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Report No. : |
314593 |
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Report Date : |
01.04.2015 |
IDENTIFICATION DETAILS
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Name : |
SARDAR CHEMICAL INDUSTRIES LIMITED |
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Registered Office : |
Plot No. 29-B, Road
No.01, Gadoon Amazai, Industrial Estate, Ganduf Road, Swabi (Khyber
Pakhtoonkwa) |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2014 |
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Date of Incorporation : |
1989 |
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Com. Reg. No.: |
0020311 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject is manufacture and
sale of Dyestuffs, Chemicals for the leather, textile and paper industries |
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No. of Employee : |
117 |
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 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Pakistan |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
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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.
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Source
: CIA |
SARDAR CHEMICAL
INDUSTRIES LIMITED
|
Registered
Address & Factory |
|
Plot No. 29-B, Road
No.01, Gadoon Amazai, Industrial Estate, Ganduf Road, Swabi (Khyber
Pakhtoonkwa), Pakistan |
|
Tel # |
92 (938) 270792, 270439, 270539 |
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Fax # |
92 (938) 270791 |
|
a. |
Nature of Business |
Principal business
of the Company is to manufacture and sale of Dyestuffs, Chemicals for the
leather, textile and paper industries |
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b. |
Year Established |
1989 |
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c. |
Registration # |
0020311 |
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(1) 127/II Block C, Model Town Lahore, Pakistan. (2) Shop No.11, New Chemical Market, Sector 7-A, Korangi Industrial
Area, Karachi, Pakistan. |
|
Aslam Malik & Company (Chartered Accountants) |
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Subject Company was established as a Private Limited Company in 1989 |
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Names |
Designation |
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Mr. Sardar Mahmood Sadiq Mr. Shahid Aziz Mr. Sardar Ayaz Sadiq Mr. Fayaz Ahmed Khan Mr. Iftikhar Ahmed Khan Mrs. Mona Mahmood Mrs. Reema Ayaz |
Chief Executive Director Director Director Director Director Director |
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Categories |
Shareholding
(%) |
|
Directors and their Spouse & Minor
Children Associated Companies, Undertakings and
Related Parties NIT & ICP Banks, Development Finance Institutions, Non
Banking Finance Companies Insurance Companies Modarabas & Mutual Funds General Public Others |
34.9917 0.0000 1.1383 0.0565 0.0000 2.8867 58.6469 2.2800 |
Subsidiary
None
Associated
Companies
- Do -
Principal business of the Company is to manufacture and sale of Dyestuffs, Chemicals for the leather, textile and paper industries
117
|
Years |
In Pak Rupees |
|
2013 2014 |
174,378,050/- 206,708,018/- |
Subject mainly import from Companies belongs to China, Korea, India, Germany, Italy, Taiwan & Japan
(Metric Tons)
2014 2013
Production in manufacturing units:
-
Rated capacity (M.Tons) on 360 days 660 660
-
Actual production (M.Tons) 399 427
Percentage of production 60% 65%
Mainly Textile Companies, Paper Manufacturers, Leather Companies etc
|
(1) Allied Bank
Limited, Pakistan. (2) Habib Bank
Limited, Pakistan. (3) Bank Alfalah
Limited, Pakistan. (4) Askari Bank Limited,
Pakistan. (5) Standard
Chartered Bank, Pakistan. |
·
Lahore Chamber of
Commerce & Industry.(LCCI)
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 102.65 |
|
UK Pound |
1 |
Rs. 152.50 |
|
Euro |
1 |
Rs. 110.25 |
Subject is a
well-established company having satisfactory track. 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.
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|
2014 Rupees |
2013 Rupees |
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EQUITY AND LIABILITIES |
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SHARE CAPITAL AND RESERVES |
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Authorized: 10,000,000(2014:10,000,000) Ordinary Shares of Rs. 10/- each. |
100000000 |
100000000 |
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Issued,
Subscribed and Paid-up: |
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|
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6,000,000 (2014:6,000,000) Ordinary shares of
Rs.10/-each fully paid in cash |
60,000,000 |
60,000,000 |
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Share premium |
30,000,000 |
30,000,000 |
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Un-appropriated Profit / (Loss) |
16,981,120 |
12806193 |
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|
106,981,120 |
102,806,193 |
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NON-
CURRENT LIABILITIES |
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|
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Obligation under Finance |
6465487 |
7957757 |
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Lease Deferred Taxation |
415834 |
314721 |
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CURRENT LIABILITIES |
|
|
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Current maturity of long term obligation |
1,492,373 |
2,267,214 |
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Short term finance |
23,963,186 |
30,537,749 |
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Creditors, accrued and other liabilities |
16,542,490 |
8,759,295 |
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Provision for taxation |
3,237,622 |
1,349,741 |
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Markup Accrued |
704,365 |
939,314 |
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|
45,940,036 |
43,853,313 |
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CONTINGENCIES
& COMMITMENTS |
- |
- |
|
|
159802477 |
154931984 |
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The annexed notes from 1 to 36
form an integral part of these financial statements. |
||
AS AT JUNE 30, 2014
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|
2014 Rupees |
2013 Rupees |
|
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ASSETS |
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NON- CURRENT ASSETS |
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Property, Plant and Equipment |
24,765,664 |
28,881,068 |
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Long Term Deposits |
2,482,300 |
2,482,300 |
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CURRENT ASSETS |
27,247,964 |
31,363,368 |
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Stores, spares & loose tools |
514,203 |
467,382 |
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Stock in trade |
23,999,689 |
28,513,411 |
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Trade debts |
77,910,748 |
71,086,3*97 |
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Advances, deposits, prepayments & Other
Recievables |
771,369 |
2,468,599 |
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Advance Tax |
23,594,993 |
15,943,025 |
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Cash & bank balances |
5,763,511 |
5,089,803 |
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|
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132,554,513 |
123,568,617 |
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|
|
|
|
|
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|
159,802,477 |
154,931,984 |
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PROFIT AND
LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2014
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2014 Rupees |
2013 Rupees |
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SALES- NET COST OF SALES |
206,708,018 167,590,596 |
174,378,050 136,422,862 |
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GROSS PROFIT |
39,117,422 |
37,955,188 |
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Administrative Selling and distribution
Other Operating Expenses Other Operating Income |
17,689,600 9,332,430 1,528,995 (594,493) |
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17,325,672 9,713,530 1,311,144 1,257,122 |
|
|
27,956,532 |
27,093,224 |
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Operating Profit/ (Loss) For
the Year Finance Costs Profit/ (Loss) before Taxation |
11,160,890 4,996,969 6,163,921 |
10,861,964 5,870,039 4,991,925 |
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Taxation |
|
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Current Deferred |
(1,887,881) (101,113) |
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(1,349,741) (59,660) |
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(1,988,994) |
(1,409,401) |
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Profit / (loss) for the year |
4,174,927 |
3,582,524 |
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Basic Earning / (loss) per
share |
0.70 |
0.59 |
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The annexed notes from 1 to 36 form an
integral part of these financial statements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.59 |
|
UK Pound |
1 |
Rs.92.46 |
|
Euro |
1 |
Rs.67.51 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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|
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Report Prepared
by : |
ASH |
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 |
-- |
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.