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MIRA
INFORM REPORT
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Report Date : |
09.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
GELCAPS (PAKISTAN) LIMITED |
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Registered Office : |
A/9, Mohammad Ali Bogra Road, Bath Island, Karachi-75530 |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2007 |
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Date of Incorporation : |
1984 |
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Com. Reg. No.: |
7769/19840107 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Manufacturers of Gelatin Capsules. |
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 |
Name
GELCAPS (PAKISTAN) LIMITED
Registered Address
A/9, Mohammad Ali Bogra Road, Bath Island, Karachi-75530, Pakistan
Tel, 92 (21) 5872941-4 Lines
92 (21) 5872898
Fax, 92 (21) 5872892
Website,
www.hashoogroup.com.pk
Factory Address
Plot No. B-43, H.I.T.E., District Lasbela, Baluchistan, Pakistan
Tel, 92 (202) 32434, 32903, 33068
Fax, 92 (202) 32513, 33145
Short Description
Of Business
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a. |
Nature of Business |
Manufacturers of Gelatin Capsules. |
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b. |
Year Established |
1984 |
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c. |
Registration # |
7769/19840107 |
Branches
In Lahore & Islamabad
Auditors
KPMG Taseer Hadi & Co.
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(Chartered
Accountants) |
Legal Status
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Gelcaps (Pakistan) Limited was incorporated in Pakistan on 08 January 1984 as an unquoted public limited company. The company commenced production on 1st July 1994. |
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Authorized Capital |
Rs. 500,000,000/- divided into 50,000,000 shares of Rs. 10/- each |
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Issued & Paid up Capital |
Rs. 137,000,000 divided into 13,700,000 shares of Rs. 10/- each |
Details of
Directors
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Names |
Designation |
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Mr. Shamsuddin Ibrahim Mr. Sadruddin Hashwani Mr. Murtaza S. Hashwani Mr. Vazir Ali F. Mohammad Mr. Shiraz Noordini Mr. Syed Aslam Ali Mr. Akhtar Bawany Mr. Ejaz Akhtar Ansari |
Chief Executive Director Director Director Director Director Director Director |
Categories of
Shareholders
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Shareholders |
Number of Share Held |
Percentage (%) |
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Individuals Joint Stock Companies Financial Institutions |
4,160,500 7,539,500 2,000,000 |
30.37 55.03 14.60 |
Associates
A. Subsidiary
None
B. Associated
Companies
- Pearl Continental Hotel, Karachi.
- Pearl Continental Hotel, Lahore.
- Pearl Continental Hotel, Rawalpindi.
- Pearl Continental Hotel, Peshawar.
- Pearl Continental Hotel, Bhurban.
- Karachi Marriot Hotel, Karachi.
- Islamabad Marriot Hotel, Islamabad.
- Orient Petroleum, Pakistan.
- Zaver Petroleum Corporation Limited,
Pakistan.
- Zaver Chemical, Pakistan.
- Zaver Mining Company, Pakistan.
- Pearls Tours & Travels (Pvt)
Limited, Pakistan.
- Trans-Air Travels (Pvt) Limited,
Pakistan.
- Hasan Ali & Company (Pvt) Limited,
Pakistan.
- Genesis Trading (Pvt) Limited, Pakistan.
- Net-21 (Pvt) Limited, Pakistan.
- Hashoo International (Pvt) Limited.
- Hashoo Private Limited, Pakistan.
- Associated Builders (Pvt) Limited,
Pakistan.
- Murtaza Construction Company (Pvt)
Limited, Pakistan.
- Cera-e-Noor, Pakistan.
- Hashwani Sales & Service (Pvt)
Limited, Pakistan.
- Hashoo Holdings (Private) Limited.
Product/Services
Principal activity of the company is to manufacture and sell empty hard gelatin capsules.
Number of Employees
132
Plant Capacity
& Production
2007 2006
(Capsules in thousand)
Capacity - rated 1,400,000 1,400,000
Normal Capacity 1,350,000 1,300,000
Production - net 1,081,132 1,117,844
Utilization 80% 86%
The company operates triple shift on 24 hours basis.
Annual Sales Volume
(Last 2 Years)
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Years |
In Pak Rupees |
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2006 2007 |
135,786,945/- 125,418,083/- |
Customers
Various Local.
Business Review
This year was marked with capacity enhancement activities. During the year installation of two more new state-of-the art Technophar machines was completed. This expansion project has affected the current year production very badly but this was an important step for the future growth of the Company. This expansion project is now complete and as compared to average daily production of 3.0 million capsules in 2006-2007, the average daily production for the month of September 2007 was 4.3 million capsules.
Future Outlook
The political situation in the region is deteriorating. Besides a blast on Chinese Engineers Vehicle, one pylon each in August and October 2007 was blasted. This has resulted in power shut down for 4 to 5 days in Hub Industrial Area. Sales in July and August 2007 were 214 million capsules, which was a positive increase of 55 million capsules over the corresponding period of the previous year. Orders of 231 million capsules were carried forward from prior months due to production related issues but these have now been overcome and the average production for the last 15 days of August 2007 and for the month of September was 4.3 million capsules per day as against 3.0 million capsules per day in the previous year. Quotations for generators and Air Compressor are in advance stage of finalization to help in controlling electrical power interruptions, which will facilitate achieving the targeted production of 5.5. to 6.0 million capsules per day. Present capsule market is increasing rapidly and noted at approximately 4.0 billion per annum. After installation of two new machines, annual installed capacity has increased to 2.2. billion capsules. Increased capacity will help the Company to overcome capacity constraint, better overhead absorption and increased its market share.
