MIRA INFORM REPORT

 

 

Report Date :

29.10.2012

 

IDENTIFICATION DETAILS

 

Name :

UNICOL LIMITED

 

 

Registered Office :

Modern Motors House, Beaumont Road, Karachi

 

 

Country :

Pakistan

 

 

Financials (as on) :

30.09.2011

 

 

Year of Establishment :

2003

 

 

Com. Reg. No.:

0046420

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

manufacture and sell industrial ethanol

 

 

No. of Employees :

250 employees

 

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 – 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

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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

 

Business Name

 

UNICOL LIMITED

 

 

Full Address       

 

Registered Address

Modern Motors House, Beaumont Road, Karachi, Pakistan

                       

Tel #

92 (21) 35682565, 35682566, 35682567

Fax #

92 (21) 35215479

Email

unicol@cyber.net.pk

 

 

Short Description Of Business

 

a.

Nature of Business        

The principal activity of the Company is to manufacture and sell industrial ethanol

b.

Year Established

2003

c.

Registration #

0046420

 

 

Factory Location

 

Sub Post Office Sugar Mills, Jamrao,

Umerkot Road, Mirpurkhas,

Sindh, Pakistan

 

 

Auditors

           

Ernst & Young Ford Rhodes Sidat Hyder

(Chartered Accountants)

6th Floor, Progressive Plaza, Beaumont Road, Karachi, Pakistan

 

 

Legal Status       

           

Subject Company was established as a Public Limited Company in 2003

 

Authorized Capital

Rs. 400,000,000/-  divided into 40,000,000 shares of Rs. 10/- each

Issued & Paid up Capital

Rs. 346,500,000/- divided into 34,650,000 shares of Rs. 10/- each

 

 

Details of Management

 

Names

Designation

Mr. Aslam Faruque

 

Mr. Tariq Faruque

 

Mr. Omar Amin Bawany

 

Mr. Ahmed Ebrahim Hasham

 

Mr. Muhammad Hussain Hashim

 

Mr. Ahmed Ali Mohammad Amin

 

Mr. Asif Qadir

Chief Executive

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

 

 

Shareholders

 

Names

No. of Shares

Mr. Aslam Faruque

 

Mr. Ahmed Ebrahim Hasham

 

Mr. Tariq Faruque

 

Mr. Muhammad Hussain Hashim

 

Mr. Omar Amin Bawany

 

Mr. Ahmed Ali

 

Mehran Sugar Mills Limited, Pakistan

 

Mirpurkhas Sugar Mills Limited, Pakistan

 

Faran Sugar Mills Limited, Pakistan

01

 

01

 

01

 

01

 

01

 

01

 

11,519,998

 

 

11,549,998

 

11,549,998

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

            None                                             

           

 

B.         Associated Companies

·         O A INDUSTRIES, PAKISTAN.

PAKISTAN MOLASSES COMPANY (PVT) LTD, PAKISTAN.

 

 

Business Activities

 

Subject Company is engaged in manufacture and sell of industrial ethanol.

 

It purchases raw material, Machineries on L/C, D/A basis.

 

It’s mainly import from Korea, European Countries, Taiwan, China, Singapore, Japan & U.S.A.

 

Its’ major customers are Industrial Corporations, Private Companies etc.

 

Subject operates from caption leased factory premises which is situated at industrial area of Mirpurkhas, Sindh, Pakistan.

 

Subject employs about 250 persons in its set up.

 

 

Annual Sales Volume

 

Years

In Pak Rupees

2010

2011

1,512,709,000/-

1,981,436,000/-

                       

 

Trade Suppliers

(Foreign)

 

Subject mainly import from Companies belongs to Korea, European Countries, Taiwan, China, Singapore, Japan & U.S.A.

 

 

Bankers

 

·         Bank Al-Habib Limited, Pakistan.

Meezan Bank Limited, Pakistan.

Bank Alfalah Limited, Pakistan.

Soneri Bank Limited, Pakistan.

MCB Bank Limited, Pakistan.

Dubai Islamic Bank Pakistan Limited, Pakistan.

 

 

Operational Performance

 

During the year under review, the Company produced 24,993 metric tons of ethanol and exported 25,952 metric tons compared with 21,430 metric tons and 22,780 metric tons produced and exported respectively last year. There was an increase of Rs. 469 million in the turnover of the Company from last year as it reached Rs. 1,981.43 million during the year under review.

 

 

Future Outlook

 

The demand for ethanol is increasing at a rapid pace globally, which is having a positive impact on the sales volume of the Company. The Company is producing a fine quality product, which is mainly used in high value industries. through intense marketing efforts the company has been able to make inroads in these industries. The Company is selling ethanol in bulk, drums and iso containers.

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

            Rs. 95.50

UK Pound

1

            Rs. 152.00

Euro

1

            Rs. 122.30

 

 

Comments

 

Subject Company was established in 2003 and is engaged in manufacture and sell industrial ethanol. Overall reputation is satisfactory. Trade relations are reported as fair. 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.53.63

UK Pound

1

Rs.86.18

Euro

1

Rs.69.75

 

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.