MIRA INFORM REPORT

 

 

Report No. :

342582

Report Date :

01.10.2015

 

IDENTIFICATION DETAILS

 

Name :

BIAFO INDUSTRIES LIMITED

 

 

Registered Office :

1st Floor, Biafo House, Plot No. 23, Street No. 38-40, I & T Centre, G-10/4, Islamabad

 

 

Country :

Pakistan

 

 

Financials (as on) :

30.06.2015

 

 

Year of Establishment :

1988

 

 

Com. Reg. No.:

0018520

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

Subject is principally engaged in the manufacturing of commercial explosives and blasting accessories including detonators and other materials.

 

 

No. of Employees :

170      

 

 

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

 

Status :

Satisfactory

 

 

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

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name

 

BIAFO INDUSTRIES LIMITED

 

 

Full Address       

 

Registered Address

1st Floor, Biafo House, Plot No. 23, Street No. 38-40, I & T Centre, G-10/4, Islamabad, Pakistan

                       

Tel #

92 (51) 2353450, 2353451, 2353452, 2353453, 2353455, 2353456, 2353457 

Fax #

92 (51) 2353458

Email

biafo@hotmail.com

 

 

Short Description Of Business

 

a.

Nature of Business      

Principally engaged in the manufacturing of commercial explosives and blasting accessories including detonators and other materials

b.

Year Established

1988

c.

Registration No.

0018520

 

 

Factory Location

           

Address

Plot No. 70, Phase III, Industrial Estate, Hattar District, Haripur, Khyber Pakhtunkhwa, Pakistan

Tel No.

92 (995) 617830

Fax No.

92 (995) 617497

 

 

Auditors

           

KPMG Taseer Hadi & Co.

(Chartered Accountants)

 

 

Legal Status  

           

Biafo Industries Limited (“the Company”) was incorporated in Pakistan on 07 September 1988 as a public limited company under the Companies Ordinance, 1984 and its shares are quoted on the Karachi & Islamabad Stock Exchanges of Pakistan

 

 

Details of Management

 

Names

Designation

Dr. M. Humayun Khan

 

Mr. Khawaja Amanullah Askari

 

Mr. M. Afzal Khan

 

Maj Gen (Retd) S.Z. M. Askaree

 

Ms. Shirin Safdar

 

Mr. Abdul Maajid Qureshi

 

Mr. M. Salim Khan

 

Mr. M. Zafar Khan

 

Mr. Adnan Aurangzeb

 

Ms. Zishan Afzal Khan

 

Mr. Khwaja Ahmad Hosain

 

Mr. Muhammad Yaqoob

Chairman

 

Managing Director & Chief Executive

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

Director

 

 

Shareholders

 

Categories

Shareholding (%)

Individuals

 

Joint Stock Companies

 

Financial Institutions

 

Insurance Companies

 

Others

 

Mutual Funds

57

 

36

 

0

 

6

 

0

 

2

 

 

Associated Companies

 

None

Business Activities

 

Principally engaged in the manufacturing of commercial explosives and blasting accessories including detonators and other materials

 

 

Number of Employees

 

170      

 

 

Capacity & Production

           

                                                                   2014                                       2013          

Products                                                              Rated

                                                            Units    Production                      Actual Production

                                                            __________________                 ___________________________

                                                                          Capacity                                

 

 

Tovex water gell and powder explosives  Kgs     6,000,000                      3,590,860                3,645,180

Detonator - plain                                    Nos.      8,000,000                    4,079,400                3,582,270

Detonator - electric                                 Nos.      1,000,000                    939,228                   553,998

Safety fuse                                             Meter      500,000                    ---                            72,000

Detonating cord                                     Meter    2,500,000                     1,600,550                1,418,700

The shortfall in production of certain products is due to the gap between market demand and the available capacity.

 

 

Annual Sales Volume

 

Years

In Pak Rupees

2014

2015

1,264,579,133/-

1,401,982,100/-

 

 

Customers 

           

Mainly Oil Exploration & Gas Production Companies, Refineries

 

 

Bankers

           

(1) Allied Bank Limited, Pakistan.

(2) Bank Alfalah Limited, Pakistan.

(3) National Bank of Pakistan.

(4) Standard Chartered Bank, Pakistan.

(5) Habib Metropolitan Bank Limited, Pakistan.

(6) Dubai Islamic Bank Pakistan Limited, Pakistan.

(7) Bank of Khyber, Pakistan.

(8) Faysal Bank Limited, Pakistan.

(9) Askari Bank Limited, Pakistan.

(10) MCB Bank Limited, Pakistan.

 

 

Sales & Financial Results

 

Net local sales value declined by 0.20% to Rs. 1,106.14m while value of export sales declined by 10.12% to Rs. 158.44m resulting in overall net sale value declining by 1.56% to Rs. 1,264.58m in the period under review.

 

 

Future Outlook

 

The Government has declared its intention to improve the economy and finances of the country and its focus on and seriousness to address the energy deficiency specially hydroelectric projects like Dasu Dam, Tarbela 5th extension, Bhasha Dam, Munda Dam while hydel projects in private sector like Suki Kinari, Gulpur and Patrind should start commencing in 2015-16. The government is also keen for the construction of Lahore-Karachi Motorway and Burhan-Havelian expressway. These projects would create business prospects for your company in the future

 

 

Memberships

 

Rawalpindi Chamber of Commerce & Industry.(RCCI)

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

          Rs. 104.15

UK Pound

1

          Rs. 158.50

Euro

1

          Rs. 114.90

 

 

Comments

 

Subject Company was established in 1988 and is principally engaged in the manufacturing of commercial explosives and blasting accessories including detonators and other materials. Market reputation is satisfactory. 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.65.74

UK Pound

1

Rs.99.53

Euro

1

Rs.73.80

 

INFORMATION DETAILS

 

Analysis Done by :

TRI

 

 

Report Prepared by :

VNT

 

               

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.