MIRA INFORM REPORT

 

 

Report Date :           

19.03.2011

 

IDENTIFICATION DETAILS

 

Name :

GENERAL TYRE AND RUBBER COMPANY OF PAKISTAN LIMITED

 

 

Registered Office :

H-23/2, Landhi Industrial Trading Estate, Landhi, Karachi

 

 

Country :

Pakistan

 

 

Financials (as on) :

30.06.2010

 

 

Year of Establishment :

1963

 

 

Com. Reg. No.:

0001633

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

manufacturer of Tyres and Tubes for Automobiles

 

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 :

Good

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 – December 31, 2010

 

Country Name

Previous Rating

                   (30.09.2010)                  

Current Rating

(31.12.2010)

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

 

GENERAL TYRE AND RUBBER COMPANY OF PAKISTAN LIMITED

 

 

Full Address       

 

Registered Address

H-23/2, Landhi Industrial Trading Estate, Landhi, Karachi, Pakistan

                       

Tel #

92 (21) 111-487-487, 35080172 - 81 (9 Lines)

Fax #

92 (21) 35081212, 35080171

 

 

Short Description Of Business

 

a.

Nature of Business        

Company is engaged in the manufacture of Tyres and Tubes for Automobiles

b.

Year Established

1963

c.

Registration #

0001633

 

 

Branches

 

In Lahore, Islamabad & Multan

 

 

Auditors

 

A.F. Ferguson & Co.

(Chartered Accountants)

 

Hameed Chaudhri & Co.

(Chartered Accountants)

 

 

Legal Status

 

Subject Company is a public limited company incorporated in Pakistan and is listed at Karachi, Lahore & Islamabad Stock Exchanges of Pakistan

 

 

 

Details of Directors

 

Names

Designation

Lt. Gen.(Retd) Ali Kuli Khan Khattak

 

Mr. Mohammad Shahid Hussain

 

Mr. Ahmed Kuli Khan Khattak

 

Mr. Firasat Ali

 

Mr. Ikram Ul-Majeed Sehgal

 

Mr. M. A. Faisal Khan

 

Mr. Manzoor Ahmed

 

Mr. Mazhar Sharif

 

Mr. Muhammad Aurangzeb Amin

 

Mr. Nabil Daudur Rahman

 

Mr. Raza Kuli Khan Khattak

 

Mr. Umer Latif

 

Dr. Willi Flamm

 

Chairman

 

 Chief Executive

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

 

Categories of Shareholders                

 

Names

Shareholding (%)

Individuals

 

Joint Stock Companies

 

Insurance Companies

 

Financial Institutions

 

Charitable Trust

 

Investment Companies

 

Foreign Companies

 

Others

16.19

 

30.88

 

2.20

 

40.67

 

0.12

 

0.00

 

9.79

 

0.15

 

 

Associated Companies                 

 

(1) Bibojee Services (Private) Limited, Pakistan.

(2) Pakistan Kuwait Investment Company (Private) Limited, Pakistan.

(3) Continental Global Holding Netherlands B.V.

 

 

Products

 

Company is engaged in the manufacture of Tyres and Tubes for Automobiles

           

 

Number of Employees

 

550

 

 

Plant Capacity & Production - In Units

 

                                                                                                2010                 2009

 

Capacity: Tyre sets                                        1,888,793         1,726,063

 

Production: Tyre sets                                  1,533,425         1,329,829

           

            Actual production was sufficient to meet the demand.

 

 

Annual Sales Volume

(Last Two Years)

Years

In Pak Rupees

2009

2010

5,351,341,000/-

6,355,293,000/-

 

 

 

 

Distributors Network

 

Mainly exist at all major cities of Pakistan

 

 

Bankers

 

(1) Allied Bank Limited, Pakistan.

(2) Arif Habib Bank Limited, Pakistan.

(3) Askari Bank Limited, Pakistan.

(4) Faysal Bank Limited, Pakistan.

(5) Habib Bank Limited, Pakistan.

(6) Meezan Bank Limited, Pakistan.

(7) MCB Bank Limited, Pakistan.

(8) National Bank of Pakistan, Pakistan.

(9) Soneri Bank Limited, Pakistan.

(10) Standard Chartered Bank Pakistan Limited, Pakistan.

(11) United Bank Limited, Pakistan.

 

 

Future Outlook

 

I foresee an optimistic future for our company and am pleased to inform the shareholders that your management achieved better terms for renewal of the Technical Service Agreement with Continental Tire the Americas, LLC (formerly Continental North America Inc.). The New Agreement shall soon be finalized and will better support, timely accomplishment of balanced production, modernization, training of manpower and quality and support for steady expansion which will remain an ongoing pursuit. The ravaging floods which recently hit Pakistan will inevitably have a serious negative impact on the national economy and result in severe setback to the social welfare and well being of people. It may also create a recessional spell with suppressed sales for most industries including ours. These unprecedented flood ravages have caused immense damage to the road and bridges infrastructure of the country, which after a while, may also provide an impetus to the Industry.

 

 

Memberships

 

·         Federation Pakistan Chamber of Commerce & Industry.

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

           Rs. 85.30

UK Pound

1

           Rs. 137.39

Euro

1

           Rs. 119.36

 

 

Comments

 

Subject Company was established in 1963. Company is engaged in the manufacture of Tyres and Tubes for Automobiles. All the directors are reported as qualified, resourceful & experienced businessmen. Subject can be considered for normal business dealings at usual trade terms and conditions.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.09

UK Pound

1

Rs.72.82

Euro

1

Rs.63.43

 

 

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

 

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.