During the week the KSE-100 moved upward but not without taking a few dips. Average daily trading declined by 28 per cent reflecting lower level of investors' interest to take long term commitments. Profit taking by institutional investors was also evident. All eye are set to see what President Pervez Musharaff says on the weekend, so far he has been able to handle such crises very aptly. The cessation in hostilities in the sub-continent is not only necessary for Pakistan and India but also important for the peace in the entire South Asian region.

The company has posted Rs 60.8 million profit after tax for the six months period ending December 31, 2001 and also announced 10 per cent interim dividend amounting to Rs 40 million. The company had posted Rs 50 million profit for the corresponding period of year 2000. The increase in profit was mainly due to higher income from subsidiary company, registering an increase from Rs 33.7 million to Rs 47.8 million. While local sales were more or less at the level of previous year exports declined. However, the company was able to curtail cost of goods sold from Rs 205 million to Rs 193 million.

The company has posted Rs 103.3 million profit after tax for the year ending September 30, 2001 as compared to a profit of Rs 51.7 million for the previous year. Higher profit was driven by increase in turnover and better control on cost of goods sold. Financial charges were also lower as compared to previous year. Though, the company was able to improve dividend payout from 30 per cent for the previous year to 50 per cent for the year under review, it amounted to Rs 29.7 million. It was simply because the company has a paid-up capital of Rs 59 million. Unappropriated profit as at September 30, 2001 amounted to Rs 253 million.

The company has posted Rs 15.5 million profit after tax for the year ending September 30, 2001 as compared to a profit of Rs 97.7 million for the previous year. The company paid 10 per cent dividend amounting to Rs 27 million for the year 2000 but the Board of Directors decided to skip dividend for the year under review. The main reason for the decline in profit appear to be higher cost of goods sold. There was also increase in administrative, selling and general expenses and financial charges. Sales increased from Rs 2,251.8 million to Rs 2,473.6 million but gross profit declined from 486.5 million to Rs 330.8 million. However, overall profit of company improved due to increase in non-operating income from Rs 11.4 million to Rs 74.4 million. Another factor which helped in further decline of profit was no provision for diminution in value of investments which was Rs 49 million for the previous year.

The company has posted Rs 57.7 million loss after tax for the year ending June 30, 2001. It had posted Rs 27.4 million loss for the previous year. The main reason for the hike in loss was a massive decline in revenue, coming down from Rs 36.5 million to about Rs 3 million. The meager revenue was not enough to cover expenditure amounting to Rs 28 million. Accumulated losses as at June 30, 2001 amounted to Rs 88.5 million as against a paid-up capital of Rs 100.00 million.

The company is yet another example of the group of textile companies which suffer due to out of proportion financial charges. It posted Rs 71.8 million gross profit for the year ending September 30, 2001. Out of this amount Rs 13 million went towards operating expenses and Rs 31.4 million towards financial charges. Despite posting a profit of Rs 23.8 million the Board of Directors preferred to skip payment of dividend, simply to cover accumulated losses. Accumulated as at September 30, 2001 amounted to Rs 251.6 million as against a paid-up capital of Rs 120 million. Last year the company had paid 10 per cent dividend amounting to Rs 1.147 million.

The company has posted Rs 10.3 million profit for the year ending June 30, 2001 as compared to a profit of Rs 18.2 million for the previous year. The reduction in profit was mainly due to substantial increase in cost of goods sold. Sales increased from Rs 573.5 million to Rs 622 million and cost of sales hiked from Rs 498 million to Rs 546 million. Gross profit was more or less at the level of previous year. Financial charges amounted to Rs 53 million were higher, amounting to Rs 44.6 million for the previous year.

Though the company had posted loss after tax for the year 2000 also, the quantum loss for the year ending June 30, 2001 increased from Rs 20 million to Rs 49 million. The level of discomfort can be gauged from the fact that in year 2001 sales were not sufficient to cover cost of goods sold resulting in a gross loss of Rs 221,572. The company had posted Rs 32 million gross profit for the previous year.