MIRA
INFORM REPORT
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Report Date : |
02.05.2007 |
IDENTIFICATION DETAILS
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Name : |
RUPALI POLYESTER LIMITED |
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Registered Office : |
4th
Floor, IEP Building 97-B/D-1, Gulberg-III, |
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Country : |
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Financials (as on) : |
30.06.2006 |
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Date of Incorporation : |
24 May,
1980 |
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Com. Reg. No.: |
6012/19800507
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Legal Form : |
Public Limited Company |
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Line of Business : |
Manufacture and
sale of Polyester 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 : |
Slow but correct |
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Litigation : |
Clear |
Business Name
RUPALI POLYESTER LIMITED
Full Address
Registered Address
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4th
Floor, IEP Building 97-B/D-1, Gulberg-III, |
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Tel |
92 (042) 5713104, 5713101 |
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Fax |
92 (042) 5713096 |
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7th Floor, Gul Tower, I.I. Chundrigar
Road, Karachi, Pakistan. |
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Tel |
92 (021) 2412734, 2412731 |
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Fax |
92 (021) 2412735 |
Plant Address
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30.2 Kilometer Lahore
– Sheikhupura Road, Sheikhupura – 39350, Pakistan. |
Short Description Of
Business
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Nature of Business |
Manufacture and
sale of Polyester Products. |
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Year Established |
24 May,
1980 |
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Registration # |
6012/19800507
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Auditors
Qavi & Co.
(Chartered
Accountants)
Legal Status
The RUPALI POLYESTER
LIMITED was registered in
Details of
Chairman/Directors
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Names |
Designation |
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Mr. Jafferali M. Feerasta Mr. Nooruddin Feerasta, Sr. Mr. Muhammad Rashid Zahir Mr. Muhammad Ali H. Sayani Mr. Amin A. Feerasta Mr. Syed Ali Zafar Mr. Abdul Hayee |
Chairman Chief Executive Director Director Director Director Director |
Categories of
Shareholders
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Categories of
Shareholder |
Percentage (%) |
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Individuals Joint Stock Companies Investment Companies Directors, Chief Executive Officer and their Spouse and Minor Children Executives National Bank of Investment Corporation of Associated Companies, Undertakings and related parties Public Sector Companies & Corporations Banks, DFI’s NBFIs, Insurance Companies, Modarabas & Mutual Fund Foreign Investors Co-operative Societies Trusts Others |
7.19 1.41 0.00 9.67 - 9.55 0.02 - - 3.31 25.01 0.02 43.82 - |
Associates
Subsidiary
None
Associated Companies
Rupali Bank Limited.
Rupali Energy (Private) Limited.
Rupali Nylon (Private) Limited.
Rupali Power (Private) Limited.
Products
(1) Polyester
Fabrics.
(2) Polyester
Fibre & Viscose Fibre.
(3) Polyester Yarn & Viscose Yarn.
Number of Employees
1,181
Plant Capacity and
Actual Production
2006 2005
(In Metric Tons)
Annual Capacity (In
three shifts)
- Yarn 10,100
6,840 - Fiber 12,000 12,000
Actual
Production
- Yarn 9,464 8,221
- Fiber 22,442 24,387
Bankers
(1) ABN AMRO Bank N.V.
(2)
Citibank, N.A.
(3)
Habib Bank Limited.
(4) MCB
Bank Limited.
(5)
Meezan Bank Limited.
(6)
Habib Metropolitan Bank Limited.
(7) NIB
Bank Limited.
(8)
Soneri Bank Limited.
(9)
Standard Chartered Bank.
Financial Position
Sound.
Overview
The polyester staple fiber and filament yarn industry passed through difficult period owing mainly to under-utilization of production capacities of staple fiber and filament yarn. This was due to high volatility of raw material prices and excessive inflow of imported yarn and fabric at dumping prices. In the Federal Budget-2005, duty on polyester staple fiber and filament yarn was reduced to restrict smuggling of yarn and fabric but the import figure during the under review increased tremendously. Inspite of the impediments, the overall performance of the Company remained satisfactory. Revenue from sales declined by Rs. 124 million to Rs 3,526 million in the year 2006 from Rs. 3,650 million in 2005. prices of chips fell by 10% and of fiber and yarn by 4% as compared to the previous year. Quantity of chips sold decline by 22%. Although the sales volume of fiber and yarn registered a nominal increase, it did not offset the effect of declining prices on revenues. Profitability during the year remained under pressure as a result of increase in input cost and decrease in sale prices. Prices of petroleum based raw material PTA and MEG rose by 10% and 9% respectively as compared to the previous year. Similarly furnace oil prices increased by 19% to Rs. 23,070 from Rs. 19,400 per ton.
Future Outlook
The industry outlook in the coming year does not look very promising.
