MIRA
INFORM REPORT
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Report Date : |
11.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
CLARIANT
PAKISTAN LIMITED |
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Registered Office : |
1-A/1, Sector-20, Korangi Industrial Area, Karachi |
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Country : |
Pakistan |
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Date of Incorporation : |
1996 |
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Com. Reg. No.: |
6606/19961007 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Manufacture and Sells Chemicals, Dyestuff,
Emulsions and Masterbatches |
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 : |
Regular |
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Litigation : |
Clear |
Business Name
CLARIANT PAKISTAN
LIMITED
Full Address
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Registered
Address |
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1-A/1,
Sector-20, Korangi Industrial Area, Karachi,
Pakistan |
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Tel |
92 (21) 5046710,
5046711 |
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Fax |
92 (21) 5046712 |
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Website |
Short Description Of Business
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Nature of Business |
Manufacture
& Sells Chemicals, Dyestuff, Emulsions and Masterbatches |
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Year Established |
1996 |
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Registration # |
6606/19961007 |
Factories
·
Korangi Industrial Area, Karachi.
·
Petaro Road, Jamshoro.
·
Katarband Road, Thokar Niaz Baig, Lahore.
Branches
In Faisalabad & Lahore
Auditors
A.F. Ferguson & Co.
(Chartered
Accountants)
Legal Status
The Company is a
limited liability company and is incorporated and domicified in Pakistan. The
Company is listed on the Karachi Stock Exchange
Details of Chairman/Directors
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Names |
Designation |
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Mr. Farhat A. Mirza Mr. Mujtaba Rahim Mr. Peter Lindner Mr. Dominik Strebel Mr. Andreas Walde Dr. S. Mubarik Ali Mr. Zahid Hussain |
Chairman Chief Executive Director Director Director Director Director |
Categories of Shareholders
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Shareholders |
Percentage
(%) |
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Individuals National Investment Trust and Investment Corporation of Pakistan Public Sector Companies & Corporations Associated Companies, Undertakings and Related Parties Directors, Chief Executive Officer and their Spouses & Minor
Children Banks, Development Finance Institutions, Non Banking Finance
Institutions, Insurance Companies, Modarbas and Mutual Fund Others |
8.084 11.557 4.186 75.000 - 0.779 0.393 |
Holding Company
The Company is a
subsidiary of Clariant International Limited incorporated in Switzerland.
Principle Activities
Clariant is the global leader in the field of Specialty Chemicals with
presence in five continents and 90 countries with more than 100 operating group
companies, employing about 25,000 people and headquartered in Muttenz near
Basle, Switzerland. Clariant’s businesses are organized in five divisions:
Textile, Leather & Paper Chemicals, Masterbatches, Pigments &
Additives, Functional Chemicals and Life Sciences Chemicals.
Number of Employees
356
Plant Capacity & Production
Production during the year was 47,447 tonnes (2006: 41,111 tonnes).
The capacity is indeterminable because of multi-product plants involving
varying processes of manufacture. The Company’s was according to market demand
Annual Sales Turnover (Last Two
Years)
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Years |
Rupees in ‘000 |
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2006 2007 |
5,582,103 6,335,091 |
Distributors
Mainly in all important cities of Pakistan.
Bankers and their addresses
(1) ABNO AMRO Bank.
(2) Citibank, N.A.
(3) Habib Bank
Limited, Pakistan.
(4) National Bank of
Pakistan.
(5) Standard Chartered
Bank (Pakistan) Limited, Pakistan.
(6) The Hongkong
Shanghai Banking Corporation, Pakistan.
Business Overview
The year 2007 has been a year of both challenges and opportunities and
the board is pleased to record that despite increasing cost of input raw
materials, spreading energy cost and rising inflation, Company continued to
focus on profitable growth supported by various cost containment and
operational improvement measures. The Company has managed to achieve an overall
sales growth of 13% as compared to last year. Net sales of the Company now
stand at the record level of Rs. 5.757 billion as compared to last year’s sales
of Rs. 5.081 billion. This sales growth is mainly volume driven and has been
made possible through the contribution of all the business segments. Favourable
sales growth in Textile has been recorded at 13% masterbatches at 20% and
leather at 6%.
Future Outlook
Trend of exceptional increase in input costs and adverse exchange rate
parity against Pak Rupees is expected to continue in the foreseen future.
