MIRA
INFORM REPORT
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Report Date : |
12th
February, 2007 |
IDENTIFICATION
DETAILS
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Name : |
AL-NOOR SUGAR MILLS LIMITED |
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Registered Office : |
96 - A,
Sindhi Muslim Society, Karachi, Pakistan |
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Country : |
Pakistan |
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Financials (as on) : |
30.09.2006 |
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Date of Incorporation : |
1969 |
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Com. Reg. No.: |
2706/19690807 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Manufacturing
and sale of Sugar and Medium Density Fiber Board. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually
Correct |
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Litigation : |
Clear |
Business Name
AL-NOOR SUGAR MILLS LIMITED
Full Address
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Registered
Address |
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96 - A,
Sindhi Muslim Society, Karachi, Pakistan |
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Tel |
92 (21)
4550161, 4550162, 4550163 |
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Fax |
92 (21)
4556675 |
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Factory Location
Shahpur
Jahania, P.O. Noor
Jahania,
Taluka Moro,
District,
Nawabshah, Pakistan
Short Description Of Business
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a. |
Nature of Business |
Manufacturing and sale of Sugar and Medium
Density Fiber Board |
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b. |
Year Established |
1969 |
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c. |
Registration # |
2706/19690807 |
Auditors
M. Yousuf Adil Saleem & Co.
(Chartered Accountants)
Legal Status
Al-Noor Sugar Mills Limited was incorporated in Pakistan as a Public Limited Company. The Company is currently listed on Karachi & Lahore Stock Exchanges.
Details of Chief Executive /
Directors
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Names |
Designation |
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Mr. Ismail H. Zakaria Mr. Suleiman Ayoob Mr. Yousuf Ayoob Mr. A. Aziz Ayoob Mr. Shamim Ahmad Mr. Mohammad Asif Mr. Zia I. Zakaria Mr. Salim Ayoob Mr. Zohair Zakaria Mr. Noor Mohammad |
Chairman & Managing Director Director Director Director Director Director Director Director Director Director |
Categories of Shareholders
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Categories
of Shareholders |
Number
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Shares Held |
Percentage |
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Individuals Joint Stock Companies Insurance Companies Financial Institutions Investment Companies Modaraba Companies |
1433 16 2 5 2 1 |
12,708,966 412,138 571,277 4,751,871 16,000 110,000 |
68.44 2.22 3.08 25.59 0.09 0.59 |
Subsidiaries / Associated
Companies
(1) Al-Noor MDF Board Industries, Pakistan.(Subsidiary of Al-Noor Sugar Mills Limited)
(2) First Al-Noor Trading Corporation (Pvt) Ltd, Pakistan.
(3) First Al-Noor Modaraba, Pakistan.
(4) Shahmurad Sugar Mills Limited, Pakistan.
(5) Al-Noor Fertilizers Limited, Pakistan.
(6)
Associated Corporation (Pvt) Limited, Pakistan.
Products
Engaged in manufacturing and sale of Sugar and Medium Density Fiber Board by their Brand Name “AL-NOOR” (for Sugar) & “LASANI” (For Density Fiber Board)
Number of Employees
More than 250
Capacity And Production
2006 2005 ------------------------ -------------------------
Quantity Days Quantity Days
(Metric
Tons) (Metric tons)
Sugar Unit
Capacity 71,400 120 71,400 120
Actual Production 70,702 126 55,145 158
MDF Board Unit
Capacity 31,500 300 22,500 300
Actual Production 30,348 326 26,000 328
Customers
Various Local Traders (Approximately 80)
Bankers
Ø Habib Bank Limited, Pakistan.
Ø
Habib Metropolitan Bank Limited,
Pakistan.
Ø
Faysal Bank Limited, Pakistan.
Ø
Bank Alfalah Limited, Pakistan.
Ø
PICIC Commercial Bank Limited,
Pakistan.
Ø
CITIBANK, NA.
Ø
NIB Bank Limited, Pakistan.
