MIRA
INFORM REPORT
|
Report Date : |
21.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
NOON SUGAR MILLS LTD. |
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Registered Office : |
66-Garden Town, Lahore |
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Country : |
Pakistan |
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Financials (as on) : |
30.09.2012 |
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Date of Incorporation : |
01.04.1964 |
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Com. Reg. No.: |
0001858 |
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Legal Form : |
Limited liability company |
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Line of Business : |
Manufacturing of White Refined Sugar and Ethyl Alcohol (Ethanol) |
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No. of Employees : |
750 |
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 |
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Status : |
Satisfactory |
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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 |
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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 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 |
Company name
NOON SUGAR MILLS
LTD.
GENERAL INFORMATION
|
Business Name |
Noon Sugar Mills Limited (NSML) |
|
Address |
Head Office: 2nd Floor Mustafa Center, 45-F, Main Market, Gulberg
II, Lahore 54660, Pakistan Registered Office: 66-Garden Town, Lahore Branch Office: 7th Floor, Lakson Square, Building
No. 3, Sarwar Shaheed Road, Karachi-74200, Pakistan Mills & Distillery: Bhalwal, District Sargodha, Pakistan |
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Telephone |
(+92) (42) 35788461-7, 35788472-3 |
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Fax |
(+92) (42) 35788468 |
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Email |
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Website |
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Business activities |
Manufacturing of White Refined Sugar and Ethyl Alcohol (Ethanol) |
Registry Details
|
CRO Registration Number |
0001858 |
|
Date of Registration |
April 01, 1964 |
Other registry
& certification details:
|
Current Legal Form |
Limited liability company |
|
National Tax Registration Number |
0225988-5 |
|
Date of Registration |
13-Nov-1995 |
|
GST Registration Number |
0409170300219 |
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Date of Registration |
01-Dec-1990 |
|
Chamber of Commerce & Industry |
Lahore chamber of commerce & Industry |
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ISO Certification |
ISO 9001:2000 |
|
Date of Registration & Expiry |
1998 Expiry date not provided. |
|
Other certifications |
None |
|
Date of Registration & Expiry |
N/A |
Capital
|
Type |
No. of Shares |
Par Value |
Total Value |
|
Authorized |
20,000,000 |
Rs.10/- |
Rs. 200,000,000/- |
|
Issued, Subscribed & Paid-Up |
16,517,453 |
Rs.10/- |
Rs. 165,174,530/- |
CRO record inspection on 24/Oct/2013
PRINCIPALS (SPONSORS)
|
Name |
Number of Shares |
Nationality |
Appointment Date
(Last) |
|
Mr. Asif H. Bokhari |
Not provided |
Pakistani |
30/05/2011 |
|
Mr. Amjad Mahmood Agha |
Not provided |
Pakistani |
31/03/2011 |
|
Mr. K. Iqbal Talib |
Not provided |
Pakistani |
31/03/2011 |
|
Mr. Zaheer Ahmad Khan |
Not provided |
Pakistani |
31/03/2011 |
|
Mr. Adnan Hayat Noon |
4,355,181 |
Pakistani |
31/03/2011 |
|
Mr. Salman Hayat Noon |
Not provided |
Pakistani |
31/03/2011 |
|
Safdar M. Hayat Qureshi |
Not provided |
Pakistani |
31/03/2011 |
KEY MANAGEMENT
|
Name |
Position in organization |
Qualification |
Years in
employment |
|
Mr. Adnan Hayat Noon |
CEO/CHAIRMAN |
Not provided |
Not provided |
|
Syed Anwar Ali |
Company Secretary |
Not provided |
Not provided |
|
Mr. Kamran Zahoor |
Chief Accountant |
Not provided |
Not provided |
|
Statutory offices |
Name of service
provider |
|
Statutory Auditors |
M/s. Hameed Chaudhary & Company |
|
Legal Advisory Services |
M/s. Hassan & Hassan |
BANKERS
|
Bank name |
Approved
financing limits in PKR |
|
Standard Chartered Bank Pakistan |
193,000,000 |
|
Silk Bank |
5,000,0000 |
|
United Bank |
467,000,000 |
|
NIB Bank (20Million through IFI&C Bank) |
193,670,000 |
|
Allied Bank |
334,000,000 |
|
MCB Bank |
267,000,000 |
|
KASB Bank |
134,000,000 |
|
Habib Bank |
67,000,000 |
DETAILS OF BUSINESS ACTIVITIES
NSML is engaged in manufacturing of sugar and allied products.
