Footwear Industry Burdened with Numerous Taxes

Article excerpt

There were 8 companies on the list of Karachi Stock Exchange in the Leather and Tanneries sector in 1995. The total Paid-up Capital of these companies stood at Rs.266.89 million. Free Reserves and Surplus stood at Rs.700.26 million during the year under review. General Break-up value per Rs.10/- worked out to Rs.29.09. The Break-up Values of these companies in the descending order were as follows:

Break-up Value per RS.10/-

                                        1995                  1994

Bata Pakistan                          55.51                 58.71
Universal Leather                      38.59                 37.12
National Tannery                       33.78                 35.92
Service Industries                     26.55                 24.45
Pak Leather                            16.37                 20.6
Hilal Tannery                          15.84                 14.5
Leather-up                             12.29                 11.96
Fateh Industries                        4.52                 11.03

It will be seen from the above table that 4 companies showed a rise in their Break-up Values, while 4 companies namely Bata, National Tanneries, Pak Leather and Fateh Industries registered decline as compared to previous year. The Break-up value of Fateh Industries declined from Rs.11.03 to Rs.4.52 in 1995, due to decline in Networth from [TABULAR DATA OMITTED] Rs.22.06 million to Rs.9.03 million in 1995.

Earning Per Share

The highest earning per share was at Rs.3.51 of Bata Pakistan, followed by National Tanneries at Rs.3.01 and Universal Leather at Rs.2.47.

Dividend

The dividend scenario is somehow good. Out of 8 companies, 4 have paid dividend/bonus shares in 1995. The highest dividend of 20% each (cash) and (10% cash plus 10% stock) was paid by Services Industries and Universal Industries respectively, followed by 15% (cash) by National Tanneries, and 10% (Cash) by Bata Pakistan. …