|
Report Date : |
20.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
PEOPLES STEEL MILLS LIMITED |
|
|
|
|
Registered Office : |
Javedan Nagar, Manghopir, Karachi, Pakistan. |
|
|
|
|
Country : |
Pakistan |
|
|
|
|
Date of Incorporation : |
1989 |
|
|
|
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Com. Reg. No.: |
0019596 |
|
|
|
|
Legal Form : |
Public Sector Enterprise |
|
|
|
|
Line of Business : |
Engaged in the manufacturing and sale of
special and alloy steel primarily to Strategic & Defence sector |
|
|
|
|
No. of Employees |
550 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
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 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately 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 |
PEOPLES STEEL
MILLS LIMITED
|
Registered Address & Factory |
|
Javedan Nagar, Manghopir, Karachi, Pakistan.
|
|
Tel # |
92 (21) 36770114, 6770126,
36979159, 36946939, 36946929, 36960893, 36973944 |
|
Fax # |
92 (21) 36770112 |
|
Email |
|
a. |
Nature of Business |
Mainly engaged
in the manufacturing and sale of special and alloy steel primarily to
Strategic & Defence sector |
|
b. |
Year Established |
1989 |
|
c. |
Registration # |
0019596 |
|
In Lahore
& Rawalpindi |
|
KPMG Taseer Hadi & Co. (Chartered Accountants) |
|
The Company was incorporated in 1968 under
the Companies Act, 1913 since repealed by the Companies Ordinance, 1984 (the
Ordinance) by the name of Valika Steel Works Limited. In 1972, it was
nationalised under Economic Reform Order 1972 and renamed as Peoples Steel
Mills Limited. Because of technical and financial difficulties, the operations
of the Company were closed down by the order of Economic Coordination
Committee (ECC) in December 1979. However, in the year 1988, the Government
of Pakistan (GOP) decided to rehabilitate this dormant plant on strategic
grounds and as a result, the Company entered into an agreement with Voest
Alpine Industrial Services, Austria (VAIS) for Balancing, Modernisation and
Rehabilitation (BMR). |
|
Names |
Designation |
|
Dr. Munir Ahmed Mr. Karim Ahmed, HI Dr. Syed Wilayat Husain Dr. Ihtzaz Qamar Mr. Abdul Ghani Sameen Mr. S. Tahir Ali Shah Brig (R) Sajjad Ahmed Lt, Gen. Shujaat Zamir Dar, HI (M) |
Chief Executive Director Director Director Director Director Director Director |
|
Names |
No. of Shares |
|
President of Pakistan Chairman, Peoples Steel Mills Ltd Chief Scientific Advisor, Project Managing Director (Peoples Steel Mills Ltd) Company Secretary (Peoples Steel Mills Ltd) State Engineering Corporation (Pvt) Ltd Federal Light Engineering Corporation (Pvt)
Ltd Pakistan Automobile Corporation (Pvt) Ltd National Bank of Pakistan National Investment Trust Investment Corporation of Pakistan State Life Insurance Corporation Ltd |
452,683,300 1 1 1 1 6,645,925 40,500 40,500 1,076,880 1,041,250 576,394 1,998,967 |
(1)
State Engineering
Corporation (Pvt) Ltd.
(2)
Federal Light Engineering
Corporation (Pvt) Ltd.
(3)
Pakistan Automobile
Corporation (Pvt) Ltd.
(4)
National Development
Finance Corporation.
(5)
National Investment
Trust.
(6)
Investment Corporation Of
Pakistan.
(7)
State Life Insurance
Corporation of Pakistan.
Mainly engaged in the manufacturing and sale
of special and alloy steel primarily to Strategic & Defence sector
550
Annual Capacity of 60,000
M.Tons in the form of Ingots, Billets, Plates, Bars, Flats, Forgings &
castings
|
Year |
In Pak Rupees |
|
2011 |
5,795,343,000/- |
|
Mainly Government Organizations, Defence Organizations,
Private Organizations etc. |
|
(1) Habib Bank
Limited, Pakistan. (2) Allied Bank Limited, Pakistan. (3) National Bank of
Pakistan, Pakistan. (4) Standard
Chartered Bank, Pakistan. (5) United Bank
Limited, Pakistan. (6) Bank Alfalah
Limited, Pakistan. |
Peoples Steel
Mills Ltd is a world class
alloy and special steel manufacturer plant located in Karachi, Pakistan.
It was set-up by the Government of Pakistan in 1975 with Japanese assistance.
In order to keep pace with emerging technologies, the plant was upgraded in
1996 though a comprehensive balancing & modernization programme with the
technical assistance of VAIS, INTECO and Bohler of Austria. The plant is
now equipped with modern melting, refining, degassing, electro slag re-melting
and necessary casting, rolling and forging facilities with an annual capacity
of 70,000 mt. Product quality is assured through modern material testing
facilities and well trained staff. The plant has the capability to produce
steels according to all major international quality standards and to date has
manufactured more than 300 steel grades. Peoples Steel enjoys the highest
market share in the alloy and special steel market of Pakistan. A diversified
base of customers includes high profile illustrious end users in automotive,
defense, machinery construction, special/high rise buildings, transportation
and engineering sectors. Components manufactured from our steels are supplied
by our customers to renowned European & Japanese automobile manufactures.
·
Karachi Chamber of
Commerce & Industry.
·
Federation Pakistan
Chamber of Commerce & Industry.
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 99.25 |
|
UK Pound |
1 |
Rs. 166.25 |
|
Euro |
1 |
Rs. 136.10 |
The
conduct of the Company is correct and mode of payment prompt no complaints have
been heard regarding payments to local suppliers and banks. 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.58.42 |
|
|
1 |
Rs.98.28 |
|
Euro |
1 |
Rs.80.11 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
PDT |
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.