nine Months Ended March 31 2004 2003
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Sales: 247.93 258.39
Gross Profit: 22.52 10.51
Operating Profit/(Loss): 8.69 (5.52)
Other Income: 7.88 10.27
Financial (Charges): (13.74) (30.57)
Profit/(Loss) Before Taxation: 2.10 (26.84)
Profit/(Loss) After Taxation: 0.52 (28.53)
Earnings/(Loss) Per Share (Rs): 0.08 (4.47)
Share Price (Rs) 28.08.2004: 15.55 -
Price/Earning Ratio: 1.94 -
Book Value of Share (Rs): (10.57) (10.65)
Debt/Equity Ratio: 75:25 79:21
Current Ratio: 0.84 0.60
Gross Profit Margin (%): 9.08 4.06
Net Profit Margin (%): 0.21 11.04
R.O.A: 0.05 4.39
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COMPANY INFORMATION: Chairman: Mohammed Faruque; Chief Executive: Mahmood Faruque; Director: Tariq Faruque; Company Secretary: Mohammad Latif Qureshi; Registered Office: Modern Motor House; Web Address: N.A; Factory: Jamrao Distt Mirpurkhas.