CRESCENT COTTON
MILLS LIMITED
CORPORATE
BRIEFING SESSION
2024
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CRESCENT COTTON MILLS LIMITED
COMPANY PROFILE
BASIC INFORMATION ABOUT THE COMPANY
Date of incorporation | : | 07th day of March, 1959 |
Registration number | : | 0000984 |
National tax number | : | 0710139-2 |
Sales tax registration number | : | 04-03-2900-001-82 |
Phone number | : | 041-8752111-4, 041-8750363-4 |
Facsimile number | : | 041-8750366 |
E.Mail address | : | info@crescentcotton.com |
Website | : | crescentcotton.com |
BOARD OF DIRECTORS
The panel of the Board of Directors comprises of the following :-
| Mr. Taimur Amjad | Chairman |
| Mr. Abid Mehmood | Chief Executive Officer |
( In alphabetical order ) | ||
| Mr. Adnan Amjad | Non-Executive Director |
| Mr. Naveed Gulzar | Executive Director |
| Ms. Nazish Arshad | Non-Executive Director |
| Mr. Salman Rafi | Independent Director |
| Ms. Shameen Azfar | Independent Director |
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HISTORY
Crescent Sugar Mills & Distillery Limited was incorporated on March 07, 1959. The Company has three lines of business ie. Sugar Unit, Distillery Unit and Spinning Unit. Initially this company was a subsidiary of The Crescent Textile Mills Limited and was separately listed on the Karachi Stock Exchange in 1965. Now the Company is listed on all the three stock exchanges of the country. On May 02, 2012 the name of the company has been changed to Crescent Cotton Mills Limited with the approval of board of directors, share holders and Securities & Exchange Commission of Pakistan.
SUGAR UNIT
Sugar Unit went into commercial production in December 1960. The sugar plant was capable of producing 23,167 M.Tons of refined sugar. It has a daily crushing capacity of 3,000 TCD. This project was spread over approximate 98 acres, and is situated on the main Faisalabad Lahore Road. Quality white sugar was produced by this unit. At present due to operational difficulties plant and machinery of the sugar unit has been disposed off.
DISTILLERY UNIT
Distillery plant having a capacity of 2.727 Million liters of industrial alcohol, went into commercial production in 1965. This plant was located within the premises of the Sugar Unit. This unit produces both high quality denatured as well as rectified spirit. At present due to operational difficulties plant and machinery of the distillery unit has been disposed off.
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SPINNING UNITS
The Company operates two Spinning Units. Units are located at Kotla Kahlon, 8/9 Kilometers from Shahkot towards Sheikhupura. Spinning Unit # 1 at Shahkot comprising of 14,400 spindles was completed and put into operation on July 01, 1990. Later on 11,232 spindles were added to this unit. Spinning Unit # 2 was completed and came into operation in December 1994 having 15,360 spindles to which 5,760 spindles were added later on. Presently the Spinning Units consist of 46,752 spindles with an accumulated capacity of 10,692,111 Kgs. of yarn converted at 20s count. Cotton as well as blended yarn is produced for the local as well as export market. The Spinning Units of the Company have received ISO 9002 certification.
HOSIERY UNIT / HOME TEXTILES
The company has also setup a hosiery unit consisting of 57 socks machines. A separate Home Textiles Division has also been setup which is dealing in cloth and made- ups.
SUBSIDIARIES
Crescent Cotton Mills Limited has one subsidiary company.
Crescot Mills Limited
Crescot Mills Limited was a spinning unit situated at B-10, SITE Kotri district Hyderabad. Crescent Sugar Mills & Distillery Limited holds 66.15 % of the equity of Crescot Mills Limited. Due to heavy losses the company has ceased all production activities since August 1998 and has disposed off some of its plant and machinery. The management of the Company has got the Company de-listed from Karachi Stock Exchange (Guarantee)
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Limited, the sole stock exchange on which it was listed. In the year 2021 the management of Crescot Mills Limited disposed of the entire assets of the company, however in the year 2022 company started business of trading of raw material of textiles.
STATEMENT OF ETHICS AND BUSINESS PRACTICES
INTRODUCTION
Crescent Cotton Mills Limited ( CCML ) holds, and will continue to hold, a leading position among sugar, industrial alcohol and yarn manufacturers in Pakistan. CCML's activities are guided by the highest standards and principles of business conduct as accepted by the national as well as international business community.
