|
Report Date : |
23.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
Rupali Polyester Limited (RPL) |
|
|
|
|
Registered Office : |
241-242, Upper Mall Scheme, Anand Road, Lahore-54000 |
|
|
|
|
Country : |
Pakistan |
|
|
|
|
Financials (as on) : |
30.06.2012 |
|
|
|
|
Date of Incorporation : |
24.05.1980 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Manufacturing – Polyester Filament Yarn |
|
|
|
|
No. of Employees : |
1,238 |
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 |
|
Maximum Credit Limit : |
116,500 |
|
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 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 donor
|
Source
: CIA |
|
Business Name |
Rupali Polyester Limited (RPL) |
|
Address |
241-242, Upper Mall Scheme, Anand Road, Lahore-54000, Pakistan Factory Address: 30.2 KM Lahore Sheikhupura Road, Shiekhupura-39350, Pakistan |
|
Telephone |
(+92) (42) 35792180-99, 111-787-254 |
|
Fax |
(+92) (42) 35713095-6 |
|
Mobile |
Not Provided |
|
Email |
|
|
Website |
|
|
Business activities |
Manufacturing –
Polyester Filament Yarn |
|
CRO Registration Number |
0007753 |
|
Date of Registration |
Saturday, May 24, 1980 |
Other registry details:
|
Current Legal Form |
(Listed on
Karachi, Lahore and Islamabad Stock Exchange Guarantee Limited) |
|
National Tax Registration Number |
0803310-2 |
|
Date of Registration |
28-November 1996 |
|
GST Registration Number |
03-08-5200-002-28 |
|
Date of Registration |
01-May 1992 |
|
Authorized |
350,000,000 |
|
Issued, Subscribed & Paid-Up |
340,685,140 |
|
Name |
Age |
Nationality |
Experience in related field |
|
Nooruddin Feerasta |
Not Provided |
Pakistani |
33 years |
|
Jafferali M Feerasta |
Not Provided |
Pakistani |
Not Provided |
|
Muhammad Rashid Zahid |
Not Provided |
Pakistani |
Not Provided |
|
Abdul Hayee |
Not Provided |
Pakistani |
Not Provided |
|
Amin A. Feerasta |
Not Provided |
Pakistani |
Not Provided |
|
Muhammad H Ali Sayani |
Not Provided |
Pakistani |
Not Provided |
|
Sultan Ali Rajwany |
Not Provided |
Pakistani |
Not Provided |
|
|
|
|
|
|
|
|
|
|
|
Name |
Position in organization |
Qualification |
Years in employment |
|
Nooruddin Feerasta |
CEO |
Not Provided |
33 years |
|
Jafferali M. Feerasta |
Chairman |
Not Provided |
Not Provided |
|
Ayub Saqib |
CFO |
Not Provided |
Not Provided |
|
S. Ghulam Shabbir Gilani |
Company Secretary |
Not Provided |
Not Provided |
|
Statutory offices |
Name of service
provider |
|
Statutory Auditors |
Qavi & Co. Chartered Accountants |
|
Legal Advisory Services |
Monim Sultan |
|
Bank Alfalah Limited |
|
Bank Al-Habib Limited |
|
Citibank N.A |
|
Faysal Bank Limited |
|
MCB Bank Limited |
|
NIB Bank Limited |
|
Bank of America |
|
Habib Bank Limited |
RUPALI POLYESTER LIMITED was incorporated at Karachi in May 1980 as a
Public Limited Company and is listed on all stock exchanges of Pakistan. It owns
and operates composite facilities to manufacture Polyester Fiber and Filament
Yarn. It produces quality products by using latest technology and best quality
of raw materials. The Company has the privilege of being one of the pioneers in
Pakistan for manufacture of Staple Fiber of highest quality. Since its
inception, the Company has been growing steadily through expansion and
diversified operations. The assets of the Company have increased to Rs. 4,104
million from the initial capital outlay of Rs.150 million.The Company has a
Polymerization Unit with a capacity of 105 metric tons per day, Polyester
Filament Yarn capacity of 30 metric tons per day and a Polyester Staple Fiber
capacity of 65 metric tons per day. The various products of Rupali are in fact
import substitution as these were previously imported from Japan, Indonesia,
Taiwan and Korea. Now the Company is importing the basic raw materials only and
through value addition is producing the highest quality products locally.