A number of factors could affect the performance of the Company. These factors
include crises in the
History of the
Company
Rupali Polyester Limited was incorporated at Karachi in May 1980 as a Public Limited Company and is listed on all stock exchanges of Pakistan. It owns and operates composite facilities to manufacture polyester fiber and filament yarn. It produces quality products by using latest technology and best quality of raw materials. The Company has the privilege of being one of the pioneers in Pakistan for manufacture of staple fiber of highest quality. Since its inception, the Company has been growing steadily through expansion and diversified operations. The assets of the Company have increased to over Rs. 2,767 million from the initial capital outlay of Rs. 150 million.
The Company has a polymerization unit with a capacity of 105 metric tons per day, polyester filament yarn capacity of 30 metric tons per day and a polyester staple fibre capacity of 65 metric tons per day. The various products of Rupali are in fact import substitution as these were previously imported from Japan, Indonesia, Taiwan and Korea. Now the Company is importing the basic raw materials only and through value addition is producing the highest quality products locally.
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
Company enjoys high prestige and reputation in the business community, banks, financial institutions and customers. It is also amongst major contributors to the national exchequer. All the directors of the company are resourceful and experienced businessmen. The trade relations are reported as fair. Payments to creditors etc are reported slow but normal. The Company can be considered for normal business dealings at usual trade terms and conditions.
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RUPALI
POLYESTER LIMITED |
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BALANCE
SHEET AS AT 30TH JUNE, 2006 |
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Rupees in thousand |
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Rupees in thousand |
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2006 |
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2005 |
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2006 |
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2005 |
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EQUITY
AND LIABILITIES |
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ASSETS |
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SHARE
CAPITAL AND RESERVES |
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NON-CURRENT
ASSETS |
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Property,
Plant and Equipment |
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Authorised
Capital |
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35,000,000
(2005: 35,000,000) Ordinary Shares of Rs. 10 each |
350,000 |
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350,000 |
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Operating
Fixed Assets |
661,303 |
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422,077 |
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Capital
Work-in-Progress |
79,365 |
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244,691 |
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Issued,
Subscribed and Paid-up |
340,685 |
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340,685 |
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740,668 |
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666,768 |
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Reserves |
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1,690,456 |
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1,681,888 |
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2,031,141 |
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2,022,573 |
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Long
Term Investments |
77,351 |
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60,722 |
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Long
Term Loans |
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33,000 |
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Long
Term Deposits and Prepayments |
3,727 |
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7,232 |
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NON-CURRENT
LIABILITIES |
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854,746 |
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734,722 |
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Deferred
liabilities |
175,725 |
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126,928 |
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CURRENT
ASSETS |
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Stores,
Spares and Loose Tools |
271,624 |
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409,555 |
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CURRENT
LIABILITIES |
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Stock-in-Trade |
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706,555 |
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489,409 |
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Trade
and other payables |
197,279 |
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166,503 |
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Trade
Debts - Unsecured |
12,081 |
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7,618 |
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Mark-up
Accrued |
44 |
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2 |
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Loans
and Advances |
31,078 |
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22,941 |
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Short
Term Borrowings |
- |
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Trade
Deposits and Short Term Prepayments |
4,860 |
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5,629 |
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Taxation
- net |
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37,510 |
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Other
Receivables |
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110,825 |
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123,050 |
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197,323 |
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204,015 |
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Taxation
- net |
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8,528 |
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Cash
and bank balances |
403,892 |
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560,592 |
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CONTINGENCIES
AND COMMITMENTS |
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1,549,443 |
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1,618,794 |
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2,404,189 |
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2,353,516 |
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2,404,189 |
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2,353,516 |
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RUPALI POLYESTER
LIMITED |
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PROFIT AND LOSS
ACCOUNT |
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FOR THE YEAR
ENDED 30 JUNE, 2006 |
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Rupees in
thousand |
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2006 |
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2005 |
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Sales |
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3,525,961 |
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3,649,631 |
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Cost of Sales |
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3,353,139 |
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3,378,752 |
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Gross Profit |
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172,822 |
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270,879 |
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Selling and distribution expenses |
9,407 |
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10,098 |
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Administrative and General Expenses |
71,963 |
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81,123 |
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Other operating expenses |
10,041 |
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21,819 |
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91,411 |
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113,040 |
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Other operating income |
88,808 |
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102,667 |
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Profit from operations |
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170,219 |
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260,506 |
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Finance costs |
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1,100 |
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1,785 |
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Profit before
taxation |
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169,119 |
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258,721 |
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Taxation |
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58,345 |
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76,447 |
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Profit after
taxation |
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110,774 |
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182,274 |
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Earning per Share - Basic & Diluted (Rupees) |
3.25 |
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5.35 |
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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%)