|
Report Date : |
12.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
DEWAN CEMENT
LIMITED |
|
|
|
|
Registered Office : |
Finance &
Trade Centre, Block-A, 7th Floor, Shahrah-e-Faisal, Karachi |
|
|
|
|
Country : |
Pakistan |
|
|
|
|
Year of Establishment : |
1980 |
|
|
|
|
Com. Reg. No.: |
0007605 |
|
|
|
|
Legal Form : |
Public Limited Company (Listed at Karachi Stock Exchange) |
|
|
|
|
Line of Business : |
Engaged in manufacturing & sale of cement |
|
|
|
|
No of Employees : |
362 |
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Pakistan |
B2 |
B2 |
|
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 |
DEWAN
CEMENT LIMITED
|
Registered Address |
|
Finance & Trade Centre, Block-A, 7th
Floor, Shahrah-e-Faisal, Karachi, Pakistan |
|
Tel # |
92 (21) 111-364-111 |
|
Fax # |
92 (21) 35630860 |
|
a. |
Nature of Business |
Engaged in manufacture & sale of cement |
|
b. |
Year Established |
1980 |
|
c. |
Registration # |
0007605 |
(1) Deh Dhando, Dhabeji, District, Malir, Karachi, Pakistan.
(2) Kamilput Near Hattar District, Haripur, Khyber Pakhtoonkwa, Pakistan.
Block-A, 2nd Floor,
Finance & Trade
Centre, Shahrah-e-Faisal,
Karachi, Pakistan
Faruq Ali & Co.
(Chartered
Accountants)
Subject Company is a public limited company incorporated in Pakistan and is listed at Karachi Stock Exchange.
|
Names |
Designation |
|
Mr. Dewan Mohammad
Yousuf Farooqui Mr. Dewan Abdul
Baqi Farooqui Mr. Dewan Abdul
Rehman Farooqui Mr. Haroon Iqbal Mr. Syed Muhammad
Anwar Mr. Ishtiaq Ahmad |
Chairman & CEO Director Director Director Director Director |
|
Categories |
Percentage (%) |
|
Associated
Companies NIT & ICP Directors, CEO,
their spouse and minor children Executives Public Sector
Companies & Corporations Banks, Development
Finance Institutions, Non-Banking Finance Companies, Insurance Companies,
Modarabas & Mutual Funds Individuals |
33.83 1.51 22.38 0.00 2.08 2.55 37.65 |
A. Subsidiary
None
B. Associated Companies
(1)
Dewan Farooque Motors Limited, Pakistan.
(2)
Dewan Mushtaq Motor Company, Pakistan.
(3)
Dewan Automotive Engineering Ltd, Pakistan.
(4)
Dewan Motorcycles Limited, Pakistan.
(5)
Dewan Salman Fibre Limited, Pakistan.
(6)
Dewan Sugar Mills Limited, Pakistan.
(7)
Dewan Khoski Sugar Mills Limited, Pakistan.
(8)
Dewan Textile Mills Limited, Pakistan.
(9)
Dewan Khalid Textile Mills Limited, Pakistan.
(10)
Dewan Mushtaq Textile Mills Limited, Pakistan.
(11)
Dewan Farooque Spinning Mills Limited, Pakistan.
(12)
Dewan Textile Limited, Pakistan.
(13)
Dewan Hattar Cement Limited, Pakistan.
(14)
Dewan Technologies (Pvt) Limited, Pakistan.
Engaged in manufacture & sale of cement
362
In Metric Tones
Annual installed capacity 2013 2012
- South unit (Line 1) 900,000 900,000
- South unit (Line II) 960,000 960,000
- North unit (Line 1) 540,000 540,000
- North unit (Line II) 540,000 540,000
------------ ------------
2,940,000
2,940,000
Actual Production for the year 2013
2012
- South unit (Line 1) 76,443
58,799
- South unit (Line II) 773,640 675,545
- North unit (Line 1) 156,475 191,697
- North unit (Line II) 460,727 320,654
------------ ------------
1,467,285
1,246,695
The under
utilization of capacity was due to maintenance of plant and downfall in demand
of cement.
(Last Two Years)
|
Years |
In
Pak Rupees |
|
2012 2013 |
7,046,551,000/- 8,657,569,000/- |
Mainly exist at major cities of Pakistan
(1) MCB Bank Limited,
Pakistan.
(2) Habib Bank Limited,
Pakistan.
(3) Standard Chartered
Bank, Pakistan.
(4) Meezan Bank Limited,
Pakistan.
(5) United Bank Limited,
Pakistan.
(6) Bank Alfalah
Limited, Pakistan.
(7) Silk Bank Limited,
Pakistan.
(8) Soneri Bank Limited, Pakistan.
Mainly to Afghanistan & India
During the financial year 2012-2013 industry dispatches were 33.4 million tons including 25.1 million tons domestic and 8.3 million ton export showing an increase of 2.83% in total dispatches of the industry as compared to the previous year, which were 32.5 million tons including 24 million domestic and 8.5 million exports.
The demand of cement in domestic market is expected to increase as the government has allocated substantial funds for Public Sector Development Projects (PSD). This will be a key trigger for increase of cement demand in domestic market for the next financial year.
· Federation Pakistan Chamber of Commerce & Industry.
· Karachi Chamber of Commerce & Industry.
|
Currency |
Unit |
Pakistani
Rupee |
|
US Dollar |
1 |
Rs. 99.70 |
|
UK Pound |
1 |
Rs. 167.25 |
|
Euro |
1 |
Rs. 135.25 |
Subject Company was established in 1980 and is engaged in manufacture & sale of cement. Directors of the Company are reported as qualified, experienced and resourceful businessmen. 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.59.33 |
|
UK Pound |
1 |
Rs.99.42 |
|
Euro |
1 |
Rs.80.32 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
MNL |
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.