MIRA
INFORM REPORT
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Report Date : |
02.05.2007 |
IDENTIFICATION DETAILS
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Name : |
PAKISTAN STEEL MILLS CORPORATION (PVT) LIMITED |
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Registered Office : |
Administrative Block No.1, Bin Qasim, |
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Country : |
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Financials (as on) : |
30.06.2006 |
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Date of Incorporation : |
1968 |
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Com. Reg. No.: |
2477 /19870707 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacture of Steel 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 : |
Regular |
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Litigation : |
Clear |
Business Name
PAKISTAN STEEL MILLS CORPORATION (PVT) LIMITED
Full Address
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Registered Address & Factory |
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Administrative Block No.1, Bin Qasim, |
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Tel |
92 (21) 4750911, 4750156 |
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Fax |
92 (21) 4750160 |
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Website |
www.paksteel.com.pk |
Short Description Of
Business
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Nature of Business |
Manufacture of Steel Products. |
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Year Established |
1968 |
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Registration # |
2477 /19870707 |
Sales Office
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Address |
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Tel # |
92 (21) 9205764, 9205770,
9205771 |
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Fax # |
92 (21)
021-9206181 |
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Address |
42-A, |
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Tel # |
92 (42) 5757480, 5751056,
5760316 |
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Fax # |
92 (42)
5750309 |
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Address |
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Tel # |
92 (51) 2810494, 2820851,
2824369 |
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Fax # |
92 (51)
2828208 |
Legal Status
Private Limited Company in Public Sector.
Auditors
Ford Rhodes Sidat Hyder & Co.
(Chartered Accountants)
Details of Directors
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Names |
Designation |
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Maj Gen Muhammad Javed Hi Mr. Tauqir Ahmed Ms. Arifa Saboohi Mr. Zaffar Ahmed Khan Mr. Shahid Rahim Sheikh Mr. Kamran Mirza Lt. Gen. Sabahat Hussain Mr. Shaukat Tarin |
Chairman / Chief Executive Director Director Director Director Director Director Director |
Shareholders
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Names |
Number of Shares |
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Government of Director (Finance), |
1,720,649,698 01 01 |
Subsidiary
Pakistan Steel Mills Corporation (Pvt.) Limited is the
subsidiary of Pakistan
Steel Fabricating Co (pvt) Ltd.
Products
Acetylene.
Trolleys & Trailers.
Steel Fabricators.
Steel & Brass Ingots.
Steel & Iron.
Steel Products.
Tanks Vessels & Shells.
Coal & Coke.
Cylinders All Sorts.
Metal & Metal Products.
Oxygen Cylinders.
Pig Irons.
Number of Employees
20,662
Consumer & Traders
Detail
MOHID ENTERPRIS
Mohd Enterprises,
Nazstahl Enterprises,
Zeenat Steel Mills,
Jilani Enterprises,
Imran Pipe Mills Pvt Limited,
Rizwan Industrial Corporation (Pvt.) Ltd,
Pioneer Steel Mills (Pvt.) Limited.
CABA Enterprises (Pvt) Limited,
Ahsan Brothers,
Suppliers & Manufacturers Detail
M/s Ocean Enterprises.
M/s Darson Industries (Pvt). Limited.
Tabani Corporation.
Naaz Trading Corporation.
Bankers
Habib Bank Limited, Main Branch,
United Bank Limited,
MCB Bank Limited,
Production
Overall production capacity utilization in terms of raw steel was 62% in the year 2005 - 2006 as against 89% achieved during last year, budget target was 90% main reasons for decline in production were serious technical problems at coke oven batteries and less availability of imported coke due to refusal and delayed shipment of coke by the suppliers.
Sales
Future Outlook
In order to efficiently run the steel plant at 90% capacity, the management has planned to carry out long awaited major repair works of Coke Oven Batteries, Blast Furnace, Steel Making Department, Rolling Mills & Power Plants. The above projects are expected to be completed within two years up to 2008. After completion, their payback is estimated within 24 months. As a result, losses due to under capacity utilization, lower yield, rejection and higher energy consumption are controlled.
Foreign Exchange
Rates
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Currency |
Unit |
Pakistani Rupee |
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US Dollar |
1 |
Rs. 60.65 |
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1 |
Rs. 121.10 |
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Euro |
1 |
Rs. 82.60 |
Comments
The conduct of the company is correct and the mode of payment prompt no complaints have been heard regarding payments to local suppliers and banks. Company can be considered for normal business dealings at usual trade terms and conditions.