Company involved in imports of Raw Materials, Cotton and Machinery &
Equipments.
|
Texturised Yarn |
|||||
|
Denier |
Filament |
Luster |
|||
|
45 |
24 |
BTL |
|||
|
45 |
24 |
BTL |
|||
|
75 |
24 |
OSD |
|||
|
75 |
24 |
OSD |
|||
|
150 |
48 |
BTL |
|||
|
160 |
96 |
OSD |
|||
|
Dope Dyed |
|||||
|
Denier |
Filament |
Luster |
|||
|
75 |
24 |
OSD |
|||
|
75 |
24 |
OSD |
|||
|
150 |
48 |
OSD |
|||
|
150 |
48 |
OSD |
|||
|
Twisted Yarn |
|||||
|
Denier |
Filament |
Luster |
TPM |
||
|
75 |
48 |
OSD |
800 TPM |
||
|
75 |
48 |
OSD |
1500 TPM |
||
|
75 |
72 |
OSD |
1000 TPM |
||
|
75 |
72 |
OSD |
1300 TPM |
||
|
75 |
72 |
OSD |
1500 TPM |
||
|
150 |
48 |
OSD |
1000 TPM |
||
|
150 |
48 |
OSD |
1500 TPM |
||
|
Imports from |
Japan, Taiwan, South Korea, Europe, Far East and India |
|
Importing terms |
L/C |
|
Local % |
30% |
|
Local buying terms |
Cash and Credit of 30 days |
|
Exports to |
Nil |
|
Exporting terms |
N/A |
|
Local % |
100% sales in Pakistan – Nationwide |
|
Local selling terms |
Cash and Credit of 30 Days |
|
Manufacturers, Related Companies, Trading Firms and Buying Agent |
The futuristic view for our country mires in unfortunate energy,
political uncertainty and law and order crises. However, despite these
challenges, your Company is very likely to continue with its growth momentum.
With the Company focused on enhancing its sales revenues, on the basis of its
product qualities and regular supply commitments, it is hoped that the Company
will meet its financial goals in coming year. In the long run, however, things
remain uncertain; the gross margins are impacted with ever increasing raw
material prices which are going to test the Company’s operational efficiencies.
On the other hand, the corporate policies focusing on innovation with addition
of latest machinery backed by cost-cuttings are likely to help the Company gain
new
Vigor. Amid resurgence in oil prices, the raw material prices are not
predictable precisely.
1-Group
The subject company belongs to the Rupali Group an unregistered entity.
2-Membership:
Lahore Chamber of Commerce & Industry
3-History:
The Rupali Group in Pakistan dates back to 1948 when its first
manufacturing concern was established in Narayangang, East Pakistan (now
Bangladesh) which subsequently expanded in 1956 to manufacture the well known
brand of "Consul" socks.
In 1969, the Group acquired Crescent Wooden Spool Manufacturing Company
Limited in technical collaboration with a renowned Japanese company.
The Filament yarn and staple fiber industry was forecasted for rapid
growth in the 1980's. With increasing demand for its products, Rupali Group entered
into the local manufacturing of polyester filament yarn at Rupali Polyester
Limited (RPL) in 1980.
