MIRA
INFORM REPORT
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Report Date : |
08.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
RECKITT
BENCKISER PAKISTAN LIMITED |
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Registered Office : |
11th Floor, State Life Building # 11, Abdullah Haroon Road,
Karachi |
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Country : |
Pakistan |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
1952 |
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Com. Reg. No.: |
0000479
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Legal Form : |
Public Limited Company |
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Line of Business : |
Manufacturing and Marketing of Consumer Household and Pharmaceutical
Products |
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
RECKITT BENCKISER PAKISTAN LIMITED
Full Address
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Registered
Address |
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11th
Floor, State Life Building # 11, Abdullah Haroon Road, Karachi, Pakistan |
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Tel |
92 (21) 111-232-323, 5687104, 5687109 |
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Fax |
92 (21) 5682886 |
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Website |
Short Description Of Business
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Nature of
Business |
Engaged
in manufacturing and marketing of consumer household and pharmaceutical
products |
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Year Established |
1952 |
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Registration # |
0000479 |
Factory Location
Plot # F-18, S.I.T.E., Karachi,
Pakistan
Auditors
A. F. Ferguson & Co.
(Chartered
Accountants)
Legal Status
The Company is incorporated as a Public Limited
Company. During the year, the Company by virtue of a special resolution passed
at the annual general meeting and with the sanction of the High Court of Sindh
reduced its share capital by 50%
Details of Management
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Names |
Designation |
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Mr. Colin Day Mr. Ali Ahmed Khan Mr. Freddy Caspers Mr. Salvatore Caizzone Mr. David Poulter Mr. Roopak Taneja Mr. Nadir A. Jamal |
Chairman Chief Executive Director Director Director Director Director |
Shareholders
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Categories |
Shares
Held |
Percentage (%) |
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Individuals Modarabas Joint Stock Companies Others Financial Institutions |
205,845 1 14,492,868 415 2,260 |
1.40 0.00 98.58 0.00 0.02 |
Holding Company
Reckitt Benckiser PLC,
U.K. is the holding company of Reckitt Benckiser Pakistan Limited (Shares held
98.58%)
Products
Engaged in manufacturing and marketing of consumer household
and pharmaceutical products
Number of Employees
400
Annual Production Volume
The capacity and production
of the company’s plant is indeterminable as it is multi-product and involves
varying processes of manufacture
Annual Sales Volume
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Year |
In Pak Rupees |
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2006 |
3,702,444,000/- |
Agencies (Foreign)
Various International
Distributors
Mainly in all major cities of Pakistan
Exporting Countries
Mainly to Gulf & Far East
Countries.
Bankers
- Citibank N.A., Pakistan.
- Hong Kong & Shanghai Banking
Corporation, Pakistan.
- MCB Bank Limited, Pakistan.
- Prime Commercial Bank Limited, Pakistan.
- Standard Chartered Bank, Pakistan.
- Allied Bank Limited, Pakistan.
Financial Overview
Gross Sales for the year 2006 at Rs. 4,093.09 million as
against Rs. 3,837.55 million in the previous year showed growth of 6.66%.
profit before tax for the current year at Rs. 664.70 mn is a reasonable
increase over the PBT for the last year viz Rs. 517.4 mn which is mainly
attributable to the growth in major product categories. Net sales of Household
products at Rs. 2,348 mn are in increase of 13.35% over the last year primarily
on account of good volume growth in a few key categories which are being backed
by significant marketing spend. The overall sales of the Pharmaceuticals
segment showed a decrease and the sales were Rs. 1,354.4 mn as against sales of
Rs. 1,403.4 mn in 2005 with some categories having done better versus last year
whereas certain others under-performed.
Future Outlook
The Company will continue to be aggressive in the market and
will keep focus on increasing its brand portfolio and its market share combined
with business simplification and cost reduction measures. Opportunities for
extending the product portfolio will continue to be explored so as to ensure
top line growth.
Foreign Exchange Rates
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Currency |
Unit |
Pakistani Rupee |
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US Dollar |
1 |
Rs. 78.50 |
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UK Pound |
1 |
Rs. 136.00 |
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Euro |
1 |
Rs. 105.80 |
Comments
Subject Company enjoys good reputation internationally as well as in Pakistan.
