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Report Date : |
03.09.2013 |
IDENTIFICATION DETAILS
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Name : |
THAL LIMITED |
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Registered Office : |
4th Floor, House of Habib, 3-Jinnah Cooperative Housing
Society, Sharea Faisal, Karachi |
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Country : |
Pakistan |
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Date of Incorporation : |
1966 |
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Com. Reg. No.: |
0002197 |
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Legal Form : |
Public Limited Company |
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|
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Line of Business : |
Subject is engaged in the manufacture of jute goods, engineering
goods, papersack and laminate sheets. |
|
|
|
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No. of Employees : |
1,000 - 1,100 |
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 |
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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 |
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 |
THAL LIMITED
|
Registered Address |
|
4th Floor, House of Habib, 3-Jinnah Cooperative Housing
Society, Sharea Faisal, Karachi, Pakistan |
|
Tel # |
92 (21) 34312030, 34312185 |
|
Fax # |
92 (21) 34312318, 34390868 |
|
Website |
|
a. |
Nature of Business |
Company is engaged in the manufacture of jute goods, engineering
goods, papersack and laminate sheets. |
|
b. |
Year Established |
1966 |
|
c. |
Registration # |
0002197 |
The jute operations is located at Muzaffargarh, engineering operations
at Karachi, Papersack operations at Hub and Gadoon and Laminate operations
located at Hub.
Ernst & Young Ford Rhodes Sidat Hyder & Co.
(Chartered Accountants)
Subject Company was incorporated as a Public Limited Company in 1966
|
Names |
Designation |
|
Mr. Rafiq M. Habib Mr. Sohail P. Ahmed Mr. Asif Rizvi Mr. Ali S. Habib Mr. Mohamedali R. Habib Mr. Mazhar Valjee Mr. Shahid Mahmood Khan |
Chairman Vice Chairman Chief Executive Director Director Director Director |
|
Categories |
Shareholding (%) |
|
Individuals Investment Companies Joint Stock Companies Directors, Chief Executive Officers, Their Spouses & Minor
Children Executives Associated Companies Public Sector Companies & Corp Banks & DFI’s Mutual Funds Foreign Investors Co-operative Societies Charitable Institutions Others |
29.81 0.10 2.97 8.04 0.02 2.93 --- 8.31 9.00 36.81 0.01 1.11 0.88 |
A. Subsidiary
None
B. Associated Companies
(1) Indus Motor Company
Limited, Pakistan.
(2) Agriauto Industries Limited, Pakistan.
(3) Dynea Pakistan Limited, Pakistan.
(4) Baluchistan Laminates Division, Pakistan.
(5) Noble (Pvt) Limited, Pakistan.
(6) Shabbir Tiles & Ceramics Limited,
Pakistan.
(7) Auvitronics Limited, Pakistan.
(8) Pakistan Papersack Corporation Limited,
Pakistan.
(9) Habib Insurance Company Limited, Pakistan.
(10) Noble International Holdings Limited,
Pakistan.
(11) Horn Plastic Inc, Canada.
(12) Thal Limited, Pakistan.
Company is engaged in the manufacture of jute goods, engineering goods, papersack
and laminate sheets.
1,000 - 1,100
2012
2011
Annual Capacity
Jute (Metric Tons) 33,800 33,800
Auto Air Conditioners (Units) 90,000 90,000
Paper bages (Nos. 000s)
140,000 140,000
Actual Production
Jute (Metric Tons) 28,400 24,075
Auto Air Conditioners (Units) 67,012 60,550
Wire harness (Units) 72,340 65,280
Paper bages (Nos. 000s) 89,871 84,818
Note:
The capacity of wire harness could not be determined as it is dependent
on product mix. The production capacity of Laminate Operations cannot be
determined as this depends on the relative proportion of various types of
products.
|
Years |
In Pak Rupees |
|
2011 2012 |
11,484,157,000/- 13,678,881,000/- |
Mainly Automobile Companies, Engineering
Companies, Private Organizations etc
Albaraka
Islamic Bank, Pakistan.
Bank
Al-Habib Limited, Pakistan.
Barclays
Bank PLC, Pakistan.
Habib
Bank Limited, Pakistan.
HSBC
Bank Middle East Limited, Pakistan.
Habib
Metropolitan Bank Limited, Pakistan.
National
Bank of Pakistan.
Standard
Chartered Bank, Pakistan.
Faysal
Bank Limited, Pakistan.
United
Bank Limited, Pakistan.
The devaluation of Pak Rupees against the Japanese Yen and the US dollar
has spiked up the input costs and is of the utmost concern for the sector,
because of its dependency on the import of critical parts from Japan. Thailand
& Far East.
During the year
we added aluminum radiator to our portfolio of products and thus changed the
name of the Aircon to Thermal. We are the first and the only Company in
Pakistan to make Aluminum Radiators. During the year Denso evaluated our
quality twice, once at the start up and then six months later, on the basis of
which they have confirmed their approval for our going into Phase II, work on
which has begun. In the aftermarket our sales grew as well under the CoolSonic
brand. We successfully developed and sold Dual Aircon for fire fighting
vehicles, and also added Ghandhara Industries as a customer for truck air
conditioners. Our sale of Heat Exchangers also grew significantly but the
numbers pale in comparison to our OEM sales. We have reorganized the Aftermarket’s
operations and expect an evident growth in the ensuing years, on the back of
our newly introduced “Coolsonic” brand.
It would have continued its upward journey going forward but for the
recent floods which will have adverse affect on vehicle sales. The Wiring
Harness factory set up at Sundar, Lahore is currently vacant. All the machinery
which was of recent vintage has been brought to Karachi and has helped to
improve the productivity at the korangi plant. The operations at Sundar will
start up once vehicle manufacturing in that area increases. It is more
economical, at present volumes, to produce harnesses at Karachi plant.
The Rupee continues to devalue, the interest rates are not coming down,
fuel and power costs are going up, the energy crises continues unabated and per
capita income is not improving. Obviously the fundamentals of the economy have
not improved. There are no beacons which show us the true path and hence it is
difficult to predict how the coming year will be. The flood has added to the
woes of the Country. Substantial wealth has flown down the rivers into the sea.
Survival of many must get the priority. This will naturally affect sale of
cars, our primary customers.
Federation Pakistan Chamber of Commerce & Industry.(FPCCI)
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 104.00 |
|
UK Pound |
1 |
Rs. 161.00 |
|
Euro |
1 |
Rs. 138.25 |
Habib Group of Companies enjoys good
credibility in the Pakistan Business Circle. All the directors of the Company
are reported as qualified, experienced and resourceful businessmen. Payments
are usually correct and as per commitments. 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.65.86 |
|
|
1 |
Rs.102.52 |
|
Euro |
1 |
Rs.87.06 |
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.