MIRA INFORM REPORT

 

 

Report Date :

15.05.2012

 

IDENTIFICATION DETAILS

 

Name :

KARAM CERAMICS LIMITED

 

 

Registered Office :

Bc-6, Block 5, Scheme 5, Kehkashan, Clifton, Karachi

 

 

Country :

Pakistan

 

 

Financials (as on) :

30.06.2011

 

 

Year of Establishment :

1979

 

 

Com. Reg. No.:

0006864

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

Manufacturing of tiles

 

 

No. of Employees :

460

 

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 – 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

 

KARAM CERAMICS LIMITED

 

 

Full Address       

 

Registered Address

Bc-6, Block 5, Scheme 5, Kehkashan, Clifton, Karachi, Pakistan

                       

Tel #

92 (21) 35865561, 35865562, 35865563, 35865564

Fax #

92 (21) 35865571

Email

karam@cyber.net.pk

 

 

Short Description Of Business

 

a.

Nature of Business        

The principal activity of the Company is manufacturing of tiles

b.

Year Established

1979

c.

Registration #

0006864

 

 

Factories Location

 

            295 / 311, Deh Halkani, Hub Dam

Road, Karachi, Pakistan

           

 

Branches

 

            4 L, Gulberg III, Ferozpur

Road, Lahore, Pakistan

 

 

Auditors

 

Qavi & Co.

(Chartered Accountants)

 

 


Legal Status

 

Subject Company is a public limited company incorporated in Pakistan and

is listed on Karachi & Lahore Stock Exchanges.

 

 

Details of Directors

 

Names

Designation

Mr. Shaban Ali G. Kassim

 

Mr. Munawar Ali S. Kassim

 

Mr. Irshad Ali S. Kassim

 

Mrs. Mariam Shaban Ali

 

Mr. Sakin Noorallah

 

Mr. Shaheen Ali

 

Mr. Shahnawaz Madhani

Chairman

 

Chief Executive

 

Vice Chairman

 

Director

 

Director

 

Director

 

Director

 

 

Categories of Shareholders                

 

Name

Shareholding (%)

Promotors / Directors / Acquirers

 

Persons / Bodies with Controlling Interest

 

Government holding as promoter / Acquirer

 

Associated / Group / Companies

 

General Public

67.60

 

 

 

 

 

 

 

 

 

32.39

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

 

 None                                            

           

B.         Associated Companies

 

- Do -

 

 

Products

 

Manufacture & sale of Tile & Sanitary Ware by its brand name of “KARAM”

           

 

Number of Employees

 

460

 

 

Capacity and actual production        

 

                     Tiles

                                                                                    2011            2010  

                                                                                       (Sq. Meters)          

 

Capacity                                                      3,600,000    3,100,000      

 

Actual Production                                         3,399,118    3,179,109           

 

 

Annual Sales Volume (Last Two Years)

 

Years

In Pak Rupees

2010

2011

933,333,387/-

1,055,479,354/-

 

Customers

 

Mainly Traders, Retailers in all major cities of Pakistan

 

 

Bankers

 

(1)     Soneri Bank Limited, Pakistan.

(2)     Habib Bank Limited, Pakistan.

(3)     National Bank Limited, Pakistan.

(4)     MCB Bank Limited, Pakistan.

(5)     Habib Metropolitan Bank Limited, Pakistan.

 

 

Financial Overview

 

During the year ended June 30, 2011: the Company have registered growth in Net Revenue of Rs. 1,055.48 million which is 13.09% higher than the net revenue of Rs. 933.33 million for the preceding year. Increase in sales was due to high sale value and volume of ceramics tiles achieved during the year.

 

 

Future Outlook

 

It is expected that future demand of ceramic tiles would increase as a result of economic improvement forecasted globally. Post flood and recent increase in construction activities would also raise demand of ceramic tiles.

 

 

Memberships

 

·         Federation Pakistan Chamber of Commerce & Industry.

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

          Rs. 91.20

UK Pound

1

          Rs. 146.80

Euro

1

          Rs. 118.10

 

Comments

 

Subject is a well-established company having satisfactory track. Directors are reported as qualified, experienced and resourceful businessmen. 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.53.71

UK Pound

1

Rs.86.34

Euro

1

Rs.69.22

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

 

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.