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Report Date : |
10.05.2014 |
IDENTIFICATION DETAILS
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Name : |
PHILIP MORRIS (PAKISTAN) LIMITED |
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Formerly Known as: |
LAKSON TOBACCO COMPANY LIMITED |
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Registered Office : |
19th Floor, The Harbour Front,
Dolmen City, HC-3, Block-4, Clifton, Karachi |
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Country : |
Pakistan |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
10.02.1969 |
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Com. Reg. No.: |
0002832 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Engaged in manufacturing and sale of cigarettes and tobacco. |
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No. of Employees |
2,380 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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Pakistan |
B2 |
B2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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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.
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Source : CIA |
PHILIP MORRIS
(PAKISTAN) LIMITED
(FORMERLY: LAKSON TOBACCO COMPANY LIMITED)
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Registered
Address |
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19th Floor, The Harbour Front,
Dolmen City, HC-3, Block-4, Clifton, Karachi, Pakistan |
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Tel # |
92 (21) 35209600, 35209601 |
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Fax # |
92 (21) 35294350 |
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Email |
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URL |
Previous Address
Fourth Floor, Bahria Complex III,
M.T. Khan Road, Karachi 74000.
|
a. |
Nature of Business |
Engaged in
manufacture & sale of Cigarettes and Tobacco |
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b. |
Year Established |
February 10, 1969 |
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c. |
Registration # |
0002832 |
A.F. Ferguson & Co.
(Chartered Accountants)
The Company was incorporated in Pakistan on February 10, 1969 as a public limited company and its shares are quoted on the Karachi and Lahore Stock Exchanges of Pakistan
|
Names |
Designation |
|
Mr. Arpad Konye Mr. Nicolas Floros Mr. Andreas Franz Kurali Mr. Joseph Ziomek Mr. Charles Bendotti Mr. Mujtaba Hussain Mr. Asmer Naim |
Chairman & CEO Director Director Director Director Director Director |
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Categories |
Percentage
(%) |
|
Directors, Chief Executive Officers, and
their spouse and minor children Associated Companies, Undertakings and
related parties Banks, Development Financial Institutions,
Non Banking Financial Institutions Insurance Companies Mutual Funds General Public Others |
0.00 97.65 0.02 0.03 0.01 1.76 0.53 |
Principal activity of the Company is manufacture and sale of cigarettes and tobacco.
Philip Morris International Inc. holds around 97.62 percent shares of the Subject Company
2,380
Against an installed manufacturing capacity of 51,969 million
(2011: 50,112 million) cigarettes, actual production was 23,207 million (2011:
22,440 million) cigarettes. Actual production was sufficient to meet the
demand.
|
(1) Barclays Bank
PLC, Pakistan (2) Citibank N.A., Pakistan. (3) Habib Bank Limited, Pakistan. (4) MCB Bank Limited, Pakistan. (5) National Bank of Pakistan, Pakistan. (6) Standard Chartered Bank, Pakistan. (7) United Bank Limited, Pakistan. (8) Faysal Bank Limited, Pakistan. (9) Soneri Bank Limited, Pakistan. (10) Allied Bank Limited, Pakistan. (11) Habib Metropolitan Bank Limited,
Pakistan. |
Sound
In 2012, the gross turnover increased by 11.4% while gross profit
increased by 41.1%. this
year-on-year increase is primarily attributable to higher sales of 262 million
cigarettes and increased margin resulting from price increase in June 2012.
The Company continued to actively invest in its operational capabilities
and, as such increased its investment in property, plant and equipment to Rs.
1,896 million in 2012, an increase of 147% versus 2011. These investments are
primarily made under the umbrella of a comprehensive project of modernizing
manufacturing facilities and Equipments, safeguarding assets through
warehousing upgrades and achieving overall improvements in productivity and
product quality.
The Company continues to contribute substantially to the annual government’s
revenue. In 2012, the Company contributed Rs. 23.3 billion to the national
exchequer in the form of Federal Excise Duties, Custom Duties, Sales Tax and
Income Tax, which represents a 12% increase compared to 2011.
Management is focused to bring an overall improvement in all aspects of our operations. This is being achieved through innovative marketing, upgrading of plant and machinery to improve product quality, development of human capital and continued emphasis on cost control.
· Federation Pakistan Chamber of Commerce & Industry.(FPCCI)
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Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 100.00 |
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UK Pound |
1 |
Rs. 166.50 |
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Euro |
1 |
Rs. 138.00 |
The Company was incorporated in Pakistan on February 10, 1969 as a public limited company and its shares are quoted on the Karachi and Lahore stock exchanges. The principal activity of the company is the manufacture and sale of cigarettes and tobacco. The company has been very aggressive in its business activity throughout and has made very good progress and has become the biggest manufacturer of cigarettes in Pakistan. All its products enjoy good reputation and public acceptance.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.05 |
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|
1 |
Rs.101.65 |
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Euro |
1 |
Rs.83.07 |
INFORMATION DETAILS
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Analysis Done by
: |
SUM |
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Report Prepared by
: |
NIS |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>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 |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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.