|
Report Date : |
08.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
ENGRO FERTILIZERS LTD. (EFL) |
|
|
|
|
Registered Office : |
7th & 8th Floors, The |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
30.06.2012 |
|
|
|
|
Date of Incorporation : |
29.06.2009 |
|
|
|
|
Com. Reg. No.: |
0069848 |
|
|
|
|
Legal Form : |
Public Limited |
|
|
|
|
Line of Business : |
Manufacturer, Importer and Marketing of Urea & Fertilizer
(Nitrogenous (urea), phosphatic & blended fertilizers, and
micronutrients). |
|
|
|
|
No. of Employees : |
1222 |
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 : |
Slow but Correct |
|
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 |
ENGRO FERTILIZERS LTD. (EFL) |
|
Address |
7th & 8th Floors, The Harbor Front Building, HC # 3, Marine Drive,
Block 4, Clifton – Karachi, 74000. |
|
Telephone |
(+92) (21) 35297501 (09 Lines), 111-211-211 |
|
Fax |
(+92) (21) 35610688 |
|
Email |
|
|
Website |
|
|
Business activities |
Manufacturers of Urea & Fertilizer |
|
CRO Registration Number |
0069848 |
|
Date of Registration |
June 29, 2009 |
Other registry
& certification details:
|
Current Legal Form |
Public Limited |
|
National Tax Registration Number |
3378860-0 |
|
Date of Registration |
15-Oct-2009 |
|
GST Registration Number |
1704310200164 |
|
Date of Registration |
15-Dec-2009 |
|
Chamber of Commerce & Industry |
Karachi Chamber of Commerce & Industry |
|
ISO Certification |
ISO 9001:2000, ISO 14001:2004, OHSAS and 18001:1999 and SA 8000:2001 |
|
Type |
No. of Shares |
Par Value |
Total Value |
|
Authorized |
1,400,000,000 |
10 |
14,000,000,000 |
|
Issued, Subscribed & Paid-Up |
1,222,800,000 |
10 |
12,228,000,000 |
|
|
|
Year of change |
|
Who started |
Esso/Mobil joint venture |
|
|
When started |
Before 1957 |
|
|
Change in management |
Yes |
1991 |
|
Change in legal status |
Joint Venture to Single International company to Limited Company |
1957 1991 |
|
Change in business name |
Esso to Exxon Chemical Pakistan Limited to Engro Chemical Pakistan Limited to Engro Corporation to Engro Fertilizer (demerged) |
1978 1997 2009 2009 w.e.f. 2010 |
|
Name |
Number of Shares
|
Nationality |
Appointment Date
(Last) |
||
|
Mr. Abdul Samad Dawood |
1 |
Pakistani |
28 MAR 2013 |
||
|
Mr. Shahid Hamid Pracha |
1 |
Pakistani |
28 MAR 2013 |
||
|
Ms. Naz Khan |
1 |
Pakistani |
28 MAR 2013 |
||
|
Mr. Ruhail Mohammad |
1 |
Pakistani |
28 MAR 2013 |
||
|
Mr. Shabbir Hashmi |
1 |
Pakistani |
28 MAR 2013 |
||
|
Mr. Javed Akbar |
1 |
Pakistani |
28 MAR 2013 |
||
|
Syed Khalid Siraj Subhani |
1 |
Pakistani |
28 MAR 2013 |
||
|
Mr. Muhammad Aliuddin Ansari |
1 |
Pakistani |
28 MAR 2013 |
||
|
Other share holder |
0 |
|
|||
|
M/s Engro Corporation Ltd |
1,222,799,992 |
|
|||
|
Total |
1,222,800,000 |
|
|||
|
Name |
Position in organization |
Qualification |
Years in
employment |
|
Mr. Ruhail Mohammad |
CEO |
MBA |
25 years |
|
Mr. Faiz Chapra |
Company Secretary |
Undetermined |
Undetermined |
|
Statutory offices |
Name of service
provider |
|
Statutory Auditors |
M/s A. F. Ferguson & Co. Chartered Accountants |
|
Legal Advisory Services |
Ms. Aisha Abasi Law Associates |
|
Bank name |
Approved
financing limits PKR |
|
National Bank Of Pakistan |
US$ 293,750,000 |
|
Allied Bank Ltd Askari Bank Ltd Bank Alfalah Ltd Bank Al-Habib Ltd Barclays Bank Plc Faysal Bank Ltd Habib Bank Ltd HSBC Bank Middle East Ltd MCB Bank Ltd Meezan Bank Ltd National Bank Of Pakistan Citibank N.A. Standard Chartered Bank United Bank Ltd Habib Metropolitan Bank Ltd Burj Bank Ltd (Short Term Un-Funded Facilities Bank Guarantee Lines) Askari Bank Ltd Habib Bank Ltd Standard Chartered Bank |
120,000,000 120,000,000 120,000,000 240,000,000 480,000,000 600,000,000 600,000,000 120,000,000 600,000,000 600,000,000 240,000,000 180,000,000 480,000,000 1,200,000,000 240,000,000 360,000,000 500,000,000 500,000,000 275,000,000 |
|
IGI Investment Bank Limited |
2,500,000,000 |
|
International Finance Corporation |
US$ 80,000,000 |
The core business focus of EFL is Manufacturer, Importer and Marketing
of Urea & Fertilizer (Nitrogenous (urea), phosphatic & blended
fertilizers, and micronutrients).
