By SHABBIR H. KAZMI
Updated Apr 14, 2001

The complexion of market changed during the week but continuity of an upward movement of KSE-100 index remains skeptical. The fear of T+3 system should no longer be there after the announcement of the names of the companies which have initially been placed under the system. The KSE-100 index is expected to move within the limits indicated be equities analysts.

MAHMOOD TEXTILE MILLS

A look at the annual accounts indicates year ending September 30, 2000 was a very good period for the Company. Its gross profit hiked from Rs 383.65 million for the year 1999 to Rs 680.74 million for the year under review and it also managed to contain financial charges. Profit after tax also increased from Rs 150.87 million for the previous year to Rs 421.258 million for the year 2000. As a result of higher profit the Board of Directors has proposed payment of 168.95 per cent dividend for the shareholders — amounting to Rs 168.5 million. The Company is winner of Export Merit Trophies and also ISO-9002 certified.

QUETTA TEXTILE MILLS

The Company has declared Rs 14.15 dividend per share for the year ending September 30, 2000. While profit after tax was Rs 110 million proposed dividend would amount to Rs 44 million. The Company seem to be under heavy debt burden. Financial charges for the year 2000 were Rs 117 million— even higher than those for the previous year. Another important observation is that other income declined substantially from nearly Rs 15 million for 1999 to Rs 524,995 only for the year under review. While sales for the year 2000 were lower than the previous year, gross profit improved from Rs 150 million to Rs 265 million during this period. This may be attributed to lower cost of raw materials during the year 2000.

MASOOD TEXTILE MILLS

The Company has posted Rs 69.479 million profit after tax for the year ending September 30, 2000 as compared to Rs 5.280 million loss after tax for the previous year. Operating profit amounted to Rs 56.82 million for the year 1999 and was not enough to take care of financial charges amounting to Rs 65.55 million. However, the Company managed to contain financial charges to Rs 51.555 million during the year under review. While the Company could not declare any dividend due to huge accumulated losses, it managed to bring down accumulated losses to Rs 178.867 million as at September 30, 2000. These losses will not allow the Company to pay dividend to its shareholders for many years to come.

GULISTAN TEXTILE MILLS

The Company has posted Rs 454 million operating profit for the year ending September 30, 2000 as compared to a profit of Rs 236 million for the previous year. However, profit after tax reduced to Rs 120 million because of financial and other charges amounting to Rs 218 million and provision for diminution value of shares and other charges amounting to Rs 119.6 million. The Board of Directors have recommended 50 per cent dividend to shareholders — amounting to Rs 63 million. It is a little disappointing state of affairs and the SECP must take a note of this.

AISHA COTTON MILLS

The Company has posted Rs 5 million profit after tax for the year ending September 30, 2000 as compared to Rs 117.8 million loss for the previous year. An important observation is that while gross profit for the year under review was Rs 36.9 million, financial charges alone amounted to over Rs 25 million — though lower than Rs 52.6 million for the previous year. Accumulated losses as at September 30, 2000 were Rs 572 million. There are serious doubts about economic viability of the Company. The chances of dividend payment to shareholders are almost nil.

MIAN TEXTILE INDUSTRIES

The Company has posted Rs 61.7 million profit after tax for the year ending September 30, 2000 as compared to a profit of Rs 2.9 million for the previous year. While operating profit for the year 2000 was Rs 119 million, financial chages amounted to Rs 53.5 million. There is a need to investigate the reasons for losses in the past. However, to avoid placement on defaulters' counter, the Board of Directors has recommended 7.5 per cent dividend. The sponsors and their associates have foregone their entire share of dividend. Still, the SECP should look into the affairs of the Company.

GULSHAN SPINNING MILLS

The Company has posted Rs 160.587 million profit before tax and other charges for the year ending September 30, 2000 as compared to a similar profit of Rs 26.5 million for the previous year. However, the provision for diminution value, which was Rs 1.3 million for the previous year, hiked to Rs 40 million for the year under review. Out of profit after tax amounting to nearly Rs 100 million, the Board of Directors has recommended 32.5 per cent dividend — amounting to Rs 41 million. It also appears that the Company suffers from excessive debt. Financial charges for the year 2000, were Rs 132 million. The SECP must investigate the reasons for higher financial charges.

MOVEMENT AT A GLANCE
SCRIP	HIGH (Rs.)	LOW (Rs.)	CLOSING  PRICE	TURNOVER  (SHARE MN)
PTCL	18.55	17.25	18.50	116,322,500
Hubco	21.55	20.40	21.50	115,684,000
Engro	59.60	55.60	58.90	11,892,400
SNGPL	10.75	10.00	10.75	8,153,500
Fauji	41.15	39.60	40.95	5,678,100
KESC	5.10	4.75	4.95	2,151,000
SSGC	9.60	9.10	9.60	727,000