Nishat Mills Limited

Nishat Mills Limited
Acknowledgement
At first we like to thank our beloved Allah we would like to thank our professor Sir Adeel Luqman for giving us the opportunity to enhance our knowledge on the subject. We are also grateful for his support and encouragement all throughout .We also thanks our peer members who have enriched our knowledge with immense discussion on the topic.
Islamia University Bahawalpur Bahawalnager Campus
INTRODUCTION
When Pakistan came into being there was only 16 textile mills out of which only 12 were in operation. It grew to 70 in 1957 as industrial development takes place. Now a day there are 596-textile mills out of which 442 are in operation. The export revenue of textile industry contributes a large share to the GDP of Pakistan.
Textiles Exports from Pakistan

Textiles constitute a major exporting sector for Pakistan, which accounts for about 60%of the countrys total foreign exchange earnings. The major export items are yarn; gray Cloth, finished cloth, towels and bed sheets and their major customers are the USA, EU, Japan and Hong Kong. Many textile exports take place under quota arrangements With the EU and the United States. Gray cloth constitutes roughly 16-18% of total cloth.
Exports from Pakistan.

Nishat gray cloth exports account for roughly 20 % of Pakistani gray cloth exports. The firm has been exporting to the USA for many years, and has only recently started to export to EU countries. In Pakistan, the cotton crop season runs approximately from August to March. Prices are generally high at the start of the season in August/September, and fall later on as supply increases. Following income tax law, the fiscal year runs from October to September for textiles sector.
NISHAT MILLS LIMITED

NISHAT MILLS LIMITED (NML) commenced business in 1951 as a partnership concern, which was converted into private limited company in 1959. In 1961, the company went public and was listed on the Karachi stock exchange, the only stock exchange in the country at that time. NML started out as a weaving unit with 500 semi-automatic looms; later 10000 spindles were added, laying the foundation on nations biggest textiles composite project. Composite project at Nishat mills limited Faisalabad covering 98 acre of land is providing all production process under one roof i.e. spinning, weaving, processing, stitching and power generation.
The Founder
A man of vision, courage and integrity, Mian Mohammad Yahya was born in 1918 in Chiniot. In 1947 when he was running a leather business in Calcutta, he witnessed the momentous that swept the indo-pak sub-continent and resulted in the emergence of Pakistan. Like many of his contemporaries, he also migrated to the new country to help establish its industrial base. His is a story of success through sheer hard work and an undaunted spirit of enterprise. Beginning with a cotton export house, he soon branched out into ginning, cotton and jute textiles, chemicals and insurance. He was elected Chairman of All Pakistan textile Mills Association (APTMA), the prime textile body in the country. He died in 1969, at the age of 51 having achieved so much success in so short period.
The Chairman
Today Mian Mohammad Mansha, the chairman of Nishat Group, like his father, continues the spirit of entrepreneurship and has led the group to become a multi dimensional corporation, with wide ranging interests. Nishat has grown from a cotton export house into the premier business group of the country with 5 listed companies, concentrating on 4 core business, Textiles, Cement,
Nishat Mills Limited Banking, and Power Generation. Today, Nishat is considered to be at par with multinationals operating locally in terms of its quality products and management skills. Firmly believing in Growth through Professional Management our corporate culture is based on decentralization, delegation of authority, encouraging the acceptance of responsibility and inculcating quality consciousness. It is our conviction that every successful organization is a reflection on the commitment, dedication, and team spirit of its employees, and Nishat is no exception. Our people are all imbued with the spirit, a fact manifested in our rapid growth and low turnover Nishat continue to strive to be a better group today than what they were yesterday, for their customers, for their shareholders, for their investors, for the environment, for the community and for their employees, for it is with them that Nishat has achieved so much success in last fifty years.
COMPANY INFORMATION
BOARD OF DIRECTORS: Mian Hassan Mansha Mr. Fayaz Ahmad Longi (NIT) Mr. Muhammad Bilal Sheikh (PICIC) Mr. Aftab Ahmed Khan Mr. Khalid Qadeer Qureshi Mr. Muhammad Azam Rana Muhammad Mushtaq Mr. Muhammad Ali Zeb Mrs. Naz Mansha
Company Secretary Senior Manager corporate
CHIEF EXECUTIVE:
CORPORATE DEPARTMENT: Mr. Muhammad Azam Mr. Khalid Mahmood Chohan AUDITORS: LEGAL ADVISOR: Riaz Ahmad and Company Chartered Accountants
Mr. M. Aurangzeb Khan, Advocate, Chamber No. 6, District Court, Faisalabad.
Liquidity ratio Current Ratio

Current ratio show the ability of the company to pay its short term liabilities with short term assets to fulfill its obligation. The Higher the current ratio show the ability to pay its debts. Year Nishat mills Industry Average 2010 1.11 0.58
Quick Ratio
Quick ratio show the ability of the company to pay its short term liabilities with short term assets to fulfill its obligation. The Higher the current ratio show the ability to pay its debts.In This We Ignore Inventory Year Nishat mills Industry Average 2010 0.53 0.47
Activity Ratio Inventory Turnover Ratio
Its shoes how many times a company converts its inventory into finished good. Higher the ratio higher the company performance
Year Nishat mills Industry Average
2010 4.21 4.42
Average Collection Period

Its Show in how many days company collects its receivable.
2010 8.38 50.47
Average payment period

Its Show in how many day company pay its payables Year Nishat mills 2010 105
Fixed asset turnover Ratio

Fixed asset turnover ratio measures the ability of a company to generate sale by using fixed asset investment. specially property ,plant and equipment. Year Nishat mills Industry Average 2010 0.91 1.69
Total asset turnover Ratio

The amount of sale generated for every rupee worth of assets. it shows the efficiency of the company at using its assets in generating of sale.
2010 0.68 1.19 Islamia University Bahawalpur Bahawalnager Campus
Debt Ratio Debt Ratio

This ratio Indicate what portion of company debt has relative to its assets. Year Nishat mills Industry Average 2010 32% 82.25%
Interest Ratio
TO measure the company ability to meet its debt obligation
2010 3.91 0.18
Profitability Ratio Net profit Ratio

It show how much of each rupee of sale a company actually keeps in earning. Year Nishat mills Industry Average 2010 9.24 2.19%
Return on Equity
Nishat Mills Limited This amoun shows how much a company earn its profit with the use of amount which is invested by share holders
2010 9.29% 10.12%
Return on Asset
Return on asset tell you how much company profit earn by use of company assets Year Nishat mills Industry Average 2010 6.31% 1.98%
Earning per share

It show how much a company earn on it each share Year Nishat mills 2010 10.50
Market Value Price earning

Company current price of share compare with its earning Year Nishat mills Industry Average 2010 1.84%
Market/book
Market book show how much investors willing to pay for company
Nishat Mills Limited Year Nishat mills Industry Average 2010 1.36%

Nishat Mills Limited

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Islamia University Bahawalpur Bahawalnager Campus