Printer Friendly

Pak Leather Crafts Limited.

PAK LEATHER CRAFTS LIMITED

The firm was incorporated as partnership firm on August 1, 1971, with the object to manufacture leather garments mainly for export. Later on the Partnership firm was made to carry on the business activities of garment manufacturing, another Company was incorporated under the name and style of "Pak Leather Crafts (Private) Limited" on January 1, 1987 which took over tanning operations of the firm. The company was later converted into a public limited company on January 20, 1988. Initially the company got a boost in its export business in the year 1982 when the export turnover was near about Rs. 10 million. In the year 1983-84 the exports shot up to over Rs. 25 million. The steady growth has been maintained and exports in 1989-90 reached Rs. 273 million. In the midstream in the decade of eighties, the need of setting-up a tannery was badly felt so as to provide the needed main raw material i.e. tanned leather to the garment manufacturing set up. This and other contributory factors induced the management to expand in not only setting up its own tannery but creating separate units for running the tannery and garment manufacturing activities.

The project envisages production of finished leather from raw sheep goat skins and cow/buffalo hides. The project has an installed capacity of producing 15 million square feet of finished leather per year on double shift basis and three hundred working days per annum. Presently the tannery is producing 12.500 million square feet of finished leather annually which is expected to increase with the installation of additional machinery which is underway. In addition to above, leather garments are manufactured and exported to Europe and USA. Presently 140,000 pieces of leather garments are produced and exported annually. The machinery installed in the project consist of locally manufactured as well as imported. The cost of local machinery is Rs. 9.72 million and an amount of Rs. 26.05 million was sanctioned by Bankers Equity Limited for purchase of imported machines. The project commenced commercial production in April 1, 1987.

Capital Structure

The Authorised capital of the company is Rs. 50.00 million divided into ordinary shares of Rs. 10/-each against which the Paid-up Capital stood at Rs. 17.00 million. The company has now offered 1,700,000 ordinary shares of Rs. 10 each at par value which includes 340,000 ordinary shares for NIT, 160,000 ordinary shares for employees of the company and 1,200,000 ordinary shares for general public. The company has applied for listing on KSE and LSE. The present share has been under written by Bankers Equity Limited and Mr. Mohammad Khurshid Ahmed (Chairman of the company). The subscription list will open on January 27, 1991.

Marketing Prospects

Leather and leather based industry represents one of the most important sectors of the economy. It provides employment to more than 200,000 workers and contributes about 4 per cent to the GDP of the country. It is the 2nd largest earner, after Cotton, of foreign exchange. The leather industry in Pakistan is still in its early stage of development. The quality of raw hides available in the country is also very good, and should the availability of raw hides pose any problem in future, import of raw and wet blue hides is allowed free of duty. As a matter of fact, the international trade of the Far East countries is mainly based on imported American and Australian hides. About 70% production of Pak Leather Crafts is being used to manufacture leather garments for export and 30% is being exported as finished leather, so the company has a bright future.

Working Results

Sales during the year ending June 30, 1990 stood at Rs. 299.49 million as compared to Rs. 234.38 million in the preceding year showing an increase of 27.77%. Pre-tax Profit during the same period stood at Rs. 8.88 million as compared to Rs. 5.31 million in 1989 showing a substantial increase of 67.23 per cent. Earning per share after taxation worked out to Rs. 2.15 in 1990 as compared to Rs. 1.26 in 1989.

Balance Sheet as on June 30, 1990
Fixed Capital Expenditure 1990 1989
Operating Assets 41.23 28.82
Capital Work-in-Progress 0.68
 41.91 28.82
Preliminary Expenses 0.11 0.10
Investments 9.71 7.56
Current Assets 143.52 118.06
 195.25 154.54


Capital & Reserves:
Paid-up Capital 16.16 16.16
Share application money 0.82
Unappropriated Profit 14.86 7.55
Long Term Liabilities 19.77 19.05
Current Liabilities 143.64 111.78
 195.25 154.54
COPYRIGHT 1991 Economic and Industrial Publications
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Company Affairs
Publication:Economic Review
Article Type:company profile
Date:Jan 1, 1991
Words:782
Previous Article:Exports of leather and leather garments.
Next Article:Pak German Prefabs.
Topics:


Related Articles
Stiff competition from India and China.
United States Leather Strengthens Organization -- Quality, On-Time Delivery Company's Top Priority
Footwear industry burdened with numerous taxes.
Tandycrafts, Inc. Opens Prototype Renovation for Tandy Leather & Crafts Stores.
HIGH POINT SETS STAGE FOR ICFF; U.S. DESIGNERS TURN HEADS IN HIGH POINT CONTEMPORARY SHOWROOMS.
Home of leather aims to stem tide of foreign imports.
Seton Company Launches Interactive Website.
Zip-Pak acquires Supreme Plastics' reclosables division.
Leather crafting factory established in the "Industrial Park" of Ma'an development area.
Artistic Leather Of The Arts And Crafts Era.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters