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Report Date : |
15.02.2013 |
IDENTIFICATION DETAILS
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Name : |
BERGER PAINTS PAKISTAN LIMITED |
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Registered Office : |
36, Industrial Estate, Kot Lakhpat, Lahore |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2012 |
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Year of Incorporation : |
1950 |
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Com. Reg. No.: |
0000358 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturing of
paints, varnishes and other related items |
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No. of Employees : |
550 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 (31.03.2011) |
Current Rating (30.06.2012) |
|
Pakistan |
B2 |
B2 |
|
Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
BERGER PAINTS PAKISTAN LIMITED
|
Registered Address |
|
36, Industrial Estate, Kot Lakhpat, Lahore, Pakistan |
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Tel # |
92 (42) 111-237-437 |
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Fax # |
92 (42) 35151549 |
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Website |
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a. |
Nature of Business |
Manufacturing of
paints, varnishes and other related items |
|
b. |
Year Established |
1950 |
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c. |
Registration # |
0000358 |
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In Lahore, Islamabad, Rawalpindi,
Faisalabad, Peshawar, Quetta, Multan & Hyderabad |
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KPMG Taseer Hadi & Co. (Chartered Accountants) |
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The company was incorporated in Pakistan on
March 25, 1950 as a private limited company and was subsequently converted
into a public limited company. The company is listed on the Karachi and
Islamabad stock exchanges. |
|
Names |
Designation |
|
Mr. Maqbool H.H. Rahimtoola Dr. Mahmood Ahmad Mr. Hamid Masood Sohail Mr. Muhammad Naseem Mr. Ilyas Sharif Mr. Shahzad M. Husain Mr. Zafar A. Osmani |
Chairman Chief Executive Director Director Director Director Director |
|
Categories |
Percentage (%) |
|
Directors, CEO and their spouses and minor children NIT & ICP Banks, Development Financials Institutions, Non Banking Financial Institutions Insurance Companies Joint Stock Companies Cooperative Societies General Public Associated Companies Others |
4.773 3.496 2.612 1.235 3.516 0.003 32.288 52.050 0.028 |
|
The holding company of Berger Paints
Pakistan Limited is M/s Slotrapid limited which is incorporated in the B.V.I. |
A. Subsidiary
(1) Berger DPI Pakistan Limited, Pakistan.
B. Associated
Companies
(1)
Berdex Construction Chemicals Private Limited, Pakistan.
(2)
Berger Road Safety Private Limited, Pakistan.
(3) M.S.Farms Private Limited, Pakistan.
(4) M.S. Orchids
Private Limited, Pakistan.
(5) Jenson and
Nicholson of Pakistan Private Limited, Pakistan.
(6) Oxyplast Private
Limited, Pakistan.
|
Berger Robbialac
Color Bank, Timbercoat and Textured effects are some of
Berger’s highly successful products. |
550
|
Years |
In Pak Rupees |
|
2011 2012 |
3,571,510,000/- 4,052,009,000/- |
2012 2011
(Litres in thousand)
Actual
production 28,429 29,554
Note :
The capacity of
the plant is indeterminable because it is a multi product plant involving
varying processes of manufacturing. Actual production includes resin production
of 6.449 million liters (2011: 6.961 million liters) which is used in the
manufacturing of the final product.
|
Mainly Automobile Assemblers, Distribution
Companies, Government Corporations, Trading Companies etc |
|
(1) Habib Bank Limited, Pakistan. (2) Habib Metropolitan Bank Limited,
Pakistan. (3) Faysal Bank Limited, Pakistan. (4) Bank Al-Habib Limited, Pakistan. (5) United Bank Limited, Pakistan. (6) MCB Bank Limited, Pakistan. (7) JS Bank Limited, Pakistan. |
Sound
In the year under
review, among major challenges, which jolted the economy, were unprecedented increases
in commodity and oil prices, floods, which caused massive damage, of more than
50,000 Sq.KM. During the year oil prices also shot up from $70 per barrel to
$125 per barrel causing a surge in input costs. The country witnessed worsened
law and order situation in some parts of the country resulting in strikes and
business closed down which had adverse effects on the economy. We witnessed a
decline in the growth rate due to the destruction of major crops, particularly
rice and cotton. The year 2010-11, manufacturing sector growth was negligible.
BERGER
has been associated with paint manufacturing for
almost two centuries. The company started its operation in
Pakistan in 1950 and introduced premium quality paints in the country for the
first time. It has met the growing demand through regular extensions in its
products range and has continued to attract a healthy market share, maintaining
a high reputation for consistent quality. BERGER
PAINTS PAKISTAN became a public limited company in 1974.
Slotrapid Limited, a U.K. based company is the holding company of BERGER PAINTS PAKISTAN LIMITED. In 1993, BERGER entered a
technical collaboration agreement with Nippon Paint Company of Japan. Nippon is
acknowledged as one of the most sophisticated paint manufacturers in the world
and ranks among the leaders of the paint industry. This collaboration has
enabled BERGER to develop automotive and industrial paints conforming to
exacting international standards. Berger Paints has also entered collaboration
for decorative paints with Berger International Limited, one of the top 20
paint companies in the world. The Berger Paints Pakistan Limited Head Office is
located in Karachi. The Company has regional offices in Lahore and Islamabad
and a wide network of distributors/dealers and sales personnel in all major
urban centers of the country.
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 99.40 |
|
UK Pound |
1 |
Rs. 157.00 |
|
Euro |
1 |
Rs. 133.00 |
Subject Company
enjoys excellent credibility in the International Business Community,
Worldwide. Company is primarily engaged in manufacturing of paints, varnishes and other related items.
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.53.87 |
|
|
1 |
Rs.83.59 |
|
Euro |
1 |
Rs.72.37 |
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 |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<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.