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Report No. : |
356728 |
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Report Date : |
26.12.2015 |
IDENTIFICATION DETAILS
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Name : |
MAPLE LEAF CEMENT FACTORY LIMITED |
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|
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Registered Office : |
42-Lawrence Road, Lahore |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2014 |
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Date of Incorporation : |
1960 |
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Com. Reg. No.: |
0001107 |
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Legal Form : |
Public Limited Company |
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|
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Line of Business : |
Subject is
engaged in Manufacturing, Selling and Marketing of Cement. |
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No. of Employees : |
992 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
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 |
|
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 |
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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-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 |
MAPLE LEAF CEMENT FACTORY LIMITED
|
Registered
Address |
|
42-Lawrence Road, Lahore, Pakistan |
|
Tel # |
92 (42) 36278904, 36278905 |
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Fax # |
92 (42) 36368721 |
|
a. |
Nature of Business |
Principally
engaged in manufacturing, selling and marketing of cement |
|
b. |
Year Established |
1960 |
|
c. |
Registration No. |
0001107 |
Iskanderabad District, Mianwali, Punjab, Pakistan
|
KPMG Taseer Hadi & Co. (Chartered Accountants) |
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Public Limited Company (Listed at stock exchanges of Pakistan) |
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Names |
Designation |
|
Mr. Tariq Sayeed Saigol Mr. Sayeed Tariq Saigol Mr. Taufique Sayeed Saigol Mr. Waleed Tariq Saigol Mr. Danial Taufique Saigol Mr. Syed Mohsin Raza Naqvi Mr. Zamiruddin Azar Mr. Karim Hatim |
Chairman Chief Executive Officer Director Director Director Director Director Director |
|
Categories |
Shareholding (%) |
|
Directors, CEO and their spouses &
minor children Associated Companies, Undertakings &
Related Parties NIT & ICP Banks, Development Financial Institutions,
Non Banking Financial Institutions Insurance Companies Modarabas and Leasing Companies Mutual Funds General Public Public Sector Companies & Corporations Joint Stock Companies Others |
0.3693 58.0618 0.0058 4.2691 0.3152 0.0074 10.8552 21.8439 0.2332 2.5356 1.5037 |
A. Subsidiary
None
B. Associated
Companies
|
(1) Kohinoor
Textile Mills Limited, Pakistan. (2) Kohinoor Raiwind
Mills Limited, Pakistan. |
Principally engaged
in manufacturing, selling and marketing of cement
992
2014
2013
(In Metric Tons)
Current Installed Capacity 3,360,000 3,360,000
Actual Production
2,694,848 2,558,888
|
Year |
In Pak Rupees |
|
2014 |
18,968,547,000/- |
Various local & international
|
(1) Allied Bank
Limited, Pakistan. (2) Askari Bank
Limited, Pakistan. (3) Bank
Alfalah Limited, Pakistan. (4) Bank
Al-Habib Limited, Pakistan. (5) BankIslami
Pakistan Limited, Pakistan. (6) Burj Bank
Limited, Pakistan. (7) Bank of
Khyber Limited, Pakistan. (8) Dubai Islamic
Bank Limited, Pakistan. (9) Faysal Bank
Limited, Pakistan. (10) First
Dawood Islamic Bank Limited, Pakistan. (11) First
Women Bank Limited, Pakistan. (12) Habib Bank
Limited, Pakistan. (13) Habib
Metropolitan Bank Limited, Pakistan. (14) HSBC Bank
Middle East Limited, Pakistan. (15) MCB Bank
Limited, Pakistan. (16) Meezan
Bank Limited, Pakistan. (17) National
Bank of Pakistan. (18) NIB Bank
Limited, Pakistan. (19) Soneri
Bank Limited, Pakistan. (20) Standard
Chartered Bank (Pakistan) Limited (21) Summit Bank
Limited, Pakistan. (22) The Bank
of Punjab, Pakistan. (23) Trust
Investment Bank Limited, Pakistan. (24) United
Bank Limited, Pakistan. |
|
Mainly to Afghanistan, India & Middle East Countries |
|
Subject mainly import from Companies
belongs to European Countries, Japan,
Korea, Taiwan, Singapore & China |
Company
registered record net sales of Rs. 18,969 million against Rs. 17,357 million in
the corresponding period, showing growth of 9.3%. Sales revenue increased owing
to improved prices in the domestic market on account of partial absorption of
cost increases on the input side. Quantitative growth in local demand was
subdued amounting to 2.07% as compared to 3.8% in the previous year. This was
due to continuing increase in construction activity in the private and public
sectors due to higher utilization of funds released for Public Sector
Development Programme. However, exports remained subdued due to lackluster
demand, dragged down by declining Afghanistan exports. Gas and Power tariff
hike along with massive load shedding of natural gas and electricity have
unfavorably impacted profitability during the period. However, the Company is
efficiently utilizing its Waste Heat Recovery Plant along with use of
alternative fuels to counter this. The Company also benefited from lower prices
of imported coal. Keeping in view the above factors, gross profit rose to Rs.
