KARACHI, Dec 14: It may have almost gone unnoticed that the company has released the Annual Report and audited accounts for the year ended September 30, 2001, in just under six week of the close of the accounting year. The law requires accounts to be furnished not later than six months. And majority of the textile mills are known to make the most of it. Most accounts would come lazily in March.

The Regulator now seeks to cut down the maximum period to four months. If there is any opposition from corporate quarters, Sana could be presented as a befitting case. If this company could do it in under two months; even the four months would seem eternity.

The company, therefore, also does not crowd its annual general meeting with scores of others on the last few days of the quarter. One of the reasons that most defaulting companies prefer the last few days of every quarter for holding their AGMs, most investors suspect, could be to dissuade larger participation of members and so to avoid volley of embarrassing questions from shareholders. But due to its record of profits and hefty dividends, Sana Industries has decided to defy the herd and call its meeting on the first day of the new year: January 01, 2002, to be held at its registered office in Karachi.

The company had maintained cash dividend at fabulous 70 per cent for all the four years, from 1994 through 1997 and raised it to 75 per cent for 1998. After a trimmed payout for last two years, the cash dividend for the latest year ended Sept. 30, 2001 has been raised to 70 per cent.

For the latest year ended September 30, 2001, Sana Industries posted pretax profit of Rs45.1 million, up from Rs40.3 million the previous year. After-tax profit increased to Rs29.9 million, from Rs25.7 million. Sales represented growth of 8.9 per cent to Rs382.9 million, from Rs351.6 million. Gross profit increased to Rs53.9 million, from Rs51.4 million with the gross margin at 14.07 per cent, from 14.63 per cent. Net profit before-tax as percentage to sales improved to 11.8 per cent, from 11.5 per cent. Effective tax rate was up to 36.5 per cent, from 33.8 per cent. Earning per share after tax increased to Rs7.48, from Rs6.43.

Nearly 76 per cent shares in Sana Industries were held by 307 individuals at end-September 2001. Other interests in the equity included: Three financial institutions with 14.27 per cent and one foreign investor with 8.8 per cent.

The mill located in Hub Industrial Trading Estate, has 21,872 spindles with the capacity to spin 4.7 million kg of 30/s count yarn. Production during the year under review stood at 3.500 m.kg, compared to 3.487 m.kg the previous year.

Paid-up capital of the company remained unchanged at Rs40 million. General reserves stood at Rs137 million and accumulated profit Rs1.5 million. Break-up value of the share worked out at Rs44.75. Stocks rolled lower to Rs48.6 million, from Rs52.7 million at end-September 2000. Trade debts were about unchanged at slightly over Rs100 million at close of both the years.

Including the operating assets of the book value of Rs59.4 million, total assets of Sana Industries Limited at end-September 2001 stood at Rs225.8 million.

Looking forward, directors said in their report that the events following September 11, had globally intensified the gloom of uncertainty and recession. Whether the exports of textile goods from Pakistan would be able to sustain their present level or would they even surpass was pre-mature to predict, chief executive Mohammed Younus Nawab wrote in the report on November 10.

He observed that although the European community had waived several import levies and the Americans were also indicating an increase in quota and abolishment or reduction of import duties for imports from Pakistan, but it was to be seen if those steps would yield any significant increase in exports. The appreciation of rupee against the dollar also served as a major deterrent to growth of exports. “Though Sana Industries itself is not directly involved in exports but due to market forces, any change in the trend of exports, has a significant bearing on the future sales and profitability of the company,” the CEO said.