MIRA
INFORM REPORT
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Report Date : |
26.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
CLARIANT PAKISTAN LIMITED |
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Registered Office : |
1-A/1, Sector-20,
Korangi Industrial Area,
Karachi |
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Country : |
Pakistan |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
1996 |
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Com. Reg. No.: |
6606/19961007
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Legal Form : |
Limited Liability Company. The Company is listed on the Karachi Stock Exchange |
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Line of Business : |
Manufacture & Sells Chemicals, Dyestuff, Emulsions and
Masterbatches |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Business Name
CLARIANT PAKISTAN LIMITED
Full Address
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Registered Address |
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1-A/1, Sector-20,
Korangi Industrial Area,
Karachi, Pakistan |
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Tel |
92 (21) 5046710, 5046711 |
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Fax |
92 (21) 5046712 |
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Website |
Short Description Of
Business
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Nature of Business |
Manufacture & Sells Chemicals, Dyestuff, Emulsions and Masterbatches |
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Year Established |
1996 |
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Registration # |
6606/19961007
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Factories
Korangi Industrial Area, Karachi.
Petaro Road, Jamshoro.
Katarband Road, Thokar Niaz Baig, Lahore.
Branches
In Faisalabad & Lahore
Auditors
A.F. Ferguson & Co.
(Chartered
Accountants)
Legal Status
The Company is a limited liability company and is incorporated and domicified in Pakistan. The Company is listed on the Karachi Stock Exchange
Details of
Chairman/Directors
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Names |
Designation |
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Mr. Peter Lindner Mr. Farhat A. Mirza Mr. Walter Mohr Mr. Andreas Walde Dr. S. Mubarak Ali Mr. Mujtaba Rahim Mr. Ajaz Rahim |
Chairman Chief Executive Director Director Director Director Director |
Categories of
Shareholders
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Shareholders |
Percentage (%) |
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Individuals National Investment Trust and Investment Corporation of Pakistan Public Sector Companies & Corporations Associated Companies, Undertakings and Related Parties Directors, Chief Executive Officer and their Spouses & Minor Children Banks, Development Finance Institutions, Non Banking Finance Institutions, Insurance Companies, Modarbas and Mutual Fund Others |
8.084 11.557 4.186 75.000 - 0.779 0.393 |
Holding Company
The Company is a subsidiary of Clariant International Limited incorporated in Switzerland.
Principle Activities
Clariant is the global leader in the field of Specialty Chemicals with presence in five continents and 90 countries with more than 100 operating group companies, employing about 25,000 people and headquartered in Muttenz near Basle, Switzerland. Clariant’s businesses are organized in five divisions: Textile, Leather & Paper Chemicals, Masterbatches, Pigments & Additives, Functional Chemicals and Life Sciences Chemicals.
Number of Employees
300 - 350
Plant Capacity &
Production
Production during the year was 41,160 tonnes (2004: 36,788 tonnes). The capacity is indeterminable because of multi-products plants involving varying processes of manufacture.
Annual Sales Turnover
(Last Two Years)
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Years |
Rupees in ‘000 |
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2004 2005 |
5,025,949 5,543,371 |
Distributors
Mainly in all important cities of Pakistan.
Bankers and their
addresses
(1) ABNO AMRO Bank.
(2) Citibank, N.A.
(3) Habib Bank Limited, Pakistan.
(4) NIB Bank Limited, Pakistan.
(5) National Bank of Pakistan.
(6) Standard Chartered Bank, Pakistan.
(7) The Hongkong Shanghai Banking Corporation, Pakistan.
Business Overview
During the current year operations the Company has managed to achieve an overall sales growth of 21% as compared to last year. this sales growth has been made possible through the contribution of all the business segments. favourable sales growth in Textiles, Leather & Paper division has been recorded at 21% and for Masterbatches at 18% in comparison to last year. global uncertainty on the supply of petroleum based raw material continued to maintain pressure on the selling prices through-out the year. however, Company through pricing and other cost containment measures still managed to improve on the exceptional profits of 2004, which will recall also included a one time gain of sales tax refund of Rs 76 million.