Bankers
(1) Habib Bank Limited.
(2) Habib Metropolitan Bank Limited.
(3) Bank Alfalah Limited.
(4) Soneri Bank Limited.
(5) PICIC Commercial Bank Limited.
(6) ABN Amro Bank.
Foreign Exchange
Rates
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Currency |
Unit |
Pakistani Rupee |
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US Dollar |
1 |
Rs. 68.55 |
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UK Pound |
1 |
Rs. 133.85 |
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Euro |
1 |
Rs. 105.55 |
Comments
Hashoo Group of Companies enjoys excellent credibility in the Pakistani Business Circle. Group is engaged in diversified activities, which include Pharmaceutical, Power Generation, Hotels, Chemical, Mining, Construction & Information Technology etc. All the directors are reported as resourceful and experienced businessmen. Subject Company can be considered good for normal business dealings at usual trade terms and conditions.
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BALANCE SHEET AS
AT 30 JUNE 2007 |
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Note |
2007 |
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2006 |
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SHARE CAPITAL |
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Authorised |
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50,000,000 ordinary shares |
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of Rs. 10 each |
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500,000,000 |
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500,000,000 |
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Issued, subscribed and paid-up |
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13,700,000 ordinary shares of |
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Rs. 10 each fully paid in cash |
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137,000,000 |
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137,000,000 |
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UNAPPROPRIATED PROFIT |
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23,145,968 |
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36,643,942 |
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160,145,968 |
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173,643,942 |
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SURPLUS ON
REVALUATION |
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OF FIXED ASSETS |
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3 |
26,350,356 |
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14,744,101 |
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LIABILITIES
AGAINST ASSETS |
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SUBECT TO
FINANCE LEASE |
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4 |
38,472,139 |
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1,225,023 |
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DEFERRED TAX
LIABILITY |
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5 |
23,245,875 |
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23,742,971 |
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61,718,014 |
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24,967,994 |
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CURRENT
LIABILITIES |
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Short term running finances |
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6 |
44,903,665 |
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- |
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Current maturity of liabilities against |
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assets subject to lease finance |
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4 |
30,238,821 |
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1,360,635 |
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Due to associated companies |
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7 |
50,181,986 |
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29,800,543 |
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Creditors, accrued expenses |
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and other liabilities |
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8 |
39,486,245 |
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14,399,216 |
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164,810,717 |
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45,560,394 |
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CONTINGENCIES
& COMMITMENTS |
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9 |
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Rupees |
413,025,055 |
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258,916,431 |
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Note |
2007 |
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2006 |
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TANGIBLE FIXED
ASSETS |
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Operating fixed assets |
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10 |
169,868,480 |
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171,347,056 |
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CAPITAL WORK IN
PROGRESS |
11 |
193,280,903 |
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35,693,247 |
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LONG TERM
DEPOSITS - Leases |
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5,382,900 |
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4,345,800 |
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368,532,283 |
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211,386,103 |
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CURRENT ASSETS |
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Stores and spares |
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12 |
2,000,366 |
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2,828,805 |
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Stock-in-trade |
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13 |
9,304,977 |
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7,855,666 |
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Trade debts |
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14 |
24,392,785 |
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29,783,784 |
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Advances, deposits, prepayments |
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and other receivables |
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15 |
5,024,620 |
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3,249,001 |
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Advance tax |
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16 |
2,588,130 |
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1,527,940 |
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Cash and bank balances |
17 |
1,181,893 |
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2,285,132 |
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44,492,772 |
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47,530,328 |
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Rupees |
413,025,055 |
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258,916,431 |
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PROFIT & LOSS
ACCOUNT |
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FOR THE YEAR
ENDED 30 JUNE, 2007 |
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Note |
2007 |
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2006 |
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Sales - net |
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18 |
125,418,083 |
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135,786,945 |
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COST OF SALES |
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19 |
119,621,223 |
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106,922,614 |
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GROSS PROFIT |
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5,796,860 |
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28,864,331 |
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OPERATING EXPENSES |
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Administrative expenses |
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20 |
8,974,780 |
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9,908,050 |
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Selling and distribution expenses |
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22 |
8,297,640 |
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6,201,799 |
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Financial charges |
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23 |
12,589,656 |
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1,093,129 |
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29,862,076 |
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17,202,978 |
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OPERATING PROFIT |
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(24,065,216) |
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11,661,353 |
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OTHER INCOME |
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24 |
1,341,405 |
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1,420,655 |
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(22,723,811) |
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13,082,008 |
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OTHER CHARGES |
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25 |
- |
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845,495 |
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(LOSS) / PROFIT
BEFORE TAXATION |
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(22,723,812) |
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12,236,513 |
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TAXATION |
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26 |
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-
Current |
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643,652 |
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1,254,218 |
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-
Deferred |
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(7,839,623) |
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3,616,585 |
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(7,195,971) |
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4,870,803 |
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PROFIT FOR THE
YEAR |
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(15,527,841) |
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7,365,710 |
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(LOSS) /
EARNINGS PER SHARE - basic and diluted |
Rupees |
-1.13 |
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0.54 |
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The annexed notes form an integral part of
these financial statements. |
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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%)