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Report Date : |
24.12.2012 |
IDENTIFICATION DETAILS
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Name : |
SERVICE INDUSTRIES LIMITED |
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Registered Office : |
Servis House, 2-Main Gulberg, Lahore |
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Country : |
Pakistan |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
20.03.1957 |
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Com. Reg. No.: |
0000864 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacture & Sale of Footwear, Tyres and Tubes and technical
rubber products |
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No. of Employees : |
370 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Pakistan |
B2 |
B2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
pakistan - ECONOMIC OVERVIEW
Decades of internal political disputes and low levels of foreign
investment have led to slow growth and underdevelopment in Pakistan.
Agriculture accounts for more than one-fifth of output and two-fifths of
employment. Textiles account for most of Pakistan's export earnings, and
Pakistan's failure to expand a viable export base for other manufactures has
left the country vulnerable to shifts in world demand. Official unemployment is
6%, but this fails to capture the true picture, because much of the economy is
informal and underemployment remains high. Over the past few years, low growth
and high inflation, led by a spurt in food prices, have increased the amount of
poverty - the UN Human Development Report estimated poverty in 2011 at almost
50% of the population. Inflation has worsened the situation, climbing from 7.7%
in 2007 to more than 13% for 2011, before declining to 9.3% at year-end. As a
result of political and economic instability, the Pakistani rupee has
depreciated more than 40% since 2007. The government agreed to an International
Monetary Fund Standby Arrangement in November 2008 in response to a balance of
payments crisis. Although the economy has stabilized since the crisis, it has
failed to recover. Foreign investment has not returned, due to investor
concerns related to governance, energy, security, and a slow-down in the global
economy. Remittances from overseas workers, averaging about $1 billion a month
since March 2011, remain a bright spot for Pakistan. However, after a small
current account surplus in fiscal year 2011 (July 2010/June 2011), Pakistan's
current account turned to deficit in the second half of 2011, spurred by higher
prices for imported oil and lower prices for exported cotton. Pakistan remains
stuck in a low-income, low-growth trap, with growth averaging 2.9% per year
from 2008 to 2011. Pakistan must address long standing issues related to
government revenues and energy production in order to spur the amount of
economic growth that will be necessary to employ its growing population. Other
long term challenges include expanding investment in education and healthcare,
and reducing dependence on foreign donors.
|
Source : CIA |
SERVICE INDUSTRIES LIMITED
|
Registered
Address |
|
Servis House, 2-Main Gulberg, Lahore, Pakistan |
|
Tel # |
92 (42) 35751990 - 96 (6
Lines) |
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Fax # |
92 (42) 35710593, 35712109 |
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Email |
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a. |
Nature of Business |
Principal activities of the Company are manufacture & sale of
Footwear, Tyres and Tubes and technical rubber products |
|
b. |
Year Established |
1957 |
|
c. |
Registration # |
0000864 |
(1) G.T.
(2) Muridke-Sheikhupura
S.M. Masood & Company
(Chartered Accountants)
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.
|
Names |
Designation |
|
Mr. Chaudhry Ahmed Javed Mr. Omar Saeed Mr. M. Ijaz Butt Mr. Arif Saeed Mr. Hasan Javed Mr. Riaz Ahmed Mr. Shaukat Ellahi Shaikh Mr. Muhammad Amin Mr. Manzoor Ahmed |
Chairman Chief Executive Officer Director Director Director Director Director Director Director |
|
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 Insurance Companies Modarabas & Mutual Funds General Public (Local) Others |
9.9289 19.8642 0.3676 15.9836 0.3649 14.4474 36.6148 2.4286 |
Service Sales Corporation (Pvt) Limited, Pakistan.
Shahid Arif Investment (Pvt) Limited, Pakistan.
Principal activities of the Company are manufacture & sale of
Footwear, Tyres and Tubes and technical rubber products
370
Footwear and
others
Due to the nature of the Company’s business production capacity is not
determinable.
Installed
Capacity Actual Production
2012 2011 2012 2011
Tyres (Nos) 9,674,765 9,674,765 5,074,655 5,156,825
Tubes (Nos) 17,503,361 16,559,954 11,998,839 11,757,625
Mainly exist at important cities of Pakistan
|
(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. |
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.
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 97.30 |
|
UK Pound |
1 |
Rs. 159.00 |
|
Euro |
1 |
Rs. 128.13 |
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.55.08 |
|
UK Pound |
1 |
Rs.89.53 |
|
Euro |
1 |
Rs.72.77 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
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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 |
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.