MIRA
INFORM REPORT
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Report Date : |
26.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
AL-KHAIR GADOON LIMITED |
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Registered Office : |
92/3, Phase III, Industrial Estate, Gadoon Amazai,
District Swabi, N.W.F.P. |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2006 |
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Date of Incorporation : |
1990 |
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Com. Reg. No.: |
P-599/19900806
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Legal Form : |
Public Limited Company, listed on Stock Exchanges of Pakistan |
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Line of Business : |
Manufacturing of Foam and Allied Products |
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-KHAIR GADOON LIMITED
Full Address
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Registered Address
& Factory |
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92/3, Phase III, Industrial Estate, Gadoon Amazai, District Swabi, N.W.F.P., Pakistan |
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Tel |
92 (938) 270260 |
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Fax |
92 (938) 270270 |
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Website |
Short Description Of Business
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Nature of Business |
Manufacturing of Foam and Allied Products |
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Year Established |
1990 |
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Registration # |
P-599/19900806
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Corporate Office
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Address |
Al-Khair House,
43-T, Gulberg II, Lahore, Pakistan |
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Tel # |
92 (42) 111-111-043 |
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Fax # |
92 (42) 5716588, 5716589 |
Auditors
Tahir Siddiqi &
Co.
(Chartered
Accountants)
Legal Status
The Company was incorporated as a Private Limited Company in 1990. In 1995 it was converted to Public Limited Company and is listed on Karachi, Lahore and Islamabad Stock Exchanges of Pakistan
Details of
Chairman/Directors
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Names |
Designation |
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Mr. Mohammad Afzal Sheikh Mr. Mohammad Saeed Sheikh Mr. Mohammad Amin Sheikh Mr. Sheikh Pervaiz Afzal Mrs. Parveen Afzal Mrs. Farnaz Saeed Mrs. Nafeesa Amin |
Chairman Chief Executive Director Director Director Director Director |
Categories of
Shareholders
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Shareholders |
Percentage (%) |
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Individuals Investment Companies Joint Stock Companies Modarabas |
99.575 0.405 0.015 0.005 |
Associated Companies
(1) Al-Khair Mirpur (Private) Limited, Pakistan.
(2) Al-Khair Soft (Private) Limited, Pakistan.
(3) Noble Foam, Pakistan.
(4) Al-Khair Boards (Private) Limited, Pakistan.
(5) Al-Khair Overseas (Private) Limited, Pakistan.
Business Activities
Manufacturing of Foam and Allied Products by their brand name of Five Star, Decent, Eagle, Margalla, Fancy, Vicky, Foamax, Super One, Marshall, Shab Bakhair, Crescendo, Maximo
Number of Employees
89
Capacity &
Production
2006 2005
Tons Tons
Rated Capacity 13,280 13,280
Capacity Utilized 723 379
It is important to disclose that the capacity of plant is utilized according to the demand of the products.
Annual Sales Volume
(Last Two Years)
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Years |
In Pak Rupees |
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2005 2006 |
82,328,213 179,827,130 |
Distributors
Mainly in all important cities of Pakistan.
Bankers
Allied Bank Limited, Pakistan.
MCB Bank Limited, Pakistan.
National Bank of Pakistan.
Business Review
2006 was a year of turn around and the steps were taken to correct the business fundamentals and to achieve the long term growth with positive business results. During the year under review, the Company’s sales expansion policy with new packages has resulted a positive effect on the business. A major share in increase in overall sales activity was also seen due to supply of Foam and Allied Products to donor agencies for earthquake effecties. The sales revenue during the year was increased from Rs. 82.328 million to Rs. 179.827 million making an increase of 218% as compared to last year. The key drivers for such improvement were the focus on new customers to increase coverage, aggressive marketing strategy, effective communication and the efforts to promote products through media.
Foreign Exchange
Rates
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Currency |
Unit |
Pakistani Rupee |
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US Dollar |
1 |
Rs. 60.75 |
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UK Pound |
1 |
Rs.118.80 |
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Euro |
1 |
Rs. 80.40 |
Financial Position
Sound
Comments
Subject Company enjoys good reputation in the Pakistan Business Circle. The Chairman & directors of the Company are resourceful and experienced businessmen. Trade relations are reported as fair. The Company can be considered for normal business dealings at usual trade terms and conditions.
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AL-KHAIR GADOON
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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2006 |
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2005 |
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Rupees |
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Rupees |
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SHARE CAPITAL &
RESERVES |
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FIXED CAPITAL EXPENDITURE |
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Authorized capital |
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Operating fixed assets |
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12,000,000 ordinary shares of Rs. 10/- each |
120,000,000 |
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120,000,000 |
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(at cost less accumulated depreciation) |
47,341,948 |
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46,445,724 |
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Issued, subscribed and
paid up |
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Long term investments |
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29,995,000 |
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29,995,000 |
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7,000,000 ordinary shares of Rs. 10/- each |
70,000,000 |
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70,000,000 |
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3,000,000 ordinary shares of Rs. 10/- each |
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issued as fully paid bonus shares |
30,000,000 |
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30,000,000 |
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100,000,000 |
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100,000,000 |
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CURRENT ASSETS |
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Capital Reserves-share
premium |
25,000,000 |
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25,000,000 |
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Un-appropriated Profit |
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8,339,803 |
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5,309,516 |
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Stocks |
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73,907,497 |
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56,821,994 |
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133,339,803 |
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130,309,516 |
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Sundry debtors |
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20,743,744 |
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17,022,358 |
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NON CURRENT LIABILITIES |
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Deferred liability |
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3,959,386 |
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1,028,316 |
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Advances, deposits and other receivables |
37,474,511 |
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39,434,669 |
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Cash and bank balances |
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1,913,316 |
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1,906,920 |
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CURRENT LIABILITIES |
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134,039,068 |
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115,185,941 |
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Short term borrowing - secured |
20,543,888 |
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31,101,793 |
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Interest / Mark-up payable |
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169,972 |
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216,953 |
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Creditors & accrued liabilities |
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44,784,997 |
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21,888,418 |
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Un-claimed dividend |
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2,990,168 |
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3,006,815 |
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Provision for taxation |
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5,587,802 |
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4,074,854 |
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74,076,827 |
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60,288,833 |
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Contingencies &
Commitments |
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211,376,016 |
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191,626,665 |
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211,376,016 |
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191,626,665 |
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AL-KHAIR GADOON LIMITED |
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PROFIT & 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 |
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Sales |
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179,827,130 |
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82,328,213 |
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Cost of sales |
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155,644,674 |
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71,259,163 |
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Gross Profit |
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24,182,456 |
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11,069,050 |
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Operating Expenses |
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Administrative |
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10,307,768 |
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5,351,278 |
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Selling and distribution |
9,848,937 |
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3,950,609 |
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W.P.P.F |
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201,288 |
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20,357,993 |
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9,301,887 |
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Operating profit |
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3,824,463 |
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1,767,163 |
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Financial |
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1,156,721 |
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835,349 |
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Other income |
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4,621,334 |
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4,299,967 |
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Profit before taxation |
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7,289,076 |
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5,231,781 |
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Taxation |
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4,258,789 |
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2,092,713 |
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3,030,287 |
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3,139,068 |
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Earning per share |
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Rs. 0.73 |
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Rs. 0.52 |
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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%)