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Report Date : |
19.03.2014 |
IDENTIFICATION DETAILS
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Name : |
SERVICE INDUSTRIES LIMITED |
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Registered Office : |
Servis House, 2-Main Gulberg, Lahore, Pakistan |
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Country : |
Pakistan |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
20.03.1957 |
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Com. Reg. No.: |
0000864 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Activities of the Company are purchase, manufacture & sale of
Footwear, Tyres and Tubes and technical rubber products |
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No. of Employees : |
410 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 – December 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
Pakistan |
B2 |
B2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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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 |
SERVICE INDUSTRIES
LIMITED
|
Registered
Address |
|
Servis House, 2-Main Gulberg, Lahore, Pakistan |
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Tel # |
92 (42) 35751990 - 96 (6 Lines) |
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Fax # |
92 (42) 35710593, 35712109 |
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Email |
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a. |
Nature of Business |
Principal activities of the Company are purchase, manufacture &
sale of Footwear, Tyres and Tubes and technical rubber products |
|
b. |
Year Established |
1957 |
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c. |
Registration # |
0000864 |
(1) G.T.
(2) Muridke-Sheikhupura
|
S.M. Masood & Co. (Chartered
Accountants) |
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Service
Industries Limited was incorporated as a Private Limited Company on
March 20, 1957 and was converted to into a Public Limited Company on
September 23, 1959. The shares of the Company are quoted on the Lahore &
Karachi Stock Exchanges of Pakistan |
|
Names |
Designation |
|
Mr. Chaudhry Ahmed Javed Mr. Omar Saeed Mr. M. Ijaz Butt Mr. Arif Saeed Mr. Hasan Javed Mr. Riaz Ahmed Mr. Shaukat Ellahi Shaikh Mr. Muhammad Amin Mr. Manzoor Ahmed |
Chairman Chief Executive
Officer Director Director Director Director Director Director Director |
|
Categories |
Percentage
(%) |
|
Directors, Chief Executive Officer and their spouse & minor
children Associated Companies, Undertakings and related parties NIT & ICP Banks, Development Financial Institutions, Non-Banking Financial
Institutions Insurance Companies Modarabas & Mutual Funds General Public (Local) Others |
42.86 0.08 0.37 14.81 0.04 15.27 23.38 3.19 |
(1)
Service Sales Corporation (Pvt) Limited, Pakistan.
(2)
Shahid Arif Investment (Pvt) Limited, Pakistan.
Principal activities of the Company are purchase, manufacture & sale
of Footwear, Tyres and Tubes and technical rubber products
410
Footwear and
others
Due to the nature of the Company’s business production capacity is not
determinable.
Installed Capacity Actual Production
2012 2011 2012 2011
Tyres (Nos) 9,778,080 9,674,765 6,135,309 5,074,655
Tubes (Nos) 19,595,056 17,503,361 15,879,798 11,998,839
|
Mainly exist at major cities of Pakistan |
|
(1) Habib Bank Limited, Pakistan. (2) United Bank Limited, Pakistan. (3) MCB Bank Limited, Pakistan. (4) Faysal Bank Limited, Pakistan. (5) Barclays Bank PLC, Pakistan. (6) Allied Bank Limited, Pakistan. (7) HSBC Bank Middle East Limited, Pakistan. (8) SAMBA Bank Limited, Pakistan. (9) Standard Chartered Bank, Pakistan. (10) Bank Alfalah Limited, Pakistan. (11) Meezan Bank Limited, Pakistan. |
The demand of footwear in the world markets is predicted to drop. Due to
the declining raw material prices, pressure on the finished goods prices has
been created for corresponding selling price reduction. Power outage, recession
in the world markets, lack of development activity and law and order situation
will continue to be major causes of concern which are likely to adversely
affect its profitability.
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 101.00 |
|
UK Pound |
1 |
Rs. 167.00 |
|
Euro |
1 |
Rs. 136.75 |
Subject is a well-established company having fine track. Directors are
reported as experienced, respectable and having satisfactory means of their
own. Trade relations are reported as fair. Payments are usually correct and as
per commitments. 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.60.95 |
|
|
1 |
Rs.101.37 |
|
Euro |
1 |
Rs.84.89 |
INFORMATION DETAILS
|
Report Prepared by
: |
PDT |
RATING EXPLANATIONS
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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 |
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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 |
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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 |
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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.