Financial Position
Sound
Financial Overview
The Sugarcane crop in Sindh was not good during the last 3 / 4 years due to shortage of water in the province but Company managed to procure sugarcane from lower Punjab in order to achieve economies of scale in production. This has helped to improve the capacity utilization of the sugar mill resulting in a more efficient operation. Additionally, this year was of great importance for the Sugar Industry and the nation as a whole. During the period, the sugar prices indicate rising trend in the International markets and there was no exception for the domestic market as well. Government directed the All Pakistan Sugar Mills Association to release the sugar stock in the local market in order to arrest the increasing trend in the price of the sugar. Despite maximum release of available sugar stock the prices continued to increase. Additionally, Government allowed Trading Corporation of Pakistan and private sector’s importers to import the sugar in order to control the prices of the sugar but the desired results could not be achieved. The increase in the sugar price was associated with the high crude oil prices in the International Market. Major sugar producing countries has increased the production of fuel grade Ethanol in order to reduce their crude oil import bills and this has resulted in short supply of the Product. Accordingly, the international price of sugar coupled with high raw material cost locally resulted in price increase in the local market.
Medium Density Fibre (MDF) Board
Plant
During the period under consideration, the plant operated very well and produced 30,348 Metric Tons of Lasani Wood as against 26,000 Metric Tons produced last year, the production was in various sizes and was higher by 17% over the last year’s production. Plant’s output also included 340,640 laminated sheets as against 169,013 sheets produced last year. The laminated product has higher acceptance in the market. Some of the output of the plant was also exported to Afghanistan. The demand of laminated sheets is also emerging from Middle East and management is actively considering enhancing the capacity of the plant in order to meet local and foreign market demand.
Future Outlook
No action has so far been taken by the Government on the proposal submitted last year by all Pakistan Sugar Mills Association for linking the sugarcane prices with the price of sugar in the country. The current crushing season, which is in progress, the sugarcane price has been fixed by the Government at Rs. 67/- per Kg. but the growers is reluctance to supply the same at this price. In an attempt to procure the maximum quantity of sugarcane and the grower’s reluctance to supply at government rate often results in uneconomical competition amongst the sugar mills. For the coming year it is expected that due to improved availability of water and higher prices of sugarcane, the capacity utilization of mills and production of sugar and allied products would increase.
Memberships
· All Pakistan Sugar Mills Association.(APSMA)
Foreign Exchange Rates
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Currency |
Unit |
Pakistani Rupee |
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US Dollar |
1 |
Rs. 60.72 |
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UK Pound |
1 |
Rs. 118.15 |
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Euro |
1 |
Rs. 78.75 |
Group History
Before partition, in Calcutta, there was a company namely 'A Rahim Usman & Company' which was very prominent in sugar and rice business. They had a sugar factory at Motipur (Bihar), which was considered number two sugar factory in India. After partition, some of the brothers migrated to Pakistan and started the business in Karachi under the name and style of 'Rahmania Trading Company', which was later on converted by the partners into separate companies, one. of which was under the name and style of Noori Trading Corporation (Private) Limited, and the other in the names of 'Rahimi Limited' in Karachi and 'Rahimani Company' and 'Rahimi Limited' in East Pakistan. Noori Trading Corporation (private) Limited expanded business as industrial group which is known presently as 'Al-Noor Group of Companies' which consists of: Noori Trading Corporation (private) Limited (parent company), Al-Noor Sugar Mills Limited, (presently a public limited company, Shah Murad Sugar Mills Limited (presently a public limited industrial company), Al-Noor Fertiliser Industries Limited, Al-Noor MDF Board Subsidiary Industrial concern under Al-Noor Sugar Mills Limited. (This industry is presently producing medium density fibre board sheets known as 'LASANI' wood, Associated Corporation (private) Limited (This Company is working as builders and construction company). The main office of this group is situated in Karachi. Al-Noor Sugar Mills Limited is at Shahpur Jehania, Moro (District Nawabshah) and Shah Murad Sugar Mills Limited is at Jhok Sharif (District Thatta). Al-Noor MDFB is also in Shahpur Jehania, Moro. The Chairman of this industrial group of companies is Mr. Ismail Haji Zakaria.
