MIRA
INFORM REPORT
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Report Date : |
29.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
LAKSON TOBACCO
COMPANY LIMITED. |
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Registered Office : |
Lakson Square, Building No. 2, Sarwar
Shaheed Road, Karachi |
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Country : |
Pakistan |
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Date of Incorporation : |
10.02.1969 |
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Com. Reg. No.: |
00002607 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Manufacture and Sale of Cigarettes and
Tobacco. |
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 : |
Clear |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Business Name
LAKSON TOBACCO COMPANY LIMITED.
Full Address
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Registered
Address |
Factory Address |
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Lakson Square, Building No. 2, Sarwar
Shaheed Road, Karachi, Pakistan. |
(1)
E/15,
S.I.T.E., Kotri District Dadu, (Sindh) (2)
Plot No. 20,
Sector No. 17 Korangi Industrial Area, Karachi. (3)
Quadirabad
District.Sahiwal. (4)
Village:
Mandra Tehsil Gujar Khan District. Rawalpindi (5)
Ismaila
District. Swabi |
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Tel |
92 (21) 5689081, 89 (9 Lines) |
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Tel |
92 (21) 5063481, 5063482 |
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Fax |
92 (21) 5683410 |
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Fax |
92 (21) 5054331 |
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Email |
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Short Description Of Business
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Nature of Business |
Manufacture and
sale of Cigarettes and Tobacco. |
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Year Established |
February 10, 1969 |
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Registration # |
00002607 |
Auditors
Ford Rhodes Sidat Hyder & Co.
(Chartered
Accountants)
Legal Status
The Company was incorporated in
Pakistan on February 10, 1969 as a public limited company and its shares are
quoted on the Karachi and Lahore Stock Exchanges.
Details of Chairman/Directors
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Names |
Designation |
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Mr. Salman Hameed Mr. Matteo Lorenzo Pellegrini Mr. Douglas Walter Werth Mr. Kevin Douglas Click Mr. Kurt Hunkeler Mr. Joseph Mitchell Gault Mr. Micheal Patrick Murphy Mr. Eunice Hamilton Mr. Timothy John Southey Mr. Alan Ewan Hunking Mr. Mohammad Farooq Shakoor Mr. Asmer Naim |
Chairman &
Chief Executive Director Director Director Director Director Director Director Director Director Director Director |
Products
Principal activity
of the Company is manufacture and sale of cigarettes and tobacco.
Associates
A. Subsidiary
(1) Premier Tobacco Company (Private) Limited (Wholly owned subsidiary of the Company).
B. Associated Companies
Century Paper & Board Mills Limited.
Colgate Palmolive Pakistan Limited.
Cyber Internet Services (Pvt) Limited.
Century Insurance Company Limited.
Tritex Cotton Mills Limited.
Clover Foods Pakistan Limited.
Merit Packaging Limited.
Siza Foods (Pvt) Limited.
Reliance Chemicals Limited.
(10) Century Power Generation Limited.
(11) Accuray Surgicals Ltd.
(12) Siza (Pvt) Limited.
(13) Siza Services (Pvt) Limited.
(14)
Siza Commodities (Pvt) Limited.
(15)
Premier Fashions (Pvt) Limited.
Number of Employees
2,416
Capacity and Production
2007 2006
Number of
cigarettes
In millions
Installed capacity 21,071 40,620
Actual production 12,693
29,211
Number of shifts per day Two and a Two and a
half shifts
half shifts
Actual production
was sufficient to meet the demand.
Bankers
(1) ABN-Amro Bank N.V.
(2) Citibank N.A.
(3) Habib Bank Limited.
(4) The Hongkong & Shanghai Banking Corporation Ltd.
(5) Muslim Commercial Bank Limited.
(6) National Bank of Pakistan.
(7) Standard Chartered Bank.
(8) United Bank Limited.
Financial Position
Sound
Contribution to the National
Exchequer
Company’s contribute substantially to the national economy
in term of taxes and duties and the contribution is increasing as the Company
grows. This year the company contributed Rs. 5.84 billion to the national
exchequer in the form of Central Excise Duty, Sales Tax, Custom Duties, Income
Tax etc
Future Outlook
The management appreciates the untiring efforts, dedication and
commitment demonstrated by all employees and their strong performance,
significant contributions and their excellent response to the challenges faced
during the year. Its growth has been possible because of their enduring
commitment which has ensured a sound base of the Company.
