MIRA
INFORM REPORT
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Report Date : |
03.08.2007 |
IDENTIFICATION DETAILS
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Name : |
LAKSON TOBACCO COMPANY LIMITED. |
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Registered Office : |
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Country : |
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Financials (as on) : |
30.06.2006 |
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Date of Incorporation : |
February 10,
1969 |
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Com. Reg. No.: |
00002607 |
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Legal Form : |
Public Limited Company and its shares are quoted on the |
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Line of Business : |
Manufacture and sale of Cigarettes and
Tobacco. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Business Name
LAKSON TOBACCO COMPANY LIMITED.
Full Address
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Registered
Address |
Factory Address |
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(1)
E/15,
S.I.T.E., Kotri District Dadu, (Sindh) (2)
Plot No.
20, Sector No. 17 Korangi Industrial Area, (3)
Quadirabad
District.Sahiwal. (4)
Village:
Mandra Tehsil Gujar Khan District. (5)
Ismaila
District. Swabi |
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Tel |
92 (21) 5689081, 89 (9 Lines) |
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Tel |
92 (21) 5063481, 5063482 |
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Fax |
92 (21) 5683410 |
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Fax |
92 (21) 5054331 |
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Email |
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Short Description Of
Business
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Nature of Business |
Manufacture and
sale of Cigarettes and Tobacco. |
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Year Established |
February 10, 1969 |
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Registration # |
00002607 |
Auditors
Ford Rhodes Sidat Hyder & Co.
(Chartered
Accountants)
Legal Status
The Company was incorporated in
Details of Chairman /
Directors
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Names |
Designation |
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Mr. Iqbal Ali Lakhani Mr. Zulfiqar Ali Lakhani Mr. Amin Mohammed Lakhani Mr. E.A. Nomani Mr. M. J. Jaffer Mr. Tasleemuddin Ahmed Batlay Mr. Nazir Hussain Mr. Aziz Ebrahim Mr. Shahid Ahmed Khan Mr. Ramzan Ali Halani |
Chairman &
Chief Executive Director Director Director Director Director Director Director Director Director |
Products
Principal activity of the Company is manufacture and sale of cigarettes and tobacco.
Associates
Subsidiary
(1) Premier Tobacco Company (Private) Limited (Wholly owned subsidiary of the Company).
Associated Companies
(1) Century Paper & Board Mills Limited.
(2) Colgate Palmolive Pakistan Limited.
(3) Cyber Internet Services (Pvt) Limited.
(4) Century Insurance Company Limited.
(5) Tritex Cotton Mills Limited.
(6) Clover Foods Pakistan Limited.
(7) Merit Packaging Limited.
(8) Siza Foods (Pvt) Limited.
(9) Reliance Chemicals Limited.
(10) Century Power Generation Limited.
(11) Accuray Surgicals Ltd.
(12) Siza (Pvt) Limited.
(13) Siza Services (Pvt) Limited.
(14) Siza Commodities (Pvt) Limited.
(15) Premier Fashions (Pvt) Limited.
Number of Employees
2,410
Capacity and
Production
2006 2005
Number of cigarettes
In millions
Installed capacity 40,883
42,473
Actual production
Company 30,355 30,577
Contracted - 177
---------- --------- 30,355 30,754
Number of shifts per day Two and a Two and a
half shifts half shifts
Actual production was sufficient to meet the demand.
Bankers
(1) ABN-Amro Bank N.V.
(2) Allied Bank of
(3) American Express Bank Limited.
(4) Deutsche Bank A.G.
(5) Citibank N.A.
(6) Faysal Bank Limited.
(7) Habib Bank AG
(8) Habib Bank Limited.
(9) The Hongkong & Shanghai Banking Corporation Ltd.
(10) Mashreq Bank Pakistan Ltd.
(11) Meezan Bank Limited.
(12) Muslim Commercial Bank Limited.
(13) National Bank of
(14) Oman International Bank S.A.O.G.
(15) Soneri Bank Limited.
(16) Standard Chartered Bank.
(17) The Bank of Khyber.
(18) Union Bank Limited.
(19) United Bank Limited.
Financial Position
Sound
Sales Performance
The sales at Rs. 20.62 billion were equal to last year levels. During the month of June 2005, in order to forestall speculative purchases by the market before the announcement of Federal Budget, certain extra supplies were made to the trade. These extra supplies had an effect on the sales of the first quarter of the current financial year.
Contribution to the
National Exchequer
Company contributes substantially to the national economy in terms of taxes and duties and the contribution is increasing as the Company grows. This year the Company’s contributed Rs. 12.640 billion to the national exchequer in the forms of Central Excise Duty, Sales Tax, Custom Duties, Income Tax etc.
