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MIRA INFORM REPORT

 

 

Report No. :

332220

Report Date :

20.07.2015

 

IDENTIFICATION DETAILS

 

Name :

ASKARI CEMENT LIMITED

 

 

Registered Office :

5th Floor, A.W.T. Plaza, The Mall, Rawalpindi

 

 

Country :

Pakistan

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

1980

 

 

Com. Reg. No.:

0007575

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

Subject is engaged in Manufacture & Sale of Ordinary Portland Cement.

 

 

No. of Employees :

650

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Unknown

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 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

 

ASKARI CEMENT LIMITED

 

 

Full Address       

 

Registered Address

 

5th Floor, A.W.T. Plaza, The Mall, Rawalpindi, Pakistan

                       

Tel #

92 (51) 9272434, 9273435

Fax #

92 (51) 9272433

 

 

Short Description Of Business

 

Nature of Business       

Principally engaged in manufacture & sale of ordinary portland cement

Incorporated

1980

Registration No.

0007575

 

 

Plant Location

           

Is located at Wah Cantt & Nizampur

 

 

Auditors

 

KPMG Taseer Hadi & Co.

(Chartered Accountants)

 

 

Legal Status

 

Public Limited Company (Not listed at any stock exchange of Pakistan)

 

6.

Authorized Capital    

Rs. 1,700,000,000/- divided into 170,000,000 shares of Rs. 10/- each

 

Issued & Paid up Capital

Rs. 1,600,987,230/- divided into 160,098,723 shares of Rs. 10/- each

 

Details of Management

 

Names

 

Designation

Brig. Rasheed Ahmed Malik (Retd)

 

Lt. Gen.Tahir Mahmood (Retd)

 

Maj Gen Asif Aktar (Retd)

 

Maj Gen Mukhtar Ahmed (Retd)

 

Brig Tariq Sher (Retd)

 

Mr. Malik Riffat Mehmood

 

Brig Masuood Ahmed (Retd)

Chief Executive

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

 

Shareholders

 

Names

 

No. of Shares

Brig. Rasheed Ahmed Malik (Retd)

 

Lt. Gen.Tahir Mahmood (Retd)

 

Maj Gen Asif Aktar (Retd)

 

Maj Gen Mukhtar Ahmed (Retd)

 

Brig Tariq Sher (Retd)

 

Mr. Malik Riffat Mehmood

 

Brig Masuood Ahmed (Retd)

 

Army Welfare Trust, Rawalpindi, Pakistan

10

 

10

 

10

 

10

 

10

 

10

 

10

 

 

160,098,653

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

 

None

           

B.         Associated Companies

           

(1) Fauji Fertilizer Company Limited, Pakistan.

(2) Mari Petroleum Company Limited, Pakistan.

(3) Fauji Fertilizer Bin Qasim Limited, Pakistan.

(4) Fauji Oil Terminal Company, Pakistan.

(5) Fauji Kabirwala Power Company Limited, Pakistan

(6) Foundation Power Company (Daharki) Limited, Pakistan.

(7) Dharki Power Holdings Limited, Pakistan.

(8) FFC Energy Limited, Pakistan.

(9) Foundation Wind Energy I, Pakistan.

(10) Foundation Wind Energy II, Pakistan.

(11) Fauji Akbar Portia Marine Terminals, Pakistan.

(12) Askari Bank Limited, Pakistan.

(13) Fauji Cement Company Limited, Pakistan.

 

 

Business Activities

 

Principally engaged in manufacturing, selling and marketing of ordinary Portland cement

 

 

Number of Employees

 

650

 

 

Plant Capacity & Production

                                                                       

With its two plants at Wah and Nizampur have a total production capacity of 8,925 tons per day

 

 

Annual Sales Volume

 

Years

 

In Pak Rupees

2011

2012

3,742,839,716/-

4,707,636,754/-

 

 

Customers

 

Various local and international

 

Bankers

           

(1) MCB Bank Limited, Pakistan.

(2) Habib Bank Limited, Pakistan.

(3) Standard Chartered Bank, Pakistan.

(4) Meezan Bank Limited, Pakistan.

(5) United Bank Limited, Pakistan.

(6) Bank Alfalah Limited, Pakistan.

(7) Silk Bank Limited, Pakistan.

(8) Soneri Bank Limited, Pakistan.

 

 

Exporting Countries

 

Mainly to Central Asian Countries & Afghanistan

 

 

Importing Countries

           

Subject mainly import from Companies belongs to European Countries, Korea, Taiwan, Singapore, U.K. & China

 

 

Contribution to National Exchequer

 

Company contributed a total amount of Rs. 1,257 million (2011: Rs. 1,334 million) to the Government Treasury in shape of taxes, levies, excise duty and sales tax. In addition to that Company earned precious foreign exchange of approximately US $ 11.50 million during the year under review from export sales.

 

 

Future Outlook

 

Coal prices have remained fairly stable and no major increase in prices is anticipated in the foreseeable future. As fuel represents one of the largest cost of production, stable coal prices, bode well for the Company.

 

 

Memberships

 

Federation Pakistan Chamber of Commerce & Industry.

Rawalpindi Chamber of Commerce & Industry.

All Pakistan Cement Manufacturers Association.

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

          Rs. 103.00

UK Pound

1

          Rs. 159.00

Euro

1

          Rs. 111.25

 

 

Comments

 

Subject Company was established in 1980 and is engaged in manufacture & sale of ordinary Portland cement. Directors of the Company are reported as qualified, experienced and resourceful businessmen. 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.63.49

UK Pound

1

Rs.99.43

Euro

1

Rs.69.14

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

TPT

 

               

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%)

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