MIRA
INFORM REPORT
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Report Date : |
31.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
SITARA CHEMICAL
INDUSTRIES LIMITED |
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Registered Office : |
601-602 Business Centre, Mumtaz Hasan Road, Karachi |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2007 |
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Date of Incorporation : |
1981 |
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Com. Reg. No.: |
0008909 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Chemicals and Yarn Spinning Unit |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Business Name
SITARA CHEMICAL
INDUSTRIES LIMITED
Full Address
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Registered
Address |
Plant
Location |
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601-602 Business Centre, Mumtaz Hasan
Road, Karachi, Pakistan |
28/32 K.M., Faisalabad - Sheikhupura Road,
Faisalabad, Pakistan |
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Tel |
92 (21) 2413944, 2420620 |
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Tel |
92 (41) 4689141, 4689145 |
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Fax |
92 (21) 2415452 |
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Fax |
92 (41) 4689147 4689148 |
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Website |
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Short Description Of Business
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Nature of Business |
Principal
activities of the Company is operation of Chemicals and Yarn Spinning Unit |
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Year Established |
1981 |
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Registration # |
0008909 |
Branches
In Faisalabad, Islamabad, Multan, Karachi & Lahore
Auditors
M.Yousuf Adil Saleem
& Co.
(Chartered Accountants)
Legal Status
Sitara Chemical Industries Limited was incorporated
in Pakistan on September 08,1981 as a public limited company under Companies Act,
1913 (now Companies Ordinance, 1984). The company is currently listed on all
Stock Exchanges in Pakistan.
Details of Directors
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Names |
Designation |
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Mr. Haji Bashir
Ahmed Mr. Muhammad
Adrees Mr. Javed Iqbal Mr. Muhammad
Anis Mr. Imran Ghafoor Mr. Haseeb Ahmed Mrs. Rukhsana
Adrees Mr. Rashid Zahir |
Chairman Chief Executive Director Director Director Director Director Director |
Categories of Shareholders
|
Shareholders |
Percentage
(%) |
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Associated Companies, Undertakings and Related Parties NIT & ICP Directors, CEO & their spouse and minor children Executives Public Sector Companies & Corporations Banks, DFIs, Non Banking Finance Institutions, Insurance Companies,
Modaraba & Mutual Fund Individuals Joint Stock Companies, Others etc |
- 7.41 64.39 - - 10.55 16.26 1.38 |
Associates
A. Subsidiary
None
B. Associated Companies
(1) Sitara Enterprises (Pvt) Limited, Pakistan.
(2) Sitara Fabrics Limited, Pakistan.
(3) Sitara International (Private) Limited, Pakistan.
(4) Sitara Textile Industries Limited, Pakistan.
(5) Sitara Energy Limited, Pakistan.
(6) Aziz Fatima Trust Hospital.
(7) Sitara Trade & Services, Pakistan.
(8) Sitara Spinning Mills Limited, Pakistan.
(9) Sapna Enterprises (Private) Limited, Pakistan.
(10) Sitara Hamza (Private) Limited, Pakistan.
(11) Sitara Pakistan (Pvt) Limited, Pakistan.
(12) Sitara Group Developer (Pvt) Limited, Pakistan.
(13) Sitara Peroxide Limited, Pakistan.
Product/Services
Principal activities of the Company is operation of
Chemicals and Yarn Spinning Unit
Number of Employees
More than 400
Plant Capacity & Production
Designed
Capacity Actual Production
Tons Tons
2007 2006 2007 2006
Caustic Soda 178,200 178,200
137,473 129,838
Sodium Hypochlorite 49,500 49,500 34,132 26,707
Bleaching Powder
7,500 7,500 4,244 4,121
Liquid Chlorine 8,000 8,000 8,707
8,129
Ammonium Chloride 3,000 3,000 2,583
2,740
Hydrochloric acid 143,000 143,000 124,068 115,832
(Textile Division)
Ring Spinning 22,080 22,080
Number of spindles
installed 22,080 22,080
Number of shifts per
day 3 3
Installed
capacity after conversion into 20/s count (Kgs) 10,110,166
10,110,166
Actual
production of yarn after conversion 9,978,032 10,991,174
Annual Sales Volume (Last 2
Years)
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Years |
In Pak Rupees |
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2006 2007 |
3,811,890,043/= 4,374,051,881/= |
Customers
Various Local.
