MIRA
INFORM REPORT
|
Report Date : |
02.05.2007 |
IDENTIFICATION DETAILS
|
Name : |
PAKISTAN SYNTHETICS LIMITED |
|
|
|
|
Registered Office : |
3rd Floor,
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
30.06.2006 |
|
|
|
|
Date of Incorporation : |
November 18, 1984 |
|
|
|
|
Com. Reg. No.: |
8374/19841107 |
|
|
|
|
Legal Form : |
Public Limited Company. The shares of the Company are
listed on |
|
|
|
|
Line of Business : |
Manufacture and
sale of Polyester Staple Fibre |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
Business Name
PAKISTAN SYNTHETICS LIMITED
Full Address
|
Registered Address |
|
3rd Floor,
|
|
Tel |
92 (021) 201574,
2313031, 2313032, 2313033,2313034 |
|
Fax |
92 (021) 2310625 |
|
Factory Address |
|
F. 1, 2, 3, &
F. 13, 14 & 15, Hub Industrial Trading Estate, District Lasbella,
Balochistan. |
Short Description Of
Business
|
Nature of Business |
Manufacture and
sale of Polyester Staple Fibre. |
|
Year Established |
November 18, 1984 |
|
Registration # |
8374/19841107 |
Auditors
KPMG Taseer Hadi & Co.
(Chartered
Accountants)
Legal Status
The Company was incorporated on 18 November 1984 as a private
limited company in
Details of Chairman /
Directors
|
Names |
Designation |
|
Mr. Ebrahim Haji Karim Mr. Umer Haji Karim Mr. Haroon Haji Karim Mr. Anwar Haji Karim Mr. Yaqoob Haji Karim Mr. Ahmed Ebrahim Mr. Rafique Ibrahim Mr. Shahid Anwar |
Chairman Chief Executive Director Director Director Director Director Director |
Categories of
Shareholders
Categories
|
Percentage (%) |
|
Individuals Joint Stock Companies Financial Institutions Investment Companies Insurance Companies Foreign Investors Banks Modaraba Companies Leasing & Modarabas Mutual Funds |
57.49 21.07 11.29 0.05 3.80 6.28 - - 0.01 0.01 |
Associates
Subsidiary
None
Associated Companies
Al-Karam Textile Mills Limited.
Sattar (Pvt) Limited.
Dhabeji Salt Works Pvt Ltd.
Farooqi Food Industries.
Gul Agencies Pvt Ltd.
Haji Karim Haji Mohammad.
Iqbal Textile Mills Ltd.
Imran Crown Cork Pvt Ltd.
Muslim Cotton Mills Ltd.
Orient Textile Mills Ltd.
Pakistan Dairy Products Ltd.
Zaman Textile Mills Ltd.
Thermo King Pvt Ltd.
Products
Manufacturing and sale of Polyester Staple Fibre.
Number of Employees
226
Plant Capacity and
Production
2006 2005
(Metric Tonnes)
Capacity - Polyester staple fibre /
polyester chips 28,000 28,000
Actual production - Polyester staple fibre 23,092 17,532
-
Polyester chips
(intermediary product) 133 2,038
--------- ---------
23,225 19,570
Note:
The production capacity was not utilized in full mainly due to
reduced demand of polyester
staple fibre.
Bankers
(1)
Habib Bank Limited.
(2) Habib Metropolitan Bank Limited.
(3) CITIBANK
NA.
(4) Bank
Al-Habib Limited.
(5)
National Bank of Pakistan Limited.
(6) Bank
Al-Falah Limited.
(7)
Meezan Bank Limited.
(8) Bank
Al-Habib Limited.