All the Directors of the Company are reported as qualified, experienced and
resourceful businessmen. Payments are usually correct and as per commitments.
The Company can be considered for normal business dealings at usual trade terms
and conditions.
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RECKITT
BENCKISER PAKISTAN LIMITED |
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BALANCE SHEET AS
AT DECEMBER 31, 2006 |
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Note |
2006 |
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2005 |
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(Rupees in
thousand) |
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SHARE CAPITAL
AND RESERVES |
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Authorised capital |
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50,000,000 ordinary shares of Rs. 10/-
each |
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500,000 |
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500,000 |
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Issued, subscribed and paid-up capital |
11 |
147,014 |
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294,028 |
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Reserves - Capital |
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12 |
26,600 |
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26,600 |
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Unappropriated profit |
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92,860 |
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68,407 |
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266,474 |
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389,035 |
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DEFERRED
LIABILITY - Staff gratuity |
13 |
55,549 |
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82,415 |
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CURRENT LIABILITIES |
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Creditors, accrued and other liabilities |
14 |
1,085,640 |
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1,064,736 |
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Taxation |
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115,464 |
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137,704 |
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Dividends |
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15 |
151,531 |
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91,818 |
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1,352,635 |
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1,294,258 |
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COMMITMENTS |
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16 |
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1,674,658 |
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1,765,708 |
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FIXED ASSETS |
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17 |
177,779 |
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170,355 |
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DEFERRED
TAXATION |
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18 |
45,151 |
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47,964 |
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LONG TERM LOANS
AND ADVANCES |
19 |
3,712 |
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3,501 |
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LONG-TERM
DEPOSITS |
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20 |
55 |
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55 |
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CURRENT ASSETS |
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Stock-in-trade |
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21 |
425,104 |
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310,216 |
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Trade debts |
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22 |
52,867 |
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42,058 |
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Loans and advances |
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23 |
5,283 |
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17,491 |
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Short-term deposits and prepayments |
24 |
6,839 |
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10,632 |
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Accrued interest |
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9,235 |
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3,257 |
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Other receivables |
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25 |
388 |
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30,841 |
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Cash and bank balances |
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26 |
948,245 |
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1,129,338 |
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1,447,961 |
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1,543,833 |
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1,674,658 |
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1,765,708 |
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RECKITT
BENCKISER PAKISTAN LIMITED |
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PROFIT &
LOSS ACCOUNT |
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FOR THE YEAR
ENDED DECEMBER 31, 2006 |
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Note |
2006 |
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2005 |
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(Rupees in
thousand) |
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Sales |
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3 |
3,702,444 |
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3,474,835 |
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Cost of sales |
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4 |
(1,904,302) |
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(2,002,125) |
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Gross profit |
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1,798,142 |
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1,472,710 |
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Selling, marketing and administrative
expenses |
5 |
(1,231,976) |
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(1,010,610) |
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566,166 |
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462,100 |
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Other operating expenses |
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6 |
(56,925) |
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(40,062) |
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Other operating income |
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7 |
157,155 |
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96,177 |
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Profit from
operations |
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666,396 |
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518,215 |
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Financial expenses |
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8 |
(1,697) |
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(816) |
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Profit before
taxation |
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664,699 |
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517,399 |
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Taxation |
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9 |
(213,906) |
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(185,434) |
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Profit after
taxation |
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450,793 |
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331,965 |
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Unappropriated profit brought forward |
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68,407 |
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1,067 |
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519,200 |
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333,032 |
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Appropriations: |
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Interim dividend at Rs. 19 per share
(2005: Rs. 6 per share) |
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(279,326) |
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(176,417) |
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Final dividend at Rs. 10 per share (2005: Rs.
3 per share) |
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(147,014) |
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(88,208) |
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(426,340) |
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(264,625) |
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92,860 |
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68,407 |
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.48.72 |
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UK Pound |
1 |
Rs.82.17 |
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Euro |
1 |
Rs.65.90 |
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%)