Bankers
(1) Meezan Bank
Limited, Pakistan.
(2) National Bank
of Pakistan, Pakistan.
(3) Allied Bank
Limited, Pakistan.
(4) United Bank
Limited, Pakistan.
(5) Bank Alfalah
Limited, Pakistan.
(6) Dubai Islamic
Bank Pakistan Limited, Pakistan.
(7) The Bank of
Punjab, Pakistan.
(8) MCB Bank
Limited, Pakistan.
(9) Standard
Chartered Bank, Pakistan.
(10) Saudi Pak
Commercial Bank Limited, Pakistan.
(11) Al-Baraka
Islamic Bank B.S.C. (E.C.), Pakistan.
(12) Askari
Commercial Bank Limited, Pakistan.
(13) Faysal Bank
Limited, Pakistan.
(14) Habib Bank
Limited, Pakistan.
Business Review
Throughout the financial
year Company achieved various milestones which not only boosted profits for the
year but paved a way for continued growth in the coming years. Of these
milestones most significant is the completion of 22 MW Gas Fired Power Project.
Own power generation has resulted in lower cost of production and uninterrupted
power supply as well. Whereas, journey of developments for introduction of new
products continued and Company started the construction work of Calcium
Chloride and Chlorinated Paraffin Wax projects. New export markets have been
explored for Caustic Soda Flakes and other specialty chemical for better
return. Your company has achieved a net sales of Rs.4,374 Millions during the
year under review against Rs. 3,812 Millions in the previous year showing an
increase of 14.7 %. Gross profit earned during the year is Rs. 1,084 Millions
against previous year’s figure of Rs.705 Millions. Net Profit before tax
accounted for Rs.537 Millions against Rs. 358 Millions in the previous year.
Company became able to achieve this growth after commencement of production at
power plant and efficient / economic management of electricity from other
sources. During the year total exports of the company remained at Rs. 53
Millions, against previous year’s export of Rs. 55 Million.
Future Outlook
Whereas currently
sales of all products are on growing trend and costs are efficiently
controlled, it expect the same continued growth in coming years if all
contributing factors remained favourable. Company is considering different
options for diversifying its product line. PVC and Calcium Carbide projects are
actively under consideration and techno commercial activities are being carried
out. Company has started work on erection of Calcium Chloride and CPW plants
which will be in operation in year 2008 inshallah. Capacity of Calcium Chloride
will increase to 21,000 Metric Tons per annum from current capacity of 5000
Metric Tons per annum and product quality will meet international standards.
Foreign Exchange Rates
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Currency |
Unit |
Pakistani Rupee |
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US Dollar |
1 |
Rs. 63.15 |
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UK Pound |
1 |
Rs. 125.55 |
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Euro |
1 |
Rs. 99.40 |
Comments
Subject
Group is well known and all the directors are reported as resourceful and experienced
businessmen. Payments to creditors etc are reported as normal. The Company can
be considered good for normal business dealings at usual trade terms and
conditions.