Future Outlook
Pakistan economy has exhibited strong recovery over the past few years with GDP accelerating to 8.4% in fiscal year 2005. although the growth rate is forecasted to slow down between 6 – 7 % in 2006 foresee development of harvesting growth opportunity for the Company. The expansion in exports, especially Textiles, on account of policy improvement for export related manufacturing sectors by the government and partial relief in Antidumping duties by the European Union on Textile exports supported by the Free Trade Agreements with China & Malaysia, hopefully shall provide an improved business environment in the foreseeable future.
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
Very Sound.
Comments
Subject Company enjoys excellent credibility internationally as well as in Pakistan. The Chairman & directors of the Company are resourceful and experienced businessmen. Payments are reported as correct. The Company can be considered good for normal business dealings at usual trade terms and conditions.
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CLARIANT
PAKISTAN LIMITED |
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BALANCE SHEET AS
AT 31ST DECEMBER, 2005 |
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2005 |
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2004 |
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Restated |
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(Rupees '000) |
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Property, plant
and equipment |
527,589 |
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547,350 |
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Long-term loans
and advances - considered goods |
28,258 |
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22,084 |
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Long-term
deposits |
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1,943 |
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2,080 |
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Deferred Tax
Assets |
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8,917 |
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- |
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Current Assets |
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Stores and spares |
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37,744 |
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30,555 |
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Stock-in-trade |
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1,222,702 |
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964,092 |
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Trade debts |
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1,185,633 |
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1,145,330 |
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Loans and advances - considered goods |
14,321 |
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9,939 |
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Trade deposits and short-term prepayments |
4,797 |
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5,179 |
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Taxation recoverable |
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- |
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90,647 |
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Other receivables |
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137,631 |
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21,020 |
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Cash and bank balances |
257,287 |
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103,627 |
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2,860,115 |
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2,370,389 |
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Less: Current
Liabilities and Provisions |
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Short-term loans |
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580,000 |
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375,000 |
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Short-term running finances utilised under
mark-up |
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arrangements |
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128,809 |
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465,560 |
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Mark-up accrued |
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29,927 |
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19,950 |
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Creditors, accrued and other liabilities |
743,497 |
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537,418 |
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Taxation payable |
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20,026 |
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- |
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Current portion of redeemable capital |
375,000 |
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166,666 |
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1,877,259 |
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1,564,594 |
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982,856 |
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805,795 |
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Redeemable
Capital |
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500,000 |
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475,000 |
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Deferred Tax
Liability |
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- |
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4,942 |
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Net Assets |
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1,049,563 |
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897,367 |
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Financed by: |
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Share capital |
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155,968 |
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155,968 |
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Revenue reserves |
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620,000 |
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480,000 |
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Unappropriated profit |
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273,595 |
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261,399 |
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Shareholder's
Equity |
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1,049,563 |
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897,367 |
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Contingencies
& Commitments |
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CLARIANT
PAKISTAN LIMITED |
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PROFIT &
LOSS ACCOUNT |
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FOR THE YEAR
ENDED 31ST DECEMBER, 2005 |
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2005 |
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2004 |
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(Rupees '000) |
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Turnover |
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5,543,371 |
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5,025,949 |
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Discount and commission |
439,980 |
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377,864 |
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Sales tax |
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304,507 |
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683,147 |
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744,487 |
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1,061,011 |
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Net Sales |
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4,798,884 |
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3,964,938 |
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Cost of Sales: |
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Cost of goods sold |
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3,661,151 |
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3,068,394 |
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Distribution and marketing expenses |
258,842 |
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220,038 |
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3,919,993 |
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3,288,432 |
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878,891 |
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676,506 |
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Indenting commission |
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- net
of payment of Rs. 10.622 million (2004: Rs. 12.820 million) |
24,753 |
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26,008 |
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903,644 |
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702,514 |
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Administration expenses |
94,166 |
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98,924 |
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809,478 |
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603,590 |
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Other operating income |
6,006 |
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81,699 |
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815,484 |
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685,289 |
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Other operating expenses |
54,221 |
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41,050 |
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Operating profit |
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761,263 |
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644,239 |
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Finance cost |
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92,184 |
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98,405 |
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Profit before
taxation |
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669,079 |
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545,834 |
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Taxation |
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236,141 |
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210,113 |
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Profit after
taxation |
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432,938 |
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335,721 |
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Earnings per
share - basic and diluted |
27.76 |
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21.53 |
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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%)