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Report Date : |
05.12.2014 |
IDENTIFICATION DETAILS
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Name : |
ARCHROMA PAKISTAN LTD |
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Formerly Known As : |
CLARIANT PAKISTAN LTD |
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Registered Office : |
1-A/1, Sector 20, Korangi Industrial Area, Karachi-74900 |
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Country : |
Pakistan |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
03.10.1996 |
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Com. Reg. No.: |
0037175 |
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Legal Form : |
Public Limited Company |
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|
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Line of Business : |
Manufacture, Importer and Exporter of Chemicals, Dyestuffs, Detergents
and Intermediates, Emulsions, Industrial & Consumer Specialties, Leather
Services, Master batches. |
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|
|
|
No. of Employees : |
550 |
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Pakistan |
B2 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 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 |
ARCHROMA PAKISTAN LTD (APL)
|
Business Name |
Archroma Pakistan Ltd (APL) (formerly Clariant Pakistan Ltd) |
|
Address |
Registered
Address 1-A/1, Sector 20, Korangi Industrial Area, Karachi-74900 Pakistan. |
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Telephone |
(+92) (21) 111-275-000, 35046710-19 |
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Fax |
(+92) (21) 35046712, 35032337 |
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Email |
|
|
Website |
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|
Business activities |
Manufacture, Importer & Exporter of Chemicals, Dyestuffs,
Detergents & Intermediates, Emulsions, Industrial & Consumer
Specialties, Leather Services, Master batches. |
|
CRO Registration Number |
0037175 |
|
Date of Registration |
October 03, 1996 |
Other registry & certification details:
|
Current Legal Form |
Public Limited Company |
|
National Tax Registration Number |
0816040-6 |
|
Date of Registration |
January 14, 1997 |
|
GST Registration Number |
1200290078346 |
|
Date of Registration |
December 17, 1996 |
|
Chamber of Commerce & Industry |
Karachi Chamber of Commerce & Industries |
|
ISO Certification |
ISO 9001, ISO 14001 and OHSAS 18001 |
|
Listed |
Karachi Stock Exchange |
|
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 |
|
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 |
Clariant Pakistan Limited to Archroma Pakistan Ltd |
|
Year of change |
2014 |
|
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. Khawaja Mustafa Zulqarnain Majid |
Pakistani |
30 Mar 2012 |
|
Mr. Hans Lourens |
Netherlands |
31 Oct 2013 |
|
Mr. Thomas Winkler |
Singapore |
31 Oct 2013 |
|
Mr. Rolannd Waibel |
Switzerland |
31 Oct 2013 |
|
Mr. Zulfir Hussain (Alternate Director) |
Pakistani |
31 Oct 2013 |
|
Name |
Position in organization |
Qualification |
Years in
employment |
|
Mr. Mujtaba Rahim |
CEO |
Undetermined |
Undetermined |
|
Mr. Veqar Arif |
Company Secretary |
Undetermined |
Undetermined |
|
Mr. Altaf Jamal |
Finance Manager |
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 |
|
Bank name |
Approved financing limits PKR |
|
Faysal Bank Ltd |
Depository relation |
|
National Bank Of Pakistan |
Depository relation |
|
Meezan Bank Limited |
480,000,000.00 |
|
Habib Bank Limited |
240,000,000.00 |
|
Standard Chartered Bank (Pakistan) Limited |
240,000,000.00 |
|
Standard Chartered Bank (Pakistan) Limited HSBC Bank Middle East Limited Citibank N.A. Habib Bank Limited Meezan Bank Limited The Royal Bank Of Scotland Limited |
1,260,000,000.00 480,000,000.00 249,600,000.00 240,000,000.00 240,000,000.00 240,000,000.00 |
The core business focus of APL is Manufacture, Importer & Exporter
of Chemicals, Dyestuffs, Detergents & Intermediates, Emulsions, Industrial
& Consumer Specialties, Leather Services, Master batches. Oil & Mining
Services, Paper Specialties, Pigments & Textile Chemicals. The company also
acts as an Indenting Agent.
Purchases (Incl.
Imports)
|
Imports from |
Germany, Europe, Far East, Switzerland, China, India. |
|
Importing terms % |
L/C |
|
Local % |
Sindh – Punjab |
|
Local buying terms |
Cash and Credit of 30 days |
Sales (Incl.
Exports)
|
Exports to |
Europe, China, Korea, South Africa, USA |
|
Exporting terms |
L/C |
|
Local (%) |
All over Pakistan |
|
Local selling terms |
Cash and Credit of 30-45 Days |
|
Nature of
employment |
Current Year |
Previous Year |
|
Permanent |
550 |
540 |
|
Total |
550 |
540 |
|
Registered Address Owned / Rented Area (approx) |
1-A/1, Sector 20, Korangi Industrial Area, Karachi-74900 Pakistan. Undetermined Undetermined |
|
Factories Address Owned / Rented Area (approx) |
Petaro Road, Jamshoro. Korangi Industrial Area, Karachi. Katarband Road, Thokar Niaz Baig, Lahore. Undetermined Undetermined |
3 Wholesalers and 2 suppliers were contacted
to get a feedback of APL, all of them confirmed that the company is a well
known name in the market and doing well. Most of the market sources confirmed
their relation with Clariant Pakistan but were aware
of the recent takeover of the company, overall the company had a good market
reputation and it was revealed that the payment behavior of the company has
been good and up to the market standards. All the market feedback was found
satisfactory and no issues or untoward event came under our observation.
|
Business Name |
City |
Line of Business |
Percentile of
Shareholding |
|
Clariant International Limited |
Switzerland |
Same |
75% |
|
Particulars |
31-Dec-13 |
31-Dec-12 |
%
Change |
|
PKR in '000' |
PKR in '000' |
||
|
Current assets |
5,545,530 |
4,930,989 |
12.46 |
|
Current liabilities |
(1,549,218) |
(3,283,117) |
(52.81) |
|
Working capital |
3,996,312 |
1,647,872 |
142.51 |
|
Non-current assets |
941,608 |
2,111,078 |
(55.40) |
|
Long term liabilities |
(87,527) |
(128,608) |
(31.94) |
|
Net worth |
4,850,393 |
3,630,342 |
33.61 |
|
Turnover |
7,480,119 |
7,126,413 |
4.96 |
|
Gross Profit |
2,244,257 |
2,030,629 |
10.52 |
|
EBIT |
1,313,863 |
1,313,095 |
0.06 |
|
Profit / (Loss) before tax |
1,138,426 |
1,130,098 |
0.74 |
|
Provision for taxation |
(224,627) |
(224,766) |
(0.06) |
|
Profit / (Loss) after tax |
913,799 |
905,332 |
0.94 |
|
Creditors |
1,549,218 |
1,629,722 |
(4.94) |
|
Debtors |
1,859,659 |
2,030,479 |
(8.41) |
|
Cash & bank balances |
528,322 |
507,012 |
4.20 |
|
Growth trend |
|||
|
Sales growth (%) |
4.96% |
||
|
Gross profit growth (%) |
10.52% |
||
|
Solvency |
|||
|
Current ratio |
3.58 |
1.50 |
|
|
Quick ratio |
2.65 |
1.16 |
|
|
Total liabilities to net worth ratio (%) |
(33.74) |
(93.98) |
|
|
Profitability |
|||
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Return on sales (%) |
12.22 |
12.70 |
|
|
Return on net worth (%) |
18.84 |
24.94 |
|
Contact person |
Mr. Altaf Jamal |
|
Position |
Finance Manager |
|
Contact Person Comments |
Mr. Altaf Jamal
confirmed business operations and shared business information, including
financials. |
|
Analyst’s Observations/ comments |
Created from the textile, paper and emulsions businesses of
Clariant, Archroma is a global color and specialty chemicals company
committed to innovation, world-class quality standards, high service levels,
cost-efficiency and sustainability. Archroma is headquartered in Reinach near Basel, Switzerland, and
operates with approximately 3000 employees over 35 countries. Through its three businesses: Textile Specialties, Paper Solutions and
Emulsion Products, Archroma delivers specialized performance and color
solutions to meet customer needs in their local markets. Products enhanced, colors enhanced, performance enhanced – “Life
enhanced”. Archroma’s Textile Specialties Business plays a key role throughout
the entire textile supply chain, with special chemicals for pretreatment,
dyeing, printing and finishing of textiles. Our product packages enhance the
properties of apparel and other textiles in applications as diverse as high
fashion, home textiles and special technical textiles. From crease resistance to moisture management as well as repellency,
our functional effects provide added-value features to textile manufacturers.
Our specialist advisers provide color matching, trend monitoring as well as
sector specific concepts, including our ONE WAY sustainability service, to
ensure that customers generate greater value from their products. |
|
Date |
November 11, 2014 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.88 |
|
UK Pound |
1 |
Rs.97.02 |
|
Euro |
1 |
Rs.76.13 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
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|
Report Prepared
by : |
SHG |
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 |
|
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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.