MIRA INFORM REPORT

 

 

Report Date :

10.01.2013

 

IDENTIFICATION DETAILS

 

Name :

PACKAGES LIMITED

 

 

Registered Office :

4th Floor, The Forum, Suite No. 416-422, G-20, Block 9, Khayaban-e-Jami, Clifton, Karachi

 

 

Country :

Pakistan

 

 

Financials (as on) :

31.12.2011

 

 

Year of Incorporation :

1956

 

 

Com. Reg. No.:

0000792

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Engaged in the manufacture & sale of paper, paperboard, packaging materials and tissue products.

 

 

No. of Employees :

3,065

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

Payment Behaviour :

Regular

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

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

 

PACKAGES LIMITED

 

 

Full Address       

 

Registered Address

4th Floor, The Forum, Suite No. 416-422, G-20, Block 9, Khayaban-e-Jami, Clifton, Karachi, Pakistan

                                               

Tel #

92 (21) 35874047, 35874048, 35874049

Fax #

92 (21) 35860251

Website

www.packages.com.pk

 

           

Head Office

 

Address

Shahrah-e-Roomi P.O. Amer Sidhu, Lahore, Pakistan.

Tel #

92 (42) 35811541, 46, 35811191, 94

Fax #

92 (42) 35811195, 35820147

 

 

Factory Location

 

Address

Plot No. 6 & 6/1, Sector 28, Korangi Industrial Area, Karachi, Pakistan

Tel #

92 (21) 35045320, 35045310

Fax #

92 (21) 35045330

 

 

Short Description Of Business

 

a.

Nature of Business        

Engaged in the manufacture & sale of paper, paperboard, packaging materials and tissue products.

b.

Year Established

1956

c.

Registration #

0000792

 

 

Auditors

 

A.F. Ferguson & Co.

(Chartered Accountants)

 

Legal Status

 

The Company is a limited liability company incorporated in Pakistan and is listed on Karachi, Lahore & Islamabad Stock Exchanges of Pakistan

 

 

Details of Management

 

Names

Designation

Mr. Towfiq Habib Chinoy

 

Mr. Syed Hyder Ali

 

Mr. Khalid Yacob

 

Mr. Matti Ilmari Naakka

 

Mr. Muhammad Aurangzeb

 

Mr. Shahid Aziz Siddiqui

 

Mr. Shamim Ahmad Khan

 

Mr. Syed Aslam Mehdi

 

Mr. Syed Shahid Ali

 

Mr. Wazir Ali Khoja

 

Mr. Ali Aslam

Chairman

 

Chief Executive & Managing Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

 

Categories of Share Holders                

 

Categories

    Percentage (%)

Associated Companies, Undertakings and Related Parties

 

NIT & ICP

 

Directors, CEO and their Spouses

 

Executives

 

Public Sector Companies and Corporations

 

Banks, Development Finance Institutions, Non-Banking Finance Institutions, Insurance Companies, Modaraba and Mutual Funds

 

Others

 

Individuals

33.05

 

 

5.43

 

3.86

 

5.96

 

 

5.63

 

 

 

 

12.78

 

15.19

 

18.10

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.                  Subsidiary

 

(1) Coates Lorilleux Pakistan Limited, Pakistan.

(2) Packages Lanka (Private) Limited, Pakistan.

                                                         

           

B.         Associated Companies

 

(1) International General Insurance Co. of Pakistan Limited, Pakistan.

(2) Treet Corporation Limited, Pakistan.

(3) Loads limited, Pakistan.

(4) Treet Packages Limited, Pakistan.

(5) Orient Match Company Limited, Pakistan.

 

Products

 

Principally engaged in the manufacture and sale of paper, paperboard, packaging materials and tissue products.

 

 

Number of Employees

 

            3,065

 

 

Capacity & Production - Tons

 

 

Capacity                                  Actual Production

                                                                                    ------------------------                    ----------------------------           

                                                                                    2011        2010                  2011                     2010        

 

Paper and paperboard produced - tons                             316,250 288,250    145,826                   176,950

Paper and paperboard converted – tons                            159,834         146,834        110,316                   119,480

Plastics all sorts converted - tons                                    20,000    19,500             14,498                  13,084

Inks producted - tons                                                       7,100       7,100              5,930                    5,319         

Flexible packaging material

- meter ‘000’                                                                  90,000            90,000      51,572                  53,038

             

Note:

 

The variance of actual production from capacity is on account of the product mix.

 

Annual Sales Volume

 

Year

In Pak Rupees

2010

2011

21,837,433,000/-

23,101,819,000/-

 

Bankers

 

(1) Allied Bank Limited, Pakistan.

(2) Askari Bank Limited, Pakistan.

(3) Bank Al-Habib Limited, Pakistan.

(4) Bank Alfalah Limited, Pakistan.

(5) Bank Islami Pakistan Limited, Pakistan.

(6) Faysal Bank Limited, Pakistan.

(7) Habib Bank Limited, Pakistan.

(8) Habib Metropolitan Bank Limited, Pakistan.

(9) MCB Bank Limited, Pakistan.

(10) NIB Bank Limited, Pakistan.

(11) Standard Chartered Bank, Pakistan.

(12) United Bank Limited, Pakistan.

(13) JS Bank Limited, Pakistan.

(14) Samba Bank Limited, Pakistan.

(15) Silk Bank Limited, Pakistan.

(16) HSBC Bank Middle East Limited, Pakistan.

(17) National Bank of Pakistan.

(18) Citibank N.A., Pakistan.

 

 

Company Rating

           

Long-Term AA (Double A)

Very high credit quality. AA ratings denote a very low expectation of credit risk. They indicate very strong capacity for timely payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.

 

Short-Term A1+ (A One Plus) Obligations supported by the highest capacity for timely repayment.

 

Financial Position   

 

Sound

 

 

Foreign Exchange Rates

 

Currency                 

 

Unit

Pakistani Rupees

US Dollar

1

            Rs. 98.20

UK Pound

1

            Rs. 157.50

Euro

1

            Rs. 127.00

 

Comments

 

Subject Company is well known and directors are resourceful and experienced businessmen. Trade relations are reported as fair.  Payments to creditors etc are reported as normal. Company can be considered for normal business dealings at usual trade terms and conditions.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.96

UK Pound

1

Rs.88.23

Euro

1

Rs.71.92

 

 

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

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.