|
Annual Capacity (In Three Shifts) |
In Metric Tons |
|
|
Years |
2012 |
2011 |
|
Yarn |
10,100 |
10,100 |
|
Fiber |
12,000 |
12,000 |
|
Actual Production |
||
|
Yarn |
10,472 |
10,991 |
|
Fiber |
24,485 |
24,259 |
|
Nature of employment |
Current Year (2012) |
Previous Year (2011) |
|
Permanent |
Undetermined |
Undetermined |
|
Contractual |
Undetermined |
Undetermined |
|
Daily wages |
Undetermined |
Undetermined |
|
Total |
1,238 |
1,262 |
|
Head office
Address: 241-242, Upper Mall Scheme, Anand Road, Lahore-54000, Pakistan Owned / Rented: Owned Area (approx): Not Provided |
|
Factory Address: 30.2 KM Lahore
Sheikhupura Road, Sheikhupura Owned / Rented: Owned Total Area (approx): 749,700 |
|
Warehouse Address: 30.2 KM Lahore Sheikhupura Road, Sheikhupura Owned / Rented: Owned Area (approx): Not Provided |
The subject company enjoys good reputation in the market built over the
years. The suppliers and customers of the said company are fully satisfied and
have extended their relationship in the future.
|
Business Name |
City |
Line of Business |
Percentile
of Shareholding |
|
Rupafil Limited |
Lahore |
Manufacturing of Polyester Filament Yarn & Polyester Chips |
Undetermined |
|
Rupali Nylon Private Limited |
Lahore |
Manufacturing of Yarn (Carded/ Combed), TC, CVC, O/E, Slub, Stretched,
Dyed and Grey Fabric |
Undetermined |
|
Soneri Bank Limited |
Lahore |
Consumer, Retail and Islamic Banking Services |
Undetermined |
|
Spintex Private Limited |
Lahore |
Manufacturing of Yarn (Carded/ Combed, Plain, Slub, Synthetic, Towel
and Home Textile etc |
Undetermined |
(Rupee
in Thousands)
|
Particulars |
2012 |
2011 |
|
Non-Current Assets |
|
|
|
Land |
27,784 |
27,784 |
|
Building |
270,406 |
284,010 |
|
Plant & Machinery |
963,588 |
825,678 |
|
Vehicles |
4,883 |
6,467 |
|
Furniture & Fixtures |
14,304 |
15,747 |
|
Other Non-Current Assets |
261,929 |
64,482 |
|
Current Assets |
|
|
|
Cash |
74,688 |
10,266 |
|
Trade Debts |
36,621 |
65,930 |
|
Stock Stores & Spares |
2102,012 |
2,322,303 |
|
Prepaid & Other Receivables |
344,889 |
349,965 |
|
Total
Assets |
4,101,104 |
3,972,632 |
|
Current Liabilities |
|
|
|
Short Term Debts |
639,173 |
10,817 |
|
Accounts Payable |
747,799 |
1,135,072 |
|
Other Payables |
13,107 |
688 |
|
Non-Current Liabilities |
|
|
|
Staff Retirement Benefits |
90,933 |
79,661 |
|
Deferred Taxation |
279,728 |
249,592 |
|
Capital / Owner’s Equity |
|
|
|
Capital & Retained Earnings |
2,330,364 |
2,496,802 |
|
Total
Liabilities & Capital |
4,101,104 |
3,972,632 |
Source
(Audited Financial Statements)
(Rupee
in Thousands)
|
Particulars |
2012 |
2011 |
|
Revenue |
6,390,922 |
6,455,848 |
|
Cost of Revenue |
(6,175,904) |
(5,804,892) |
|
Gross
Profit |
215,018 |
650,956 |
|
Salaries Expense |
(68,738) |
(60,863) |
|
Utilities Expense |
(4,703) |
(4,059) |
|
Other Admin and General Expenses |
(46,976) |
(69,846) |
|
Selling & Marketing Expenses |
(14,781) |
(15,397) |
|
Others Expenses |
(7,636) |
(35,435) |
|
Other Income |
53,082 |
50,439 |
|
Operating Profits (EBIT) |
125,266 |
515,795 |
|
Financial Expenses |
(43,516) |
(11,914) |
|
Taxation Expenses |
(60,811) |
(171,619) |
Source
(Audited Financial Statements)
|
Contact person |
Mr. Ayub Saqib |
|
Position |
CFO |
|
Comments |
Mr. Ayub Saqib confirmed business operations and shared business
information, including financials. |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.24 |
|
|
1 |
Rs.99.89 |
|
Euro |
1 |
Rs.84.22 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.