|
Report Date : |
16.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
SHAHMURAD SUGAR MILLS LIMITED. (SSM) |
|
|
|
|
Registered Office : |
96-A, Sindhi Muslim Housing Society, Karachi-74400 |
|
|
|
|
Country : |
Pakistan |
|
|
|
|
Financials (as on) : |
30.06.2012 |
|
|
|
|
Date of Incorporation : |
09.04.1979 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturer of Sugar and Ethyl Ethanol |
|
|
|
|
No. of Employees : |
500 |
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 : |
Satisfactory |
|
|
|
|
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, 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 |
|
Business Name |
SHAHMURAD SUGAR MILLS LIMITED. (SSM) |
|
Address |
Registered
Address 96-A, Sindhi Muslim Housing Society, Karachi-74400 Factory Office Jhok Sharif, Taluka Mirpur Bathoro, Dist.Thatta (Sindh) Undetermined |
|
Telephone |
(+92) (21) 34550161 / 2 / 3 0321-3748497 |
|
Fax |
(+92) (21) 34556675 |
|
Email |
|
|
Website |
|
|
Business activities |
Manufacturer of Sugar and Ethyl Ethanol |
Registry Details
|
CRO Registration Number |
0006870 |
|
Date of Registration |
April 09, 1979 |
Other registry
& certification details:
|
Current Legal Form |
Public Limited Company |
|
National Tax Registration Number |
0712078-8 |
|
Date of Registration |
October 22, 1995 |
|
GST Registration Number |
0101230201737 |
|
Date of Registration |
October 30, 1990 |
|
Chamber of Commerce & Industry |
Karachi Chamber of Commerce & Industries |
|
ISO Certification |
Undetermined |
|
Listed |
Karachi Stock Exchange |
Capital
|
Type |
No. of Shares |
Par Value |
Total Value |
|
Authorized |
25,000,000 |
10 |
250,000,000 |
|
Issued, Subscribed & Paid-Up |
21,118,663 |
10 |
211,186,630 |
History
|
Who started |
Undetermined |
|
When started |
April 09, 1979 |
|
Change in management |
No change |
|
Year of change |
N/A |
|
Change in legal status |
No change |
|
Year of change |
N/A |
|
Change in business name |
No change |
|
Year of change |
N/A |
|
Name |
Number of Shares |
Nationality |
Appointment Date
(Last) |
|
Mr. Ghulam Mohiuddin Zakaria |
871,557 |
Pakistani |
29/03/2013 |
|
Mr. Mohammad Yusuf Ayoob |
377,818 |
Pakistani |
29/03/2013 |
|
Mr. Zia Zakaria |
228,999 |
Pakistani |
29/03/2013 |
|
Mr. Zohair Zakaria |
226,624 |
Pakistani |
29/03/2013 |
|
Mr. Muhammad Suleman Ayoob |
184,786 |
Pakistani |
29/03/2013 |
|
Mr. A. Aziz Ayoob |
170,594 |
Pakistani |
29/03/2013 |
|
Mr. Ismail H. Zakaria |
47,949 |
Pakistani |
29/03/2013 |
|
Mr. Aamir Amin |
|
Pakistani |
29/03/2013 |
|
Mr. Khurram Aftab |
|
Pakistani |
29/03/2013 |
|
Name |
Position in organization |
Qualification |
Years in
employment |
|
Mr. Mohammad Yusuf Ayoob |
CEO |
Undetermined |
Undetermined |
|
Mr. Iqbal Umer |
Chief Financial Officer |
Undetermined |
Undetermined |
|
Mr. Mohammad Yasin Mughal |
Company Secretary |
Not disclosed |
Not disclosed |
|
Statutory offices |
Name of service
provider |
|
Statutory Auditors |
M/s Hyder Bhimji &
Company Chartered Accountants |
|
Legal Advisory Services |
Mr. Abdul Sattar Pingar Law Associates |
|
Bank name |
Approved
financing limits PKR |
|
United Bank Ltd |
467,000,000 |
|
Faysal Bank Ltd |
466,668,000 |
|
Standard Chartered Bank
(Pakistan) Ltd |
400,000,000 |
|
JS Bank Ltd |
334,000,000 |
|
Bank Islami Pakistan Ltd |
333,340,000 |
|
Pak Brunei Investment Company
Ltd |
266,666,667 |
|
Pak Oman Investment Company
Ltd |
266,666,667 |
|
National Bank of Pakistan |
164,500,000 |
|
Bank Alfalah Ltd |
133,330,000 |
|
Soneri Bank Ltd |
125,000,000 |
|
MCB Bank Ltd |
71,430,000 |
|
Habib Bank Ltd |
27,000,000 |
The core business focus of SSM
is
Manufacturer, Wholesaler & Exporter of Sugar. The concern is known in the market
for manufacturing and marketing of sugar and allied products. As per JCR-VIS
Credit Rating Company Limited has assigned initial medium to long term entity
rating of 'A-' (Single A Minus) and short term rating of 'A-2' (A-Two) to the
Company. Outlook on medium to long term rating is "Stable".
