MIRA INFORM REPORT
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Report No. : |
332265 |
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Report Date : |
20.07.2015 |
IDENTIFICATION DETAILS
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Name : |
FAUJI CEMENT COMPANY LIMITED |
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Registered Office : |
Fauji Tower, Block III, 68-Tipu Road, Chaklala, Rawalpindi |
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Country : |
Pakistan |
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Year of Establishment : |
1992 |
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Com. Reg. No.: |
0028972 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Subject is
engaged in manufacturing, selling and marketing of ordinary Portland cement |
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No. of Employee : |
1,146 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Pakistan |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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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 |
NOTE
In absence of financials, no credit limit could be recommended.
Company
Name
FAUJI CEMENT
COMPANY LIMITED
Full
Address
|
Registered
Address |
|
Fauji Tower,
Block III, 68-Tipu Road, Chaklala, Rawalpindi, Pakistan |
|
Tel # |
92 (51) 9280081,
9280082, 9280083 |
|
Fax # |
92 (51) 9280416 |
Short
Description Of Business
|
a. |
Nature of Business |
Principally engaged in manufacturing,
selling and marketing of ordinary Portland cement |
|
b. |
Incorporated |
1992 |
|
c. |
Registration No. |
0028972 |
Plant
Location
|
Address |
Near Village Jhang Bahtar, Tehsil Fateh Jang District, Attock, Pakistan |
|
Tel # |
92 (57) 2538047,
2538048, 2538138, 2538148, 2538149 |
|
Fax # |
92 (57) 32538025 |
Marketing
Office
|
Address |
1st Floor, Aslam Plaza, 60-Adamjee Road, Saddar, Rawalpindi,
Pakistan |
|
Tel # |
92 (51) 5523836,
5528042, 5528960 |
|
Fax # |
92 (51) 5528965,
5528966 |
Auditors
|
KPMG Taseer Hadi & Co. (Chartered Accountants) |
Legal
Status
|
Public Limited Company (Listed at stock exchanges of Pakistan) |
Details
of Management
|
Names |
Designation |
|
Lt Gen (R) Muhammad Mustafa Khan Lt Gen (R) Muhammad Sabir Mr. Qaiser Javed Dr. Nadeem Inayat Brig (R) Agha Ali Hassan SI (M) Brig (R) Parvez Sarwar Khan SI (M) Brig (R) Dr. Gulfam Alam SI (M) Brig (R) Muhammad Saeed Khan Mr. Max Kruse Brig (R) Asmat Ullah Khan Niazi |
Chairman Chief Executive Officer / Managing Director Director Director Director Director Director Director Director Director |
Shareholders
|
Categories |
Shareholding (%) |
|
Directors, CEO and their spouses and minor
children Associated Companies, Undertakings &
Related Parties NIT & ICP Banks, Development Financial Institutions, Non
Banking Financial Institutions Insurance Companies Modarabas & Mutual Funds General Public Others |
0.0000 48.9124 0.1118 5.5242 1.2544 1.6791 31.0273 11.4629 |
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) Askari
Cement Limited, Pakistan. |
Business
Activities
Principally engaged in manufacturing, selling and marketing
of ordinary Portland cement
Number
of Employees
1,146
Plant
Capacity & Production of Clinkers
2014 2013
(In
Metric Tons)
Current Installed Capacity 3,433,500 3,433,500
Actual Production
2,490,851 2,497,529
Annual
Sales Volume
|
Year |
In Pak Rupees |
|
2014 |
17,532,277,000/- |
Customers
Various local and international
Bankers
|
(1) Habib Bank Limited, Pakistan. (2) MCB Bank Limited, Pakistan. (3) Allied Bank Limited, Pakistan. (4) Standard Chartered Bank, Pakistan. (5) The Bank of Punjab, Pakistan. (6) Faysal Bank Limited, Pakistan. (7) Askari Bank Limited, Pakistan. (8) Bank Al-Habib Limited, Pakistan. (9) Soneri Bank Limited, Pakistan. (10) United Bank Limited, Pakistan. (11) Bank Alfalah Limited, Pakistan. |
Exporting
Countries
|
Mainly to Afghanistan & India |
Importing
Countries
|
Subject mainly import from Companies
belongs to European Countries, Japan,
Korea, Taiwan, Singapore, U.K. & China |
Contribution
to National Exchequer
The Company contributed Rs. 4,602 billion to the
national exchequer in the form of taxes and duties during the year under
review. Concurrently Fauji Cement earned US $ 29 million through export of
cement.
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.
FCCL
Profile
FCCL, located at Jhang Bhatar, District Attock, is a leading producer of
Pakistan Cement Industry and a major concern of Fauji Foundation. Incorporated
as a public limited company, it started its operations in 1997 on commissioning
of 3150 TPD F.L. Smidth Plant ofDENMARK. Subsequently in 2005, the Plant
capacity was enhanced to 3,885 TPD. To cater for the expanding demand of Fauji
Cement a new line of 7560 TPD has been erected and its production started on 30
May 2011. The new Plant is equipped with latest / state of art equipment and is
also the first GERMAN plant of Pakistan Cement Industry. The Portland Cement
produced at this plant is the finest in the Country. Major Equipment Suppliers
were:
A. POLYSIUS AG GERMANY.
B. LOESCHE GMBH GERMANY (VERTICAL CEMENT
MILLS).
C. HAVOR & BOECKER GERMANY (PACKING
PLANT).
D. ABB SWITZERLAND (ELECTRICAL EQUIPMENT AND
PLC).
In pursuance of its commitment to
ENVIRONMENT, the Company installed in 2009 first ever Refuse Derived Fuel (RDF)
Processing Plant at a cost of Rs. 320 Million. It has not only provided
economical fuel but demonstrated a better way of disposing Municipal Waste. In
addition, this milestone achievement has shown the entire industrial sector the
future path to follow. FCCL management has decided to install 10MW Waste Heat Recovery
Plant with a concept to convert waste heat into energy to promote sustainable
environment and reduce load on national grid. The contract for engineering and
equipment was awarded to M/S SINOMA Engineering, where as, construction,
erection and commissioning contract was given to M/S EITEMAAD Engineering. WHR
Project is well on its way and is expected to be completed by April 2015 Insha
Allah. The plant will generate approx 10MW electricity. FCCL is an ISO
9001:2008 and ISO 14001: 2004 Certified Company with a total capacity of 11,445
TPD and a strong and longstanding tradition of service, reliability and
quality.
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 1992 and is engaged
in manufacturing, selling and marketing of ordinary Portland 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.63.49 |
|
|
1 |
Rs.99.43 |
|
Euro |
1 |
Rs.69.14 |
INFORMATION DETAILS
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Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
ASH |
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 |
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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 |
|
<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.