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Report Date : |
23.04.2013 |
IDENTIFICATION DETAILS
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Name : |
HUSEIN SUGAR MILLS LIMITED |
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Registered Office : |
30-A E/1, Old FCC, Gulberg III, Lahore |
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Country : |
Pakistan |
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Financials (as on) : |
30.09.2012 |
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Year of Establishments: |
1966 |
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Com. Reg. No.: |
0002202 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Subject is engaged in the business of
production and sale of sugar and by products. |
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No. of Employees : |
700 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
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 |
|
Very High |
C1 |
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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 under 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 almost 12% for 2011,
before declining to 10% in 2012. 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 fiscal year 2012, 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 about 3% per year from 2008 to 2012. 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 and rapidly urbanizing population, more than half of
which is under 22. Other long term challenges include expanding investment in
education and healthcare, adapting to the effects of climate change and natural
disasters, and reducing dependence on foreign donors.
|
Source : CIA |
HUSEIN SUGAR MILLS LIMITED
|
Registered Address |
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30-A E/1, Old FCC, Gulberg III, |
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Tel # |
92 (42) 35762089, 35762090 |
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Fax # |
92 (42) 35712680 |
Lahore Road,
Jaranwala, Pakistan
|
a. |
Nature of
Business |
The Company is principally engaged in the business of production and
sale of sugar and by products. |
|
b. |
Year Established |
1966 |
|
c. |
Registration # |
0002202 |
Riaz Ahmad &
Company
(Chartered
Accountants)
Habib Sugar Mills Limited is a public limited
Company incorporated in
|
Names |
Designation |
|
Mst. Nusrat Shamim Mr. Mian Ahmad Ali Tariq Mr. Mian Shahzad Aslam Mr. Mian Aamir Naseem Mrs. Ayesha Shahzad Mr. Mian M. Shams Amin Mr. Irfan Qamar Mr. M. Mudassar Ahsan |
Chairperson &
Chief Executive Director Director Director Director Director Director Director |
|
Categories |
Percentage |
|
Associated
Companies, Undertaking & Related Parties NIT & ICP Directors, Chief Executive, Their Spouses And Minor Children Executives Public Sector Companies And Corporations Banks, Development Financial Institutions, Non-Banking Finance
Institutions Insurance Companies Modarbas And Mutual Funds General Public Others |
--- 0.01 64.58 --- 0.01 0.08 35.29 0.02 |
None
The Company is principally engaged in the business of production and
sale of sugar and by products
700
2012 2011
Installed crushing capacity for 121 (2011:
122)
working days Metric
tons 786,500 793,000
Actual crushing Metric Tons 650,995 575,886
Actual production Metric Tons 61,129 50,221
Sugar recovery Percentage 9.39 8.72
Various Local &
International
(1) MCB Bank Limited,
(2) Bank Alfalah Limited, Pakistan.
(3) Habib Bank Limited, Pakistan.
(4) National Bank of Pakistan, Pakistan.
(5) Allied Bank Limited, Pakistan.
(6) United Bank Limited, Pakistan.
(7) The Bank of Punjab, Pakistan.
(8) Meezan Bank Limited, Pakistan.
(9) Faysal Bank Limited, Pakistan.
(10) Bank Islami Pakistan Limited, Pakistan.
Recent situation of the sugar industry is not up to the mark, despite
bumper sugarcane crop, due to increased support price of sugarcane which is not
in line with declining sugar price and huge carry-over sugar stocks. Sugar is
the only commodity of direct common consumption price of which has declined in
this hyperinflationary time. This currently prevailing sugar price trend is
badly affecting sugar mills ability to meet its obligations. The Government’s
recent announcement to allow sugar export is expected to arrest current trend
of declining sugar price. However, its tangible impact depends upon sugar price
in the international market and actual export of sugar. Sugar export can earn
much needed foreign exchange, in addition to supporting domestic industry and
continued employment of thousands of skilled and unskilled labour engaged in
sugar industry. Government's immediate support is needed to ensure timely
payments to sugarcane growers.
· All Pakistan Sugar Mills Association.(APSMA)
|
Currency |
Unit |
Pakistani
Rupee |
|
US Dollar |
1 |
Rs. 99.00 |
|
UK Pound |
1 |
Rs. 148.50 |
|
Euro |
1 |
Rs. 128.00 |
Subject Company is well known and the directors are reported as 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.54.17 |
|
UK Pound |
1 |
Rs.82.45 |
|
Euro |
1 |
Rs.70.70 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.