Crescent Cotton Mills Limited is proud of its reputation, its honest treatment of customers, directors and employees. The professionalism of management and employees of CCML and the corporate principles and ethics abided by them continue to be an essential factor in the development of the company. These factors continue to shape and strengthen its present position in the business community. We believe that adherence to these principles is key to a successful future for Crescent Cotton Mills Limited.
Crescent Cotton Mills Limited operates in an emerging economy. Following the principles of good corporate citizenship, CCML is committed to setting an example of high ethical and proper business practices. It is our belief that adherence to the principles of corporate governance and transparency sets the tone for the ongoing development of our industry and the economy in which we operate.
Pakistan is CCML's home. As such, we are committed to increasing wealth in Pakistan and we have made this, one of our business priorities.
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COMPLIANCE WITH BEST PRACTICES OF
CODE OF CORPORATE GOVERNANCE
PREAMBLE
Compliance with best practices of Corporate Governance may derive assurance that the company is being ethically managed according to prudently determined risk parameters in compliance with generally adopted corporate practices and that all transactions not only comply with all laws but are also fairly and accurately reflected in the financial statements.
The implementation and compliance of elements of Code of Corporate Governance is the responsibility of the Board of Directors of the Company.
This document reflects company's procedure for compliance with the elements of Code of Corporate Governance.
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VISION STATEMENT
To continue to hold a highly prestigious profile amongst the national as well as international industry through producing international quality sugar, industrial alcohol, yarn and by-products, while ever endeavoring for a sustainable growth of the Company.
MISSION STATEMENT
The company's primary mission is to be a profitable performance proven leader in sugar, industrial alcohol and yarn manufacturing, with recognition coming from our customers, our equity holders, our employees and the public at large. The company seeks to accomplish this in a manner that contributes to the strengthening of the free enterprise system, to the development and growth of its employees, and to the goals of the country and the community towards fulfilling its social responsibilities/obligations in a befitting manner.
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KEY OPERATING AND FINANCIAL DATA
(RUPEES IN MILLION) | ||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
Summary of Profit and Loss Account | ||||||
Sales | 5,963 | 6,386 | 7,115 | 5,406 | 5,517 | 7,393 |
Gross profit | 477 | 468 | 726 | 726 | 365 | 289 |
Profit from operations | 222 | 297 | 431 | 485 | 156 | 80 |
Finance cost | 84 | 110 | 99 | 87 | 104 | 84 |
Profit/(Loss) before taxation | 138 | 187 | 332 | 398 | 52 | (4) |
Taxation | 62 | 72 | 83 | 76 | 10 | 88 |
Profit/(Loss) after taxation | 76 | 115 | 249 | 322 | 42 | (92) |
Loss after taxation from discontinued operations | (26) | - | - | - | - | - |
Profit/(Loss) after taxation | 50 | 115 | 249 | 322 | 42 | (92) |
Summary of Balance Sheet | ||||||
Property, plant and equipment | 587 | 5,911 | 5,312 | 5,204 | 5,191 | 5,151 |
Other non-current assets | 68 | 63 | 57 | 60 | 65 | 63 |
Stock in trade | 557 | 636 | 658 | 488 | 540 | 475 |
Trade debts | 490 | 477 | 514 | 195 | 280 | 200 |
Other current assets | 6,586 | 1,124 | 852 | 744 | 753 | 636 |