Products name:
Engro Urea, Engro DAP, Engro NP, Engro Zorawar, Engro Zarkhez, Engro
Envy and Zingro.
Purchases (Incl. Imports)
|
Imports from |
Japan, Germany, Italy |
|
Importing terms |
L/C |
|
Local |
Pakistan – Nationwide |
|
Local buying terms |
Cash and Credit of 30-60 days |
Sales (Incl. Exports)
|
Exports to |
N/A |
|
Exporting terms |
N/A |
|
Local |
Pakistan – Nationwide |
|
Local selling terms |
Cash and Credit of 30-45 Days |
|
Nature of
employment |
Current Year |
Previous Year |
|
Permanent |
1300 |
1222 |
|
Total |
1300 |
1222 |
|
Head office Address Owned / Rented Area (approx) |
7th & 8th Floors, The Harbor Front Building, HC # 3, Marine Drive,
Block 4, Clifton – Karachi, 74000. Undetermined Undetermined |
|
Factory -1 Owned / Rented Area (approx) |
Daharki, District Ghotki, Sindh. Undetermined Undetermined |
|
Factory -2 Owned / Rented Area (approx) |
EZ/ 1 / P – 1 – II, Eastern Zone, Port Qasim, Karachi. Undetermined Undetermined |
|
Zonal Marketing Offices |
6th Floor State Life Building Thandi Sarak, Hyderabad. Engro Fertilizers Ltd Marketing Area Office Plant Site Daharki-65020,
Distt: Ghotki, Office Pakistan. Engo Fertilizers Limited 4th Floor, Beacon Impex Plaza, Bilal Road,
New Civil Lines, Faisalabad. 53-D, New Muslim Town, Opp Punjab University Gate # 2, Lahore. 3rd Floor, Mehr Fatima Tower, Opp. Highcourt, Old Bahawalpur Road, PO.
BOX 30, Multan, Pakistan. |
Market sources confirmed business existence
and trade relationships. All the feedbacks were 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 |
|
Engro Food Ltd. |
Karachi. |
Manufacturers of Dairy Products |
Undetermined |
|
Karachi. |
Manufacturers of PVC (polyvinyl chloride) |
Undetermined |
|
|
Karachi. |
Independent power producer. |
Undetermined |
|
|
Karachi. |
Trades of Fertilizers, Agricultural
Commodities And Coal. |
Undetermined |
|
|
Karachi. |
Petrochemical Handling and LPG Storage Services
Provider. |
Undetermined |
|
|
Karachi. |
Terminal (Merchant Floating Storage
Re-Gasification Terminal) |
Undetermined |
The auditor has issued an unqualified audit report but has reported a
para of emphasis in their audit report i.e. that the Company incurred a loss
before taxation of Rs. 3,951,794 thousand during the year ended December 31,
2012 and, as of that date, the Company's current liabilities exceeds its
current assets by Rs. 11,865,763 thousand. These conditions, along with other
matters as set forth, indicates the existence of a material uncertainty which
may raise significant concerns about the Company's future operations.
|
Particulars |
30-Jun-12 |
30-Jun-11 |
% Change |
|
|
|
|
|
|
Current assets |
14,384,541 |
14,337,412 |
0.33 |
|
Current liabilities |
(26,250,304) |
(17,688,680) |
48.40 |
|
Working capital |
(11,865,763) |
(3,351,268) |
254.07 |
|
|
|
|
|
|
Non-current assets |
83,123,019 |
86,539,582 |
(3.95) |
|
Long term liabilities |
(55,459,229) |
(64,571,256) |
(14.11) |
|
Net worth |
15,798,027 |
18,617,058 |
(15.14) |
|
|
|
|
|
|
Turnover |
30,626,520 |
31,352,880 |
(2.32) |
|
Gross Profit |
9,860,747 |
16,732,858 |
(41.07) |
|
EBIT |
7,157,429 |
15,102,794 |
(52.61) |
|
Profit / (Loss) before tax |
(3,951,794) |
6,876,853 |
(157.47) |
|
Provision for taxation |
1,017,219 |
(2,288,567) |
(144.45) |
|
Profit / (Loss) after tax |
(2,934,575) |
4,588,286 |
(163.96) |
|
|
|
|
|
|
Creditors |
1,848,012 |
1,048,889 |
76.19 |
|
Debtors |
1,046,091 |
143,379 |
629.60 |
|
Cash & bank balances |
2,449,168 |
592,873 |
313.10 |
|
|
|
|
|
|
Growth trend |
|
|
|
|
Sales growth (%) |
-2.32% |
|
|
|
Gross profit growth (%) |
-41.07% |
|
|
|
|
|
|
|
|
Solvency |
|
|
|
|
Current ratio |
(0.55) |
(0.81) |
|
|
Quick ratio |
(0.27) |
(0.50) |
|
|
Total liabilities to net worth ratio (%) |
(517.21) |
(441.85) |
|
|
|
|
|
|
|
Profitability |
|
|
|
|
Return on sales (%) |
(9.58) |
14.63 |
|
|
Return on net worth (%) |
(18.58) |
24.65 |
|
|
Contact person |
Mr. Faiz Chapra |
|
Position |
Company Secretary |
|
Comments |
Mr. Faiz Chapra
confirmed business operations and shared business information, including
financials. |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.57 |
|
|
1 |
Rs.100.62 |
|
Euro |
1 |
Rs.84.62 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.