Purchases (Incl.
Imports)
|
Imports from |
None |
|
Importing terms |
N/A |
|
Local |
All over Pakistan |
|
Local buying terms |
Cash and Credit of 30-60 days |
Sales (Incl.
Exports)
|
Exports to |
Dubai, Europe, Sir Lanka |
|
Exporting terms |
L/C |
|
Local (10%) |
All over Pakistan |
|
Local selling terms |
Cash and Credit of 30-45 Days |
|
Nature of
employment |
Current Year |
Previous Year |
|
All Staff |
500 |
Undetermined |
|
Total |
500 |
Undetermined |
|
Registered Address Owned / Rented Area (approx) |
96-A, Sindhi Muslim Housing Society, Karachi Owned Undetermined |
|
Factory Address Owned / Rented Area (approx) |
Jhok Sharif, Taluka Mirpur Bathoro, Dist.Thatta (Sindh) Undetermined Undetermined |
Six suppliers were contacted to get a feedback about SSM, its products and sponsors.
All the feedback was found Satisfactory and no disputes or untoward events
including complaints about quality of products were reported/ identified during
inquiry.
|
Business Name |
City |
Line of Business |
Percentile of
Shareholding |
|
Al-Noor Sugar Mills Ltd |
Karachi |
Manufacturer of Sugar |
15.62 |
|
First Al Noor Modaraba |
Karachi |
Islamic Financial Services |
0.48 |
|
Reliance Insurance Company Ltd. |
Karachi |
General Insurance |
0.11 |
|
Al-Noor Modaraba Management Pvt. Ltd |
Karachi |
Banking and Finance and Leasing Companies |
0.22 |
|
Noori Trading Corporation Pvt. Ltd |
Karachi |
Minerals & Mineral Products |
3.16 |
|
Particulars |
30-Jun-12 |
30-Jun-11 |
% Change |
|
|
PKR in '000' |
PKR in '000' |
|
|
Current assets |
2,150,986 |
2,828,149 |
(23.94) |
|
Current liabilities |
(2,336,772) |
(2,878,103) |
(18.81) |
|
Working capital |
(185,786) |
(49,954) |
271.91 |
|
|
|
|
|
|
Non-current assets |
2,158,682 |
2,052,534 |
5.17 |
|
Long term liabilities |
(888,034) |
(1,042,477) |
(14.82) |
|
Net worth |
1,084,862 |
960,103 |
12.99 |
|
|
|
|
|
|
Turnover |
5,362,004 |
4,392,083 |
22.08 |
|
Gross Profit |
695,891 |
754,349 |
(7.75) |
|
EBIT |
463,278 |
551,163 |
(15.95) |
|
Profit / (Loss) before tax |
111,079 |
88,526 |
25.48 |
|
Provision for taxation |
34,265 |
1,191 |
2,776.99 |
|
Profit / (Loss) after tax |
145,344 |
89,717 |
62.00 |
|
|
|
|
|
|
Creditors |
91,402,074 |
54,899,347 |
66.49 |
|
Debtors |
6,258,694 |
8,623,403 |
(27.42) |
|
Cash & bank balances |
95,354,260 |
101,095,062 |
(5.68) |
|
|
|
|
|
|
Growth trend |
|
|
|
|
Sales growth (%) |
22.08% |
|
|
|
Gross profit growth (%) |
-7.75% |
|
|
|
|
|
|
|
|
Solvency |
|
|
|
|
Current ratio |
(0.92) |
(0.98) |
|
|
Quick ratio |
(0.14) |
(0.12) |
|
|
Total liabilities to net worth ratio (%) |
(297.25) |
(408.35) |
|
|
|
|
|
|
|
Profitability |
|
|
|
|
Return on sales (%) |
2.71 |
2.04 |
|
|
|
|
|
|
|
Contact person |
Mr. Iqbal Umer |
|
Position |
Chief Financial Officer |
|
Contact Person Comments |
Mr. Iqbal Umer confirmed business operations and shared business
information, including financials. |
|
Analyst’s Observations/ comments |
The office was comprised of nine air-conditioned rooms, with fifteen
computers and average furniture. Twenty to twenty five employees were present in the office. SSM is considered to be one of the best setups in sugar industry. The related companies to SSM are also considered as stable companies
in the market with good market share and good reputation. |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.13 |
|
|
1 |
Rs.101.53 |
|
Euro |
1 |
Rs.85.41 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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.