Comments
Subject
Company is well known and all the directors are resourceful and experienced
businessmen. 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.
PROFIT & LOSS ACCOUNT
FOR THE
YEAR ENDED SEPTEMBER 30, 2006
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Restated |
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2006 |
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2005 |
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Rupees in '000 |
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Sales |
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2,698,535 |
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1,703,015 |
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Cost
of sales |
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(2,283,228) |
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(1,405,311) |
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Gross
profit |
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415,307 |
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297,704 |
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Profit
from trading activities |
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3,122 |
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1,740 |
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Other
operating income |
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6,841 |
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1,478 |
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425,270 |
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300,922 |
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Distribution
cost |
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(7,191) |
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(5,539) |
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Administration
expenses |
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(93,221) |
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(79,891) |
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Other
operating expenses |
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(19,188) |
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(7,403) |
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Finance
cost |
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(125,693) |
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(108,062) |
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Share
of profit / (loss) of associated undertakings |
2,177 |
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(5,072) |
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Profit
before taxation |
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182,154 |
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94,955 |
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Provision
for taxation |
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(26,293) |
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8,933 |
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Net
profit for the year |
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155,861 |
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103,888 |
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Earnings
per share - Basic and diluted |
Rs. 8.39 |
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Rs. 5.59 |
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BALANCE SHEET
AS AT SEPTEMBER 30, 2006
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(Restated) |
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2006 |
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2005 |
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Rupees in '000 |
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SHARE
CAPITAL AND RESERVES |
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Authorised
capital |
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20,000,000
(2005: 20,000,000) |
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ordinary
shares of Rs. 10 each |
200,000 |
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200,000 |
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Issued,
subscribed and paid-up |
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capital |
185,703 |
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185,703 |
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General
revenue reserve |
190,000 |
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100,000 |
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Unappropriated
profits |
178,040 |
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97,805 |
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553,743 |
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383,508 |
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Surplus
on revaluation of property, |
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plant
and equipment |
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NON-CURRENT
LIABILITIES |
369,288 |
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399,472 |
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Long
term financing |
67,470 |
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129,982 |
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Liabilities
against assets subject to |
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finance
lease |
77,568 |
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95,305 |
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Long
term deposits |
5,035 |
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4,239 |
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Deferred
liabilities |
277,540 |
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279,750 |
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CURRENT
LIABILITIES |
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Trade
and other payables |
187,470 |
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194,092 |
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Interest/mark
up accrued |
25,138 |
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26,226 |
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Short
term borrowings |
397,809 |
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501,657 |
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Current
portion of non-current liabilities |
105,139 |
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149,057 |
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Provision
for income tax |
7,460 |
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2,483 |
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723,016 |
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873,515 |
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CONTINGENCIES
AND COMMITMENTS |
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2,073,660 |
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2,165,771 |
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(Restated) |
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2006 |
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2005 |
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NON
- CURRENT ASSETS |
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Property,
plant and equipment |
1,472,955 |
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1,456,103 |
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Long-term
investments |
8,607 |
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3,671 |
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Long-term
deposits |
10,742 |
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11,047 |
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CURRENT
ASSETS |
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Stores,
spares and loose tools |
131,668 |
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132,316 |
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Stock-in-trade |
230,809 |
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207,485 |
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Trade
debts |
43,166 |
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99,352 |
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Loans
and advances |
109,388 |
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169,603 |
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Trade
deposits and short-term |
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prepayments |
3,638 |
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3,523 |
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Other
receivables |
13,993 |
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17,583 |
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Cash
and bank balances |
48,694 |
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65,088 |
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581,356 |
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694,950 |
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2,073,660 |
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2,165,771 |
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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