MIRA INFORM REPORT

 

 

Report Date :

12.12.2014

           

IDENTIFICATION DETAILS

 

Name :

CENTURY PAPER & BOARD MILLS LIMITED

 

 

Registered Office :

Lakson Square Building No. 2, Sarwar Shaheed Road, Karachi-74200

 

 

Country :

Pakistan

 

 

Financials (as on) :

30.06.2014

 

 

Date of Incorporation :

1984

 

 

Com. Reg. No.:

0012021

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

The principal activity of the Company is the manufacture, sale and marketing of paper, board and related products

 

 

No of Employees :

1,560

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Pakistan

B1

B1

 

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 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

Business Name

 

CENTURY PAPER & BOARD MILLS LIMITED

 

 

Full Address       

 

Registered Address

Lakson Square Building No. 2, Sarwar Shaheed Road, Karachi-74200, Pakistan

                       

Tel #

92 (21) 35698000

Fax #

92 (21) 35681163, 35683410

Email

info@centurypaper.com.pk

 

 

Short Description Of Business

 

a.

Nature of Business      

The principal activity of the Company is the manufacture, sale and marketing of paper, board and related products

b.

Year Established

1984

c.

Registration #

0012021  

 

 

Branches

 

14-Ali Block, New Garden Town,

Lahore, Pakistan

 

 

Factory Location

 

62 K.M., Lahore Multan Highway,  N-5, District Kasur, Pakistan   

 

 

Auditors

 

BDO Ebrahim & Co.

(Chartered Accountants)

 

Legal Status

 

Subject Company was established as a Public Limited Company in 1984

 

 

Details of Directors

 

Names

Designation

Mr. Iqbal Ali Lakhani

 

Mr. Aftab Ahmad

 

Mr. Zulfiqar Ali Lakhani

 

Mr. Amin Mohammed Lakhani

 

Mr. Tasleemuddin Ahmed Batlay

 

Mr. Shahid Ahmed Khan

 

Mr. Kemal Shoaib

 

Mr. Muhammad Imran Rafiq

Chairman

 

Chief Executive

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

 

Shareholders                

 

Names

Shareholding (%)

Directors, CEO, Their Spouses & Minor Children

 

Associated Companies, Undertakings and related parties

 

NIT & ICP

 

Public Sector Companies & Corporations

 

Banks, Development Financial Institutions, Non Banking Financial Institutions

 

Modaraba & Mutual Funds

 

Insurance Companies

 

General Public

 

Others

 

0.04

 

 

68.13

 

6.14

 

 

2.21

 

 

 

0.48

 

7.47

 

0.42

 

11.85

 

9.39

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

 

                        None                                             

           

B.         Associated Companies

 

Lakson Tobacco Company Limited, Pakistan.

Colgate Palmolive Pakistan Limited, Pakistan.

Cyber Internet Services (Pvt) Limited, Pakistan.

Century Insurance Company Limited, Pakistan.

Tritex Cotton Mills Limited, Pakistan.

Clover Foods Pakistan Limited, Pakistan.

Merit Packaging Limited, Pakistan.

Siza Foods (Pvt) Limited, Pakistan.

Reliance Chemicals Limited, Pakistan.

Century Power Generation Limited, Pakistan.

Accuray Surgicals Ltd, Pakistan.

Siza (Pvt) Limited, Pakistan.

Siza Services (Pvt) Limited, Pakistan.

Siza Commodities (Pvt) Limited, Pakistan.

Premier Fashions (Pvt) Limited, Pakistan.

 

 

Products

 

The principal activity of the Company is the manufacture, sale and marketing of paper, board and related products.

 

 

Number of Employees

 

1,560   

 

 

Capacity & Production - Tonnes

 

Capacity & Production - Tonnes

 

2014                                                2013

             Actual

                                                    Annual Capacity      Actual        Annual     Production

                                                    On Three Shifts     Production   Capacity

                                                                                                     On three

                                                                                                      Shifts

 

Paper & paper board produced         240,000            175,461     240,000     185,530        

Paper and paper board conversion       30,000              26,011       30,000       24,206   

 

 

Annual Sales Volume

 

Years

In Pak Rupees

2013

2014

14,235,621,000/-

14,667,669,000/-

 

 

Distributors

 

Mainly exist at major cities of Pakistan

 

 

Bankers

 

Allied Bank Limited, Pakistan.

Al Baraka Bank (Pakistan) Limited, Pakistan.

Bank Alfalah Limited, Pakistan.

Barclays Bank PLC.

Faysal Bank Limited, Pakistan.

Habib Bank Limited, Pakistan.

Habib Metropolitan Bank Limited, Pakistan.

HSBC Bank Middle East Limited.

JS Bank Limited, Pakistan.

MCB Bank Limited, Pakistan.

Meezan Bank Limited, Pakistan.

National Bank of Pakistan.

NIB Bank Limited, Pakistan.

Soneri Bank Limited, Pakistan.

Standard Chartered Bank, Pakistan.

 

 

Memberships

 

Federation Pakistan Chamber of Commerce & Industry.(FPCCI)

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

          Rs. 101.30

UK Pound

1

          Rs. 158.25

Euro

1

          Rs. 125.10

 

 

Comments

 

Lakson Group of Companies is engaged in diversified activities, which includes Chemical, Food & Allied, Tobacco, Fuel & Energy, Information Technology, Paper & Board, Surgical and Insurance etc. The group is well known and directors are resourceful and experienced businessmen. Their trade relations are reported as fair.  Payments to creditors etc are reported as normal. The 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.62.21

UK Pound

1

Rs.97.80

Euro

1

Rs.77.48

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 

 

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.