Payment s
Regular
Overview
The polyester staple fibre continues to be adversely affected by escalating prices of its basic raw material i.e. PTA and MEG in international market, which is mainly due to the crude oil prices rising steadily from $ 45-50/bbl in the first half of 2005 to current values of $ 70/bbl. In addition hurricanes Katrina and Rita had dramatic impact on US Gulf Coast refineries and petrochemical plants, which also badly affected the prices of PTA and MEG in international market. Moreover, increase in cost of other inputs, particularly fuel and power due to increase in gas prices by more than 20% as compared to gas prices prevailed in June 2005, resulted in increase in the cost of goods manufactured.
Production &
Sales Volume
The production activities were carried out according to the market demand and the capacity utilization was planned to avoid carry forward of larger stocks. During the year under review, the company produced 23,092 tons of polyester staple fibre as against 17,532 tons of polyester staple fibre produced last year. However, only 133 tons of polyester chips were produced as compared to 2,038 tons last year.
Financial Results
The Company’s net sales for the year under review increased to Rs. 1,848 million (2005: Rs. 1,698 million), whereas cost of goods sold increased to Rs. 1,772 million (2005: Rs. 1,708 million), which was due to increase in cost of basic raw materials consumed. However, elimination of custom duty on PTA and MEG had positive impact on the cost of raw materials consumed.
Future Outlook
in the coming months, a number of new PTA startups in
COMPANY INFORMATION
Plant to manufacture polyester staple fibre with the Purified
Tetrephthalic Acid (PTA) process was set up by the Al- Karam Group at Hub.
Teijin of Japan provided technical assistance and the plant capacity is 15,000
tons per annum of 1.25 deniers. Commercial production started in January 1991.
Capacity is being raised to 28,000 tons at a cost of Rs. 150 million.
Foreign Exchange Rates
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 60.65 |
|
|
1 |
Rs. 121.10 |
|
Euro |
1 |
Rs. 82.60 |
Credit Profile
They have been in business since 1947. They are members of well known Haji Karim/Al-Karam Group of Companies. Haji Karim/Al-Karam Group came into existance on 24.10.1985 due topartition of Gul Ahmed Family in Eight Groups. Gul Ahmed Family started business of textiles in Pakistan in 1947 and established their first industrial project in 1953 under the name of Gul Ahmed Textile Mills Ltd. They setup Soft Drink Bottling Plant in 1961 under the name of Pakistan Beverage Co Pvt Ltd; Globe Textile Mills Ltd in 1967; Chily Corrugate Board Mills Ltd in 1968; Nakshbandi Industries Ltd in 1972; Modifil Industries Pvt Ltd in 1973 and Globe Textile Mills O.E. Ltd in 1980. The group specialized in manufacturing and sale of cotton yarns; Grey and printed clothes; madeups; cotton terry towels; art silk fabrics and bottling of soft drinks as well as processing of fruit juices. They are also manufacturing and trading of paper & board; crown cork and salts. After partition in 1985 the Haji Karim/Al-Karam Group acquired IGLOO Ice Cream manufacturing unit and set up some major industrial units consisting Al-Karam Textile Mlls Ltd; Pakistan Synthetics Ltd (Subject) and Zaman Textile Mills Ltd. Haji Karim/Al-Karam Group is one the largest offspring of Gul Ahmed Family whose group annual turnover in 1999-20 exceeds Pkr 9.2 billion; group equity over Pkr 3.6 billion; group assets estimated Pkr 5.433 billion and group employs over 7000 workforce. Group enjoy good credit reputation. Group is considered good for normal business engagements.
