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Report No. : |
352961 |
|
Report Date : |
09.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
CHAUDHRY SUGAR MILLS LIMITED |
|
|
|
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Registered Office : |
146-Abu Bakar Block, Garden Town, Lahore |
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|
|
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Country : |
Pakistan |
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|
|
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Financials (as on) : |
30.09.2014 |
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|
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Date of Incorporation : |
2002 |
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|
|
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Com. Reg. No.: |
0043751 |
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|
|
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Legal Form : |
Non-Listed Public Limited Company |
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|
|
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Line of Business : |
The Subject is engaged in manufacturing
& sale of sugar, yarn and particle board, Molasses and cotton waste are
the only significant by-products contribution to Company’s revenues |
|
|
|
|
Employees: |
1,100 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
Slow but correct |
|
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, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Pakistan |
B1 |
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-fourth of output and two-fifths of
employment. Textiles account for most of Pakistan's export earnings, and
Pakistan's failure to diversify its exports has 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 the mid-2000s, 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 sectors 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 |
CHAUDHRY
SUGAR MILLS LIMITED
|
Registered
Address |
|
146-Abu Bakar
Block, Garden Town, Lahore, Pakistan |
|
Tel # |
92
(42) 35858135, 35858477 |
|
Fax # |
92
(42) 35858477 |
|
a. |
Nature of
Business |
The Company is engaged
in manufacturing & sale of sugar, yarn and particle board, Molasses and
cotton waste are the only significant by-products contribution to Company’s
revenues |
|
b. |
Incorporated |
2002 |
|
c. |
Registration No. |
0043751 |
14 Km Pansera Gojra Road in District Toba
Tek Singh, Punjab, Pakistan
Kaleem & Co.
(Chartered
Accountants)
|
The Company was
incorporated in Pakistan as a non-listed public limited company in 2002 |
|
Names |
Designation |
|
Mr. Yousaf Abbas Sharif Mr. Abdul Aziz Abbas Sharif Mrs. Amna Asif Mirza |
Chief Executive Director Director |
|
Names |
No. of Shares |
|
Mr. Hassan
Nawaz Sharif Mrs. Marriyam
Nawaz Mrs. Asma Ali
Dar Mr. Yousaf
Abbas Sharif Mr. Abdul Aziz
Abbas Sharif Mrs. Sara Adnan Miss Saima
Abbas Mr. Muhammad
Nawaz Sharif Mrs. Amna Asif
Mirza Mr. Hussain
Nawaz Sharif Sharif Trust,
Pakistan Mrs. Nabiha
Yousaf Sharif Mrs. Umamah
Yousaf Sharif Mr. Hussnain Yousaf
Sharif Mr. Abdullah
Yousaf Sharif Mrs. Marriyam
Aziz Sharif Mrs. Kalsoom
Nawaz Mrs. Sabiha
Abbas |
3,294 401,455 65,485 4,005,897 4,460,477 810,659 810,659 1,201,538 5,194 49,599 167,417 1,000,000 150,000 150,000 150,000 1,000,000 506,147 506,019 |
A. Subsidiary
None
B. Associated
Companies
Hudabiya Paper Mills Limited, Pakistan.
(2) Hudabiya Engineering Co. (Pvt) Limited, Pakistan.
(3) Shamim Sugar Mills (Pvt) Limited, Pakistan.
The Company is
engaged in manufacturing & sale of sugar, yarn and particle board, Molasses
and cotton waste are the only significant by-products contribution to Company’s
revenues
1,100
(1) Installed capacity of 6,500 to 8,500 tons of cane
crushing per day.
Installed capacity of 38,000 Lbs per day of
20/1 100 % cotton yarn. It started commercial production in 1992 with 17,280
spindles which has now increased to 20160 spindles.
(3) Installed capacity of 60 to 80 Tons of
Particle Board. The division’s main activity is the production and marketing of
Bagasse based Particle Board.
|
Years |
In
Pak Rupees |
|
2013 2014 |
4,043,852,976/- 4,738,021,747/- |
Subject import globally from Companies
belongs to China, Korea, Japan,
Singapore, Malaysia & European Countries
|
(1) Silk Bank Limited, Pakistan. (2) Habib Bank Limited, Pakistan. (3) Bank Alfalah Limited, Pakistan. (4) Silk Bank Limited, Pakistan. (5) Faysal Bank Limited, Pakistan. (6) Habib Metropolitan Bank Limited, Pakistan. (7) United Bank Limited, Pakistan. (8) NIB Bank Limited, Pakistan. (9) MCB Bank Limited, Pakistan. (Total mortgage obtained PKR: 2,799,333,250/-) |
FY15 proved to be another difficult year for the textile industry. Slow
down in Chinese economy demand of yarn Not only the country’s exports have
suffered but the price of yarn in the local market also remained under
pressure. The prevalent situation has eroded the overall profitability of the
spinning sector.
Pakistan Sugar
Mills Association.(PSMA)
Lahore Chamber of
Commerce & Industry.(LCCI)
Federation
Pakistan Chamber of Commerce & Industry.(FPCCI)
|
Currency |
Unit |
Pakistani
Rupee |
|
US Dollar |
1 |
Rs. 105.90 |
|
UK Pound |
1 |
Rs. 161.50 |
|
Euro |
1 |
Rs. 113.50 |
Subject Company was established in 2002 and is engaged in manufacturing & sale of sugar, yarn and particle
board, Molasses and cotton waste are the only significant by-products
contribution to Company’s revenues. Overall reputation is satisfactory. 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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.80 |
|
|
1 |
Rs.100.49 |
|
Euro |
1 |
Rs.72.52 |
|
PKR |
1 |
Rs.0.64 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KIN |
|
|
|
|
Report Prepared
by : |
SDA |
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.