Presented to;

 Cotton textile production and apparel manufacturing are

Pakistan's largest industries, accounting for about 66% of the
merchandise exports and almost 40% of the employed labor force.

 Pakistan is 4th world largest producer and supplier of Cotton.

 The industry is comprised of 453 textile mills: 50 integrated

units; and 403 spinning units, with 9.33 million spindles and
148,000 rotors.

The capacity utilization was 83% for spindles and 47% for
rotors during 2003.
 Pakistan’s textile industry has estimated a shortfall of around
one billion dollars in its exports in the current financial year
because of three major factors;
 cotton crisis
energy crisis
political chaos in the country

 About 300 textile units have virtually stopped their production

because of electricity and gas shortage and their output is set to
suffer in 2007-08.
 The downward trend in textile might be observed from January
2008 to next few months because of the said factors.

FY08 the textile exports showed unimpressive growth of 1.03

per cent and amounted to 3.649 billion dollars.

 All Pakistan Textile Mills Association (APTMA) has already

announced to stop further investment in the sector, which would
diminish the prospects of growth in the textile sector in the coming
days.
 Fazal Group is one of the oldest and largest Textile Groups
in Pakistan, with operations in Cotton Ginning, Ring Spinning
and Greige Woven Fabric Manufacturing.

 The Group owns and operates five Ring Spinning Plants

comprising 155,000 spindles, three Weaving Plants comprising
350 Air jet Looms and five Captive Gas Fired Power Plants with
a capacity of 22 Mega Watts.

Continuous reinvestment is made to modernize and balance

manufacturing facilities with an aim to diversify, improve and
expand product base.
 Fazal Cloth Mills Limited
Ahmed Fine Textile Mills Limited
 
Fazal Rehman Fabrics Limited
 

  Amir Fine Exports (Pvt.) Limited
 
 
Unit No. 1
Unit No. 2
 Unit No. 3
 Unit No. 4
 Country’s leading textile manufacturers and exporters
covering the complete range of operations from cotton farming
to retailing.

Bed Sheet, Pillow Cover, curtains, quilt cover, bed spread,

Napkin, Bags, Apron and various other items of daily use.

 
 
 
 
 
 The principal business of the Company is export of all kinds
of value added fabrics, textile made-ups, casual and fashion
garments duly processed.

Chenab Group;
 Chenab Spins finest quality yarns in counts of
10, 16, 20, 22, 24, 30, 40, 60 & 80 in carded as
well as combed versions.

Modern mills use high-speed shuttle less

weaving machines that perform at incredible
rates and produce an endless variety of fabrics.

 
 
 The Processing unit of Chenab is sub divided
into:
Preparation & Dyeing
Printing
Design Studio and Engraving
Finishing

Stitching unit is categorized in home fashion

and garments.
Made Ups
Garments
Ratios Chena Fazal
b
2005 2006 2007 2005 2006 2007

Current ratio 1.04 0.91 0.90 1.02 1.15 1.14

(times)
Quick ratio 0.31 0.30 0.29 0.46 0.45 0.49
(times)
Cash ratio 0.03 0.023 0.02 0.14 0.19 0.16
(times)
Inventory 1.57 1.43 1.65 2.51 3.34 3.84
turnover (times)
AAI(days) 229.3 251.7 218.2 143.4 107.8 93.8

ACP (days) 53 80.7 80.4 22.61 27.76 34.81

Ratios Chena Fazal
b
2005 2006 2007 2005 2006 2007

Debt ratio (%) 74 72 74 49 39 27

Time interest 1.55 1.29 1.20 2.47 1.57 1.46

earned
ratio(times)
Fixed charge 1.65 1.27 0.38 1.17 0.69 0.56
coverage ratio
(times)
Fixed charge 1.20 0.96 0.29 1.16 0.69 0.57
coverage ratio
[Non-cash]
(times)
Ratios Chena Fazal
b
2005 2006 2007 2005 2006 2007

Earning per 1.25 0.67 0.01 12.12 6.68 11.08

share (rupees)
Price/earning 30.06 69.33 --- 11.03 18.7 4.07
ratio
Share prices in 38.25 46.45 --- 137 125 45.1
KSE
Ratios Chena Fazal
b
2005 2006 2007 2005 2006 2007

Net profit 3.18 2.16 0.92 5.8 1.2 1.7

margin (%)
Gross profit 19.72 22.54 18.96 16.8 14.2 13.6
margin (%)
Total asset 0.58 0.49 0.54 0.79 0.99 0.72
turnover (times)
Operating asset 0.59 0.52 0.54 0.81 1.05 0.74
turnover (times)
Operating profit 11.19 13.7 12.2 11 9.7 9.66
margin (%)
Ratios Chena Fazal
b
2005 2006 2007 2005 2006 2007

Return on 0.0019 0.011 0.005 0.045 0.02 0.012

assets (times)
Return on 0.0066 0.07 0.07 0.09 0.1 0.07
operating assets
(times)
Return on equity 0.07 0.05 0.03 0.24 0.09 0.08
(times)
Return on 0.3 0.01 0.0005 0.24 0.09 0.06
common equity
(times)
Return on 0.05 0.047 0.03 0.08 0.06 0.03
investment
(times)
 short-term creditor’s point of view, Fazal Cloth Ltd is a better option,
apparent from the trends of its liquidity ratios.
 long-term creditor’s point of view also, Fazal Cloth Ltd appears to have a
better and growing ,long-term debt paying ability.
 Investor needs to consider certain points while making the investment
decision;
 due to a recession in the sector, market prices of both the companies have
dropped over the past years.
 Chenab appears to be a bigger and well reputed company in the sector but
the trend of profitability ratios tells a different story .
 Fazal, in spite of having a better profitability position, has lower earning
per share and is still a smaller organization than Chenab.