Future Outlook
The management appreciates the untiring efforts, dedication and commitment demonstrated by all employees and their strong performance, significant contributions and their excellent response to the challenges faced during the year. Its growth has been possible because of their enduring commitment which has ensured a sound base of the Company.
Foreign Exchange
Rates
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Currency |
Unit |
Pakistani Rupee |
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US Dollar |
1 |
Rs. 60.90 |
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1 |
Rs. 123.35 |
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Euro |
1 |
Rs. 83.05 |
History And
Background Of The Company
The Company was incorporated in
Credit Profile
Lakson Group of Companies is engaged in diversified activities, which includes Chemical, Food & Allied, Tobacco, Fuel & Energy, Information Technology, Paper & Board, Surgical and Insurance etc. The group is well known and directors are resourceful and experienced businessmen. Their trade relations are reported as fair. Payments to creditors etc are reported as normal. The company can be considered for normal business dealings at usual trade terms and conditions.
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LAKSON TOBACCO
COMPANY LIMITED |
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BALANCE SHEET AS
AT JUNE 30, 2006 |
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2006 |
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2005 |
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(Rupees '000) |
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ASSETS |
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NON-CURRENT
ASSETS |
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Fixed assets |
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- Property, plant and equipment |
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2,406,862 |
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2,014,013 |
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- Intangible assets |
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62,537 |
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125,073 |
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2,469,399 |
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2,139,086 |
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Investment in subsidiary company |
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1 |
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1 |
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Long-term loans |
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790 |
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1,407 |
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Long-term deposits and prepayments |
9,424 |
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14,070 |
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2,479,614 |
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2,154,564 |
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CURRENT ASSETS |
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Stores and spare part |
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163,013 |
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102,868 |
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Stock-in-trade |
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2,009,053 |
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1,104,197 |
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Trade debts |
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100,647 |
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769,861 |
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Loans and advances |
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102,626 |
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79,140 |
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Prepayments |
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78,606 |
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13,368 |
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Profit accrued |
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1,635 |
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8,813 |
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Other receivables |
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38,414 |
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58,389 |
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Short-term investments |
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400,114 |
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Cash and bank balances |
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607,281 |
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1,401,661 |
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3,501,389 |
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3,538,297 |
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Total Assets |
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5,981,003 |
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5,692,861 |
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EQUITY AND
LIABILITIES |
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SHARE CAPITAL
AND RESERVES |
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Share capital |
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615,803 |
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513,169 |
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Reserves |
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2,880,000 |
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2,041,000 |
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Unappropriated profit |
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1,460,478 |
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1,591,322 |
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4,956,281 |
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4,145,491 |
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Surplus on revaluation of fixed assets -
net of tax |
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8,273 |
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NON-CURRENT LIABILITIES |
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Deferred taxation |
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188,628 |
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174,078 |
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CURRENT
LIABILITIES |
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Trade and other payables |
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594,739 |
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544,739 |
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Provision for taxation |
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87,897 |
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384,970 |
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Sales tax payable |
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84,421 |
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98,304 |
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Provisions |
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69,037 |
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337,006 |
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836,094 |
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1,365,019 |
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CONTINGENCIES
AND COMMITMENTS |
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TOTAL EQUITY AND
LIABILITIES |
5,981,003 |
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5,692,861 |
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LAKSON TOBACCO
COMPANY LIMITED |
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PROFIT AND LOSS
ACCOUNT |
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FOR THE YEAR
ENDED JUNE 30, 2006 |
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2006 |
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2005 |
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(Rupees '000) |
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Gross turnover |
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20,619,711 |
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20,584,045 |
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Sales tax |
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2,547,315 |
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2,736,040 |
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Turnover - net of sales tax |
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18,072,396 |
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17,848,005 |
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Cost of sales |
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13,895,849 |
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13,767,718 |
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Gross Profit |
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4,176,547 |
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4,080,287 |
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Distribution and marketing expenses |
1,381,169 |
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1,065,338 |
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Administrative expenses |
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297,997 |
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282,831 |
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1,679,166 |
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1,348,169 |
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2,497,381 |
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2,732,118 |
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Other operating expenses |
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174,862 |
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206,743 |
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Other operating income |
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68,259 |
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55,654 |
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Operating profit |
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2,390,778 |
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2,581,029 |
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Financial charges |
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10,654 |
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9,079 |
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Profit before
taxation |
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2,380,124 |
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2,571,950 |
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Taxation |
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825,239 |
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886,913 |
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1,554,885 |
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1,685,037 |
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Rupees |
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Earnings per share - Basic and diluted
(Restated) |
25.25 |
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27.36 |
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RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)