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Report Date : |
03.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
Packages Limited |
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|
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Registered Office : |
4th Floor, The Forum, Suite No. 416-422,
G-20, Block 9, Khayaban-e-Jami, Clifton, Karachi |
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Country : |
Pakistan |
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Financials (as on) : |
31.12.2012 |
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Year of Incorporation : |
1956 |
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Com. Reg. No.: |
0000792 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Manufacture & sale of paper, paperboard, packaging
materials and tissue products. |
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|
|
|
No. of Employees : |
3,080 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 – 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 |
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
PACKAGES LIMITED
|
Registered Address |
|
4th Floor, The Forum, Suite No. 416-422, G-20,
Block 9, Khayaban-e-Jami, |
|
Tel # |
92 (21) 35874047, 35874048, 35874049 |
|
Fax # |
92 (21) 35860251 |
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Website |
Head Office
|
Address |
Shahrah-e-Roomi P.O. Amer Sidhu, |
|
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, |
|
Tel # |
92 (21) 35045320, 35045310 |
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Fax # |
92 (21) 35045330 |
|
a. |
Nature of Business |
Engaged in the manufacture & sale of paper, paperboard, packaging materials and tissue products. |
|
b. |
Year Established |
1956 |
|
c. |
Registration # |
0000792 |
A.F. Ferguson &
Co.
(Chartered Accountants)
The Company is a limited liability company incorporated in
|
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 |
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 |
SUBSIDIARY
|
(1) Coates
Lorilleux Pakistan Limited, (2) Packages Lanka (Private) Limited, Pakistan. |
ASSOCIATED COMPANIES
|
(1) International
General Insurance Co. of Pakistan Limited, (2) Treet
Corporation Limited, (3) Loads limited, (4) Treet Packages Limited, (5) Orient Match Company Limited, |
Principally engaged in the manufacture and sale of paper, paperboard, packaging materials and tissue products
3,080
Capacity Actual
Production
------------------------ ----------------------------
2012 2011
2012 2011
Paper and paperboard produced - tons 271,400 316,250 148,055 145,826
Paper and paperboard converted – tons 158,069 159,834 106,322 110,316
Plastics all sorts converted - tons 20,000 20,000 14,494 14,498
Note:
The variance of actual production from capacity is primarily on account
of the product mix.
|
Years |
In Pak Rupees |
|
2011 2012 |
13,723,196,000/- 13,808,154,000/- |
(1) Allied Bank Limited,
(2) Askari Bank Limited,
(3) Bank Al-Habib Limited,
(4) Bank Alfalah Limited,
(5) Bank Islami Pakistan Limited,
(6) Faysal Bank Limited,
(7) Habib Bank Limited,
(8) Habib Metropolitan Bank Limited,
(9) MCB Bank Limited,
(10) NIB Bank Limited,
(11) Standard Chartered
(12) United Bank Limited,
(13) JS Bank Limited,
(14) Samba Bank Limited,
(15) Silk Bank Limited,
(16) HSBC Bank Middle East Limited,
(17) National Bank of
(18) Citibank N.A.,
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.
Despite challenging business environment prevalent
in the country, the Board of Directors of your Company have signed an agreement
on September 17, 2012 with “Stora Enso OYJ Group” (Stora Enso) of Finland
entering into 50/50 joint venture in its 100% wholly owned subsidiary “Bulleh
Shah Packaging (Private) Limited” [formerly “Bulleh Shah Paper Mill (Private)
Limited”] (‘BSPL’) to enable continuous growth and technical development in the
Paper & Paperboard segment. This Joint Venture Agreement would enable
greater focus on Paper & Paperboard and Corrugated businesses which are
integrally linked and have different capital and technology requirements as
well as market focus as compared to Packaging and Consumer Product businesses.
It will also enable access to Stora Enso’s technology as well as using its
platform for exports. The Joint Venture covers Paper & Paperboard and
Corrugated businesses operational at Kasur Mills and
Your Company is a noteworthy contributor to the
national economy. Your Company has contributed Rs. 2,133 million during the
year 2012 to the national exchequer on account of sales tax, income tax, import
duties and statutory levies.
In respect of
Continuing Operations, Consumer Products Division is expected to re-gain its
market share after recommencement of production operations. With start-up of
New Rotogravure Machine by the current year end, the Company is likely to
improve its market share in the Flexible Packaging business. Despite rising raw
material prices, electricity and gas shortages, your Company is improving
shareholder’s value through tight cost control, product and process
optimization, price rationalization and efficient working capital management.
In respect of Paper & Paperboard and Corrugated Boxes businesses, the
management believes that the New Joint Venture shall bring considerable value
to its shareholders and will meet Stora Enso’s and Packages’ joint return on investment
targets. The management remains confident that the economy would improve in the
future and the Company shall be able to maintain its market leadership. The
management continues to believe that your Company is well equipped to take
advantage of the industry growth as a premier packaging and paper & board
supplier provided the macroeconomic indicators move in the positive direction.
The Company’s strength lies in its vertically integrated production facilities
that can convert pulp into a final finished product and your Company can cater
all the packaging needs of its customers. It is expected that the trend of
shifting from unpacked to packed products would gain accelerated momentum with
changing life style, urbanization and a growing middle class.
Sound
|
Currency |
Unit |
Pakistani Rupees |
|
US Dollar |
1 |
Rs. 99.80 |
|
UK Pound |
1 |
Rs. 152.00 |
|
Euro |
1 |
Rs. 128.85 |
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.53.74 |
|
|
1 |
Rs.83.54 |
|
Euro |
1 |
Rs.70.72 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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.