However, with the anticipated improvement of political environment after
February 2008 elections and continuation of the business friendly policies of
the Government it hopes that Textiles and other major consumption industry
shall benefit from the improving business scenario. In view of the anticipated
growth, Company shall continue to sustain its market leadership in all the
business segments
Foreign Exchange Rates
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Currency |
Unit |
Pakistani Rupee |
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US Dollar |
1 |
Rs. 70.70 |
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UK Pound |
1 |
Rs.139.00 |
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Euro |
1 |
Rs.111.00 |
Financial Position
Very Sound.
Comments
Subject
Company enjoys excellent credibility internationally as well as in Pakistan.
The Chairman & directors of the Company are resourceful and experienced
businessmen. Payments are reported as correct. The Company can be considered
good for normal business dealings at usual trade terms and conditions.
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CLARIANT PAKISTAN LIMITED |
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BALANCE SHEET AS AT 31ST DECEMBER, 2007 |
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Note |
2007 |
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2006 |
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(Rupees '000) |
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ASSETS |
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Non-current assets |
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Property, plant and equipment |
3 |
851,456 |
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600,980 |
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Long-term loans and advances - considered goods |
4 |
31,703 |
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27,566 |
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Long-term deposits |
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2,113 |
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2,769 |
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Deferred Tax Assets - net |
5 |
- |
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15,855 |
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885,272 |
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647,170 |
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Current Assets |
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Stores and spares |
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6 |
40,354 |
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38,429 |
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Stock-in-trade |
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7 |
1,307,084 |
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1,170,443 |
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Trade debts |
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8 |
1,457,059 |
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1,231,429 |
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Loans and advances - considered goods |
9 |
17,532 |
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14,329 |
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Trade deposits and short-term prepayments |
10 |
18,172 |
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5,084 |
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Other receivables |
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11 |
272,973 |
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246,119 |
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Taxation recoverable |
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48,064 |
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- |
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Cash and bank balances |
12 |
209,729 |
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244,214 |
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3,370,967 |
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2,950,047 |
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Total Assets |
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4,256,239 |
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3,597,217 |
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EQUITY AND LIABILITIES |
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Capital and Reserves |
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Share capital |
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13 |
218,355 |
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218,355 |
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Revenue reserves |
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935,000 |
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770,000 |
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Unappropriated profit |
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361,276 |
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334,371 |
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Shareholders Equity |
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1,514,631 |
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1,322,726 |
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LIABILITIES |
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Non-current liabilities |
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Deferred tax liability - net |
5 |
6,456 |
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- |
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Long term financing - secured |
14 |
500,000 |
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700,000 |
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506,456 |
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700,000 |
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Current liabilites |
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Short-term borrowings - secured |
15 |
795,025 |
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563,457 |
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Mark-up accrued |
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16 |
34,697 |
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34,464 |
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Trade and other payables |
17 |
1,105,430 |
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763,491 |
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Taxation payable |
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- |
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13,079 |
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Current portion of long-term financing |
14 |
300,000 |
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200,000 |
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2,235,152 |
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1,574,491 |
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Contingencies & Commitments |
19 |
2,741,608 |
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2,274,491 |
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4,256,239 |
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3,597,217 |
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CLARIANT PAKISTAN LIMITED |
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PROFIT & LOSS ACCOUNT |
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FOR THE YEAR ENDED 31ST DECEMBER, 2007 |
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2007 |
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2006 |
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Note |
(Rupees '000) |
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Sales |
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19 |
6,335,091 |
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5,582,103 |
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Discount and commission |
19 |
549,114 |
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482,073 |
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Sales tax and federal excise duty |
19 |
28,521 |
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19,027 |
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577,635 |
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501,100 |
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Net Sales |
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5,757,456 |
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5,081,003 |
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Cost of Sales: |
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Cost of goods sold |
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20 |
4,422,438 |
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3,790,048 |
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Distribution and marketing expenses |
21 |
328,053 |
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304,310 |
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4,750,491 |
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4,094,358 |
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1,006,965 |
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986,645 |
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Administrative expenses |
22 |
106,939 |
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98,924 |
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Other operating income |
24 |
36,608 |
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53,835 |
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936,634 |
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941,556 |
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Other operating expenses |
25 |
70,364 |
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102,613 |
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Operating profit |
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866,270 |
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838,943 |
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Finance cost |
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26 |
201,534 |
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186,071 |
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Profit before taxation |
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664,736 |
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652,872 |
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Taxation - net |
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27 |
199,888 |
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215,944 |
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Profit after taxation |
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464,848 |
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436,928 |
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Earnings per share - basic |
28 |
21.29 |
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20.01 |
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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.42.72 |
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UK Pound |
1 |
Rs.84.42 |
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Euro |
1 |
Rs.67.38 |
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%)