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Report Date : |
13.09.2014 |
IDENTIFICATION DETAILS
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Name : |
ENGRO POLYMER & CHEMICALS LIMITED |
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Registered Office : |
16th Floor, The |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
1997 |
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Com. Reg. No.: |
0038426 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Manufacture, market and sell
Poly Vinyl Chloride (PVC), PVC Compounds, Caustic Soda and other related
chemicals |
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No. of Employees : |
440 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 – June 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Pakistan |
B2 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
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
|
Source
: CIA |
ENGRO POLYMER
& CHEMICALS LIMITED
|
Registered
Address |
|
16th Floor, The Harbour Front Building, HC-3, Marine
Drive, Block 4, Scheme-5, Clifton, Karachi-75600, Pakistan |
|
Tel # |
92 (21) 111-411-411, 35293871,
35293885 |
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Fax # |
92 (21) 35293886, 35293887 |
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Nature of Business |
The
Company’s principal activity is to manufacture, market and sell Poly Vinyl
Chloride (PVC), PVC Compounds, Caustic Soda and other related chemicals |
|
Year Established |
1997 |
|
Registration # |
0038426 |
EZ / 1/ P-11-1, Eastern Zone, Bin
Qasim, Karachi, Pakistan
|
A.F. Ferguson & Co. (Chartered Accountants) |
|
The Company was incorporated as a Public Limited Company in 1997 and
is listed at stock exchanges of Pakistan |
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Names |
Designation |
|
Mr. Muhammad Aliuddin Ansari Mr. Khalid Siraj Subhani Mr. Abdul Samad Khan Mr. Kimihide Ando Ms. Naz Khan Mr. Shabbir Hashmi Mr. Shahzada Dawood Mr. Takashi Yoshida Mr. Waqar Malik Mr. Isar Ahmed |
Chairman Chief
Executive Director Director Director Director Director Director Director Director |
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Categories |
Shareholding (%) |
|
Directors, Chief Executive Officer, and their spouse and
minor children Associated Companies, undertakings and related parties Banks, Development Financial Institutions, Non Banking
Financial Institutions Insurance Companies Modarabas and Mutual Funds General Public Others |
0.03 81.26 0.55 0.26 0.07 12.49 5.35 |
A. Holding
Company
(1) Engro Corporation Limited, Pakistan
B. Associated
Companies
|
(1) Engro Vopak
Terminal Limited, Pakistan. (2) Engro Fertilizers
Limited, Pakistan. (3) Engro Eximp
(Private) Limited, Pakistan. (4) Engro Foods Limited,
Pakistan. (5) Engro Innovation
Automation (Private) Limited, Pakistan. (6) Engro Avanceon
Limited, Pakistan. (7) Engro PowerGen
Limited, Pakistan. |
The Company’s principal activity is
to manufacture, market and sell Poly Vinyl Chloride (PVC), PVC Compounds,
Caustic Soda and other related chemicals
440
Designed
Annual Capacity Actual Production
------------------------
--------------------------
--------------------- Kilo Tons
-----------------------
2013 2012 2013 2012
PVC 156 150 146 146
EDC 127 127 117 110
Caustic Soda 106 106 115 107
VCM 220 220 170 146
-----------------------Mega Watts-------------------------------
64 64 45
45
|
Year |
In Pak Rupees |
|
2012 2013 |
20,466,332,000/- 24,591,905,000/- |
Subject mainly import from Companies belongs to U.S.A., European
Countries, China, Korea, Taiwan & U.K.
|
Mainly exist at major cities of Pakistan |
|
(1) Allied Bank Limited, Pakistan. (2) Askari Bank
Limited, Pakistan. (3) Bank Alfalah
Limited, Pakistan. (4) Bank Alhabib
Limited, Pakistan. (5) Barclays Bank
PLC, Pakistan. (6) Citibank N.A., Pakistan. (7) Deutsche Bank AG,
Pakistan. (8) Faysal Bank
Limited, Pakistan. (9) Habib Bank
Limited, Pakistan. (10) HSBC Bank Middle
East Limited, Pakistan. (11) MCB Bank
Limited, Pakistan. (12) Meezan Bank
Limited, Pakistan. (13) National Bank of
Pakistan. (14) Standard
Chartered Bank, Pakistan. (15) Summit Bank
Limited, Pakistan. (16) United Bank
Limited, Pakistan. |
PVC suspension resin is the primary product of
Engro Polymer & Chemicals Ltd. Produced in a wide range of K-values: AU 58,
AU 60, AU 72, AU 67R and AU 67S, which are used in the manufacture of varied
PVC based products. The different grades of resin offer a diverse range of
properties that can be used in all the processing methods. PVC is produced by
the polymerization of ethylene (a petrochemical) and chlorine, which is
obtained from the electrolysis of common salt. In the domestic market PVC resin
is mainly used to manufacture PVC pipes. Other sectors include artificial
leather, shoes, rigid and soft sheets, garden hose, windows and doors etc.
Caustic soda is produced and sold as 50% solution in water. It is largely used
in the textile industry for processing, soap industry as a raw material, as
well as several other industries for water treatment. Sodium Hypochlorite is a
by-product in the manufacturing process of Caustic Soda. Engro Polymer &
Chemicals Ltd. manufacturers and sells it as liquid with available chlorine
(15% weight by volume). It is used extensively as a bleaching agent and
disinfectant for water treatment. Due to limited production, sales focus has
been in the south region only, where the entire production is consumed.
·
KCCI
·
FPCCI
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 102.25 |
|
UK Pound |
1 |
Rs. 164.90 |
|
Euro |
1 |
Rs. 131.75 |
Subject
Company is well known and directors are resourceful and experienced
businessmen. Trade relations are reported as fair. Payments to creditors etc are reported as
normal. 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.60.84 |
|
|
1 |
Rs.98.72 |
|
Euro |
1 |
Rs.78.64 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
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|
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 |
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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 |
-- |
|
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.