Purchases (Incl. Imports)
|
Imports from |
United States of America and China (10% only) |
|
Importing terms |
LC basis |
|
Local (%) |
90% |
|
Local buying terms |
60 days cash & credit. |
Sales (Incl.
Exports)
|
Exports to |
NIL |
|
Exporting terms |
NIL |
|
Local (%) |
100% |
|
Local selling terms |
30 days cash & credit. |
Additional
information (Extracts from official
website of the organization):
Company Profile:
The Company was incorporated in 1964 as a public company listed on all the
Stock Exchanges of Pakistan for setting up of a plant for manufacture of white
sugar, in the province of Punjab. The plant went into production in 1966 with a
daily crushing capacity of 1,500 MT of sugar cane, which has since been raised
to 4,000 MT per day in 2002. Further extension to 9,000 TCD has become
operative in 2006-2007 crushing season.
An Alcohol Distillery of French origin was added during 1986 with a
production capacity of 50,000 litres/day in 2002. Another facility with an
option to provide either 30,000 LPD Industrial of fuel Grade Ethanol was added
in 2002. A new Fuel Ethanol plant of 100,000 LPD, based on Molecular Sieve
technology has been added in 2005.
The Distillery is ISO 9001 certified since 1998, which upgraded to
ISO-9001-2000.
An Effluent Treatment Plant employing the Canadian technology of ABV
Bio-Gas reactors has been installed since 1997, to use its bio-degradable waste
water as a renewable source of energy to replace 70% of fuel oil / natural gas,
for generation of process steam. This has also enabled the Company to fulfill
its obligation towards reducing the environmental pollution.
The Company has a gratifying record of average payout in the last 10
years is 27.5%.
NUMBER OF EMPLOYEES
|
Nature of
employment |
Current Year |
Previous Year |
|
All staff |
750 |
750 |
|
Total |
750 |
750 |
BUSINESS FACILITIES
|
Head office Address Owned / Rented Area (approx) |
2nd Floor Mustafa Center, 45-F, Main Market, Gulberg II, Lahore 54660,
Pakistan. Not disclosed Not disclosed |
|
Registered office Address Owned / Rented Area (approx) |
66-Garden Block, New Garden Town, Lahore Not disclosed Not disclosed |
|
Factory Address Owned / Rented Area (approx) |
Bhalwal, District Sargodha, Pakistan Not disclosed Not disclosed |
|
Branch Office: Owned / Rented Area (approx) |
7th Floor Lakson Square, Building No 3, Sarwar Shaheed Road, Karachi
74200, Pakistan Not disclosed Not disclosed |
MARKET REPUTATION
During the market check of “M/s. Noon Sugar Mills Limited” we
contacted various suppliers / dealer/ competitor of the subject company. In
their opinion the subject company is a good player of the industry and enjoys
good reputation in the market. Market sources further mentioned that “M/s.
Noon Sugar Mills Limited” belongs to “NOON GROUP” which is well known as a profitable business group in
the industry.
DETAILS OF RELATED BUSINESSES
|
Business Name |
City |
Line of Business |
Percentile of
Shareholding |
|
M/s. Noon Pakistan Limited |
Lahore |
Dairy |
Not provided |
|
M/s. Pioneer cement Limited |
Lahore |
Manufacturing cement |
Not provided |
|
M/s. Noon International Private Limited |
Lahore |
Trading |
Not provided |
|
M/s. Textile Services |
Lahore |
Textiles |
Not provided |
|
M/s. International Sales and Services |
Lahore |
General Engineering |
Not provided |
BUSINESS PERFORMANCE
INTERVIEW & REPORTER COMMENTS
|
Contact person |
Mr. Khawaja Kamran Zahoor |
|
Position |
CFO |
|
Comments |
The contact person confirmed operations and declined to provide any
further information. |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.56 |
|
|
1 |
Rs.100.77 |
|
Euro |
1 |
Rs.84.71 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
RATING EXPLANATIONS
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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 |
|
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NB |
New Business |
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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.