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Report No. : |
318997 |
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Report Date : |
29.04.2015 |
IDENTIFICATION DETAILS
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Name : |
THATTA CEMENT COMPANY LIMITED |
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Registered Office : |
Office No. 606-608A, Continental Trade Center, Block 8, Clifton, Karachi |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2014 |
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Year of Establishment : |
1980 |
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Com. Reg. No.: |
0007609 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Manufacture & Marketing of Cement. |
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No. of Employees : |
561 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
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-fourth of output and two-fifths of
employment. Textiles account for most of Pakistan's export earnings, and
Pakistan's failure to diversify its exportshas left the country vulnerable to
shifts in world demand. Official unemployment was 6.9% in 2014, but this fails
to capture the true picture, because much of the economy is informal and
underemployment remains high. Pakistan’s human development continues to lag
behind most of the region.. As a result of political and macroeconomic
instability, the Pakistani rupee has depreciated more than 40% since 2007. The
government agreed to an International Monetary Fund Standby Arrangement in
November 2008 to preventa balance of payments crisis, but the IMF ended the
Arrangement early because of Pakistan’s failure to implement required reforms.
The economy has stabilized, it continues to underperform and foreign investment
has not returned to levels seen during themid-2000’s, due to investor concerns
related to governance, electricity shortages, , and a slow-down in the global
economy. Remittances from overseas workers, averaging more than$1 billion a
month, remain a bright spot for Pakistan. After a small current account surplus
in fiscal year 2011 (July 2010/June 2011), Pakistan's current account turned to
a deficit where it remained through 2014, spurred by higher prices for imported
oil and lower prices for exported cotton. In September 2013, after facing
balance of payments concerns, Pakistan entered into a three-year, $6.7 billion
IMF Extended Fund Facility. The Sharif government has since made modest
progress implementing fiscal and energy reforms, and in December 2014 the IMF
described Pakistan’s progress as “broadly on track.” Pakistan remains stuck in
a low-income, low-growth trap, with growth averaging about 3.5% per year from
2008 to 2014. Pakistan must address long standing issues related to government
revenues and the electricity and natural gas sectorsin 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 |
|
Business Name |
THATTA CEMENT
COMPANY LIMITED |
|
Registered
Address |
|
Office No. 606-608A,
Continental Trade Center, Block 8, Clifton, Karachi, Pakistan |
|
Tel # |
92 (21)
111-842-882 |
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Fax # |
92 (21)
35303074, 35303075 |
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E-mail |
|
a. |
Nature of Business |
Engaged in
manufacture & marketing of Cement |
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b. |
Year Established |
1980 |
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c. |
Registration # |
0007609 |
Ghulamullah Road, Makli,
District Thatta, Sindh, Pakistan
|
KPMG Taseer Hadi
& Co. (Chartered
Accountants) |
|
Subject Company
is a public limited company incorporated in Pakistan and is listed at
Stock Exchanges of Pakistan |
|
Names |
Designation |
|
Mr. Khawaja
Mohammad Salman Younis Mr. Muhammad
Fazlullah Sharif Mr. Shahid Aziz
Siddiqui Mr. Agha Sher
Shah Mr. Wazir Ali
Khoja Mr. Saleem
Zamindar Mr. Attaullah A.
Rasheed |
Chairman Chief Executive Director Director Director Director Director |
|
Names |
Shareholding
(%) |
|
Individuals Investment Companies Joint Stock Companies Directors, Chief Executive Officer, their Spouse and Minor Children Executives Mutual Funds Associated Companies, Undertakings and related parties Public Sector Companies and Corporations Banks, DFIs, NBFIs, Insurance Companies, Modarabas & Pension Funds Foreign Investors Co-operative Societies Charitable Trusts Others |
1.17 35.54 0.0023 0.0023 --- 7.17 26.83 --- 29.28 0.004 --- --- --- |
A. Subsidiary
(1) Thatta Power (Pvt) Limited, Pakistan.
B. Associated Companies
(1)
Rising Star Holding (Pvt) Limited, Pakistan.
(2)
Sky Pak Holding (Pvt) Limited, Pakistan.
(3)
Bandhi Sugar Mills
(Pvt) Limited, Pakistan.
(4) Pak Suzuki Motor Company Limited, Pakistan.
(5) Habib Bank Limited, Pakistan.
Engaged in manufacture & marketing of Cement
561
2014 2013
Metric Tons
Metric Tons
Production capacity - clinker (tons) 450,000 450,000
Actual production – clinker (tons) 291,035 357,206
Actual production – cement (tons) 300,615 370,319
The production
capacity utilizations during the year has remained at 64.67% (June 30, 2013: 79.38%).
The underutilization is mainly due to hard hitting competition in the industry.
|
Years |
In Pak Rupees |
|
2013 2014 |
2,361,192,000/- 2,182,327,000/- |
|
Mainly exist at major cities of Pakistan |
(1)
Sindh Bank Limited,
Pakistan.
(2)
National Bank of
Pakistan.
(3)
Summit Bank Limited,
Pakistan.
(4)
Bank Alfalah Limited,
Pakistan.
(5)
Habib Bank Limited,
Pakistan.
|
Mainly to Sri Lanka, Middle East Countries, India
& African Countries |
The cement industry crossed yet another
milestone when local sales during the year touched the highest ever historic
figure of 26.14 m MT which was 4.34% higher than that of the previous year.
During the year, overall dispatches of the
Company were lower by 17.92% as compared to the last year mainly on account of
depressed sales in southern region.
The budget for the fiscal year 2014-2015 announced
by the Government in the month of June 2014 grossly fell short of the
expectations of the cement industry demands for excluding this sector from
application of sales tax on retail price basis mechanism, reduction in Federal
Excise Duty on gradual basis, relief in fuel cost by removing duty on imported
coal.
·
FPCCI
·
KCCI
·
APCMA
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 102.50 |
|
UK Pound |
1 |
Rs. 152.75 |
|
Euro |
1 |
Rs. 109.75 |
Subject Company was established in 1980 and is engaged in manufacture & marketing of Cement. 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.63.33 |
|
|
1 |
Rs.96.52 |
|
Euro |
1 |
Rs.68.93 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
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Report Prepared
by : |
NIT |
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 |
|
|
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 |
|
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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 |
-- |
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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.