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Report Date : |
23.08.2014 |
IDENTIFICATION DETAILS
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Name : |
GHARIBWAL CEMENT LIMITED |
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Registered Office : |
28-B/3, Gulberg III, |
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Country : |
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Financials (as on) : |
30.06.2013 |
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Date of Incorporation : |
1960 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Engaged in manufacturing, selling and
marketing of cement. |
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|
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No. of Employees : |
400 - 450 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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 – June 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Pakistan |
B2 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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 was 6.6% in 2013, 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. 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 the following two years, 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 3.5% per year
from 2008 to 2013. 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 |
GHARIBWAL CEMENT LIMITED
|
Registered
Address |
|
28-B/3, Gulberg III, Lahore, Pakistan |
|
Tel # |
92 (42) 111-210-310 |
|
Fax # |
92 (42) 35871039, 35871059 |
|
Website |
|
a. |
Nature of Business |
Principally
engaged in manufacturing, selling and marketing of cement |
|
b. |
Year Established |
1960 |
|
c. |
Registration # |
0001230 |
|
In Karachi & Rawalpindi at present |
Ismailwal
District, Chakwal,
Punjab,
Pakistan
|
Hyder Bhimji & Co. (Chartered
Accountants) |
|
Subject Company was established as a Public Limited Company in 1960
and is listed on the Karachi & Lahore Stock Exchanges of Pakistan |
|
Names |
Designation |
|
Mr. Muhammad Tousif Peracha Mr. Abdur Rafique Khan Mrs. Tabassum Tousif Peracha Mr. Mian Nazir Ahmed Peracha Mr. Muhammad Rahman Mr. Mustafa Tousif Ahmed Paracha Mr. Ali Rashid Khan |
Chairman &
CEO Director Director Director Director Director Director |
|
Categories |
Shareholding
(%) |
|
Directors, Chief Executive, their spouse and
minor child NIT & ICP Banks, Development Financial Institution,
Non-Banking Financial Institutions Insurance Companies Modarabas and Mutual Funds General Public (Local) Joint Stock Companies Foreign Companies Associations Government Authority Investment Companies Others |
63.57 0.00 11.58 0.00 0.00 13.94 1.17 2.09 0.01 0.00 1.95 0.00 |
None
Subject Company is principally
engaged in manufacturing, selling and marketing of cement.
400 - 450
|
Year |
In Pak Rupees |
|
2013 |
6,230,216,000/- |
Capacity Actual
2013 2012 2013 2012
(Rupees in 000s)
Clinker
(M.Tons) 2,010,000
2,010,000 953,966 838,242
Cement (M.Tons) 2,110,500 2,110,500
1,007,453 882,555
The under utilization of the plant is mainly
due to cut throat competition in the industry due to excessive supply and
comparatively less demand in the market
|
Mainly to India & Afghanistan |
Subject mainly import from Companies belongs to
European Countries, China, Korea, Japan, U.S.A. & U.K.
|
(1) Askari Bank Limited, Pakistan. (2) Faysal Bank Limited, Pakistan. (3) Habib Bank Limited, Pakistan. (4) KASB Bank Limited, Pakistan. (5) MCB Bank Limited, Pakistan. (6) National Bank of Pakistan. (7) NIB Bank Limited, Pakistan. (8) Silk Bank Limited, Pakistan. (9) The Bank of Khyber, Pakistan. (10) The Bank of Punjab, Pakistan. (11) United Bank
Limited, Pakistan. |
The financial year under review was concluded as the best performing
year and observed favourable key performance indicators over the preceding
year. The sales volume and net sales increased by 14% and 25% respectively over
the preceding year. Gross profit registered a growth of 72% whereas your
Company earned a profit after taxation of Rs. 1.050 billion which was increased
by 535% over the last year. Finance cost decreased by 22% mainly due to
repayment of principal amounts and reduction in interest rate. Earnings per
share stood at Rs. 2.62 as compared with loss per share Rs. 0.60 of the last
year. Major portion of wealth generated during the year was utilized by the
Company on account of cost of sales and operating expenses whereas 17% of the
wealth was available to recover the accumulated losses of the past years
despite low capacity utilization, energy crises and working capital. 18% of the
wealth was distributed to government against Excise Duty, Sales Tax and Income
Tax, 5% of the wealth was allocated to the financers. Majority of the cost of
sales comprises fuel and power expenses. The finance cost for the year
decreased by 22% due to repayment of principal amounts and reduction of
interest rate by SBP. Further the management of your Company succeeded in
rescheduling and realignment of borrowings by the banks and financial
institutions. The Company made payment of Federal Excise Duty and Sales Tax
arrears amounting to Rs. 467.044 million under Amnesty Scheme and saved default
surcharge of about Rs. 281.751 million. These measures helped the Company to
improve its profitability and current ratio.
The management of the Company anticipates a growth in cement demand in
future years due to announcement of mega projects by the government at steady
upward selling prices which will generate cash from operation sufficient enough
not to only meet working capital requirement but also to pay off the debts
within due time. The management of your Company is also working on feasibility
of various projects for energy efficiency which will decreased the energy cost
in coming years.
Federation Pakistan Chamber of Commerce & Industry.(FPCCI)
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 100.25 |
|
UK Pound |
1 |
Rs. 166.25 |
|
Euro |
1 |
Rs. 133.25 |
Subject Company was established in 1960 and
is engaged in manufacturing, selling
and marketing of cement. Overall reputation is normal. Trade relations are reported
as fair. Subject can be considered for normal business dealings at usual trade
terms and conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.43 |
|
|
1 |
Rs.100.23 |
|
Euro |
1 |
Rs.80.35 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.