MIRA INFORM REPORT

 

 

Report Date :

04.08.2011

 

IDENTIFICATION DETAILS

 

Name :

SERVICE INDUSTRIES LIMITED

 

 

Registered Office :

Servis House, 2-Main Gulberg, Lahore

 

 

Country :

Pakistan

 

 

Financials (as on) :

31.12.2010

 

 

Year of Establishment :

1957

 

 

Com. Reg. No.:

0000864

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

Principal activities of the Company are manufacture & sale of Footwear, Tyres and Tubes and technical rubber products

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31st, 2011

 

Country Name

Previous Rating

(31.12.2010)

Current Rating

(31.03.2011)

Pakistan

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

                       

Business Name

 

SERVICE INDUSTRIES LIMITED

 

 

Full Address       

 

Registered Address

Servis House, 2-Main Gulberg, Lahore, Pakistan

                       

Tel #

92 (42) 35751990 - 96 (6 Lines)

Fax #

92 (42) 35710593, 35712109

Email

www.servis.com

 

Short Description Of Business

 

Nature of Business        

Principal activities of the Company are manufacture & sale of Footwear, Tyres and Tubes and technical rubber products

Year Established

1957

Registration #

0000864

 

 

Factories Location

           

            (1) G.T. Road, Gujrat, Pakistan  

 

            (2) Muridke-Sheikhupura Road, Muridke, Pakistan

 

 

Auditors

           

S.M. Masood & Company

(Chartered Accountants)

 

 

Legal Status

           

Service Industries Limited was incorporated as a Private Limited Company on March 20, 1957 and was converted to into a Public Limited Company on September 23, 1959. The shares of the Company are quoted on the Lahore & Karachi Stock Exchanges.

 

Details of Directors

 

Names

Designation

Mr. Arif Saeed

 

Mr. Omar Saeed

 

Mr. Shahid Hassan

 

Mr. M. Ijaz Butt

 

Mr. Mohammad Akram

 

Mr. Hasan Javed

 

Mr. Ahmad Shahid Hussain

 

Mr. Hamid Hussain

 

Mr. Manzoor Ahmed

Chairman

 

Chief Executive

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

 

Shareholders     

          

Categories of Shareholders

Percentage (%)

Directors, Chief Executive Officer and their spouse & minor children

 

Associated Companies, Undertakings and related parties

 

NIT & ICP

 

Banks, Development Financial Institutions, Non-Banking Financial Institutions

 

General Public

13.72

 

 

 

19.86

 

0.36

 

 

 

31.90

 

34.16

 

 

Associated Companies

 

(1)     Service Sales Corporation (Pvt) Limited, Pakistan.

(2)     Shahid Arif Investment (Pvt) Limited, Pakistan.

 

 

 

Products

 

Principal activities of the Company are manufacture & sale of Footwear, Tyres and Tubes and technical rubber products

 

 

Number of Employees

 

330

 

 

Plant Capacity

 

Footwear and others

 

Due to the nature of the Company’s business production capacity is not determinable.

 

 

                                 Installed Capacity                     Actual Production

           

                                            2010                         2009            2010                   2009

 

Tyres (Nos)                     9,674,765          8,514,630          5,156,825        4,800,013  

Tubes (Nos)                   16,559,954        15,153,504        11,757,625      12,628,337

 

 

Customers

 

Mainly in all important cities of Pakistan

 

 

Bankers

           

(1) Habib Bank Limited, Pakistan.

(2) United Bank Limited, Pakistan.

(3) MCB Bank Limited, Pakistan.

(4) Faysal Bank Limited, Pakistan.

(5) Barclays Bank PLC, Pakistan.

(6) Allied Bank Limited, Pakistan.

(7) HSBC Bank Middle East Limited, Pakistan.

(8) SAMBA Bank Limited, Pakistan.

 

 

 

Future Outlook

 

The demand of footwear in the world markets is predicted to drop. Due to the declining raw material prices, pressure on the finished goods prices has been created for corresponding selling price reduction. Power outage, recession in the world markets, lack of development activity and law and order situation will continue to be major causes of concern which are likely to adversely affect its profitability.

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

           Rs. 86.00

UK Pound

1

           Rs. 140.00

Euro

1

           Rs. 122.00

 

 

Comments

          

Subject is a well-established company having fine track. Directors are reported as experienced, respectable and having satisfactory means of their own. Trade relations are reported as fair. Payments are usually correct and as per commitments. Company can be considered for normal business dealings at usual trade terms and conditions.

 

           

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.38

UK Pound

1

Rs.72.20

Euro

1

Rs.62.87

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.