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PAKISTAN STEEL
MILLS CORPORATION (PVT) 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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Restated |
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(Rupees in '000) |
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ASSETS |
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NON-CURRENT
ASSETS |
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Tangible fixed
assets |
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Operating assets |
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13704596 |
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13954308 |
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Capital work in progress |
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42,800 |
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71,681 |
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13,747,396 |
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14,025,989 |
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Long-term investments |
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42,967 |
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44,309 |
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Long-term loans and advances |
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203,621 |
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350,650 |
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Long-term deposits |
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8,702 |
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7,792 |
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14,002,686 |
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14,428,740 |
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CURRENT ASSETS |
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Stores and spares |
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2,044,535 |
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1,853,802 |
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Stock-in-trade |
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7,720,422 |
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7,596,013 |
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Trade debtors |
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1,206,430 |
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1,169,774 |
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Short-term loans and advances |
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246,498 |
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332,298 |
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Short-term
deposits, prepayment and other receivables
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271,580 |
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572,409 |
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Taxation - net |
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165,465 |
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- |
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Cash and bank balances |
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10,923,531 |
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11,096,279 |
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22,578,461 |
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22,620,575 |
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TOTAL ASSETS |
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36,581,147 |
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37,049,315 |
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EQUITY AND
LIABILITIES |
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EQUITY |
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Share Capital |
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Authorised capital |
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2,500,000,000 (2005: 2,500,000,000) ordinary shares of
Rs. 10/- each |
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25,000,000 |
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25,000,000 |
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Issued, subscribed and paid-up capital |
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1,720,649,700 (2005: 1,720,649,700) ordinary shares of
Rs. 10/- each |
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fully paid in cash |
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17,206,497 |
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17,206,497 |
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Unappropriated profit |
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4,866,135 |
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3,936,582 |
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Surplus on revaluation of available for sale investments |
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1,529 |
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1,529 |
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22,074,161 |
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21,144,608 |
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Government fund |
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9,622 |
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9,622 |
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NON-CURRENT
LIABILITIES |
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Subordinated loan |
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7,767,069 |
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7,767,069 |
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Long-term loans |
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825,646 |
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825,646 |
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Deferred taxation |
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1,765,595 |
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1,934,593 |
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10,358,310 |
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10,527,308 |
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CURRENT
LIABILITIES |
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Current maturiry of long-term loans |
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- |
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625,000 |
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Deposits and advances |
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1563736 |
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1,105,048 |
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Creditors,
accrued and other liabilities |
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2194784 |
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3,222,066 |
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Provision for taxation - net |
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- |
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68,504 |
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Provisions |
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380534 |
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347,159 |
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4139054 |
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5,367,777 |
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CONTINGENCIES
AND COMMITMENTS |
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- |
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- |
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36,581,147 |
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37,049,315 |
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PAKISTAN STEEL
MILLS CORPORATION (PVT) LIMITED |
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PROFIT AND LOSS
ACCOUNT FOR THE YEAR ENDED JUNE 30, 2006 |
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2006 |
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2005 |
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Restated |
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(Rupees in '000) |
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Sales - net |
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20,492,155 |
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30,579,850 |
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Cost of goods sold |
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21,142,403 |
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19,853,762 |
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Gross (loss) / profit |
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(650,248) |
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10,726,088 |
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General & administrative expenses |
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1,054,224 |
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1,028,663 |
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Selling and distribution expenses |
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193,181 |
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187,435 |
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1,247,405 |
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1,216,098 |
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Operating profit |
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(1,897,653) |
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9,509,990 |
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Other income |
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3,493,267 |
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1,842,050 |
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Financial charges |
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(15,628) |
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(104,446) |
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Other charges |
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(194,437) |
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(502,347) |
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Voluntarily retirement benefits |
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(22,391) |
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(18,525) |
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Provision for Workers' Profits
Participation Fund |
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(68,268) |
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(536,449) |
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Net profit
before taxation |
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1,294,890 |
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10,190,273 |
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Taxation |
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365,337 |
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3,457,985 |
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Net profit after
taxation |
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929,553 |
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6,732,288 |
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Earning per
share - Basic & diluted |
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Rs. 0.54 |
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Rs. 3.91 |
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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%)