MIRA INFORM REPORT

 

 

Report Date :

03.07.2012

 

IDENTIFICATION DETAILS

 

Correct Name :

LAFARGE PAKISTAN CEMENT LIMITED

 

 

Registered Office :

18-B, Kaghan Road, F-8 Markaz, Islamabad,

 

 

Country :

Pakistan

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

23.05.1993

 

 

Com. Reg. No.:

0030391

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

Manufacture and sale of Cement

 

 

No. of Employees :

315

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

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, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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

 

LAFARGE PAKISTAN CEMENT LIMITED

 

 

Full Address       

 

Registered Address

18-B, Kaghan Road, F-8 Markaz, Islamabad, Pakistan

                       

Tel #

92 (51) 111-111-722

Fax #

92 (51) 2817300

 

 

Short Description Of Business

 

a.

Nature of Business           

Manufacture and sale of Cement

b.

Year Established

1993

c.

Registration #

0030391

 

 

Plant Location

           

Chhoie Mallot Road, Tehsil Kalar

Kahar, District Chakwal,

Pakistan

 

 

Regional Offices

 

In Lahore, Multan & Chakwal

 

 

Auditors

           

Ernst & Young Ford Rhodes Sidat Hyder

(Chartered Accountants)

 

 

 

Legal Status

 

Lafarge Pakistan Cement Limited, was incorporated in Pakistan on 23 May 1993 as a Public Limited Company

 

 

Details of Directors

 

Names

Designation

Mr. Ahmad Said Heshmat Hassan

 

Maj. Gen (R) Rehmat Khan

 

Mrs. Amal Tantawi

 

Mr. Ashraf Abouelkheir

 

Mr. Amr Ali Reda

 

Mr. Bilal Hamid Javaid

 

Mr. Shahid Anwar

Chairman

 

Chief Executive Officer

 

Director

 

Director

 

Director

 

Director

 

Director

 

 

Shareholders     

          

Categories of Shareholders

Percentage (%)

Directors, Chief Executive, their spouse and minor children

 

Associated Companies Undertakings & Related Parties

 

NIT / ICP

 

Banks, Development Finance Institutions and Non Banking Financial Institutions

 

Insurance Companies

 

Modaraba and Mutual Funds

 

General Public

 

Others

 

0.00

 

 

73.22

 

1.68

 

 

 

1.11

 

1.53

 

0.03

 

18.88

 

3.55

 

 

 

Holding Company

 

Pakistan Cement Holding Limited (PCH) holds 51.55% and Camden Holding PTE Limited (CHL) holds 21.67% ordinary shares of the Company

 

 

Products

 

Manufacture and sale of Cement

 

 

Number of Employees

 

315

 

 

Plant Capacity

 

 

                                                                              2011                              2010                                                                                            (Metric Tons)                  (Metric Tons)   

                                   

            Installed Capacity                                    2,400,000                       2,400,000      

            Actual production of cement                      1,689,556                     1,911,580

 

 

Annual Sales Volume

 

Years

In Pak Rupees

2010

2011

6,880,766,785/-

7,804,378,438/-

 

 

Distributors / Agents

 

Mainly exist at major cities of Pakistan


Bankers

           

(1) MCB Bank Limited, Pakistan.

(2) Citibank N.A., Pakistan.

(3) Habib Bank Limited, Pakistan.

(4) Allied Bank Limited, Pakistan.

(5) United Bank Limited, Pakistan.

(6) NIB Bank Limited, Pakistan.

(7) Askari Bank Limited, Pakistan.

(8) Soneri Bank Limited, Pakistan.

(9) Standard Chartered Bank Limited, Pakistan.

(10) Habib Metropolitan Bank Limited, Pakistan.

 

 

Future Outlook

 

The Company is optimistic about the future inspite of serious challenges, especially with regards to power availability and capacity utilization. However cost cutting steps including optimizing of fuel mix, government support in budget 2012 – 13, a hike in local construction and possibly the commencement of reconstruction activity in Afghanistan will allow the Company to offer its shareholders a more lucrative year.

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

           Rs. 95.70

UK Pound

1

           Rs. 148.80

Euro

1

           Rs. 119.70

 

Comments

          

Subject Company was established in 1993 and is engaged in manufacture and sale of cement. Current management is 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. 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.55.83

UK Pound

1

Rs.87.41

Euro

1

Rs.70.43

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.