|
PAKISTAN SYNTHETICS LIMITED |
|
|
|||
|
BALANCE SHEET AS AT JUNE 30 2006 |
|
|
|||
|
|
|
|
2006 |
|
2005 |
|
EQUITY AND LIABILITIES |
(Rupees in '000) |
||||
|
SHARE CAPITAL AND RESERVES |
|
|
|
||
|
Share Capital |
|
|
|
|
|
|
Authorised |
|
|
|
|
|
|
70,000,000 ordinary shares of Rs. 10/- each |
700,000 |
|
700,000 |
||
|
|
|
|
|
|
|
|
Issued, subscribed and paid-up capital |
560,400 |
|
560,400 |
||
|
Revenue reserve |
|
412,500 |
|
412,500 |
|
|
Unappropriated profit / (accumulated loss) |
9,798 |
|
(16,576) |
||
|
|
|
|
422,298 |
|
395,924 |
|
|
|
|
982,698 |
|
956,324 |
|
Non-current liabilities |
|
|
|
|
|
|
Staff retirement benefits |
23,598 |
|
20,966 |
||
|
Deferred taxation |
|
30206 |
|
48475 |
|
|
|
|
|
53,804 |
|
69,441 |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Trade and other payables |
199,656 |
|
215,986 |
||
|
Short-term borrowings |
|
40,813 |
|
60,000 |
|
|
Taxation - net |
|
15,518 |
|
- |
|
|
|
|
|
255,987 |
|
275,986 |
|
|
|
|
|
|
|
|
Contingencies and commitments |
|
|
|
||
|
|
|
|
|
|
|
|
Total equity and liabilities |
1,292,489 |
|
1,301,751 |
||
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
Property, plant and equipment |
454,095 |
|
491,342 |
||
|
Long-term loans and advances |
613 |
|
900 |
||
|
Long-term deposits and prepayments |
257 |
|
296 |
||
|
|
|
|
454,965 |
|
492,538 |
|
Current assets |
|
|
|
|
|
|
Stores and spares |
|
119493 |
|
130478 |
|
|
Stock-in-trade |
|
413076 |
|
281013 |
|
|
Trade debts |
|
264290 |
|
275101 |
|
|
Loans and advances |
|
1367 |
|
1321 |
|
|
Deposits and short term prepayments |
181 |
|
120 |
||
|
Other receivables |
|
27435 |
|
67989 |
|
|
Taxation - net |
|
- |
|
21013 |
|
|
Cash and bank balances |
11682 |
|
32178 |
||
|
|
|
|
837524 |
|
809213 |
|
Total assets |
|
1,292,489 |
|
1,301,751 |
|
|
PAKISTAN SYNTHETICS LIMITED |
|
|
|||
|
PROFIT AND LOSS ACCOUNT |
|
|
|
||
|
FOR THE YEAR ENDED JUNE 30 2006 |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2006 |
|
2005 |
|
|
|
|
(Rupees in thousand) |
||
|
|
|
|
|
|
|
|
Net sales |
|
|
1,847,610 |
|
1,697,567 |
|
|
|
|
|
|
|
|
Cost of sales |
|
(1,772,024) |
|
(1,707,602) |
|
|
Gross profit / (loss) |
|
75,586 |
|
(10,035) |
|
|
|
|
|
|
|
|
|
Other operating income |
12,481 |
|
5,893 |
||
|
|
|
|
88,067 |
|
(4,142) |
|
|
|
|
|
|
|
|
Distribution and selling costs |
(8,913) |
|
(8,533) |
||
|
Administration and general expenses |
(39,432) |
|
(35,542) |
||
|
Other operating expenses |
(3,336) |
|
(2,003) |
||
|
|
|
|
(51,681) |
|
(46,078) |
|
Profit / (loss) from operations before finance cost |
36,386 |
|
(50,220) |
||
|
|
|
|
|
|
|
|
Finance cost |
|
(9,336) |
|
(8,677) |
|
|
Profit / (loss) before tax |
27,050 |
|
(58,897) |
||
|
|
|
|
|
|
|
|
Income tax |
|
|
(676) |
|
(10,695) |
|
|
|
|
|
|
|
|
Profit / (loss) after tax |
|
26,374 |
|
(48,202) |
|
|
|
|
|
|
|
|
|
|
|
|
(Rupee) |
||
|
|
|
|
|
|
|
|
Earnings per share - basic and diluted |
0.47 |
|
(0.86) |
||
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)