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SITARA CHEMICAL INDUSTRIES LIMITED |
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BALANCE SHEET AS
AT JUNE 30, 2007 |
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2007 |
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2006 |
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Note |
Rupees |
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SHARE CAPITAL
AND RESERVES |
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Authorised capital |
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30,000,000 (2006: 30,000,000) ordinary |
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shares of Rs. 10/- each |
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300,000,000 |
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300,000,000 |
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Issued, subscribed and paid up capital |
3 |
185,535,990 |
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185,535,990 |
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Reserves |
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4 |
1,736,681,301 |
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1,472,356,077 |
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1,922,217,291 |
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1,657,892,067 |
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NON-CURRENT
LIABILITIES |
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Long term financing |
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5 |
1,846,515,061 |
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1,396,392,795 |
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Contribution to takaful reserve by TFC
holders |
6 |
- |
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8,873,824 |
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Long term murabaha |
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7 |
19,438,047 |
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58,314,131 |
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Long term deposits |
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8 |
12,706,103 |
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16,125,543 |
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Deferred liabilities |
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9 |
490,893,126 |
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360,226,949 |
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CURRENT
LIABILITIES |
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Trade and other payables |
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10 |
1,417,614,806 |
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1,209,553,762 |
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Profit / financial charges payable |
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11 |
57,628,576 |
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34,562,748 |
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Current portion
of |
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non current liabilities |
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12 |
222,627,643 |
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271,457,486 |
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Taxation |
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Income tax |
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368,638,456 |
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331,862,829 |
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Sales tax |
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26,291,893 |
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25,213,360 |
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2,092,801,374 |
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1,872,650,185 |
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CONTINGENCIES
AND COMMITMENTS |
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6,384,571,002 |
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5,370,475,494 |
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2007 |
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2006 |
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Note |
Rupees |
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NON-CURRENT
ASSETS |
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Property, plant and equipment |
14 |
4,205,865,813 |
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3,439,641,677 |
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Investment property |
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15 |
14,345,772 |
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15,100,813 |
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Long term investment |
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16 |
75,395,579 |
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11,203,932 |
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Long term loans and advances |
17 |
521,340 |
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761,397 |
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Long term deposits |
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18 |
38,960,050 |
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20,363,050 |
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CURRENT ASSETS |
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Stores, spares and loose tools |
19 |
208,020,031 |
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210,104,864 |
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Stock in trade |
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20 |
441,676,362 |
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407,042,247 |
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Trade debts |
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21 |
561,086,919 |
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353,050,222 |
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Loans and advances |
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22 |
560,761,814 |
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495,779,205 |
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Trade deposits and short term prepayments |
23 |
6,063,998 |
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5,022,304 |
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Other receivables |
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24 |
11,779,550 |
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7,243,685 |
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Investments |
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25 |
7,399,248 |
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4,180,475 |
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Cash and bank balances |
26 |
252,694,526 |
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400,981,623 |
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2,049,482,448 |
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1,883,404,625 |
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6,384,571,002 |
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5,370,475,494 |
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SITARA CHEMICAL INDUSTRIES LIMITED |
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PROFIT AND LOSS
ACCOUNT |
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FOR THE YEAR
ENDED JUNE 30, 2007 |
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2007 |
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2006 |
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Note |
Rupees |
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Sales - net |
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27 |
4,374,051,881 |
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3,811,890,043 |
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Cost of goods sold |
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28 |
(3,289,672,158) |
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(3,106,772,480) |
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Gross profit |
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1,084,379,723 |
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705,117,563 |
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Other operating income |
29 |
29,617,604 |
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9,939,001 |
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1,113,997,327 |
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715,056,564 |
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Distribution cost |
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30 |
(54,814,588) |
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(54,522,873) |
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Administrative expenses |
31 |
(164,803,036) |
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(140,981,544) |
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Other operating expenses |
32 |
(39,893,557) |
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(23,904,315) |
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Finance cost |
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33 |
(317,624,373) |
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(137,785,602) |
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Share of profit of associated company |
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54,132 |
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359,465 |
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Profit before
taxation |
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536,915,905 |
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358,221,695 |
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Provision for taxation |
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34 |
163,876,020 |
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91,709,031 |
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Net profit for
the year |
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373,039,885 |
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266,512,664 |
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Earnings per
share - Basic and diluted |
36 |
20.11 |
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14.36 |
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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. |
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%)