MIRA INFORM REPORT

Report Date :

22.11.2013

IDENTIFICATION DETAILS

Name :	CLARIANT PAKISTAN LIMITED (CPL)
Registered Office :	1-A/1, Sector-20, Korangi Industrial Area, Korangi Karachi-74900
Country :	Pakistan
Financials (as on) :	30.06.2012
Date of Incorporation :	03.10.1996
Com. Reg. No.:	0037175
Legal Form :	Public Limited
Line of Business :	Manufacturer of Chemicals. CPL Manufacture, Importer and wholesaler of Chemicals.
No. of Employees :	200

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 :	No complaints
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 31^st, 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

Company name

CLARIANT PAKISTAN LIMITED (CPL)

GENERAL INFORMATION

Business Name	Clariant Pakistan Limited (CPL)
Address	1-A/1, Sector-20, Korangi Industrial Area, Korangi Karachi-74900.   Factory: Petaro Road, Jamshoro. Katarband Road, Thokar Niaz Baig, Lahore.
Telephone	(+92) (21) 111-275-000, 35046710, 35046711
Fax	(+92) (21) 35046712, 35032337
Email	info@clariant.com
Website	www.clariant.com.pk
Business activities	Manufacturer of Chemicals

Registry Details

CRO Registration Number	0037175
Date of Registration	October 03, 1996

Other registry & certification details:

Current Legal Form	Public Limited
National Tax Registration Number	0816040-6
Date of Registration	14-Jan-1997
GST Registration Number	1200290078346
Date of Registration & Expiry	17-Dec-1996
Chamber of Commerce & Industry	Karachi Chamber of Commerce & Industries
Certificates	ISO 9001:2008 ISO 14001: 2004 OHSAS 18001:2007
Listed	Karachi Stock Exchanges
Membership	Overseas Investor Chamber of Commerce Management Association of Pakistan Swiss Business Council Korangi Association of Trade and Industry

Capital

Type	No. of Shares	Par Value	Total Value
Authorized	50,000,000	10	500,000,000
Issued, Subscribed & Paid-Up	34,117,881	10	341,178,810

History

Who started	Undetermined
When started	October 03, 1996
Change in management	No change
Year of change	N/A
Change in legal status	No change
Year of change	N/A
Change in business name	No change
Year of change	N/A

PRINCIPALS (SPONSORS)

Name	Nationality	Appointment Date (Last)
Dr. S. Mubarik Ali	Pakistani	30 MAR 2012
Mr. Mujtaba Rahim	Pakistani	30 MAR 2012
Mr. M. Veqar Arif	Pakistani	30 MAR 2012
Mr. Alfred Chirstian Munch	Swiss	30 MAR 2012
Mr. Stephan Lynen	Swiss	30 MAR 2012
Mr. Khawaja Mustafa Zulqarnain Majid	Pakistani	30 MAR 2012
Mr. Arnaud Frete	Turkey	30 MAR 2012
Note: There was no trading in the shares of the company by the Directors, Chief Executive Officer, Chief Financial Officer, Company Secretary and their spouses and minor children during the year.

KEY MANAGEMENT

Name	Position in organization	Qualification	Years in employment
Mr. Mujtaba Rahim	CEO	Undetermined	Undetermined
Mr. Khalid	Finance Manager	Undetermined	Undetermined
Mr. Veqar Arif	Company Secretary	Undetermined	Undetermined

Statutory offices	Name of service provider
Statutory Auditors	M/s A. F. Ferguson & Co Chartered Accountants
Legal Advisory Services	M/s Rizvi Isa, Afridi & Angell. Law Associates

BANKERS

Citibank N.A.

Habib Bank Ltd.

HSBC Bank Middle East Ltd.

Meezan Bank Ltd.

Standard Chartered Bank (Pakistan) Ltd.

Faysal Bank (through RBS)

National Bank of Pakistan

DETAILS OF BUSINESS ACTIVITIES

The core business focus of CPL is Manufacturer of Chemicals. CPL Manufacture, Importer and wholesaler of Chemicals.

