MIRA INFORM REPORT
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Report No. : |
332258 |
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Report Date : |
21.07.2015 |
IDENTIFICATION DETAILS
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Name : |
BESTWAY CEMENT LIMITED |
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Registered Office : |
Bestway Building, 19-A, College Road, F-7 Markaz, Islamabad |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2014 |
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Year of Establishment : |
1994 |
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Com. Reg. No.: |
0031894 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Manufacturing,
Selling and Marketing of Cement. |
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No. of Employees : |
1,705 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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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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Maximum Credit Limit : |
USD 289692 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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 |
Company
Name
|
Business Name |
BESTWAY CEMENT
LIMITED |
Full
Address
|
Registered
Address |
|
Bestway
Building, 19-A, College Road, F-7 Markaz, Islamabad, Pakistan |
|
Tel # |
92 (51) 2654856
- 63 (7 Lines) |
|
Fax # |
92 (51) 2654865 |
|
Website |
Short
Description Of Business
|
a. |
Nature of Business |
Principally engaged in manufacturing,
selling and marketing of cement |
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b. |
Year Established |
1994 |
|
c. |
Registration No. |
0031894 |
Plant
Location
|
Address |
Suraj Gali Road, Village Shadi, Hattar, Distt, Haripur, N.W.F.P.
Pakistan |
|
Tel # |
92 (995) 639261
- 63 (3 Lines) |
|
Fax # |
92 (995) 639265 |
|
Address |
12 K.M., Taxila-Haripur Road, Farooqia, Tehsil & District Haripur,
Khyber Pakhtoonkwa, Pakistan |
|
Tel # |
92 (995) 639261
- 63 (3 Lines) |
|
Fax # |
92 (995) 639265 |
|
Address |
Village Tatral, near PSO Petrol Pump, 22 K.M., Kallar Kahar, Choa
Saiden Shah Road, Chakwal, Pakistan |
|
Tel # |
92 (543) 584560,
62 (3 Lines) |
|
Fax # |
92 (543) 584274 |
Marketing
Office
|
Address |
House No. 293-A, Peshawar Road, Rawalpindi, Pakistan |
|
Tel # |
92 (51) 5513110,
5125128, 5125129 |
|
Fax # |
92 (51) 5513109 |
Auditors
|
KPMG Taseer Hadi & Co. (Chartered Accountants) |
Legal
Status
|
Public Limited Company (Listed at stock exchanges of Pakistan) |
Details
of Directors
|
Names |
Designation |
|
Sir. Mohammed Anwar Pervez Mr. Zameer Mohammed Choudrey Mr. Arshad Mehmood Chaudhary Mr. Muhammad Irfan A. Sheikh Mr. Syed Asif Shah Mr. Ghulam Sarwar Malik |
Chairman Chief Executive Director Director Director Director |
Shareholders
|
Categories |
Shareholding (%) |
|
Directors, CEO and their spouses and minor
children Associated Companies, Undertakings &
Related Parties Modarbas & Mutual Funds Banks, Development Financial Institutions,
Non Banking Financial Institutions Insurance Companies Others Individuals |
6.62 57.94 0.00 0.04 0.00 4.31 31.09 |
Holding
Company
|
Bestway
(Holdings) Limited of United Kingdom is the ultimate parent company of the
Company. |
Associates
A. Subsidiary
None
B. Associated Companies
|
(1) MAP Rice Mills (Pvt)
Limited, Pakistan. (2) Bestway
(Holdings) Limited, Pakistan. (3) Bestway Northern
Limited, Pakistan. (4) Bestway Cash
& Carry Limited, Pakistan. |
Business
Activities
Principally engaged
in manufacturing, selling and marketing of cement
Number
of Employees
1,705
Plant
Capacity & Production of Clinkers
2014
2013
(In Metric Tons)
Available Capacity - Hattar 1,170,000 1,170,000
-
Farooqia 1,109,700 544,850
-
Chakwal 3,420,000 3,420,000
Actual Production - Hattar 952,146 1,005,545
-
Farooqia 758,942 465,407
- Chakwal 2,157,937 2,237,942
Annual
Sales Volume
|
Year |
In Pak Rupees |
|
2014 |
28,950,528,000/- |
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) National Bank of Pakistan, Pakistan. (11) United Bank Limited, Pakistan. (12) Bank Alfalah Limited, Pakistan. (13) NIB Bank
Limited, Pakistan. (14) Meezan Bank
Limited, Pakistan. (15) Dubai
Islamic Bank Pakistan Limited. |
Exporting
Countries
|
Mainly to Afghanistan, India & South African Countries |
Importing
Countries
|
Subject mainly import from Companies
belongs to European Countries, Japan,
Korea, Taiwan, Singapore, China & Malaysia |
Operational
Performance
The Company
recorded sales of Rs. 37.2 billion compared to Rs. 29.8 billion during the
preceding year, which is an increase of 24.8%. Net turnover amounted to Rs.
29.0 billion compared to Rs. 24.1 billion for the preceding year. This increase
of 20.3% was mainly due to addition of Farooqia Plant in Company’s Capacity for
the whole of this year compared to just six months in the last year pursuant to
merger of Mustehkam Cement Limited into Bestway Cement Limited. The increase in
turnover is also attributable to increase in domestic demand and better
retention prices during the year.
Contribution
to National Exchequer
Company is amongst the largest tax payers in the
Country. During the year under review. Bestway Cement contributed to the
exchequer more than Rs. 6.5 billion on account of sales tax and excise duty and
Rs. 695 million on account of income tax. In addition, Company pays large
amounts on account of various indirect taxes to the federal, provincial and
local governments.
Future
Outlook
Bestway’s recent acquisition of Lafarge
Pakistan Cement Limited should enable the Company to have deeper and wider
market penetration, broader product offering and even better margins through
economies of scale. 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 1994 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.63.55 |
|
|
1 |
Rs.99.10 |
|
Euro |
1 |
Rs.68.83 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIT |
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 |
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.