Current assets | 7,633 | 2,237 | 2,024 | 1,427 | 1,573 | 1,311 |
Total assets | 8,288 | 8,211 | 7,393 | 6,691 | 6,829 | 6,525 |
Shareholders equity | 1,226 | 1,176 | 1,091 | 887 | 560 | 531 |
Surplus on revaluation of operating fixed assets | 4,926 | 4,926 | 4,283 | 4,137 | 4,137 | 4,137 |
Long term financing | 20 | 54 | 111 | 204 | 195 | 131 |
Other non-current liabilities | 137 | 98 | 161 | 149 | 127 | 101 |
Trade and other payables | 1,210 | 1,173 | 815 | 678 | 645 | 789 |
Short trem borrowings | 698 | 561 | 674 | 369 | 841 | 661 |
Other current liabilities | 71 | 223 | 258 | 267 | 324 | 175 |
Current liabilities | 1,979 | 1,957 | 1,747 | 1,314 | 1,810 | 1,625 |
Total equity and liabilities | 8,288 | 8,211 | 7,393 | 6,691 | 6,829 | 6,525 |
Summary of Cash Flow Statement | ||||||
Cash and cash equivalents at the | ||||||
beginning of the year | 50 | 44 | 143 | 42 | 50 | 106 |
Net cash (used in) / generated from | ||||||
operating activities | (106) | 226 | (233) | 548 | (121) | (125) |
Net cash used in investing activities | (5) | (2) | (64) | (59) | (103) | (25) |
Net cash from / (used in) financing activities Net | 81 | (218) | 198 | (388) | 216 | 94 |
increase / (decrease) in cash and | ||||||
cash equivalents | (30) | 6 | (99) | 101 | (8) | (56) |
Cash and cash equivalents at the | ||||||
end of the year | 20 | 50 | 44 | 143 | 42 | 50 |
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PERFORMANCE INDICATORS
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | ||
Profitability Ratios | |||||||
Gross profit ratio | % | 8.00 | 7.33 | 10.20 | 13.43 | 6.62 | 3.91 |
Net profit to sales | % | 1.27 | 1.80 | 3.50 | 5.96 | 0.76 | (1.24) |
Return on equity | % | 6.20 | 9.78 | 22.82 | 36.30 | 7.50 | (17.33) |
Return on capital employed | % | 20.67 | 28.01 | 49.73 | 59.61 | 7.79 | (0.60) |
Earning/(loss) per share | Rs. | 2.23 | 5.07 | 10.99 | 14.19 | 1.83 | (4.04) |
Liquidity Ratios | |||||||
Current ratio | Times | 3.86 | 1.14 | 1.16 | 1.09 | 0.87 | 0.81 |
Quick ratio | Times | 3.58 | 0.82 | 0.78 | 0.71 | 0.57 | 0.51 |
Cash to current liabilities | % | 0.01 | 0.03 | 0.03 | 0.11 | 0.02 | 0.03 |
Activity / Turnover Ratios | |||||||
Inventory turnover | Times | 9 | 9 | 11 | 9 | 10 | 17 |
Number of days in inventory | Days | 40 | 40 | 33 | 40 | 36 | 22 |
Debtor turnover | Times | 12 | 13 | 20 | 23 | 23 | 45 |
Number of days in receivables | Days | 30 | 28 | 18 | 16 | 16 | 8 |
Creditors turnover | Times | 5 | 6 | 9 | 7 | 7 | 9 |
Number of days in payables | Days | 79 | 61 | 43 | 52 | 51 | 39 |
Total assets turnover | Times | 0.72 | 0.82 | 1.01 | 0.80 | 0.83 | 1.24 |
Property, plant and equipment turnover | Times | 1.84 | 1.14 | 1.35 | 1.04 | 1.07 | 1.59 |
Investment / Market Ratios | |||||||
Basic and diluted earning/(loss) per share | Rs. | 2.23 | 5.07 | 10.99 | 14.19 | 1.83 | (4.04) |
Price earning ratio | Times | 41.30 | 6.68 | 4.15 | 3.86 | 21.69 | (7.02) |
Market value per share | |||||||
- At the end of year | Rs. | 92.10 | 33.86 | 45.66 | 54.75 | 39.70 | 28.38 |
- Highest during the year | Rs. | 111.34 | 35.00 | 59.17 | 60.00 | 42.88 | 39.64 |
- Lowest during the year | Rs. | 92.10 | 29.00 | 30.55 | 24.94 | 24.94 | 23.89 |
Break up value w/o surplus on revaluation | Rs. | 54.10 | 51.90 | 48.15 | 39.14 | 24.71 | 23.43 |
Break up value with surplus on revaluation | Rs. | 271.49 | 269.28 | 237.16 | 221.71 | 207.28 | 206.00 |
Capital Structure Ratios | |||||||
Financial leverage ratio | Times | 0.59 | 0.52 | 0.72 | 0.65 | 1.85 | 1.49 |
Long term debt to equity ratio | % | 1.63 | 4.59 | 10.17 | 23.00 | 34.82 | 24.67 |
Interest coverage ratio | Times | 2.64 | 2.70 | 4.35 | 5.57 | 1.50 | 0.95 |
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