Products:

Textile, Leather, Masterbatches, Paper, Emulsions, Additives, Pigments, Detergents & Intermediates, Oil & Mining, Industrial & Consumer.

Purchases (Incl. Imports)

Imports from	Europe, Far East, Switzerland, Germany
Importing terms	L/C
Local	Pakistan – Nationwide
Local buying terms	Cash and Credit of 30 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

NUMBER OF EMPLOYEES

Nature of employment	Current Year	Previous Year
Permanent	200	150
Total	200	150

BUSINESS FACILITIES

Head office/Factory Owned / Rented Area (approx)	1-A/1, Sector-20, Korangi Industrial Area, Korangi Karachi-74900. Undetermined Undetermined
Factories Owned / Rented Area (approx)	1-Petaro Road, Jamshoro. 2-Katarband Road, Thokar Niaz Baig, Lahore. Undetermined Undetermined
Sales Offices Owned / Rented Area (approx)	Cannal Road, Abdullahpur, Faisalabad. C/o All Pakistan Bed Sheet Ass. 20-T, Block Masoom Shah Road, Multan. Tesil Road, Kot Ghulam Mohammad Khan, Kasur.  Rasi Building, Pakki Kotly, Daska Road, Sialkot. Undetermined Undetermined

MARKET REPUTATION

Market sources recognize CPL as a renowned and reputable name in Chemical Industry. No disputes or untoward events including complaints about quality of products were reported/ identified during inquiry.

DETAILS OF RELATED BUSINESSES

Business Name	Location	Line of Business	Percentile of Shareholding
Clariant International Limited	Switzerland	Same	75%
Clariant (China) Ltd	China	Undetermined	Undetermined
Clariant (Australia) Pty, Ltd	Australia	Undetermined	Undetermined
Sub-Chemie Catalyst	Japan	Undetermined	Undetermined
Clariant (Gulf) FZE	UAE	Undetermined	Undetermined
Clariant Corporation	USA	Undetermined	Undetermined
Clariant Masterbatches Huningue P.T. Clariant	Indonesia	Undetermined	Undetermined
Clariant (Thailand) Ltd	Thailand	Undetermined	Undetermined
Clariant Chemicals India Ltd	India	Undetermined	Undetermined
Clariant Masterbatches	Thailand	Undetermined	Undetermined
Clariant S.A		Undetermined	Undetermined
Clariant International AG		Undetermined	Undetermined
Clariant Masterbatches (UK) Ltd	UK	Undetermined	Undetermined
Clariant Masterbatches	Ireland	Undetermined	Undetermined

BUSINESS PERFORMANCE

Particulars	30-Jun-12	30-Jun-11	% Change
Current assets	5,831,424	4,219,914	38.19
Current liabilities	(3,411,725)	(2,344,706)	45.51
Working capital	2,419,699	1,875,208	29.04
Non current assets	1,210,643	1,192,979	1.48
Net worth	3,630,342	3,068,187	18.32
Turnover	7,126,413	5,787,363	23.14
Gross Profit	2,018,529	1,398,665	44.32
EBIT	1,296,227	818,602	58.35
Profit / (Loss) before tax	1,113,230	662,065	68.15
Provision for taxation	(218,862)	(182,566)	19.88
Profit / (Loss) after tax	894,368	479,499	86.52
Creditors	1,629,722	1,374,184	18.60
Debtors	2,030,479	1,939,752	4.68
Cash & bank balances	507,012	486,828	4.15
Growth trend
Sales growth (%)	23.14%
Gross profit growth (%)	44.32%
Solvency
Current ratio	1.71	1.80
Quick ratio	(0.45)	(0.53)
Total liabilities to net worth ratio (%)	32.64	30.22
Profitability
Return on sales (%)	12.55	8.29
Return on net worth (%)	8.56	6.18

INTERVIEW & REPORTER COMMENTS

Contact person	Mr. Veqar Arif
Position	Company Secretary
Comments	Contact person confirmed business operations and shared business information, including financials.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.89
UK Pound	1	Rs.101.14
Euro	1	Rs.84.42

INFORMATION DETAILS

Report Prepared by :

NIS

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.