6,523 million in the current period, compared to Rs. 6,045 million in the
corresponding period which is encouraging. Operating profits rose to Rs. 5,055
million during the period, compared to Rs. 4,867 million in the corresponding
period last year. This robust growth in operating earnings emanated mainly from
better cement prices and efficient running of Waste Heat Recovery Plant along
with other cost reduction measures
adopted by the Company. Administration costs and other operating expenses were
effectively controlled during the current period. There is a notable decline of
14% in financial charges due to deleveraging, reduction in interest rates, and
improved cash management. The Company is continuing to repay Sukuk / Syndicate
and other debt obligations and is dedicated to keep current on all debt
commitments backed by better cash flows and efficient cash management. During
the period, the Company has paid off Rs. 3,043 million of long-term debt and
profit before tax witnessed a healthy turnaround.
During the year,
the Company has contributed an amount of Rs. 4,616 million towards national
exchequer in shape of taxes, duties, cess, levies etc. The Company has also
contributed through earnings of valuable foreign exchange amounting to US $ 31
million.
Federal and Provincial
governments have jointly allocated over Rs. 1 trillion for Public Sector
Development Programme (PSDP) along with increasing urban housing needs of 3
million units, thus private construction projects will give a boost to cement
demand in the current year. Increased demand of cement for public sector
projects like small dams, roads and bridges together with increased
construction activities in the private sector due to expected better
performance will give a boost to cement consumption. Demand is expected to
further rise due to recent damage to infrastructure due to heavy rains and
floods. Cement prices could rise due to higher demand and may result in
improved profitability in the current year. Expected anti-dumping duties by
South Africa may marginally affect exports by the Company but increase in local
demand could nullify the ill effects. Exports of cement from Pakistan to
Afghanistan have fallen due to competition from Iranian imports. There are
concerns about cement consumption in that country, following withdrawal of
coalition forces and possible civil unrest, which may hamper continuation of
government development programmes. Exports to India have also declined due to
low demand. However, the Company has adopted efficient marketing techniques to
discover new export markets to achieve better capacity utilization. Recent PKR
appreciation will lower the cost of procuring coal; however, lower realized
export retention will largely nullify the benefits of reduced cost of coal
procurement. Cost reduction efforts continue to be the main focus in all
operational areas and the Company has adopted various strategies to reduce cost
including use of alternative fuels and optimized operations of the plant.
Moreover, we expect the coal prices to remain subdued in near future. We expect
to continue generating strong operating cash flows, which is expected to aid
the Company to de-leverage at an accelerated pace.
Federation Pakistan Chamber of Commerce &
Industry.
Rawalpindi Chamber of Commerce & Industry.
All Pakistan Cement Manufacturers
Association.
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 103.00 |
|
UK Pound |
1 |
Rs. 159.00 |
|
Euro |
1 |
Rs. 111.25 |
Subject Company was established in 1960 and
is engaged in manufacturing, selling
and marketing of cement. Overall reputation is normal. Trade relations are
reported as fair. 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.66.20 |
|
|
1 |
Rs.98.30 |
|
Euro |
1 |
Rs.72.41 |
|
PKR |
1 |
Rs.0.63 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
|
|
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
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 |
-- |
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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%)
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risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.