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Report No. : |
330037 |
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Report Date : |
04.07.2015 |
IDENTIFICATION DETAILS
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Name : |
POWER CEMENT LIMITED (FORMERLY:AL-ABBAS CEMENT LIMITED) |
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Registered Office : |
Arif Habib Center 23, M.T .Khan Road, Karachi – 74000 |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2014 |
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Date of Incorporation : |
1981 |
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Com. Reg. No.: |
0009067 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
The Company’s principal activity is manufacturing, selling and marketing of cement |
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No. of Employees : |
275 |
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 : |
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Pakistan |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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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-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 |
POWER CEMENT
LIMITED (FORMERLY:AL-ABBAS CEMENT LIMITED)
|
Registered
Address |
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Arif Habib Center 23, M.T .Khan Road, Karachi - 74000, Pakistan |
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Tel # |
92 (21) 32468231, 32, 32468350, 51 |
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Fax # |
92 (21) 32463209 |
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a. |
Nature of Business |
The Company’s principal
activity is manufacturing, selling and marketing of cement |
|
b. |
Year Established |
1981 |
|
c. |
Registration # |
0009067 |
Nooriabad Industrial Area, Kalo
Kohar District, Jamshoro,
Sindh, Pakistan
In Karachi & Lahore.
KPMG Taseer Hadi & Co.
(Chartered
Accountants)
Power
Cement Limited - formerly Al-Abbas Cement Industries Limited was established as
a private limited company on 1 December 1981 and was converted into a Public
Limited Company on 9 July 1987 and is listed on Karachi and Lahore Stock
Exchanges.
|
Names |
Designation |
|
Mr. Nasim Beg Mr. Muhammad Kashif Habib Mr. Samad A.Habib Mr. Muhammad Ejaz Mr. M. Yousuf Adil Mr. Syed Salman Rashid Mr. Muhammad Yahya Khan |
Chairman Chief Executive
Officer Director Director Director Director Director |
|
Categories |
Percentage
(%) |
|
Directors, Chief Executive, their spouse and minor children Associated Companies Undertakings & Related Parties NIT / ICP Public Sector Companies & Corporations Banks, Development Finance Institutions and Non Banking Financial
Institutions Insurance Companies Foreign Modarabas & Mutual Funds General Public (Local) Others |
8.95 65.04 0.00 0.00 0.59 0.18 0.05 0.00 11.56 13.63 |
The Company’s principal activity is manufacturing, selling and marketing of cement
275
2014 2013 (Metric Tons) (Metric
Tons)
Installed Capacity 900,000 900,000
Actual production of cement 458,900 577,160
|
Years |
In Pak Rupees |
|
2013 2014 |
3,511,774,000/- 3,496,103,000/- |
Mainly exist at major cities of Pakistan
(1) Al-Baraka Islamic Bank
Limited, Pakistan.
(2) Allied Bank Limited,
Pakistan.
(3) Bank Alfalah Limited,
Pakistan.
(4) Bank Islami Pakistan Limited,
Pakistan.
(5) Habib Bank Limited, Pakistan.
(6) Meezan Bank Limited,
Pakistan.
(7) National Bank of Pakistan,
Pakistan.
(8) Standard Chartered Bank
(Pakistan) Limited, Pakistan.
(9) Summit Bank Limited,
Pakistan.
(10)
United Bank Limited, Pakistan.
The Pakistan
Cement Industry witnessed a modest growth of 2.54% and south zone, where your
Company is situated, noticed a decrease of 5.3% in domestic demand at the close
of the financial year ended 30th June 2014. The domestic demand in south zone
stood 4.5 million tons as compared to 4.7 million tons in the last year.
Overall south zone registered a slight increase 0.6%, which has contributed by
exports market.
Domestic demand
for cement is expected to increase in the coming year in light of sizeable
allocation of funds towards developmental projects by the Federal and
Provincial Governments. Also commencement of construction activities of Khanki
Barage, Basha Dam, Islamabad / Rawalpindi Mass Transit and especially the
projects in south zone like Karachi Mass Transit and various sizeable housing
projects in and in the vicinity of Karachi, power projects in Sindh,
construction activities at ports of Karachi and the reconstruction activity
emanating from the recent floods in the country are also expected to positively
affect the industry wide demand. Company’s major cost factors such as coal and
electricity prices are expected to remain range bound in the coming year,
taking into account Government’s plans to generate energy at cheaper rates and
also that the electricity tariff has already substantially increased during the
current year. Planned maintenance and process improvements made during the
current year are expected to reap benefits in the coming year in terms of
improved capacity utilization and fuel and power consumption efficiencies.
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 102.45 |
|
UK Pound |
1 |
Rs. 161.10 |
|
Euro |
1 |
Rs. 115.10 |
Subject Company was established in 1981 and is engaged in manufacture and sale of cement. Current management is reported as experienced, respectable and having satisfactory means of their own. 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. 63.39 |
|
|
1 |
Rs. 98.94 |
|
Euro |
1 |
Rs. 70.33 |
INFORMATION DETAILS
|
Analysis Done by
: |
RSM |
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|
|
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Report Prepared
by : |
DPT |
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 |
|
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 |
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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 |
|
<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.