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Report Date : |
13.11.2014 |
IDENTIFICATION DETAILS
|
Name : |
BOLAN CASTINGS LIMITED |
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|
|
|
Registered Office : |
Main RCD Highway, Hub Chowki, District
Lasbella, Balochistan |
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|
|
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Country : |
Pakistan |
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|
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Financials (as on) : |
30.06.2014 |
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|
|
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Date of Incorporation : |
1982 |
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|
|
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Com. Reg. No.: |
0009619
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|
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Legal Form : |
Public Limited Company |
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|
|
|
Line of Business : |
Subject manufactures and sells castings for tractors & automotive
parts |
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|
|
|
No of Employees : |
193 |
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 |
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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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Pakistan |
B2 |
B1 |
|
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 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 |
BOLAN CASTINGS LIMITED
|
Registered
Address |
|
Main RCD Highway, Hub Chowki, District
Lasbella, Balochistan, Pakistan |
|
Tel # |
92 (85) 3364033, 3363296 |
|
Fax # |
92 (85) 3363292 |
|
Email |
|
a. |
Nature of Business |
The Company manufactures and sells castings for tractors &
automotive parts |
|
b. |
Year Established |
1982 |
|
c. |
Registration # |
0009619
|
|
In Karachi at present |
|
A.F. Ferguson & Co. (Chartered Accountants) |
|
Subject Company
is a public limited company incorporated and domiciled in Pakistan and listed
on the Karachi stock exchange of Pakistan |
|
Names |
Designation |
|
Mr. Sikandar M. Khan Mr. Sirajuddin Khan Mr. Latif Khalid Hashmi Mr. Sohail Bashir Rana Mr. Laeeq Uddin Ansari Mr. Mian Muhammad Saleem Mr. Javed Munir Mr. Muhammad Imran Rafiq |
Chairman Chief Executive Director Director Director Director Director Director |
|
Categories |
Percentage
(%) |
|
Associated Companies Investment Companies Bank / Financial Institutions Joint Stock Companies Mutual Funds Individuals Others |
46.26 0.00 15.37 1.26 4.27 27.18 5.65 |
|
(1) Millat Tractors
Limited, Pakistan. |
The Company manufactures and sells castings for tractors &
automotive parts
193
2014
2013
--------Metric Tons----------
Installed
capacity 13,200 13,200
Actual production 8,575 12,264
Capacity
utilization 64.96%
92.91%
|
Years |
In Pak Rupees |
|
2013 2014 |
1,745,974,000/- 1,111,227,000/- |
|
Various locals |
|
(1) Habib Bank Limited, Pakistan. (2) MCB Bank Limited, Pakistan. (3) Bank Alfalah Limited, Pakistan. (4) Dubai Islamic Bank Pakistan Limited,
Pakistan. (5) Meezan Bank Limited, Pakistan. (6) Faysal Bank Limited, Pakistan. (7) Barclays Bank PLC, Pakistan. (8) Askari Bank Limited, Pakistan. (9) Bank Al-Habib Limited, Pakistan. |
Increase in sales tax on tractors from 10% to
16% which came into effect from January 2014, followed by the speculation of
its reduction led to a drastic drop in the sales of tractors and tractors
casting as compared to last year. Further, the absence of subsidy schemes, by
the federal and provincial governments has also adversely impacted by reducing
the buying power of the farmers and resultantly scaling down the demand of
tractors.
The government decision to reduce GST from 16
percent to 10 percent is a good omen, which coupled with the probable
enhancement in tractor loaning by Zari Taraqiati Bank and other commercial
banks would give an impetus to the crisis ridden tractor and its vending
industry.
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 101.25 |
|
UK Pound |
1 |
Rs. 160.25 |
|
Euro |
1 |
Rs. 126.65 |
Subject Company enjoys good reputation in
Pakistan. Directors of the Company are reported as qualified, experienced and resourceful
businessmen. 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.61.48 |
|
|
1 |
Rs.97.92 |
|
Euro |
1 |
Rs.76.79 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
SMN |
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.