|
Report Date : |
15.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
ARCHROMA PAKISTAN LTD (APL) |
|
|
|
|
Registered Office : |
1-A/1, Sector 20, Korangi Industrial Area, Karachi-74900 |
|
|
|
|
Country : |
Pakistan |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
17.12.1996 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturer of Chemicals |
|
|
|
|
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 |
|
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, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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 |
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. |
|
Telephone |
(+92) (21) 111-275-000, 35046710-19 |
|
Fax |
(+92) (21) 35046712, 35032337 |
|
|
|
|
Website |
|
|
Business activities |
Manufacturer of Chemicals |
Registry Details
|
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 9001-2008 |
|
Listed |
Karachi Stock Exchange |
Capital
|
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 |
History
|
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 |
|
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 |
|
Habib Bank Limited |
240,000,000.00 |
|
Meezan Bank Limited |
240,000,000.00 |
|
Standard Chartered Bank (Pakistan) Limited |
240,000,000.00 |
|
Habib Bank Limited Meezan Bank Limited Citibank N.A. HSBC Bank Middle East Limited The Royal Bank Of Scotland Limited Standard Chartered Bank (Pakistan) Limited |
240,000,000.00 240,000,000.00 249,600,000.00 480,000,000.00 240,000,000.00 1,260,000,000.00 |
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 |
Six wholesalers
and companies were
contacted to get a feedback about APL, its products and sponsors. All the
feedback was found Satisfactory and no disputes or untoward events including
complaints about quality of products were reported/ identified during inquiry.
|
Business Name |
City |
Line of Business |
Percentile of
Shareholding |
|
Clariant
International Limited |
Switzerland |
Same |
75% |
|
Particulars |
31-Dec-12 |
31-Dec-11 |
% Change |
|
|
PKR in '000' |
PKR in '000' |
|
|
Current assets |
4,930,989 |
4,219,914 |
16.85 |
|
Current liabilities |
(3,283,117) |
(1,991,571) |
64.85 |
|
Working capital |
1,647,872 |
2,228,343 |
(26.05) |
|
|
|
|
|
|
Non-current assets |
2,111,078 |
1,192,979 |
76.96 |
|
Long term liabilities |
(128,608) |
(353,135) |
(63.58) |
|
Net worth |
3,630,342 |
3,068,187 |
18.32 |
|
|
|
|
|
|
Turnover |
7,126,413 |
5,787,363 |
23.14 |
|
Gross Profit |
2,018,529 |
1,398,665 |
44.32 |
|
EBIT |
1,296,227 |
818,602 |
58.35 |
|
Profit / (Loss) before tax |
1,113,230 |
662,065 |
68.15 |
|
Provision for taxation |
(218,862) |
(182,566) |
19.88 |
|
Profit / (Loss) after tax |
894,368 |
479,499 |
86.52 |
|
|
|
|
|
|
Creditors |
1,629,722 |
1,374,184 |
18.60 |
|
Debtors |
2,030,479 |
1,393,752 |
45.68 |
|
Cash & bank balances |
507,012 |
486,828 |
4.15 |
|
|
|
|
|
|
Growth trend |
|
|
|
|
Sales growth (%) |
23.14% |
|
|
|
Gross profit growth (%) |
44.32% |
|
|
|
|
|
|
|
|
Solvency |
|
|
|
|
Current ratio |
1.50 |
2.12 |
|
|
Quick ratio |
1.16 |
1.43 |
|
|
Total liabilities to net worth ratio (%) |
(93.98) |
(76.42) |
|
|
|
|
|
|
|
Profitability |
|
|
|
|
Return on sales (%) |
12.55 |
8.29 |
|
|
Return on net worth (%) |
24.64 |
15.63 |
|
|
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 |
The office was comprised of twenty air-conditioned rooms, with thirty to thirty five computers and well decorated furniture. Fifty to sixty employees were present in the office. Satisfactory Stocks of good were inspected at the time of visit. The company is a subsidiary of Clariant International Ltd, incorporated in Switzerland. The company was established in 1995 but was registered SECP in 1996. Signboard was placed in the factory. At the time of visit staff was busy in work. Factory is located in main commercial area. Mr. Altaf Jamal was good knowledge about business. At the time of visit cp Mr. Altaf Jamal very busy in Cell phone dealing with customers and company related issues. |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.52 |
|
|
1 |
Rs.101.48 |
|
Euro |
1 |
Rs.84.11 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
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.