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Report Date : |
04.06.2012 |
IDENTIFICATION DETAILS
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Name : |
ICI PAKISTAN LIMITED |
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Registered Office : |
ICI House, 5 West Wharf, Karachi-74000 |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Year of Establishment : |
1952 |
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Com. Reg. No.: |
0000535 |
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Legal Form : |
Limited Liability Company listed on |
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Line of Business : |
manufacturer of
polyester staple fibre, POY chips, soda ash, paints, specialty chemicals,
sodium bicarbonate and polyurethanes, marketing of seeds, toll manufactured
and imported pharmaceuticals and animal health products. It also acts as
an indenting agent and toll manufacturer |
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No. of Employees : |
2,067 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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Pakistan |
B2 |
B2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
ICI PAKISTAN LIMITED
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Registered
Address |
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ICI House, 5 West Wharf, Karachi-74000,
Pakistan. |
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Tel # |
92 (21) 111-100-200, 32313717, 22 (5 Lines) |
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Fax # |
92 (21) 32311739 |
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Website |
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a. |
Nature of Business |
Company is engaged in the manufacture of
polyester staple fibre, POY chips, soda ash, paints, specialty chemicals,
sodium bicarbonate and polyurethanes, marketing of seeds, toll manufactured
and imported pharmaceuticals and animal health products. It also acts as an
indenting agent and toll manufacturer. |
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b. |
Year Established |
1952 |
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c. |
Registration # |
0000535 |
In Islamabad, Multan, Lahore, Quetta,
Peshawar, Faisalabad & Karachi
KPMG Taseer Hadi & Co
(Chartered
Accoutants)
ICI Pakistan
Limited (“the Company”) is incorporated in Pakistan and is listed on Karachi,
Lahore and Islamabad Stock Exchanges.
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Names |
Designation |
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Mr. M J Jaffer Mr. Waqar A. Malik Mr. Mueen Afzal Mr. Ali A. Agha Mr. Bart Kaster Mr. Feroz Rizvi Mr. M. Nawaz Tiwana Mr. Derek W. Welch |
Chairman Chief Executive Director Director Director Director Director Director |
(A) Represents the 75.81% shareholding of the ICI Omricon B.V., a subsidiary
of AkzoNobel N.V.
(B) Categories of Account Holders and Sub Account Holders as per Central
Depository Register
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Shareholders
Categories |
Shareholding
Percentage (%) |
|
Associated Companies (a) Investment Companies Insurance Companies Joint Stock Companies Others Financial Institutions Modaraba Companies Mutual Funds Individuals Central Depository Company (b) |
75.81 0.00 0.00 0.01 0.15 0.01 0.00 0.00 1.71 22.31 |
A. Subsidiary
(1) ICI Pakistan PowerGen Limited (Wholly Owned Subsidiary).
B. Associated Companies
(1) ICI
Omricon B.V.
Company is engaged in the manufacture of polyester staple fibre, POY
chips, soda ash, paints, specialty chemicals, sodium bicarbonate and
polyurethanes, marketing of seeds, toll manufactured and imported
pharmaceuticals and animal health products. It also acts as an indenting agent
and toll manufacturer.
2,067
(Last 2 Years)
|
Years |
In Pak Rupees |
|
2010 2011 |
39,532,506,000/- 44,802,489,000/- |
- In metric tones except Paints which is in thousands of litres and
PowerGen which is in thousand of Kilowatts:
2011 2010
----------------------------
-----------------------------
Annual
Production Annual Production
Name Plate Name Plate
Capacity Capacity
Polyester 122,000 117,174
122,000 129,445
Soda
Ash 350,000 258,420
350,000 278,650
Paints - 29,338 -
34,748
Chemicals - 8,852
- 9,082
Sodium
Bicarbonate 20,000 24,340
20,000 23,700
Note:
The capacity of Paints, Agrochemicals and Chemicals is indeterminable because these are multi-product plants involving varying processes of manufacture.
(1) Soda Ash was
produced as per market demand.
(2) During the
year the Agrochemicals plant was mothballed pending restructure of the
Agrochemical and seeds business.
· Askari Bank Limited, Pakistan.
· Bank Alhabib Limited, Pakistan.
· MCB Bank Limited, Pakistan.
· Meezan Bank Limited, Pakistan.
· Bank Alfalah Limited, Pakistan.
· National Bank of Pakistan.
· Citibank N.A., Pakistan.
· Oman International Bank, Pakistan.
· Deutsche Bank A.G., Pakistan.
· Samba Bank Limited, Pakistan.
· Faysal Bank Limited, Pakistan.
· Standard Chartered Bank, Pakistan.
· Habib Bank Limited, Pakistan.
· The Royal Bank of Scotland, Pakistan.
· United Bank Limited, Pakistan.
Net sales income (NSI) was up 14 percent over last year. The operating
result was 23 percent lower than last year due almost entirely to a further
deterioration in the availability of gas by SNGPL to the Soda Ash and Polyester
Staple Fibre plants. During the year, the number of days gas was not available
to our Soda Ash and Polyester Staple Fibre plants were 174 days and 186 days
respectively, compared to 143 days and 108 days in 2010. The consequent
financial impact on the operating result of using alternative expensive fuel
was over Rs 825 million in 2011 compared to 2010. The operating result also
includes an impairment charge of Rs 210 million, relating to the investment in
ICI Pakistan PowerGen Limited, a 100 percent owned captive power company in
accordance with International Financial Reporting Standards. This impairment
has occurred due to the deterioration in the future prospects of the economic
benefits of investment on account of severe gas undersupply to ICI Pakistan
PowerGen Limited. In addition, your Company also incurred one off demerger
expenses amounting to Rs 170 million. The Paints, Chemicals and Life Sciences
businesses recorded strong growth in margins and operating result. The coal
fired boiler project already approved by the Board, at a cost of over Rs 2
billion, is expected to be commissioned in Q2 2013. It will significantly
improve the energy economics of the Soda Ash Business. Earnings per share at Rs
13.95 was lower by 20 percent compared with 2010. On a group basis (including
the result of the wholly owned subsidiary ICI Pakistan PowerGen Limited) profit
after tax for the year at Rs 2.17 billion was 12 percent lower compared with
2010.
The domestic energy supply issues run deeper into the industrial sector,
causing the cost of production to increase substantially and simultaneously
decreasing the downstream demand hence affecting both the margins and volumes
in the Soda Ash and Polyester Businesses. The Euro Zone crisis and weak growth
in the US will also negatively affect the regional margins, thus putting
additional pressure on profitability of the Soda Ash and Polyester Businesses.
In addition, dumping of polyester and soda ash at uneconomical prices remains a
major concern. Your Company is aggressively pursuing the matter with National
Tariff Commission.
· Federation Pakistan Chamber of Commerce & Industry.(FPCCI)
Subject Company is well known and directors are resourceful and experienced businessmen. Trade relations are reported as fair. Payments to creditors etc are reported as normal. 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.55.92 |
|
UK Pound |
1 |
Rs.86.03 |
|
Euro |
1 |
Rs.69.13 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
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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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.