Foreign Exchange Rates
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Currency |
Unit |
Pakistani Rupee |
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US Dollar |
1 |
Rs. 71.65 |
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UK Pound |
1 |
Rs. 143.40 |
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Euro |
1 |
Rs. 113.25 |
History And Background Of The
Company
The Company was incorporated in Pakistan on February 10, 1969 as a
public limited company and its shares are quoted on the Karachi and Lahore stock
exchanges. The principal activity of the company is the manufacture and sale of
cigarettes and tobacco. This company is the first and the parent company of the
lakson’s group of Companies. The company has been very aggressive in its
business activity throughout and has made very good progress and has become the
biggest manufacturer of cigarettes in Pakistan. All its products enjoy good
reputation and public acceptance.
Credit Profile
Lakson Group of Companies is engaged in diversified activities, which includes
Chemical, Food & Allied, Tobacco, Fuel & Energy, Information
Technology, Paper & Board, Surgical and Insurance etc. The group is well
known and directors are resourceful and experienced businessmen. Their trade
relations are reported as fair.
Payments to creditors etc are reported as normal. The company can be
considered for normal business dealings at usual trade terms and conditions.
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LAKSON TOBACCO
COMPANY LIMITED |
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BALANCE SHEET AS
AT DECEMBER 31, 2007 |
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December 31, |
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June 30, |
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Note |
2007 |
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2007 |
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(Rupees '000) |
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NON-CURRENT
ASSETS |
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Property, plant and equipment |
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4 |
2,804,956 |
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2,805,140 |
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Investment in a subsidiary company |
6 |
1 |
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1 |
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Long term loans |
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7 |
1,208 |
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1,124 |
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Long term deposits and prepayments |
8 |
26,178 |
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12,872 |
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2,832,343 |
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2,819,137 |
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CURRENT ASSETS |
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Stores and spares |
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9 |
215,816 |
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205,988 |
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Stock in trade |
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10 |
3,615,883 |
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2,532,953 |
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Trade debts |
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11 |
163,644 |
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85,099 |
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Loans and advances |
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12 |
77,900 |
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91,222 |
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Prepayments |
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66,219 |
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36,791 |
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Profit accrued |
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1,186 |
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4,175 |
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Other receivables |
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13 |
401,712 |
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26,777 |
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Income tax - net |
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86,370 |
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15,309 |
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Cash and bank balances |
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14 |
285,428 |
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775,758 |
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4,914,158 |
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3,774,072 |
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7,746,501 |
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6,593,209 |
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SHARE CAPITAL
AND RESERVES |
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Authorised capital |
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1,000,000 |
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1,000,000 |
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Issued, subscribed and paid-up capital |
15 |
615,803 |
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615,803 |
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Unappropriated profit |
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472,018 |
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1,381,190 |
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General reserve |
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4,427,000 |
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3,570,000 |
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5,514,821 |
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5,566,993 |
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LAKSON TOBACCO
COMPANY LIMITED |
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PROFIT AND LOSS
ACCOUNT |
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FOR THE SIX MONTHS
PERIOD ENDED DECEMBER 31, 2007 |
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Six months
period |
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year ended |
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ended December
31 |
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June 30, |
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Note |
2007 |
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2007 |
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(Rupees '000) |
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Gross turnover |
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10,271,943 |
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22,427,412 |
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Less : Sales tax |
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1,344,855 |
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2,972,997 |
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Turnover - net of sales tax |
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8,927,088 |
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19,454,415 |
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Cost of sales |
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21 |
7,101,740 |
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14,963,940 |
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Gross Profit |
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1,825,348 |
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4,490,475 |
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Distribution and marketing expenses |
22 |
883,267 |
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1,414,927 |
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Administrative expenses |
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23 |
202,258 |
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308,285 |
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1,085,525 |
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1,723,212 |
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739,823 |
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2,767,263 |
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Other operating expenses |
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24 |
94,510 |
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186,861 |
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645,313 |
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2,580,402 |
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Other operating income |
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25 |
35,589 |
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70,042 |
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Operating profit |
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680,902 |
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2,650,444 |
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Finance cost |
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26 |
8,461 |
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19,148 |
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Profit before
taxation |
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672,441 |
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2,631,296 |
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Taxation |
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27 |
201,180 |
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893,663 |
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Profit after
taxation |
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471,261 |
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1,737,633 |
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Rupees |
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Earnings per share - Basic |
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28 |
7.65 |
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28.22 |
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FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.42.49 |
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UK Pound |
1 |
Rs.84.21 |
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Euro |
1 |
Rs.66.33 |
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 |
|
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%)