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Report Date : |
12.12.2013 |
IDENTIFICATION DETAILS
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Name : |
SHAKARGANJ MILLS LIMITED |
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|
|
|
Registered Office : |
10th Floor, BOP Tower, 10-B,
Block E 2, Gulberg III, Lahore |
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|
|
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Country : |
Pakistan |
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|
|
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Financials (as on) : |
30.09.2012 |
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Date of Incorporation : |
1968 |
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Com. Reg. No.: |
0002673 |
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Legal Form : |
Public Limited Company |
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|
|
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Line of Business : |
Engaged
in manufacture, purchase and sale of sugar, ethanol, building material, yarn
and engaged in generation and sale of electricity. |
|
|
|
|
No. of Employees : |
755 |
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 : |
Slow |
|
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, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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 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 |
SHAKARGANJ MILLS
LIMITED
|
Registered
& Principal Office |
|
10th
Floor, BOP Tower, 10-B, Block E 2, Gulberg III, Lahore, Pakistan |
|
Tel # |
92 (21) 35783801
- 06 (6 Lines) |
|
Fax # |
92 (21) 35783811 |
|
(1) 12th Floor, Sidco Avenue
Centre, 264 R.A. Lines, Karachi, Pakistan. (2) Nishatabad, New Lahore Road,
Faisalabad, Pakistan. |
(1)
Toba Road, Jhang, Pakistan.
(2)
63 K.M., Jhang-Sarghoda Road, Bhone, Pakistan.
|
a. |
Nature of Business |
It
is principally engaged in manufacture, purchase and sale of sugar, ethanol, building
material, yarn and engaged in generation and sale of electricity. |
|
b. |
Year Established |
1968 |
|
c. |
Registration # |
0002673 |
|
A.F. Ferguson & Co. (Chartered
Accountants) |
|
Shakarganj
Mills Limited is a public limited Company incorporated in Pakistan, with its
shares quoted on the Karachi and Lahore Stock Exchanges of Pakistan |
|
Names |
Designation |
|
Mr. Mazhar Karim Mr. Ahsan M. Saleem Mr. Ali Altaf Saleem Mr. Khalid Bashir Mr. Muhammad Anwar Mr. Muhammad Arshad Mr. Rubina Rizvi |
Chairman Chief Executive Director Director Director Director Director |
|
Categories |
Percentage |
|
Directors, CEO, their spouses and minor
children Associated Companies, undertakings &
Related Parties NIT & ICP Banks, DFI’s, NBFI’s Insurance Companies Modarabas & Mutual Funds Other Companies Non-Resident General Public |
1.80 41.40 10.61 8.91 --- 0.74 8.03 --- 28.51 |
|
(1)
Shakarganj Food Products Limited, Pakistan. (2)
Shakarganj Research, Pakistan. (3)
Shakarganj Foundation, Pakistan. |
It is principally engaged in manufacture, purchase and
sale of sugar, ethanol, building material, yarn and engaged in generation and
sale of electricity.
755
2012 2011
Sugar
Rated crushing
capacity -
On the basis of
136 days (2010: 109 days) M.Tons 2,564,00 2,176,000
Actual cane
crushed 1,957,358 1,567,361
The low crushing was due to shortage of sugarcane and liquidity crunch.
Ethanol
On the basis of
366 days (2011: 295 days) Liters
93,800,000 75,400,000
Actual production Liters
93,796,721 68,860,824
The actual
production is 100% of the capacity.
Building
Materials
On the basis of
266 days (2011: 201 days)
Working
Cubic Meter
8,778 6,030
Actual production Cubic
Meter 8,789 5,920
The actual
production is more than 100% of the production capacity.
Textile
Capacity
(converted in 20s counts) Kgs. 7,387,331 7,599,022
Actual production
(converted in 20s counts) Kgs 7,038,544 4,130,728
The actual
production is 95% of the capacity which is within normal working standards.
Power
On the basis of 365 days (2011: 365
days) Kwh 39,072,000 39,312,000
Actual generation Kwh
27,778,900 21,825,500
The actual
production is 71% of the capacity. The low production was due to shortage of
raw material and non-availability of engines due to overhauling.
Various Local
(1) Allied Bank
Limited, Pakistan.
(2)
MCB Bank Limited, Pakistan.
(3) National Bank of
Pakistan.
(4) The Bank of
Punjab, Pakistan.
(5) United Bank
Limited, Pakistan.
(6) Standard Chartered
Bank, Pakistan.
(7) Silk Bank Limited,
Pakistan.
(8) Bank Alfalah Limited,
Pakistan.
(9) Faysal Bank
Limited, Pakistan.
Overall
performance of the Company during the FY2011-12 has improved compared to
previous year. The increased Bio Fuel production and margins have contributed
significantly towards the bottom line. The Company earned an operating profit
of Rs 1,033 million compared to Rs 841 million in the previous year. The profit
after tax earned during the year was Rs 498 million as compared to a loss of Rs
82 million during the previous year. The Company kept improving its key
operating indicators in all the business segments. As explained in our last
annual report, the Company has been in a tight liquidity position since last
few years. Our current ratio has been adversely affected due to reclassification
of various long term obligations as short term borrowings. This has led to the
current liabilities of the Company exceeding its current assets by Rs 5,050
million. As at 30 September 2012, the total overdue principal and mark up
amounted to Rs 1,944 million and Rs 911 million respectively. The management
has taken a number of steps to overcome these issues including restructuring of
loans and repayments, with cooperation from its existing lenders.
·
All Pakistan Sugar Mills Association.(APSMA)
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 107.90 |
|
UK Pound |
1 |
Rs. 176.00 |
|
Euro |
1 |
Rs. 147.25 |
Subject Company is well known
and the 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.61.33 |
|
|
1 |
Rs.100.79 |
|
Euro |
1 |
Rs.84.37 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.