In addition to this source of enrichment for the shareholders, the marked value of share in the company has remained very high. At present it has been recorded at Rs 83.25 per share which is more than eight times of the par value. The management of the company has proposed to merge the company into Nishat (Chunian) Ltd and Nishat Mills Ltd.
The plants are located in the vicinity of Nishat (Chunian) Ltd, which is also the single largest buyer of the company's products. The effective date of merger was scheduled 01 October 2004 subject to the approval of scheme of arrangement by the Lahore High Court.
The special item on the recent AGM's Agenda was transmission of quarterly accounts of the company through website, which is www.umerfabrics.com.
Umer Fabrics is a public limited company incorporated in the province of Punjab having its registered and head offices located at 31-Q, Gulberg-II Lahore.
It was listed on Karachi Stock Exchange in 1989. Umer Fabrics' Shares are also quoted on Lahore Stock Exchange.
The company is principally engaged in the manufacturing and trading of yarn. Its manufacturing facilities are located at 49th kilometer, Lahore Multan Road, Bhai Pheru Tehsil Chunian District Kasur.
The annual production capacity of the plant has been rated at 15.462 million kgs of yarn after conversion into 20/s count last year the capacity of the plant was slightly lower at 15.272 million kgs.
In both the years under comparison the capacity utilisation remained high at around 98.5%.
During the financial year 2003-04, the period under review the company made addition in the fixed assets at a capital outlay of Rs 13.78 million (FY 2002-03: Rs 83.25 million).
The company's long term investment portfolios comprises investment in the equities of Muslim Commercial Bank Limited (at cost Rs 68.945 million or at market value Rs 147.307 million) and Security General Insurance Company Limited (at cost Rs 5.25 million at market value at Rs 12.246 million).
Umer Fabrics Ltd shareholding at ten percent or more voting interest in the company comprises two institutions. DG Khan Cement Company Ltd owns 26.98% and Security General Insurance Company Ltd holds 19.52% of the company's stock. In addition, the company directors, their spouses, etc, held only 1.32% of the company's stock.
The share in the company has remained highly priced during the last one year as it remained within the price band of Rs 28.60 and Rs 84.50 per share. On 5th January 2005, the closing price of Umer Fabrics Share was recorded at Rs 83.25 per share, which is more than eight times of the par value of Rs 10.
It has been reported that as per the directors of Central Board of Revenue and SECP the financial year of companies in the textile industry will close on 30 June 2005. Hence for the company also, the next financial year will be of nine months.
The financial backbone of the company remained robust as can be seen from the financial ratios appended with this write-up.
There has been no long term debts in both the years under comparison. Current ratio shows easy liquidity position as this ratio works out to 2.25 which is more than double of the benchmark ratio of "one" book value per share at 61.37 is more than six times of the par value. Both inventory and receivables hold optimum position as receivables are for nearly for only three weeks and inventory for about five weeks.
The balance sheet is awash with cash as evidenced from the closing cash and bank balance at Rs 10.40 million, which increased from the opening balance of Rs 3.75 million.
During FY 2003-04, the period under review, the company generated sales in the sum of Rs 1.408 billion (FY 2002-03: Rs 1.318 billion) registering 6.9% growth. But this amount is not encouraging as it is only is third highest of the last 5 years.
The company posted net profit after taxation at Rs 107.60 million which is 21.5% drop as compared to the previous year's.
======================================================
Performance Statistics (Million Rupees)
======================================================
Balance sheet -As At-
======================================================
Sept 30
2004 2003
======================================================
Share Capital-Paid-up: 240.05 240.05
Reserves: 1,232.76 889.49
Shareholders Equity: 1,472.81 1,129.54
Deferred Tax: 24.46 24.65
Employees' Retirement Benefits: - 12.45
Current Liabilities: 626.81 662.00
Operating Fixed Assets-Tangible: 555.68 610.64
L T Investments: 159.55 129.07
L T Security Deposits: 1.41 1.47
Current Assets: 1,407.44 1,087.46
Total Assets: 2,124.08 1,828.64
Sales Profit & Pay Out
Sales: 1,408.55 1,317.67
Gross Profit: 147.54 202.04
Operating Profit: 93.90 151.03
Other Income: 83.79 79.43
Financial (Charges): (23.39) (45.41)
Depreciation: (61.76) (45.41)
Profit Before Taxation: 146.55 174.50
Profit After Taxation: 107.60 137.17
Earnings Per Share (Rs): 4.48 5.71
Dividend Cash Rs 1.50/Share
(2003: @2.50/Share): 36.01 60.01
Share Price (Rs) Dated 05/01/05: 83.25 -
Financial Ratios:
Price/Earning Ratio: 18.58 -
Book Value Per Share: 61.37 47.05
Price/Book Value Ratio: 1.36 -
Debt/Equity Ratio: 0:100 0:100
Current Ratio: 2.25 1.64
Assets Turn Over Ratio: 0.66 0.72
Days Receivables: 23 14
Days Inventory: 69 29
Gross Profit Margin (%): 10.47 15.33
Net Profit Margin (%): 7.64 10.41
R O A (%): 5.06 7.50
R O C E (%): 7.19 11.76
(A) Plant Capacity & Production (Million) Kgs
After Conversion into 20/s count yarn
Installed Capacity: 15.462 15.272
Actual Production: 15.233 15.040
Capacity Utilisation (%): 98.52 98.48
(B) Total Number of Spindles
Installed (Per Shift): 38,544 38,544
======================================================
COMPANY INFORMATION: Chief Executive: Mrs Ammil Raza Mansha; Director: Mian Hassan Mansha; Company Secretary: Abdul Aziz Shahid; Registered & Head Office: 31 Q, Gulberg II Lahore; Web Address: www.umerfabrics.com; Mills: 49Km, Lahore Multan Road Bhai Pheru Tehsil Chunian District Kasur.